Document of
                                 The World Bank


                                                     Report No: 67872-CO




                             RESTRUCTURING PAPER

                                       ON A

                   PROPOSED PROJECT RESTRUCTURING
                                   OF
        THE NATIONAL DISASTER VULNERABILITY REDUCTION PROJECT
                            FIRST PHASE APL
                            LOAN IBRD-7293
                              MAY 10, 2005

                                      TO THE

                             REPUBLIC OF COLOMBIA


                                   MAY 10, 2012




Sustainable Development Department
Colombia and Mexico Country Management Unit
Latin America and the Caribbean Region
                    ABBREVIATIONS AND ACRONYMS

LA     Loan Agreement
MADS   Ministry of Environment and Sustainable Development (Ministerio de
       Ambiente y Desarrollo Sostenible)
RP     Restructuring Paper




                  Vice President:      Hasan Tuluy
                Country Director:      Gloria M. Grandolini
                  Sector Director:     Ede Jorge Ijjasz-Vásquez
                 Sector Manager:       Anna Wellenstein
               Task Team Leader:       Niels Holm-Nielsen
        NATIONAL DISASTER VULNERABILITY REDUCTION PROJECT

                   SUPPLEMENTARY RESTRUCTURING PAPER

SUMMARY AND PROJECT STATUS

  1. The World Bank approved on December 15, 2011, a Restructuring to the Loan
     Agreement (LA) for the National Disaster Vulnerability Reduction Project 7293-CO for
     an increase of the threshold of the Special Account from US$2 million to US$4.5 million.
     The corresponding amendment letter was signed by the Bank also on December 15, 2011
     and sent to the Republic of Colombia (the Borrower) for countersignature. The Bank did
     not receive a countersigned copy of the amendment letter within the established time
     frame of 90 days (by March 15, 2012), for which the offer of the amendment was
     withdrawn by the Bank. The signed originals of the expired amendment letter have been
     duly returned to the Bank but it has been agreed with the Borrower that a revised
     amendment letter be issued by the Bank.

  2. The authorities remain committed to the project and have requested that the Bank re-
     issues the amendment letter for an increase of the threshold of the Special Account. This
     increase will help the implementing agencies make progress on the commitments already
     established and achieve the investment objectives planned under the project period. The
     revised amendment letter reflects the changes approved in the restructuring paper dated
     December 15, 2011, and it also includes an additional change regarding the
     implementation arrangements, at the request of the Borrower, for Part D of the Project.

  3. The Operational Manual will be updated in a manner acceptable to the Bank to reflect the
     changes introduced by the Restructuring Paper dated December 15, 2011 and now
     included in this Restructuring Paper (RP).

  4. The project remains in good performance status as documented in the December RP. The
     current Implementation Summary Report (ISR) rating (February 13, 2012) is
     ‘Satisfactory’ for both the Progress towards achievement of the PDO and the Overall
     Implementation Progress (IP). Financial Management (FM) for the Project is currently
     rated as Moderately Satisfactory and Procurement is rated as Satisfactory. The
     undisbursed balance as of May 2, 2012 was US$18.37 million (16.7% of loan proceeds).

  5. This is a Level 2 Restructuring, and there is no change in the Project Development
     Objective (PDO) which continues to be achievable. No new or additional policies are
     triggered by this proposed restructuring.

  6. PROPOSED CHANGES

  7. Implementation Arrangements

  8. As a result of an internal restructuring process, component D of the Project (Enhanced
     Capacity to Promote Risk Awareness and Emergency Preparedness) will be implemented
     by the Ministry of Environment and Sustainable Development (MADS).

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9. The World Bank has concluded a Project implementation capacity assessment of the
   Ministry of Environment and Sustainable Development (MADS), which was considered
   acceptable to the Bank in terms of procurement and financial management, demonstrating
   sound capacity of MADS to implement Bank Projects.




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