The World Bank Agricultural Development Support Project (P147629)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AGRICULTURAL DEVELOPMENT SUPPORT PROJECT APPROVED ON APRIL 23, 2015 TO REPUBLIC OF THE UNION OF MYANMAR REPORT NO.: RES29972 Public Disclosure Authorized AGRICULTURE EAST ASIA AND PACIFIC Public Disclosure Authorized Regional Vice President: Country Director: Senior Global Practice Director: Practice Manager/Manager: Task Team Leader: Victoria Kwakwa Ellen A. Goldstein Juergen Voegele Nathan M. Belete Indira Janaki Ekanayake

2 ABBREVIATIONS AND ACRONYMS ACC ADSP CD EA IDA MU PDO PIC PMU RF RP WUGs Agriculture Coordination Committee Agriculture Development Support Project Country Director Environmental Assessment International Development Association Moderately Unsatisfactory Project Development Objective Project Implementation Committee Project Management Unit Results Framework Restructuring Paper Water User Groups

3 Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID P Original EA Category Financing Instrument Investment Project Financing Current EA Category Approval Date 23-Apr-2015 Current Closing Date 30-Jun-2022 Organizations Borrower Republic of the Union of Myanmar Responsible Agency Ministry of Agriculture, Livestock and Irrigation Project Development Objective (PDO) Original PDO The Project Development Objective is to increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient's Bago East, Nay Pyi Taw, Mandalay, and Sagaing regions. Current PDO The Project Development Objective is to increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient's Bago East, Nay Pyi Taw, Mandalay, and Sagaing regions, and, in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to said Eligible Crisis or Emergency. Summary Status of Financing Ln/Cr/Tf Approval Signing Effectiveness Closing Net Commitment Disbursed Undisbursed IDA Apr Sep Sep Jun

4 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. An IDA credit of US$100 million was approved on April 23, 2015 to help increase crop yields and cropping intensity in the selected existing irrigation sites in the Recipient s Bago East, Nay Pyi Taw, Mandalay and Sagaing Regions. The Agriculture Development Support Project (ADSP) (like four other Bank-financed projects in Myanmar) was formally restructured in June 2016 in response to the 2015 floods and landslides, to add in the Project Development Objective (PDO), the following: in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to said Eligible Crisis and Emergency (refer to Restructuring Paper for details). The funds allocated from ADSP (Credit no MM) to the Immediate Response Mechanism (IRM) amounted to US$4,991,000 (SDR3,560,000) reallocated from Categories (1) and (2) based on the estimates provided in the Contingent Emergency Response Implementation Plan (CERIP). The approved reallocation of ADSP funds for the IRM response is not expected to scale down originally proposed activities and indicators targets. 2. The project had a slow start due to a steep learning curve needed by the newly merged Ministry of Agriculture, Livestock and Irrigation (from previously separate two Ministries) to implement donor-funded projects, delays in setting up the Project Management Unit (PMU) of ADSP, and the various internal procurement steps and funds flow arrangements required by the Government. The PMU team is now fully staffed and has a good working relationship with the Agriculture Coordination Committee (ACC) and the Project Implementation Committee (PIC) at the regional, district and township levels. Since the last mission in October, significant implementation progress has also been noted in all components being implemented by the different departments and divisions, which have tapped their existing resources to continue with project activities, while waiting for the delivery of project-procured goods. The project now has mostly achieved or in process of meeting the agreed key actions, especially the procurement-related actions. However, given the delays in procurement of goods and technical advisory services, the overall implementation progress is affected and is still rated as moderately unsatisfactory (MU). Immediately prior to the receipt of the request letter from the Government, the agreed disbursement targets for 2017/18 were met. This proposed restructuring will contribute to further improvement in implementation performance allowing for and eventual upgrading of IP ratings to moderately satisfactory (MS). 3. The mission s visits to the irrigation systems in North Yamar, Sagaing Region and Swa Chaung, East Bago Region, and consultation meetings with farmers, extension officers, and MOALI staff reconfirmed the continued relevance of ADSP project design to meet the PDO and the Government emphasis to provide benefits to a wide range of stakeholders. Compliance to safeguards and fiduciary requirements have been generally satisfactory; except for the delayed

5 submission of the audited project Financial Statement. Project has obtained clearance letter to proceed with site specific safeguards documents from the government agency responsible for issuing clearance (Department of Environment, ECD) and stakeholder consultation meetings are scheduled in the coming months. The Government indicated during the last mission that this is closely being followed up with the concerned office and that the delays were due to translation of document into the local language. II. DESCRIPTION OF PROPOSED CHANGES 4. This is a Level 2 project restructuring and consists of the following revisions, which are expected to help increase the likelihood of achieving the PDO. (a) Adjustments and additions to some indicators in the Results Framework (RF); (b) Updating the disbursement estimates; (c) Improvements in the implementation schedule; and (d) Expansion of land digitization activities under Component 1.3. Adjustments and additions to some indicators in the Results Framework (RF) 5. Change in the PDO indicator end target from 50% female direct beneficiaries to 25%. The original target was set based on consideration of the entire population of the project communities based on the 2010 Agricultural Census data, where about 51% are women. However, only 15% of the farm households are headed by women and more than 50% of them are 60 years old or older (and assumed to be not engaged in farming anymore). On that basis, the target needed to be revised downwards. While the target would be reduced, the project would: (a) proactively reach out and give equal opportunities to women to participate in the relevant project activities; and (b) ensure information, education and communication (IEC) campaign strategies and materials emphasize inclusive participation of both men and women. 6. Addition of two (2) intermediate results indicators under Component 1: (a) irrigable land area with Feasibility Study completed (in hectares); and (b) share of irrigable area where rehabilitation works have been completed under the project (in hectares). The proposed additional indicators would reflect the interim progress in the component implementation based on the area covered by the various stages of civil works implementation. These two new intermediate results indicators would also capture the transitional milestones between the planning phase and the full completion of rehabilitation/repair works in the target irrigation systems and allow for much more refined monitoring; and if delays occur, to help address them as quickly as possible. The end-of-the project targets for both indicators would be 35,000 hectares. 7. Change in the end target in two intermediate results indicators under Component 2: (a) indicator #11(a) - number of target clients satisfied with agricultural services from 198,000 females and 198,000 males to a total of 120,000 clients (of which 25% are females); and (b) indicator #11(b) - targeted clients from 331,000 females and 331,000 males to a total of 120,000 clients (of which 25% are females). The proposed change is due to an error in the

6 computation of the original targets for these indicators during project preparation, as the number of clients exceeds the target project direct beneficiaries of 120,000. This proposed change would correct the error and ensure consistency with the PDO indicator target (see above paragraph) of 120,000, which is the scope that the project resources, activities and design can cover. 8. Change in the annual cumulative targets of Technologies demonstrated in the project area under Component 2: The proposed change is to address delays in irrigation rehabilitation works that negatively affected technology demonstration and adoption under irrigated agriculture in the project target areas. Proposed cumulative targets are as follows: Year 1 0; Year 2 2 technologies; Year 3 10; Year 4 21 technologies; Year 5 32; Year 6 46; and Year 7 56 technologies. Updating the disbursement estimates 9. Change in disbursement estimates/projections. The change/updating of the disbursement projections of the Government request letter considers the modification in the Government s Fiscal Year (FY), which was recently changed from April-March FY period to November-October FY period, and which would affect the FY budget planning and allocation to the project. The proposed changes would also reflect a more realistic annual estimate based on the current and projected implementation progress, and thus would reduce the current disbursement lag. 10. The updated disbursement estimates are reflected in a separate table. These estimates in the Restructuring Paper (RP) were adjusted to reflect the Bank fiscal year for ease of implementation monitoring for a given period. There are no changes to the Category allocation under the Section IV.A.2 of Schedule 2 to the Finance Agreement of the project. Improvements in the implementation schedule 11. Sequential/staggered implementation (vs. simultaneous implementation) of the four irrigation systems rehabilitation and repair works under Component 1. Activities would be undertaken by batch (two sites per batch of the four priority irrigation scheme sites) with the irrigation systems in North Yamar, Sagaing Region and Sinthe, Nay Pyi Taw Region commencing first, followed by Male Nattaung, Manadalay Region and Swa Chaung, East Bago Region and the rest. This approach is assessed as more efficient as it would consider the capacity of the implementing agency. This would also provide the project with lessons and good practices on irrigation upgrading, construction management and supervision, and institutional and capacity development of the implementing agency and the water users groups that the rest of the irrigation systems can build on; and therefore, reducing the risk of encountering the same implementation challenges. Expansion of land digitization activities under Component Expand the scope/area of the digitization activity to cover the entire irrigation command area (under Component 1.3). The project originally intended to produce digitized maps in some pilot areas within each of the irrigation scheme sites only. During implementation, it was found that the Government does not have the original blue prints of the

7 target irrigation systems as well as the area maps of the irrigation command area that is digitized. Given the importance of digitized maps in the preparation of the final detailed engineering and design of rehabilitation works, as well as for cropping pattern/crop planning and prioritization, taxation, land administration and management, etc., it is proposed that this activity be expanded to cover the entire irrigation commend area. The digitized copy will also ensure availability and protection from loss and destruction of the official records of the Government. It will further assist the Ministry to overlay several activities taking place in each season in the irrigation schemes. Regional, District, and Township, and Village track level administration can be improved with those digitized maps. 13. Response to the provisions of the Irrigation Law. The new Irrigation Law was passed on August 31, The provisions of the Law are supportive of the project design and do not negatively impact the achievement of the PDO. One of the most important provisions in this law is the water use rights of farmers and their duty to organize themselves into Water User Groups (WUGs). Previously, the absence of a legal framework caused delays in the startup of the Component 1.1 activities, which deals with WUG establishment and strengthening. The procurement of the consulting services for this activity has been initiated, and with the enactment of the law, budget can now be allocated and spent for this specific purpose. III. SUMMARY OF CHANGES Changed Change in Results Framework Not Changed Change in Disbursement Estimates Change in Implementation Schedule Other Change(s) Change in Implementing Agency Change in DDO Status Change in Project's Development Objectives Change in Components and Cost Change in Loan Closing Date(s) Cancellations Proposed Reallocation between Disbursement Categories Change in Disbursements Arrangements Change in Overall Risk Rating Change in Safeguard Policies Triggered Change of EA category Change in Legal Covenants

8 PDO_IND_TABLE The World Bank Change in Institutional Arrangements Change in Financial Management Change in Procurement Change in Economic and Financial Analysis Change in Technical Analysis Change in Social Analysis Change in Environmental Analysis IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators Direct project beneficiaries Value No Change Female beneficiaries Unit of Measure: Percentage Supplement Value Revised Average yields of selected crops in project areas increased Unit of Measure: Percentage Value No Change

9 Paddy rice (wet season) Unit of Measure: Percentage Breakdown Value No Change Paddy rice (dry season) Unit of Measure: Percentage Breakdown Value No Change Cropping intensity in project areas increased Unit of Measure: Percentage Value No Change Intermediate Indicators IO_IND_TABLE Area provided with new/improved irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Corporate Value No Change Area provided with new irrigation or drainage services Unit of Measure: Hectare(Ha) Indicator Type: Corporate Breakdown

10 Value No Change Prefeasibility land assessment of command irrigation area completed Unit of Measure: Hectare(Ha) Breakdown Value No Change Date 30-Nov Oct Jun-2022 Water users provided with new/improved irrigation and drainage services (number) Value No Change Water users provided with irrigation and drainage services - female (number) Breakdown Value No Change Operational water user associations created and/or strengthened (number) Value No Change Technologies demonstrated in the project areas (number)

11 Value Revised Land area under sustainable landscape management practices Unit of Measure: Hectare(Ha) Indicator Type: Corporate Value Revised Land users adopting sustainable land mgt. practices as a result of the project Value No Change Land users adopting SLM practices as a result of the project - female Supplement Value No Change Farmers adopting improved agricultural technology Indicator Type: Corporate Value No Change Clients who adopted an improved agr. technology promoted by project female Breakdown

12 Value No Change Targeted clients satisfied with agricultural services (percentage) Unit of Measure: Percentage Value No Change Targeted clients satisfied with agricultural services - male (number) Supplement Value Revised Targeted clients satisfied with agricultural services - female (number) Supplement Value Revised Targeted clients- male (number) Supplement Value Revised Targeted clients female (number) Supplement

13 Value Revised Client days of training provided (number) Value No Change Date 30-Oct Jun Jun-2022 Client days of training provided - Female (number) Breakdown Value No Change Project progress reports submitted on time Value No Change Annual audit report submitted on time Unit of Measure: Yes/No Value No No Yes No Change Date 30-Oct Jun Jun-2022 Goods procured and distributed as outlines in the CERIP Unit of Measure: Yes/No

14 Value No No Yes No Change Date 14-Jun Oct Jun-2017 Pre-feasibility land assessment of command area completed Unit of Measure: Hectare(Ha) Value New Date 30-Oct Oct Jun-2022 Share of irrigable area where rehabilitation works have been completed under the project Unit of Measure: Hectare(Ha) Value New Date 30-Oct Oct Jun-2022 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed ,977, ,977, ,050, ,904, ,450, ,900, ,000, ,000, ,000, ,500, ,000, ,500, ,522, ,218,400.00

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