The World Bank DRC: Strengthening PFM and Accountability (P145747) REPORT NO.: RES49424 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DRC: STRENGTHENING PFM AND ACCOUNTABILITY APPROVED ON JANUARY 30, 2014 TO MINISTRY OF FINANCE GOVERNANCE AFRICA EAST Regional Vice President: Hafez M. H. Ghanem Country Director: Jean-Christophe Carret Regional Director: Asad Alam Practice Manager/Manager: Omowunmi Ladipo Task Team Leader(s): Mamadou Lamarane Deme The World Bank DRC: Strengthening PFM and Accountability (P145747) The World Bank DRC: Strengthening PFM and Accountability (P145747) BASIC DATA Product Information Project ID Financing Instrument P145747 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 30-Jan-2014 31-Dec-2021 Organizations Borrower Responsible Agency Ministry of Finance COREF,COREF Project Development Objective (PDO) Original PDO The proposed project development objective is to enhance the credibility, transparency, and accountability in the management and use of central government and selected sub-national governments’ finances. Considering the complementarity with other donor and Bank-funded programs, the proposed MDTF operation will focus on downstream PFM reforms of the central government and public financial management in selected provinces ( Equator, Kasai Oriental and North Kivu). Current PDO The project development objective (PDO) is to improve domestic revenue mobilization, public expenditure management, and accountability, at central level and in selected provinces. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1650 14-Feb-2017 03-Mar-2017 14-Aug-2017 31-Dec-2021 50.00 46.22 5.83 IDA-H9070 30-Jan-2014 20-Feb-2014 23-May-2014 31-Dec-2018 4.64 4.33 0 The World Bank DRC: Strengthening PFM and Accountability (P145747) TF-17290 28-May-2014 28-May-2014 28-May-2014 31-Dec-2018 17.00 17.00 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Progress toward PDO targets and implementation are rated satisfactory reflected in the achievement of most of the project targets, and completion of several activities. However, from 2020, project implementation was severely impacted by COVID19 which delayed most of the activities related to technical assistance (travel restrictions), as well as to workshops and training (travel restrictions, social distancing, etc.). As a result, the allocated grant totaling 37 million will not be used up. 2. With the project nearing its closing date, the government is seeking to ensure that the anticipated undisbursed balance of SDR4 million will still be available to DRC IDA allocation. The proposed restructuring is warranted in response to a request from the DRC Ministry of Finance, reference #2021/2288 dated December 1st, 2021, for the cancellation of the projected undisbursed balance to contribute to the funding of other Bank projects. II. DESCRIPTION OF PROPOSED CHANGES 3. As indicated above, the proposed change is related to the cancellation of the undisbursed balance which is anticipated to be SDR4 million (from Grant D1650) at project closing. As a result, the total grant amount would be reduced from US$72 million equivalent to US$65.5 million equivalent and the cancellation and reallocation between components, and categories are reflected in tables below (see section IV-Detailed Changes). 4. The proposed Level Two restructuring would not involve any other change. This project restructuring does not imply any modification to the PDO, components, procurement and FM arrangements and closing date, nor it has any impact on the safeguards category or policies triggered under the project. The implementation arrangements would also remain unchanged. The Financing Agreements will be amended as needed to reflect the cancellations and reallocation of funds between disbursement categories. III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ The World Bank DRC: Strengthening PFM and Accountability (P145747) Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1- Supporting Component 1- Supporting Domestic Revenue Domestic Revenue Mobilization 23.00 Revised 20.00 Mobilization and Expenditures and Expenditures Management Management The World Bank DRC: Strengthening PFM and Accountability (P145747) Component 2 - Strengthening Component 2 - Strengthening Budget Oversight and Improving 7.40 Revised Budget Oversight and 7.00 Transparency Improving Transparency Component 3 - Establishing Component 3 - Establishing PFM 33.20 Revised PFM Systems at the Provincial 30.00 Systems at the Provincial Level Level Component 4- Project Component 4- Project 8.50 No Change 8.50 Management Management TOTAL 72.10 65.50 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation UNDISBURSE IDA-D1650- Disburs XDR 37,000,000.00 4,000,000.00 01-Dec-2021 33,000,000.00 D BALANCE 001 ing AT CLOSING Fully IDA-H9070- Disburs XDR 3,041,539.92 0.00 3,041,539.92 001 ed Fully TF-17290- Disburs USD 16,999,512.38 0.00 16,999,512.38 001 ed OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-D1650-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GD, WRK, CS, NCS, OC, WRKSHOP, TR 37,000,000.00 31,928,970.42 33,000,000.00 100.00 100.00 iLap Category Sequence No: CANCELLE Current Expenditure Category: GD, WRK, CS, NCS, OC, WRKSHOP, TR 0.00 0.00 0.00 100 The World Bank DRC: Strengthening PFM and Accountability (P145747) Total 37,000,000.00 31,928,970.42 33,000,000.00 .