The World Bank
Agricultural Productivity and Diversification (P115886)
REPORT NO.: RES48174
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
AGRICULTURAL PRODUCTIVITY AND DIVERSIFICATION
APPROVED ON MARCH 22, 2011
TO
MINISTRY OF ECONOMY AND FINANCE
AGRICULTURE AND FOOD
AFRICA WEST
Regional Vice President: Ousmane Diagana
Country Director: Coralie Gevers
Regional Director: Simeon Kacou Ehui
Practice Manager/Manager: Chakib Jenane
Task Team Leader(s): Erick Herman Abiassi
The World Bank
Agricultural Productivity and Diversification (P115886)
BASIC DATA
Product Information
Project ID Financing Instrument
P115886 Investment Project Financing
Original EA Category Current EA Category
Partial Assessment (B) Partial Assessment (B)
Approval Date Current Closing Date
22-Mar-2011 30-Sep-2021
Organizations
Borrower Responsible Agency
Ministere de l'Agriculture de l'Elevage de la Peche
Ministry of Economy and Finance
(MAEP)
Project Development Objective (PDO)
Original PDO
The Project Development Objective of the Agricultural Productivity and Diversification Project (PADA) is to restore and
improve productivity and value addition for selected value chains in the Recipient's territory.
OPS_TABLE_PDO_CURRENTPDO
Summary Status of Financing (US$, Millions)
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IDA-60130 14-Apr-2017 02-Jun-2017 28-Nov-2017 30-Sep-2021 45.00 43.02 5.45
IDA-48840 22-Mar-2011 07-Jun-2011 13-Mar-2012 30-Jun-2017 5.05 4.66 0
IDA-H6550 22-Mar-2011 07-Jun-2011 13-Mar-2012 30-Jun-2017 24.88 23.40 0
TF-99692 07-Jun-2011 07-Jun-2011 13-Mar-2012 31-May-2015 14.85 14.85 0
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
The World Bank
Agricultural Productivity and Diversification (P115886)
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING
1. The Additional Financing was approved on April 14, 2017 and became effective on November 28, 2017. The
current closing date of the Credit is September 30, 2021. The Project Development Objective is to restore and
improve productivity and value addition for selected value chains in the Recipient’s territory. The PDO Results
Indicators are the following: (i) Number of direct project beneficiaries, 40 percent of whom are women; (ii)
Quantities processed (milled rice, processed cashew, and pineapple juicing); (iii) Quantities exported (cashew
and pineapple); and (iv) Yields of rice, maize, pineapple, and cashew (tons/ha) and fish (tons/ha/year).
2. As of August 31, 2021, project progress towards achievement of development objectives was satisfactory and
all the PDO indicators were achieved. Project direct beneficiaries stand at 458,312 (40.25 percent of whom are
women) against an end of project target of 250,000. Quantities processed (milled rice, processed cashew, and
pineapple juicing) stand at 293,385 tons against an end of project target of 240,000 tons and quantities exported
(cashew and pineapple) stand at 477,405 tons against an end of project target of 350,000 tons. While yields stand
at 6.2 tons/ha for rice (against an end of project target of 5 tons/ha), 2.97 tons/ha maize (against an end of project
target of 3 tons/ha), 72 tons/ha for pineapple (against an end of project target of 70 tons/ha), 0.81 tons/ha for
cashew (against an end of project target of 0.8 tons/ha) and 6.5 tons/ha for fish (against an end of project 6
tons/ha). Concerning support for access to finance within the targeted beneficiaries, the project has successfully
funded through the matching grant and competitive funds about 317 sub projects (covering rice, fish farming,
cashew and pineapple value chains), of which 242 microprojects (against an end project target of 180), 52
innovative projects (against an end project target of 52), and 23 small and medium-level projects (against an end
project target of 20).
3. The Government of Benin through a letter dated February 11, 2020 has requested to reallocate part of the
undisbursed project proceeds to support the government response to COVID-19 in the agricultural sector and
mitigate the disruption of the domestic and export perishable food supply chains induced by the global pandemic.
The Benin Response Plan consists in developing and installing a temperature-controlled agricultural logistics
center at the Cotonou Airport that can respond to the COVID 19 challenges and handle exports / imports more
systematically and in elaborating a management system of the built Cold Storage Infrastructure.
4. Financial management and procurement, as well as environment and social safeguards compliance are
satisfactory. There is no pending audit report.
Rationale for the Restructuring
5. Despite significant progress made in implementing project activities related to construction of a temperature-
controlled agricultural logistics center at the Cotonou Airport, disbursement rate stands at 88.5% as of September
8, 2021 with US$5.9 million remaining to be disbursed. Considering the ongoing commitments on project
resources and the related additional induced disbursement estimates, it is highly unlikely that the credit proceeds
would be fully disbursed by project closing date of September 30, 2021.
The World Bank
Agricultural Productivity and Diversification (P115886)
6. The Government of Benin in a letter dated September 15, 2021, has therefore requested for a partial cancellation
of project proceeds to reallocate the released funds to other operations within the Benin Country portfolio in
response to the COVID 19 crisis. A reallocation of credit proceeds between categories is also needed because of
the proposed cancellation.
II. DESCRIPTION OF PROPOSED CHANGES
7. The main changes proposed in this restructuring are: (i) cancellation of funds: Cancellation of EUR
3,825,000 (US$ 4.5 million equivalent) from IDA Credit 60130-BJ as requested by Government. The discrepancy
observed between (i) requested converted amount of cancelation (US$ 4.5 million) and (ii) the difference between
current cost and proposed cost in the PAD (US$ 3.5 million), results from an exchange gain in converting EUR
to USD ; (ii) reallocation of funds between disbursement categories: Disbursement categories are being
adjusted as a result of the proposed cancellation to fit the new total financing amount; (iii) adjustment of costs
of project component : Cost of project components are also being adjusted (namely component 2) as a result of
the proposed cancellation to fit the new total financing amount.
8. There is no change in the project development objective, design, key performance indicators, and
implementation arrangement.
III. SUMMARY OF CHANGES
Changed Not Changed
Components and Cost ✔
Cancellations Proposed ✔
Reallocation between Disbursement Categories ✔
Implementing Agency ✔
DDO Status ✔
Project's Development Objectives ✔
Results Framework ✔
Loan Closing Date(s) ✔
Disbursements Arrangements ✔
Disbursement Estimates ✔
Overall Risk Rating ✔
Safeguard Policies Triggered ✔
The World Bank
Agricultural Productivity and Diversification (P115886)
EA category ✔
Legal Covenants ✔
Institutional Arrangements ✔
Financial Management ✔
Procurement ✔
Implementation Schedule ✔
Other Change(s) ✔
Economic and Financial Analysis ✔
Technical Analysis ✔
Social Analysis ✔
Environmental Analysis ✔
IV. DETAILED CHANGE(S)
OPS_DETAILEDCHANGES_COMPONENTS_TABLE
COMPONENTS
Current
Current Proposed Proposed
Cost Action
Component Name Component Name Cost (US$M)
(US$M)
Adoption of Improved Adoption of Improved
Technologies and Restoration of 23.00 No Change Technologies and Restoration 23.00
Productivity of Productivity
Development/rehabilitation of Development/rehabilitation of
Production and Market 25.00 Revised Production and Market 21.50
Infrastructures Infrastructures
Value Chain Coordination and Value Chain Coordination and
Access to Finance for Private 13.60 No Change Access to Finance for Private 13.60
Initiatives Initiatives
Sector Program Coordination and Sector Program Coordination
14.40 No Change 14.40
Project Management and Project Management
TOTAL 76.00 72.50
OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE
The World Bank
Agricultural Productivity and Diversification (P115886)
CANCELLATIONS
Value Reason
Current Cancellation New
Ln/Cr/Tf Status Currency Date of for
Amount Amount Amount
Cancellation Cancellation
IDA-48840- Repayi
XDR 3,241,814.35 0.00 3,241,814.35
001 ng
BORROWER'
S REQUEST
IDA-60130- Disburs
EUR 41,900,000.00 3,825,000.00 15-Sep-2021 38,075,000.00 FOR
001 ing
COUNTRY
REASONS
Fully
IDA-H6550-
Disburs XDR 16,017,434.99 0.00 16,017,434.99
001
ed
Fully
TF-99692-
Disburs USD 14,851,926.28 0.00 14,851,926.28
001
ed
OPS_DETAILEDCHANGES_REALLOCATION _TABLE
REALLOCATION BETWEEN DISBURSEMENT CATEGORIES
Financing %
Current Allocation Actuals + Committed Proposed Allocation
(Type Total)
Current Proposed
IDA-60130-001 | Currency: EUR
iLap Category Sequence No: 1 Current Expenditure Category: GDS,WKS,OP,NCS,CS excl A1,C1(iii)
37,900,000.00 31,112,117.56 34,075,000.00 100.00 100.00
iLap Category Sequence No: 2 Current Expenditure Category: Sub grants Parts A2B,B1A and C4i
4,000,000.00 3,895,429.43 4,000,000.00 100.00 100.00
Total 41,900,000.00 35,007,546.99 38,075,000.00
.