world bank document€¦ · yr 1 [07/02/08 -07/01/09] yr 2 [07/02/09 07/01/10] yr 3 [07/02/10...
Post on 18-Nov-2019
13 Views
Preview:
TRANSCRIPT
Document of
The World Bank
Report No:
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
DISASTER RISK MITIGATION AND ADAPTATION PROJECT
LOAN NUMBER 7563 AL
CREDIT NUMBER 4460 AL
JUNE 19, 2008
TO
ALBANIA
January 19, 2012
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
2
ABBREVIATIONS AND ACRONYMS
DRMAP Disaster Risk Mitigation and Adaptation Project
IBRD International Bank for Reconstruction and Development
IDA International Development Association
IGEWE Institute for Geoscience, Energy, Water and Environment
MOF Ministry of Finance
MOI Ministry of Interior
MOPWTT Ministry of Public Works, Transport and Telecommunication
MOF Ministry of Finance
PDO Project Development Objective
SDR Special Drawing Rights
SEEC CRIF Southeast Europe and Caucasus Catastrophic Risk Insurance Facility
Regional Vice President: Philippe H. Le Houerou
Country Director: Jane Armitage
Country Manager: Kseniya Lvovsky
Acting Sector Manager: Pier Francesco Mantovani
Task Team Leader: Jolanta Kryspin-Watson
3
Restructuring Status: Draft Restructuring Type: Level two Last modified on date : 01/19/2012
1. Basic Information Project ID & Name P110845: DISASTER RISK MITIGATION
Country Albania
Task Team Leader Jolanta Kryspin-Watson
Sector Manager/Director Laszlo Lovei
Country Director Jane Armitage
Original Board Approval Date 06/19/2008
Original Closing Date: 02/28/2012
Current Closing Date 02/28/2012
Proposed Closing Date [if applicable] 02/28/2013
EA Category C-Not Required
Revised EA Category C-Not Required-Not Required
EA Completion Date
Revised EA Completion Date
2. Revised Financing Plan (US$m) Source Original Revised
BORR 1.01 1.01
IBRD 3.00 3.00
IDA 6.16 6.16
Total 10.17 10.17
3. Borrower Organization Department Location
Republic of Albania Albania
4. Implementing Agency Organization Department Location
Ministry of Finance Albania
Ministry of Public Works,
Transportation and
Telecommunications
Albania
Institute of Energy, Water and
Environment
Albania
Ministry of Interior Albania
4
5. Disbursement Estimates (US$m) Actual amount disbursed as of 12/19/2011 3.06
Fiscal Year Annual Cumulative
2012 3.52 6.58
2013 2.58 9.16
Total 9.16
6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N
Does the restructured projects trigger any new safeguard policies? If yes, please select
from the checklist below and update ISDS accordingly before submitting the package.
N
7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes
The objective of the Albania Disaster Risk Mitigation and Adapation Project (AL-DRMAP) is to
strengthen institutional capacities (a) to reduce Albania's vulnerability to natural and man-made hazards;
and (b) to limit human, economic, and financial losses due to these disasters.
7b. Revised Project Development Objectives/Outcomes [if applicable]
5
ALBANIA
DISASTER RISK MITIGATION AND ADAPTATION PROJECT
P110845
CONTENTS
Page
A. SUMMARY ........................................................................................................................... 6
B. PROJECT STATUS .............................................................................................................. 6
C. PROPOSED CHANGES ...................................................................................................... 7
RESULTS/INDICATORS ....................................................................................................... 7
REALLOCATIONS ................................................................................................................ 7
CLOSING DATE ................................................................................................................... 8 ANNEX 1: RESULTS FRAMEWORK AND MONITORING .............................................. 10
6
ALBANIA
DISASTER RISK MITIGATION AND ADAPTATION PROJECT
RESTRUCTURING PAPER
A. SUMMARY
This Restructuring Paper seeks approval of the following proposed changes and
adjustments to the Albania Disaster Risk Mitigation and Adaptation Project (DRMAP):
(i) reallocation between the disbursement categories of the IDA Credit and IBRD
loan proceeds;
(ii) extension of the credit and loan closing dates by 12 months; and
(iii) revisions to the project results and monitoring framework.
The proposed restructuring does not entail revisions to the Project Development
Objective (PDO), total project costs, or the percentage of financed expenditures. There is
no change to the current safeguards category A. The described changes were discussed
with the Government and requested through letters from the Ministry of Finance dated
December 2, 2011, and September 9, 2010.
B. PROJECT STATUS
Project implementation shows continued progress in the last year, i.e., since December
2010 from its mid-term point. Effectiveness of the credit and the loan were delayed by
about a year due to the later than expected establishment of the Project Management
Team, and delays in the registration and establishment of the Catastrophe Risk Insurance
Facility. The project ratings for Implementation Progress (IP) and PDO were upgraded in
the last two ISRs to Moderately Satisfactory. The procurement rating is Satisfactory, and
the financial management rating is Moderately Satisfactory due to delays in the provision
of counterpart funding. There are no outstanding audit reports and all audit reports were
found satisfactory to the Bank.
Currently, almost all project activities are at various stages of procurement or have been
contracted. To date, total disbursements amount to US$ 3.1 million, of which US$ 2.28
million is from IBRD and US$ 0.78 million is from IDA. The value of commitments
under ongoing contracts is about US$2.6 million. Despite the gained momentum in
implementation, disbursements show a lag of about 49 percent (2 months). The delays in
the provision of the counterpart funding negatively affected the disbursements and the
situation was exacerbated by foreign financing ceilings imposed by the Ministry of
Finance in November 2011 due to the adverse impact of the Euro zone crisis on
economic growth, budget revenues and public debt level. Recently, sufficient allocations
were confirmed in the 2012 national budget with regard for both foreign and counterpart
7
financing of project implementation. Therefore, it is expected that disbursement will
show a significant increase in the coming months.
C. PROPOSED CHANGES
1. Results/indicators
The Project Development Objective (PDOs) is to strengthened institutional capacities (a)
to reduce Albania’s vulnerability to natural and man-made hazards; and (b) to limit
human, economic and financial losses due to disasters. No changes to the PDO are
proposed. It should be recognized that this PDO was designed for a longer than one
project timeframe using the Adaptable Program Lending (APL), and the current DRMAP
operation contributes to its achievement by strengthening the institutional capacities,
decreasing the vulnerability to disasters, and limiting financial losses by transferring
catastrophe risk to the international (re)insurance markets. However, the reduction in
human, economic and financial losses cannot be measured within the timeframe of this
project.
The proposed amendments aim at improving the results framework by bringing more
consistency and realism, reflecting the proposed loan and credit closing date extension
and reallocation, and making the results more measurable. The details of the proposed
revisions are included in Annex 1.
2. Reallocations
The proposed changes do not affect the total project cost but include the reallocations
between the disbursement categories of the IBRD loan and IDA Credit. There is no
change to the percentages of the expenditure to be financed under the credit and the loan.
With regard to the reallocations within the IBRD loan, these were necessitated by the
exchange rate fluctuations of US$ vis a vis Euro (the currency of the loan) which resulted
in a lower than agreed equity contribution to the Catastrophe Risk Insurance Facility
(US$1.779 million instead of US$2 million). Therefore, the Government requested Euro
185,000 to be reallocated from Consulting Services to the Membership Contribution
under the project.
8
Table 1: Proposed reallocation of proceeds for IBRD Loan Eligible Expenditures
Category of Expenditure Allocation [Euro] % of Financing
Current Revised Current Revised Difference Current Revised
(1) Goods under Part 1.2
of the Project
No
change 270,000 270,000 0 80%
No
change
(2) Membership
Contribution under Part
4.1 of the Project
No
change 1,330,000 1,515,000 185,000 100%
No
change
(3) Consultants' Services
under Part 4.2 of the
Project
No
change 400,000 215,000 -185,000 80%
No
change
TOTAL AMOUNT 2,000,000 2,000,000 -
Table 2: Proposed reallocation of proceeds for IDA Credit Eligible Expenditures
Category of Expenditure Allocation [SDR] % of Financing
Current Revised Current Revised Difference Current Revised
(1) Goods under Parts 1,2
and 3 of the Project, except
Part 1.2 thereof
No
change 2,320,000 2,819,529 499,529 80%
No
change
(2) Consultants' Services
under Parts 1,2 and 3 of
the Project
No
change 1,100,000 691,294 -408,706 80%
No
change
(3) Operational Costs No
change 380,000 289,177 -90,823 100%
No
change
TOTAL AMOUNT 3,800,000 3,800,000 -
Due to changes in Government priorities, the decrease in Consulting Services will mean
that some of the originally foreseen activities have to be dropped at this stage from the
Procurement Plan. This includes: the review and update of the emergency response
legislation, development of emergency response procedures, and training for first
responders. Also, the needs with regard to the support to Operation Costs are lower than
originally estimated. The IBRD Designated Account was inactive for the last 7 months;
however, once the reallocation of the loan proceeds is effective, the disbursement will be
made to fill the current gap in the membership fee to the SEEC CRIF. About Euro
215,000 is allocated for TA, procurement of which is in progress and planned to be
completed within next two months
3. Closing date
The Loan and Credit Closing Dates are proposed to be extended by 12 months, from the
current closing date of February 28, 2012 to February 28, 2013. This is a first extension
of the project.
9
Most activities for this operation are at various stages of procurement or have been
contracted. However, the completion of all initiated activities span beyond the current
closing date. These include: the development of the National Disaster Risk Management
Strategy and Investment Plan and provision of a variety of emergency response
equipment under Component 1; digitization of climate and weather data and installation
of the hydrometeorological observation network under Component 2; development of
National Plan and Guidelines for Building Eurocode 8 adoption under Component 3; and
establishment of a consumer website for the Catastrophe Regional Insurance Facility in
Albania under Component 4. All contracts are expected to be completed prior to February
2013.
ANNEX 1:
Results Framework and Monitoring
ALBANIA: DISASTER RISK MITIGATION AND ADAPTATION PROJECT
Project Development Objective (PDO): The objective of the Albania Disaster Risk Mitigation and Adaptation Project (AL-DRMAP) is to strengthen institutional capacities (a) to reduce Albania’s
vulnerability to the natural and man-made hazards and (b) to limit human, economic, and financial losses due to these disasters.
Revised Project Development Objective: n/a
PDO Level Results
Indicators* Co
re D=Dropped
C=Continue
N= New
R=Revised
Unit of
Measure Baseline
Cumulative Target Values**
Frequency
Data
Source/
Methodolog
y
Responsibility
for Data
Collection
YR 1
[07/02/08
-
07/01/09]
YR 2
[07/02/09
-
07/01/10]
YR 3
[07/02/10
-
07/01/11]
YR 4
[07/02/11
-
02/28/13]
A Disaster Risk Mitigation
Strategy and prioritized
Investment Program agreed by
Government
D - No Strategy or
Investment Plan - - - - - - -
Newly produced
hydrometeorological products
meet WMO standards
R Yes/No
Severe weather products and
warnings
tailored to users are not
available
None None None
Hydromet data
and alerts (flood and forest fire risk
indexes) are
disseminated to risk managers and
data posted on
IGEWE website
Annual estimates of
demonstrated
economic benefit of public forecasts
Project
Database IGEWE
Revisions to Building Code
bringing them to EU standards
(Eurocode 8) are ready for legal
adoption
R Yes/No Outdated
building codes None None
First round of
consultations
National plan of revisions
developed and
approved by MOPWTT
Bi-annual and
annual project
reports
Project
Database MoPWTT
Catastrophic risk insurance is
available to businesses,
households and government R Yes/No No catastrophic
insurance None None
SEE CRIF is
established
CAT insurance
infrastructure and regulatory
framework in
place
Bi-annual and annual project
reports
Project
Database
MoF
Europa Re
11
INTERMEDIATE RESULTS
Intermediate Result (Component 1 – Disaster Risk Management and Preparedness): Government develops capacity for effective response and disaster risk mitigation planning
Revised Intermediate Result (Component 1): Government develops a disaster risk management plan and has better technical capacity to respond to emergencies
Emergency response equipment
provided to the response units C Yes/No None None None
Rescue boats
and vehicles for emergency
assessment
teams delivered
Emergency
response equipment
delivered to first
responders
Bi-annual
and annual
project reports
Project Database MoI
Disaster risk action plan and
the prioritized investment
program formulated C Yes/No
No Strategy or
Investment Plan None None None
Strategy and Investment
Program developed
Bi-annual and annual
project reports
Project Database MoI
Training and exercise for the
first responders carried out D n/a - - - - - - - -
Intermediate Result (Component 2 – Strengthening of Hydrometeorological Services): Disaster risk managers (including households, farmers, and forest managers) receive more-
timely, more-accurate hydrometeorological forecasts and services
Revised Intermediate Result (Component 2): Disaster risk managers receive tailored hydromet forecasts and warnings hence, are better prepared to respond to weather-induced
hazards
Increased availability of
weather alerts (for floods and
wild fires), real time data and
historical data to multiple users
C Yes/No
Users do not
receive tailored weather products
None None
System for
fire and flood
weather products
established
Fire weather and
flood forecasts
distributed to users and historical data
digitized
Bi-annual and annual
project
reports
Project Database IEWE
Institutional capacity of
hydromet service strengthened
through training
N Yes/No
Limited access to international
practices and
knowledge
None None None
Training to
hydromet services staff provided
Bi-annual and annual
project
reports
Project Database IEWE
Hydromet monitoring network
modernized N Yes/No
Antiquated manual
monitoring
network
None None None
New monitoring stations installed
and the old ones
refurbished.
Bi-annual and annual
project
reports
Project Database IEWE
Public Survey of households,
farmers, forest fire managers
used to assess value of
information
D n/a - - - - - - - -
12
Intermediate Result (Component 3 – Development of Building Codes): Improved legal framework for building construction
Revised Intermediate Result (Component 3): A roadmap for adoption of Eurocode 8 developed and approved
EU-compatible building codes,
including seismic compliance
developed
C Yes/No Outdated building
codes
None None None
Revisions to
building codes developed to
comply with
Eurocode 8
Annual progress
reports
Project database MoPWTT
Mechanism for licensing of
engineers developed D n/a - - - - - - -
Training for engineers program
developed R Yes/No None None None None Training materials
developed
Annual
progress reports
Project database MoPWTT
Intermediate Result (Component 4 – Catastrophe Insurance): Mechanisms for participating in catastrophic risk insurance is in place. Revised Intermediate Result (Component 4): n/a
All systems (products,
distribution system,
infrastructure, regulatory
framework and public
awareness mechanism) ready
for the launch of the
catastrophe insurance
R Yes/No No
Catastrophe
Insurance
None None SEEC CRIF
is established
Albania becomes a
member of SEEC CRIF; cat products
developed;
regulations and website ready to
support cat
insurance
Bi-annual
and annual
project reports
Project Database MoF
Europa Re
*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)
**Target values should be entered for the years data will be available, not necessarily annually
top related