The World Bank Madagascar Pilot Program for Climate Resilience Phase I (P158816) REPORT NO.: RES31952 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MADAGASCAR PILOT PROGRAM FOR CLIMATE RESILIENCE PHASE I APPROVED ON JUNE 29, 2017 TO THE REPUBLIC OF MADAGASCAR SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Mark R. Lundell Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Meskerem Brhane Task Team Leader: Michel Matera The World Bank Madagascar Pilot Program for Climate Resilience Phase I (P158816) ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement (French Development Agency) AfDB African Development Bank BNCCC Bureau National pour la Coordination du Changement Climatique BNGRC Bureau National de Gestion des Risques et des Catastrophes (National Disaster Risk Management Bureau) Cat DDO Development Policy Loan with a Catastrophe Deferred Drawdown Option CIF Climate Investment Funds CPGU Cellule de Prévention et Gestion des Urgences (Emergency Prevention and Management Unit) DRM Disaster Risk Management FM Financial Management GCF Green Climate Fund GoM Government of Madagascar GRS Grievance Redress Service MFB Ministry of Finance and Budget M&E Monitoring and Evaluation PDO Project Development Objective PIU Project Implementation Unit PPCR Pilot Program for Climate Resilience SPCR Strategic Plan for Climate Resilience STEP Systematic Tracking of Exchange in Procurement TA Technical Assistance ToR Terms of Reference The World Bank Madagascar Pilot Program for Climate Resilience Phase I (P158816) BASIC DATA Product Information Project ID Financing Instrument P158816 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 29-Jun-2017 31-Dec-2018 Organizations Borrower Responsible Agency The Republic of Madagascar Cellule de Prevention et Gestion des Urgences Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 1.50 Total Financing 0.00 Financing Gap 0.00 DETAILS -NewFin3 Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to support Madagascar in the formulation of a Strategic Program for Climate Resilience (SPCR) and the development of a programmatic multi-sector and climate resilient investment plan, and to establish the enabling environment for its implementation. OPS_TABLE_PDO_CURRENTPDO The World Bank Madagascar Pilot Program for Climate Resilience Phase I (P158816) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A5362 29-Jun-2017 18-Jul-2017 18-Jul-2017 31-Dec-2018 1.50 .41 1.09 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No A. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The project, benefiting from a USD 1.5 million grant from the Climate Investment Funds (CIF) under the Pilot Program for Climate Resilience (PPCR), was approved on June 29, 2017 and signed by the Ministry of Finance and Budget (MFB) on August 2, 2017. 2. The Strategic Program for Climate Resilience, which constitute a key project deliverable, was developed by the Government and submitted to CIF in November 2017. It was successfully endorsed by the PPCR sub-committee on December 12, 2017. 3. The last Implementation Status and Results Report (ISR) in June 2018 rated the Project as moderately satisfactory on progress towards achievement of the Project Development Objective (PDO) and moderately satisfactory towards implementation progress. There are no overdue audit reports for this project. 4. As noted earlier, the project implementation experienced some delays at project start due to lengthy administrative procedures for the designation of budgetary signatories, creation of bank account and disbursement. Additional delays were experienced due to a need to reassess PPCR Phase 1 priority activities following the request from the Ministry of Finance and Budget for a Cat DDO operation. 5. Project activities are now progressing well and are fully aligned with the preparation of the Cat DDO. Main on- going activities include: a. Diagnostic on the policy, institutional and legal DRM framework in Madagascar; b. Drafting of the three Decrees which regulates the National Disaster Risk Management Law (Law No. 2015- 031) for improved institutional and decentralized arrangements for disaster preparedness and response; c. Study on the Economic and Fiscal Impact of Disasters in Madagascar, which will inform the development of a National Disaster Risk Financing Strategy and design of the National Disaster Management Fund; The World Bank Madagascar Pilot Program for Climate Resilience Phase I (P158816) d. Development of the technical guidelines for mainstreaming DRM in Regional and Urban land-use planning instruments; e. Development of updated building norms for cyclone proofing public buildings; f. Development of climate change scenarios and technical Assistance to the Met Office; g. Targeted DRM and Climate Resilience training for priority sectors. 6. A detailed workplan has been developed and approved for the remaining 12-month implementation period. B. DESCRIPTION OF PROPOSED CHANGES This Restructuring Paper recommends a 12 months extension of the project closing date until December 31, 2019 to provide adequate time to implement PPCR (Phase 1) activities while supporting the implementation of the DRM and Climate Resilience related policy reforms proposed as part of Madagascar Cat DDO under preparation. The extension will facilitate a complete implementation of all project activities planned for PPCR Phase 1 and support the Government with the development and implementation of key climate resilience reforms under the Cat DDO. Full disbursement is expected prior to the proposed new project closing date. I. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ The World Bank Madagascar Pilot Program for Climate Resilience Phase I (P158816) Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A5362 Effective 31-Dec-2018 31-Dec-2019 30-Apr-2020 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 0.00 0.00 2018 900,000.00 500,000.00 2019 600,000.00 1,000,000.00 2020 0.00 0.00 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00