Document of
                                          The World Bank

                                    FOR OFFICIAL USE ONLY

                                                                                               Report No: 75152 v1




                                    RESTRUCTURING PAPER

                                                  ON A

                    PROPOSED PROJECT RESTRUCTURING
                                   OF
            PAKISTAN FLOOD EMERGENCY CASH TRANSFER PROJECT
                                CREDIT
                              March 16, 2011


                                                TO THE

                              ISLAMIC REPUBLIC OF PAKISTAN


                                            January 9, 2013




HUMAN DEVELOPMENT UNIT
SOUTH ASIA REGION


This document has a restricted distribution and may be used by recipients only in the performance of their
official duties. Its contents may not otherwise be disclosed without World Bank authorization.
                           Reallocation of Funds
______________________________________________________________________

              PAKISTAN – FLOOD EMERGENCY CASH TRANSFER PROJECT
                                    P125105
                         IDA CREDIT 4910-PK AND 4911-PK
                                        Restructuring Paper

1.      Pursuant to a request from the authorized representative of the Islamic Republic
of Pakistan (‘Recipient’) dated December 24, 2012, this Restructuring Paper seeks a
request for a reallocation of funds in the amount of 3,610,000 SDR1 from Category (2) to
Category (3) for the subject IDA Credit, the Pakistan Flood Emergency Cash Transfer
Project (Credit No. 4910-PK; P125105) as follows:

                                                                                              Percentage
                                                                                                   of
                                       Amount of Portion                                     Expenditures
                                                                 Amount of Portion B
                                          A Allocated                                            to be
       Category of Expenditure                                   Allocated Expressed in
                                       Expressed in SDR                                        Financed
                                                                  SDR (IDA 4910-PK)
                                        (IDA-4911-PK)
                                                                                              (inclusive of
                                                                                                 taxes)
                                             Current             Current        Proposed
    1 Cash grants to be paid to                                                                   80% - no
                                            41,330,000               0              0
    flood affected households                                                                      change
    2 Cash grants to be paid to                                                                   80% - no
                                            10,170,000         21, 620,000     18,010,000
    flood affected households                                                                      change
    3 Goods, Non-consultant’
    services, Consultant Services,
                                                                                                  100% - no
    Training and /Workshops and                  0              6,380,000      9,990,000
                                                                                                   change
    Incremental Operational Costs
    for the Project
    Totals                                  51,500,000          28,000,000     28,000,000



2.      Progress towards the Project Development Objective is satisfactory while
Implementation Progress is moderately satisfactory. As of November 28th, 2012,
1,005,754 eligible beneficiaries had been identified, of which 933,372 beneficiaries have
been enrolled and paid both tranches of financing. However, implementation progress is
rated as moderately satisfactory due to the slow resolution of grievances, which is the
result of a lag in making available the additional TA financing to the National Database
Registration Authority (NADRA), the implementation agency for the TA component.

3.     The proposed reallocation is necessary to allow NADRA to support
continued field operations required for the resolution of grievances and completion
of project activities. The team supports this reallocation. As per paragraph 8 of the
Minutes of Negotiations, “in case of a shortfall in the funds required by NADRA to

1
  The letter of request, dated December 24th 2012, specified 5.569 million USD equivalent to be
reallocated. As of that date, 5,569,000 USD = 3,610,000.00 SDR.
                                                     2
carryout component 2 of the Project, the Recipient will exchange communication with
the World Bank to either re-allocate funds from Categories 1 or 2 to Category 3, or
secure the requisite funds from its own resources.� In a letter dated December 24th, 2012,
the Government of Pakistan requested such a reallocation. As per the MOU with
Development Partners, the financing gap for cash grants to flood affected households is
to be covered by the Government of Pakistan.




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