The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) REPORT NO.: RES31645 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM PROJECT - SOLOMON ISLANDS FINANCED UNDER AN IDA FINANCING AND A GEF GRANT APPROVED ON DECEMBER 22, 2014 TO SOLOMON ISLANDS June 28, 2018 ENVIRONMENT & NATURAL RESOURCES GLOBAL PRACTICE EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Iain G. Shuker ABBREVIATIONS AND ACRONYMS Task Team Leader: Cary Anne Cadman 2 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) DLI Disbursement Linked Indicators ESMF Environmental and Social Management Framework FFA Forum Fisheries Agency FM Financial Management GEF Global Environment Facility IDA International Development Association M&E Monitoring and Evaluation MFMR Ministry of Fisheries and Marine Resources MOFT Ministry of Finance and Treasury PDO Program Development Objective PICs Pacific Islands Countries PROP Pacific Islands Regional Oceanscape Program POM Program Operations Manual PSU Program Support Unit PIU Project Implementation Unit RP Restructuring Paper SDR Special Drawing Rights SORT Systematic Operations Risk-Rating Tool STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance USD United States Dollar VDS Vessel Day Scheme 3 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Contents A. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ...................................................................................8 B. SUMMARY OF PROPOSED CHANGES ............................................................................................................................9 C. DESCRIPTION OF PROPOSED CHANGES .....................................................................................................................10 D. APPRAISAL SUMMARY ..................................................................................................................................................12 E. ORIGINAL AND PROPOSED RESULTS FRAMEWORK ...............................................................................................16 4 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) BASIC DATA Product Information Project ID Financing Instrument P151777 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-Dec-2014 30-Sep-2020 Organizations Borrower Responsible Agency Ministry of Finance & Treasury Ministry of Fisheries and Marine Resources Project Development Objective (PDO) Original PDO The objective of the Project is to strengthen the shared management of selected Pacific Island oceanic and coastal fisheries, and the critical habitats upon which they depend. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-55670 22-Dec-2014 29-Jan-2015 29-Apr-2015 30-Sep-2020 5.95 0 5.77 IDA-D0150 22-Dec-2014 29-Jan-2015 29-Apr-2015 30-Sep-2020 3.80 1.31 2.38 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No 5 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) vi The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) A. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Introduction 1. This Restructuring Paper (RP) responds to the Solomon Islands’ Ministry of Finance and Treasury (MOFT) request to restructure the Solomon Islands Pacific Islands Regional Oceanscape Program (PROP) Project financed with an International Development Association (IDA) Credit 5567, IDA Grant D015 and a Global Environment Facility (GEF) Grant TF018607. 2. The Level 2 restructuring exercise introduces a series of changes to reduce the scope of the project to ameliorate overall project performance, improve the potential for achievement of the Project Development Objective (PDO) and address implementation constraints experienced to date. Specific adjustments to the project design include: a. Dissolution of the DLI modality due to its lack of impact in this project; b. Excision of the additional sea patrols Monitoring, Control and Surveillance (MCS) activity and associated funding planned under Component 1 due to duplication of funding sources; c. Excision of the financing for the construction and outfitting of the proposed enforcement center in Honiara due to the absence of a suitable site for construction and the insufficient time available for completion of construction prior to closure; d. Reduction in the number of activities originally planned under Components 1 and 2 given the limited time left to execute the project; e. Modification to the project’s results framework to reflect the reduced scope of the project; and, f. Strengthening the PIU staffing complement to compensate for lack of implementation support that was to have been provisioned by the regional FFA PROP Project, but has to date failed to materialize. 3. The project was approved on December 22, 2014 and the IDA Financing and GEF Grant Agreement became effective on April 29, 2015. Project performance ratings since effectiveness are presented in Table 1 and illustrate the onset of the project’s problem status beginning as early as May 2016 due primarily to an incomplete staffing complement in the Ministry of Fisheries and Marine Resources (MFMR) Project Implementation Unit (PIU) which has resulted in extended delays in the onset of core project activities and weak management of the project’s environmental and social safeguards measures and monitoring and evaluation requirements. This constraint has been further exacerbated by the lack of program implementation support that was to be provisioned by the Forum Fisheries Agency (FFA) through its FFA PROP Project Program Support Unit (PSU) since inception; specifically, in the areas of procurement, safeguards and monitoring and evaluation. Ultimately, these constraints resulted in slow implementation and low disbursement. 8 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Table 1: Project Performance Ratings 4. This restructuring aims to ameliorate overall performance, facilitate efficient and effective delivery of project activities, and improve the potential for successful achievement of the Project Development Objective (PDO). It is important to note that this restructuring will only affect the IDA Grant funded activities. The original set of activities to be financed by the GEF Grant remain in the project as originally designed and are not altered in any form or substance. In addition, the budget envelope associated with all GEF Grant financed activities remains unchanged. B. SUMMARY OF PROPOSED CHANGES Proposed Changes 5. This Level 2 restructuring introduces several changes to the project design, including: a. Component, sub-components, activities and associated costs related to interventions financed by the IDA Grant to reflect the modified scope of the project. (Note: the GEF Grant financed activities and budget remain unchanged.) b. Disbursement estimates to reflect the projected disbursement schedule post-restructuring through to closure. c. Legal covenants to reflect modifications made to project implementation arrangements and activities1. d. Institutional arrangements given excision of the DLI modality and implementation support from the FFA PROP Project. 1Note: In addition to the legal covenants outlined at Section IV. Detailed Change(s), sub-heading Legal Covenants, the covenant to create a Project Steering committee has been deleted, as it no longer necessary. This has not been captured in the legal covenants due to system error, but the revised legal agreements accurately capture this change. 9 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) e. Implementation arrangements due to removal of the implementation support from the FFA PROP Project. f. Results framework to reflect changes in project scope and activities. g. Technical analysis to reflect modifications in scope of activities. h. Social analysis to reflect modifications in scope and nature of activities. i. Environmental analysis to reflect modifications in scope and nature of activities. j. Updates to the program’s safeguards instruments to reflect the revised scope of the project. k. Updates to the Program Operations Manual (POM) to reflect the modifications to the scope of activities and changes in institutional arrangements, including excision of the DLI modality and removal of the FFA PROP Project implementation support. C. DESCRIPTION OF PROPOSED CHANGES 6. A description of original and proposed changes to the project components and activities is presented in Table 2. The original and proposed project components and costs for IDA are presented in Table 3 and for GEF in Table 4. Table 2: Original and Proposed Project Components and Activities Original Proposed Component 1: Sustainable Management of Oceanic Fisheries (IDA financing) Carrying out a program of activities aimed at Carrying out a program of activities aimed at strengthening the management of the Pacific region’s strengthening the management of the Solomon purse seine and long-line tuna fisheries, such program Island’s purse seine and long line tuna fisheries, to include: such a program to include:  Strengthening the capacity of MFMR for  Design, construction and fit out of an sustainable management of shared tuna fisheries. enforcement center in Noro.  Carrying out a program of activities designed to  Roll out of a new Electronic Monitoring strengthen the institutional capacity of MFMR, System to monitor fish catch by up to 25 such program to include: (i) provision of goods Long Line Vessels. and technical assistance (TA) for institutional strengthening and review; (ii) organizational  Provision of goods and technical assistance development of MFMR; (iii) financial including training to strengthen the National management systems and processes, development Compliance Officer Program. of fish catch documentation systems; (iv)  Provision of goods and technical assistance, establishment of an electronic fish catch reporting including training, to strengthen the National system; and, (v) construction of a fisheries Observer Program. surveillance operational center and two outlying enforcement centers. 10 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Original Proposed Component 2: Sustainable Management of Coastal Fisheries (GEF Financing)  Carrying out a program of activities designed to support the Recipient to sustainably manage defined coastal fisheries, such program to include: (i) undertaking coastal fisheries resource assessments, including a nationwide frame survey; fisheries resource and fisheries environmental risk assessments; (ii) monitoring coastal fisheries, including establishment of a GIS unit and inshore fisheries information A nationwide frame survey to provide a baseline management systems; (iii) strengthening study of the coastal fisheries. stakeholder management of targeted coastal fisheries and empowering communities to legally Fisheries Resource Assessments and Fisheries manage defined coastal fisheries; and, (iv) development national management measures for Environmental Risk Assessments. coastal fisheries, including development and implementation of management plans for key Development and implementation of management fisheries species, reviewing coastal fisheries plans for key fisheries species, including regulations and assisting provincial governments technical assistance to review regulations and in development and implementing their fisheries ordinances, and for monitoring/integration of ordinances in line with the Fisheries Management management plans. Act.  Carrying out a program of activities designed to support the linkage of coastal fish products to regional markets, such program to include identification of key domestic fisheries development projects with linkages to regional market and review of current trade practices. Component 4: National Program Management, Monitoring and Evaluation (IDA financing) Carrying out a program of activities designed to Carrying out a program of activities designed to strengthen the capacity of the Recipient for Project strengthen the capacity of the Recipient for Project management and implementation, including for management and implementation, including for financial and procurement, management, monitoring financial and procurement, management, and evaluation and safeguards. monitoring and evaluation and safeguards. Note: the staffing complement is being strengthened with the recent recruitment of a new Project Coordinator and part time procurement, safeguards and M&E specialists. 11 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Table 3: IDA - Original and Proposed Project Components and Costs2 Current Proposed Cost Action Cost Component (USD Component (USD Millions) Millions) Sustainable Management of Sustainable Management of 7.75 Revised 5.33 Oceanic Fisheries Oceanic Fisheries Sustainable Management of Sustainable Management of 1.8 Revised 0 Coastal Fisheries Coastal Fisheries National Program National Program Management, Monitoring and 0.2 Revised Management, Monitoring and 0.8 Evaluation Evaluation TOTAL 9.75 6.13 Table 4: GEF - Original and Proposed Project Components and Costs3 Current Proposed Action Cost (USD Cost (USD Component Component Millions) Millions) Sustainable Sustainable Management of Management of Coastal 1.37 Unchanged 1.37 Coastal Fisheries Fisheries TOTAL 1.37 1.37 D. APPRAISAL SUMMARY 7. Technical Analysis: The technical underpinnings of the project are based on biological and economic research that demonstrate that environmentally sustainable levels of fishing exploitation (i.e. below the maximum amount that can be harvested, yet permit stocks to regenerate) are also more economically profitable. Experience in the Pacific has demonstrated these results in the purse seine tuna fisheries via introduction of the Vessel Day Scheme (VDS) and limits to the amount of annual fishing effort authorized to take place in the waters of Pacific Island Countries (PICs). In effect, this means that a fixed number of transferable fishing days are agreed at the subregional level by members of the Parties to the Nauru Agreement and allocated to each party (country) based on historical catch levels and resource endowment. Vessel-days are then made available by member countries to the fishing industry through a variety of mechanisms, including the sale of nationally allocated vessel-days, the US Treaty and the Federated States 2 Of the IDA amount proposed to be cancelled US$2.23 million has been cancelled from the National IDA and $1.39 million from the Regional IDA. 3Note: Disbursement estimates indicated further below only include IDA financing, not GEF. This is due to an internal World Bank portal structure that separates the IDA and GEF financing in two separate project codes and does not merge disbursement estimates for both in the table presented herein the restructuring paper. 12 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) of Micronesia Arrangement. This approach has significantly enhanced efficiency and revenues to PICs, more than tripling returns from US$60 million to US$265 million per year between 2008-2013. The VDS provides valuable lessons for development of fisheries management systems linked to the ecology of fish stocks. Such lessons have also been applied in coastal fisheries in many Pacific island communities. This project is being restrucured to reflect these lessons and invest in further strengthening the existing purse seine VDS in the Solomon Islands as well as expanding applicable lessons to improve management of the the long-line tuna fishery. The restructured project also retains a critcal focus on the long term sustainability of Solomon Islands’s coastal habitats that suport these fisheries by investingin development and implementation of management plans for key coastal species. 8. Financial Management (FM) and Disbursement: As part of the initial project preparation, a financial management assessment was carried out on MFMR in accordance with the “Principles Based Financial Management Practice Manual” issued by the Board on March 1, 2010. The main FM risk assessed at the time was the lack of the agency’s experience in managing donor funds, in particular from the World Bank. To further strengthen financial management and mitigate this risk, hiring dedicated project accountant was recommended and one was subsequently employed by MFMR. However, based on the most recent FM review conducted on March 12, 2018, the FM performance rating has been downgraded to “Unsatisfactory”. Key issues identified include inadequacy of the financial documentation and that the IDA account has effectively been allowed to run out of funds due to failure to complete timely withdrawal applications. This review also identified breaches in compliance with government requirements including failure to remit withholding taxes, and previous failure to remit Pay As You Go (PAYG) tax on time. The assessed risk remains as “Substantial.” There are two FM staff employed by the project at this time and this should be sufficient in terms of FM staff resources available to able to manage the project’s FM requirements, hence there are serious concerns as to why so many issues were identified during the review. The PIU has been advised that it needs to improve the quality of its FM staffing resources with urgency in order to implement the project effectively post-restructuring. The existing Project Operations Manual (POM) includes FM and Disbursement Arrangements and will be updated to reflect the modifications made as a result of this restructuring exercise. The revised allocation of grant proceeds for IDA are presented in Table 5 and for GEF in Table 6. Table 5: Allocation of IDA Grant and Credit Proceeds Category Amount of the Credit Amount of the Grant Percentage of Allocated (expressed in Allocated (expressed Expenditures to be SDR) in SDR) Financed (inclusive of Taxes) (1) Goods, works, 2,275,800 1,151,100 100% non-consulting services, training consultants’ services and incremental operating costs for 13 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Parts 1 and 3 of the project (2) DLI Expenditures 554,200 178,900 100% under Part 1(a) of the original Project for the DLI Periods 2015, 2016, 2017 and 2018 (3) Cancelled amounts 1,270,000 1,270,000 -- Total 4,100,000 2,600,000 Table 6: Allocation of GEF Grant Proceeds Category Amount of the Grant Allocated Percentage of Expenditures to be (USD) Financed (inclusive of Taxes) Goods, works, non- 1,370,000 100% consulting services, consultants’ services, training and operating costs for Part 2 of the project Total 1,370,000 9. Procurement: With the current restructure of the project activities, the amount of procurement to be carried out by the Ministry is presented in Table 7. Table 7: Proposed Project Procurement Summary Table Type of Procurement Estimated Costs (USD) # of procurement Activities Consulting Services - Individual Consultant 431,000 10 Consulting Services (Firm) 137,500 3 Goods 2,190,000 12 Non-consulting services 82,000 4 Works 429,000 2 Grand Total 3,269,500 31 10. The information above derives from the updated draft procurement plan submitted by the Ministry on June 13, 2018. The plan has been conditionally accepted, but requires fine tuning which will take place prior to signature of the amended legal documents in order to be approved. The main procurement activity is PROP/MFMR/C3 - Establishment of EMS (design, supply equipment, install and train) which is estimated at USD1.3 million. The overall procurement-related risks remain as substantial. The key risks 14 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) identified are: (i) delays, non-compliance with procedures, and poor quality of the deliverables; (ii) reduced competition and low market interest; and (iii) inadequate contract management. To address the risks, the following actions will be implemented: (i) the Ministry to employ a qualified (part-time) Procurement Advisor that will, among other tasks, (a) provide quality assurance on all procurement decisions made by the Ministry; (b) prepare Procurement Quarterly Reports will focus particularly on timeliness of procurement; and (c) set up a contracts register and update it on a monthly basis; and (ii) the Ministry will utilize STEP – Systematic Tracking of Exchanges in Procurement. 11. Social Analysis: This restructuring will not involve any involuntary land acquisition nor resettlement, due to the limited size of the proposed new physical investment (e.g., construciton of the Noro enforcement center). Should the project require any voluntary land donations, they will meet World Bank requirements through application of the Voluntary Land Donation Protocol appended to the existing ESMF in Annex D. In the case of downstream establishment of the Marine Protected Areas or Ocean Finance mechanisms being developed under the separate, but associated, FFA PROP project, these activites may be piloted in the Solomon Islands and as a result, these mechanisms may restrict access to resources. In such cases, MFMR will select appropriate safeguard instrument(s) according to the guidelines defined in the ESMF (and, in particular, the Annex on the Process Framework). The Indigenous Peoples Policy was triggered in the original project since the PROP Phase 1 Program had a regional scope and specific sites and activities had not yet been identified. The ESMF will be updated prior to signing of the amended legal documents to reflect the reduced scope of works in the restructured project and to address the changes in project implementation arrangements. 12. Environmental Analysis: The aim of the restructured project is to help strengthen the management of Solomon Islands’ oceanic and coastal fisheries, and the critical habitats upon which they depend. The project remains rated a category B as the overall impact of the project is expected to be positive and none of the activities will generate significant risk nor irreversible adverse impacts in the coastal and oceanic fisheries targeted by the project. However, some investments under Components 1 and 2 may generate minor to moderate site-specific and time-bound adverse environmental impacts that can be readily mitigated through standard mitigation measures, when screened properly. In all cases of technical advisory services, the Interim Guidelines on the Application of Safeguard Policies to TA Activities in Bank- Financed Projects and Trust Funds Administered by the Bank apply. Terms of References for the TA activities will be reviewed by the Bank to ensure the consultancy methodologies and outputs comply with Bank safeguard policies. The PROP ESMF has been prepared to guide investments and technical advisory services that may generate adverse environmental and social impacts. Screening forms will be used to identify environmental and social impacts and determine the appropriate mitigation measures. The ESMF will be updated prior to signing of the amended legal documents to reflect the nature and scope of the restructuring and to address the changes in project implementation arrangements. 15 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) E. ORIGINAL AND PROPOSED RESULTS FRAMEWORK Table 8: Original and Proposed Project Results Framework Original Change Rationale for Change Project Development Objective Indicators Indicator Name Number of days fished in a Revised: This indicator has been revised since country’s waters do not the restructured project will support exceed its agreed annual MFMR’s monitoring, capacity building of the Observer and allocation of fishing vessel control and surveillance Compliance Officer Program and will days, while the total regional institutional capacity no longer focus on data verification allocation remains within strengthened through related to the VDS; which was the sustainable levels expansion of the focus of the DLI modality. (Percentage) Compliance Officer Program (Number of As such, the revised indicator certified Compliance measures strengthened institutional Officers, of which 40% capacity of MFMR to carry out its are female) monitoring, control and surveillance functions. Number of additional coastal Revised: This indicator is modified to specify fisheries legally managed by that the plans will be implemented in stakeholders in each country, Management plans for key the Solomon Islands and that they are with support from the coastal fish species for key species prioritized by Government (Number) implemented in the Government. Solomon Islands (Number of species) The End of Project Target is 2 species for which such management plans are implemented. Direct project beneficiaries Dropped Core indictor on direct project (number), of which are female beneficiaries and of which are female (%) (Number) is no longer mandatory. New: This indicator is introduced to emphasize the regional and national Electronic monitoring importance of the introduction and system for long-line roll out of this critical pilot in the vessels piloted in the Solomon Islands for improved Solomon Islands (Number management of the long-line vessels. of vessels) The End-of-Project target is 7 vessels. 16 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Intermediate Results Indicator Component 1 100% of purse seine fishing Dropped The indicator has been dropped vessel days used are recorded because the indicator was found to annually according to agreed have no influence on decision making criteria (Percentage) with respect to the VDS for the purse seine vessels. 100% of purse seine fishing Dropped This indicator has been dropped since days used and sold are the restructured project will support disclosed annually to the capacity building of the Observer and PNAO FIMS and other parties Compliance Officer Program and will as part of a comprehensive no longer focus on data verification verification system for the related to the VDS; which was the VDS (Percentage) focus of the DLI modality. % of tuna catch within a Dropped This indicator has been dropped since country’s waters that is the restructured project will support encompassed within the VDS capacity building of the Observer and or a compatible system Compliance Officer Program and will (Percentage) no longer focus on data verification related to the VDS; which was the focus of the DLI modality. At least one measure applied Dropped The indicator has been dropped and maintained to increase because it was not introduced in the flexibility and the value of a project to date and will not be purse seine vessel day above feasible to achieve in the remaining the baseline (Yes/No) life of the project. A similar system to the VDS Revised: The indicator has been revised to (i) is introduced for managing focus on Solomon Islands access to the two long-line Electronic monitoring exclusively; (ii) that it will only be fisheries (tropical long-line system for long-line possible to pilot this new approach in fishery and southern albacore vessels developed in the the time left until project closure. long-line fishery) (Yes/No) Solomon Islands (Yes/No) The End-of-project target is Yes. Component 2 Coastal fish resources Remains, no change assessed as the basis for improved management (Number) 17 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Number of national coastal Revised: The indicator has been revised to clarify the focus on design of coastal fisheries management plans implemented for coastal Coastal fisheries fisheries management plans for key management plans species selected by Government export fisheries (Number) designed for key species in the Solomon Islands (Number of plans designed) Component 3 Implementing agencies Dropped The indicator has been dropped as it is no longer relevant given that the receive the support needed FFA PROP Project will no longer from FFA to achieve the provide implementation support to program’s objectives the SI PROP Project. (Yes/No) New: The new indicator emphasizes the importance of strengthening citizen Grievances registered engagement in the Pacific region. related to delivery of project benefits that are addressed (%) (flat line target of 75% each year) I. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Implementation Schedule ✔ Change in Technical Analysis ✔ 18 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Change in Social Analysis ✔ Change in Environmental Analysis ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Loan Closing Date(s) ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Financial Management ✔ Change in Procurement ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE MFMR’s monitoring, control and surveillance institutional capacity strengthened through expansion of the Compliance Officer Program Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 16.00 Revised Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Management plans for key coastal fish species implemented in the Solomon Islands Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 2.00 Revised Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Direct project beneficiaries, of which are female Unit of Measure: Number 19 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 60000.00 Marked for Deletion Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Electronic monitoring system for long-line vessels piloted in the Solomon Islands Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 7.00 New Date 15-Feb-2015 21-Jun-2018 30-Sep-2020 Intermediate Indicators IO_IND_TABLE 100% of purse seine fishing vessel days used are recorded annually according to agreed criteria* Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 100.00 100.00 100.00 Marked for Deletion Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 100% of purse seine fishing days used and sold are disclosed annually to the PNAO FIMS and other parties as part of a comprehensive verification system for the VDS* Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Marked for Deletion Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Percentage (%) of tuna catch within a country’s waters that is encompassed within the VDS Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 59.00 100.00 100.00 Marked for Deletion 20 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 At least one measure applied and maintained to increase flexibility and the value of a purse seine vessel day above the baseline Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Marked for Deletion Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Electronic Monitoring System for long-line vessels developed in the Solomon Islands Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 08-Feb-2015 05-Jun-2018 30-Sep-2020 Coastal fisheries management plans designed for key species in the Solomon Islands Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 2.00 Revised Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Coastal fish resources assessed as the basis for improved management Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 2.00 Revised Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Implementing agencies receive the support needed from FFA to achieve the program’s objectives Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value Yes No Yes Marked for Deletion 21 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) Date 15-Feb-2015 05-Jun-2018 30-Sep-2020 Grievances registered related to delivery of project benefits that are addressed Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 75.00 New Date 15-Feb-2015 28-Jun-2018 30-Sep-2020 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Sustainable Component 1: Sustainable Management of Oceanic 7.75 Revised Management of Oceanic 5.33 Fisheries Fisheries Component 2: Sustainable Component 2: Sustainable 3.17 Revised Management of Coastal 1.37 Management of Coastal Fisheries Fisheries Component 3: National Program Component 3: National Management, Monitoring and 0.20 Revised Program Management, 0.80 Evaluation Monitoring and Evaluation TOTAL 11.12 7.50 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN IDA-55670- Effectiv RESTRUCTUR XDR 4,100,000.00 1,270,000.00 29-Jun-2018 2,830,000.00 001 e ING, COST SAVINGS LOAN IDA-D0150- Disburs RESTRUCTUR XDR 2,600,000.00 1,270,000.00 29-Jun-2018 1,330,000.00 001 ing ING, COST SAVINGS 22 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-55670-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,Wrks,NCS,CS except P1(a) 2,500,000.00 0.00 2,275,800.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: DLI Exps under Part 1(a) 1,600,000.00 0.00 554,200.00 100.00 100.00 Total 4,100,000.00 0.00 2,830,000.00 IDA-D0150-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,Wrks,NCS,CS except P1(a) 2,000,000.00 193,910.81 1,151,100.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: DLI Exps under Part 1(a) (pro memoria) 600,000.00 178,882.76 178,900.00 100.00 100.00 Total 2,600,000.00 372,793.57 1,330,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2015 510,422.47 0.00 2016 974,684.70 800,317.50 23 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) 2017 974,684.70 105,781.26 2018 974,684.70 410,051.17 2019 1,526,517.30 1,119,517.20 2020 2,122,238.70 2,094,332.87 2021 2,472,434.56 1,600,000.00 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate  Moderate Macroeconomic  Moderate  Moderate Sector Strategies and Policies  Moderate  Substantial Technical Design of Project or Program  Moderate  High Institutional Capacity for Implementation and  Substantial  High Sustainability Fiduciary  Moderate  Substantial Environment and Social  Substantial  Substantial Stakeholders  Substantial  High Other  Moderate Overall  Substantial  High OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action The Additional Event of Suspension consists of the following, namely that, the Fisheries Management Act has been amended, suspended, abrogated, repealed or waived in a manner that is not compatible with IDA-55670 international law, specifically the United Nations Complied with No Change Convention on the Law of the Sea, or in a manner that would affect materially and adversely the ability of the Recipient to perform any of its obligations under the Financing Agreement. 24 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) The Recipient shall, by not later than four months after the Effective Date, appoint and thereafter maintain, a national Project coordinator, within the Ministry of Fisheries and Marine Resources (MFMR), to be IDA-55670 responsible for, inter alia, overseeing implementation Complied with Revised and monitoring of the Project, including coordinating with the PSU, managing all contracts financed under the project, and ensuring environmental and social safeguards compliance. The Recipient shall, by not later than two months after the Effective Date, appoint and thereafter maintain, an appropriate staffing complement within the Ministry of Proposed Not yet due Fisheries and Marine Resources (MFMR), to be responsible for, inter alia, overseeing implementation and monitoring of the Project. The Recipient shall, in collaboration with FFA and other Participating Countries, take all necessary action on its part to establish, by not later than six (6) months after the Effective Date, and thereafter maintain, a Regional After delay complied Marked for IDA-55670 Procurement Evaluation Committee, comprising with Deletion representatives from FFA, and each Participating Country, to be responsible for contract award decision- making for regionally packaged procurement activities. To facilitate proper and efficient implementation of the Project, the Recipient shall by not later than six (6) months after the Effective Date enter into and maintain, throughout the Project implementation period, a Service Agreement between the Recipient and FFA, under terms and conditions acceptable to the Association pursuant to After delay complied IDA-55670 Revised which the FFA, through the PSU, shall provide technical, with fiduciary, monitoring and implementation support to the Recipient, including, inter alia carrying out verification of achievement of DLIs under Part 1(a) of the Project, and procurement services as detailed in Section I.A.1 of Schedule 2 to the Financing Agreement. Proposed The Recipient shall terminate the existing Service Not yet due Agreement between the Recipient and FFA, under terms and conditions acceptable to the Association, 25 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) within one month after final DLI disbursement of the CY 2018 DLI period. The Recipient shall by not later than three (3) months after the Effective Date, prepare, in collaboration with After delay complied IDA-55670 FFA and the other Participating Countries, and Revised with thereafter adopt a Program Operations Manual, in form and substance acceptable to the Association. The Recipient shall by not later than two (2) months after the Effective Date, revise the existing PROP Proposed Not yet due Program Operations Manual, in form and substance acceptable to the Association. IDA-55670 The Recipient shall ensure that: Not yet due No Change (f) all monitoring, control and surveillance activities carried out by the Recipient shall be under the control of a civilian fisheries officer or another civilian agency of the Recipient acceptable to the Association, and shall be carried out under terms of reference limited to fisheries surveillance; (g) each surveillance mission carried out by the Recipient shall be: (a) governed by detailed protocols prepared in accordance with terms of reference satisfactory to the Association, requiring that such missions be: (i) under the operational command or authority of a civilian fisheries officer; and (ii) conducted during a specific time period that is duly recorded and documented; and (b) be conducted by personnel who have been properly trained in the operation of any equipment used in the surveillance mission; (h) where a patrol or surveillance mission has multiple tasks: (i) accounts are maintained in a manner acceptable to the Association which demonstrate that the Financing has been used for the exclusive purpose of financing fisheries surveillance activities; and (ii) that the Association is granted access to such accounts; (i) all goods, works, services and operating costs for fisheries monitoring, control and surveillance and related enforcement activities financed out of the proceeds of the Financing are used for the sole purpose of enforcing the fisheries laws and regulations and shall not be used for any military purpose, or for enforcement of other non-fisheries laws; and 26 The World Bank Pacific Islands Regional Oceanscape Program - Solomon Islands (P151777) (j) all fisheries monitoring, control and surveillance and related enforcement activities carried out under the Project, shall be compatible with international law, and specifically, with Article 73 of the United Nations Convention Law of the Sea Treaty, that: (a) any foreign vessels and crew arrested in the Recipient’s exclusive economic zone shall be immediately released upon posting a reasonable bond or other security; (b) penalties imposed by the Recipient for violations of fisheries laws and regulations may not include imprisonment; and (c) in cases of arrest or detention of foreign vessels, the Recipient shall promptly notify the flag state of the action taken and of any penalties subsequently imposed. The Recipient shall: (a) not later than three (3) years after the Effective Date (or such other date as the IDA-55670 Not yet due Revised Association may agree), carry out a mid-term review of the Project. The Recipient shall, not later than February 15, 2019 (or Proposed such other date as the Association may agree), carry out NYD a mid-term review of the Project. No withdrawal shall be made for DLI Expenditures under Category (2) until and unless the Recipient shall have: (i) complied with the additional instructions referred to in Section IV.A.1 of this Schedule, including submission to the Association of the applicable statements of expenditure evidencing the incurrence of IDA-55670 eligible DLI Expenditures during the respective DLI Complied with No Change Period for which payment is requested; and (ii) furnished evidence satisfactory to the Association, in accordance with the verification protocol set out in Annex 2 of Schedule 2 to the Financing Agreement, that the DLI Target for the respective DLI Period for which payment is requested has been achieved. 27