$ Report No: RES00452 PROPOSED RESTRUCTURING OF GREAT LAKES TRADE FACILITATION AND INTEGRATION PROJECT APPROVED ON JUNE 9, 2022 TO COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA DEMOCRATIC REPUBLIC OF CONGO REPUBLIC OF BURUNDI Finance, Competitiveness and Innovation Eastern And Southern Africa The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) ABBREVIATIONS AND ACRONYMS BOP PCG Bottom of the pyramid partial credit guarantee scheme COMESA Common Market of Eastern and Southern Africa DRC Democratic Republic of Congo E&S Environmental and Social ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework GLTFP Great Lakes Trade Facilitation Project GLTFIP Great Lakes Trade and Integration Project IDA International Development Association M&E Monitoring and evaluation PAP Project affected people RAP Resetllement Action Plans SME Small and medium enterprises Regional Vice President: Victoria Kwakwa Regional Director: Hassan Zaman Acting Director for Regional Integration: Franz R. Drees-Gross Practice Manager: Consolate K. Rusagara Task Team Leader(s): Magueye Dia, Peter Ngwa Taniform The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P174814 Great Lakes Trade Facilitation and Integration Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Eastern and Southern Africa Approval Date Current Closing Date 09-Jun-2022 30-Jun-2028 Environmental and Social Risk Classification (ESRC) High Organizations Borrower Responsible Agency Common Market for Eastern and Southern Africa, COMESA Secretariat, Ministry of Trade, Transport, Industry and Democratic Republic of Congo, Republic of Burundi Tourism - Burundi, Unite de Gestion de Programme, DRC @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The development objective of the project is to facilitate trade and enhance the commercialization of selected value chains, primarily targeting small-scale and women traders in the borderlands of the Great Lakes Region. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 i The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) IDA 248.61 19.00 229.58 7.64 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................3 III. PROPOSED CHANGES ..............................................................................................................................................10 IV. DETAILED CHANGE(S) .............................................................................................................................................10 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Project status The Great Lakes Trade and Integration Project (GLTFIP, P174814) was approved on June 9, 2022, and is financed through an International Development Association (IDA) grant in the amount of US$90 million to the Republic of Burundi; an IDA grant and credit in the total amount of US$152 million to the Democratic Republic of Congo (DRC); and an IDA grant to the Common Market of Eastern and Southern Africa (COMESA) in the amount of US$8 million. The financing agreements were signed with all recipients of the financing and were declared effective for Burundi on December 2, 2022, and COMESA on October 19, 2022, and DRC on January 30, 2023, respectively. The project consists of the following components: (1) improvements to the policy and regulatory environment for cross-border trade, (2) improvements to core trade infrastructure, (3) support to commercialization of selected cross-border value chains, (4) support for implementation and monitoring and evaluation (M&E), and (5) contingent emergency response. After a slow start due to i) delays in project effectiveness, ii) weak institutional arrangements, and iii) weak technical teams, and following a level 2 restructuring in December 2023 to appoint a new implementing agency for the infrastructure component in the DRC and the strengthening of project teams in both Burundi and DRC, the pace of project implementation is fast improving. Technical studies are currently being finalized, and civil works for 60 percent of the core trade infrastructure will be launched in 2025, with an average duration of 9 months. Subject to improved operational environment in the Eastern part of DRC, the infrastructure component, which represents 60 percent of the project, should therefore be completed and fully disbursed by the end of FY27, one year before the end of the project. Implementing partners for the grant mechanism have been recruited, and support for small-scale traders’ associations will be disbursed before the end of FY26 if security conditions on the ground is favorable. Under favorable conditions, the disbursement rate is expected to rise from 7 percent on July 31, 2024, to 20 percent in June 2025, and to almost 60 percent by the end of 2026. Overall, the project is still on track to meet its development objective. The latest ISR, submitted in September 2024, rates progress toward PDO as Satisfactory, while implementation progress is rated Moderately Satisfactory. Environmental and Social (E&S) performance is also rated Moderately Satisfactory. Rationale for restructuring This Restructuring Paper seeks approval for the proposed changes in the cost of components and reallocation of resources between categories and components to support: i) completion of outstanding activities of the Great Lakes Trade Facilitation and Integration Project (GLTFIP) that closed on June 30, 2024.; ii) implementation of some of the GLTFIP’s Resettlement Action Plans; iii) development of new infrastructure to facilitate trading of goods in and around nearby borders in Goma, DRC; and iv) provision of financial products and services to traders’ associations. These adjustments are expected to address bottlenecks, accelerate implementation progress towards development objectives in terms of trade infrastructure and capacity, and boost disbursement, subject to normalization of operating conditions in the Eastern DRC provinces. The proposed restructuring marks the second significant change on the project, following closely on the heels of the first level 2 restructuring approved in December 2023. This initial restructuring allowed for pivotal changes in the Implementing agency, specifically transferring the responsibility of the implementation of component 2 from the Infrastructure Unit (Cellule Infrastructure) under the Ministry of Infrastructure to the Project Implementation Unit (PIU) under the Ministry of Commerce. This accelerated the preparatory studies and the procurement of cross-border infrastructure funded by the project. Completion of outstanding activities of the Great Lakes Trade Facilitation Project (GLTFP, P151083) : The Great Lakes Trade Facilitation Project (GLTFP, P151083), was initiated to enhance cross-border trade in the Great lakes region, specifically targeting the Democratic Republic of Congo (DRC), Rwanda and Uganda. Approved by the World Bank Board Page 1 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) of Executive directors on September 25, 2015, the project concluded on June 30, 2024. The GLTFP aimed to facilitate commerce and reduce trade costs, particularly benefiting small-scale and women traders. The GLTFP and GLTFIP share aligned objectives and activities. The GLTFP included civil works for constructing a border post at Petite Barrière in Goma and implementing the Resettlement Action Plan (RAP) to support those affected by the construction. The construction of the border post at Petite Barrière faced significant delays due to inadequate monitoring by the delegated contracting authority, shortcomings by the construction firm, and the volatile security situation in North Kivu. As a result, only 30 percent of the construction was completed by the project's closing date. An action plan with revised timelines to finalize the construction work at Petite Barrière has been developed and the GLTFIP will provide the necessary resources for completing the infrastructure. Additionally, while the Congolese government has committed to financing rehabilitation of a section of the access road to the border post, which is essential to prevent traffic congestion and ensure smooth operation, the necessary funds have not yet been mobilized. This delay poses a risk that the road will not be completed before the new border post opens. The proposed restructuring will avail financing for the access road rehabilitation and fund to support the implementation of the Livelihood Restoration Plan (LRP) for Project Affected People (PAP) impacted by the construction of the Petite Barrière border post. Implementation of selected GLTFIP’s Resettlement Action Plans: The government of DRC has recently been unable to secure counterpart funds for RAP implementation across the portfolio. As a result, civil works in several projects have been delayed, and sometimes dropped. The GLTFIP is no exception to this situation. To avoid further delaying the start of the main component of the project (more than 60% of project proceeds) Government has obtained World Bank approval to use GLTFIP project proceeds to complement the financing of these RAPs that were supposed to be funded by the government. The proposed restructuring will reallocate US$ 7.9 million from category 2 to a new category dedicated to the payment of compensation for selected RAPs under the project. Implementation of the RAPs will be subject to to suitable conditions on the ground. Development of new infrastructure to facilitate trading of goods near borders in Goma: Cross-border traders suffer from lack of infrastructure as they cannot travel long distances to other markets due to the volatile security situation in North Kivu. It was agreed with local authorities and traders’ associations to support under the GLTFIP the construction of a cross- border market in Goma to facilitate the buying and selling of goods for traders operating close to the border. Coupled with the construction of a modern border post at Petite Barriere, this new infrastructure will establish Goma as a trade center, boosting the volume of goods traded with Rwanda and other neighboring countries. Provision of financial products and services to traders’ associations: In addition to the grants provided to traders' associations and cooperatives under Component 3 of the GLTFIP for developing facilities and acquiring equipment, it is proposed to add a guaranteed mechanism to facilitate access to microcredit for individual women traders who are not members of associations and cooperatives, and thus not beneficiaries of the grant program. The new activity aims to empower women traders, enabling them to grow their businesses and engage more fully in cross-border trade. This activity aligns with the overall project objectives by fostering greater economic participation, particularly among women, and supporting sustainable trade and economic development. To secure the necessary resources for the financing of the new activities, the proposed restructuring will cancel the construction of the market in Bunagana, which is still occupied by the rebels, and the construction of the border post in Kiliba, for which the government was unable to secure the land. These activities will be reconsidered during project implementation if the situation evolves. Additionally, capacity building activities under component 1 and 3 will be reduced, as well as support to some institutions that will benefit from other projects in the portfolio. The proposed changes will not impact the project development objectives or the results framework: Activities being discontinued will be replaced by similar ones. For instance, the Bunagana market, which is currently not feasible due to the lack of available land and the occupation by rebels, will be replaced by the Goma market if the security situation in Page 2 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) the province improves. Furthermore, the funds originally allocated for the Kiliba border post, which cannot proceed due to the government's inability to secure the land, will now be redirected towards the completion of the Goma border post initiated under the now closed Great Lakes Trade Facilitation Project. Any budget reductions for certain activities will be offset through synergies with other projects or components of the Great Lakes Trade Facilitation and Integration Project (GLTFIP) ensuring continued alignment with the overall project objectives. Maximizing flexibility and strengthening risk management to ensure progress amidst institutional disruptions and increased volatility in Eastern DRC: The dramatic acceleration in the M23 offensive since December 2024 has led to a spike in violence and the establishment of parallel administrative structures in large swathes of North and South Kivu, including Goma and Bukavu. This has increased humanitarian needs, disrupted development activities, and stifled the local economy. Moving forward, based on a close monitoring of the situation on the ground and on central authorities’ guidance, the project will adapt implementation on an iterative basis, including flexibility to adjust timelines and sequencing, pause activities, and even consider fit-for-purpose operational partnerships as needed. The project’ security risk assessment and security management plan are being updated, and a contractor’s self-assessment is underway for the Petite Barriere border post. The project is also prepared to increase reliance on GEMS and diversify supervision approaches (such as third-party monitoring) if field visits remain constrained. Moreover, subject to a normalization of current banking and financial sector disruptions the restructuring will facilitate the rapid establishment of a partial portfolio credit guarantee to improve access to microcredit and support recovery for small-scale traders impacted by the conflict. II. DESCRIPTION OF PROPOSED CHANGES The proposed Level 2 restructuring is in response to the DRC government request as of February 9, 2025, and the recommendations of the Aide-memoire of the November 25, 2024, Implementation Support Mission. It includes the following changes: i. changes in the cost of components through: (a) addition of new activities in Component 2 “Improving core trade infrastructures”, and Component 3 “Supporting commercialization of selected cross-border value chains”; (b) addition of new subcomponent 2.5 to carry over unfinished safeguards activities of the recently closed GLTFP, (c) dropping or scaling down existing activities from Components 1 and 3 to mobilize needed resources to finance the proposed new activities, ii. changes in categories by introducing new category for RAP compensation, and reallocation between categories. A. Changes in components The changes in Component 1, “Improving policy and regulatory environment for cross-border trade,” include reducing the budget from US$23.5 million to US$11.5 million. To achieve this, the following activities will be scaled down or canceled: i. Supporting COVID-19 post-pandemic recovery of small-scale traders will be canceled, as this is no longer relevant. The initial goal of this initiative was to provide technical and financial support to small-scale traders to alleviate the impact of the pandemic on their activities. However, as the economy recovers and other support mechanisms (e.g. grant mechanism under component 3) are now in place, the necessity for this specific support has diminished. Resources originally allocated for this purpose will be redirected to other pressing needs under Component 2, ensuring that the project remains adaptive and responsive to the current socio-economic context of the DRC. ii. Costs of implementing a joint smart border system with Burundi will be minimized for the DRC by building synergies with Burundi in the development of the system. This collaborative approach ensures that Burundi will bear most of Page 3 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) the costs associated with the development of the common parts of the system, such as the core infrastructure and software development. Meanwhile, the DRC will focus on financing the adaptation of the system to its specific environment and the integration with its existing infrastructure. The changes in Component 2. Improving core trade infrastructures consist of adding to the project the construction of infrastructure in North Kivu province and support to the implementation of RAPs in targeted sites of the project: Subcomponent 2.1: Rehabilitation and modernization of border posts. The project will support the finalization of the civil works for a border post at “Petite Barrière” initiated under the GLTFP AF. Once completed and equipped with state-of- the-art surveillance and control equipment, the new facilities will significantly improve border management and facilitate border crossing for goods and people. The estimated costs amount to US$6 million. Improvements to Kiliba border post (US$2.5 million) envisioned at appraisal stage will be cancelled due to lack of allocated land. Subcomponent 2.2: Construction and development of border markets. The project will support the construction of a cross- border market in Goma through the provision of consultancy services for technical assistance, works contracts and goods. The estimated costs amount to US$5.7 million. The market is expected to facilitate smoother trade operations, promote economic growth, and enhance livelihoods by providing a well-structured and secure environment for trading activities. Additionally, the construction of a cross-border market in Bunagana, initially estimated at US$2 million, will be dropped. Subcomponent 2.3: Construction and rehabilitation of local access roads. This sub-component will finance the upgrading of the last segment of the existing access road to the Petite Barrière Border post covering 300 meters from the Boulevard Kasimbi to the Petite Barrière border post. The estimated cost for this activity amounts to US$1.5 million. Upgrading this access road is crucial for ensuring smooth and efficient movement of goods and people to and from the border post. Improved road infrastructure will reduce transportation costs, decrease travel time, and enhance overall trade efficiency in the region. Subcomponent 2.4: Implementation of Resettlement Action Plan. This new subcomponent will fund: i) the implementation of RAPs and other related activities at the following locations: Kavimvira-Uvira, Kamanyola (Border Post and Market), Idjwi, Rubenga, Kasindi (Market), and Bukavu (Market), and ii) the implementation of the Post Closure Action Plan (PCAP) for the Great Lake Trade and Facilitation Project – AF (P178681) (GLTFP). This includes costs associated with implementing the Livelihood Restoration Plan (LRP) for Project Affected People (PAP) impacted by the construction of the Petite Barrière border post, estimated at US$1.5 million. The total cost of the proposed activities is estimated at US$7.9 million. As part of the proposed restructuring, a new category will be established specifically for the payment of compensations under the selected Resettlement Action Plans (RAPs). The PIU will form an oversight steering committee for each RAP and report bi-annually to the WB and stakeholders. Staff, competitively selected for their expertise in social risk management, will handle the following responsibilities: (i) implement RAPs per all key requirements; (ii) ensure compliance with the environmental and social framework and WB standards; (iii) monitor and evaluate the project; (iv) organize public consultations; (v) address stakeholder comments and disputes; and (vi) ensure final and effective compensation payments. The changes in Component 3. Supporting commercialization of selected cross-border value chains include introducing a new subcomponent aimed at enhancing financial inclusion and access to finance for women involved in cross-border trade, associations, or cooperatives. Furthermore, activities under sub-components 3.2 and 3.3 will be scaled down to leverage synergies with other components of the project or other initiatives within the DRC portfolio. Sub-component 3.1: The strategy for export promotion support will transition to focus more heavily on more cost- effective digital marketing solutions rather than traditional export promotion events (such as fairs). The initial allocation of $2 million will be reduced to $1 million, reflecting the cost savings associated with the shift to digital marketing. Page 4 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Sub-component 3.2 – At appraisal, the activities for this sub-component included: i) supporting innovative product labeling with QR codes or barcodes; ii) certifying agencies; and iii) accrediting relevant agencies. This support will be adjusted to align with financial contributions from the DRC TRANSFORME project (P178176) for similar activities. Consequently, the original budget allocation for this sub-component will be reduced by USD 2 million. Sub-component 3.3: Financial inclusion (US$1 million). The new activity will finance a specific bottom of the pyramid partial credit guarantee scheme (BOP PCG) (estimated at US$1 million) targeted at the women cross-border traders, associations and/or cooperatives at the bottom of the pyramid, at one or more of the financial institutions focusing on financing women entrepreneurs. Access to this facility shall be through solidarity / self-help groups or cooperatives whereby the members offer a joint or group guarantee for each credit facility. To ensure the prudent management of the BOP PCG facility, the lending financial institution shall share the risk at 40/60 ratio. Loan amounts would vary from US$200 to US$2,500 per person in the group. This facility shall be managed in accordance with a Partial Portfolio Credit Guarantee (PPCG) Fund manual with the Intermediary Financial Institution (IFI) as FPM SA1 (which is currently managing the PPCG Fund set up by the World Bank TRANSFORME project). Only Participating Financial Intermediary (PFIs) that are ESS9 compliant shall be eligible. During the implementation phase over the life of the project, monthly reports shall be sent to both the PIU and the World Bank. At the closure of the project, the Ministry of Finance (with the Cellule de Suivi des Projets au Programme) shall oversee the continuation of the use of this facility. Improving access to capital allows women- led businesses to invest in expanding their operations and subsequently enhance their profitability. The success of the new activity will be measured through the existing key indicator of percentage change in the profit margin for supported women-led value chains. The changes in Component 4 consist of reducing operating and communication costs as well as streamlining monitoring and evaluation expenditures. More specifically, the Kinshasa liaison office will be closed. The PIU will partly rely on communication and M&E tools developed by COMESA to allow reallocation of a portion of dedicated proceeds to component 2. Limited reallocations will remain possible should remote M&E approaches be strengthened Environmental and Social Aspects: The new activities that are added to components 2 and 3 are likely to generate environmental and social risks and impacts. The environmental risk rating of these new activities is considered Substantial. Regarding the rehabilitation and modernization of border post at ''Petite Barrière'', civil works are already underway in the field in accordance with the ESIA/ESMP that had already been prepared and the site ESMP prepared by the contractor. No major environmental issues are raised by the client. Regarding the construction of a cross-border market in Goma and the upgrading of the last segment of the existing access road to the Petite Barrière Border post, appropriate instruments shall be prepared according to the risk of these activities (ESIA or ESMP). The ESCP shall be updated to reflect these instruments and the timeframe. Concerning the financial inclusion through PPCG managed by FPM SA, the ESCP shall be updated to reflect the relevance of the Environmental and Social Standard 9 (ESS9) and the required actions/measures as this activity involves financial institutions (FIs). FPM SA has already established an ESMS, which is operational under the WB TRANSFORME Project. The client shall ensure that only PFIs that compliant with ESS9 are eligible under this activity. Under ESS4, the Security Risks Assessments/Security Management Plans are being updated to analyze and mitigate evolving security risks. Table 1 summarizes the changes in allocation of resources between components. Table 1: Changes in allocation of resources between components 1 FPM is a specialized financial institution licensed by the Central Bank Page 5 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Initial Allocation Revised Allocation Summary of changes Component and sub-component (US$ million) (US$ million) Component 1: Improving policy and regulatory environment for cross-border trade - dropping support to post covid recovery of 1.1 Policy reform and Simplification of small-scale trade 12.5 6.5 procedures for small scale traders -scaling down capacity building for border agencies -reduce budget and build 1.2 Implementation of smart border systems 11 5 synergies with Burundi 1.3 Coordination and Monitoring Regional Integration Sub-total 23.5 11.5 Component 2: Improvements to core trade infrastructure -finalization of the Goma border post initiated under the now closed 2.1 Rehabilitation and modernization of 28 31.5 GLTFP (P151083) border posts -dropping of Kiliba Border post due to unavailability of land -construction of Goma cross-border market 2.2 Construction and development of border -dropping of Bunagana 11 14.7 markets market because of deteriorating security reasons, 2.3 Improvement of lake ports 30 30 -expansion of the last 2.4 Rehabilitation of local access roads 20.5 22 mile of the access road to the Goma Border post -New component to finance implementation 2.5 Implementation of RAPs 6.3 of selected RAPs under the GLTFIP Sub-total 89.5 104.5 Component 3: Support to commercialization of cross-border value chains 3.1 Investments in facilities to add value to -Introduction of BOP 15.5 16.5 products Guarantee scheme -activities adjusted to use 3.2 Promoting export of selected products 4.5 3.3 cost-effective digital marketing tools instead Page 6 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) of traditional marketing events -Activities Scaled down to account for funding 3.3 Labelling, certification, and conformity of for similar activities 6 4 selected products provided by TRANSFORME. - 3.4 Financial inclusion - 0.2 Sub-total 26 24 Component 4: Implementation and monitoring and evaluation -Scaling down of communication activities 4.1 Implementation support and 9.5 to rely more on COMESA 10 communication funded communication tools - Scaled down to build 4.2 Project M&E 3 2.5 synergies with COMESA Sub-total 13 12 Component 5: Contingent Emergency 0 0 Response Total 152 152 B. Changes in disbursement categories Due to addition of new sub-component 2.5 to finance RAPs – the disbursement category 10 will be added in the amount of US$7.9 million. In addition, due to changes in cost of components – the following changes in the categories will be affected: Revised Percentage of Amount of Amount of Amount of Expenditures to be the Credit the Grant Amount of the Grant the Credit Financed Category Allocated Allocated Allocated (expressed Allocated (expressed (expressed in SDR) (expressed in (inclusive of Taxes) in USD) in SDR) USD) (1) Goods, works, non- consulting services and consulting services for 100% (50% Credit / 13,500,000 9,300,000 10,054,000 6,926,010 Parts 1.2, 3.1(ii), 3.2, 50% Grant) 3.3 and 3.4 of the Project Page 7 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) (2) Goods, works, non- consulting services, consulting services, 100% (50% Credit / 6,250,000 3,250,000 4,655,000 2,420,380 Operating Costs and 50% Grant) Training for Part 1.1 the Project (3) Operating Costs and Training for Part 4 of the Project (with 100% (50% Credit / 3,500,000 3,250,000 2,606,013 2,420,380 respect to Parts 1.1, 50% Grant) 1.2 and 3 of the Project) (4) Goods, works, non- consulting services and 100% (50% Credit / 42,325,000 46,675,000 31,521,000 34,760,377 consulting services for 50% Grant) Part 2 of the Project (5) Operating Costs and Training for Part 4 100% (50% Credit / of the Project (with 3,000,000 2,750,000 2,234,000 2,048,014 50% Grant) respect to Part 2 of the Project) 100% (50% Credit / (6) Sub-grants 5,000,000 5,000,000 3,724,000 3,724,000 50% Grant) (7) Emergency 100% (50% Credit / 0 0 0 0 Expenditures 50% Grant) Amount payable (8) Refund of pursuant to Section 2,425,000 2,425,000 1,805,987 1,805,987 Preparation Advance 2.07 (a) of the General Conditions 0 100% (50% Credit / 200,000 148,945 (9) Guarantee funds 0 50% Grant) (10) Cash payments to Affected Persons under the Idjwi, Rubenga, Kamanyola, 0 3,150,000 0 2,345,907 0 Kavimvira, Kasindi and Bukavu RAPs and other related resettlement-related compensation and Page 8 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) for restoration of livelihood for Part 2 of the Project 100% (50% Credit / TOTAL AMOUNT 76,000,000 76,000,000 56,600,000 56,600,000 50% Grant) C. Changes in Result Framework The outcome indicators will remain unchanged under the proposed restructuring. The baseline study carried out during the COVID period is currently being updated to reflect changes that have occurred post COVID. The baseline values and targets of some indicators will be updated based on the results of the new baseline study and the proposed restructuring of the project. Summary of Performance of E&S Risk Compliance The project's environmental and social (E&S) compliance performance is Moderately Satisfactory at this stage. For the DRC and Burundi, all the required E&S instruments have been prepared and disclosed in-country and on the World Bank's external website. These include the Environmental and Social Management Framework (ESMF), the pest management plan (as part of the environmental and social management framework), the strategic reference framework, the integrated protection framework, the Environmental and Social Impact Assessment (ESIA) for the Kavimvira, Vugizo, Gatumba border post, and the ESIA and Resetllement Action Plan (RAP) for the rehabilitation of the Kavimvira-Uvira road, Gatumba Vugizo road, the rehabilitation of Rumonge Port (Burundi). Although the project is already effective, no activities likely to have significant environmental and social risks and impacts have yet started on the ground. For the new activities resulting from the restructuring, E&S due diligence will be conducted and appropriate E&S measures will be put in place before the start of implementation. Fiduciary: There are no outstanding interim financial reports (IFR) and the latest external audit issued an unqualified opinion on 2023 PFS. However, some shortcomings were highlighted in the last FM supervision report (Oct. 2024) mainly : (i) inconsistencies in the trial balance and asset file; (ii) delay on advances justification; (iii) internal audit reports are transmitted with delay and (iii) supervision/ audit recommendations are not fully implemented. There will be no changes to fiduciary arrangements arrangement (financial reporting and disbursements). For the PPCG fund, there are sufficient risk mitigation measures hat that will be implemented: The PPCG Fund has already been set up and functioning under another project financed by the WB (TRANSFORME – P178176). Under this project (GLTFIP), a separate window shall be established to cater to the eligible beneficiaries of the project. Therefore, the existing oversight mechanisms for the PPCG Fund shall equally apply to this window and will be described in the PPCG manual to be established for the GLTFIP. Page 9 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) The FPM SA of the existing fund will continue to monitor the window to be established under GLTFIP following the restructuring The adoption of the PPCG fund manual will be a disbursement condition for the PPCG disbursement category @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Reallocations Yes Risks Yes Loan Closing Date Extension No Conditions Yes Loan Cancellations No Components Yes Financial Management No Development Objective No Procurement No Summary Description No Institutional Arrangement No (Operation Abstract) Legal Operational Policies No Implementation Schedule No MFD/PCE No Legal Covenants No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COMPONENTS Current Current Proposed Proposed Cost Action Component Name Cost (USD) Component Name (USD) Page 10 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Component 2: Improving Component 2: Improving Core 147,500,000.00 Revised 162,500,000.00 Core Trade Infrastructure Trade Infrastructure Component 4: Supporting Component 4: Supporting Implementation and 22,000,000.00 Revised Implementation and 21,000,000.00 Monitoring and Evaluation Monitoring and Evaluation Component 3: Supporting Component 3: Supporting Commercialization of 37,500,000.00 Revised Commercialization of Selected 35,500,000.00 Selected Cross-border Value Cross-border Value Chains Chains Component 1. Improving Component 1. Improving Policy and Regulatory Policy and Regulatory 43,000,000.00 Revised 31,000,000.00 Environment for cross Environment for cross border border trade trade Component 5: Contingent Component 5: Contingent 0.00 No Change 0.00 Emergency Response Emergency Response TOTAL 250,000,000.00 250,000,000.00 COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Reallocations IDA-71500-001 Cancellations (if any): New Allocation: Currency: USD 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,W,N/CS 13,500,000.00 1,324,783.84 9,300,000.00 50.00 50.00 PT1.2,3.1ii,3.2,3.3&3. 4; Page 11 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) 2 G,W,N/CS,OC&T 6,250,000.00 430,178.29 3,250,000.00 50.00 50.00 PT1.1; 3 OC&T P4(with 3,500,000.00 1,753,077.61 3,250,000.00 50.00 50.00 respect P1.1,1.2 & 3)); 4 G,W,N/CS P2; 42,325,000.00 556,150.05 46,675,000.00 50.00 50.00 5 OC&T P4 (with 3,000,000.00 330,485.54 2,750,000.00 50.00 50.00 respect P2); 6 SUB-GRANTS; 5,000,000.00 0.00 5,000,000.00 50.00 50.00 7 EMERGENCY 0.00 0.00 0.00 50.00 50.00 EXPENDITURES; 8 PPF REFINANCING; 2,425,000.00 171,594.00 2,425,000.00 0.00 50.00 Total 76,000,000.00 72,650,000.00 IDA-E0700-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,W,N/CS,OC&T 15,261,100.00 1,218,688.95 0.00 100.00 0.00 P1.2,3.1ii-4,4.1i-2; 2 G,W,N/CS,OC&T 4,838,900.00 161,323.05 0.00 100.00 0.00 P1.1; 3 G,W,N/CS,OC&T P2 39,763,000.00 1,597,833.78 0.00 100.00 0.00 (exc 2.2ii(2)); 4 G,W,N/CS,OC&T 1,602,800.00 0.00 0.00 100.00 0.00 P2.2ii(2); 5 SUB-GRANTS; 2,977,767.00 0.00 0.00 100.00 0.00 6 EMERGENCY 0.00 0.00 0.00 100.00 0.00 EXPENDITURES; 7 RESETTLEMENT 323,100.00 6,554.33 0.00 100.00 0.00 COSTS; 8 PPF REFINANCING; 2,233,333.00 1,613,551.39 0.00 0.00 0.00 Total 67,000,000.00 0.00 IDA-E0710-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Category Expenditure Current Actuals + Proposed Financing % No. Category Allocation Committed Allocation (Type Total) Page 12 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Current Proposed 1 G,W,N/CS 10,054,000.00 803,376.07 0.00 50.00 0.00 PT1.2,3.1ii,3.2,3.3&3. 4; 2 G,W,N/CS,OC&T 4,655,000.00 422,491.53 0.00 50.00 0.00 PT1.1; 3 OC&T P4(with 2,606,013.00 1,435,757.38 0.00 50.00 0.00 respect P1.1,1.2 & 3); 4 G,W,N/CS P2; 31,521,000.00 417,768.02 0.00 50.00 0.00 5 OC&T P4 (with 2,234,000.00 165,596.19 0.00 50.00 0.00 respect P2); 6 SUB-GRANTS; 3,724,000.00 0.00 0.00 50.00 0.00 7 EMERGENCY 0.00 0.00 0.00 50.00 0.00 EXPENDITURES; 8 PPF REFINANCING; 1,805,987.00 0.00 0.00 0.00 0.00 Total 56,600,000.00 0.00 IDA-E0760-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G, W, N/CS, OC&T 6,000,000.00 841,201.50 0.00 100.00 0.00 PT1.3, 4.1.I & 4.2; Total 6,000,000.00 0.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Last Approved Risk Category Proposed (ISR Seq. 03) - 07 Oct 2024 Political and Governance Substantial Substantial Macroeconomic Substantial Substantial Sector Strategies and Policies Moderate Moderate Technical Design of Project or Substantial Substantial Program Institutional Capacity for High High Implementation and Sustainability Page 13 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Fiduciary Substantial Substantial Environment and Social High High Stakeholders Substantial Substantial Overall High High ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Conditions Type Description of Conditions Action Burundi: The Recipient has adopted the Project Implementation Manual in accordance with the Effectiveness No Change provisions of Section I.B of Schedule 2 to the Financing Agreement (Section 5.01(a) of the Financing Agreement). Burundi: The Recipient, through the MTTIT, has established a Steering Committee in accordance with Effectiveness No Change Section I.2 of Schedule 2 to the Financing Agreement (Section 5.01(b) of the Financing Agreement). Burundi: The Recipient has transferred the tutelage of Effectiveness the PIU from the MFBEP to the MTTIT (Section 5.01(c) of No Change the Financing Agreement). Burundi: No withdrawal shall be made under Category (2) unless a bilateral agreement between the Participating Countries on simplification of procedures Disbursement No Change for small-scale traders and policy reform has been signed and is in effect (Section III.B.1(b) of Schedule 2 to the Financing Agreement). Burundi: No withdrawal shall be made under Category (4) unless the resettlement action plan for the Rumonge Disbursement border market has been prepared and implemented with No Change the Recipient’s funds (Section III.B.1(c) of Schedule 2 to the Financing Agreement). Burundi: No withdrawal shall be made under Category (5) unless the Sub-grants Manual has been prepared and Disbursement adopted in accordance with Section I.C.3.a of Schedule 2 No Change to this Agreement (Section III.B.1(d) of Schedule 2 to the Financing Agreement). Page 14 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Burundi: No withdrawal shall be made for Emergency Expenditures under Category (6), unless and until all of the following conditions have been met in respect of said expenditures: (i) (A) the Recipient has determined that an Eligible Crisis or Emergency has occurred, and has furnished to the Association a request to withdraw Disbursement Financing amounts under Category (5); and (B) the No Change Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (ii) the Recipient has adopted the CERC Manual and Emergency Action Plan, in form and substance acceptable to the Association (Section III.B.1(e) of Schedule 2 to the Financing Agreement). DRC: The Recipient has adopted the Project Implementation Manual in accordance with the Effectiveness No Change provisions of Section I.B of Schedule 2 to the Financing Agreement (Section 5.01(a) of the Financing Agreement). DRC: The Recipient, through the MoC, has established a Steering Committee in accordance with Section I.2 of Effectiveness No Change Schedule 2 to the Financing Agreement (Section 5.01(b) of the Financing Agreement). DRC: The Recipient, through the MoC, has: (i) established the Project Implementation Unit; and (ii) has recruited for the Project Implementation Unit the following additional staff with qualifications, experience and under terms of reference satisfactory to the Effectiveness No Change Association: a national coordinator, a Project manager for trade, monitoring and evaluation specialist and a communication expert; all in accordance with Section I.A.1.a. of Schedule 2 to the Financing Agreement (Section 5.01(d) of the Financing Agreement). DRC: The Recipient, through the MIPW, has recruited the following additional staff with qualifications, experience and under terms of reference satisfactory to Effectiveness No Change the Association: a gender-based violence specialist and a security specialist (Section 5.01(e) of the Financing Agreement). DRC: No withdrawal shall be made under Category (2) unless a bilateral agreement between the Participating Countries on simplification of procedures for small-scale Disbursement No Change traders and policy reform has been signed and is in effect (Section III.B.1(b) of Schedule 2 to the Financing Agreement). Page 15 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) COMESA: The Recipient has appointed an interim Project coordinator with qualifications, experience and Effectiveness No Change under terms of reference satisfactory to the Association (Section 5.01(c) of the Financing Agreement). DRC: No withdrawal shall be made under Category (6) unless the Sub-grants Manual has been prepared and Disbursement adopted in accordance with Section I.C.3.a of Schedule 2 No Change to this Agreement (Section III.B.1(c) of Schedule 2 to the Financing Agreement). COMESA: The Recipient has established the Project Steering Committee in accordance with Section I.A.3 of Effectiveness No Change Schedule 2 to the Financing Agreement (Section 5.01(c) of the Financing Agreement). DRC: No withdrawal shall be made for Emergency Expenditures under Category (7), unless and until all of the following conditions have been met in respect of said expenditures: (i) (A) the Recipient has determined that an Eligible Crisis or Emergency has occurred, and has furnished to the Association a request to withdraw Disbursement Financing amounts under Category (5); and (B) the No Change Association has agreed with such determination, accepted said request and notified the Recipient thereof; and (ii) the Recipient has adopted the CERC Manual and Emergency Action Plan, in form and substance acceptable to the Association (Section III.B.1(d) of Schedule 2 to the Financing Agreement). COMESA: The Recipient has adopted the Project Implementation Manual in accordance with the Effectiveness No Change provisions of Section I.B of Schedule 2 to the Financing Agreement (Section 5.01(a) of the Financing Agreement). COMESA: The Recipient has established the Technical Committee in accordance with Section I.A.4 of Schedule Effectiveness No Change 2 to the Financing Agreement (Section 5.01(d) of the Financing Agreement). DRC: No withdrawal shall be made under Category (11) unless the PPCG Manual has been prepared and adopted Disbursement New in accordance with Section I.F.4 of Schedule 2 to the Financing Agreement Page 16 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) RESULTS COUNTRY: Burundi, Congo, Democratic Republic of Great Lakes Trade Facilitation and Integration Project @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes To facilitate trade and enhance the commercialization of selected value chains in the GLR. Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Average time for traders to cross at 37.28 Mar/2021 37.28 31-Aug-2024 37.28 31-Aug-2024 18.00 Jun/2028 targeted border crossings Comments on achieving targets Time taken to complete formalities on both sides of the border, for individuals (Minutes) Of which for female traders 40.00 Mar/2022 40.00 31-Aug-2024 40.00 31-Aug-2024 18.00 Jun/2028 (Minutes) Quality of public services–degree of 67.00 Feb/2021 67.00 31-Aug-2024 67.00 31-Aug-2024 90.00 Jun/2028 satisfaction with border management Comments on achieving targets Perception of traders regarding the quality of services provided by border agencies services (Percentage) Of which for female traders 64.00 Mar/2022 64.00 31-Aug-2024 64.00 31-Aug-2024 90.00 Jun/2028 (Percentage) 34,000,000.00 Feb/2021 34,000,000.00 31-Aug-2024 34,000,000.00 31-Aug-2024 50,000,000.00 Jun/2028 Value of trade through targeted trade infrastructure (Amount(USD)) Comments on achieving targets Value of goods handled through core border post and port infrastructure Change in value of final products 0.00 Feb/2021 0.00 31-Aug-2024 0.00 31-Aug-2024 15.00 Jun/2028 traded by beneficiary traders Comments on achieving targets Percentage change in value of final products traded by beneficiary traders associations on regional markets - associations on regional markets gender differentiated (Percentage) Of which for female traders 0.00 Mar/2022 0.00 31-Aug-2024 0.00 31-Aug-2024 15.00 Jun/2028 (Percentage) Page 17 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Intermediate Results Indicators by Components Component 2: Improving Core Trade Infrastructure Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Feb/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 40,000,000.00 Jun/2028 Value of goods handled at improved ports (Amount(USD)) Comments on achieving targets Throughput of each port improved by the project. Change in average number of traders 0.00 Feb/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 25.00 Jun/2028 processed through the borders (%) Comments on achieving targets Annual average daily number of traders passing through border post. (Percentage) Value of goods handled at improved 34,000,000.00 Nov/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 50,000,000.00 Jun/2028 border crossing points Comments on achieving targets Value of exports handled at the border. (Amount(USD)) Component 4: Supporting Implementation and Monitoring and Evaluation Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Feb/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 3.00 Jun/2028 Project communications strategy developed and executed (Number) Comments on achieving targets Number of communications strategies adopted for implementation. 0.00 May/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 1.00 Jun/2028 COMESA regional M&E platform operationalized (Number) Comments on achieving targets COMESA platform for monitoring regional integration. Component 3: Supporting Commercialization of Selected Cross-border Value Chains Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Feb/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 5.00 Jun/2028 Page 18 The World Bank Great Lakes Trade Facilitation and Integration Project (P174814) Number of value chains supported Comments on achieving targets Number of value chains supported by the project (Number) Change in profit margin for 0.00 May/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 15.00 Jun/2028 supported women led value chains Comments on achieving targets Change in profit per unit (Percentage) 0.00 May/2021 0.00 01-Dec-2022 0.00 01-Dec-2022 500.00 Jun/2028 Number of participants in supported value chains (Number) Comments on achieving targets Number of direct participants in a value chain selected for investment. Component 1. Improving Policy and Regulatory Environment for cross border trade Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Reduction in incidence of 0.00 Feb/2021 0.00 31-Aug-2024 0.00 31-Aug-2024 50.00 Jun/2028 bribery/solicitation of informal Comments on achieving targets Reported incidence of solicitation of bribe by border officials. payments from traders (Percentage) 0.00 May/2021 0.00 31-Aug-2024 0.00 31-Aug-2024 75.00 Jun/2028 Reduction in incidence of physical and/or verbal harassment of traders Comments on achieving targets Include all forms of harassment at the analysis level and aggregation of data to reflect all data elements (Percentage) (harassment) while reporting. Capture of all forms of harassment at analysis provides the right disaggregation of the indicator and the right interpretation of the aggregated data. Page 19