The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) REPORT NO.: RES46631 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CULTURAL HERITAGE PRESERVATION AND TOURISM SECTOR SUPPORT PROJECT APPROVED ON MAY 19, 2014 TO REPUBLIC OF HAITI URBAN, RESILIENCE AND LAND LATIN AMERICA AND CARIBBEAN Regional Vice President: Carlos Felipe Jaramillo Country Director: Lilia Burunciuc Regional Director: Anna Wellenstein Practice Manager/Manager: David N. Sislen Task Team Leader(s): Alexandra Ortiz The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) I. BASIC DATA Product Information Project ID Financing Instrument P144614 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-May-2014 29-Jul-2022 Organizations Borrower Responsible Agency Republic of Haiti UNITE TECHNIQUE D'EXECUTION Project Development Objective (PDO) Original PDO The objectives of the Project are to: (a) increase the attractiveness of the cultural heritage sites in North of Haiti for tourists; (b) improve the living environment for the residents living in North of Haiti; and (c) support the Recipient’s capacity to respond promptly and effectively to an Eligible Emergency, as needed. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-H9440 19-May-2014 09-Jul-2014 06-Oct-2014 29-Jul-2022 31.95 15.84 12.10 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Project Status 1. The IDA Grant No H944-HT was signed on May 19, 2014 and declared effective on October 6, 2014. The project’s closing date is July 29, 2022. The objectives of the Project are to: (a) increase the attractiveness of the cultural heritage sites in North of Haiti for tourists; (b) improve the living environment for the residents living in North of Haiti; and (c) support the Recipient’s capacity to respond promptly and effectively to an Eligible Emergency, as needed. To date the disbursement rate is 56.7 percent. Progress towards achievement of PDO is rated Moderately Satisfactory, while Overall Implementation Progress and Procurement are rated Moderately Unsatisfactory due to persistent delays in implementation and low procurement capacity. A consultant under the Hands-on-Expanded Implementation Support (HEIS) was hired in June 2021 to provide procurement implementation support. The project is implemented by the executing technical unit in the Ministry of Finance (UTE/MEF). 2. The project has five components: • Component A – Physical Cultural Heritage Sites and touristic circuits in the PNH-CSSR and Cap-Haïtien Historic City Center. • Component B - Local investments in Dondon, Milot and Cap-Haïtien • Component C – Inclusive Tourism Sector Development Support). • Component D - Contingent Emergency Response • Component E - Project Implementation, Monitoring and Evaluation 3. The project has been restructured four times. The first two restructurings (approved in June 2017 and June 2018) focused on changes to implementation arrangements and simplification of project activities. The third restructuring, approved June 2020, created a new disbursement category and all the Project’s uncommitted funds were reallocated to that category. Further, US$5.3 million from the new disbursement category were canceled to support the COVID-19 recovery response under a different World Bank operation. The fourth restructuring, approved in August 2020, focused on further simplifying project activities, cancelling US$ 7.75 million, and providing a 23-month extension to the closing date. With these two cancellations the current net commitment is US$ 31.95 million. Status by Component 4. Component A: (i) the Bank gave No Objection (NO) to the technical evaluation of the Citadelle Henri-Ramiers study proposals and the studies for the rehabilitation of the Sans Souci Palace are in progress; (ii) the Bank gave NO to the UNESCO Convention for the last period of the project and the National Historic Park management plan is expected to be presented to the World Heritage Center in February 2022; and (iii) the Temporary Park Management Authority (AGP) is advancing on the legal and administrative procedures to get transformed into the permanent authority. Component B: (i) the works to upgrade the façades of Rue 16 continue to advance and the works to upgrade the façades of Rue 20 are expected to begin in mid-November; (ii) the works to upgrade of the façades of Dondon are expected to begin mid-November; and (iii) the inauguration of the Institute for the Protection of National Heritage (ISPAN) documentation center planned for December 2021 and there is an ongoing plan to collaborate with the Florida International University in the management of the archives. Component C: (i) the Bank gave NO for the technical evaluation of the proposals for the Ancienne Capitanerie works and the opening of the financial proposals will take place during the week of October 11; and (ii) the Community Fund is in the process of completing and evaluating the 38 sub-projects. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) 5. By the end of the Project, the following activities are expected to be completed: the façades of Rue 16, the façades of Dondon, the ISPAN documentation center, the studies for the rehabilitation of Sans Souci Palace and the AGP will be a permanent entity. However, the following activities are on a critical path: the rehabilitation of the Ancienne Capitanerie, the façades of Rue 20, and the studies for the rehabilitation of Citadelle Henri-Ramiers. The Bank team is working with the client to divide these activities into phases, to advance with the parts that are feasible to complete within the Project’s timeline. Description of Proposed Changes 6. The objective of this restructuring is to create a new disbursement category to finance the Project’s possible resettlement-related expenditures. The project had envisaged the possibility of resettlement in its design, and as such a Resettlement Policy Framework (RPF) was prepared and disclosed in December 2013, prior to Project approval. However, this possibility did not materialize until recently. In letter No. UTE/PAST/08-21/2614 dated August 6, 2021 and received by the World Bank on August 17, 2021, the Government of Haiti (GoH) requested the creation of a new disbursement category to finance possible resettlement-related expenditures for US$ 100,000 (equivalent to SDR 70,328.93), representing 0.31 percent of the total Project amount. Potential resettlement costs to be financed include land expenditures (including compensation for land acquisition and other fixed property related to implementation of a resettlement instrument) or cash compensation and other assistance paid in cash for involuntary resettlement. 7. The works that might trigger resettlement are found in Component A, specifically related to the rehabilitation of the facades of streets in Cap-Haïtien and potentially in Component B, related to small improvements in local urban infrastructure. In accordance with Project design, the exact location and nature of the works is determined during Project implementation, and the environmental and social risks and impacts are managed in accordance with the Project’s Environmental and Social Management Framework (ESMF) and the RPF. The potential Project Affected People (PAP) according to OP 4.12 could be either squatters of facilities to be rehabilitated, owners or renters of property in the immediate vicinity of the rehabilitated/upgraded facilities, as well as street vendors, owners of kiosks or individuals involved in other economic livelihood activities around these facilities. The specific Resettlement Action Plans (RAPs), where required, will be prepared and implemented prior to the start of physical works. No withdrawals under the Category 10 (Resettlement Costs) can be made until the RAPs are approved by the World Bank. 8. A memo to the Regional Vice President requesting authorization to finance resettlement related expenditures was submitted on May 21, 2021 and approved on May 26, 2021. The memo is included as part of the restructuring package. Rationale 9. The rationale for restructuring the project to include a disbursement category to finance potential resettlement related expenditures is due to difficulties at the central government level to make funds available. According to OP 4.12, the Bank may, at a recipient’s request, provide financing for the investment costs of resettlement. The Recipient has made th is request because of: (i) insufficient funds; and (ii) extent of the resettlement expenditures and bureaucratic difficulties in committing to an estimated amount. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-H9440- GO, CW, NCS, 3,333,622.04 3,419,752.57 3,333,622.04 100.00 100.00 001 CS, TR Pt. A Currency: GO, CW, NCS, XDR 311,782.52 311,782.52 311,782.52 100.00 100.00 CS, TR Pt. B GO, CW, NCS, 86,998.12 86,998.12 86,998.12 100.00 100.00 CS, TR Pt. C1 GO, CW, NCS, 426,305.46 426,305.46 426,305.46 100.00 100.00 CS, TR Pt. C2 GO, CW, NCS, CS, TR Subproj 73,264.95 73,264.95 73,264.95 100.00 100.00 Pt. C3 GO, CW, NCS, CS 0.00 0.00 0.00 100.00 100.00 for CER Part GO, NCS, CS, TR, 1,687,012.39 1,687,012.39 1,687,012.39 100.00 100.00 OP Pt. E Refund of Preparation 586,368.94 586,368.94 586,368.94 100.00 100.00 Advance G W NCS CS T 13,267,208.73 3,237,159.92 13,196,879.80 100.00 100.00 IOC Resettlement 0.00 0.00 70,328.93 100 Costs Total 19,772,563.15 9,828,644.87 19,772,563.15