The World Bank Livestock Development Project (P154908) REPORT NO.: RES54368 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LIVESTOCK DEVELOPMENT PROJECT APPROVED ON OCTOBER 27, 2016 TO REPUBLIC OF CAMEROON AGRICULTURE AND FOOD WESTERN AND CENTRAL AFRICA Regional Vice President: Ousmane Diagana Country Director: Abdoulaye Seck Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Chakib Jenane Task Team Leader(s): Fidele Honorine Yobo A Koue Epse Nhiomog, Nabil M. Chaherli The World Bank Livestock Development Project (P154908) I. BASIC DATA Product Information Project ID Financing Instrument P154908 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 27-Oct-2016 31-Jan-2023 Organizations Borrower Responsible Agency Ministry of Livestock, Fisheries and Animal Industries Republic of Cameroon (MINEPIA) Project Development Objective (PDO) Original PDO The Project Development Objectives (PDO) are to improve productivity of selected livestock production systems and the commercialization of their products for the targeted beneficiaries, and to provide immediate and effective response in the event of an Eligible Crisis or Emergency. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59080 27-Oct-2016 07-Jun-2017 13-Sep-2017 31-Jan-2023 100.00 82.86 16.28 The World Bank Livestock Development Project (P154908) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Purpose of this restructuring 1. The purpose of this second restructuring is to extend the closing date of the Livestock Development Project (PRODEL - P154907 – Cr. No. 5908 CM) from January 31, 2023 to May 31, 2023 to allow for completion of some activities and ensure an orderly closure of the project. Background 2. The Bank received from the Government of Cameroon a request to extend the closing date of PRODEL on December 20, 2022. The Project Development Objective (PDO) and Implementation Progress (IP) ratings are currently rated as ‘Moderately Satisfactory’ (following the December 12-16, 2022 supervision mission). 3. PRODEL was approved on October 27, 2016 for an IDA Credit equivalent to US$100 million. It became effective on September 13, 2017 and is scheduled to close on January 31, 2023. Its PDO is “to improve productivity of selected livestock production systems and the commercialization of their products for the targeted beneficiaries, and to provide immediate and effective response in the event of an Eligible Crisis or Emergency”. It has four components: (i) Improvement of livestock services access and delivery; (ii) Improvement of pastoral productivity, access to markets, and resilience of pastoral communities; (iii) Support to livestock value chains development and (iv) Project coordination, management, communication, and monitoring. Status of the Project The main activities implemented, and results achieved are: 4. Component 1 - Improvement of livestock services access and delivery: The main activities have been focusing on improving animal health services, facilitating access to quality inputs, and providing institutional support to the Ministry of livestock, fisheries, and animal industries (MINEPIA). Results achieved: Indicators targets show good progress: (i) 71% post vaccinal seroprevalence of small ruminants against the small ruminants plague (level of achievement : 101%), (ii) 1342 animal genetic material as of November 30, 2022 acquired for livestock stations and financed producer organizations (level of achievement : 59%), (iii) 47,389 client days of training provided to public and private stakeholders of which 9018 to women and 24,078 to youth to improve production techniques (level of achievement: 263%), (iv) 73,4% satisfaction of beneficiaries for quality of animal health services (level of achievement (92%). 5. Component 2 - Improvement of pastoral productivity, access to markets, and resilience of pastoral communities: Support has been provided to improve animal production practices and community-based management of pastoral areas, commercialization and marketing of pastoral livestock products and the resilience of poor and conflict-affected communities. Results achieved: (i) 30 municipal plans for participatory pastoral resources management (PGRP) have been elaborated and implemented (level of achievement: 100%); (ii) 7,287 ha of grazing area managed sustainably with the The World Bank Livestock Development Project (P154908) involvement of the communes and communities including pastoralists (level of achievement: 242%); (iii) 27 mediation platforms created at council level to manage conflicts for access and use of pastoral resources (level of achievement: 90%); (iv) 74 management committees established to manage pastoral infrastructure built by the project (level of achievement: 93%); (v) 26 market management platforms benefitting from the participation of herders’ organizations (level of achievement: 87%); (vi) 27% of herders in the project area have adopted at least one improved production practice promoted by the project (level of achievement 67%). 6. Component 3 - Support to livestock value chains development: Activities focused on promoting productive partnerships and financing of producer organizations (PO) sub-projects (SP). Result achieved: 25 productive partnerships (PP) established between producers and buyers in supported value chains (level of achievement: 83%); 506 sub-projects financed and under various implementation stages (level of achievement: 101%) out of 3800 eligible proposals expressed. 7. Disbursement to date. The project has disbursed US$82.5 million of the credit (as of December 19, 2022). The remaining balance of the IDA credit is expected to be disbursed in a manner that the risk of ineligible expenditure is negligible by the end of the proposed extension period. Activities with risks of being completed beyond May 31, 2023 will be canceled. 8. Key challenges faced by the project which delayed the implementation of some activities include: (i) delays in the implementation of 25 business plans due to logistical difficulties linked to disruptions in import logistics for livestock inputs and equipment for funded Producer Organizations (POs) sub-projects and disruption in supply chain due to COVID; (ii) delays in finalization of infrastructure contracts due to weak financial capacities of service providers to pre-finance activities; (iii) difficult climatic conditions in 2022 to access some project areas; (iv) a difficult health environment in the different production basins characterized by recurring resurgence of African swine fever and avian influenza; as well as (v) delays in the submission of supporting documentation in the implementation of Sub-Projects (SPs) and community-based Management Plans for Pastoral resources (MPPRs). 9. Corrective actions implemented by the project. The mains corrective measures implemented to address the challenges faced are: (i) mobilization of local service providers to strengthen capacities of POs in procurement processes; (ii) strengthening of capacities of councils in procurement practices; (iii) strengthening of public animal health services’ capacities in conducting surveillance and animal disease control; and (v) bimonthly recording of Matching Grant expenses in the accounting system; and (vi) establishment of two reimbursement request for funds (RRFs) per month on client connection. Rationale for extending the project closing date 10. The extension of the credit will allow completion of ongoing activities: (a) complete the import of equipment for POs, such as livestock feed production plants, fresh milk processing units, pork slaughtering and sausage making equipment, hatcheries, and parent chicks; and (b) complete ongoing works in several local councils including such as demarcation of cattle tracks, solar pumped water infrastructures, zoo sanitary intervention parks, and livestock markets. The proposed extension will allow an orderly closure by May 31, 2023 and give time to the Government to mainstream and ensure sustainability of PRODEL’s activities and results into its current livestock development plans and strategies. 11. Action plan and disbursement Schedule. A detailed implementation plan for 25 SPs and select contracts for the 30 PGRP with delayed implementation has been prepared by the Project team presenting remaining activities, and The World Bank Livestock Development Project (P154908) individual SP/PGRP timeframe to ensure a smooth implementation of remaining activities. The implementation of this action plan will be monitored on a weekly basis by the Bank Task team. Activities with a risk of extending beyond May 31, 2023, will be canceled. 12. There are no overdue audits for the project. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-59080 Effective 31-Jan-2023 31-May-2023 30-Sep-2023