The World Bank Uttarakhand Disaster Recovery Project (P146653) REPORT NO.: RES57742 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ADDITIONAL FINANCE FOR THE UTTARAKHAND DISASTER RECOVERY PROJECT APPROVED ON FEBRUARY 21, 2019 TO INDIA URBAN, RESILIENCE AND LAND SOUTH ASIA Regional Vice President: Martin Raiser Country Director: Auguste Tano Kouame Regional Director: Dina Umali-Deininger Practice Manager/Manager: Abhas Kumar Jha Task Team Leader(s): Henrike Brecht The World Bank Uttarakhand Disaster Recovery Project (P146653) ABBREVIATIONS AND ACRONYMS CERC Contingency Emergency Response Component GoUK Government of Uttarakhand IBRD International Bank for Reconstruction and Development IDA International Development Association PDO Project Development Objective UDRP Uttarakhand Disaster Recovery Project USDMA Uttarakhand State Disaster Management Authority The World Bank Uttarakhand Disaster Recovery Project (P146653) BASIC DATA Product Information Project ID Financing Instrument P146653 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 25-Oct-2013 30-Sep-2023 Organizations Borrower Responsible Agency The Republic of India Project Development Objective (PDO) Original PDO To restore housing, rural connectivity and build resilience of communities in Uttarakhand and increase the technical capacity of the State entities to respond promptly and effectively to an eligible crisis or emergency. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-89210 21-Feb-2019 05-Mar-2019 29-Apr-2019 30-Sep-2023 96.00 87.31 8.69 IDA-53130 25-Oct-2013 09-Jan-2014 07-Feb-2014 30-Jun-2019 243.83 224.91 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Uttarakhand Disaster Recovery Project (P146653) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. BACKGROUND 1. The Uttarakhand Disaster Recovery Project (UDRP) was prepared in response to the 2013 floods and landslides in Uttarakhand, India, which caused 580 deaths, affected 900,000 people and 4,200 villages, and destroyed about 3,320 houses and 9,000 km of roads. The Project is financed by a US$250 million IDA credit (Cr 5313-IN), approved on October 25, 2013, and a US$96 million Additional Financing IBRD loan (Ln 89210-IN), approved on February 21, 2019. The Government of Uttarakhand (GoUK) is implementing the UDRP (P146653) through the Uttarakhand State Disaster Management Authority (USDMA) as the Project Management Unit. 2. The Project has supported the State of Uttarakhand with the restoration of housing and rural connectivity, the building of community resilience, and the enhancement of the technical capacity to respond promptly and effectively to the COVID-19 pandemic. The project has reconstructed more than 2,300 houses, rehabilitated more than 1,500 km of roads, implemented slope stabilization and riverbank protection works, repaired nearly 80 bridges, and retrofitted 20 school buildings. It also supported the construction of the USDMA headquarters and a training facility for the State Disaster Response Force. Moreover, the hydrometeorological network was strengthened and a multi-hazard probabilistic risk assessment was developed. B. PROJECT STATUS 3. Overall Implementation Progress and Progress towards Achievement of the Project Development Objective (PDO) are currently rated Satisfactory and the Project is on track to close by September 30, 2023. Two PDO indicators (“Average monthly beneficiaries of equipment procured under the CERC [Contingency Emergency Response Component]”) and (“Departments that make effective use of information generated by USDMA”) are achieved, and the remaining two indicators (“Targeted affected households with multi-hazard resilient housing” and “Targeted affected villages with restored connectivity”) are 95 percent achieved. Disbursement of the Additional Finance stands at 91 percent. Overall disbursement that includes the original IDA credit stands at 97 percent. The World Bank Uttarakhand Disaster Recovery Project (P146653) C. RATIONALE FOR RESTRUCTURING 4. This restructuring is conducted to cancel US$1.5 million that was allocated to the Contingency Emergency Response Component (CERC) of the Project. The CERC was activated in March 2020 with an allocation of US$ 16.28 million to support the Government’s response to the COVID-19 pandemic. The implementation of this component has been highly satisfactory with the target of 15,000 average monthly beneficiaries of equipment procured under the CERC being significantly surpassed with more than 40,000 average monthly beneficiaries as per the latest ISR. All activities under the CERC have been completed. The savings that are being canceled result from favorable currency fluctuations. An additional Magnetic Resonance Imaging (MRI) machine was envisioned to be procured using the savings, but the procurement could not be completed in time before project closure. During the previous restructurings in December 2021 and March 2023, the closing date was extended by 12 months and 6 months, respectively, to accommodate delays caused by the COVID- 19 pandemic (2021) and a sudden rise in steel prices for bridges (2023), respectively. 5. The Government of India through its Department of Economic Affairs, Ministry of Finance, and the GoUK requested the Bank to cancel US$1.5 million allocated to the CERC through a communication dated September 11, 2023. II. DESCRIPTION OF PROPOSED CHANGES 6. This is a level 2 restructuring to reflect the following change: i. Cancellation of US$1.5 million. US$1.5 million will be canceled from the loan amount of the UDRP Additional Financing (Ln 89210-IN). 7. All legal covenants are complied with. III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ The World Bank Uttarakhand Disaster Recovery Project (P146653) Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Resilient Infrastructure Resilient Infrastructure 31.00 No Change 31.00 Reconstruction Reconstruction Rural Road Connectivity 203.39 No Change Rural Road Connectivity 203.39 Technical Assistance and Technical Assistance and Capacity Building for Disaster 58.60 No Change Capacity Building for Disaster 58.60 Risk Management Risk Management Financing Disaster Response Financing Disaster Response 12.00 No Change 12.00 Expenses Expenses Implementation Support 24.73 No Change Implementation Support 24.73 Contingent Emergency Contingent Emergency Response 16.28 Revised 14.78 Response TOTAL 346.00 344.50 The World Bank Uttarakhand Disaster Recovery Project (P146653) OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation UNDISBURSE IBRD- Disburs USD 96,000,000.00 1,500,000.00 12-Sep-2023 94,500,000.00 D BALANCE 89210-001 ing AT CLOSING IDA-53130- Repayi 158,523,478.6 158,523,478.6 XDR 0.00 001 ng 3 3 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-89210-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: GdWkNcsCsTrWkpIOC Comp 1.2,2,3,5 79,480,000.00 74,084,144.72 79,480,000.00 80.00 80.00 iLap Category Sequence No: 2 Current Expenditure Category: Emergency Expnd CER comp - Comp6 16,280,000.00 12,983,078.06 14,780,000.00 100.00 100.00 iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 240,000.00 240,000.00 240,000.00 Total 96,000,000.00 87,307,222.78 94,500,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes The World Bank Uttarakhand Disaster Recovery Project (P146653) Year Current Proposed 0000 0.00 0.00 2014 24,503,994.46 24,504,994.46 2015 26,042,208.89 26,042,208.89 2016 53,727,807.81 53,727,807.81 2017 45,692,786.50 45,692,786.50 2018 41,232,953.28 41,232,953.28 2019 27,032,992.95 27,032,992.95 2020 15,574,095.17 15,574,095.17 2021 27,545,463.58 27,545,463.58 2022 31,074,607.51 31,074,607.51 2023 14,600,000.00 14,600,000.00 2024 13,486,300.00 11,986,300.00 .