Document of
                                   The World Bank

                            FOR OFFICIAL USE ONLY
                                                                                Report No: 59956




                              RESTRUCTURING PAPER

                                          ON A

                PROPOSED PROJECT RESTRUCTURING
                              OF
    OECS PROTECTED AREAS AND ASSOCIATED LIVELIHOODS PROJECT
                            PROJECT

                   GEF TRUST FUND GRANT NUMBER TF053299
                                May 20, 2004

                            IN THE INITIAL AMOUNT OF
                                 US$ 3.7 MILLION

                                          AND

                          A RESTRUCTURED AMOUNT OF
                                US$ 3.7 MILLION

                                TO THE
               ORGANIZATION OF EASTERN CARIBBEAN STATES




                                      March 1, 2011




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.
                ABBREVIATIONS AND ACRONYMS


OECS    Organization of Eastern Caribbean States
OPAAL   OECS Protected Areas and Associated Livelihoods
ESDU    Environment and Sustainable Development Unit (of the OECS)
GEF     Global Environment Facility




                    Vice President:       Pamela Cox
                 Country Director:        Françoise Clottes
                   Sector Manager:        Karin Kemper
                Task Team Leader:         Anjali Acharya
 OECS ­ OECS PROTECTED AREAS AND ASSOCIATED LIVELIHOODS PROJECT
                             P073267
                     GEF GRANT NO. TF053299
                                     Restructuring Paper

1. Proceeds for OECS, OECS Protected Areas and Associated Livelihoods (OPAAL)
   Project, GEF Grant No. TF053299, P073267 will be reallocated as follows:

Category Expenditure                             Allocation           % of Financing
                                            Current       Revised    Current   Revise
Goods                                       306,000       406,180       8        11
Works                                       380,537       380,537      10        10
Consultants' services (including audits)   1,234,000     1,468,307     33        40
Training and workshops                      726,463       491,976      20        13
Goods, works and services required for      300,000       300,000       8         8
Associated Livelihood subprojects
Operational Costs
(a) Project Coordinator                     100,000        100,000      3          3
(b) Other Operational Costs                 653,000        553,000     18         15
Unallocated

2.      The Bank supervision mission in December 2010 noted good progress made
towards the implementation of the OPAAL project since the previous mission in
November 2009. Infrastructure works are being carried out and sustainable livelihood
sub-projects have been launched in all countries, most recently in Grenada, Saint Lucia,
and St. Kitts and Nevis. Extensive training and capacity building has been carried out,
and preliminary feedback from participants has been very positive. There has been very
good progress in awareness building activities. All pending issues relating to approvals
for infrastructure works have been resolved. There are no outstanding financial audits.

3.      The proposed reallocation is necessary to correct inadvertent misclassification of
expenditures under "training and workshops", and "other operational costs" that were
identified during the Bank's recent supervision mission. Some training activities were
incorrectly categorized under consultants' services; while some goods (such as printing
of reports in the form of hard copies and DVDs) were incorrectly categorized under
"other operational costs." Therefore, while it may appear as "cost savings" from these
two categories, the proposed reallocation simply represents a reposting of expenditures to
correct the misclassification. There will be no new or additional activities financed
through this reallocation. The total reallocation amounts to $334,487, which represents 9
% of the total grant amount ($3.7 million).