Document of The World Bank FOR OFFICIAL USE ONLY RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE SOCIAL PROTECTION PROJECT LOAN 7555-JM Approved May 13, 2008 TO THE REPUBLIC OF JAMAICA June 6, 2013 Human Development Sector Management Unit The Caribbean Country Management Unit Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS MLSS Ministry of Labor and Social Security PAD Project Appraisal Document StW Steps-to-Work Program PATH Program for Advancement Through Health and Education Regional Vice President: Hasan A. Tuluy Country Director: Francoise Clottes Sector Manager: Mansoora Rashid Task Team Leader: Francesca Lamanna 2 JAMAICA Social Protection Project CONTENTS A. SUMMARY......................................................................................................................................... 5 B. PROJECT STATUS .......................................................................................................................... 5 C. PROPOSED CHANGES .................................................................................................................. 6 3 DATA SHEET Jamaica Social Protection Project (P105024) LATIN AMERICA AND CARIBBEAN LCSHS-DPT Basic Information Project ID: P105024 Lending Instrument: Specific Investment Loan Regional Vice President: Hasan A. Tuluy Original EA Category: Not Required (C) Country Director: Francoise Clottes Current EA Category: Not Required (C) Sector Director: Keith Hansen Original Approval Date: 13-May-2008 Sector Manager: Mansoora Rashid Current Closing Date: 30-Sep-2013 Team Leader: Francesca Lamanna Report No: RES10555 Ministry of Finance and Public Service, Ministry of Labour and Social Security, Borrower: Ministry of Finance and the Public Service Responsible Planning Institute of Jamaica, Ministry of Labor and Social Security Agency: Restructuring Type Form Type: Short Form Approval Authority: Country Director Approval Restructuring Level 2 Explanation of Level II restructuring for Level: Approval Authority: extension of Closing Date Financing ( as of 05-Apr-2013 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P105024 IBRD-75550 Effective 13-May-2008 10-Jun-2008 10-Oct-2008 30-Sep-2013 30-Mar-2015 Disbursements (in Millions) % Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Original Revised Disburse d d sed d P105024 IBRD-75550 Effective USD 40.00 40.00 0.00 37.48 2.52 94 Policy Waivers Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes The Government of Jamaica (GOJ) has requested an extension of Closing Date from September 30, 2013 (original Closing Date) to March 30, 2015. This 18 months extension will allow for the completion of a key outstanding Project activity, namely the procurement, development and testing of the Public Sector Pension Management Information System. B. Project Status 1. The Project was approved by the Board on May 13, 2008, and the Loan Agreement was signed on June 10, 2008, and became effective on October 10, 2008. The Project Development Objective (PDO) is to support Jamaica in strengthening its social protection system. To this end, the project will: (i) further improve the effectiveness of the Program for Advancement Through Health and Education (PATH) to foster investment by poor families in human capital accumulation; (ii) develop a structured system for assisting working-age persons of PATH households seek and retain employment; (iii) enable the formulation of a reform program for the pension schemes for public sector workers; and (iv) develop a social protection strategy. The Project has four components (i) Improving effectiveness of PATH; (ii) Building capacity for the Steps-to-Work (StW) program; (iii) Improving public sector pension system administration and building capacity for reform; and (iv) Development of a holistic social protection strategy. 2. Overall, Project implementation is rated as Moderately Satisfactory and the PDO is on track to be achieved. The Loan has disbursed US$37.48 of the total Loan amount of US$40.0 million (94 percent of the Loan). 3. Component 1, 2 and 4 are largely finalized. Under Component 3- Improving Public Sector Pension Reform and Building Capacity for the Public Sector Pension System- a number of key activities were successfully completed, including tabling the Green Paper on Public Sector Pension Reform and Review the Process Reengineering for the New System. However, delays were experienced in the implementation of the reengineering of the public sector pension schemes. Mainly the procurement, development and testing of the Public Sector Pension Management Information System are still outstanding, and an extension in the Closing Date is required to ensure the completion of these critical activities under the project. 4. The development of an information system for the reengineered pension administration is crucial to include a sequential process that will integrate data collection, processing, reporting, and use of the information necessary for improving public employee information effectiveness and efficiency through better management at all levels of the pension administration services. Delays in the implementation of these activities under the project were due to the following: (i) significant delays in finalizing the public sector pension reform process reengineering review, (ii) major delays in reaching agreement among all the stakeholders on the extent of the task and terms of reference for the consultancy, (iii) significant budget and time underestimation for conducting the task and (iv) delays in the procurement process for conducting the task. 5. The reallocation of loan proceeds processed with a Restructuring Paper in the summer of 2012 responded to the need of ensuring adequate resources for conducting the consultancy for developing the Public Sector Management Information System. However, unexpected delays in the finalization of the TORs for the consultancy and in launching the procurement process for the consultancy jeopardized the successful completion of the public sector pension reform. 5 6. The suggested 18 months extension will ensure full completion of key outstanding activities and full disbursement of the project by the revised Closing Date. C. Proposed Changes No changes to the PDO, Project Components or Activities are proposed. Financing Change in Loan Closing Date(s): Explanation The Government of Jamaica (GOJ) is seeking an extension of Closing Date from September 30, 2013 (original Closing Date) to March 30, 2015. The rationale for the proposed extension is explained above. Original Closing Current Closing Proposed Closing Previous Closing Ln/Cr/TF Status Date Date Date Date(s) IBRD- Effective 30-Sep-2013 30-Sep-2013 30-Mar-2015 75550 6