Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: RES23712
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
ARP/II-INTEGRATED SOLID WASTE MANAGEMENT PROJECT ADDITIONAL
FINANCING
LOAN
BOARD APPROVAL DATE: JUNE 27, 2013
TO THE
GOVERNMENT OF AZERBAIJAN
JUNE 2, 2016
Social, Urban, Rural and Resilience Global Practice
EUROPE AND CENTRAL ASIA
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.
ABBREVIATIONS AND ACRONYMS
AF Additional Financing
IBRD International Bank for Reconstruction and Development
IP Implementation Progress
ISWMP Integrated Solid Waste Management Project
PDO Project Development Objective
S Satisfactory
Regional Vice President: Cyril E. Muller
Country Director: Mercy Miyang Tembon
Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez
Practice Manager/Manager: David N. Sislen
Task Team Leader: Kremena Ionkova
2
AZERBAIJAN
ARP/II-INTEGRATED SOLID WASTE MANAGEMENT PROJECT
CONTENTS
A. SUMMARY 5
B. PROJECT STATUS 5
C. PROPOSED CHANGES 5
3
DATA SHEET
Azerbaijan
ARP/II-Integrated Solid Waste Management (P110679)
EUROPE AND CENTRAL ASIA
Social, Urban, Rural and Resilience Global Practice
Report No: RES23712
Basic Information
Project ID: P110679 Lending Instrument: Specific Investment Loan
Cyril Christophe
Regional Vice President: Original EA Category: Partial Assessment (B)
Rebillard
Country Director: Mercy Miyang Tembon Current EA Category: Partial Assessment (B)
Senior Global Practice
Ede Jorge Ijjasz-Vasquez Original Approval Date: 17-Jun-2008
Director:
Practice
David N. Sislen Current Closing Date: 30-Sep-2016
Manager/Manager:
Team Leader(s): Kremena M. Ionkova
Borrower: Government of Azerbaijan/Ministry of Finance
Responsible
Ministry of Economy and Industry
Agency:
Restructuring Type
Form Type: Short Form Decision Authority: CD Decision
Restructuring Level: Level 2
Financing ( as of 18-May-2016 )
Key Dates
Approval Effectiveness Original Revised
Project Ln/Cr/TF Status Signing Date
Date Date Closing Date Closing Date
P110679 IBRD-75490 Effective 17-Jun-2008 20-May-2009 31-Jul-2009 30-Sep-2013 30-Sep-2016
P110679 IBRD-82740 Effective 27-Jun-2013 10-Jan-2014 21-Mar-2014 30-Sep-2016 30-Sep-2016
Disbursements (in Millions)
%
Cancelle Disburse Undisbur
Project Ln/Cr/TF Status Currency Original Revised Disburse
d d sed
d
P110679 IBRD-75490 Effective USD 29.50 29.50 0.00 29.50 0.00 100
P110679 IBRD-82740 Effective USD 47.10 47.10 0.00 37.45 9.65 80
4
Policy Waivers
Does the project depart from the CAS/CPF in content or in other significant
Yes [ ] No [ X ]
respects?
Does the project require any policy waiver(s)? Yes [ ] No [ X ]
A. Summary of Proposed Changes
Based on a request from the Ministry of Finance of Azerbaijan dated May 27, 2016, this restructuring
seeks to extend the Closing Date of the Integrated Solid Waste Management Project Additional Financing
(ISWMP AF) by eighteen months from September 30, 2016 to March 30, 2018. This is the first Closing
Date extension being requested for the Additional Financing loan.
B. Project Status
The project is progressing well. All activities under the parent project have been completed successfully.
These include the first phase of rehabilitation of the Balakhani landfill, closure and remediation of 154ha
of wild dumps, procurement of secondary collection equipment, technical assistance to improve the solid
waste management system in Baku, and capacity building for the state owned waste management company
‘Tamiz Shahar’. The parent project is fully disbursed.
Activities under the Additional Financing (AF) are progressing well. These include the second phase of
rehabilitation of the Balakhani landfill, the development of a national solid waste strategy, national
investment plan including six to eight feasibility studies and related environmental impact assessments,
and review and amendments to the legal framework governing the sector. Despite successful
implementation, the remaining time prior to project closure in September 30, 2016 will not be sufficient to
complete remaining activities. First, rehabilitation works at Balakhani slowed down considerably in the
first half of 2016 due to unfavorable weather conditions. Works are now back on track but will require
additional time to be finalized. Second, an area of 7ha in the southern part of the landfill originally planned
to be rehabilitated had been eliminated from the scope of works due to high bid prices. Project savings
following the devaluation of the local currency in December 2015 have now enabled this originally
planned work to be implemented. This work is expected to commence in June 2016 and be completed
around April 2017. Following completion of all civil construction, permits need to be obtained from
relevant state bodies for the operations of the new facilities - a process that may take several months of
reviews and approvals. Third, consultations with local authorities on the selection of locations for regional
landfill and transfer stations has taken longer than anticipated. The sites are now identified but the process
has delayed the preparation of the feasibility studies and investment plans. Finally, the review of the legal
framework has commenced, however, its finalization is linked to the drafting of the national strategy
which will outline the key objectives of the sector, and the translation of this strategy into legal terms.
Disbursements stand at $37.2 million, equivalent to 80 percent of the AF.
The Implementation Progress (IP) and progress towards achieving of the Project Development Objective
(PDO) are rated Satisfactory (S). Fiduciary arrangements continue to be satisfactory and there are no
outstanding audits. Environmental and social safeguards are also satisfactory.
C. Proposed Changes
Financing
Change in Loan Closing Date(s):
5
Explanation
The Ministry of Finance has requested the extension of the Closing date of ISWMP AF by eighteen
months, from September 30, 2016 to March 30, 2018. This will be the first extension of ISWMP AF
Closing date (ISWMP was restructured in June 2012 to add the AF; at the same time, ISWMP’s Closing
date was extended to match the Closing date of AF - September 30, 2016). Currently, ISWMP is fully
disbursed. ISWMP AF is 80 percent disbursed.
There are no changes to the PDO, indicators, targets or safeguards category. Extending the Project Closing
date will allow: (i) the completion of ongoing rehabilitation works at the Balakhani landfill, which had to
slow down considerably due to unfavorable weather conditions in the first part of 2016; (ii) rehabilitation
of 7 ha at the landfill, planned originally but excluded from the scope of works due to high bid prices; (iii)
for relevant permits to be obtained from state bodies for the operations at the landfill and related facilities,
following the completion of construction activities; (iv) the finalization of the preparation of the national
solid waste strategy, including investment plans, preparation of feasibility studies and environmental
impact assessments; and (v) the finalization of the review of the legal framework and proposals for
amendments of the enabling legal environment.
Proposed
Ln/Cr/T Original Previous Closing Current Proposed
Status Application
F Closing Date Date(s) Closing Date Closing Date
Deadline Date
IBRD-
Effective 30-Sep-2013 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Jan-2017
75490
IBRD-
Effective 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Mar-2018 30-Jul-2018
82740
6