Document of The World Bank Report No: 66060 v1 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PUBLIC SECTOR CAPACITY BUILDING PROJECT CREDIT TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA December 13, 2011 ABBREVIATIONS AND ACRONYMS AGD Auditor General’s Department IDA International Development Association DCS Department of Census and IT Information Technology Statistics GOSL Government of Sri Lanka PDO Project Development Objectives ICT Information and Communication Technology Regional Vice President: Isabel M Guerrero Country Director: Diarietou Gaye Sector Manager: Antonius Verheijen Task Team Leader: Farah Zahir 2 SRI LANKA PUBLIC SECTOR CAPACITY BUILDING P097329 CONTENTS Page A. SUMMARY ........................................................................................................................... 4 B. PROJECT STATUS ............................................................................................................. 4 C. PROPOSED CHANGES...................................................................................................... 5 ANNEX 3: EXTENSION OF CLOSING DATE ........................................................................ 6 3 PUBLIC SECTOR CAPACITY BUILDING RESTRUCTURING PAPER SUMMARY Government of Sri Lanka (GoSL) has requested for an extension of the Project implementation period. GoSL requested an extension: (i) to complete the training program of the Department of Census and Statistics (DCS) postponed due to Island wide Census of Population and Housing; (ii) to utilize fully the resources allocated under the human resource development and communication and external relationship sub- component under the Auditor General’s Department (AGD). The Bank has agreed to extend the AGD component by one year while cancelling the DCS component based on the performance of the two components. PROJECT STATUS Project status is summarized below. Project Development Objectives: To enhance the effectiveness, efficiency and productivity of two key public sector agencies, Department of Census and Statistics (DCS) and Auditor General’s Department (AGD) through an investment package that includes organizational strengthening, capacity building, information management, communication improvements, physical and information technology (IT) infrastructure, and Information and Communication Technology (ICT) support. Project Data Project Performance Ratings Approval Date : June 5, 2008 Overall rating Effectiveness Date : October 15, 2008 Achievement of PDO: Moderately Original Closing Date : December 31, 2011 Unsatisfactory (MU) Implementation Progress: MU Credit Amount for DCS component: US$ Achievement of PDO: Unsatisfactory (U) 12.05 millions Implementation Progress: Moderately Amount Disbursed –US$ 3.87 million (as Unsatisfactory (MU) of December 7, 2011) Credit Amount for AGD component : US $ Achievement of PDO: Satisfactory (S) 10.55 millions Implementation Progress: Satisfactory (S) Amount Disbursed : US$ 5.54 millon (as of December 7, 2011) The project has most recently been rated as Moderately Unsatisfactory for Project Development Objective (PDO) and Implementation Progress (IP), primarily due to 4 unsatisfactory progress on procurements in the Works category of expenditure under Part 1 (DCS component) of the Project. PDO and IP under Part 2 (AGD component) of the Project have been consistently rated as Satisfactory. PROPOSED CHANGE • Financing o Cancellations The undisbursed balances under Part 1 (DCS component) of the project in category (1) – Goods, consultants’ services, training and Incremental operating cost; and category (2) - Works, are cancelled. Pursuant to Section 6.03 of the General Conditions, an amount equal to SDR 4.75 million will be cancelled and no activities or expenditure can be incurred under the DCS component after December 31st, 2011. • Closing date The closing date of the project is extended from 31 December 2011 to 31 December 2012. 5 ANNEX 3 Extension of Closing Date SRI LANKA — PUBLIC SECTOR CAPACITY BUILDING P097329 CREDIT NO. IDA-44120 Restructuring Paper 1. The closing date for Sri Lanka, Public Sector Capacity Building, Credit No IDA 44120, will be extended from 31 December 2011 until 31 December 2012. 2. Implementation progress has been rated Moderately Unsatisfactory, entirely because of delays in the construction of the building for the Department of Census and Statistics (DCS). The undisbursed balance of SDR 4.75 million in category (1) and (2) under Part 1 (the DCS component) of the project will be cancelled, and no activities or expenditures incurred in respect of the DCS component of the project after the original closing date of 31 December 2011 will be financed. 3. Implementation progress under the AGD component of the project has been Satisfactory or Highly Satisfactory, and the project objectives continue to be achievable. AGD has prepared an action plan in consultation with the Bank for implementing the remaining activities of the project in a satisfactory manner. 4. The proposed extension is necessary to complete activities under the human resource development and communication and external relationship sub-component of the AGD component and to enable consultant support to be provided to AGD during the year-end field work and reporting phases of the audits of the December 31, 2011 financial statements of the Government of Sri Lanka. 5. This will be the first extension of the closing date of the project. 6