The World Bank Data for Decision Making (P160717) REPORT NO.: RES34352 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DATA FOR DECISION MAKING PROJECT APPROVED ON MARCH 31, 2017 TO CENTRAL AFRICAN REPUBLIC POVERTY AND EQUITY AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Jean-Christophe Carret Senior Global Practice Director: Carolina Sanchez Practice Manager/Manager: Pierella Paci Task Team Leader: Roy Shuji Katayama The World Bank Data for Decision Making (P160717) ABBREVIATIONS AND ACRONYMS ICASEES Central African Institute of Statistics and Economic and Social Studies (Institut Centrafricain des Statistiques, des Etudes Economiques et Sociales CAR Central African Republic CS-REF Monitoring Unit for Economic and Financial Reforms (Cellule de Suivi des Reformes Economiques et Financières) FM Financial Management PIU Project Implementation Unit PPA Project Preparation Advance PURSeP Emergency Project for the Rehabilitation of Public Services (Projet d’Urgence de Restauration des Services Publics) TFSCB Trust Fund for Statistical Capacity Building The World Bank Data for Decision Making (P160717) BASIC DATA Product Information Project ID Financing Instrument P160717 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 31-Mar-2017 31-May-2022 Organizations Borrower Responsible Agency Ministry of Economy, Planning, and Cooperation ICASEES Project Development Objective (PDO) Original PDO To increase the capacity of the national statistical institute (ICASEES) to produce and publicly disseminate statistics through data recovery, institutional development and support to data production. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1710 31-Mar-2017 24-May-2017 31-Oct-2017 31-May-2022 10.00 1.02 9.72 TF-A5107 31-Mar-2017 24-May-2017 31-Oct-2017 15-Apr-2019 .49 .19 .31 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Data for Decision Making (P160717) The World Bank Data for Decision Making (P160717) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Central African Republic (CAR) Data for Decision Making project was approved on March 31, 2017 and became effective on October 31, 2017. The project comprises two components: (1) statistical recovery, project management and professionalization and modernization of ICASEES, and (2) data production, capacity building and dissemination. The project has a total cost of US$10.49 million equivalent provided through an IDA grant (US$ 10 million equivalent) and Trust Fund for Statistical Capacity Building (TFSCB) (US$494,000 equivalent). 2. The project is implemented by the Central African Institute of Statistics and Economic and Social Studies (Institut Centrafricain des Statistiques, des Etudes Economiques et Sociales, ICASEES). However, due to low fiduciary capacity at ICASEES, the Project Implementation Unit (PIU) for the former Emergency Project for the Rehabilitation of Public Services (PURSeP), that is, the Cellule de Suivi des Reformes Economiques et Financières (CS-REF) based in the Ministry of Finance and Budget was vested responsibility for all fiduciary matters related to this Project, during the Project Preparation Advance (PPA) period and following effectiveness, to mitigate fiduciary risks and facilitate implementation. The project design envisioned an eventual transfer of fiduciary responsibilities to ICASEES following a satisfactory assessment by the World Bank of the fiduciary capacity at ICASEES. 3. The Ministry of Economy, Planning, and Cooperation (the Recipient) requested, in a letter dated May 31, 2018, the transfer of fiduciary responsibilities for this Project from CS-REF to ICASEES, citing that CS-REF no longer has the mandate to provide such support due to the closure of the PURSeP project. This request is consistent with the original project design as this transfer was envisioned during project preparation as part of the professionalization of ICASEES. The Bank replied stating no objection to the request subject to the prior completion of the following requirements: (i) the installation of financial management software at ICASEES, and (ii) the training of the fiduciary team on the use of the software. The acquisition of computer equipment for the team was also required but had been previously fulfilled. 4. During the last supervision mission from October 2 to 12, 2018, the Bank Financial Management (FM) Specialist and Procurement Specialist verified the fulfillment of these requirements and found that the financial management and procurement capacity were acceptable to proceed with the transfer. The Financial Management Assessment Report dated October 25, 2018 indicates that the FM arrangements at ICASEES for the Project meet the minimum fiduciary requirements under OP/BP10.00. Based on these findings, the team is proceeding with the requested change. 5. The Bank team is recommending the transfer of fiduciary responsibilities from CS-REF to ICASEES to be effective as of November 1, 2018. In preparation for this transfer, ICASEES has agreed with CS-REF that : (i) the proposed date for the transfer of fiduciary responsibilities would be November 1, 2018, (ii) the first audit for the project would cover the entire period under the responsibility of CS-REF, and (iii) the documentation archives for all fiduciary matters related to the Project will be consolidated and transferred from CS-REF to ICASEES. 6. In addition, the Bank team is recommending an extension of the closing date for the TFSCB Grant TF0A5107 by one year from April 15, 2019 to April 30, 2020, to allow for all planned activities to be completed. The Recipient requested this extension in a letter dated October 22, 2018. The manager of the TFSCB has provided their clearance for this extension and confirmed that it is compliant with the Administrative Agreement for the TFSCB. It should be noted that the closing date for IDA D1710-CF will remain May 31, 2022. 7. There are no overdue audits for the project. Given the very limited financial transactions in 2017, the Bank’s FM Specialist previously recommended that the audit of the limited 2017 activities should be conducted together with the 2018 audit. Thus, the first audit for the Project is not due until 2019. The World Bank Data for Decision Making (P160717) II. DESCRIPTION OF PROPOSED CHANGES 9. Transfer of fiduciary responsibility from CS-REF to ICASEES: The proposed transfer of fiduciary responsibility from CS- REF to ICASEES is scheduled for November 1, 2018. The first audit for the Project will cover the period under the responsibility of CS-REF, from the beginning of the project in 2017, including the PPA period, until October 31, 2018. The audit will also cover November and December 2018 under the responsibility of ICASEES, provided that the audit report clearly separates the two periods, namely by presenting a column for the November to December 2018 period separately. To ensure the continuity of fiduciary responsibilities for the project, all financial and procurement documents for this Project will be consolidated and physically transferred from CS-REF to the ICASEES office. 10. Additional measures are planned to reinforce capacity after the transfer. First, the Bank’s Public Expenditure and Investment Management Reform (Projet d'Appui de la Gestion des Depenses et des Investissements aux Reformes (AGIR)) Project has the mandate to provide technical support to other Bank projects in CAR and has agreed to support ICASEES. Second, a consultant experienced in Bank procurement procedures will be recruited to provide additional support to ICASEES for a month shortly after the transfer, not only coaching and directly helping the project procurement specialist with tasks, but also providing training to the ICASEES management (Committee of Directors) and staff on general procedures, evaluating proposals, and consultant selection. The Bank’s Procurement Specialist based in Bangui will coordinate with this consultant to ensure that the guidance provided is consistent with current policies. 11. Extension of closing date of the Trust Fund TF0A5107: The original closing date for the Grant Agreement for the Trust Fund (TFSCB) TF0A5107 is April 15, 2019. The proposed change is to extend the closing date for the Trust Fund to April 30, 2020, as requested by the Recipient. The manager of the TFSCB has agreed to the extension. 12. The proposed amendments to the Financing Agreement for IDA D1710-CF and the Grant Agreement for TFSCB TF0A5107 are the following: a. To amend Schedule 2, Section 1 A.4 of both agreements by specifying the vesting of responsibility for all fiduciary matters connected with Project implementation in ICASEES as of November 1, 2018, and to eliminate Schedule 2, Section 1 A.5 of both agreements, which describes the current arrangement with CS-REF. b. To extend the closing date of the Grant Agreement for TF0A5107 to April 30, 2020, applicable to sub-component 1.4 of the Project. III. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Financial Management ✔ Procurement ✔ Implementing Agency ✔ The World Bank Data for Decision Making (P160717) DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ APA Reliance ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D1710 Effective 31-May-2022 TF-A5107 Effective 15-Apr-2019 30-Apr-2020 30-Aug-2020 . The World Bank Data for Decision Making (P160717)