The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) REPORT NO.: RES29535 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INCLUSIVE DEVELOPMENT IN POST-CONFLICT BOUGAINVILLE PROJECT APPROVED ON NOVEMBER 16, 2010 TO INDEPENDENT STATE OF PAPUA NEW GUINEA SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Susan S. Shen Task Team Leader: Caroline Mary Sage, Dodi Doiwa The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) ABBREVIATIONS AND ACRONYMS ABG Autonomous Bougainville Government DCD Department of Community Deveopment PMU Project Management Unit SPF State and Peace-building Fund The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) 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 P125101 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 16-Nov-2010 31-Mar-2018 Organizations Borrower Responsible Agency Department of Community Development, Autonomous Independant State of Papua New Guinea Bougainville Government Project Development Objective (PDO) Original PDO The Proposed Project seeks to contribute to the rebuilding of post-conflict social capital at the community level by; (a)strengthening the capacity of women's organizations and civil society organizations and civil society organizations that supportthe involvement of women in development activities and which advance the priorities of women in development to initiate and managedevelopment activities and b) increase the implementation of community development activities which are mroe inclusive of women inplanningand decision -making processes, and which more explicitly focus on the development priorities of women. Current PDO Revised project development objective: to increase the provision of community-prioritized services and income- generating opportunities driven by women and women’s groups in Bougainville. OPS_TABLE_PDO_CURRENTPDO The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-98558 03-Mar-2011 03-Mar-2011 03-Mar-2011 31-Mar-2018 4.92 4.18 .74 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. The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. 1. Background (a) The Projects aims to contribute “to increase of the provision of community-prioritized services and income- generating opportunities driven by women and women’s groups in Bougainville”. The largest component of the project is a community grants program to support proposals developed and managed by local women’s groups. The project has also provided a range of training and capacity building initiatives for the women’s groups and other community leaders. (b) In March 2014, the project underwent its first restructuring and was extended by six months to allow sufficient time for project completion due to delayed in project start-up. Subsequently, all activities were completed. In March 2015, as part of a level 2 restructuring that was approved by the RVP, the project was granted additional funding of US$2.4m, from the SFP and extended the project by two years to March 31, 2018. The project designed was updated to include a modification for the PDO and associated indicators. (c) In the draft March 2018 ISR, the Implementation Progress (IP) rating remains ‘Moderately Satisfactory’ however, the PDO rating was downgraded from a previous rating of ‘Moderately Satisfactory’ to ‘Moderately Unsatisfactory’. While the team is confident that the project will meet its objectives if granted an extension, it is felt that the current data available to verify the results is insufficient to justify a higher rating. (d) It is important to note that the results recorded to date are based on subcomponents whose completion has been verified through a completion certification process. There have been some delays in the verification process and the actual physical completion of projects is higher than recorded at present. Further, to supplement the results data from ongoing project monitoring and training surveys, the additional time will allow the project team to conduct a beneficiary survey which will provide additional data to verify the results achieved. 2. Justification and rationale for Restructuring (a) The original timeline did not adequately consider the Project Management Units’ (PMU) constrained capacity to draw down grant funds for additional round of grants whilst managing the ceiling cap of the draw down amounts. The PMU has done a commendable job of acquitting sub-component expenditure as quickly as possible, however, the timeframe remains extremely tight and there is a high risk that at least 30 percent of sub- projects in the third round are unlikely to be completed within the project timeframe. This restructuring would extend the Grant TF 98558 (SPF Grant) closing date by nine months from March 31, 2018 to December 31, 2018 to ensure that subcomponent activities can be completed prior to closing the project with adequate time and quality. This extension would also provide additional time for the PMU to conduct necessary closing processes including the audits and certification of sub projects. (b) The clearance to proceed with level 2 restructuring notwithstanding an overdue audit, was provided by the Practice Manager (GGOEP) and the Division Manager (WFACS) on January through an office memorandum. On February 20, 2018 no objection to proceed with restructuring was provided by TF program manager. The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) II. DESCRIPTION OF PROPOSED CHANGES This proposed restructuring seeks to extend closing date of the Inclusive Development in Post-Conflict Bougainville Project, TF098558, P125101 from current closing date of March 31, 2018 to December 31, 2018. This will be the third extension, totaling 2.5 years, and thus requires RVP approval. There are no changes to the Project Development Objectives (PDO) and this will be the final extension request. . 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 Loan Closing Date(s) ✔ 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 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 ✔ The World Bank Inclusive Development in Post-Conflict Bougainville (P125101) Change in Implementation Schedule ✔ 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 30-Sep-2014, 31- TF-98558 Effective 31-Mar-2014 Mar-2015, 31-Mar- 31-Dec-2018 30-Apr-2019 2018 Note to Task Teams: End of system generated content, document is editable from here.