Document of The World Bank OFFICIAL USE ONLY Report No: 67704-RO RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HAZARD RISK MITIGATION & EMERGENCY PREPAREDNESS PROJECT LOAN 4736 RO AND GEF TF 053472 BOARD APPROVAL DATE May 20, 2004 IN THE INITIAL AMOUNT OF LOAN US$ 150,000,000; GRANT US$7,000,000 AND A RESTRUCTURED AMOUNT OF 1 LOAN US$143,324,463; GRANT US$7,000,000 TO ROMANIA April 13, 2012 Sustainable Development Department South Caucasus Country Department Europe and Central Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. 2 ABBREVIATIONS AND ACRONYMS EMIS Emergency Management Information System GEF Global Environment Facility PDO Project Development Objective TMF Tailings Management Facility 3 Regional Vice President: Philippe Le Houérou, ECA VP Country Director: Peter C. Harrold, ECCU5 Acting Sector Manager / Director: Benoit Blarel/Laszlo Lovei, ECSS6 Task Team Leader: Gabriel Ionita, ECSS1 4 ROMANIA — HAZARD RISK MITIGATION & EMERGENCY PREPAREDNESS PROJECT P075163 LOAN 4736 RO AND GEF TF 053472 Restructuring Paper 1. Proceeds for Romania, Hazard Risk Mitigation and Emergency Preparedness Project, Loan 4736 RO and GEF Grant 053472, P075163 will be reallocated as follows: Category of Expenditure Allocation % of Financing Current Revised Current Revised Current Revised (1)Works for: 100% of foreign 100% of foreign (a) Part B of the Project 40,306,000 40,306,000 expenditures expenditures and (b) Part C of the Project 69,594,769 69,594,769 and 78% of 78% of local (c) Part D of the Project 2,333,000 2,333,000 local expenditures (d) Part E of the Project expenditures incurred before (i) Part E.1 0 0 (incurred before March 7, 2007, 78% (ii) Part E.2 0 0 March 7, 2007) of all expenditures (ii) Part E.3 26,646 26,646 78% of all (incurred before the expenditures date of this thereafter amendment), and 100% of all expenditures thereafter (2) Goods for: 100% of foreign 100% of foreign (a) Part A of the Project 8,904,000 8,904,000 expenditures, expenditures, 100% (b) Part C of the Project 367,500 352,920 100% of local of local (c) Part E of the Project expenditures (ex expenditures (ex (i) Part E.1 69,091 69,091 factory cost) and factory cost) and (ii) Part E.2 134,000 134,000 75% for local 75% for local (iii) Part E.3 246,241 246,241 expenditures for expenditures for (iv) Part E.4 23,000 23,000 other items other items procured (d) Part D of the Project 2,000,000 2,000,000 procured locally locally (incurred (incurred before before March 7, March 7, 2007); 2007); 75% of all 75% of all expenditures expenditures incurred before the 5 Category of Expenditure Allocation % of Financing Current Revised Current Revised Current Revised incurred date of this thereafter amendment; and 100% of all expenditures incurred thereafter (3) Technical Services for Part 0 0 100% of foreign expenditures C.5 of the Project and 75% of local expenditures (4) Consultants' services, 75% of 75% of expenditures including audit and training, for expenditures incurred by local (a) Part A of the Project 3,300,000 3,300,000 incurred by consultants and 85% (b) Part B of the Project 4,536,000 4,536,000 local consultants of foreign (c) Part C of the Project 5,853,369 5,807,949 and 85% of consultants before (d) Part E of the Project foreign the date of this (i) Part E.1 100,000 100,000 consultants amendment, and (ii) Part E.2 2,406,000 2,406,000 100% of all (iii) Part E.3 28,875 28,875 expenditures (e) Part D of the Project 313,463 313,463 thereafter (5) Operating costs for: 75% of all expenditures (a) MAI PMU 100,909 100,909 75% incurred before the (b) MTCT PMU 272,000 272,000 75% date of this (c) MEWM PMU 1,927,600 1,987,600 75% amendment and (d) NAMR PMU 482,000 482,000 75% 100% of all expenditures thereafter (6) Unallocated for: (a) Part A of the Project 0 0 (b) Part B of the Project 0 0 (c) Part C of the Project 0 0 (d) Part D of the Project 0 0 Sub Total 143,324,463 143,324,463 2. Brief summary of project implementation progress. The Project implementation progressed in the last six months towards meeting in full its development objectives (PDO) under all four components. So far, the project has achieved seismic retrofitting of 40 public buildings, flood protection at all ten project sites, enhancing the safety of six large and small dams, and safety of six tailings management facilities (TMF) at three mines. Thus, all output targets set under component B (seismic risk reduction), component C (flood and landslides risk reduction), and component D (Risk Reduction of Mining Accidents in Tisza Basin) have been met and even exceeded. Under component A (Strengthening of Emergency Management and Risk Financing Capacity), the roll-out of the Emergency Management Information System (EMIS) is well underway and its installation in all 48 locations envisaged (exceeding the target of at least 23 locations) would be completed by April 20, 2012, as planned. Seismic retrofitting of five additional public buildings is underway and should be completed by the current Closing Date (June 30, 2012). Installation of the landslides monitoring equipment has been completed and 6 data collection will start soon, to enable finalization of the monitoring manual and hand-over of the equipment and operational guidelines to the relevant public authorities in charge with further monitoring activity. Rehabilitation works at Dridu Dam are being completed and the hand over is scheduled for mid-April 2012. 3. The proposed reallocation is necessary to increase the amount available for operational expenditures under component C until project closing. 7