Document of
                       The World Bank


                                                     Report No: 70591 v1




                    RESTRUCTURING PAPER

                            ON A

                PROPOSED PROJECT RESTRUCTURING
                              OF
REGIONAL DISASTER VULNERABILITY REDUCTION APL1 - GRENADA AND
            ST. VINCENT AND THE GRENADINES PROJECT
                             LOAN

                         June 23, 2011


                        TO GRENADA

                            AND

               ST. VINCENT AND THE GRENADINES


                         June 15, 2012
         ABBREVIATIONS AND ACRONYMS




 Regional Vice President:        Hasan A. Tuluy
        Country Director:        Francoise Clottes
Sector Manager / Director:       Anna Wellenstein
       Task Team Leader:         Niels B. Holm-Nielsen




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 REGIONAL DISASTER VULNERABILITY REDUCTION APL1 - GRENADA
            AND ST. VINCENT AND THE GRENADINES

                             RESTRUCTURING PAPER

A. SUMMARY
Under the original Project financing agreements, IDA is the only line of financing
eligible to cover operating costs. In the Strategic Climate Funds (SCF) Loan and Grant
Agreements, operating costs were not an eligible expenditure and no financing was
allocated. The proposed restructuring aims to amend the SCF Loan and Grant Agreement
to allow the category of operating costs as an eligible expenditure under category 1.

B. PROJECT STATUS
The project was been under implementation for eight months. As indicated in the most
recent project Implementation Status Report dated May 21, 2012, project
implementation, procurement, financial management and compliance with Bank
safeguards are satisfactory. There are currently no issues that would affect the
achievement of the project development objectives.

C. PROPOSED CHANGES
The proposed change in the financing agreements is as follows:

                                                              Saint Vincent and the
                                           Grenada
                                                                   Grenadines
                                           RDVRP
                     Line of                                          RDVRP
   Category
                    Financing       Current      Proposed      Current    Proposed
                                   Financing     Financing    Financing     Finance
                                  Percentage    Percentage   Percentage Percentage

 (1) Goods,            IDA           32%             32%         50%        50%
 works, Non-
 Consulting         SCF Loan          0%             34%         0%         15%
 Services,
 Consultant’s
 Services,         SCF PPCR
 Training and                         0%             34%         0%         35%
                     Grant
 Operating Cost


1. Please note that the proposed restructuring is only to amend the SCF Loan and Grant
   Agreements to include operating costs as an eligible expenditure under category 1 and
   percentages were negotiated with the each respective government. No other changes
   are proposed to the project.

D. APPRAISAL SUMMARY

Not Applicable




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