The World Bank Cameroon - Multimodal Transport Project (P143801) REPORT NO.: RES33440 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CAMEROON - MULTIMODAL TRANSPORT PROJECT APPROVED ON MAY 27, 2014 TO REPUBLIC OF CAMEROON TRANSPORT AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Elisabeth Huybens Senior Global Practice Director: Guangzhe Chen Practice Manager/Manager: Nicolas Peltier-Thiberge Task Team Leader: Mustapha Benmaamar The World Bank Cameroon - Multimodal Transport Project (P143801) ABBREVIATIONS AND ACRONYMS CEMAC Communauté Economique et Monétaire des Etats de l’Afrique Centrale Central African Economic and Monetary Community CFA Collaboration Framework Agreement (Cadre de Collaboration en vue de l’opérationnalisation d’un dispositif sécuritaire d’accompagnement aux travaux routiers) to be entered into by MINDEF and MINTP C2ST Commission de Suivi Sécuritaire des Travaux / Security Monitoring Commission GoC Government of Cameroon DST Détachement de Sécurité des Travaux / Permanent Security Unit DSAT Dispositif Sécuritaire d’Accompagnement des Travaux / Works Security Support Framework ESMP Environmental & Social Management Plan ESIA Environmental & Social Impact Assessment GRM Grievance Redress Mechanism IDA International Development Association IDP Internally Displaced Persons MINDEF Ministère de la Défense / Ministry of Defense MINEPAT Ministère de l’Economie, de la Planification et de l’Aménagement du Territoire / Ministry of Economy, Planning and Regional Development MoF Ministère des Finances / Ministry of Finance MINTP/MPW Ministère des Travaux Publics / Ministry of Public Works NGO Non-Governmental Organization OBDFA Output-Based-Disbursement-Force-Account OP Operational Policies OIT Observatoire Indépendant des Travaux / Independant Observatory The World Bank Cameroon - Multimodal Transport Project (P143801) PDO Project Development Objective ROW Right-Of-Way RP Restructuring Paper RAP Resettlement Action Plan RPF Resettlement Policy Framework XDR Special Drawing Right The World Bank Cameroon - Multimodal Transport Project (P143801) BASIC DATA Product Information Project ID Financing Instrument P143801 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 27-May-2014 30-Jun-2021 Organizations Borrower Responsible Agency Republic of Cameroon Cellule BAD-BM, Ministry of Public Works Project Development Objective (PDO) Original PDO The project development objective is to increase multimodal transport efficiency and effectiveness along the Yaoundé– Kousseri Corridor. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-54650 27-May-2014 20-Aug-2014 19-Nov-2014 30-Jun-2021 71.00 32.47 30.84 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Cameroon - Multimodal Transport Project (P143801) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This Paper seeks approval to restructure the Cameroon Multimodal Transport Project (CMTP) (P143801) in response to a request made to this effect by the Government of Cameroon (GOC) dated October 19, 2018. The proposed restructuring aims to mainstream in project implementation and financing plan additional measures to strengthen security at works sites on the Maroua-Mora road section. Management believes that this Level 2 restructuring proposal involves significant operational risks that warrant consideration by the Board. Therefore, in accordance with Bank Procedure: Implementation Support to Project Completion (October 29, 2018), the restructuring will be sent to the Board for approval and the steps outlined for level one restructurings in the procedure will be followed. 2. The Project was approved on May 27, 2014 and became effective on November 19, 2014. The GOC’s October 19, 2018 letter included two requests: to put in place adequate security measures and to extend the current closing date of June 30, 2021 by one year. At the current pace of project implementation, all major project activities are expected to be completed by this closing date except the output-based road maintenance and management activity (discussed hereunder), which is currently expected to take another year to complete. However, this output-based road maintenance contract will be fully financed by the Government of Cameroon through its Road Maintenance Fund and its completion beyond the original project closing date will not prevent achievement of the project development objective. For this reason, the request to extend the closing date will not be granted. 3. The implementation of CMTP is currently rated Moderately Satisfactory (MS). The overall disbursement rate is currently at 51% and has improved following the launching of the works and supervision contracts for the rehabilitation of the Maroua-Mora road section. This project component constitutes about 70% of the total credit amount. The preparation of an Integrated Multimodal Transport Infrastructure Strategic Framework started in November 2017 has encountered delays, but it is back on track. Initial procurement difficulties encountered by the rail component are expected to be resolved following a phased approach adopted in April 2017 to improve the tendering responses. 4. A social assessment carried out in May 2017 had shown at that time that security threats to this section of the road were relatively low and could be controlled. The recommendations of the social assessment, including social risk mitigation measures, were captured in a Resettlement Policy Framework (RPF) and are currently being implemented. However, the security situation along the road remains volatile, especially as this road section is adjacent to the road section financed under the CEMAC project which is located in the troubled Far-North region of Cameroon. Some security and associated risks mitigation measures should therefore be taken. 5. While the security threats are not of the level identified for the adjoining Mora-Dabanga - Kousseri road section being rehabilitated under the CEMAC TTF Project (P079736), the Ministry of Public Works (MINTP) has confirmed that the Maroua-Mora road section will benefit from the same security arrangements that have already been introduced for the Mora-Dabanga-Kousseri road section under the CEMAC TTF project. These measures, which are fully funded by the GoC’s budget, include the deployment of a permanent Works Security Detachment (Detachement securitaire d’accompagnement des Travaux - DSAT). The extension of these security arrangements to the Maroua-Mora road section will be implemented under the umbrella of a national Collaboration Framework agreement (Cadre de Collaboration en vue de l’opérationnalisation d’un dispositif sécuritaire d’accompagnement aux travaux routiers) to be The World Bank Cameroon - Multimodal Transport Project (P143801) entered into between MINTP and MINDEF (the CFA). The task team reviewed a draft of the CFA provided on March 7, 2019 which is understood to be in final form and found it acceptable. The CFA is expected to be signed by the Minister Delegate to the Presidency in charge of defense and the Minister of Public Works. The CFA contemplates application of security measures to a particular work site (such as the Maroua-Mora section of the road) by MINDEF putting in place an ordre d’opération (Operation Order) and by the drawing up of an accord spécifique, or an agreement specific to that project (Specific Agreement) which would specify how the DSAT will be deployed in the intervention area and how it will be financed. The following additional measures will also be extended to the project: a. Civilian and military personnel involved in the project will undergo training by the International Red Cross on humanitarian rights; b. The contract of the NGO implementing the Grievance Redress Mechanism (GRM) includes this section of the road and will be amended to monitor and report Gender-Based Violence; c. Agreement to limit the right of way to 10-15 meters is being closely monitored by the engineering team, in a bid to controlling further involuntary expropriations. 6. The project development objective is “to increase multimodal transport efficiency and effectiveness along the Yaoundé–Kousseri Corridor”. Progress toward the achievement of the PDO is currently rated as Moderately Satisfactory (MS), and the status of implementation of project components is summarized as follows: ROAD COMPONENT 7. Key personnel of both the Contractor and the Supervision Engineer for the rehabilitation works of the Maroua-Mora road section are fully mobilized since 05 January 2017. The contractor’s key equipment is on site and all entry verification requirements and studies have been fulfilled. Works suspended during the current rainy season are ongoing. 8. Because the security problems in the Far-North region of Cameroon and the delays in the rehabilitation contracts, the GOC has proposed to dissociate from the road rehabilitation component the Output based Road maintenance and management activity that was initially attached to the rehabilitation contract. Nonetheless, given the relevance of maintenance to the project’s development objective, the GOC has agreed to maintain this activity in the project, and to relocate it to a more secure section of the same road corridor down south, from Bertoua to Ngaoundéré. 9. A new output-based road maintenance and management contract has thus been prepared with the help of an independent consultant, to be implemented over a three-year period as part of the proposed restructuring. The contract is expected to be launched in the second quarter of 2019. In addition to contributing to the achievement of the PDO of the MTP, this pioneer approach to road maintenance in Cameroon will benefit the sector in two other key areas: a. The activity will help consolidate the gains of the Regional CEMAC TTF Project which has supported construction works on the Bertoua-Mbere-Ngaoundéré section, as part of a multi-donor program including the African Development Bank and the European Union; b. It will serve as a pace setter and a pilot operation to a significant ten-year output-based road maintenance program to be implemented under the on-going Bank-supported Transport Sector Development Project (P150999). RAILWAY COMPONENT The World Bank Cameroon - Multimodal Transport Project (P143801) 10. The major activity under this component is the railway signaling works which constitute 73% of the overall railway component. This activity was delayed due to non-conclusive tendering. A revised bidding document is prepared so that the contracting process can be conducted in phases to match the limited absorptive capacity in this specialized field. II. DESCRIPTION OF PROPOSED CHANGES 11. The proposed restructuring will enable a revision of the project’s description and risk mitigation plan to reflect the additional measures agreed with the GOC in compliance with a social assessment conducted in May 2017. These measures will include: a. Reinforcement of security on civil works sites on the Maroua-Mora road section to be fully financed by the GOC; b. Increase in counterpart funding to enable the GOC to finance the additional security measures. 12. Change in Legal Covenants. The proposed restructuring will lead to a revision of relevant sections of the Financing Agreement to reflect the additional security measures 13. Changes to the Social Analysis & Risk Mitigation Framework pertaining to the proposed OBDFA Approach. The overall Project risk will remain High. That is because the unprecedented use of military-related entities for security presents an array of High risks. These include - (a) security risks; (b) social risks; (c) safeguards risks; and (d) reputational risks. To mitigate these risks, a comprehensive risk mitigation framework was prepared, including a set of robust mitigation measures which are based on a social assessment that was conducted in the Project area in May 2017. Notwithstanding the mitigation measures that will be put in place, the overall Project risk will remain High. The risks and the corresponding mitigation measures are described below. (a) Security risks. The project area is not far from an active military conflict zone – Operation Alpha -- where the Cameroonian Armed Forces have been conducting intensive operations to defeat Boko Haram insurgents since 2015. No incidents have been recorded on this section since 2015, but the latest news indicates an upsurge in terrorist actions on the Nigerian side, with in particular the emergence of a new force, Islamic State West Africa Province (ISWAP). It is possible that these forces will target the food, fuel and construction supplies that will be brought by Contractor, which could jeopardize the security of the villages. Both the Contractor as well as the population living along the road will be exposed to such risks. Security arrangements established for the works on Mora-Dabanga-Kousseri, fully financed by the GoC, agreed and detailed in the Works Security Support Framework (Dispositif Sécuritaire d’Accompagnement des travaux -DSAT) with the Ministry of Defense (MINDEF) responsible to provide overall security, will be extended to the Maroua-Mora road section. This includes: i. a Permanent Security Unit (Détachement de Sécurité des Travaux - DST) that will protect the Project site; ii. The Security Monitoring Commission (C2ST) responsible for the monitoring of security conditions in the project area. It is established in Maroua, chaired by the Governor of the Far North Region, and staffed with senior military officials; iii. The Independent Observatory (OIT) staffed with military personnel established by MINDEF to assess security conditions in the Far North Region. The Independent Observatory gathers intelligence on security conditions and report to the C2ST. (b) Social risks. The Project area presents a social sensitivity due to the presence of multiple Cameroonian Armed Forces, the Multi-National Joint Task Force, the large number of refugees and Internally Displaced People (IDPs), the distinct The World Bank Cameroon - Multimodal Transport Project (P143801) religious, political and ethnic composition of the local communities and the fact that the population has historically felt isolated and forgotten by the rest of the country. In this context, there are significant social risks linked to the increase of the military presence in an already heavily militarized zone, and the limited presence of the central and local government including police. In the past, allegations of improper behavior by the military have been reported by several civil society and international organizations including Amnesty International. A report by Amnesty International, “Right Cause, Wrong Means: Human Rights Violated and Justice Denied in Cameroon’s Fight Against Boko Haram” (July 14, 2016), alleges human rights abuses by the Cameroonian army including brutal treatment of civilians, arbitrary arrests of civilians suspected of collaboration or sympathizing with Boko Haram, disappearances and torture of suspects. Many of the arrests have been related to the enforcement of the Anti-Terrorism law that was passed in December 2014. This risk is considered substantial for the work site security that would be provided by other branches of the Cameroon Armed Forces. Mitigation measures would have aligned to what has been established for the works on Mora-Dabanga- Kousseri. This include: i. Establishment of high standard rules for the selection of military personnel for the Permanent Security Unit (Détachement de Sécurité des Travaux - DST) and training of DST personnel in international humanitarian law and human rights as well as gender-based violence issues and awareness. MINDEF will certify that background and security checks are performed to ensure that DST personnel have not been found guilty of improper behavior and abuse and are complying with the Military Code of Justice and Code of Conduct. Any member of the DST that is accused of any violation or abuse will be immediately removed from the Project area and prosecuted in a court of competent jurisdiction; ii. The joint MINTP-MINDEF social communication strategy prepared for Mora-Dabanga-Kousseri will be extended and adapted to this road section. The strategy will be implemented by the local NGO already in charge of Mora- Dabanga-Kousseri, in partnership with local media. This strategy will be complemented by the World Bank’s Corporate communication strategy which will include active monitoring of social and international media, engagement with international NGOs and dissemination of project related information; and iii. The Grievance Redress Mechanism (GRM) designed jointly by MINTP and MINDEF has been extended to this road section. The GRM relies on existing platforms at the community level as the main entry point and on a process by which complaints will be either redirected to the military justice system (complaints involving members of the military) or to the civil authorities, as appropriate and depending on the type of complaint. The key principles used to guide the GRM are transparency, accessibility and effectiveness. The local NGO (RIDEV) contracted by MINTP for implementing the GRM on Mora-Dabanga-Kousseri is also covering Maroua- Mora road section. Overall responsibility for the functioning and reporting remains with MINTP in collaboration with MINDEF. (c) Safeguard risks. Given the security related circumstances as well as the general high level of trauma experienced by the population, it was agreed that the entire population along the road will be treated as vulnerable and technical adjustments were made to the Project in order to significantly reduce the social impact, including resettlement and the involuntary acquisition of land. A Resettlement Policy Framework (RPF) was prepared by MINTP to guide the Contractor during construction. The RPF clearly indicates that the destruction of houses and mosques along the road will be avoided and that solutions will be sought to avoid the destruction of small social infrastructure such as water points, shade trees and farm fields. Screening criteria and guiding principles are also included in the RPF to be used for any cases where it is not possible to avoid negative impact and resettlement or where compensation measures are necessary. An abbreviated Resettlement Action Plan (RAP) will be prepared for these cases and compensation paid to the affected persons prior to the commencement of physical works. The compensation will be paid by the Contractor The World Bank Cameroon - Multimodal Transport Project (P143801) as they progress along the road as it is likely that a regular compensation process will not be possible given the extreme security conditions. Mitigation measures incorporated in this Project restructuring include: i. Adjustments to the technical specifications to reduce the Right of Way (ROW) from 30 m to 15 m to avoid destruction of homes and mosques; ii. Consultations focus groups and individual household surveys were held along the road during the social assessment in September 2016. Information regarding the Project was provided to local authorities and the local population and discussions were held regarding their concerns and expectations. More specifically, access to jobs will be provided to local population through specific recruitment processes carried out by the contractor and involving local authorities; iii. Training in the operational application of OP 4.12 and the provisions of the RPF will be provided to the contractor; and iv. Information regarding this approach will be included in the social communications strategy. Additionally, a strong, community based GRM has been designed jointly by MINTP and MINDEF in order to ensure that the local population has continuous access to project related information and can raise concerns as soon as possible. (d) Reputational risks. The World Bank will be working with MINTP. The involvement of the Cameroonian Armed Forces for security protection is likely to cause negative reactions and criticism from international and local human rights groups and media. This risk will increase in the event of any allegations of human rights violations by the various branches of the Cameroonian Armed Forces as well as possible attacks by Boko Haram targeting the armed forces or the population along the road. While the Project area remains very unstable and volatile and the reputational risk cannot be fully mitigated, the World Bank will extend to this road section the proactive and multidimensional corporate communications strategy in place for Mora-Dabanga-Koussere. Specifically, the corporate communication strategy is targeted as follows: (i) Internally by establishing communications and protocol guidelines for the management and the task team involved in the project (media training, Q&A) and developing a strong narrative to document the impact of the Project; and (ii) Externally by identifying and engaging with key local and international NGOs and media who regularly report on Cameroon and Boko Haram to regularly brief and update them on the ongoing works and to gather information regarding their perceptions and work in the Project area. Changes to social analysis and risk mitigation framework 14. Changes in Legal Covenants. Realizing that all risks associated with the heavy presence of the military and the ongoing presence of Boko Haram in the Project area might not be fully mitigated, the World Bank will rely on legal covenants and remedies that are incorporated in the amended Financing Agreements. The main ones are the following: (a) Suspension remedies: (i) If the World Bank receives evidence that military combat activity has escalated, and/or the security situation has deteriorated, and in the opinion of the IDA it would be improbable that the rehabilitation works could be completed; and (ii) If the CFA, the relevant Specific Order or the relevant Specific Agreement is amended, suspended, terminated or waived, to the extent that the operations, security, code of conduct and other arrangements established in those documents are adversely or completely changed as they relate to the Project. The World Bank Cameroon - Multimodal Transport Project (P143801) (b) Security covenants: (i) Requirement that the works contract includes appropriate safeguards for the management of the security risk resulting from conflicts; and (ii) Requirement for all military personnel assigned to guard the works, to comply with the security arrangements and the code of conduct set forth in the Works Security Support Framework, including taking the mandatory training. (c) Social Risk Mitigation Covenants: (i) Requirement for enforcement of high standard rules for the selection of military personnel hired to guard the works, and removal of any personnel involved in any alleged violation or abuse; and (ii) Requirement that, before their mobilization, all military personnel involved in the security of the area will have to receive relevant training (international humanitarian law, civilian-military engagement, gender–based violence and other relevant areas). III. SUMMARY OF CHANGES Changed Not Changed Legal Covenants ✔ Social Analysis ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ The World Bank Cameroon - Multimodal Transport Project (P143801) Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :The Road Maintenance Fund budget | Description :The Borrower will allocate, through the RMF, on a schedule and in installments agreed with the Association as reflected in the Annual Partially complied IDA-54650 No Change Work Plan and Budget, a total amount equivalent to with nine million Dollars ($9,000,000) for the maintenance of Maroua-Kousseri. FA Schedule 2. Section V.A. 2 (b) | Frequency :Yearly Finance Agreement :The Recruitment of a Road Specialist | Description :The Borrower will recruit a road IDA-54650 Complied with No Change engineer and a monitoring and evaluation specialist. FA Schedule 2. Section I.A.2 (b) (i) | Due Date :30-Nov-2014 Finance Agreement :A Computerized multi-project financial and accounting system | Description :The Borrower will adapt the computerized multi-project IDA-54650 Complied with No Change financial and accounting system within the Project Implementation Unit. FA Schedule 2. Section II.B. 4 | Due Date :31-Oct-2014 Finance Agreement :Finance Agreement Partially complied IDA-54650 No Change :TheAgreement: The Recruitment of a Technical Auditor with The World Bank Cameroon - Multimodal Transport Project (P143801) | Description :The Borrower will recruit a technical auditor with qualifications, experience and terms of reference acceptable to the Association. FA Schedule 2. Section V.C. I. This covenant was put to hold following the prolonged procurement process of the works as well as the halt of works within the sections envisaged for OPBRC. The position has been replaced with the Technical verificator being recruited under the CEMAC TTF OBDFA arrangement. |Due Date :28-Feb-2015. Finance Agreement :The deposit into counterpart Funds Account | Description :The Borrower will deposit into the Counterpart Funds Account, an amount equivalent IDA-54650 Complied with No Change to five million Dollars ($5,000,000) for the rehabilitation of Maroua-Mora. FA Schedule 2. Section V.A. 2 (a) (ii) | Due Date :30-Apr-2016 Finance Agreement :The Recruitment of an external Financial Auditor | Description :The Borrower will IDA-54650 Complied with No Change recruit an external financial auditor. FA Schedule 2. Section II. 2 B (5) | Due Date :28-Feb-2015 The Recipient shall not later than thirty days after the date of the Amendment, establish and maintain culturally appropriate and effective participatory and consultative GRM for the purpose of receiving IDA-54650 Not yet due New grievances on alleged harm, or misconduct by contractors or Military Personnel, or any occurrences of GBV associated with the Project activities along the Maroua-Mora road section. The Ministry of Defense shall be responsible for providing security for the works and sites along the Maroua-Mora section of the road in accordance with IDA-54650 the provisions of the Collaboration Framework Not yet due New Agreement, the Operation Order and the Specific Agreement (collectively, the " Security Arrangement Documents"). The World Bank Cameroon - Multimodal Transport Project (P143801) The Recipient shall ensure that each contract entered into for the implementation of the Project contains IDA-54650 appropriate safeguards for the management of the Not yet due New security risk resulting from conflicts in the areas where the activities under such contract are carried out. The Recipient shall ensure that Military Personnel assigned to guard the works, comply with the security arrangements and the code of conduct set forth in the Security Arrangement Documents including taking the IDA-54650 Not yet due New mandatory training set in the training plan, and shall establish: (a) a security monitoring commission and (b) an independent observatory to assess security conditions. The Recipient through the Ministry of Defense shall at all times during the implementation of the Project, and in form and substance satisfactory to the Association, IDA-54650 enforce high standard rules for the selection of Military Not yet due New Personnel assigned to guard the works, and immediately remove any personnel involved in any alleged violation or abuse. The Recipient through the Ministry of Defense shall at all times during the implementation of the Project, and in form and substance satisfactory to the Association, IDA-54650 ensure that all Military Personnel receive the required Not yet due New training in international humanitarian law, civilian- military engagement, gender-based violence and other relevant areas prior to their mobilization. The Recipient through the Ministry of Defense shall at all times during the implementation of the Project, and in form and substance satisfactory to the Association, effectively implement a social communication strategy IDA-54650 Not yet due New for, inter alia, engagement of local communities, non- governmental organizations, media, and authorities in the Project area along the Maroua-Mora section of the road. The World Bank Cameroon - Multimodal Transport Project (P143801) The Recipient through the Ministry of Defense shall at all times during the implementation of the Project, and in form and substance satisfactory to the Association, IDA-54650 and prior to commencement of any works, establish a Not yet due New transparent, accessible and effective Grievance Redress Mechanism (GRM), and actively monitor . implementation of said GRM.