The World Bank Cash Transfer Modernization Project (P160819) REPORT NO.: RES42633 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CASH TRANSFER MODERNIZATION PROJECT APPROVED ON JANUARY 31, 2018 TO PEOPLE'S REPUBLIC OF BANGLADESH SOCIAL PROTECTION & JOBS SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Mercy Miyang Tembon Regional Director: Lynne D. Sherburne-Benz Practice Manager/Manager: Stefano Paternostro Task Team Leader(s): Ashiq Aziz The World Bank Cash Transfer Modernization Project (P160819) ABBREVIATIONS AND ACRONYMS CERC: Contingent Emergency Response Component CEROM: Contingent Emergency Response Operations Manual COVID-19 Coronavirus Disease 2019 WHO World Health Organization The World Bank Cash Transfer Modernization Project (P160819) BASIC DATA Product Information Project ID Financing Instrument P160819 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 31-Jan-2018 30-Jun-2023 Organizations Borrower Responsible Agency People's Republic of Bangladesh Department of Social Services,Ministry of Social Welfare Project Development Objective (PDO) Original PDO The Project Development Objective is to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations by modernizing service delivery. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-61630 31-Jan-2018 28-Oct-2018 02-Dec-2018 30-Jun-2023 300.00 23.50 270.85 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Cash Transfer Modernization Project (P160819) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Cash Transfer Modernization Project aims to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations. The Project was restructured on June 10, 2020, following a request from Government of Bangladesh on June 3, 2020, to incorporate a Contingent Emergency Response Component (CERC). The proposed restructuring serves to clarify the scope of the preceding restructuring which introduced provisions to enable immediate emergency response to events which have caused, or are likely to imminently cause, major adverse economic, social and/or health impacts in Bangladesh, associated with a natural or man-made crisis or disaster. II. DESCRIPTION OF PROPOSED CHANGES 2. The CERC has been incorporated in the Project on an ex-post basis, and the period of eligibility for emergency expenditures is intended to commence from the declaration of disaster for which CERC activation is sought. Accordingly, expenditures made for emergency purposes under the Project prior to the restructuring of June 10, 2020, require special consideration. In the context of the prevailing coronavirus disease 2019 (COVID-19) crisis which has adversely impacted Bangladesh, the period of eligibility would commence from March 11, 2020, coinciding with the World Health Organization (WHO) statement that COVID-19 can be characterized as a pandemic. 3. In the event of future shocks, for which the CERC may be triggered again, expenditures may be eligible from the time relevant authorities have declared that a crisis or disaster has occurred, and the Bank has agreed with such determination. The Contingent Emergency Response Operations Manual (CEROM) would continue to be applicable in all CERC use cases and would be updated if required, as per the provisions of the Financing Agreement including all amendments till date. III. SUMMARY OF CHANGES Changed Not Changed Other Change(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ The World Bank Cash Transfer Modernization Project (P160819) Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) . Click here to enter text. Other Changes The use of the CERC for ongoing and future crises or disasters is being clarified as described in paragraphs 2 and 3 (section II. Description of Proposed Changes).