The World Bank Health Sector Support Project (P160846) REPORT NO.: RES49244 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HEALTH SECTOR SUPPORT PROJECT APPROVED ON JULY 28, 2017 TO PEOPLE'S REPUBLIC OF BANGLADESH HEALTH, NUTRITION & POPULATION SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Mercy Miyang Tembon Regional Director: Lynne D. Sherburne-Benz Practice Manager/Manager: E. Gail Richardson Task Team Leader(s): Shiyong Wang, Bushra Binte Alam The World Bank Health Sector Support Project (P160846) I. BASIC DATA Product Information Project ID Financing Instrument P160846 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 28-Jul-2017 31-Dec-2022 Organizations Borrower Responsible Agency People's Republic of Bangladesh Ministry of Health and Family Welfare Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to strengthen the health, nutrition and population (HNP) sector's core management systems and delivery of essential HNP services with a focus on selected geographical areas. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-63020 28-Jun-2018 20-Sep-2018 25-Oct-2018 31-Dec-2022 8.33 7.79 .32 IDA-D3610 28-Jun-2018 20-Sep-2018 25-Oct-2018 31-Dec-2022 41.67 38.59 2.59 IDA-61270 28-Jul-2017 28-Aug-2017 02-Oct-2017 31-Dec-2022 500.00 303.31 203.85 TF-A6941 05-Nov-2018 05-Nov-2018 05-Nov-2018 31-Dec-2022 100.91 93.56 7.35 TF-A4355 28-Jul-2017 28-Aug-2017 02-Oct-2017 31-Dec-2021 15.00 13.08 1.92 The World Bank Health Sector Support Project (P160846) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES This project paper seeks approval of the Country Director to process an extension of the closing date of the Health Sector Support Project (HSSP). HSSP is co-financed by IDA (Cr. 6127-BD, Cr. 6302-BD, Grant D361-BD), Global Financing Facility (GFF, TF0A4355) grant, and a Multi-Donor Trust Fund (MDTF, TF0A6941) grant. The closing dates of the IDA credits and grant are being extended by one year from December 31, 2022 to December 31, 2023, while the GFF grant is being extend by 21 months from December 31, 2021 to September 20, 2023. The GFF grant is largely disbursed with only 12.8% balance available, which the team expects to be disbursed during calendar year 2022. The MDTF grant will be extended once the administration agreements between IDA and the five contributing partners are amended. This is currently under process. The restructuring is being processed based on a request sent by the Economic Relations Division of the Government of Bangladesh dated November 15, 2021. Summary of project status: Overall progress towards achievement of the Project Development Objective (PDO) of HSSP is rated as Moderately Satisfactory. Out of the seven PDO indicators, three have achieved the end-of-project targets and the remaining four are on track. Eighty-two percent of planned annual targets, or Disbursement-Linked Results (DLRs) under components 1 to 3, have been reported to be achieved during the first five years since the program was started. In addition, there are 19 DLRs that are currently being verified and additional disbursements are expected. Component 4 is supporting delivery of health, nutrition and population services for the displaced Rohingya population (DRP). Four United Nations (UN) agencies are supporting implementation of this component under agreements with the government. Implementation progress of component 4 is satisfactory and 93% of the allocations (IDA Cr. 6302-BD and grant D361-BD) has been disbursed. There is no pending audit report. Proposed change and rationale for it: HSSP mobilizes resources to the government's Fourth Health, Population and Nutrition Sector Program (4th HPNSP). The closing date of the Sector Program is being extended by one-year as implementation progress was adversely impacted due to the outbreak of novel coronavirus disease (COVID-19). Consequently, HSSP closing date is being extended to allow sufficient time for the remaining DLRs to be achieved and verified to enable disbursement of project funds. Changes to the MDTF grant agreement: along with the extension of the IDA and GFF end dates the grant agreement for the MDTF will be modified to increase the total grant amount from US$100.9 million to US$120.3 million. This increase of US$19.36 million is based on planned tranches received from the MDTF partners, as documented in the administration agreements, and is allocated for the same set of DLRs as financed by the IDA credit and GFF grant (see attached table 1). This modification does not require processing an Additional Financing as the original HSSP project was approved by the World Bank Board with a financing gap of US$200 million, which this MDTF is filling. III. DETAILED CHANGES LOAN CLOSING DATE(S) The World Bank Health Sector Support Project (P160846) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-61270 Effective 31-Dec-2022 31-Dec-2023 30-Apr-2024 IDA-63020 Effective 31-Dec-2022 31-Dec-2023 30-Apr-2024 IDA-D3610 Effective 31-Dec-2022 31-Dec-2023 30-Apr-2024 TF-A4355 Effective 31-Dec-2021 30-Sep-2023 30-Jan-2024 TF-A6941 Effective 31-Dec-2022 31-Dec-2022 30-Apr-2023