The World Bank Burkina-Faso eGovernment Project (P155645) REPORT NO.: RES53833 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF eBurkina Project APPROVED ON JANUARY 18, 2017 TO BURKINA FASO DIGITAL DEVELOPMENT WESTERN AND CENTRAL AFRICA Regional Vice President: Ousmane Diagana Country Director: Clara Ana Coutinho De Sousa Regional Director: Christine Zhenwei Qiang Practice Manager/Manager: Michel Rogy Task Team Leader(s): Tounwende Alain Sawadogo The World Bank Burkina-Faso eGovernment Project (P155645) ABBREVIATIONS AND ACRONYMS EA Environmental Assessment ANPTIC National Agency for Promotion of ICT CD Country Director CMU Country Management Unit COVID-19 Corona Virus ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework EUR Euro FM Financial Management GoBF Government of Burkina Faso ICT Information and Communication Technology IDA International Development Association IT Information Technology M&E Monitoring and Evaluation Mbit Megabit Mbps Megabit per second MS Moderately Satisfactory OP Operational Policy PAD Project Appraisal Document PDO Project Development Objectives PIU Project Implementation Unit PM Project Management RAP Resettlement Action Plan RF Results Framework RP Restructuring Paper RPF Resettlement Policy Framework S Satisfactory SORT Systematic Operations Risk-Rating Tool ToC Theory of Change US$ United States Dollars WB World Bank The World Bank Burkina-Faso eGovernment Project (P155645) BASIC DATA Product Information Project ID Financing Instrument P155645 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 18-Jan-2017 30-Dec-2022 Organizations Borrower Responsible Agency Burkina Faso,Ministry of Economy, Finance and Development Project Development Objective (PDO) Original PDO Proposed Development Objective(s) The proposed Project Development Objective (PDO) is to improve capacity and use of ICTs by the public administrations and agencies for (i) the provision of information and public e-services and (ii) to foster entrepreneurship inthe digital economy, with a specific focus on agriculture and rural areas. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59430 18-Jan-2017 03-Mar-2017 29-Jun-2017 30-Dec-2022 20.00 13.27 6.86 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Burkina-Faso eGovernment Project (P155645) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Summary 1. Following an official request from the Government of Burkina Faso (GoBF) to the World Bank (WB), dated December 2, 2022, this Restructuring Paper seeks a partial cancelation of IDA credit No. 5943-BF, granted to Burkina Faso in support of the eBurkina Project (P155645). The proposed canceled amount of 2,754,216.84 Euros equivalent of US$2,902,256 was primarily allocated to the purchase of Information Technology (IT) equipment for universities and training centers under Component 3 and will not be financed under the Project. The partial cancelation results from delays in project implementation caused by country’s ongoing political situation, triggering of the WB’s OP/BP 7.30 on “Dealings with De Facto Governments”, and the pause on all pending payments and processing of withdrawal applications. 2. The proposed partial cancelation constitutes the second Level II – CD-approved – restructuring since Project approval. The first restructuring (approved on June 23rd, 2022) extended the Project’s Closing Date by six month (from June 30 to December 30, 2022) and adjusted/updated the Results Framework to reflect the greater number of beneficiaries expected to be served under Component 2. Project Status 3. Upon Project approval on January 18, 2017, Burkina Faso was granted an IDA credit (IDA-5943-BF) of EUR 18.8 million (US$20 million equivalent), which Financing Agreement was declared effective on June 29, 2017. The Project is currently set to close on December 30, 2022. 4. The total disbursement rate as of December 1, 2022, stands at 65.9 percent (US$13.27 million equivalent). This low rate reflects the important delays faced throughout project implementation, including: (i) challenging country political situation –- two coups in 2022, one in January and another one in September – which led to the triggering of OP/BP 7.30; and (ii) recent international crises (COVID-19 pandemic, Ukraine conflict, high prices of goods and disrupted supply chains), which resulted in logistical difficulties for the Recipient and vendors to procure and deliver in Burkina Faso. 5. Following the June 2022 restructuring, the pace of project implementation picked up and almost all procurements and contracts under execution are now expected to be completed by the December 30, 2022 Closing Date. The WB’s Project team and the Recipient’s Project team continue to hold weekly meetings to closely monitor and follow up on an agreed action plan. Thanks to the newly appointed Director General and to strengthened fiduciary capabilities, the Project Implementation Unit’s (PIU) overall capacity increased substantially. As a result, the length of time taken by procurement processes could be significantly reduced and notable progress in project management and implementation have been observed. The World Bank Burkina-Faso eGovernment Project (P155645) 6. However, despite such progress, one specific activity will not be completed before closing: the purchase of IT equipment for universities and training centers under Component 3. This is due to (i) the selected vendor having withdrawn from this contract because of price constraints; and (ii) the international crisis (COVID-19 pandemic, Ukraine conflict, high prices of goods and disrupted supply chains. An alternative to award this contract directly to UNOPS1 has been explored, but in the current context the delivery and installation of the equipment would still take much longer than expected and not be completed before well past the December 30, 2022 Project Closing Date. 7. Despite the implementation challenges, current progress toward achieving the project development objectives (PDO) is deemed Satisfactory, while implementation progress is considered Moderately Satisfactory. 8. The PDO remains achievable by project closing and all the original end targets associated to the PDO- level indicators have been exceeded to this day. The same trend is observed for all Intermediate indicators. Details are provided in Table 1 below. Table 1. Progress toward meeting the Project Development Objectives PDO-level Indicator Baseline Actual Current End Target (02-Jan-2017) (30-May-2022) (30-Dec-2022) People using the Digital Platform for e-Service Delivery 0 8,002 8,0002 (Number, Custom) e-Services deployed through the Digital Platform for e- 0 7 5 Service Delivery, including number of e-Services targeting rural areas (Number, Custom) Public authorities and external producers providing 31 106 100 information as open data on the portal data.gov.bf (Number, Custom) 9. There is currently no overdue audit or procurement and safeguards/ESF issues Rationale for restructuring 10. Due to implementation delays, the unfruitful outcome of the contract award pertaining to the purchase of IT equipment for universities and training centers under Component 3, and the lack of viable alternative to ensure timely and proper completion of this activity before project closing, the GoBF has requested a partial cancelation amounting to 2 773 382,13 Euros equivalent of US$2,902,256. This amount corresponds to the IDA credit financing that was allocated to this purchase and that is projected to remain unused by Project closing (see details in Table 2 below). The table 2 below shows the Project disbursement forecast for December and the grace period. Table 2: Project disbursement forecast (US$ equivalent) COMPONENT Disbursed + Projected additional = Estimated disbursement disbursements by project closing 1 United Nations Office for Project Services (UNOPS) 2 The initial end-target was 5,000, but the June 2022 restructuring increased it to 8,000. This new target has been exceeded. The World Bank Burkina-Faso eGovernment Project (P155645) Component 1 2,128,011 19,873 2,147,885 Component 2 7,089,616 1,274,520 8,364,136 Component 3 2,426,710 1,647,938 4,074,647 Component 4 2,419,427 91,649 2,510,353 Total 14,063,764 3,033,980 17,097,744 Balance 2,902,256 II. DESCRIPTION OF PROPOSED CHANGES 11. The proposed change includes the partial cancellation of an amount equivalent to US$2,902,256. 12. The proposed restructuring does not include any other changes. The PDO, the Results Framework, the project components and activities, the implementation arrangements, and allocations across categories of expenditures (other than the above-mentioned cancellation) all remain unchanged. The Project’s safeguards category ("C") also remains unchanged, and the restructuring will not trigger any new safeguards policies. 13. Overall risk rating: Both the Project’s Overall risk to achieving the PDO and the Political and Governance risk have increased, in light of the volatility of the country’s political context. In that context, they are now considered substantial. However, none of the OP/BP 7.30 assessment, current country insecurity, and the political situation would impact the implementation of the remaining activities at this late stage. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ The World Bank Burkina-Faso eGovernment Project (P155645) PBCs ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IDA-59430- Disburs EUR 18,800,000.00 2,754,216.84 02-Dec-2022 16,045,783.16 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES The World Bank Burkina-Faso eGovernment Project (P155645) Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-59430-001 | Currency: EUR iLap Category Sequence No: 1 Current Expenditure Category: GD,Minor WK,NCS,CS,TR & OC 18,800,000.00 10,823,335.88 16,045,783.16 100.00 100.00 Total 18,800,000.00 10,823,335.88 16,045,783.16 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 3,000,000.00 0.00 2018 5,000,000.04 0.00 2019 6,000,000.00 0.00 2020 3,999,999.96 0.00 2021 1,500,000.00 0.00 2022 500,000.04 0.00 2023 0.00 0.00 . The World Bank Burkina-Faso eGovernment Project (P155645) . Results framework COUNTRY: Burkina Faso Burkina-Faso eGovernment Project Project Development Objectives(s) Proposed Development Objective(s) The proposed Project Development Objective (PDO) is to improve capacity and use of ICTs by the public administrations and agencies for (i) the provision of information and public e-services and (ii) to foster entrepreneurship inthe digital economy, with a specific focus on agriculture and rural areas. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 To improve capacity and use of ICTs by the public administrations and provision of e-services People using the Digital Platform for e-Service 0.00 0.00 1,000.00 2,000.00 3,000.00 5,000.00 8,000.00 Delivery (Number) Action: This indicator has been Revised e-Services deployed through the Digital Platform for e-Service Delivery, 0.00 0.00 2.00 3.00 4.00 5.00 5.00 including number of e- Services targeting rural areas (Number) Action: This indicator has been Revised The World Bank Burkina-Faso eGovernment Project (P155645) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Public authorities and external producers providing information as 31.00 50.00 60.00 70.00 80.00 90.00 100.00 open data on the portal data.gov.bf (Number) Action: This indicator has been Revised To foster entrepreneurship in the digital economy Startups, SMEs and Civic tech incubated (number) (including percent focusing 0.00 0.00 0.00 10.00 20.00 30.00 30.00 on agriculture or rural areas) (Number) Action: This indicator has been Revised Percentage of ICT projects incubated and 0.00 0.00 0.00 50.00 40.00 33.00 33.00 targeting rural areas (Percentage) People trained under the project (including 0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 5,000.00 percentage of women) (Number) Action: This indicator has been Revised The World Bank Burkina-Faso eGovernment Project (P155645) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 Percentage of women trained under the 0.00 25.00 33.00 33.00 40.00 40.00 40.00 project (Percentage) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 (1) Enabling Environment for e-Government, including Policy, Legal and Regulatory Frameworks Publication of a national e- Government strategy No No Yes Yes Yes Yes Yes (Yes/No) Publication of an e- Government technical No No Yes Yes Yes Yes Yes framework (Yes/No) (2) Data Management and Digital Platform for e-Service Delivery Unique users of GIS e- Service for rural development and food 0.00 0.00 1,000.00 2,000.00 3,000.00 4,000.00 4,000.00 security management (Number) Unique users of the e- 0.00 0.00 10,000.00 20,000.00 30,000.00 40,000.00 40,000.00 Service for agricultural The World Bank Burkina-Faso eGovernment Project (P155645) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 markets information (Number) Number of municipalities having their performance 0.00 140.00 200.00 250.00 300.00 350.00 350.00 indicators available as open data (Number) (3) Foster Local Skills and Entrepreneurship in the Digital Economy Incubator open to the No No No Yes Yes Yes Yes public (Yes/No) Number of visitors at the incubator including women 0.00 0.00 0.00 1,000.00 3,000.00 5,000.00 5,000.00 (Number) Percentage of women visiting the incubator 0.00 0.00 0.00 20.00 30.00 40.00 40.00 (Percentage) (4) Project Management, Monitoring and Evaluation. Citizens consulted for the design and delivery of e- 0.00 200.00 400.00 600.00 800.00 1,000.00 1,000.00 Services (citizen engagement) (Number) IO Table SPACE . The World Bank Burkina-Faso eGovernment Project (P155645) Click here to enter text.