The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) REPORT NO.: RES41309 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC APPROVED ON NOVEMBER 12, 2017 TO SADC SECRETARIAT URBAN, RESILIENCE AND LAND AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Deborah L. Wetzel Regional Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Meskerem Brhane Task Team Leader(s): Prashant Singh The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) ABBREVIATIONS AND ACRONYMS ACP African, Caribbean, Pacific Group of States CCA Climate Change Adaptation DRM Disaster Risk Management DRR Disaster Risk Reduction EDF European Development Fund EU European Union EWS Early Warning System GFDRR Global Facility for Disaster Reduction and Recovery NDRR National Disaster Risk Reduction PDNA Post-Disaster Needs Assessment PDO Project Development Objective PIU Project Implementation Unit REC Regional Economic Community RIASCO Regional Inter Agency Standing Committee SADC Southern African Development Community SARCOF Southern African Regional Climate Outlook Forums SHOC SADC Humanitarian and Operations Center SDTF Single Donor Trust Fund UNDP United Nations Development Programme UNISDR United Nations International Strategy for Disaster Reduction The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P163486 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 12-Nov-2017 31-May-2020 Organizations Borrower Responsible Agency SADC Secretariat SADC DRR unit Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) Project Development Objective (PDO) Original PDO The development objective of the project is to strengthen the disaster resilience of Southern African Development Community (SADC) member states through regional collaboration and improved coordination, planning, policy advisory and knowledge dissemination capacity of SADC. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A6148 27-Jun-2018 21-Aug-2018 05-Oct-2018 31-May-2020 2.50 1.35 1.15 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Current Status 1. This project is part of the program which is supported by the Africa, Caribbean and Pacific (ACP) group of States - European Union (EU) cooperation program “Building Disaster Resilience to Natural Hazards in Sub-Saharan African Regions, Countries and Communities”. Result Area 2 (R2) of this program supports “African Regional Economic Communities (REC) have DRR coordination, planning and policy advisory capacities operational to support their respective member states and regional and sub-regional programs”. The R2 Program started in September 2014 as part of the EU Intra-ACP cooperation program Building Disaster Resilience to Natural Hazards in Sub-Saharan African Regions, Countries and Communities, financed under the 10th European Development Fund (EDF). It has the overall objective of strengthening the resilience of Sub-Saharan African regions, countries and communities to the impacts of natural disasters. To achieve this objective, five Result Areas are being implemented by AfDB, UNISDR and World Bank-GFDRR. The 20 million Euros contribution from the EU for Result Area 2 was channeled through the Window 1 of the existing ACP-EU NDRR SDTF. The R2 Program was launched formally by the EU, World Bank, UNISDR and African Union Commission in the margins of the Financing for Development Conference at Addis Ababa in June 2015. 2. The grant package has been prepared in 2017 in close collaboration with the SADC DRR unit, initially for the amount of US$1.25 million. Following the meeting of the Country Director and the World Bank Special Envoy to SADC on April 11, 2018, it was agreed – upon request from SADC - to provide the overall project funding of US$2.5 The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) million in one phase instead of two phases of US$1.25 million each. This restructuring was granted in July 2018 and the project became effective in October 2018. The project has been extended from December 31, 2019 to May 31, 2020 to increase the implementation period from 15 to 20 months to allow SADC to disburse properly and timely (Please note that the same extension was granted all RECs under Result 2). The overall short implementation period and capacity constraints of SADC has been noted by the World Bank’s management. 3. The cumulative disbursements are at 50%, while the majority of the remaining resources are committed in the contracts for the consultancy firms and PIU experts. Since the beginning of the COVID-19 pandemic and related restrictions on March 7, 2019 project implementation has largely been suspended. 4. Following the effectiveness of the grant in October 2018, the Project Coordinator / Senior Programme Officer for DRR at SADC has changed in February 2019. Since then, implementation has effectively started with a focus on strengthening disaster preparedness, response planning and increased coordination and recovery planning following cyclones Kenneth and Idai, which hit Southern Africa in early 2019. 5. On the operational side, SADC has made substantial progress. With the recruitment of the experts of the Project Implementation Unit in September 2019 (financial management expert, procurement expert, team assistant) as well as the selection of consulting firms for four major assignments in November 2019, the project has gained the necessary implementation capacity. The four consultancy assignments ((a) Mainstreaming of Disaster Risk Reduction into SADC Secretariat development plans and strategies through analysis; (b) Operationalization of the national and regional Disaster Risk Reduction information and knowledge management systems in the SADC region; (c) Review of DRR policy and strategic frameworks in SADC member states to align with Sendai framework, Africa Union DRR plan of action and SADC DRR policy frameworks; and (d) SADC preparedness and response mechanism) are implemented by two consulting firms, which have commenced desk reviews, consultations with the SADC secretariat, member states and regional stakeholders in December 2019. A one-week consultation meeting was successfully conducted in January 2020 in Johannesburg providing guidance from the perspective of regional stakeholders. The inception report and first technical reports have been submitted to SADC for review. 6. In addition to the work of the consulting firms, SADC has organized a number of regional meetings and trainings focusing on disaster preparedness in the region. In June 2019 SADC organized in Windhoek (Namibia) a regional meeting to coordinate preparedness measures for drought in the region. In August 2019 the SADC Climate Service Center organized the regional climate outlook forum in Luanda (Angola) and discussed the impacts of the El Nino phenomena for the region. Discussions on contingency planning were further advanced in January in Johannesburg (South Africa) through the multi-dimensional meeting on the standby force for humanitarian interventions. In September 2019, SADC conducted a Post Disaster Needs Assessment (PDNA) training in Pretoria (South Africa) with 27 participants, jointly supported by experts from World Bank, UNDP and European Union. Other training activities relate to the concept of ecosystem-based DRR (together with the workshop in June in Windhoek) and to seasonal preparedness planning. In total, 113 people participated in different training activities organized by SADC. 7. SADC convened the first meeting of the Ministers responsible for Disaster Risk Reduction from February 17-21, 2020 in Zanzibar (Tanzania). The meeting discussed the acceleration of the operationalization of the preparedness and response mechanism, regional policy proposals and joint response to disasters in the region, including the COVID-19 pandemic. Since early March 2020 all engagements have been paused in the region in response to the COVID-19 pandemic The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) B. Rationale for Restructuring 8. The COVID-19 disease has since March 2020 also affected the SADC region. On March 7, 2020 SADC cancelled all missions of SADC staff, and in this context the planned Bank’s implementation support mission was also cancelled. The project steering committee was implemented in a virtual manner on March 17, 2020. It is expected that the COVID-19 pandemic and health crisis will continue to have impacts throughout the region and will limit travel and meetings for the next months to come and at least until May 2020. The planned SADC regional DRR conference (initially planned for April 2020 in Tanzania) has been postponed. In addition, the SADC Secretariat is looking into the options for supporting member states in response to the COVID-19 pandemic and resulting economic impacts. 9. The task team has worked closely with the SADC DRR unit to support the implementation of the project. Six project steering committee meetings were conducted to monitor the overall progress of implementation and provide the project team with strategic directions for implementation. The steering committee meeting from March 17, 2020 recommended an extension of the project closing date to overcome the challenges and restrictions imposed by the COVID-19 pandemic and ensure that all ongoing contracts and assignments can be completed. 10. Following substantial challenges of SADC to implement the grant in the initial phase of the project, SADC has tried to overcome internal administrative hurdles and to accelerate the execution of project activities. The project implementation unit was recruited in September 2019 and four major firm consultancies were awarded in November 2019, which substantially increased disbursements. As of April 2020, disbursements to the designated account were at 50%, with the resources committed largely in consultancy contracts. To allow SADC a full implementation of the grant and support member states in its response to COVID-19, the Bank project team has conducted detailed analysis of the current status and work program prepared by SADC after receiving the official request on April 29, and an extension of the grant until August 31, 2020 is justified. 11. Therefore, the project team has reached out to GFDRR, the funding source management unit, and obtained its endorsement for SADC’s request. While the trustee TF’s End of Disbursement Date remains unchanged (November 30, 2020), the only way for the Bank to accommodate the request is to reduce the grace period from 4 months to 1 month. The task team has reached out to SADC, who has confirmed that they are able to process all payments, submit withdrawal applications, and refund the Bank any unutilized balance within a shortened grace period of 1 month (as opposed to 4 months). The project managing unit (SAFU2) has confirmed that they will resolve the matter directly with the recipient if a recipient submits withdrawal applications beyond the grace period. With the above confirmation, DFi has approved the request for shortening the grace period to one month. II. DESCRIPTION OF PROPOSED CHANGES 12. Overall the project objectives, proposed components, activities and budget will remain the same, but the project closing date will be extended until August 31, 2020. The project will continue to have a strong focus on disaster preparedness and response coordination and will thereby be an important building block for SADC to respond to the COVID-19 crisis. The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) 13. Project implementation will continue to count on the existing SADC staff from the SADC Disaster Risk Reduction Unit and other parts of the organization. An overview on the project components and their budget is provided below (see also table “components” below). C. Detailed Changes 14. With the proposed new closing date of August 31, 2020 , it is expected that the original planned activities will be implemented to achieve the overall PDOs and the anticipated results of the project. The implementation timeframe will still be compressed as most activities are currently paused for at least 3 months from March to May 2020. The project steering committee on March 17, 2020 confirmed the intention and commitment of SADC to implement all activities despite the challenges related to the COVID-19 pandemic. 15. The detailed implementation plan including budget by components is stated below: (a) Component 1: Enhancing regional institutional coordination mechanisms for disaster preparedness and response (USD 1.1 million): (i) This component finances a consultancy study and the consultation with member states for the development of a feasibility study for the SADC Humanitarian and Emergency Operations Center (SHOC), including a regional consultation with member states, and drafting of an operations manual. The procurement of basic equipment necessary to ensure the operation of the SHOC has been adjusted to essential equipment to kick start the SHOC. In addition some additional procurement may be foreseen to respond to concrete demands from member states in response to the COVID-19 pandemic. (ii) The component also supports the operationalization of the SADC Disaster Preparedness Fund, including operational rules, guidance on adequate governance structures for this fund, as well as simulation exercises and contingency planning at the regional and national level. Activities under point (i) and point (ii) are under implementation through one consultancy contract. (b) Component 2: Operationalize national and regional disaster risk reduction information and knowledge management systems (USD 629,000). The component is currently implemented through a firm consultancy assignment: (i) A consultancy firm supports the development of a knowledge sharing and information management portal and will provide guidance on data sharing and management data and provide guidance for improving data and information exchange. (ii) The regional SADC DRR Conference, initially planned for April 2020 in Tanzania, has been postponed. Depending on the situation related to the COVID-19 pandemic, the conference would be postponed to late August 2020. (c) Component 3: Enhancing Mainstreaming of DRR in development plan and strategies (USD 186,000). Activities of component 3 are also implemented through a firm consultancy contract and include support to DRR monitoring in different sector activities and an analysis of mainstreaming in different sectors. Activities related to Strengthening the regional DRR policy advocacy and capacity development program have been reduced and integrated into the other components. The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) (d) Component 4: Strengthening the implementation and coordination capacity at the SADC Regional Disaster Risk Reduction Programme (USD 523,000). The costs for the PIU (team assistant, procurement expert, financial management expert) will be covered until the completion of the project, plus coordination meetings with DRR focal points from member states, as well as a regional DRR conference in 2020 and support to the ministerial meeting on DRR. There may be additional expenses for the PIU team due to the three months extension, which would however be covered by savings under the same component. (e) Component 5 Auditing and compliance (USD 60,000) summarizes project coordination and operational expenses, including activities related to auditing and compliance. 16. The results framework of the project will however not change at this stage as the main activities will not change but would be implemented in a condensed timeframe. During the last implementation support mission in September, the commitment of SADC to achieving the intended results within a condensed timeframe for implementation was confirmed. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ 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 ✔ Safeguard Policies Triggered ✔ EA category ✔ The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) 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 LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A6148 Effective 31-Dec-2019 31-May-2020 31-Aug-2020 30-Sep-2020 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Expected Disbursements (In US$) Fiscal Year Annual Cumulative 2018 0.00 0.00 2019 0.00 0.00 2020 0.00 0.00 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00 The World Bank STRENGTHENING DRR COORDINATION, PLANNING AND POLICY ADVISORY CAPACITY OF SADC (P163486) Note to Task Teams: End of system generated content, document is editable from here.