The World Bank Agricultural Productivity and Diversification (P115886) REPORT NO.: RES45475 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AGRICULTURAL PRODUCTIVITY AND DIVERSIFICATION APPROVED ON MARCH 22, 2011 TO MINISTRY OF ECONOMY AND FINANCE AGRICULTURE AND FOOD AFRICA WEST Regional Vice President: Ousmane Diagana Country Director: Coralie Gevers Regional Director: Simeon Kacou Ehui Practice Manager/Manager: Chakib Jenane Task Team Leader(s): Erick Herman Abiassi The World Bank Agricultural Productivity and Diversification (P115886) I. BASIC DATA Product Information Project ID Financing Instrument P115886 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-Mar-2011 28-Feb-2021 Organizations Borrower Responsible Agency Ministere de l'Agriculture de l'Elevage de la Peche Ministry of Economy and Finance (MAEP) Project Development Objective (PDO) Original PDO The Project Development Objective of the Agricultural Productivity and Diversification Project (PADA) is to restore and improve productivity and value addition for selected value chains in the Recipient's territory. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-60130 14-Apr-2017 02-Jun-2017 28-Nov-2017 28-Feb-2021 45.00 36.78 11.89 IDA-48840 22-Mar-2011 07-Jun-2011 13-Mar-2012 30-Jun-2017 5.05 4.66 0 IDA-H6550 22-Mar-2011 07-Jun-2011 13-Mar-2012 30-Jun-2017 24.88 23.40 0 TF-99692 07-Jun-2011 07-Jun-2011 13-Mar-2012 31-May-2015 14.85 14.85 0 The World Bank Agricultural Productivity and Diversification (P115886) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES 1. The Additional Financing was approved on April 14, 2017 and became effective on November 28, 2017. The current closing date of the Credit is February 28, 2021. The Project Development Objective is to restore and improve productivity and value addition for selected value chains in the Recipient’s territory. The PDO Results Indicators are the following : (i) Number of direct project beneficiaries, 40 percent of whom are women; (ii) Quantities processed (milled rice, processed cashew and pineapple juicing); (iii) Quantities exported (cashew and pineapple); and (iv) Yields of rice, maize, pineapple and cashew (tons/ha) and fish (tons/ha/year). 2. As of January 31, 2021, project progress towards achievement of development objective was satisfactory and most of the PDO indicators have been achieved or are on track to be. Project direct beneficiaries stand at 458,312 (40.25 percent of whom are women) against an end of project target of 250,000. Quantities processed (milled rice, processed cashew and pineapple juicing) stand at 293,385 tons against an end of project target of 240,000 tons and quantities exported (cashew and pineapple) stand at 477,405 tons against an end of project target of 350,000 tons. While yields stand at 6.2 tons/ha for rice (against an end of project target of 5 tons/ha), 2.97 tons/ha maize (against an end of project target of 3 tons/ha), 72 tons/ha for pineapple (against an end of project target of 70 tons/ha), 0.81 tons/ha for cashew (against an end of project target of 0.8 tons/ha) and 6.5 tons/ha for fish (against an end of project 6 tons/ha). Concerning support for access to finance within the targeted beneficiaries, the project has successfully funded through the matching grant and competitive funds about 317 sub projects (covering rice, fish farming, cashew and pineapple value chains), of which 242 microprojects (against an end project target of 180), 52 innovative projects (against an end project target of 52), and 23 small and medium-level projects (against an end project target of 20). 3. However, the Covid-19 pandemic severely hampered the project implementation and affected the project larger impact by restricting the movement of goods and people in Benin. Important quantity of produce was lost because fresh fruits like pineapples were wasted for lack of cold chains storage facilities before they could be exported overseas. There was a 37 percent drop in pineapple exports between February and March 2020 due to the suspension of air freight and a fall of more than 40 percent of fresh pineapple juice sales in the sub-region. Disbursement rate stood at 84.5 percent with US$11.89 million remaining to be disbursed as of February 15, 2021. 4. Financial and procurement management, as well as social and environment safeguards compliance are satisfactory. There is no pending audit report. Rationale for the Restructuring: 5. The country was among the first hit by the pandemic in Sub-Saharan Africa and as of February 15, 2021, Benin registered 5,143 positive cases including 65 deaths. The number of daily cases is growing and has reached 83 per day on average against 60 new positive cases per day in June 2020. The COVID-19 crisis is impacting Benin through both external and domestic transmission channels. Externally, the country is experiencing disruptions in trade and value chains notably high-value crops (e.g. pineapple), plus tighter financing conditions. Domestically, containment and mitigation measures were partial and short-lived. The World Bank Agricultural Productivity and Diversification (P115886) 6. The proposed restructuring is in response to the request from the Government of Benin through a letter dated February 11, 2020 to restructure the project and reallocate the undisbursed proceeds to support the government response and mitigate the disruption of the domestic and export perishable food supply chains induced by the COVID- 19 global pandemic. A realistic action plan was submitted, and the team endorsed to be implementable within the requested extension of seven months and should be able to absorb the remaining undisbursed balance of US$11.89 million. The restructuring is also the World Bank support to Benin to save livelihoods, preserve jobs, and ensure more sustainable business growth and job creation. 7. The government’s request related to Benin COVID-19 Response Plan consist in developing and installing a temperature-controlled agricultural logistics center that can respond to the COVID 19 challenges and handle exports / imports more systematically and in elaborating a management system of the built Cold Storage Infrastructure. Procurement for the construction is completed but there is not enough time for the completion of works. 8. The extension of closing date would enable the Recipient to complete all remaining activities under the project (including among others, completion of ongoing construction of warehouses and storage facilities, support to COVID 19 response and documentation of project achievements ) and hence ensure that credit proceeds are fully disbursed before closing date with positive impact on the livelihood of project beneficiaries. PROPOSED CHANGES 9. The main changes proposed in this restructuring are: (i) extension of initial project closing date for seven (7) months from February 28, 2021 to September 30, 2021 for IDA Credit 6030-BJ; (ii) reallocation of funds among disbursement categories of IDA Credit in order to complete the remaining activities. 10. There is no change in the project development objective, design, key performance indicators, and implementation arrangement. 11. During the extension period and in preparation for project closing, the Bank team will ensure that (i) the Government prepares their completion report, and takes measures or actions needed to ensure the susta inability of project outcomes; and (ii) the project team reviews the available project information and identifies any gaps or shortcomings that may need to be addressed in preparation for the ICR. II. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 30-Jun-2017, 09-Apr- IDA-48840 Closed 15-Dec-2016 2018 IDA-60130 Effective 28-Feb-2021 30-Sep-2021 30-Jan-2022 The World Bank Agricultural Productivity and Diversification (P115886) 30-Jun-2017, 09-Apr- IDA-H6550 Closed 15-Dec-2016 2018 31-May-2015, 30- TF-99692 Closed 15-Dec-2014 Nov-2015 REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-60130- GDS,WKS,OP,NC 001 S,CS excl 32,600,000.00 25,959,253.45 37,900,000.00 100.00 100.00 Currency: A1,C1(iii) EUR Sub grants Parts 9,300,000.00 3,844,166.89 4,000,000.00 100.00 100.00 A2B,B1A and C4i Total 41,900,000.00 29,803,420.34 41,900,000.00