The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) REPORT NO.: RES43221 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF WEST AFRICA REGIONAL FISHERIES PROGRAM SOP-C1 – MAURITANIA AND GUINEA APPROVED ON MARCH 16, 2015 AND THE WEST AFRICA REGIONAL FISHERIES PROGRAM ADDITIONAL FINANCING FROM THE GLOBAL ENVIRONMENT FACILITY (GEF) TO GUINEA, LIBERIA, AND SIERRA LEONE APPROVED ON FEBRUARY 8, 2017 ENVIRONMENT, NATURAL RESOURCES & THE BLUE ECONOMY AFRICA WEST Regional Vice President: Ousmane Diagana Country Director: Deborah L. Wetzel Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Maria Sarraf Task Team Leader(s): Philippe Ambrosi, Fisseha Tessema Abissa, Neeta Hooda The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) ABBREVIATIONS AND ACRONYMS COVID-19 Coronavirus disease 2019 CSRP Commission Sous-Regionale des Peches (Sub Regional Fisheries Commission) EEZ Exclusive Economic Zone GEF Global Environment Facility IDA International Development Association IGA Income-Generating Activity IUU Illegal, Unreported, and Unregulated (Fishing) MCS Monitoring, Control, and Surveillance MPAEM Ministère des Pêches, de l’Aquaculture et de l’Economie Maritime (Ministry of Fisheries, Aquaculture and Maritime Economy, Guinea) MPEM Ministère des Pêches et de l’Economie Maritime (Ministry of Fisheries and Maritime Economy, Mauritania) NGO Non-Governmental Organization VMS Vessel Monitoring System WARFP West Africa Regional Fisheries Program The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) BASIC DATA Product Information Project ID Financing Instrument P126773 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 16-Mar-2015 15-Dec-2020 Organizations Borrower Responsible Agency Ministère des Pêches, de l'Aquaculture et de l'Economie Maritime in Guinea,Ministry of Fisheries and Maritime Ministry of Finance -Sierra Leone Economy in Mauritania,Ministry of Fisheries and Marine Resources in Sierra Leone Project Development Objective (PDO) Original PDO The development objective of this first phase of the West Africa Regional Fisheries Program SOP-C (formerly APL-C) is to strengthen governance and management of targeted fisheries and improve handling of landed catch at selected sites. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D0390 16-Mar-2015 17-Apr-2015 24-Jun-2015 15-Dec-2020 12.00 7.89 4.08 IDA-D0400 16-Mar-2015 14-Apr-2015 30-Nov-2015 15-Dec-2020 10.00 8.87 .98 TF-A3530 24-Feb-2017 24-Feb-2017 17-Oct-2017 01-Mar-2021 5.00 3.85 1.15 TF-A3532 08-Feb-2017 08-Feb-2017 12-Jul-2017 01-Mar-2019 1.00 1.00 0 TF-A3533 08-Feb-2017 08-Feb-2017 08-Jun-2017 31-Dec-2021 4.00 2.83 1.17 The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) TF-19089 16-Mar-2015 17-Apr-2015 17-Apr-2015 15-Dec-2020 7.00 5.53 1.47 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This proposed restructuring of the West Africa Regional Fisheries Program (WARFP) is in response to the requests from the Governments of Guinea (dated July 10, 2020) and Mauritania (dated June 29, 2020) for a no-cost extension to address the impact of the Coronavirus disease 2019 (COVID-19). A. Project Description 2. The development objective of this first phase of the WARFP SOP-C (formerly APL-C) is to strengthen governance and management of targeted fisheries and improve handling of landed catch at selected sites. The Project totals nearly US$40 million in resources, from the International Development Association (IDA) and the Global Environment Facility (GEF), and covers four countries, Guinea, Liberia, Mauritania, and Sierra Leone, as well as one regional organization, the Commission Sous-Regionale des Pêches (CSRP, Sub Regional Fisheries Commission). The Project was approved on March 16, 2015 and covered initially Guinea and Mauritania as well as the CSRP, with IDA resources for all and GEF support for Mauritania only. An additional financing was approved on January 5, 2017, bringing in more resources (all from the GEF) and adding Liberia and Sierra Leone to the Project. The Project has since been restructured three times, once following the mid-term review (Level-2 restructuring approved on April 30, 2019) and more recently, to address, among others, the impact of COVID-19 in Sierra Leone (two Level-2 restructurings approved in July 2020 and August 2020, with the August 2020 restructuring being a corrective action to address category allocation only). The GEF Grant to Liberia closed on March 1, 2019. IDA and GEF legal agreements have different closing dates ranging to December 15, 2020 (IDA and GEF Mauritania, IDA Guinea), March 1, 2021 (GEF Guinea), and December 31, 2021 (GEF Sierra Leone, as a result of its recent restructuring leading to a 9-month no-cost extension). 3. The Project includes four components as follows: - Component 1 (Strengthening Good Governance and Sustainable Management of the Fisheries), to build the capacity of governments and stakeholders to develop and implement policies and systems that would ensure that fish resources are used in a manner that is environmentally sustainable, socially equitable, and economically profitable. The component contains four key subcomponents: (i) Developing the legal and operational framework and strengthening the institutional capacity to enable sustainable management of fisheries resources (long-term agenda); (ii) Strengthening vessel registration systems for accurate assessment and effective control of fishing capacity (short-term agenda); (iii) Introducing new fisheries management schemes in target fisheries, segments, or communities, to align fishing capacity and effort to sustainable catch levels (medium-term agenda); and (iv) Strengthening systems for fisheries-related data collection, compilation, and management, and dissemination and communication in a transparent manner (long-term agenda). - Component 2 (Reducing Illegal, Unreported, and Unregulated (IUU) Fishing), to reduce IUU fishing activities that threaten the sustainable management of fish resources by strengthening fisheries Monitoring, Control, and Surveillance (MCS) systems. Mauritania does not have this component as the fisheries surveillance program is already funded by the German Development Assistance. - Component 3 (Increasing Contribution of the Fish Resources to the Local Economy), to increase the benefits derived from fish caught in the Exclusive Economic Zones (EEZs) of the countries in particular by investing in infrastructure and The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) institutional capacity that enable improved handling of landed fish and reduction of postharvest losses. Key infrastructure activities include for instance, the rehabilitation of the Fish Market in Nouakchott for Mauritania and for Guinea, the development of the fish landing site complex at Koukoude in Boffa County. - Component 4 (Project Management, Monitoring and Evaluation, and Regional Coordination), to support project implementation and regional coordination within the WARFP, ensuring that regular monitoring and evaluation is carried out and the results are fed back into decision making and project management. B- Project Status 4. Overall there are good progress and tangible results with the Project. Now that infrastructure work is progressing in all countries, disbursement has picked up: over FY20, disbursement totaled US$10.82 million, or nearly one-third of the entire project amount. The COVID-19 pandemic, however, is seriously impacting this positive momentum as activity at work sites has slowed down or stopped. Delays are currently estimated to be at least 6 months and could increase if the pandemic worsens, triggering a new wave of lockdown and restrictions. To achieve satisfactory implementation, the participating countries are therefore requesting a one-year no-cost extension. 5. For Mauritania, the ratings for the Progress towards achievement of PDO and Overall Implementation Progress remain Moderately Satisfactory but at risk from COVID-19: - Component 1 (Strengthening good governance and sustainable management of fisheries): There is good progress by the various entities of the Ministry of Fisheries and Maritime Economy (MPEM) in strengthening the management framework for the fisheries sector, with tangible results such as the return of the octopus stock to sustainable levels, an ongoing reflection on the development strategy for the fisheries sector from 2020 onwards, and the imminent implementation of the electronic fishing journal. Registration of canoes has resumed but slowed down due to COVID-19. - Component 3 (Nouakchott Fish Market Rehabilitation Project): Work on the first package (security and lighting) is now completed and fully accepted. For the second package (water and sanitation networks), work has begun and a sub- contractor has finally been retained for the offshore work (wastewater treatment plant sea outlet). Pipe network is well advanced but the other components, namely the treatment plant and the sea outlet, have not even started because of the COVID-19 mitigation measures. The remainder of the work represents approximately US$3million+ in contracts signed but whose execution is slowed down or stopped due to the COVID-19 pandemic. The pandemic is impacting the implementation schedule in three ways: 1) slower progress of the work due to curfew/closing of construction sites; 2) restriction on the international movement of people (foreign contractors, such as the Tunisian company recruited for the sea outlet, can no longer access the site); and 3) restriction on the international movement of goods (order for wastewater treatment plant component on standby). To sum up, the construction site suffers from a delay now estimated at a minimum of six months, which could prove longer as the COVID-19 pandemic continues and mitigation measures are strengthened. 6. For Guinea, both the ratings for the Progress towards achievement of PDO and Overall Implementation Progress remain Moderately Satisfactory but at risk from COVID-19: - Component 1 (Strengthening good governance and sustainable management of fisheries): The fisheries management framework in Guinea has improved significantly with the effective implementation of the institutional reform of the Ministry of Fisheries, Aquaculture and Maritime Economy (MPAEM), allowing the development and evaluation of annual fisheries management plans based on findings from scientific research and overseen by equipped MPAEM’s central and decentralized departments. The mobilization of an international technical assistance (i) to strengthen the capacities of MPAEM’s departments and (ii) to support the finalization of regulatory reforms has been slowed by COVID-19 international travel restrictions. The Ministry also plans to develop a long-term sectoral strategy and investment plan. - Component 2 (Reducing Illegal, Unreported, and Unregulated (IUU) Fishing), the fisheries surveillance system has been significantly strengthened with (i) the operationalization and sustainable financing for the satellite/ Vessel Monitoring System (VMS) able to monitor industrial and semi-industrial vessels and (ii) the regularity and efficiency of law enforcement patrols at sea and on land for artisanal and industrial fisheries compliance. - Component 3 (Increasing Contribution of the Fish Resources to the Local Economy): All the works for (i) the construction of the new Koukoude landing site, (ii) the fish smoking facility, and (iii) the improvement of access to the targeted site The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) have started. However, restrictions on the transportation of people and goods due to the COVID-19 crisis caused delays in the work, currently estimated at around 6 months but possibly longer as the COVID-19 crisis lasts, and restrictions possibly toughen up. The construction of landing site and the smoking center have progressed, but additional work had to be undertaken related to water supply. The access road works have suffered the most delays and measures are being taken to minimize the impact of the current rainy season on the works. The implementation of the alternative income- generating activity (IGA ) program focusing on youth and women groups (aquaculture, beekeeping, production of firewood for smoking facilities, plastic recycling, dyeing and saponification) has started with support of local Non- Governmental Organizations (NGOs) but has been slowed down by the restriction of COVID-19 impacting the organization of community trainings. C. Rationale for Restructuring 7. The proposed restructuring addresses an extension request from the Borrowers. On June 29, 2020, the Ministry of Economy and Industry of the Islamic Republic of Mauritania requested a 1-year no-cost extension of the closing date of the IDA (IDA- D0390) and GEF (TF-19089) grants that together support the Project’s activities. This request is among the actions agreed during the April 2020 (remote) Implementation Support Mission. On July 10, 2020, the Ministry of Planning and Economic Development of the Republic of Guinea requested a 1-year extension of the closing date of the IDA (IDA-D0400) credit and GEF grant (TF-A3530) that together support the Project’s activities in Guinea. This extension was discussed during the June 2020 (remote) Implementation Support Mission. 8. The main motivation of these requests is to address the impact of the COVID-19 pandemic on implementation and related delays (primarily on infrastructure and civil work under Component 3). These delays are currently estimated at 6 months but could very well increase since the COVID-19 is lasting and might call for a toughening up of those mitigation measures that are directly impacting construction work (e.g., travel restrictions, gathering restrictions, closing of construction sites). This no-cost extension would also bring the closing date of all the Project's financing instruments in alignment (since Sierra Leone’s approved restructuring led to a closing date of December 31, 2021 for this country). 9. The COVID-19 crisis has strongly impacted the fishing communities of Mauritania and Guinea and the completion of all project activities planned during the 1-year extension should help strengthen the resilience of these coastal communities: - In Guinea, measures taken by the Government to prevent the dissemination of COVID-19 impact have had several impacts on the implementation schedule, in particular 1) national travel restrictions between Conakry and project site, which have impacted the schedule of contractors for infrastructure works and NGOs for community activities, 2) International travel restriction that delayed the mobilization of technical assistance to support the implementation of the Ministry of Fisheries’ reform. These restrictions also had significant impacts on the activities of fishermen in the targeted area with the disruption of the fish supply chain between Koukoudé and Conakry. Activities planned during the 1-year extension will support to increase the coastal communities’ resilience by (i) establishing strong community management system for the landing site and smoking facility and (ii) contributing to diversify their income by the development of alternative income generating activities. - In Mauritania, the COVID-19 mitigation measures (containment, travel and gathering restrictions) have also impacted the Project’s implementation, both Component 1 (e.g., domestic travel and gathering restrictions slowing down the second phase of the canoe registration) and Component 2 (e.g., construction grinding down to a halt due to curfew/closing of work site, limited access of foreign contractors, and difficulty with importing components). The COVID- 19 pandemic and related mitigation measures also had significant impact on the fisheries sector, causing important disruptions in the value chain (i.e., shorter working days due to curfews, closed landing sites, issues with transporting catch to markets, drop in exportations) and hitting hard the artisanal fisheries segment (where lay-offs have already started). Granting an extension would provide the space to complete the renovation of the Marché au Poisson, which is important for job and food security. II. DESCRIPTION OF PROPOSED CHANGES The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) 10. The proposed restructuring is in repose to an extension request from the Borrowers to address the impact of the COVID-19 pandemic on implementation. As discussed above, proposed changes are as follows: - One-year no-cost extension (until December 31, 2021) of the closing date of the IDA (IDA-D0400) credit and GEF grant (TF-A3530) that together support the Project’s activities in Guinea; - One-year no-cost extension (until December 31, 2021) of the closing date of the IDA (IDA-D0390) and GEF (TF-19089) grants that together support the Project’s activities in Mauritania. III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ 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 ✔ The World Bank West Africa Region Fisheries Program AF Guinea, Sierra Leone & Liberia (P126773) Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D0390 Effective 15-Dec-2020 31-Dec-2021 30-Apr-2022 IDA-D0400 Effective 15-Dec-2020 31-Dec-2021 30-Apr-2022 TF-19089 Effective 15-Dec-2020 31-Dec-2021 30-Apr-2022 TF-A3530 Effective 01-Mar-2021 31-Dec-2021 30-Apr-2022 01-Mar-2019, 23- TF-A3532 Closed 01-Mar-2018 Aug-2019 TF-A3533 Effective 01-Mar-2021 31-Dec-2021 .