The World Bank Trade Promotion and Quality Infrastructure (P146994) REPORT NO.: RES37165 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TRADE PROMOTION AND QUALITY INFRASTRUCTURE APPROVED ON JULY 2, 2014 TO MINISTRY OF ECONOMIC DEVELOPMENT AND INVESTMENTS FINANCE, COMPETITIVENESS AND INNOVATION EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Mercy Miyang Tembon Senior Global Practice Director: Alfonso Garcia Mora Practice Manager/Manager: Marialisa Motta Task Team Leader: Yeraly Beksultan, Arsen Nazaryan, Karen Grigorian The World Bank Trade Promotion and Quality Infrastructure (P146994) ABBREVIATIONS AND ACRONYMS FFPMC Foreign Financing Project Management Center PID Project Implementation Department RA Republic of Armenia The World Bank Trade Promotion and Quality Infrastructure (P146994) 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 P146994 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 02-Jul-2014 30-Jun-2020 Organizations Borrower Responsible Agency Ministry of Transport, Communication and Information Ministry of Economic Development and Investments Technologies Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to strengthen the government's capacity to provide export promotion, investment attraction and quality management services to firms. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-83900 02-Jul-2014 06-Aug-2014 14-Jan-2015 30-Jun-2020 50.00 9.81 40.19 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Trade Promotion and Quality Infrastructure (P146994) Note to Task Teams: End of system generated content, document is editable from here. The World Bank Trade Promotion and Quality Infrastructure (P146994) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Trade Promotion and Quality Infrastructure Project for Armenia is designed to provide adequate incentives to ensure improved effectiveness of the government in delivering trade promotion and quality infrastructure services to firms. The Project is comprised of four components: (a) Component 1 Improving the Effectiveness of the Trade Promotion and Quality System is a results-based financing of reforms to improve export and investment promotion as well as quality infrastructure services (US$10 mln). These reforms are complemented by investments envisaged in Components 2 and 3. (b) Component 2 Promoting Investment and Export aims at strengthening capacity of local exporters, attract FDI and facilitate PPP activities (US$29.235 mln): (i) Subcomponent 2.1: Support services provided by Investment, Export Promotion and Industrial Development Agency (US$6.3 mln). (ii) Subcomponent 2.2: Export Promotion Grants (US$3.65 mln). (iii) Subcomponent 2.3: PPP to promote research skills and cluster development (US$19.29 mln). . (c) Component 3 Modernizing the National Quality Infrastructure finances modernization of metrology and accreditation services to strengthen competitiveness of local manufacturers (US$8.64 mln). (d) Component 4 Project Management and Monitoring & Evaluation finances project implementation support (US$2 mln). 2. The project was approved on July 2, 2014, closes on June 30, 2020 and has not been restructured to date. The project QER was conducted on January 22, 2019. It recommended restructuring with partial cancellation of loan amount. The Mid-term review was carried out in March 2019. It recorded an uptake in project implementation. The Government suggested to keep the loan amount unchanged and to proceed with a two-years extension. The authorities and the Bank team agreed to re- discuss restructuring options in July and to make a decision based on the progress in project implementation by July 2019. B. Rationale for restructuring 1. This project restructuring is in response to the request from the Ministry of Finance of the Republic of Armenia (MoF) dated April 1, 2019 (enclosed). The request is to replace the Foreign Financial Projects Management Center (“FFPMC”) as the project implementing agency under MoF responsible for fiduciary functions with the newly created Project Implementation Department (“PID”). The PID is the new name of the same implementing agency which has been subject to organizational changes for absorbing the subordinate project implementing unit (PIU) within the structure of MoF. The proposed amendment does not entail any other changes to the project. The project team re-assessed the financial management and procurement arrangements, and concluded that the capacity remains satisfactory. The financial management arrangements under the project are adequate and acceptable to the Bank, and there are no overdue audits under the project . The World Bank Trade Promotion and Quality Infrastructure (P146994) II. DESCRIPTION OF PROPOSED CHANGES Note: Formatting instructions for this document. C. Proposed changes to the Loan Agreement 1. Replace the Foreign Financial Projects Management Center (“FFPMC”) as the Project implementing agency, under the Ministry of Finance, responsible for fiduciary functions with the newly created Project Implementation Department (“PID”). 2. The proposed amendment does not entail any other changes to the Project. The Recipient/Borrower remains committed to the Project. The proposed amendment will not affect the project schedule, as the FFPMC’s functions are transferred to PID in full. 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 Institutional Arrangements ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ The World Bank Trade Promotion and Quality Infrastructure (P146994) Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) .