The World Bank Lebanon Municipal Services Emergency Project (P149724) REPORT NO.: RES30353 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LEBANON MUNICIPAL SERVICES EMERGENCY PROJECT APPROVED ON JUNE 19, 2014 TO GOVERNMENT OF LEBANON - MINISTRY OF FINANCE SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE MIDDLE EAST AND NORTH AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Saroj Kumar Jha Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Ayat Soliman Task Team Leader: Guido Licciardi The World Bank Lebanon Municipal Services Emergency Project (P149724) I. BASIC DATA Product Information Project ID Financing Instrument P149724 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-Jun-2014 30-Dec-2017 Organizations Borrower Responsible Agency Government of Lebanon - Ministry of Finance Council for Reconstruction and Development- Lebanon Project Development Objective (PDO) Original PDO The project development objective is to address urgent community priorities in selected municipal services, targeting areas most affected by the influx of Syrian refugees. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-17510 12-Sep-2014 12-Sep-2014 25-Feb-2015 30-Dec-2017 10.00 4.40 5.60 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Lebanon Municipal Services Emergency Project (P149724) The project targets 11 Union of Municipalities in Lebanon, namely: Al Buhaira, Al Sahel, Kalaat el Estiklal, Jabal El Sheikh, Central Bekaa, Zahle Caza, Baalbeck and Surrounding Communities, Tyre, Aarqoub, Central and Coastal Qayta’a, and Al Shafat. The project was designed to collect demands from Municipalities and Union of Municipalities in terms of basic service delivery (works and equipment, subcomponent 1a and component 2) and social cohesion (subcomponent 1b), and deliver these activities through the Council for Development and Reconstruction (CDR), benefitting Lebanese host communities and Syrian refugees. During appraisal, the task team evaluated CDR’s mandate and concluded that its experience, which revolved around development and post-conflict reconstruction in Lebanon, together with its long track record of successfully implementing Bank-financed projects, made it the most suited implementing agency for the project. The project was approved on September 12, 2014 and became effective on February 25, 2015. Although impacted by short implementation time, a less-than-favorable political economy in the country, the project achieved a number of results, thanks to engagement of the implementing entity and enhanced Bank supervision. The project exceeded targets in several areas, including number of project beneficiaries, community consultations, sub-projects at community level. The project also received wide media coverage, funded additional activities (made possible with use of savings), helped leverage $100m in financing from other donors, received awards for its achievements, and funded a groundbreaking social development activity with artworks developed by 500 Syrian and Lebanese children, which were featured in 2 parallel exhibitions in Beirut and Washington, opened by Government officials and senior Bank management at the 2017 Annual Meetings on October 13, 2017. Safeguards and fiduciary provisions have been fully fulfilled throughout implementation, without major elements of concern. As of November 2017, Progress towards achievement of the PDO is rated S and Overall implementation progress is rated MS. Subcomponent 1a is 98% completed, subcomponent 1b is 90% completed, and component 2 is under implementation. The implementing entity confirmed its commitment to completing project implementation, and considering the volatility of the security situation in the country and the region, has requested from the Bank a potential 6-month extension to complete all project-funded activities, moving the closing date from December 30, 2017 to June 30, 2018. This request was expressed to the Bank in supervision missions and through a communication from the Council for Development and Reconstruction of the Republic of Lebanon, dated October 26, 2017. BP 10.00 requirements for extension of closing dates are satisfied: (i) PDO remains achievable, (ii) performance is satisfactory, and (iii) an action plan for project completion has been discussed with the borrower and revised at each implementation support mission. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-17510 Effective 30-Dec-2017 30-Jun-2018 30-Oct-2018 The World Bank Lebanon Municipal Services Emergency Project (P149724)