The World Bank
   Strengthening Public Financial Management in Rajasthan (P156869)




                                                                                   REPORT NO.: RES59829

                                    DOCUMENT OF THE WORLD BANK




                                        RESTRUCTURING PAPER
                                                 ON A
                                  PROPOSED PROJECT RESTRUCTURING

                                                     OF

                   STRENGTHENING PUBLIC FINANCIAL MANAGEMENT IN RAJASTHAN
                                      APPROVED ON MAY 1, 2018
                                                     TO

                                                 INDIA


GOVERNANCE

SOUTH ASIA




                          Regional Vice President:    Martin Raiser
                                Country Director:     Auguste Tano Kouame
                                Regional Director:    Mathew A. Verghis
                      Practice Manager/Manager:       Hisham Ahmed Waly
                             Task Team Leader(s):     Manoj Jain, Savinay Grover
           The World Bank
           Strengthening Public Financial Management in Rajasthan (P156869)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P156869                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Not Required (C)                                               Not Required (C)

Approval Date                                                  Current Closing Date
01-May-2018                                                    31-Mar-2024




Organizations

Borrower                                                       Responsible Agency
India                                                          Department of Economic Affairs (MOF)




Project Development Objective (PDO)
Original PDO
The Project Development Objective (PDO) is: "to contribute to improved budget execution, enhanced accountability,
and greater efficiency in revenue administration in Government of Rajasthan".
Summary Status of Financing (US$, Millions)


                                                                                       Net
Ln/Cr/Tf                 Approval         Signing Effectiveness         Closing Commitment Disbursed Undisbursed

IBRD-88550            01-May-2018 29-May-2018        26-Jul-2018 31-Mar-2024            21.70    19.97          1.73


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
           The World Bank
           Strengthening Public Financial Management in Rajasthan (P156869)




 The COronaVIrus Disease of 2019 (COVID-19) pandemic and the lockdowns affected implementation of certain
 Program actions between March 2020 and September 2021. Despite challenges, Government of Rajasthan (GoR)
 continues to push forward on several key reforms under the project and has achieved substantial results. While some
 of the reforms are substantially completed, some key reforms are still underway. Additional time would be required to
 consolidate the efforts already invested and undertake steps to secure the implementation. Actions taken now would
 ensure that the internalization is complete, and the State derives full benefits of the implementation.
 The actual disbursement net of advance is about 80% and of the 31 DLIs, 25 are achieved and 6 remain pending. Of
 the four Project Development Objective (PDO) indicators, one is fully achieved, two are near completion and one is
 partly completed. With only about 2 months for closure, there is a need for seeking project extension by another 12
 months following reasons other than mentioned above:
 i. Looming national elections (expected April/May 2024) will slow down the project activities.
 ii. Project’s activities had slowed down during COVID-19 which resulted in delay of about 20 months (Governance/PFM
 reforms require behavioral change
 necessitating physical mode (hands-on-training, capacity building, implementation of systems)
 iii. Reforms underway in area of Commitment control, Public Investment Management (PIM), Cash and Debt
 management, procurement, Decentralized Participative Planning and Institutional strengthening of internal audit (IA)
 function (including achieving these Disbursement Linked Indicators (DLIs) will need more time for mainstreaming and
 building sustainability. GoR has decided to transition to Integrated Financial Management System (IFMS) 3.0 which
 would require updating and thereafter incorporating the newly developed information systems in IFMS 3.0
 architecture (Microservice, Oracle). This will imply that the various systems developed under the project shall go-live
 only once necessary software modifications are made in line with IFMS 3.0 architecture.

 The proposed closing date extension meets the requirements of the World Bank Investment Project Financing (IPF)
 Directive regarding extension of closing dates, specifically: (i) the project objectives remain achievable; (ii) the
 performance of the Borrower remains satisfactory; (iii) the World Bank and the Borrower agree on actions that will be
 undertaken by the Borrower to complete project critical activities; and (iv) there are no outstanding audits and/or
 interim financial reports.


III. DETAILED CHANGES


LOAN CLOSING DATE(S)


                                        Original                Revised               Proposed       Proposed Deadline
Ln/Cr/Tf         Status                 Closing               Closing(s)                Closing         for Withdrawal
                                                                                                           Applications
IBRD-88550       Effective         31-Mar-2024                                     31-Mar-2025               31-Jul-2025