Document of The World Bank FOR OFFICIAL USE ONLY Report No: 86194-YE RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF WATER FOR URBAN CENTERS PROJECT (GRANT NO. TF096519-RY) APPROVED ON MARCH 31, 2010 TO THE REPUBLIC OF YEMEN MARCH 27, 2014 Sustainable Development Department Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Regional Vice President: Inger Andersen Country Director: Hartwig Schafer Sector Director Junaid Kamal Ahmad Sector Manager: Steven N. Schonberger Task Team Leader: Richard W. Pollard YEMEN, REPUBLIC OF YEMEN-WATER SECTOR SUPPORT P107037 CONTENTS A. SUMMARY ........................................................................................................................... 3 B. PROJECT STATUS .............................................................................................................. 3 C. PROPOSED CHANGES .......................................................................................................... 3 1 Restructuring Status: FINAL Restructuring Type: Level two Last modified on date : 03/27/2014 1. Basic Information Project ID & Name P111757: GPOBA-FINANCED WATER FOR URBAN CENTERS PROJECT Country Yemen, Republic of Task Team Leader Richard W. Pollard Sector Manager/Director Steven N. Schonberger Country Director Hartwig Schafer Original Board Approval Date March 31, 2010 Original Closing Date: December 28, 2012 Current Closing Date June 30, 2014 Proposed Closing Date [if applicable] April 20, 2014 EA Category B - Partial Assessment Revised EA Category n/a EA Completion Date December 15, 2008 Revised EA Completion Date n/a 2. Revised Financing Plan (US$m) Source Original Revised BORR 9,000,000 0 GPOBA 5,000,000 0 Total 14,000,000 0 3. Borrower Organization Department Location Ministry of Finance Sana’a, Yemen 4. Implementing Agency Organization Department Location Ministry of Water and Environment Sana’a, Yemen 1 5. Disbursement Estimates (US$m) Actual amount disbursed as of Fiscal Year Annual Cumulative 2012 0.00 0.00 2013 0.00 0.00 2014 0.00 0.00 2015 0.00 0.00 2016 0.00 0.00 Total 0.00 6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? No Does the restructured project trigger any new safeguard policies? If yes, please select from No the checklist below and update ISDS accordingly before submitting the package. 7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The aim of the OBA project is to increase the coverage of urban water supply services on a sustainable basis. Outputs for the project include: (i) water supply systems (wells, pumps, storage); and (ii) main network and connections to water. This involves rehabilitation of existing infrastructure and development of some new wells and networks (benefiting 30,000 households #210, 000 people), targeting low income households in peri-urban areas that are currently either not served by the water network, are without a reliable water network. 7b. Revised Project Development Objectives/Outcomes [if applicable] n/a 2 YEMEN - WATER FOR URBAN CENTERS PROJECT RESTRUCTURING PAPER A. SUMMARY 1. In its letters of October 6, 2013, the Government of Yemen (the ‘Recipient’) has requested cancelling the Water for Urban Centers Project (the Project) that would involve an amendment of Schedule 2 of the Grant Agreement (GA), namely advancing the closing date of the Project from June 30, 2014 to April 2, 2014. B. PROJECT STATUS 2. The grant was made in response to the Ministry of Water and Environment’s request for financing to support pilot activities for improving water and sanitation services for poor households in selected urban areas as a part of the Water Sector Support Program (WSSP). The pilot project was prepared in 2009 and the grant agreement was signed on March 31, 2010. A condition of the grant was a co-financing ratio of at least 2:1 by the Recipient. The Government of Yemen’s contribution to the project was expected to come from the WSSP. As a resul t of the political and security crisis in Yemen and the associated reduction in donor financing for the WSSP, the project was restructured and the Government of Yemen was no longer able to provide the requisite co-financing for the GPOBA-funded pilot activities. 3. Following the request from the Ministry of The Minister for Planning and International Cooperation to cancel the full amount of the Grant, the Bank conveyed the notice of full cancellation of the Grant on January 14, 2014. C. PROPOSED CHANGES 4. The only change in this restructuring is advancing the closing date to April 2, 2014, based on the request from the Ministry of The Minister for Planning and International Cooperation to cancel the Grant. 3