The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) REPORT NO.: RES60626 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SMALLHOLDER COMMERCIALIZATION AND AGRIBUSINESS DEVELOPMENT PROJECT APPROVED ON FEBRUARY 18, 2016 TO REPUBLIC OF SIERRA LEONE June 18, 2024 AGRICULTURE AND FOOD GLOBAL PRACTICE WESTERN AND CENTRAL AFRICA REGION Regional Vice President: Ousmane Diagana Country Director: Robert R. Taliercio Regional Director: Chakib Jenane Practice Manager/Manager: Abel Lufafa Task Team Leaders: Adetunji A. Oredipe, Kadir Osman Gyasi, Tojoarofenitra Ramanankirahina The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) ABBREVIATIONS AND ACRONYMS AF Additional Financing DFID Department for International Development GoSL Government of Sierra Leone IDA International Development Association PDO Project Development Objective TF Trust Fund The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) BASIC DATA Product Information Project ID Financing Instrument P153437 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 18-Feb-2016 28-Jun-2024 Organizations Borrower Responsible Agency Republic of Sierra Leone Project Development Objective (PDO) Original PDO The project development objective is to promote smallholder commercialization by fostering productive business linkages between smallholder farmers and selected agribusiness firms and other commodity off-takers in Sierra Leone. The Project has four components:(1) Support to agribusiness-farmer linkages and SMEs along selected agricultural value chains (US$ 19 million);  (2) Market Access Improvement (US$26 million); (3) Capacity Building for Government and Other Institutions relevant for agribusiness development (US$ 6 million); and (4) Project Coordination, Monitoring and Evaluation (US$ 4 million). OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D6880 15-Jul-2020 18-Aug-2020 14-Sep-2020 28-Jun-2024 30.00 23.58 5.67 IDA-57670 18-Feb-2016 14-Mar-2016 29-Nov-2016 28-Jun-2024 40.00 39.77 0 TF-A7690 18-May-2018 12-Oct-2018 12-Oct-2018 30-May-2019 1.84 1.84 0 The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Restructuring Paper (RP) seeks the approval of the Regional Vice President for Western and Central Africa for the extension of closing date of the Smallholder Commercialization and Agribusiness Development Project. The parent project was approved on February 18, 2016 and became effective on November 29, 2016. The current closing date is June 28, 2024, which includes two extensions of 15 and 12 months, approved respectively, on July 15, 2020 and June 22, 2022 to accommodate Additional Financing (AF). Through its Ministry of Finance, the Government of Sierra Leone requested 12 months extension on April 03, 2024, to complete activities on the four bridges under the project. This request will bring the cumulative extension to 42 months (given the previous extensions for the AF), requiring RVP clearance. With this extension, the Project will be nine years and four months old at the new closing date. 2. Current Status: The Project is financed through a US$70million IDA (Credit No 57670, Grant D 6880) and US$1.84 million Trust Fund (TF-A7690). The feeder roads sub-component under Component B (Market access improvement) was to be co-financed by Foreign, Commonwealth and Development Office (former Department for International Development (DfID) with a Trust Fund (TF) contributing US$15 million). Of the total US$15 million expected from DfID, only US$1.84 million was released. On October 10, 2018 the co-financier notified the Government of Sierra Leone (GoSL) of the withdrawal of its commitment to the co-financing of the feeder roads sub-component of the project due to the changing priorities in its assistance program for Sierra Leone. The feeder road component was subsequently financed under the Additional Financing. The TF closed on May 30, 2019 with full disbursement of the released amount of US$1.84 million. The Project Development Objective (PDO) is to promote smallholder commercialization by fostering productive business linkages between smallholder farmers and selected agribusiness firms and other commodity off-takers in Sierra Leone. The parent project, approved on February 18, 2016, focused on direct support to farmers. The project has five components including (i) Support for agribusiness-farmer linkages and small and medium scale enterprises along selected agricultural values chains (US$18.17 million equivalent); (ii) Market access improvement; (US$40.64 million equivalent, out of which IDA US$10.6 million, TF US$1.84 million, IDA AF US$28.2 million) (iii) Capacity building support for state and non-state institutions and producer organizations (US$5.0 million equivalent); (iv) Project coordination, monitoring and evaluation (US$6.53 million equivalent); and (v) Contingency Emergency Response component (CERC: US$1.5million equivalent). The Additional Financing (AF), approved on July 15, 2020, specifically aims to design, and construct four select rural bridges to replace non-motorized cable ferries across rivers in four districts. On average each bridge spans about 155 meters in length. Due to implementation delays caused by the onset of COVID-19, the project closing date was first extended from June 30, 2023 by one year to June 28, 2024. 3. The current rating for progress towards the PDO is Satisfactory. The project has also maintained good implementation performance. While the parent project (International Development Association (IDA)-56670) is fully disbursed, the AF (IDA- D6880) is at 80.3 percent disbursement. The project has surpassed targets for all PDO indicators. Specifically, the adoption of improved inputs and technologies has resulted in an average rice yield of 2.75mt/ha against a target of 2.4mt/ha, and maize yield is reported at 2.84mt/ha against a target of 2.2mt/ha. The project has achieved a 170 percent increase in The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) marketed volumes of rice, 113 percent for maize, 131 percent for cocoa and 112 percent for oil palm against the targets of 30 percent for rice, 85 percent for maize, 75percent for cocoa and 75 per for palm oil. The number of beneficiaries under the project reached 129,034 against a target of 120,000 (of which 56,424 (47 percent, exceeding the project target of 40 percent) are women. In addition, the project has supported 17 agribusinesses operating out-grower schemes with 61,710 smallholder farmers, 42 Producer Organizations and 47 Small and Medium Enterprises under the Agribusinesses Services Matching Grant. The project has constructed 441 culverts (against target of 390) culverts and 19 (against target of 20) small bridges. However, the project, under Component B (Market access improvement) has experienced delays in the completion of four main rural bridges/river-crossing, for which works did not start until early 2023 and stalled from July to November 2023, due to the onset of the heavy rains. In addition, the attempted coup d’ Etat on November 26, 2023, and the two weeklong nationwide curfew that followed affected contractor mobilization and resumption of operation at all project sites. To date, physical progress on the four bridges ranges from 25 percent to 48 percent. Against this background, the Government in a letter dated April 3, 2024, requested a one year no cost extension of the closing date. 4. Rationale for extension: The completion of the four rural bridges will significantly contribute to the achievements of the Project. It will transform lagging regions within Sierra Leone by connecting isolated regions and enhancing regional integration opportunities with Guinea and Liberia. The rural bridges will directly impact the economic and social life of over 120,000 farmers and 500,000 traders and communities along the regional corridors. Thousands of beneficiaries who have historically been cut off from the rest of Sierra Leone will benefit from access to social services (e.g., schools, health facilities), and markets. The Project’s extension will allow works to be completed and construction audits to be conducted in an orderly manner and significant benefits to accrue to project beneficiaries, while protecting them, the Government of Sierra Leone, and the World Bank from operational, safeguards’, and reputational risks. II. DESCRIPTION OF PROPOSED CHANGES 5. The proposed change is to extend the closing date of the Sierra Leone Smallholder Commercialization and Agribusiness Development Project (P153437) from June 28, 2024 to June 30, 2025, a cumulative extension of 42 months. The parent Project was approved on February 18, 2016, with a closing date of November 30, 2021. On July 15, 2020, an AF of US$30 million (IDA-D6880) was approved by the Board. The Additional Financing was accompanied with the extension of the closing date of the project to June 30, 2023, and a second extension was processed with a closing date of June 28, 2024. The one-year extension of the project closing date from June 28, 2024, to June 30, 2025, will allow for sufficient time to ensure full completion of the ongoing construction of the four bridges. With this extension, the Project will be 9 years and four months old at the time of the new closing date. To ensure full completion of all the outstanding works on the bridges within the revised closing date, the team together with the government authorities have agreed on revised timelines of all pending activities and developed an updated implementation action plan, which will be closely monitored during the extension period (see annex 1). 6. The Task Team confirms that the proposed closing date extension meets the requirements of the World Bank Investment Project Financing Directive for the closing date extension, specifically: (i) the PDO is achievable; (ii) the performance of the Borrower is satisfactory; (iii) an action plan has been prepared by government to complete the project within the revised closing date; (iv) there are no overdue financial audit reports, or Interim Financial Reports; (v) the credit is not subject to suspension of disbursement; and (vi) the project complies with all legal covenants. Implementation schedule and disbursement estimate have been updated in accordance with the proposed closing date. The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 30-Jun-2023, 28-Jun- IDA-57670 Effective 30-Nov-2021 30-Jun-2025 30-Oct-2025 2024 IDA-D6880 Effective 30-Jun-2023 28-Jun-2024 30-Jun-2025 30-Oct-2025 TF-A7690 Closed 30-May-2019 13-May-2020 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2016 144,270.00 144,270.00 2017 1,848,750.00 1,848,750.00 2018 3,106,920.00 3,106,920.00 2019 4,261,320.00 4,261,320.00 2020 6,789,357.96 4,789,357.96 2021 23,084,196.69 20,084,196.69 2022 19,277,543.35 12,277,543.35 2023 10,000,000.00 10,000,000.00 2024 1,487,642.00 13,487,642.00 . Annex 1 Action Plan for Implementation of Outstanding Activities: May 2024 – June 2025 The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) Component/ Activity Completion Responsibility Comments sub- Date component A.1 Complete closure processes for SLADF June 30, 2024 PCU In progress Matching Grant to first and second rounds grantees A.2.1 Complete closure processes for ASMG June 30, 2024 PCU In progress matching grant to beneficiaries of the ASMG A.2.2 Ensure handing over and development of a June 30, 2024 MAF In progress sustainability plan for the e-extension service delivery system B.1.1 Construction of Rural Bridges to replace June 30, 2024 PCU/SLRA In Progress manual cable ferries 1 Completion of substructure works on the December Consultant/ In Progress design and build of a rural bridge at Tomparie 20, 2024 contractors (Lot 1) 2 Completion of superstructure works on the March 15, Consultant/ Not yet due design and build of a rural bridge at Tomparie 2025 contractors (Lot 1) 3 Completion of approach roads on the design May 30, 2025 Consultant/ Not yet due and build of a rural bridge at Tomparie (Lot 1) contractors 4 Completion of substructure works on the May 30, 2024 Consultant/ Completed design and build of a rural bridge at Mattru contractors (Lot 2) 5 Completion of superstructure works on the October 30, Consultant/ In progress design and build of a rural bridge at Mattru 2024 contractors (Lot 2) 6 Completion of approach roads on the design December Consultant/ In progress and build of a rural bridge at Mattru (Lot 2) 30, 2024 contractors 7 Completion of substructure works on the June 15, 2024 Consultant/ Completed design and build of a rural bridge at Gendema contractors (Lot 3) 8 Completion of superstructure works on the October 30, Consultant/ In progress design and build of a rural bridge at Gendema 2024 contractors (Lot 3) 9 Completion of approach roads on the design December Consultant/ In Progress and build of a rural bridge at Gendema (Lot 3) 30, 2024 contractors Completion of substructure works on the June 15, 2024 Consultant/ Completed 10 design and build of a rural bridge at Manowa contractors (Lot 4) The World Bank Smallholder Commercialization and Agribusiness Development Project (P153437) Component/ Activity Completion Responsibility Comments sub- Date component 11 Completion of superstructure works on the October 30, Consultant/ In progress design and build of a rural bridge at Manowa 2024 contractors (Lot 4) 12 Completion of approach roads on the design December Consultant/ In progress and build of a rural bridge at Manowa (Lot 4) 30, 2024 contractors Corrections of Defects during the defect March 30, SLRA/CONTRA This activity will be 13 liability period for all 4 bridges 2025 CTORS coordinated and managed by the Government after project closure 14 Issuance of final completion certificate March 30, PCU/SLRA/ This activity will be 2025 CONSULTANT coordinated and managed by the Government after project closure B1.2 Completion of spot improvement works in December Contractors/ In progress Port Loko, Bo, Moyamba, and Kambia 30, 2024 SLRA C Institutional Support for state and non-state March 30, PCU Not yet due agencies 2024 D Complete end of project evaluation April 30, 2025 PCU Not yet due Complete borrower ICR May 2025 PCU Not yet due Ensure audit of project finances October 2025 PCU The last audit for Jan-June 2025 will be completed by October 2025