The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) REPORT NO.: RES55712 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CLIMATE RESILIENT AGRICULTURE AND PRODUCTIVITY ENHANCEMENT PROJECT APPROVED ON APRIL 30, 2018 TO REPUBLIC OF CHAD AGRICULTURE AND FOOD GLOBAL PRACTICE WESTERN AND CENTRAL AFRICA Regional Vice President: Ousmane Diagana Country Director: Clara Ana Coutinho De Sousa Regional Director: Simeon Kacou Ehui Practice Manager: Chakib Jenane Task Team Leader(s): Sossena Tassew, Elisee Ouedraogo The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) ABBREVIATIONS AND ACRONYMS ADM Accountability and Decision Making AR&D Agricultural Research and Development CCP Cellule de Coordination de Projets CD Country Director CERC Contingent Emergency Response Component CORAF/WECARD West and Central African Council for Agricultural Research and Development COVID-19 Coronavirus Disease 2019 CRI Core Results Indicator CSA Climate-Smart Agriculture EA Environmental Assessment FAO Food and Agriculture Organization of the United Nations FCFA Franc Communauté Financière Africaine (West African CFA Franc) FSRP West Africa Food System Resilience Project GoC Government of Chad Ha Hectare IBRD International Bank for Reconstruction and Development IDA International Development Association IFR Intermediate Financial Report IOM International Organization for Migration IP Implementation Progress IPF Investment Project Financing ISM Implementation Support Mission ITRAD Institut Tchadien de Recherche Agricole pour le Développement (Chadian Institute for Agriculture Research and Development) M&E Monitoring and Evaluation MTR Mid-Term Review PDO Project Development Objective PROPAD Climate Resilient Agriculture and Productivity Enhancement Project UCTF Unité de Coordination Technique et Fiduciaire (Technical and Fiduciary Coordination Unit of PROPAD project) WBG World Bank Group WFP World Food Program The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) BASIC DATA Product Information Project ID Financing Instrument P162956 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 30-Apr-2018 31-Dec-2023 Organizations Borrower Responsible Agency Republic of Chad Project Development Objective (PDO) Original PDO The proposed Project Development Objective (PDO) is to “to promote the adoption of improved technologies leading to increased productivity and to enhance the climate resilience of agricultural production systems in the areas targeted by the Project”. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D8060 06-Aug-2021 23-Aug-2021 29-Oct-2021 31-Dec-2023 15.00 2.39 11.61 IDA-D3020 30-Apr-2018 19-Jun-2018 30-Nov-2018 31-Dec-2023 41.00 34.60 4.58 The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. PROJECT STATUS 1. The Climate Resilient Agriculture and Productivity Enhancement Project (PROPAD) was approved on April 30, 2018 as a US$41.0 million IDA Grant (IDA D302-TD) and became effective on November 30, 2018. The Project Development Objective (PDO) is “to promote the adoption of improved technologies leading to increased productivity and to enhance the climate resilience of agricultural production systems in the areas targeted by the project”. On August 6, 2021, a further IDA Grant of US$15.0 million was approved as additional financing for the project to replenish resources that had earlier been diverted to respond to a food security emergency occasioned by the Coronavirus disease (COVID-19) crisis upon activation of the project’s Contingent Emergency Response Component (CERC) in May 2020. The project closing date is December 31, 2023. 2. The project consists of four components: (i) Institutional Support for Sustainable Agriculture Development and Climate Resilience - which seeks to strengthen the agricultural research and development (AR&D) system, the national support services for sustainable agricultural development and climate resilience, and the framework for sectoral strategies and reform preparation and monitoring; (ii) Supporting Adoption of Demand-driven Technologies and Climate-Smart Agriculture (CSA) - which aims at improving the efficiency of the agricultural support services in the project’s targeted areas, accelerating the adoption of improved technologies and innovations, and supporting the implementation of CSA-plans; (iii) Contingent Emergency Response Component (CERC) - to provide rapid response to Eligible Crisis or Emergency, as needed; and (iv) Project Management, Coordination, Monitoring and Evaluation (M&E) and Knowledge Management which covers project management and coordination costs. 3. Progress towards achievement of the PDO and Overall Implementation progress, as well as for all the components (except the CERC, which is rated Satisfactory) are rated Moderately Satisfactory (MS). The less than satisfactory rating for implementation progress is more of a reflection of the implementation lags directly related to extended delays in the recruitment of project technical staff, the protracted national procurement processes that caused delays in acquisition of key project inputs, the generally difficult operating context (including suspension of disbursements in 2012 when of OP 7.30 was triggered following the assassination of the President), and the COVID-19 mediated restrictions on implementation. Following the mid-term review (MTR) of the project, a detailed action plan was developed and agreed with the Bank to expedite implementation. The Project Coordination unit (Unité de Coordination Technique et Fiduciaire, UCTF) has been implementing this action plan, and the Bank’s monitoring points to improvements in the pace of implementation. Overall safeguards rating is MS. 4. Key project objectives continue to be achievable. To-date, the number of "Farmers reached with agriculture assets or services" stands at 203,526 (of which 22% are women), which is 56% of the end- of project target of 360,000 beneficiaries. Surface area under improved technology disseminated by the Project stands at 4,378 ha compared to an end of project target of 11,000 ha (a 40% achievement of the target). With respect to percentage increase The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) in average agriculture yield of direct beneficiaries compared to average yields in the Project area, preliminary findings - to be confirmed by surveys, indicate that sorghum farmers supported by the project attained yields that were 44% higher than the average in the project area; those supported for sesame registered yields that were 27% higher than those observed in the project area; while rice farmers supported by the project produced yields that were 26% higher than the average yields in the project area. These figures are all above the end of project target of 25%. Finally, the beneficiary satisfaction survey conducted in April 2022 showed that 77% of the beneficiaries (against an end target of 80%) expressed satisfaction with project activities. Through the CERC, the project supported the distribution of food baskets (cereals, pulses, and vegetable oil) to more than 200,000 beneficiaries and also supported 20,000 vulnerable farmers with improved seeds (more than 2,000 tons of cereals and oilseeds and 16 tons of seeds of garden vegetables and fruits) and small agricultural equipment to preserve their productive capacity. 5. Out of a total allocation of US$56.0 million, US$36.08 million has been disbursed by March 29, 2023. The Project’s Annual audits are submitted on time and without major qualification. Similarly, the Project’s accounting is up to date and the Interim Financial Reports (IFRs) are submitted on time and are of acceptable quality. B. RATIONALE FOR RESTRUCTURING 6. Following the Mid-term Review of the Project (conducted in March/ April 2022), a number of actions were agreed upon, including: (i) extending the project closing date by one year to make up for the delays incurred during project implementation; (ii) revising the results framework to better capture the results of the emergency activities financed under the when the project CERC was triggered; and (iii) revising the institutional arrangements to do away with an earlier envisaged Central Project Unit as its functions had been devolved to another coordination mechanism. It is within this line the official request from the Government was submitted to the Bank1. However, later on, an agreement was reached between the Bank and the Government (during one of the portfolio review meetings) to not extend the closing date2. The closing date extension will not be subject of this restructuring. 7. Therefore the rationales for the restructuring are: 8. Review of the results framework: Upon activation of the CERC, new project activities in support of a food security response were introduced into the project. A level-2 restructuring was processed in August 2021, to take into account the new activities in support of a food security response introduced into the project; the restructuring consisted among others of the addition of intermediate level indicators at component C level. The CERC activities had been completed since, and therefore to better capture and report on the detailed results of these activities, the proposal is to revise the results framework, by adding additional intermediate level indicators at component C level. In addition, the end targets of some indicators will be revised upward (to take into account the activities of the emergency activities) or revised downward for those indicators with very low results, since following the decision to no longer extend the project’s closing date, and given the delays encountered during project implementation, the project will not be able to achieve the end targets as initially planned. 9. Adjustment to the initial institutional arrangements: The original design of the project provided for the creation of the Central Project Coordination Unit (Cellule de Coordination de Projets, CCP) and this was done through the ministerial decree of October 5, 2017. But the CCP was never operational. On the other hand the UCTF, not only, performed its coordination role of the PROPAD project, moreover, the MTR's observation is that the UCTF was responsible for the preparation of the West Africa Food System Resilience Project (FSRP) for Chad and no implementation capacity issues were seen to date. Currently the recruitment for the FSRP project is in process. In this context, the Government of Chad (GoC) deems it relevant to integrate the mandates of the CCP into the UCTF 1 Government request reference Nº0177/PT/PMT/MPEPI/SE/DC/2023 dated 10 march 2023 2 Bank’s response Ref:085/04/23/RP /na, dated 6 April 2023 The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) and dissolve the CCP. Thus the restructuring calls for the adjustment of the institutional set-up by removing the CCP. 10. Reallocations between disbursement categories: in order to make up for the overdraw against Category 1 of the Grant D-302-TD, the Disbursement table will be revised to reallocate the undisbursed balance under Category 5 (the Project Preparation Advance, PPA) to Category 1. II. DESCRIPTION OF PROPOSED CHANGES 11. The proposed changes will consist of: (a) Revision of the project’s results framework: 12. The table below summarizes the changes to the results framework, including revised targets and newly added indicators. Table 1: List of the changes to the results framework Level Indicator Unit of End of project targets measure Original Revised ODP Farmers reached with agricultural assets or services Number 360,000 500,000 - Farmers reached with agricultural assets or Number 108,000 150,000 services - Female Surface area under improved technology Hectares 21,400 40,000 - Surface area under Climate-smart Agriculture Hectares 10,700 3,000 technolgies/practices Component A Young researchers trained Number 17 16 - Young researchers trained – female % 50 25 Agriculture sector reform supported Number 5 4 Component B Quantity of foundation seeds produced ton 3000 850 Diversification sub-projects supported Number 360 250 CSA sub-projects financed Number 100 50 Component C NEW Quantity of cereals and oilseeds seeds distributed Ton - 2,125 (FAO) NEW Quantity of seeds of garden vegetables and fruits Ton - 16 distributed (FAO) NEW Vegetable gardening tools distributed (FAO) Ton - 100,000 (b) Adjustment of the institutional set-up: remove the CCP from the institutional arrangement. 13. This will be done through an amendment of the Financing agreement; and (c) Reallocating of funds between disbursement categories: 14. This consists of reallocation of the undisbursed balance of SDR749,288 under category 5 (Refund of Preparation Advance) to category 1 (Goods, works, non-consulting services, consulting services, Incremental Operating Costs The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) and Training for all Parts of the Project except Part A.1(c)), to make up the overdraw of category 1 (ref. Table 2 below). The proposed adjustment has no effect on the total grant amount, which remains at SDR28,400,000. Table 2: Proposed reallocation for IDA D3020 # Category of expenditure Allocation (SDR) Disbursement percentage Amounts Current Revised Current Revised Current Revised 1 Goods, works, non-consulting 7,982,000 8,731,287 100% N/A services, consulting services, Incremental Operating Costs and Training for all Parts of the Project except Part A.1(c) 2 Goods, works, non-consulting 600,000 600,000 100% N/A services, consulting services, Incremental Operating Costs and Training for Part A.1© of the Project 3 Emergency Expenditures under 10,425,000 10,425,000 100% N/A Part C of the Project 4 Matching Grants under Parts 6,025,000 6,025,000 100% N/A B.1(b), B.2(a), B.2(b) and B.3 of N/A the Project 5 Refund of Preparation Advance 1,000,000 250,713 Amount N/A payable pursuant to Section 2.07a of the General conditions 6 Goods, works, non-consulting 2,368,000 2,368,000 100% N/A services, consulting services, Incremental Operating Costs, Training and Cash -for-Works Transfers under Part B.4 of the Project 28,400,000 28,400,000 III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Reallocation between Disbursement Categories ✔ The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) Institutional Arrangements ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) IDA-D3020-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD,WK,NCS,CS,OC,TN except Pt A.1(c), B4, C 9,100,000.00 8,573,147.74 8,731,287.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: GD,WK,NCS,CS,OC,TN for Part A.1(c) 600,000.00 116,047.18 600,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Emergency expenditures Part C 9,307,000.00 0.00 10,425,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Matching Grnt Pts B.1b;B.2(a&b);B.3 6,025,000.00 9,199,453.17 6,025,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: PPF REFINANCING 1,000,000.00 250,712.50 250,713.00 iLap Category Sequence No: 6 Current Expenditure Category: GD,WK,N/CS,OC,TR,CfW Tr - Pt B4 2,368,000.00 2,000,414.90 2,368,000.00 100.00 100.00 Total 28,400,000.00 20,139,775.49 28,400,000.00 . The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) . Results framework COUNTRY: Chad Climate Resilient Agriculture and Productivity Enhancement Project Project Development Objectives(s) The proposed Project Development Objective (PDO) is to “to promote the adoption of improved technologies leading to increased productivity and to enhance the climate resilience of agricultural production systems in the areas targeted by the Project”. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Supporting adoption of demand-driven technologies and climate-smart agriculture Farmers reached with agricultural assets or 0.00 15,540.00 78,360.00 172,920.00 287,100.00 360,000.00 services (CRI, Number) Farmers reached with agricultural assets or 0.00 6,000.00 30,000.00 52,000.00 80,000.00 108,000.00 108,000.00 services - Female (CRI, Number) Surface area under improved technology 0.00 1,090.00 4,770.00 11,040.00 16,220.00 21,400.00 disseminated by the Project (Hectare(Ha)) Surface area under Climate-smart Agriculture 0.00 0.00 1,000.00 3,500.00 7,000.00 10,700.00 10,700.00 technolgies/practices (Hectare(Ha)) The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Institutional support for sustainable agriculture development and climate resilience Percentage increase in average agriculture yield of direct beneficiaries 0.00 0.00 0.00 10.00 10.00 25.00 compared to average yields in the Project area (Percentage) Project management, coordination, M&E, and knowledge management Share of targeted beneficiaries with rating ‘Satisfied’ or above on 0.00 60.00 80.00 project interventions (Percentage) Share of targeted female beneficiaries with rating ‘Satisfied’ or above on 0.00 70.00 90.00 project interventions (Percentage) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Supporting adoption of demand driven technologies and climate-smart agriculture The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Operational regional innovation platforms 0.00 0.00 6.00 9.00 9.00 9.00 (Number) Direct beneficiaries using agricultural climate services 0.00 0.00 0.00 30.00 30.00 50.00 (Percentage) Improved seeds produced by the targeted 0.00 190.00 506.00 980.00 2,242.00 3,000.00 beneficiaries (Metric ton) Number of sub-projects to intensify sustainable 0.00 150.00 600.00 1,200.00 1,800.00 2,100.00 production systems (Number) Number of diversification sub-projects supported 0.00 0.00 60.00 180.00 300.00 360.00 (Number) Number of CSA sub-projects 0.00 0.00 15.00 45.00 75.00 100.00 (Number) Total beneficiaries who participated in Cash for 0.00 13,600.00 Work rotations (IOM) (Number) Productive assets rehabilitated (IOM) 0.00 25.00 (Number) People trained (IOM) 0.00 5,100.00 (Number) Project management, coordination, monitoring and evaluation and knowledge management The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Annual audits submitted on time and without major 0.00 1.00 2.00 3.00 4.00 4.00 qualification (Number) Grievance Resolution Mechanism established and No Yes Yes Yes Yes Yes operational (Yes/No) Technical audit report for matching grants funded 0.00 0.00 1.00 2.00 3.00 5.00 sub-projects (Number) Grievances addressed 0.00 100.00 (Percentage) Institutional support for sustainable agriculture development and climate resilience Young researchers trained 0.00 0.00 5.00 8.00 13.00 17.00 (Number) Young researchers trained - female 0.00 50.00 50.00 50.00 50.00 50.00 50.00 (Percentage) Quantity of foundation seeds produced - cereals 0.00 7.00 22.00 47.00 72.00 97.00 (Metric ton) Quantity of foundation seeds - other crops 0.00 3.00 8.00 18.00 33.00 48.00 48.00 (Metric ton) Improved technologies disseminated by the project 0.00 0.00 0.00 10.00 15.00 20.00 (Number) The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Agriculture sector reform/ policies & strategies 0.00 0.00 0.00 3.00 3.00 5.00 supported (Number) Contingency emergency response Time required for the government to make requested funds available 0.00 4.00 4.00 4.00 4.00 4.00 for an eligible crisis or emergency (Weeks) Beneficiaries that received emergency food assistance 0.00 190,000.00 (Number) Small holder farmers provided with improved 0.00 20,000.00 seeds and small agricultural equipment (Number) IO Table SPACE The World Bank Climate Resilient Agriculture and Productivity Enhancement Project (P162956)