The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) REPORT NO.: RES38082 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CLIMATE ADAPTATION AND MITIGATION PROGRAM FOR ARAL SEA BASIN CAMP4ASB APPROVED ON NOVEMBER 3, 2015 TO MINISTRY OF FINANCE OF THE REPUBLIC OF TAJIKISTAN,MINISTRY OF FINANCE OF THE REPUBLIC OF UZBEKISTAN,EXECUTIVE COMMITTEE FOR INTERNATIONAL FUND FOR SAVING THE ARAL SEA ENVIRONMENT & NATURAL RESOURCES EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Regional Director: Steven N. Schonberger Practice Manager/Manager: Kseniya Lvovsky Task Team Leader: Gayane Minasyan, John Bryant Collier The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) ABBREVIATIONS AND ACRONYMS CAMP4ASB Climate Adaptation and Mitigation Program for Aral Sea Basin CAREC Central Asia Regional Environmental Center EC-IFAS Executive Committee of International Fund for Saving the Aral Sea IDA International Development Association PDO Project Development Objective PFIs Participating Financial Institutions RCU Regional Coordination Unit The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P151363 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 03-Nov-2015 30-Apr-2021 Organizations Borrower Responsible Agency Ministry of Finance of the Republic of Tajikistan,Ministry Committee for Environmental Protection,Agro Industries of Finance of the Republic of Uzbekistan,Executive and Food Security Agency Committee for International Fund for Saving the Aral Sea Project Development Objective (PDO) Original PDO To enhance regionally coordinated access to improved climate change knowledge services for key stakeholders (e.g., policy makers, communities, and civil society) in participating Central Asian countries, as well as to increased investments and capacity building that, combined, will address climate challenges common to these countries. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57410 03-Nov-2015 13-Mar-2017 28-Apr-2017 30-Apr-2021 14.00 12.89 1.14 IDA-57420 03-Nov-2015 22-Jan-2016 04-Aug-2016 30-Apr-2021 9.00 6.99 1.98 IDA-D0940 03-Nov-2015 01-Jul-2016 04-Aug-2016 30-Apr-2021 15.00 4.21 10.63 The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Description 1. The Climate Adaptation and Mitigation Program for Aral Sea Basin (CAMP4ASB) seeks to help Central Asian countries build upon the benefits of regional cooperation to address the mounting challenges from climate change, which often transcend borders. This program is developed in phases. Its first phase, supporting Tajikistan, Uzbekistan, and a regional organization (the Executive Committee of International Fund for Saving the Aral Sea, or EC-IFAS) with US$38 million equivalent in credits and grants from the International Development Association (IDA), was approved by the World Bank Board of Executive Directors on November 3, 2015 and became effective on August 4, 2016. The closing date of the project is April 30, 2021. 2. This project includes three components as follows: o Component 1 (Regional Climate Knowledge Service, US$12.49 million) to strengthen the knowledge and capacity base for climate action and facilitate regional dialogue and multi-stakeholder engagement for an effective climate response at scale; o Component 2 (Regional Climate Investment Facility, US$21.35 million: US$21.4 million in IDA financing and US$6.8 million in beneficiary contributions), to provide financing (via credit lines supporting Participating Financial Institutions, or PFIs) and technical assistance to rural communities for climate investments; and o Component 3 (Regional and National Coordination (US$3.86 million in IDA financing) to support a Regional Coordination Units, responsible for national investment oversight (Component 2) in each of the participating countries. B. Project Status 3. The project is implemented by the Ministry of Finance and State Committee for Environmental Projection in Tajikistan and by the Agency for Implementation of Projects on Agro-Industry and Food Supply/ formal Rural Restructuring Agency (under the Cabinet of Ministers) and UzHydromet in Uzbekistan. The regional component is implemented by the EC-IFAS through Central Asia Regional Environmental Center (CAREC). 4. The mid-term review of the project was undertaken from March 30 to April 12, 2019. 5. Progress towards achieving PDO is satisfactory. The implementation progress of the project is rated moderately satisfactory. Uzbekistan disbursed about 96% of its IDA credit. Tajikistan has also disbursed about 60% of the credit The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) line. However, only 3.7 million out of a total 15 million Regional IDA credit has been disbursed due to the delayed implementation of Component 1 (Regional Climate Knowledge Service). Since the recruitment of a new Program Manager within the Regional Coordination Unit (RCU), the implementation of the Regional Climate Knowledge Services component has made noticeable progress on several activities (i.e., climate knowledge service platform, upgrading climate related monitoring systems). While this progress has not been reflected in the disbursement rate, the positive development to catch up is expected within the next 6-12 months. C. Rationale for Restructuring 6. During the mid-term review, the result framework has been revisited. While no change is needed to the PDO level indicators, some intermediate indicators do not fully capture the progress during the implementation, even though each component has financed the activities contributing to the achievement of PDO. In addition, some estimated targets proved to be unrealistic given the nature of the activities. The reasons for this misalignment are mainly due to the evolved nature of the sub-projects financed by the project, which was unforeseen during preparation. For example, direct beneficiaries are individual farmers instead of large communities or farmer organizations and the subproject has resulted in more climate-smart technology adoption rather than sustainable land management. 7. Therefore, it has been agreed that changes to the intermediate results indicators will be introduced to (i) better reflect the results of the project; (ii) specify new indicators more appropriate for the activities of the project; (iii) eliminate redundant indicators; and (iv) cover citizen engagement. Overall, under this restructuring, the proposed result framework will lead to adjusting two indicators, replacing two indicators with two other indicators, and introducing two new indicators. II. DESCRIPTION OF PROPOSED CHANGES 8. The proposed changes in the result frameworks are following (a) Intermediate indicators to be adjusted: - Direct beneficiaries (the expected target to be 50,000) - Number of hectares in project area covered by effective agricultural, land, and water management practices suited to local agro-ecological conditions, which can address climate change (Hectare) (the expected target to be 10,000 hectares) (b) Intermediate indicators to be replaced: - Replacing two indicators, o User Perception of Quality of Public Services (Percentage) and o its supplemental indicator, Total number of transactions of the main public service targeted by the project (Number). - With the following two indicators o Number of users of public climate data and analytical services provided by the platform (number). The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) o Beneficiaries that feel project investments reflected their needs (%) (c) Intermediate indicators to be added: - Farmers adopting climate-smart agricultural technology (number). - Beneficiaries reached with financial services (number) with the supplemental indicator for female (%). Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) Environmental Analysis ✔ IV. DETAILED CHANGE(S) . The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) . Results framework COUNTRY: Central Asia Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB Project Development Objectives(s) To enhance regionally coordinated access to improved climate change knowledge services for key stakeholders (e.g., policy makers, communities, and civil society) in participating Central Asian countries, as well as to increased investments and capacity building that, combined, will address climate challenges common to these countries. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 To enhance regionally coordinated access to improved climate change knowledge services for key stake Additional resources mobilized for knowledge, capacity, and investment for regional climate/green action through increased 0.00 0.00 0.00 20,000,000.00 30,000,000.00 40,000,000.00 40,000,000.00 Program coordination among Central Asian countries and development community (Amount(USD)) Cooperative action resulting in the financing of investments that require collaboration across 0.00 0.00 0.00 0.00 1.00 2.00 2.00 countries (e.g., transboundary investment or multi-country The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 coordination of national policies) (Number) Number of country-led plans and programs that draw on Program’s climate knowledge services, 0.00 0.00 0.00 0.00 1.00 3.00 3.00 including lessons from climate investments (Number) Proportion of users reporting satisfaction with Climate Knowledge Services 0.00 0.00 0.00 30.00 30.00 60.00 60.00 provided by Program (Percentage) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Regional Climate Knowledge Services Number of multi-country climate coordination networks supported under Program, enabling intra- 0.00 0.00 1.00 1.00 2.00 3.00 3.00 governmental, sectoral, NGO, etc. cooperation (Number) The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Number of users of public climate data and analytical 0.00 9,000.00 services provided by the platform (Number) Rationale: The previous indicators (including sub-indicators) do not capture the nature of the activity of the project related to the use of the Climate Change Knowledge Action: This indicator has Platform that is being built under the regional component. Thus, it is going to be replaced by the indicator that specifically targets the users of the Climate been Revised Change Platform. Total number of transactions of the main 0.00 0.00 0.00 4,000.00 4,000.00 9,000.00 9,000.00 public service targeted by the project (Number) Action: This indicator has been Marked for Deletion Improved understanding of gender-specific implications of climate change among 0.00 1.00 3.00 5.00 8.00 10.00 10.00 key stakeholders and implementation of key activities (Number) Regional Climate Investment Facility Direct project beneficiaries 0.00 0.00 50,000.00 (Number) Action: This indicator has Rationale: been Revised The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 The project was initially expected to work with large communities and farmer organizations, but the demand for the credit line came from individual farmers. To reflect the nature of the project beneficiaries, the team adjusts the target value for this indicator. Female beneficiaries 0.00 0.00 15.00 25.00 25.00 35.00 35.00 (Percentage) Number of hectares in project area covered by effective agricultural, land, and water management 0.00 0.00 0.00 10,000.00 practices suited to local agro-ecological conditions, which can address climate change (Hectare(Ha)) Rationale: While this indicator is still partially relevant, it is clear that the nature of the sub-projects financed by the project has changed from what was foreseen during Action: This indicator has preparation. The project has financed a lot of subprojects that resulted in adopting new technologies for climate-smart agriculture, which is not covered by this been Revised indicator. Also, not all project involve land use (for example livestock, beekeeping, greenhouse, etc.) Thus, the target number of this indicator is adjusted to 10,000 ha and a new indicator to reflect the adoption of climate-smart technologies is separately added. Farmers adopting climate- smart agricultural 0.00 0.00 3,000.00 technologies (Number) Rationale: The project has financed a lot of subprojects that resulted in adopting new technologies for climate smart agriculture, which was not foreseen during Action: This indicator is preparation. This aspect cannot be captured in the existing indicator, "Number of hectares in project area covered by effective agricultural, land, and water New management practices". To reflect this adoption, a new indicator is added. The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Beneficiaries reached with 0.00 3,000.00 financial services. (Number) Action: This indicator is New Female beneficiaries reached with financial 0.00 35.00 services (Percentage) Action: This indicator is New Beneficiaries that feel project investments 0.00 80.00 reflected their needs (Percentage) Rationale: Action: This indicator is This new indicator is introduced to cover the citizen engagement. New Regional and National Coordination Feedback/Grievances responded and/or resolved within the stipulated service 0.00 0.00 70.00 70.00 80.00 100.00 100.00 standards for response times (Percentage) IO Table SPACE The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) The World Bank Climate Adaptation and Mitigation Program for Aral Sea Basin CAMP4ASB (P151363) Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document