The World Bank
Cities and Climate Change (P123201)
REPORT NO.: RES33229
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
CITIES AND CLIMATE CHANGE
APPROVED ON APRIL 3, 2012
TO
REPUBLIC OF MOZAMBIQUE
URBAN, DISASTER RISK MANAGEMENT, RESILIENCE, AND LAND GLOBAL PRACTICE
AFRICA
Regional Vice President: Hafez M. H. Ghanem
Country Director: Mark R. Lundell
Regional Director: Ede Jorge Ijjasz-Vasquez
Practice Manager: Meskerem Brhane
Task Team Leader: Bontje Zaengerling, André Herzog, Michel
Matera
The World Bank
Cities and Climate Change (P123201)
ABBREVIATIONS AND ACRONYMS
AIAS Administration for Water and Sanitation Infrastructure
AF Additional Financing
IDA International Development Association
IFR Interim Financial Report
ISR Implementation Status and Results Report
KfW German Development Bank
MAEFP Ministry of State Administration and Public Function
PDO Project Development Objective
PPCR Pilot Program for Climate Resilience
SCF Strategic Climate Fund
TF Trust Fund
The World Bank
Cities and Climate Change (P123201)
BASIC DATA
Product Information
Project ID Financing Instrument
P123201 Investment Project Financing
Original EA Category Current EA Category
Partial Assessment (B) Partial Assessment (B)
Approval Date Current Closing Date
03-Apr-2012 31-Dec-2019
Organizations
Borrower Responsible Agency
Ministry of State Administration and Public
Republic of Mozambique Function,Administration for Water and Sanitation
Infrastructure
Project Development Objective (PDO)
Original PDO
The PDO is to strengthen municipal capacity for sustainable urban infrastructure provision and environmental
management which enhancere siliency to climate related risks.
Current PDO
The PDO is to strengthen institutional capacity for local revenue enhancement and land use management in targeted
municipalities, and to enhance climate resilience in the coastal cities of Beira and Maputo.
OPS_TABLE_PDO_CURRENTPDO
Summary Status of Financing
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IDA-50660 03-Apr-2012 04-May-2012 18-Jul-2012 31-Dec-2019 120.00 104.74 6.26
TF-16580 18-Nov-2014 18-Nov-2014 07-Apr-2015 31-Dec-2019 9.25 9.19 .06
TF-16486 23-Oct-2014 18-Nov-2014 07-Apr-2015 31-Dec-2019 6.50 .14 6.36
The World Bank
Cities and Climate Change (P123201)
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING
1. The Project was approved with a Credit from the International Development Association (IDA) in the amount of
USD 120 million on April 3, 2012, declared effective on July 18, 2012, and is currently scheduled to close on December
31, 2019. An Additional Financing (AF) of USD 15.75 million from the Strategic Climate Fund, under the Pilot Program for
Climate Resilience (SCF-PPCR), for supplementary green infrastructure works along the Chiveve river in the downtown
area of Beira was approved by the Board on October 23, 2014, and declared effective on April 7, 2015. These green
infrastructure works were designed with parallel financing from the German Cooperation/German Development Bank
(KfW) in the amount of EUR 15 million and under the umbrella of a broader effort to rehabilitate the Chiveve River.
2. As of November 30, 2019, the project disbursement rate under the IDA credit reached 94 percent and the
disbursement rate under the financing from SCF-PPCR Disbursement was 58 percent. The Implementation Status and
Results Report (ISR) from October 25, 2019, rated the Project as satisfactory on both progress towards achievement of
the Project Development Objective (PDO) and overall implementation progress. The current implementation status
under the two components is as follows:
3. Component 1 (implemented by the Ministry of State Administration and Public Function - MAEFP) has completed
all works financed under the Municipal Performance Grants, except for a small road rehabilitation in Chimoio municipality
that is expected to be completed by December 15, 2019. A total of 303,480 people in 20 cities were provided with
improved urban living conditions thanks to, among others, the rehabilitation of over 69 kilometers of urban roads and
construction of 36 improved community water points. The planned activities under the Technical Assistance to
participating municipalities have also been completed resulting in significant improvements in municipal own-source
revenue, territorial planning, and land management. Key achievements include an increase of 209% from 2011 to 2018
in aggregate municipal own-source revenues and an increase of 555% from 2012 to 2019 in aggregate number of
properties in municipal property tax cadasters in participating cities. Most planned activities to strengthen central
agencies have also been completed, except for the publication of a report on lessons learned on strengthening municipal
financing, urban planning and land management, and the organization of a round table on a potential national urban
policy that is planned for early December 2019. However, the Government decided to cancel a technical assistance to
improve urban land use planning documents and risk mapping for selected municipalities in mid-2018 given the municipal
electoral cycle and the need to better coordinate this activity between MAEFP and the Ministry for Land, Environment,
and Rural Development (MITADER).
4. Component 2 (implemented by the Administration for Water and Sanitation Infrastructure – AIAS) has completed
key activities under IDA financing: the stormwater drainage rehabilitation works in Beira were completed in July 2018,
the priority stormwater drainage works in the Polana Caniço area of Maputo were completed in early November 2019,
and the sanitation and drainage master plans for the Maputo metropolitan area and Beira were delivered. Overall, the
drainage rehabilitation works in Beira and Maputo directly benefitted over 355,000 people by reducing flooding for an
urban area of over 3,300 ha. Especially the rehabilitated storm water drainage system in Beira provided significant
benefits to the population during the extreme hydrometeorological events in January and March 2019. The remaining
activities under IDA financing are on track to being completed before the current project closing date, including a
The World Bank
Cities and Climate Change (P123201)
technical assistance to support the commissioning of the rehabilitated stormwater drainage system in Beira,
complementary emergency works for the rehabilitation of the stormwater drainage system in Beira, and the purchase of
equipment for operation and maintenance of drainage systems in beneficiary cities. However, the green infrastructure
works in Beira (financed under SCF-PPCR AF and with parallel financing from the German Cooperation/KfW) will extend
beyond the current project closing date. The works, which started in June 2018, were originally planned to be completed
in early July 2020, but due to the devastating impacts of Cyclone Idai1 works progress was stalled in March 2019 and
construction activities interrupted for 80 days. While considerable progress has been made over the last few months
based on a revised work plan, physical progress of the works stands at 40 percent as of October 2019. In addition, some
shortcomings in the original design of the green urban infrastructure were identified that require additional/revised
detailed designs for some buildings and landscaping and imply a cost increase of the works. An updated implementation
plan has been agreed with the client to achieve their completion in October 2020.
5. Following the findings of the latest implementation support mission in September 2019, the Government of
Mozambique requested an extension of the closing date of the SCP-PPCR Grant and Loan until June 30, 2020, and
reallocation of SCP-PPCR Loan proceeds to finance operation of the Project Implementation Unit at AIAS during the
additional six months, in order to avoid a financing gap and ensure successful completion of the green urban
infrastructure works in Beira (letters dated October 10, 2019, and November 25, 2019). AIAS presented a revised detailed
construction plan to the Bank in support of this request on November 11, 2019. The Government also requested
cancellation of uncommitted funds under the IDA Credit, for which the closing date will remain December 31, 2019, in
order to reallocate them to other priorities in the portfolio that emerged in the wake of cyclones Idai and Kenneth (letter
dated October 17, 2019).
II. DESCRIPTION OF PROPOSED CHANGES
A. Summary of proposed changes
6. This Restructuring Paper recommends the following changes:
(a) Extension of the closing date of SCF-PPCR Grant (TF-16580) and Loan (TF-16486) by six months to June 30,
2020;
(b) Cancellation of XDR 730,000 under the IDA Credit (IDA-50660);
(c) Reallocation between disbursement categories under the SCF-PPCR Loan (TF-16486) and under the IDA
Credit (IDA-50660);
(d) Dropping of two intermediate indicators in the project results framework to reflect the cancellation of the
technical assistance on urban land use instruments under Component 1.
B. Extension of PPCR closing date
1Cyclone Idai hit the Province of Sofala in mid-March 2019, affecting more than 1.5 million people and causing 603 fatalities. The city
of Beira, with a population of over 530,000, was hit hard by the cyclone that brought wind speeds above 175km/h as well as torrential
rainfall and storm surges. In addition to massive destruction to the infrastructure and buildings in the city more broadly due to strong
winds and flooding, the cyclone also severely affected the green urban infrastructure works obliterating the contractor’s camp site
(offices, accommodation, equipment) and partially damaging the construction works in progress.
The World Bank
Cities and Climate Change (P123201)
7. The Government of Mozambique requested an extension of the closing dates of the SCF-PPCR Grant (TF-16580)
and Loan (TF-16486) by six months from December 31, 2019, to June 30, 3030, in order to avoid a financing gap and
ensure the successful completion of the green urban infrastructure works in Beira until October 2020. The remaining SCF-
PPCR funds are expected to be fully used for works execution until June 30, 2020, while parallel financing from the
German Cooperation/KfW will be used to finance the remaining works from July to October 2020. The IDA Credit (IDA-
50660) will close as planned on December 31, 2019. This is the second extension of the closing date for the SCF-PPCR
funds and the third extension of the overall project closing date. The project closing date had been extended for 12
months from December 15, 2017, to December 15, 2018, as part of the AF for the SCF-PPCR funds in 2014, and for another
12 months to December 31, 2019, as part of a restructuring following the mid-term review that was approved in
November 2017. There are no overdue audit reports or Interim Financial Reports (IFR) for neither Component 1 nor
Component 2.
C. Cancellation under IDA Credit
8. The Government of Mozambique requested to cancel XDR 730,000 of uncommitted funds under the IDA Credit
(IDA-50660) in order to reallocate these funds to other priorities in the portfolio to better address the impact of Cyclones
Idai and Kenneth. The cancellation of this amount will not affect the activities of the Project as all funds necessary to
finance the remaining activities under the IDA Credit until its closing on December 31, 2019, have already been
committed.
D. Reallocation between Disbursement Categories
9. With regards to the SCF-PPCR Loan (TF-16486), the Government has requested to reallocate funds in the amount
of USD 529,000 from Category 1 to Category 2 (operating costs). Until now, all operating costs have been financed under
the IDA Credit. Since the IDA Credit will close on December 31, 2019, the operation of the Project Implementation Unit
at AIAS to accompany the implementation of the the green urban infrastructure works in Beira until June 30, 2020, will
need to be financed under the SCF-PPCR Loan.
10. With regards to the IDA Credit (IDA-50660), funds have to be reallocated due to the cancellation requested by
the Government and to take into account the actual amounts already disbursed and committed under the various
categories. The new allocations are as follows: XDR 14,321,005 under Category 1 (Technical Assistance to municipalities
and central agencies under Component 1), XDR 54,461,800 XDR under Category 2 (Component 2) and XDR 8,612,152
under Category 3 (Municipal Performance Grants under Component 1).
E. Revision of Project Results Framework
11. It is proposed to drop the two intermediate indicators under Component 1 that measure the “number of
municipalities with improved land use plans (including natural hazard maps) in place” and the “number of municipalities
with detailed urbanization plans for selected risk-prone areas” due to the cancellation of the technical assistance to
improve urban land use planning documents and risk mapping in selected municipalities, which was supposed to deliver
these outputs. The Government of Mozambique decided to cancel this technical assistance in mid-2018 due to a number
of reasons, including the upcoming municipal elections in fall 2018 that would have disrupted the implementation of the
technical assistance activities and the need to better coordinate the scope of this activity between MAEFP and MITADER.
The Government proposed to include this activity under the proposed Mozambique Urban Development and
Decentralization Project (P163989) instead.
The World Bank
Cities and Climate Change (P123201)
III. SUMMARY OF CHANGES
Changed Not Changed
Results Framework ✔
Loan Closing Date(s) ✔
Cancellations Proposed ✔
Reallocation between Disbursement Categories ✔
Disbursement Estimates ✔
Implementation Schedule ✔
Implementing Agency ✔
DDO Status ✔
Project's Development Objectives ✔
Components and Cost ✔
Disbursements Arrangements ✔
Overall Risk Rating ✔
Safeguard Policies Triggered ✔
EA category ✔
Legal Covenants ✔
Institutional Arrangements ✔
Financial Management ✔
Procurement ✔
Other Change(s) ✔
Economic and Financial Analysis ✔
Technical Analysis ✔
Social Analysis ✔
Environmental Analysis ✔
IV. DETAILED CHANGE(S)
OPS_DETAILEDCHANGES_LOANCLOSING_TABLE
The World Bank
Cities and Climate Change (P123201)
LOAN CLOSING DATE(S)
Original Revised Proposed Proposed Deadline
Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal
Applications
15-Dec-2018, 31-
IDA-50660 Effective 15-Dec-2017
Dec-2019
TF-16486 Effective 15-Dec-2018 31-Dec-2019 30-Jun-2020 30-Oct-2020
TF-16580 Effective 15-Dec-2018 31-Dec-2019 30-Jun-2020 30-Oct-2020
OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE
CANCELLATIONS
Value Reason
Current Cancellation New
Ln/Cr/Tf Status Currency Date of for
Amount Amount Amount
Cancellation Cancellation
BORROWER'
S REQUEST
IDA-50660- Disburs
XDR 78,200,000.00 730,000.00 23-Oct-2019 77,470,000.00 FOR
001 ing
COUNTRY
REASONS
BORROWER'
S REQUEST
TF-16486- Effectiv
USD 6,500,000.00 0.00 23-Oct-2019 6,500,000.00 FOR
001 e
COUNTRY
REASONS
BORROWER'
S REQUEST
TF-16580- Disburs
USD 9,250,000.00 0.00 23-Oct-2019 9,250,000.00 FOR
001 ing
COUNTRY
REASONS
OPS_DETAILEDCHANGES_REALLOCATION _TABLE
REALLOCATION BETWEEN DISBURSEMENT CATEGORIES
Financing %
Current Allocation Actuals + Committed Proposed Allocation
(Type Total)
Current Proposed
IDA-50660-001 | Currency: XDR
iLap Category Sequence No: 1 Current Expenditure Category: GDS, WKS, CS, non CS, TRG. OC
12,789,781.00 14,321,058.83 14,321,005.00 100.00 100.00
The World Bank
Cities and Climate Change (P123201)
iLap Category Sequence No: 2 Current Expenditure Category: GDS, WKS, CS, non CS, TRG. OC
55,400,000.00 48,331,466.96 54,461,800.00 100.00 100.00
iLap Category Sequence No: 3 Current Expenditure Category: GDS, WKS, CS, non CS financed Munci
9,935,176.00 8,612,103.04 8,612,152.00 100.00 100.00
iLap Category Sequence No: 4 Current Expenditure Category: PPF REFINANCING
75,043.00 75,042.88 75,043.00 0
Total 78,200,000.00 71,339,671.71 77,470,000.00
TF-16486-001 | Currency: USD
iLap Category Sequence No: 1 Current Expenditure Category: GDS, WKS, Services Prt B (vi)
6,500,000.00 219,793.08 5,971,000.00 100.00 100.00
iLap Category Sequence No: 2 Current Expenditure Category: GDS, Services, TRG. OC Prt B (v)
0.00 0.00 529,000.00 100.00 100.00
Total 6,500,000.00 219,793.08 6,500,000.00
OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE
DISBURSEMENT ESTIMATES
Change in Disbursement Estimates
Yes
Year Current Proposed
2012 0.00 0.00
2013 7,179,997.53 7,179,997.53
2014 11,862,381.00 11,862,381.00
2015 2,533,782.55 19,126,070.41
The World Bank
Cities and Climate Change (P123201)
2016 12,173,838.92 23,375,993.83
2017 24,000,000.00 14,530,234.85
2018 31,700,000.00 19,441,870.32
2019 29,500,000.00 11,893,642.11
2020 16,800,000.00 15,879,810.95
2021 0.00 2,420,000.00
The World Bank
Cities and Climate Change (P123201)
.
Results framework
COUNTRY: Mozambique
Cities and Climate Change
Project Development Objectives(s)
The PDO is to strengthen institutional capacity for local revenue enhancement and land use management in targeted municipalities, and to enhance
climate resilience in the coastal cities of Beira and Maputo.
Project Development Objective Indicators by Objectives/ Outcomes
RESULT_FRAME_TBL_PDO
Indicator Name DLI Baseline End Target
Strengthen institutional capacity for local revenue enhancement and land use management
People provided with improved urban living conditions (CRI,
0.00 418,000.00
Number)
People provided with improved urban living conditions -
0.00 213,180.00
Female (RMS requirement) (CRI, Number)
Number of municipalities that achieved target increases in own-
0.00 14.00
source revenues (Number)
Percentage annual increases in aggregate municipal own-source
2.00 100.00
revenues (Percentage)
Number of municipalities with operational land register in place
0.00 16.00
(Amount(USD))
Enhance climate resilience in the coastal cities of Beira and Maputo
Area in Beira and Maputo benefitting from reduced flooding or
0.00 1,140.00
erosion (Hectare(Ha))
The World Bank
Cities and Climate Change (P123201)
RESULT_FRAME_TBL_PDO
Indicator Name DLI Baseline End Target
People provided with improved urban living conditions (CRI,
0.00 418,000.00
Number)
People provided with improved urban living conditions -
0.00 213,180.00
Female (RMS requirement) (CRI, Number)
PDO Table SPACE
Intermediate Results Indicators by Components
RESULT_FRAME_TBL_IO
Indicator Name DLI Baseline End Target
Component 1 - Strengthening the municipal sector
Number of indirect project beneficiaries (Number) 0.00 4,824,448.00
Component 1 - Number of municipalities with at least 20%
increase in revenues from municipal property tax (IPRA) 0.00 14.00
(Number)
Component 1 - Percentage increase in aggregate number of
0.00 340.00
properties in municipal IPRA cadastres (Percentage)
Roads rehablitated (CRI, Kilometers) 0.00 68.00
Roads rehabilitated - non-rural (CRI, Kilometers) 0.00 68.00
Component 1 - Improved community water points constructed
0.00 21.00
or rehabilitated under the project (Number)
Component 1 - Number of municipalities which have achieved at
least 70% financial execution of their annual Municipal 0.00 15.00
Performance Grant by December 31 (Number)
The World Bank
Cities and Climate Change (P123201)
RESULT_FRAME_TBL_IO
Indicator Name DLI Baseline End Target
Component 1 - Number of municipalities with improved land use
0.00 5.00
plans (including natural hazard maps) in place (Number)
Action: This indicator has been Marked for Deletion
Component 1 - Number of municipalities with detailed
0.00 2.00
urbanization plans for selected risk-prone areas (Number)
Action: This indicator has been Marked for Deletion
Component 2 - Enhancing resilience of strategic coastal cities
Number of indirect project beneficiaries (Number) 0.00 4,824,448.00
Component 2 - Number of drainage master plans completed for
0.00 2.00
strategic coastal cities (Number)
Component 2 - Beira - drainage channels rehabilitated to control
0.00 9.50
flood (Kilometers)
Component 2 - Maputo drainage channels rehabilitated to
0.00 1.60
control flood (Kilometers)
Roads rehablitated (CRI, Kilometers) 0.00 68.00
Roads rehabilitated - non-rural (CRI, Kilometers) 0.00 68.00
Component 2 (AF) - Urban area in Beira developed as green park
0.00 17.00
(Hectare(Ha))
Component 2 (AF) - Beira natural drainage courses improved and
0.00 4.00
protected (Kilometers)
Component 2 (AF) - Knowledge sharing activities to disseminate
green infrastructure in urban areas as key adaptation
0.00 4.00
investments which increase resilience to climate change impacts
(Number)
The World Bank
Cities and Climate Change (P123201)
IO Table SPACE
.
The World Bank
Cities and Climate Change (P123201)