The World Bank Red Sea and Gulf of Aden Strategic Ecosystem Management GEF Project (P113794) REPORT NO.: RES29861 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF RED SEA AND GULF OF ADEN STRATEGIC ECOSYSTEM MANAGEMENT GEF PROJECT APPROVED ON AUGUST 29, 2013 TO PERSGA ENVIRONMENT & NATURAL RESOURCES MIDDLE EAST AND NORTH AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Samia Msadek Senior Global Practice Director: Karin Erika Kemper Practice Manager/Manager: Benoit Paul Blarel Task Team Leader: Enos E. Esikuri The World Bank Red Sea and Gulf of Aden Strategic Ecosystem Management GEF Project (P113794) I. BASIC DATA Product Information Project ID Financing Instrument P113794 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 29-Aug-2013 31-Jan-2018 Organizations Borrower Responsible Agency PERSGA PERSGA Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) of the proposed project is to improve management of marine resources in the Red Sea and Gulf of Aden in selected MPAs building on resource protection and incentive systems for communities and the harmonization of the knowledge base of marine resources among PERSGA member countries. Current PDO To improve management of selected marine protected areas by local communities and strengthen information sharing between PERSGA member countries. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-14701 04-Nov-2013 04-Nov-2013 04-Nov-2013 31-Jan-2018 3.00 2.44 .56 The World Bank Red Sea and Gulf of Aden Strategic Ecosystem Management GEF Project (P113794) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The Strategic Ecosystem Based Management of the Red Sea and Gulf of Aden “PERSGA SEM Project” has been running since signing of the Project agreement on November 4th 2013 and is managed by the Regional Intergovernmental Organization for the Conservation of the Environment of the Red Sea and Gulf of Aden based in Jeddah, Kingdom of Saudi Arabia. The Project was restructured (Level I) in September 2016 in order to provide clarity on the PDO. The PERSGA Project Coordination Unit is responsible for execution and monitoring of day to day activities of the Project. Execution of the Project is supervised by a Regional Steering Committee consisting of PERSGA NationalFocal Points and the Secretary General. In every participating country a National Coordinator has been assigned by the Focal Point and a National Steering Committee established to regularly follow up project activities conducted in the country and verify that the project is executed in fulfilment of the national priorities to the best benefits of the local communities. The Bank conducts regular supervision missions at a biannual rate. With this Monitoring and Evaluation structure in effect, the project is running well and overall implementation progress and progress towards achievement of the PDO are rated Moderately Satisfactory. Specifically, the following progress has been made: (i) Management plan of Dungonab bay-Mukawer Island National Park in Sudan was updated. In June 2016, the Park was designated as one of the UNESCO World Heritage Site, and thus considered an achievement of the project, since the updated management plan was among the criteria used by UNESCO. An integrated management plan between the adjoining buffer areas is currently being developed by the project (ii) With respect to the implementation of environmental and socioeconomic monitoring in general, and the survey and measurement of common indicators (sea birds, dolphins, coral reefs, and seawater quality) the project has been having regular national workshops in Egypt, Sudan, and Jordan. The commencement of this activity has been delayed in Djibouti. Following the PERSGA coordination mission in Djibouti from February 19-23, 2017 and the recent implementation support mission (which was held in Djibouti), where meetings were held at the higher levels of Government, it is expected that this activity will start soon; and (iii) The sustainable livelihood sub-projects in pilot sites in Egypt and Sudan have started. The sub-projects cover installation of solar panels/energy, fishing gears and boat maintenance workshops, and women income diversification from the production of pastries and rearing of goats. In its objective of strengthening information sharing among member countries and beyond, the Project has regular learning events in the member countries and participated in the International Water and Marine Protected Areas (MPAs) events, the project participated in the 31st International Coral Reef Initiative (ICRI) general meeting, which took place in Paris, France from November 2-4, 2016. The project also participated in the annual Global Environment Facility (GEF) consultative meeting of Large Marine Ecosystems (LME) and coastal partners that took place in Paris, France from December 5 – 8, 2016. The Project contributed short clips to an international video prepared by the UNESCO GEF Large Marine Ecosystem Sub-committee and presented in New York, United States in June 2017. The Project also was featured prominently at the UNFCCC COP23 in Bonn, Germany in November 2017. The May 2017 mission noted that there has been some improvement in the disbursement rate, from 40% during the last mission in October 2016 to the current 77%. This was attributed to the increase in sustainable livelihood sub-projects activities in the pilot sites in Sudan and Egypt. As the Project original closing date is January 31st 2018, the World Bank Implementation Support Mission conducted during the period May 20th - 23rd 2017, found that the project is well on track but also concurred with PERSGA team on the need for an extension of the project, so that it meets its development objectives more sustainably. The reasons The World Bank Red Sea and Gulf of Aden Strategic Ecosystem Management GEF Project (P113794) for the extension are to: (i) allow more time for five livelihoods subprojects to be completed and run for some time to have their benefits demonstrated to the community before closing of the Project; (ii) assess implementation of the Marine protected Areas Management Plans developed by the Project in order to demonstrate effectiveness; (iii) allow for more time for environmental and socioeconomic monitoring activities to be well established and operational in Djibouti. The client has requested a formal extension of the Project as per the letter sent to the World Bank on July 16, 2017. An action plan was prepared by the client covering the requested extension period up to October 2018 was prepared and has been reviewed by the Bank to ensure the timely implementation of the remaining activities within the extended period. Being a regional project the team believes an extension of the closing date by 11 months would be sufficient to successfully conclude the remaining activities. The project is in compliance and all financial statements and audit reports have been submitted and there is no outstanding audit report. The most recent audit report for 2016 was submitted to the Bank in July 2017. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications TF-14701 Effective 31-Jan-2018 31-Dec-2018 30-Apr-2019