The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) REPORT NO.: RES29326 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SCALING-UP THE PEER-TO-PEER LEARNING IN PUBLIC FINANCE AT THE LSG LEVEL IN THE KYRGYZ REPUBLIC - SUPPL APPROVED ON AUGUST 6, 2014 TO MINISTRY OF FINANCE GOVERNANCE EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Deborah L. Wetzel Practice Manager/Manager: Adrian Fozzard Task Team Leader: Zhanybek Ybraiym Uulu, Gregory Kisunko The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) ABBREVIATIONS AND ACRONYMS COP Community of Practice LSG Local Self-Government PDO Project Development Objective PIU Project Implementation Unit PMU Project Management Unit PTPL Peer-to-Peer Learning PR Resource Persons SALSGIR State Agency for Local Self-Government and Interethnic Relations of the Kyrgyz Republic Scaling-Up the Peer-to-Peer Learning in Public Finance at the Local SUPPL Self-Government level Project The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) 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 P148471 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 06-Aug-2014 30-Nov-2017 Organizations Borrower Responsible Agency State Agency for Local Self-Government and Interethnic Ministry of Finance Relations under the Government of the Kyrgyz Project Development Objective (PDO) Original PDO Improve quality of the budgeting at the local level - at which most citizens can readily observe changes and understand firsthand the impact - by increasing capacity of local budget officers, elected officials and local council members through innovative learning approach and by supporting the Government in establishing a countrywide community of practice where LSG representatives can learn and share experiences among themselves. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-16021 13-Mar-2015 13-Mar-2015 19-Jun-2015 30-Nov-2017 1.10 .96 .14 The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project background and results The Scaling-Up the Peer-to-Peer Learning in Public Finance at the Local Self Government Level Project (SUPPL) was approved by the Bank on March 13, 2105, counter-signed by the Recipient on March 13, 2015 and declared effective on June 19, 2015 after the Grant Agreement was ratified by the Kyrgyz Parliament. The Project supports the Government in establishing countrywide communities of practice (COPs) and uses these COPs to increase capacity of local budget officers on budget literacy, elected heads of LSG units and local council members through innovative peer-to-peer learning approach. In June 2016, the project was restructured to extend the project closing date for twelve months. Changes in Government procedures, which established a new requirement for project ratification by the Parliament, delayed ratification of the project by more than six months. The restructuring extended the project closing date till November 30, 2017 to provide the client with time to deliver all scheduled activities and disburse project funds. The project is well managed and delivered below the original cost schedule. The project activities are conducted as per the original plans, and to date, the project conducted eight centralized learning events for Financial Officer’s Resource Persons (PR), and six centralized learning events for RPs of the LSG units’ heads and local council members. 800 rayon level events were conducted to transfer the knowledge gained at the centralized learning events to the COP members. The topics of the learning events were identified by the beneficiaries of the project, and were on planning of local budgets, local budget execution and reporting, public procurement, accounting and financial reporting in public institutions, and norms of the newly enacted Budget Code. Cost savings amounting to $94,000 were generated from project activities that were financed by the client rather than the project - such as rent of some training facilities – and competitive selection of other services. The extension is required to utilize approximately US $94,000 savings generated during project implementation. The Client has requested the extension by letter of July 25, 2017 and developed an action plan to utilize the savings. The extension will allow the Client to undertake an additional round of training and gather information from the project beneficiaries on their achievements to inform an assessment of this innovative approach to capacity building. This is a no cost extension and does not require additional supervision budget. Project implementation is satisfactory. The Client shows ownership of the project, a project implementation team is in place, delivery of project activities follows the schedule envisioned in the project design, and as of August 11, 2017, over 76 percent of project funds are disbursed. The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) II. DESCRIPTION OF PROPOSED CHANGES B. Two months - no cost extension of the closing date and Reduction of Grace Period to two months The proposed restructuring extends Project closing date from November 30, 2017 to January 31, 2018 and reduces Grace Period from May 31, 2017 to March 30, 2017. The extension is requested by the Government because of the generated savings which will be utilized to deliver one additional round of learning events and assess project results. This extension will allow the client to complete all scheduled Project activities satisfactorily, deliver additional round of learning events, collect more information on achievements of the project beneficiaries, and thereby fully achieve its development objective. There will be no change to the project development objective (PDO). Two months Grace Period is established due to the Donor End Disbursement Date, scheduled on May 31, 2018. Respective clearances to reduce the Grace Period are provided by PFPTF and WFALN Departments. Task team is confident that the recipient will submit withdrawal applications within the two-month Grace Period. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. I. SUMMARY OF CHANGES Changed Not Changed Change in Loan Closing Date(s) ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-16021 Effective 30-Nov-2016 30-Nov-2017 31-Jan-2018 30-Mar-2018 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2015 0.00 0.00 2016 0.00 0.00 2017 0.00 389,848.06 2018 0.00 103,600.00 2019 0.00 0.00 The World Bank Scaling-up the Peer-to-Peer Learning in Public Finance at the LSG Level in the Kyrgyz Republic - SUPPL (P148471) Note to Task Teams: End of system generated content, document is editable from here.