The World Bank Strengthening of External Debt Management in EAD (P164033) REPORT NO.: RES37698 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF STRENGTHENING OF EXTERNAL DEBT MANAGEMENT IN EAD APPROVED ON JANUARY 17, 2018 TO ISLAMIC REPUBLIC OF PAKISTAN MACROECONOMICS, TRADE AND INVESTMENT SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Patchamuthu Illangovan Senior Global Practice Director: Marcello De Moura Estevao Filho Practice Manager/Manager: Maria Manuela Do Rosario Francisco Task Team Leader: Adnan Ashraf Ghumman The World Bank Strengthening of External Debt Management in EAD (P164033) ABBREVIATIONS AND ACRONYMS CD Country Director DFID Department for International Development (United Kingdom) EA Environmental Assessment EAD Economic Affairs Division FY Fiscal Year ID Identity (Project ID) NO. Number MU Moderately Unsatisfactory MS Moderately Satisfactory PDO Project Development Objective PSDP Public Sector Development Program TAGR Trust Fund for Accelerating Growth and Reform TF Trust Fund USD United States Dollar US$ United States Dollar The World Bank Strengthening of External Debt Management in EAD (P164033) 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 P164033 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 17-Jan-2018 30-Jun-2019 Organizations Borrower Responsible Agency Islamic Republic of Pakistan Economic Affairs Division Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Strengthening of External Debt Management in EAD (P164033) Project Development Objective (PDO) Original PDO Strengthening the functional capacity of the EAD to ensure sustainability of the public and publicly guaranteed (PPG) external debt data statistics and reporting. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A6592 26-Jan-2018 30-Jan-2018 30-Jan-2018 30-Jun-2019 .60 .31 .29 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. The US$0.6 million Strengthening of External Debt Management in EAD Project (P164033) was approved by the World Bank on January 17, 2018 and the Grant Agreement (GA) was signed on January 30, 2018, also the project effectiveness date. This project revolves around upgrading the current version of DMFAS by the United Nations Conference on Trade and Development (UNCTAD) and associated capacity building. B. The project faced considerable delays in implementation. Despite having the effectiveness date of the project in January 2018, EAD was not able secure a supplementary grant in FY18 under the federal PSDP to initiate the project. However, the project was allocated the total amount in FY19 in the federal budget, allowing EAD to start implementing the project from July 2018. There were also several internal changes within EAD that contributed to the slow implementation. Changes in the top financial management of the overall government also caused uncertainty which delayed implementation. C. Despite the delays, the project has a champion in the Joint Secretary of the Debt Management Wing in EAD who has committed to successfully execute the project. The DMFAS upgrade has already been undertaken, and the associated capacity building activities and development of a data center are underway. While there were delays due to the above-mentioned factors, the project is mostly on-track to complete UNCTAD’s work plan, and can deliver its expected results, given a short extension in its completion date The World Bank Strengthening of External Debt Management in EAD (P164033) II. DESCRIPTION OF PROPOSED CHANGES A. Change in Loan Closing Date(s): 4. The proposed restructuring responds to a request by the Economic Affairs Division (EAD) of the Government of Pakistan to restructure the Project through an extension of the project closing date by two months from June 30, 2019 to August 31, 2019 (Letter No. 5(14)WB-IV/17 of 31st May, 2019). Consistent with this request, the restructuring proposes an extension of the project closing date until August 31, 2019. 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 Loan Closing Date(s) ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ The World Bank Strengthening of External Debt Management in EAD (P164033) Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A6592 Effective 30-Jun-2019 31-Aug-2019 30-Oct-2019 Note to Task Teams: End of system generated content, document is editable from here.