The World Bank PK-Sindh Barrages Improvement Project (P131324) REPORT NO.: RES48016 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PK-SINDH BARRAGES IMPROVEMENT PROJECT APPROVED ON JUNE 19, 2015 TO ISLAMIC REPUBLIC OF PAKISTAN, GOVERNMENT OF PAKISTAN WATER SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Najy Benhassine Regional Director: John A. Roome Practice Manager/Manager: Michael Haney Task Team Leader(s): Francois Onimus The World Bank PK-Sindh Barrages Improvement Project (P131324) ABBREVIATIONS AND ACRONYMS AF Additional Financing MoEA Ministry of Economic Affairs GoP Government of Pakistan PDO Project Development Objective SBIP Sindh Barrage Improvement Project The World Bank PK-Sindh Barrages Improvement Project (P131324) BASIC DATA Product Information Project ID Financing Instrument P131324 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 19-Jun-2015 30-Jun-2024 Organizations Borrower Responsible Agency Islamic Republic of Pakistan Irrigation Department Project Development Objective (PDO) Original PDO The project development objectives are to improve the reliability and safety of the Guddu barrage and strengthen the Sindh Irrigation Department’s capacity to operate and manage the barrage. Current PDO The PDO will be revised to strengthen the Sindh Irrigation Department’s capacity to operate and manage barrages and improve the reliability and safety of Guddu and Sukkur Barrages in the Province of Sindh. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-62420 25-May-2018 13-Jun-2018 13-Jun-2018 30-Jun-2024 140.00 5.64 128.80 IDA-56840 19-Jun-2015 26-Aug-2015 05-Nov-2015 31-Dec-2021 158.00 79.59 78.85 The World Bank PK-Sindh Barrages Improvement Project (P131324) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Sindh Barrages Improvement Project (SBIP) was approved on June 19, 2015 for the financing of Guddu Barrage rehabilitation and associated activities (original Credit: IDA 5684-PK). An Additional Financing was approved on May 25, 2018 for the rehabilitation of Sukkur Barrage (Additional Financing – AF Credit IDA 6242-PK). This restructuring responds to the request for the cancellation of the balance of the original Credit in the amount of SDR 56,143,230.15 from the Government of Pakistan (GoP). The request from the Ministry of Economic Affairs (MoEA) dated December 22, 2021, was received by the Bank on December 22, 2021. 2. The GoP intends to recommit the cancelled funds from the Original Credit and use the proceeds of the AF Credit to complete the rehabilitation works of Guddu Barrage and to commence the rehabilitation of Sukkur Barrage. The GoP would send a request for a new additional financing in due time in order to complete the rehabilitation of Sukkur Barrage. II. DESCRIPTION OF PROPOSED CHANGES 3. The PDO entered in the Bank system at the time of the Additional Financing reads: “The PDO will be revised to strengthen the Sindh Irrigation Department’s capacity to operate and manage barrages and improve the reliability and safety of Guddu and Sukkur Barrages in the Province of Sindh.” The PDO is edited by removing “will be revised” to align it with the PDO statement in the Financing Agreement. 4. The balance of the original IDA Credit (5684-PK) amounting to SDR 56,143,230.15 is cancelled on December 22, 2021, the date the cancellation request is received by the Bank. The disbursement table is amended accordingly and is shown below. The percentage of expenditure remains unchanged. Category Amount of Credit Percentage of Allocated Expenditures to be (expressed in Financed SDR) (inclusive of Taxes) (1) Works, goods, non-consulting services, and 56,811,172.85 100% consultants’ services for the Project, including Training and Incremental Operating Costs The World Bank PK-Sindh Barrages Improvement Project (P131324) Amount Cancelled as of May 25, 2021 20,745,597.00 Amount Cancelled as of December 22, 2021 56,143,230.15 Total Amount 133,700,000.00 III. SUMMARY OF CHANGES Changed Not Changed Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Results Framework ✔ Components and Cost ✔ 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 ✔ The World Bank PK-Sindh Barrages Improvement Project (P131324) Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The PDO will be revised to strengthen the Sindh Irrigation Department’s capacity to operate and manage barrages and improve the reliability and safety of Guddu and Sukkur Barrages in the Province of Sindh. Proposed New PDO The PDO is to strengthen the Sindh Irrigation Department’s capacity to operate and manage barrages and improve the reliability and safety of Guddu and Sukkur Barrages in the Province of Sindh. OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation Disburs UNDISBURSE IDA-56840- 112,954,403.0 ing&Re XDR 56,143,230.15 30-Dec-2021 56,811,172.85 D BALANCE 001 0 paying AT CLOSING IDA-62420- Disburs XDR 96,300,000.00 0.00 96,300,000.00 001 ing OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-56840-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: WK,GD,NonCS,CS,Trng,IOC 112,954,403.00 49,548,976.55 56,811,172.85 100.00 100.00 Total 112,954,403.00 49,548,976.55 56,811,172.85 .