The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) REPORT NO.: RES31714 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HARMONIZATION OF PRICE STATISTICS & NATIONAL ACCOUNTS IN LAC COUNTRIES AND SUPPORTING THE ESTIMATION OF PPP TIME SERIES APPROVED ON NOVEMBER 23, 2016 TO UNITED NATIONS ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN (ECLAC) OTHER OTHER Regional Vice President: Shantayanan Devarajan Country Director: Haishan Fu Senior Global Practice Director: Haishan Fu Practice Manager/Manager: Grant James Cameron Task Team Leader: Maurice Nsabimana The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) ABBREVIATIONS AND ACRONYMS ECLAC United Nations Economic Commission for Latin America and the Caribbean GDP Gross Domestic Product GRS Grievance Redress Service ICP International Comparison Program LAC Latin America and the Caribbean NSO National Statistical Office PDO Project Development Objective PPOD Program Planning and Operations Division PPP Purchasing Power Parities SDG Sustainable Development Goals TFSCB Trust Fund for Statistical Capacity Building WB World Bank The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) 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 Financing Instrument P160275 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 23-Nov-2016 31-Dec-2018 Organizations Borrower Responsible Agency United Nations Economic Commission for Latin America United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and the Caribbean (ECLAC) Project Development Objective (PDO) Original PDO The overall objective of the project is to build the capacity of pilot countries in the areas of price statistics and national accounts. Specific objectives include: (a) Improving country statistical capacity in the compilation of detailed disaggregated national accounts expenditure data, and addressing gaps identified in the 2011 ICP round. Efforts would focus specifically on improving difficult to measure areas, such as housing, financial services, net purchases abroad, services provided by non-profit institutions serving the households, etc.; (b) Improving the quality, comparability and consistency of consumer price data across the ten pilot countries, by advancing harmonization of CPI and ICP regional and sub-regional lists and survey activities; (c) Filling identified data gaps in price statistics and national accounts, and introducing a new approach to allow the production of regular annual estimation of PPPs for LAC countries; and (d) Promoting partnerships and strengthening the sense of ownership of the international comparison between national statistical offices (NSOs) and regional and international agencies by sharing good practices and building human capital. OPS_TABLE_PDO_CURRENTPDO The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A3985 23-Nov-2016 09-Feb-2017 09-Feb-2017 31-Dec-2018 .41 .14 .27 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 A. Project Status 1. The Grant Agreement for this project (USD 0.41m) was signed in early February 2017. Despite initial delays in reaching effectiveness, which occurred due to the introduction of new rules of engagement with UN agencies, the project is on track. ECLAC received grant funds just in time to support the first set of project activities in June 2017 as planned. Although data collection in the region was delayed following the meeting by recent climate disruption and natural disasters, implementation of the ICP in Latin America and the Caribbean is now underway. Over 30 countries from the region are expected to participate in the 2017 ICP cycle of activities. All the relevant intermediate results indicators have been met, and activities are on-going to achieve the project development objectives. B. Rationale for Restructuring 1. This is a recipient-executed Grant which is being implemented by a United Nations (UN) Agency. ECLAC has successfully managed related activities in the 2005 and 2011 ICP rounds (TFICP Grants No TF099205, TF011535, and TF12995) through its Unit of Economic and Environmental Statistics. 2. In a letter dated February 5, 2018, ECLAC requested an amendment that would allow them to expand the grant agreement’s scope to as many countries in the Latin America and the Caribbean region as possible in response to the large demand from countries to participate in the 2017 International Comparison Program (ICP) and related capacity-building activities covered by this grant. Restructuring would allow ECLAC to support additional countries as requested, by reducing the number of activities and condensing the activities so that the grant finishes by the end of 2018 as planned. Both TFSCB Trust Fund Administrator and this project’s Financial Management specialist were informed of the amendment request and provided their approval to proceed with the amendment. The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) II. DESCRIPTION OF PROPOSED CHANGES 1. The Recipient/project Implementing Agency seeks to expand the grant agreement’s scope to as many countries in the Latin America and the Caribbean region as possible in response to the large demand from countries to participate in the 2017 International Comparison Program (ICP) and related capacity-building activities covered by this grant. The request is consistent with development objectives and would to contribute to project outcomes. 2. ECLAC would support additional countries while reducing the number of activities and condensing the activities so that the grant finishes by the end of 2018 as planned. 3. The requested changes alter the geographical scope but not the nature of project activities, closing date, implementation arrangements. There are no outstanding audit reports. The project has not been restructured earlier. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Implementing Agency ✔ Change in Components and Cost ✔ Change in Loan Closing Date(s) ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The overall objective of the project is to build the capacity of pilot countries in the areas of price statistics and national accounts. Specific objectives include: (a) Improving country statistical capacity in the compilation of detailed disaggregated national accounts expenditure data, and addressing gaps identified in the 2011 ICP round. Efforts would focus specifically on improving difficult to measure areas, such as housing, financial services, net purchases abroad, services provided by non-profit institutions serving the households, etc.; (b) Improving the quality, comparability and consistency of consumer price data across the ten pilot countries, by advancing harmonization of CPI and ICP regional and sub-regional lists and survey activities; (c) Filling identified data gaps in price statistics and national accounts, and introducing a new approach to allow the production of regular annual estimation of PPPs for LAC countries; and (d) Promoting partnerships and strengthening the sense of ownership of the international comparison between national statistical offices (NSOs) and regional and international agencies by sharing good practices and building human capital. Proposed New PDO The overall objective of the project is to build the capacity of beneficiary countries in the areas of price statistics and national accounts. Specific objectives include: (a) Improving country statistical capacity in the compilation of detailed disaggregated national accounts expenditure data, and addressing gaps identified in the 2011 ICP round. Efforts would focus specifically on improving difficult to measure areas, such as housing, financial services, net purchases abroad, services provided by non-profit institutions serving the households, etc.; The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) (b) Improving the quality, comparability and consistency of consumer price data across beneficiary countries, by advancing harmonization of CPI and ICP regional and sub-regional lists and survey activities; (c) Filling identified data gaps in price statistics and national accounts, and introducing a new approach to allow the production of regular annual estimation of PPPs for LAC countries; and (d) Promoting partnerships and strengthening the sense of ownership of the international comparison between national statistical offices (NSOs) and regional and international agencies by sharing good practices and building human capital. OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE A summary report Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes No Change Date 15-Sep-2016 31-Dec-2018 Workshops on Price Statistics and National Accounts Detailed Expenditures Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 4.00 Revised Date 15-Sep-2016 31-Dec-2018 Intermediate Indicators IO_IND_TABLE A sub-regional/regional survey list and implementation of the surveys Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes No Change Date 15-Sep-2016 31-Dec-2017 Training materials for price statistics and national accounts in Spanish/English Unit of Measure: Number Indicator Type: Custom The World Bank Harmonization of Price Statistics & National Accounts in LAC Countries and Supporting the Estimation of PPP Time Series (P160275) Baseline Actual (Current) End Target Action Value 0.00 1.00 2.00 No Change Date 15-Sep-2016 31-Dec-2018 Note to Task Teams: End of system generated content, document is editable from here.