The World Bank
Rural Alliances Project II (P127743)
REPORT NO.: RES53636
DOCUMENT OF THE WORLD BANK
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
RURAL ALLIANCES PROJECT II
APPROVED ON OCTOBER 23, 2012
TO
THE PLURINATIONAL STATE OF BOLIVIA
AGRICULTURE AND FOOD
LATIN AMERICA AND CARIBBEAN
Regional Vice President: Carlos Felipe Jaramillo
Country Director: Marianne Fay
Regional Director: Anna Wellenstein
Practice Manager/Manager: Diego Arias Carballo
Task Team Leader(s): Edward William Bresnyan, Griselle Felicita
Vega
The World Bank
Rural Alliances Project II (P127743)
I. BASIC DATA
Product Information
Project ID Financing Instrument
P127743 Investment Project Financing
Original EA Category Current EA Category
Partial Assessment (B) Partial Assessment (B)
Approval Date Current Closing Date
23-Oct-2012 30-Nov-2022
Organizations
Borrower Responsible Agency
Ministry of Rural Development and Land - EMPODERAR
The Plurinational State of Bolivia
(Emprendimientos Organizados para el Desarrollo R
Project Development Objective (PDO)
Original PDO
The objective of the Project is to improve accessibility to markets for small rural producers in the Selected Areas by:
(a)promoting productive alliances between different small rural producer organizations and purchasers; (b)
empowering rural producersthrough the establishment and strengthening of self-managed grass-root organizations; (c)
increasing access to productive assets,technologyand financial services; (d) promoting more effective, responsive and
accountable service organizations at the locallevel; and (e)enhancing environmental sustainability of productive
practices. The Project is a follow on operation to thesuccessful PAR I, whichtested the model for improving market
access.
Summary Status of Financing (US$, Millions)
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IBRD-87350 13-Apr-2017 28-Jul-2017 08-Feb-2018 30-Nov-2022 100.00 97.59 2.41
IDA-51700 23-Oct-2012 12-Dec-2012 09-May-2013 30-Jun-2018 49.97 46.18 0
The World Bank
Rural Alliances Project II (P127743)
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
A. PROJECT STATUS AND RATIONALE FOR PROJECT RESTRUCTURING
1. The Bolivia Rural Alliances II Project (PAR II) was approved by the Board of Directors on October 23, 2012, with
an original IDA Credit (5170-BO) of SDR 32.9 million (US$50 million equivalent) and became Effective on May 9, 2013.
PAR II has three components: (1) Institutional Strengthening; (2) Implementation of Rural Alliances; and (3) Project
Management, Monitoring, and Evaluation. Following two closing date extensions (totaling nine months), IDA Credit
5170-BO was fully disbursed and closed on June 30, 2018.
2. The Board of Directors approved an Additional Financing to PAR II (IBRD Loan 8735-BO) in the amount of US$
100 million on April 13, 2017, which became Effective on February 8, 2018, with an original closing date on November
30, 2021, which was extended once for 12 months until the current Closing Date of November 30, 2022. The Ministry
of Rural Development and Land (MDRyT) implements PAR II through its EMPODERAR unit. The National Fund for
Productive and Social Investment (FPS) also implements a series of subprojects for municipal and regional
infrastructure under PAR II.
3. The Project Development Objective (PDO) continues to be achievable and is rated Satisfactory. Implementation
Progress (IP) is also rated Satisfactory. Cumulative disbursements of IBRD 8735-BO are US$ 96.6 million (97 percent of
the total commitment). Up to August 31, 2022, MDRyT/EMPODERAR had 1,156 rural alliances subprojects under
implementation, benefiting some 30,000 households at a total cost of US$ 76.8 million, of which US$ 61.5 million
would be financed under IBRD 8735-BO. FPS has 71 subproject agreements in place for investments in
municipal/regional infrastructure and irrigation services totaling US$ 14.6 million, of which 80 percent (US$ 11.7
million) would be financed under IBRD 8735-BO.
4. The PAR II Procurement rating is Satisfactory, its Financial Management rating is Satisfactory, and the Overall
Safeguards (Environment and Social) rating is Satisfactory. There are no outstanding issues. The Borrower is in
compliance with the Loan 8735-BO covenants regarding financial reporting, there are no outstanding audits and all
audit reports for the Project were considered satisfactory by the Bank.
5. As stated in its technical report of August 5, 2022, of the 71 subprojects (at a total cost of US$14.6 million) under
FPS implementation, eleven critical subprojects (at a total cost of US$3 million) will not be concluded by the November
30, 2022, closing date. These remaining eleven subprojects will provide needed market access and irrigation services
to fifteen rural alliances implemented by rural producer organizations across four Departments, with support from
EMPODERAR.
B. PROPOSED CHANGES
6. This Restructuring Paper seeks approval to: (a) extend the Closing Date for IBRD 8735-BO by eight (8) months to
July 31, 2023; and (b) reallocate loan proceeds in Categories 1, 2a, 2b, and 3 of Ln. 8735-BO.
The World Bank
Rural Alliances Project II (P127743)
7. Closing Date Extension: The Government of Bolivia, in correspondence from the Ministry of Development
Planning (MPD) dated October 24, 2022, and from MDRyT dated September 15, 2022, requested that the World Bank
extend the IBRD 8735-BO Closing Date by eight (8) months to July 31, 2023. The proposed Closing Date Extension
would: (a) permit the full implementation of the 1,156 signed subproject agreements with rural producer
organizations and the 71 approved municipal/regional infrastructure and irrigation subprojects; and (b) fully disburse
the remaining undisbursed loan resources of US$ 3.4 million. Both EMPODERAR and FPS have presented action plans
to support the proposed eight-month Closing Date extension; the Bank team has reviewed these action plans and
finds them satisfactory. Pending the Decision regarding the Closing Date Extension, the disbursement estimates for
IBRD 8735-BO will be updated.
8. Reallocation of Loan Proceeds: The Government of Bolivia, in correspondence from MPD dated August 8, 2022,
requested a relocation of the loan proceeds of 8735-BO as follows: (a) increase Category 1 by US$ 368,100 for a total
of US$ 5,398,100; (b) decrease Category 2a by US$ 3,612,500 for a total of US$75,666,800; (c) increase Category 2b by
US$ 314,500 for a total of US$ 4,255,200; and (d) increase Category 3 by US$ 2,929,900 for a total of US$ 14,429,900.
III. DETAILED CHANGES
LOAN CLOSING DATE(S)
Original Revised Proposed Proposed Deadline
Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal
Applications
IBRD-87350 Effective 30-Nov-2021 30-Nov-2022 31-Jul-2023 30-Nov-2023
31-Mar-2018, 30-Jun-
IDA-51700 Closed 30-Nov-2017
2018, 17-Dec-2018
REALLOCATION BETWEEN DISBURSEMENT CATEGORIES
Current
Current Actuals + Proposed Disbursement %
Ln/Cr/TF Expenditure
Allocation Committed Allocation (Type Total)
Category
Current Proposed
IBRD- GO, CS, OP and
5,030,000.00 4,985,254.47 5,398,100.00 100.00 100.00
87350-001 TR - Part 1
Currency: CW,GO,NCS&CS
USD - Subp - Pts 2a & 79,279,300.00 70,345,550.89 75,666,800.00 100.00 100.00
2b
The World Bank
Rural Alliances Project II (P127743)
CS (inc. audit) -
3,940,700.00 3,996,105.92 4,255,200.00 100.00 100.00
Part 2c & FPS OP
GO,CS,NCS,TR,O
P-Pt 3 & audit 11,500,000.00 13,168,905.04 14,429,900.00 100.00 100.00
(more)
FRONT END FEE 250,000.00 250,000.00 250,000.00
Total 100,000,000.00 92,745,816.32 100,000,000.00