The World Bank
   Congo: Forest and Economic Diversification Project (P124085)




                                                                                  REPORT NO.: RES29988

                                    DOCUMENT OF THE WORLD BANK




                                         RESTRUCTURING PAPER
                                                  ON A
                                  PROPOSED PROJECT RESTRUCTURING

                                                      OF

                      CONGO: FOREST AND ECONOMIC DIVERSIFICATION PROJECT
                                      APPROVED ON MAY 24, 2012
                                                      TO

                                         MINISTRY OF FINANCE


ENVIRONMENT & NATURAL RESOURCES

AFRICA




                          Regional Vice President:     Makhtar Diop
                                 Country Director:     Ahmadou Moustapha Ndiaye
                   Senior Global Practice Director:    Karin Erika Kemper
                      Practice Manager/Manager:        Benoit Bosquet
                               Task Team Leader:       Julian Lee
           The World Bank
           Congo: Forest and Economic Diversification Project (P124085)



I. BASIC DATA

Product Information

Project ID                                                    Financing Instrument
P124085                                                       Investment Project Financing

Original EA Category                                          Current EA Category
Partial Assessment (B)                                        Partial Assessment (B)

Approval Date                                                 Current Closing Date
24-May-2012                                                   30-Nov-2017




Organizations

Borrower                                                      Responsible Agency
                                                              Ministry of Forest Economy, Sustainable Development,
Ministry of Finance
                                                              and Environment



Project Development Objective (PDO)
Original PDO
The project development objective is to increase the capacity of the Republic of Congo to: (i) promote better
implementation ofitsforestry legislation; and (ii) enhance the policy environment for participation of local communities
and the private sector insustainable forest management and reforestation.
Current PDO
To increase the capacity of the forest administration, local communities, and indigenous peoples to co-manage forests.

Summary Status of Financing


                                                                                         Net
Ln/Cr/Tf                  Approval        Signing Effectiveness           Closing Commitment Disbursed Undisbursed

IDA-51210             24-May-2012    13-Jun-2012 27-Mar-2013 30-Nov-2017                 10.00        7.87          1.34
TF-A4666              05-May-2017    23-Jun-2017    23-Jun-2017    26-Jul-2021            6.51           0          6.51
           The World Bank
           Congo: Forest and Economic Diversification Project (P124085)



Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES

 The FEDP has disbursed 81% of its IDA (Credit 5121-CG) resources. It has committed 100% of its resources, with
 several major activities still ongoing. In spite of a shortfall in counterpart resources, the project has been able to make
 substantial progress against its indicators, as documented in the latest ISR: It has met or exceeded targets on 3 of its 4
 PDO indicators, and on 5 of its 8 intermediate indicators. In spite of some delays in execution, ongoing activities
 position the project well for making further progress against the two remaining intermediate indicators which it has
 not yet fully attained, and to further consolidate its results on several other indicators.

 On May 4, 2017, the World Bank board approved additional financing (AF) to the FEDP from the Global Environment
 Facility. This AF included an extension of the project closing date to July 26, 2021, but at the time it was expected that
 the IDA credit would fully disburse by November 30, 2017. That extension therefore did not include the IDA credit.
 However, delays in implementation of several key activities have necessitated an extension of the IDA credit closing
 date.

 This restructuring paper is therefore proposing an extension of the IDA credit closing date by four months from
 November 30, 2017 to March 30, 2018. The proposed extension would allow for the completion of a number of
 activities that are contributing to the project's achievement of its objectives. In particular, this concerns the following:

 - Development of regulatory texts for the new forest code
 - Finalization of simplified management plans in forest concessions' community development zones
 - Income-generating micro projects
 - Finalization of computerized management systems for the Ministry of Forest Economy

 During this extended implementation phase, the FEDP would have sufficient funds to ensure its operations. The
 project management unit would in parallel execute the additional financing activities from the GEF. The project has no
 outstanding audit reports.


III. DETAILED CHANGES


LOAN CLOSING DATE(S)


                                          Original                 Revised                 Proposed       Proposed Deadline
Ln/Cr/Tf         Status                   Closing                Closing(s)                  Closing         for Withdrawal
                                                                                                                Applications
IDA-51210        Effective          30-Nov-2017                                        30-Mar-2018                30-Jul-2018
       The World Bank
       Congo: Forest and Economic Diversification Project (P124085)



TF-A4666     Effective           26-Jul-2021