The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) REPORT NO.: RES57444 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ZIMBABWE COVID-19 EMERGENCY RESPONSE PROJECT APPROVED ON MARCH 3, 2022 TO REPUBLIC OF ZIMBABWE HEALTH, NUTRITION & POPULATION EASTERN AND SOUTHERN AFRICA Regional Vice President: Victoria Kwakwa Country Director: Nathan M. Belete Regional Director: Daniel Dulitzky Practice Manager: Ernest E. Massiah Task Team Leaders: Fernando Montenegro Torres, Carol Atieno Obure The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) ABBREVIATIONS AND ACRONYMS EDD End Disbursement Date ESMAP Energy Sector Management Assistance Program GFF Global Financing Facility GoZ Government of Zimbabwe HEPR TF Health Emergency Preparedness and Response Trust Fund IPF Investment Project Financing MoHCC Ministry of Health and Child Care PDO Project Development Objective PIE Project Implementing Entity The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) BASIC DATA Product Information Project ID Financing Instrument P176141 Investment Project Financing Environmental and Social Risk Classification (ESRC) Substantial Approval Date Current Closing Date 03-Mar-2022 31-Aug-2023 Organizations Borrower Responsible Agency Republic of Zimbabwe Project Development Objective (PDO) Original PDO To support the Government of Zimbabwe to deploy and manage COVID-19 vaccines and strengthen related health system capacity. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-B6705 15-Feb-2022 09-Mar-2022 28-Apr-2022 31-Aug-2023 5.00 4.17 .83 TF-B6709 15-Feb-2022 09-Mar-2022 28-Apr-2022 31-Aug-2023 1.58 .15 1.42 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This Restructuring Paper seeks approval for a no-cost extension of the closing date for the Zimbabwe COVID-19 Emergency Response Project (P176141). The project was approved on March 3, 2022, became effective on April 28, 2022, and is financed by two grants totaling US$6.575 million from the Health Emergency Preparedness and Response Trust Fund (HEPR TF) (US$5 million) and the Energy Sector Management Assistance Program (ESMAP) (US$1.575 million). 2. The project aims to support the Government of Zimbabwe (GoZ) to deploy and manage COVID-19 vaccines and strengthen related health system capacity. B. Project Status 3. Progress towards the achievement of the project development objective (PDO) and overall implementation progress are rated moderately satisfactory. The overall project disbursement stands at 66 percent as of August 10, 2023. The project is now being implemented faster as activities that were delayed by internal audits have been cleared to move ahead by the Government. Although there has been changes in the leadership of the Ministry of Health and Child Care (MoHCC), the project is currently moving forward at an accelerated pace as the World Bank reached agreements with the Government to keep agile, close, and fluid communication and dialogue with country-based staff and the project implementing entity (PIE). 4. The project has successfully supported a national COVID-19 vaccine campaign, rolled out the COVID-19 vaccine authentication system, and contributed to the increase in percentage of population vaccinated from 39 percent to 49.5 percent (of which 54 percent women and 46 percent men) under Component 1. Under Component 2, the procurement process for solar direct drive fridges and solar equipment for selected health facilities is at an advanced stage with successful bidders identified and contract process in progress. 5. The project’s environmental and social risk management performance is rated as satisfactory, and the necessary instruments, namely, the Environmental and Social Management Framework and the Infection Control and Waste Management Plan, are in place. The project beneficiary feedback mechanisms are accessible to the public through a variety of channels such as suggestion boxes in health facilities that are periodically checked, feedback received through health center committees which include a civil society representative, and the project website. 6. There are no outstanding financial audits for this project. C. Rationale for Restructuring 7. In a letter dated August 7, 2023, the GoZ requested the World Bank to extend the project closing date from August 31, 2023, to April 30, 2025. The proposed extension will allow for the full implementation of planned priority activities which were disrupted by the restructuring/staffing changes within the MoHCC. The HEPR TF Secretariat has agreed to the extension until April 28, 2025, whereas the ESMAP grant is proposed to be extended until October 31, 2023, because the The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) end disbursement date (EDD) for the trustee ESMAP TF, currently December 31, 2023, is in the process of being extended.1 An additional financing from the Global Financing Facility (GFF) to the project is currently under preparation and expected to be approved by the end of October 2023. Together with the trustee ESMAP EDD extension, a further extension of the Zimbabwe ESMAP grant will be sought, which will include revisions of the results framework. 8. The provisions of Section III, Paragraph 51 of the Bank Directive for Investment Project Financing to proceed with the extension of closing date are met. A formal request from the Government of Zimbabwe has been received, the PDO remains achievable, the performance of the MoHCC and the PIE has improved over the past five months and is satisfactory, and the Bank and the Government have agreed on actions that have been and will be undertaken by the Government and the PIE to complete the project. II. DESCRIPTION OF PROPOSED CHANGES 9. The proposed restructuring is to extend the closing date of the two grants financing the project: HEPR TF grant (TF0B6705) from August 31, 2023, to April 28, 2025; and the ESMAP grant (TF0B6709) from August 31, 2023, to October 31, 2023. This results in changes in disbursement estimates and the implementation schedule. ES NOTE TABLE 1Extending the ESMAP grant for Zimbabwe will result in reducing the grace period in view of the current trustee EDD of December 31, 2023. On August 9, 2023, DFI and WFA provided no-objection to extend the closing date of the ESMAP grant to October 31, 2023. The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE The World Bank Zimbabwe COVID-19 Emergency Response Project (P176141) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-B6705 Effective 31-Aug-2023 28-Apr-2025 28-Aug-2025 TF-B6709 Effective 31-Aug-2023 31-Oct-2023 29-Dec-2023 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2021 0.00 0.00 2022 800,000.00 0.00 2023 4,150,000.00 0.00 2024 1,625,000.00 0.00 .