The World Bank DRC Human Development Systems Strengthening (P145965) REPORT NO.: RES35417 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DRC HUMAN DEVELOPMENT SYSTEMS STRENGTHENING APPROVED ON APRIL 23, 2014 TO DEMOCRATIC REPUBLIC OF CONGO,DRC MINISTRY OF FINANCE HEALTH, NUTRITION & POPULATION AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Jean-Christophe Carret Senior Global Practice Director: Timothy Grant Evans Practice Manager/Manager: Trina S. Haque Task Team Leader: Enias Baganizi, Lombe Kasonde The World Bank DRC Human Development Systems Strengthening (P145965) I. BASIC DATA Product Information Project ID Financing Instrument P145965 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 23-Apr-2014 31-Dec-2020 Organizations Borrower Responsible Agency Democratic Republic of Congo,DRC Ministry of Finance CFEF-Ministry of Finance Project Development Objective (PDO) Original PDO The proposed project development objective is to strengthen select management systems for education and health services in targetedgeographic areas in the Recipient's territory. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1110 29-Mar-2016 13-May-2016 17-Nov-2017 31-Dec-2020 30.00 10.93 19.35 IDA-H9360 23-Apr-2014 19-Jun-2014 20-Jan-2015 31-Aug-2020 15.00 11.18 2.36 TF-A2421 05-Apr-2016 13-May-2016 17-Nov-2017 30-Jun-2019 1.08 .11 .97 TF-A1960 25-Feb-2016 13-May-2016 17-Nov-2017 31-Dec-2020 10.00 1.76 8.24 The World Bank DRC Human Development Systems Strengthening (P145965) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The purpose of this restructuring is to extend the closing date of the project by 20 months to close on August 31, 2020. The reason for that is to allow adequate time to complete critical activities that will contribute towards achieving the project development objectives including developing a national CRVS system. The Bank received the request for extending the closing date of the project on November 20, 2018. Over the last six months, the project performance has shown improvement as noted by the upgrading of the project rating at PDO and IP from U to MU and improving the project likelihood to achieve its objectives if the request for extending the closing date is granted. For example at PDO level the percentage of educational sub-provinces (33.77%) and the health zones (33.06%) in targeted areas with annual plans and reports based on improved SIGE data available on the internet increased by one third from baseline for the two indictors; At IP level, more than three quarters (71.13%) of HMIS reports were submitted in a timely fashion in health zones supported by the PHRD grant. Further, a large SDI contract was signed and activities were launched. This will have a positive impact in showing improved results by the next ISR and probably to another one level upgrading of the project rating at IP level. The extension of the closing date, if granted, will allow the project to complete activities related to SDI and CRVS, as well as other analytical studies that will contribute to carrying out important reforms in service delivery in the country beyond the health, education, and social protection sectors; for example, in the banking system as a result of an identification system. (For the banking system, a note was prepared under the project on the role of identity in development as background. It was included in the SCD and can form the basis for a US$150m project down the road if the CR/ID reform process reaches a satisfactory conclusion. The economic returns will be high—DRC is spending US$1b now for the various elections of which a large chunk is for biometric registration that is not done right. Spending US$150m to save US$350-400m every five years is a huge rate of return. This is to say nothing of the additional benefits in terms of delivery of services—eg, health, social safety nets—universally or in a targeted way.) Further, following the project MTR, the project remains relevant, particularly important with the recent events occurring within the sector. For example, the lag in identifying the 10th Ebola outbreak in health was attributed to, the failure of the local-level health information system. The other health sector projects such as PDSS are actively engaged in the response – and this TA level project leverages these projects to help support the underlying systems building that can improve performance across the board. Strengthening the health information system is also being done in the context of the recent sector reforms towards digitalization. It must also be noted that in addition to informing leveraging the work on country systems, project activities will lay a solid foundation for the setting-up of a human capital development project in the country. They also feed into operations currently under preparation: the regional ECARDS project for example will benefit from the feasibility studies conducted under the pharmaceutical regulation sub-component, as it proposes to improve drug quality testing through the construction of a drug quality control laboratory. The disbursement ratio is at 68% for the original financing (IDA-H9360) with all funds committed, and at 23% when including the Additional Financing (AF) which only became effective less than a year ago, on 17 November 2017. For The World Bank DRC Human Development Systems Strengthening (P145965) the rest of FY19 (Q2, Q3, and Q4), the team is projecting the disbursement of an additional $4.2 million, $3.9 million, and $3.4 million, respectively, for an additional total of $11.5 million by the end of FY19. To ensure the successful implementation of the project, the Bank team will intensify supervision of the implementation to make sure that this momentum is not lost in order to maximize the achievement of the PDO. There are no overdue audits for the project. At the time the Additional Financing was processed, the project team did not consider extending the closi ng date of the parent project. For this reason, a level 2 restructuring is needed in order for the disbursement team to extend the closing date of the original loan for 20 months. II. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D1110 Effective 31-Dec-2020 IDA-H9360 Effective 31-Dec-2018 31-Aug-2020 31-Aug-2020 31-Dec-2020 TF-A1960 Effective 31-Dec-2020 TF-A2421 Effective 30-Jun-2019 31-Dec-2020 30-Apr-2021