Document of
                                     The World Bank

                             FOR OFFICIAL USE ONLY

                                                                           Report No: 53562-ME
                                                                                         vol 1

                                  RESTRUCTURING PAPER

                                             ON A

                          PROPOSED PROJECT RESTRUCTURING

                                OF
   PENSIONS SYSTEM ADMINISTRATION INVESTMENT PROJECT MONTENEGRO
                              PROJECT

                                            CREDIT

                                       MARCH 4, 2010

                           IN THE AMOUNT OF SDR3.5 MILLION
                             (US$5.38 MILLION EQUIVALENT)



                                            TO THE

                               REPUBLIC OF MONTENEGRO


Human Development Sector Unit
South East Europe Country Unit
Europe and Central 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.
ABBREVIATIONS AND ACRONYMS

     CURRENCY EQUIVALENTS

(Exchange Rate Effective February 24, 2010


     Currency Unit =     New Serbian Dinar
            Euro1 =      US$1.37
             US$1 =      Euro0.73

             FISCAL YEAR
        January 1  ­  December 31




   Vice President:       Philippe H. Le Houerou
 Country Director:       Jane Armitage
 Country Manager         Jan-Peter Olters
  Sector Manager:        Kathy Lindert
Task Team Leader:        Rajna Cemerska-Krtova




                     2
                                               MONTENEGRO
    PENSIONS SYSTEM ADMINISTRATION INVESTMENT PROJECT MONTENEGRO

                                                  CONTENTS

                                                                                                                 Page
ANNEX 1: Proposed Changes ............................................................................................ 4
ANNEX 3: Updated Critical Risk Framework ................................................................... 7
ANNEX 4: Results Framework and Monitoring................................................................. 8




                                                           3
                                     ANNEX 1:
                                  Proposed Changes



a. What are the proposed changes, as applicable, in the project's development
   objectives, outcomes, design, and/or scope?
                                           N/A

b. What are the other complementary changes, as applicable:

Institutional arrangements                                 ___Yes    No
If, yes, please explain:


Financing mechanism/Conduit                                ___Yes    No
If, yes, please explain:


Outputs                                                    ___Yes    No
If, yes, please explain:


Project Costs and financing plan (include summary tables) ___Yes    No
If, yes, please explain:


Financial management                                       ___Yes    No
If, yes, please explain:


Disbursement arrangements                                  ___Yes    No
If, yes, please explain:


Procurement                                                ___Yes    No
If, yes, please explain:


Closing date                                               Yes ___No
If, yes, please explain:

The Borrower is seeking only a six months extension of the Credit Closing Date to be
able to successfully install, test and complete the software solutions for the Unified
registration, reporting and personal income tax and social contributions collection
(Project Development Objective a)), and bring to closure the implementation of several

                                           4
high priority activities related to the accomplishment of the Project Development
Objective b) and Project Development Objective c). If this request is approved, the new
closing date would be September 30, 2010.

Implementation schedule                                    Yes ___No
If, yes, please explain:

The Borrower has prepared a revised implementation plan reflecting the additional six
month implementation period, should the proposed extension be granted. Likewise, the
Borrower has prepared a revised procurement plan supporting the extension request.




                                           5
                                     ANNEX 2:
                              Appraisal Summary Update
                                   Not Applicable

Do the proposed changes result in significant change of impact (from original Appraisal
Summary of the PAD) in the following:

Economic and financial analysis                    ___Yes     No
If, yes, please explain:

Technical                                           ___Yes     No
If, yes, please explain:


Social                                              ___Yes     No
If, yes, please explain:


Environment                                        ___Yes     No
If, yes, please explain:


Exceptions to Bank Policy                          ___Yes     No
If, yes, please explain:




                                           6
          ANNEX 3:
Updated Critical Risk Framework
         Not Applicable




               7
                                                       ANNEX 4:
                                           Results Framework and Monitoring


               MONTENEGRO: PENSIONS SYSTEM ADMINISTRATION INVESTMENT PROJECT MONTENEGRO
                                          Results Framework

                  PDO                               Project Outcome Indicators       Use of Project Outcome Information
Current            Proposed               Current              Proposed          Current             Proposed




          Intermediate Outcomes                Intermediate Outcome Indicators    Use of Intermediate Outcome Monitoring
Current            Proposed              Current               Proposed          Current             Proposed




                          Proposed restructuring will not affect the existing results matrix
9