The World Bank Emergency 2007 Cyclone Recovery and Restoration Project (P111272) REPORT NO.: RES30402 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF EMERGENCY 2007 CYCLONE RECOVERY AND RESTORATION PROJECT APPROVED ON NOVEMBER 6, 2008 TO GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE SOUTH ASIA Regional Vice President: Annette Dixon Country Director: Qimiao Fan Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Christoph Pusch Task Team Leader: Swarna Kazi The World Bank Emergency 2007 Cyclone Recovery and Restoration Project (P111272) I. BASIC DATA Product Information Project ID Financing Instrument P111272 Emergency Recovery Loan Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 06-Nov-2008 31-Dec-2017 Organizations Borrower Responsible Agency Project Coordination and Monitoring Unit, Programming Government of the People's Republic of Bangladesh Division, Planning Commission Project Development Objective (PDO) Original PDO The PDO is to support the Government of Bangladesh efforts to facilitate recovery from the damage to livelihoods and infrastructure caused by Cyclone Sidr and to build long-term preparedness through strengthened disaster risk reduction and management. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-53420 30-Dec-2013 09-Jun-2014 10-Aug-2014 31-Dec-2017 140.00 107.00 21.31 IDA-48190 24-Sep-2010 11-Nov-2010 04-Jan-2011 31-Dec-2016 75.00 72.31 .01 IDA-45070 06-Nov-2008 23-Nov-2008 24-Dec-2008 31-Dec-2014 108.87 106.01 0 TF-99305 08-Aug-2011 08-Aug-2011 08-Aug-2011 31-Dec-2015 23.06 23.06 0 TF-93588 16-Apr-2009 16-Apr-2009 16-Apr-2009 30-Jun-2013 3.01 3.07 0 The World Bank Emergency 2007 Cyclone Recovery and Restoration Project (P111272) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The Restructuring Paper seeks the approval of the Country Director for a Level-II restructuring of the Emergency 2007 Cyclone Recovery and Restoration Project (P111272) to extend the Closing Date of Additional Financing II from December 31, 2017 to June 30, 2018. The project has 3 IDA Credits. The original credit (IDA Credit 45070) closed on December 31, 2014. The AF I (IDA Credit 48190) closed on December 31, 2016 and AF II (IDA Credit 53420) is scheduled to close on December 31, 2017. This restructuring paper proposes that the AF II (IDA Credit 53420) credit closing date be extended to June 30, 2018. This is the first extension of AF II, representing a cumulative extension of 6 months. The Emergency 2007 Cyclone Recovery and Restoration Project (ECRRP) was prepared to support Government of Bangladesh (GoB) efforts to facilitate restoration and recovery from the damage to livelihoods and infrastructure caused by Cyclone Sidr (2007) and build long-term disaster preparedness. The scope of the project was based on a Joint Damage, Loss and Needs Assessment (JDLNA) carried out in 2008 that identified financing needs of US$ 1.7 billion. An IDA Credit of US$ 109 million equivalent (IDA Credit 45070) was approved in November 2008 as a first installment against the financing needs for recovery and restoration. The project resources increased over time with the contribution from GFDRR grant (TF 93588) of US$2.96 million in April 2009, an IDA additional financing (IDA Credit 48190) of US$ 75 million equivalent in September 2010, a BCCRF grant (TF 99305) of US$25 million in August 2011, KfW parallel financing of US$ 4.86 million in November 2012, and a second Additional Financing (IDA Credit 53420) of US$ 140 million in December 2013. This project as approved in 2008 comprised the following six components: (i) Component A - Recovery of Agriculture Sector and Improvement Program; (ii) Component B - Reconstruction and Improvement of Multipurpose Shelters; (iii) Component C - Rehabilitation of Coastal Embankments; (iv) Component D - Long-Term Disaster Risk Management Program; (v) Component E: Monitoring and Evaluation of Project Impact; and (vi) Component F: Project Management, Technical Assistance, Strategic Studies and Training, and Emergency Support for Future Disasters. Overall implementation has progressed well. The achievement towards achieving the PDO is rated Satisfactory and Implementation Progress is rated Moderately Satisfactory. All activities under Component A were completed on June 30, 2014. All activities under Component D were completed on December 31, 2016. The project also delivered feasibility reports for future investment projects (Component D and F): the Multipurpose Disaster Shelter Project (MDSP), Coastal Embankment Improvement Project (CEIP) and the Modern Food Storage Project (MFSP) which are currently under implementation. Under Component B, improvement of 459 existing multipurpose disaster shelters (out of a target of 460) have been completed. Construction of 277 new multipurpose disaster shelters (out of a target of 353) have been completed. The World Bank Emergency 2007 Cyclone Recovery and Restoration Project (P111272) Under Component C, rehabilitation of coastal embankments, repair work for 494.5 km (out of a target of 502 km) have been completed. It is expected with the proposed extension the remaining activities will be completed. However, despite the substantial progress made, the IDA credit needs to be extended to be able to complete the remaining works which were affected due to the weather conditions. 2017 has been plagued by severe weather condition, starting with Severe Cyclonic Storm Mora in late May 2017 which caused torrential rainfall and made landfall in coastal Bangladesh. Cyclone Mora caused approx. USD 1.7 billion in damages across the South Asia region. In addition, there was much higher and prolonged rainfall compared to the historical average. Unprecedented concentrations of rainfall, rising water levels, tidal surges, and river erosion further compounded deteriorating embankments, impacted immediately critical areas such as marketplaces, and water logged the contractors’ manufacturing areas and work sites. The construction season in Bangladesh is limited to only the dry season and the work plan targets was negatively impacted due to unexpected frequent rains throughout the 2017 dry season (March-October). Therefore, there was minimal progress during the last six months. Contractors were unable to restart work until the waters receded only late November, which allows a very short working window until the December 2017 closing date. The Implementing Agencies (IAs) have confirmed that the proposed extension would ensure full utilization of the Credit and compliance of all the fiduciary reporting requirements and safeguards compliance requirements, including the following: 1. All the expenses relating to Land acquisition will be incurred/ completed before the proposed closing date of June 30, 2018. 2. On the fund flow position, the payments would be made to the final beneficiaries from the designated account before the revised disbursement deadline date of October 31, 2018. The IAs have confirmed to continue to closely monitor all activities to ensure smooth closing in line with the proposed revised closing date. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Dec-2014, 05- IDA-45070 Closed 30-Jun-2013 May-2016 31-Dec-2015, 31-Dec- IDA-48190 Closed 30-Jun-2014 2016 IDA-53420 Effective 31-Dec-2017 30-Jun-2018 30-Oct-2018 The World Bank Emergency 2007 Cyclone Recovery and Restoration Project (P111272) TF-93588 Closed 30-Jun-2013 07-Nov-2013 31-Dec-2015, 10- TF-99305 Closed 31-Dec-2014 May-2016