Document of
               The World Bank


                                                Report No: 56805 v1




            RESTRUCTURING PAPER

                     ON A

      PROPOSED PROJECT RESTRUCTURING
                     OF
SB HEALTH SECTOR SUPPORT PROJECT (TA) PROJECT
                 GRANT H360



                   TO THE

              SOLOMON ISLANDS


                  July 7, 2010
      SOLOMON ISLANDS -- SB HEALTH SECTOR SUPPORT PROJECT (TA)

                                          P097671

                                       GRANT H360

                                   Restructuring Paper




1.    We are proposing to extend the closing date for Grant H360 in support of the
Solomon Islands Health Sector Support Project from March 31, 2011 to December 31,
2011.

2.      There has been considerable delay in project implementation and although the
grant became effective on July 14, 2008, with the exception of the purchase of a new
photocopier, no expenditure had occurred. The Ministry acknowledges the delay was
mostly due to lack of understanding of the project arrangements within the Ministry itself
and to a high turnover of senior staff in 2009.

4.     As outlined in the Aide Memoire from the April mission, good progress is now
being made as a result of assistance under the grant and Ministry staff are committed to
maximising the Bank's technical support. The initial Withdrawal Application is being
submitted and further Withdrawal Applications will follow regularly.

5.      The contract for the Financial Management Specialist, management training and
other assistance will occur throughout the calendar year 2011. Extending the grant to
December 31, 2011 will enable effective use of grant resources as outlined in the attached
revised Procurement and Training Plans.

6.     This will be the first extension of the project.




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