The World Bank Balochistan Livelihoods and Entrepreneurship Project (P159292) REPORT NO.: RES58765 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF BALOCHISTAN LIVELIHOODS AND ENTREPRENEURSHIP PROJECT APPROVED ON MARCH 3, 2020 TO ISLAMIC REPUBLIC OF PAKISTAN AGRICULTURE AND FOOD SOUTH ASIA Regional Vice President: Martin Raiser Country Director: Najy Benhassine Regional Director: Dina Umali-Deininger Practice Manager/Manager: Oliver Braedt Task Team Leader(s): Maha Ahmed The World Bank Balochistan Livelihoods and Entrepreneurship Project (P159292) I. BASIC DATA Product Information Project ID Financing Instrument P159292 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 03-Mar-2020 30-Jun-2024 Organizations Borrower Responsible Agency Planning and Development Department, Government of Islamic Republic of Pakistan Balochistan Project Development Objective (PDO) Original PDO The Project Development Objective is to create employment opportunities for rural communities and achieve sustainability of enterprises in selected districts of Balochistan. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-65440 03-Mar-2020 26-Mar-2021 29-Mar-2021 30-Jun-2024 20.42 3.50 16.25 IDA-D5650 03-Mar-2020 26-Mar-2021 29-Mar-2021 30-Jun-2024 14.58 2.54 11.61 TF-B2123 03-Mar-2020 26-Mar-2021 26-Mar-2021 30-Jun-2023 15.00 15.00 0 The World Bank Balochistan Livelihoods and Entrepreneurship Project (P159292) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES A. Introduction 1. This Restructuring Paper seeks to extend the closing date of the Balochistan Livelihoods and Entrepreneurship Project (BLEP) by 12 months from June 20, 2024 to June 30, 2025, following the request from the Government of Pakistan Economic Affairs Division dated September 4, 2023. The overall design, Project Development Objective (PDO), components/sub-components, institutional arrangements, fiduciary and environmental and social safeguards arrangements and environmental and social safeguards category remain unchanged. This is the second restructuring and first extension of the overall closing date. 2. The recently-concluded Mid-Term Review of BLEP concluded that the Project should be extended based on the following considerations: o The closing date of 30 June 2024 was based on a five-year project implementation period, starting in April 2019, when the project PC-1 was approved by PDWP. However, Project effectiveness was delayed by two years to March 2021. o Since project effectiveness, BLEP has shown excellent performance, as verified by various supervision missions and recent assessment for IFRAP. o There is a need to ensure continuity and sustainability of project activities by allocating adequate time for the completion and handover or closure of project deliverables. 3. The submission of the audit report to the Bank is timely and there are no overdue audit reports. B. Background 4. The BLEP was approved by the Board of Directors of the World Bank on March 3, 2020 and became effective on March 29, 2021. BLEP is a blend project consisting of financing from multiple sources including: i) IDA credit of US$14.58 million from the Regional Sub-Window for Refugees and Host Communities (RSW) ii) IDA credit of US$5.84 million from the country IDA allocation; iii) IDA grant of US$ 14.58 million equivalent from the RSW; and, iv) grant from the KP and Balochistan Multi Donor Trust Fund (MDTF) in the amount of US$15 million. 5. The project consists of 3 components including: i) Economic Mobilization (US$ 6.59 million); ii) Promoting Enterprise Development and Livelihoods (US$ 37.28 million); and, iii) Project Management (US$ 6.13 million). 6. The project aims to achieve the following outcomes: • Total number of direct beneficiaries (disaggregated by relevant demographics including men, women, refugees and other vulnerable groups) (Corporate Results Indicator) • Beneficiaries of job-focused interventions, disaggregated by relevant demographics (Corporate Results Indicator) The World Bank Balochistan Livelihoods and Entrepreneurship Project (P159292) • Profitability of enterprises supported by the project enhanced, disaggregated by gender • Percentage of enterprises supported through projects with ongoing operations after three years, disaggregated by gender 7. To date, the project has made significant progress towards achieving its development objective. It is currently rated as “Moderately Satisfactory” for both “Overall Implementation Progress” and “Progress towards achievement of PDO”, with cumulative disbursements of US$ 21 million, representing 42 percent of the total allocation. US$ 15 million from the MDTF was utilised in a effective manner and the project wasalso able to leverage exchange rate savings for timely flood response. 8. Fiduciary and Safeguards arrangements are satisfactory. With completion of major activities, the Procurement rating was improved to Satisfactory. All Financial Management (FM) arrangements are also in place and FM is also rated as satisfactory. FM manual was revised and added to the overall Project Operational Manual. Relevant ESMPs are developed and approved by the World Bank; these are revised as required. The Project has established a multi- layered Grievance Redress Mechanism, which is effective in managing community complaints. The Project has also established a state-of-the-art MIS, which is fully updated and linked to an android-based data collection app, also developed in-house, ensuring real-time monitoring of all activities. 9. Based on the project performance, it was agreed that BLEP PIU will be used to implement US$ 40 million component on livelihoods in the recently approved World Bank-financed Integrated Flood, Resilience and Adaptation Project (IFRAP). C. Rationale for Restructuring and Proposed Changes 10. This Restructuring Paper seeks the approval of the CD to extend the closing date of BLEP from June 30, 2024, to June 30, 2025. The proposed restructuring is in response to the written request dated September 4, 2023 received from EAD supporting the Government of Balochistan’s request. The rationale is the need for additional time by the project to ensure continuity and sustainability of project activities, complete key activities such as construction of Business Support Facilities and Vocational Training for host communities and their hand-over to communities. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-65440 Effective 30-Jun-2024 30-Jun-2025 30-Oct-2025 IDA-D5650 Effective 30-Jun-2024 30-Jun-2025 30-Oct-2025 TF-B2123 Closed 30-Jun-2022 30-Jun-2023 The World Bank Balochistan Livelihoods and Entrepreneurship Project (P159292)