The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) REPORT NO.: RES35632 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SENEGAL - SAINT-LOUIS EMERGENCY RECOVERY AND RESILIENCE PROJECT APPROVED ON JUNE 7, 2018 TO REPUBLIC OF SENEGAL SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Louise J. Cord Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Sylvie Debomy Task Team Leader: Isabelle Celine Kane, Veronique Marie Morin Floissac The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) ABBREVIATIONS AND ACRONYMS ADM Municipal Development Agency (Agence de développement municipal) ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework FM Financial Management IDA International Development Association PAP Project Affected Population PDO Project Development Objective RAP Resettlement Action Plan SERRP Saint Louis Emergency Recovery and Resilience Project The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) BASIC DATA Product Information Project ID Financing Instrument P166538 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 07-Jun-2018 30-Jun-2023 Organizations Borrower Responsible Agency Municipal Development Agency (Agence de Republic of Senegal développement municipal - ADM) Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to reduce the vulnerability of populations to coastal hazards along the Langue de Barbarie and strengthen urban and coastal resilience planning of the city of Saint-Louis. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-62730 07-Jun-2018 06-Jul-2018 21-Sep-2018 30-Jun-2023 30.00 4.00 23.66 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Background 1. The Saint Louis Emergency Recovery and Resilience Project (SERRP, P166538) was approved on June 7th, 2018 with a Project Development Objective (PDO) to “reduce the vulnerability of populations to coastal hazards along the Langue de Barbarie and strengthen urban and coastal resilience planning of the city of Saint-Louis”. Component 1 (US$3.7 million) supports meeting the immediate (and temporary) needs of the population displaced by damaging storm surge events and living in the extremely challenging conditions of the flood prone Khar Yalla relief camp. Component 2 (US$ 14.35 million) responds to the need to relocate populations living in the high-risk coastal zone of the Langue de Barbarie, estimated at 927 households (441 concessions, 9158 people including the already 258 displaced families), to permanent housing in a safe area. Specifically, it will support transformational change through planned relocation; including the design and works for development of a new relocation site, provision of permanent dwelling units, and support for livelihoods and citizen engagement/social facilitation activities throughout the relocation process. Component 3 (US$8.85 million) responds to the longer-term needs of Saint Louis to begin planning and implementing activities on its way to becoming a more resilient coastal city. B. Project Status 2. The Project became effective on September 21st, 2018, and the first implementation support mission took place from October 29 through 31, 2018. The Project currently rates Satisfactory on Implementation Progress and Satisfactory for progress towards achievement of the PDO. 3. The Project is classified as environmental assessment Category A because it involves significant resettlement (approximately 10,000 people) with major social impacts. It triggers Involuntary Resettlement OP/BP 4.12, Environmental Assessment OP/BP 4.01, Natural Habitats OP/BP 4.04, and Physical Cultural Resources OP/BP 4.11. As the Project was prepared using the emergency provisions of Paragraph 12 (Situations of Urgent Need of Assistance), Section III of the Investment Project Financing (IPF) policy, environmental and social safeguard requirements were deferred to the project implementation phase. A Resettlement Action Plan (RAP) for the temporary relocation, Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Framework (ESMF) have all been prepared by the client and submitted to the World Bank, currently under review. 4. The overall Project risk rating remains ‘High’. The risk assessment conducted at appraisal is still relevant. C. Rationale for Restructuring 5. The project is currently experiencing urgent needs to compensate Project Affected People (PAPs) that have been identified under the Resettlement Action Plan (RAP) who are living on the site to be developed for relocation, provided by the Government. Unless this compensation is provided, the site development works for the resettlement cannot commence. The population living in the highest risk zone of the Langue de Barbarie will continue to be at risk against frequent heavy storm surges (the most recent of which took place on November 18, 2018). It is therefore critical to start the civil works on the relocation site most urgently. Compensation for this activity are estimated at a maximum of US$1,100,000. 6. On January 30, 2019, a Memo (included in Appendix I) requesting RVP approval to use IDA funds to finance land expenditures or resettlement compensation for two projects in the Senegal portfolio, including the SERRP, was approved. The project restructuring is to include a specific disbursement category for the financing of cash compensation to PAPs, as these expenditures were not envisioned during project preparation and the current Financing Agreement does not include a specific disbursement category for these expenditures. The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) II. DESCRIPTION OF PROPOSED CHANGES 7. The proposed changes are to (i) create a new disbursement category (Disbursement Category 4) for the purpose of compensation payments, and (2) re-allocate US$1,100,000 from Component 2 (Disbursement Category 1) to the new disbursement category (Disbursement Category 4) for compensation payments. The re-allocation of funds will not affect the PDO or the Results Framework. 8. An amendment to the Financial Agreement and revised Disbursement and Financial Information Letter has been prepared to reflect the above changes. III. SUMMARY OF CHANGES Changed Not Changed Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-62730-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: GD,WK,NCS & CS - Except Part B.2 23,300,000.00 0.00 22,200,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Micro-projects - Part B.2 1,100,000.00 0.00 1,100,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Emergency Expenditures - Part D 0.00 0.00 0.00 0.00 0.00 Current Expenditure Category: Land Acquisition Compensation under Part F of iLap Category Sequence No: 4 the Project 0.00 0.00 1,100,000.00 100 Total 24,400,000.00 0.00 24,400,000.00 . The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) ANNEX I Memo: Request for Approval to Use IDA Funds to Finance Land Expenditures or Resettlement Compensation for two Projects in the Senegal Portfolio COUNTRY : Senegal Senegal - Saint-Louis Emergency Recovery and Resilience Project The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538) The World Bank Senegal - Saint-Louis Emergency Recovery and Resilience Project (P166538)