The World Bank
       Inclusive Development in Post-Conflict Bougainville (P125101)




                                                                                              REPORT NO.: RES29535




                                               RESTRUCTURING PAPER

                                                        ON A

                                        PROPOSED PROJECT RESTRUCTURING

                                                            OF
                        INCLUSIVE DEVELOPMENT IN POST-CONFLICT BOUGAINVILLE PROJECT
                                        APPROVED ON NOVEMBER 16, 2010
                                                            TO

                                   INDEPENDENT STATE OF PAPUA NEW GUINEA



SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE

EAST ASIA AND PACIFIC




                                Regional Vice President:     Victoria Kwakwa
                                       Country Director:     Michel Kerf
                         Senior Global Practice Director:    Ede Jorge Ijjasz-Vasquez
                            Practice Manager/Manager:        Susan S. Shen
                                     Task Team Leader:       Caroline Mary Sage, Dodi Doiwa
      The World Bank
      Inclusive Development in Post-Conflict Bougainville (P125101)



ABBREVIATIONS AND ACRONYMS

ABG                         Autonomous Bougainville Government
DCD                         Department of Community Deveopment
PMU                         Project Management Unit
SPF                         State and Peace-building Fund
        The World Bank
        Inclusive Development in Post-Conflict Bougainville (P125101)




Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.




BASIC DATA


Product Information

Project ID                                                     Financing Instrument
P125101                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Not Required (C)                                               Not Required (C)

Approval Date                                                  Current Closing Date
16-Nov-2010                                                    31-Mar-2018


Organizations

Borrower                                                       Responsible Agency
                                                               Department of Community Development, Autonomous
Independant State of Papua New Guinea
                                                               Bougainville Government



Project Development Objective (PDO)
Original PDO
The Proposed Project seeks to contribute to the rebuilding of post-conflict social capital at the community level by;
(a)strengthening the capacity of women's organizations and civil society organizations and civil society organizations
that supportthe involvement of women in development activities and which advance the priorities of women in
development to initiate and managedevelopment activities and b) increase the implementation of community
development activities which are mroe inclusive of women inplanningand decision -making processes, and which more
explicitly focus on the development priorities of women.
Current PDO
Revised project development objective: to increase the provision of community-prioritized services and income-
generating opportunities driven by women and women’s groups in Bougainville.
OPS_TABLE_PDO_CURRENTPDO
        The World Bank
        Inclusive Development in Post-Conflict Bougainville (P125101)



Summary Status of Financing
                                                                                       Net
TF                      Approval          Signing Effectiveness         Closing Commitment Disbursed Undisbursed

TF-98558            03-Mar-2011 03-Mar-2011 03-Mar-2011 31-Mar-2018                    4.92     4.18         .74

Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No




Note to Task Teams: End of system generated content, document is editable from here.
        The World Bank
        Inclusive Development in Post-Conflict Bougainville (P125101)


I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING


A. 1.   Background

        (a)      The Projects aims to contribute “to increase of the provision of community-prioritized services and income-
                 generating opportunities driven by women and women’s groups in Bougainville”. The largest component of the
                 project is a community grants program to support proposals developed and managed by local women’s groups.
                 The project has also provided a range of training and capacity building initiatives for the women’s groups and
                 other community leaders.

        (b)      In March 2014, the project underwent its first restructuring and was extended by six months to allow sufficient
                 time for project completion due to delayed in project start-up. Subsequently, all activities were completed. In
                 March 2015, as part of a level 2 restructuring that was approved by the RVP, the project was granted additional
                 funding of US$2.4m, from the SFP and extended the project by two years to March 31, 2018. The project
                 designed was updated to include a modification for the PDO and associated indicators.

        (c)      In the draft March 2018 ISR, the Implementation Progress (IP) rating remains ‘Moderately Satisfactory’ however,
                 the PDO rating was downgraded from a previous rating of ‘Moderately Satisfactory’ to ‘Moderately
                 Unsatisfactory’. While the team is confident that the project will meet its objectives if granted an extension, it is
                 felt that the current data available to verify the results is insufficient to justify a higher rating.

        (d)      It is important to note that the results recorded to date are based on subcomponents whose completion has
                 been verified through a completion certification process. There have been some delays in the verification
                 process and the actual physical completion of projects is higher than recorded at present. Further, to
                 supplement the results data from ongoing project monitoring and training surveys, the additional time will allow
                 the project team to conduct a beneficiary survey which will provide additional data to verify the results
                 achieved.

   2.   Justification and rationale for Restructuring

        (a)      The original timeline did not adequately consider the Project Management Units’ (PMU) constrained capacity to
                 draw down grant funds for additional round of grants whilst managing the ceiling cap of the draw down
                 amounts. The PMU has done a commendable job of acquitting sub-component expenditure as quickly as
                 possible, however, the timeframe remains extremely tight and there is a high risk that at least 30 percent of sub-
                 projects in the third round are unlikely to be completed within the project timeframe.

                 This restructuring would extend the Grant TF 98558 (SPF Grant) closing date by nine months from March 31,
                 2018 to December 31, 2018 to ensure that subcomponent activities can be completed prior to closing the
                 project with adequate time and quality. This extension would also provide additional time for the PMU to
                 conduct necessary closing processes including the audits and certification of sub projects.

        (b)      The clearance to proceed with level 2 restructuring notwithstanding an overdue audit, was provided by the
                 Practice Manager (GGOEP) and the Division Manager (WFACS) on January through an office memorandum. On
                 February 20, 2018 no objection to proceed with restructuring was provided by TF program manager.
        The World Bank
        Inclusive Development in Post-Conflict Bougainville (P125101)




II. DESCRIPTION OF PROPOSED CHANGES


  This proposed restructuring seeks to extend closing date of the Inclusive Development in Post-Conflict Bougainville Project,
  TF098558, P125101 from current closing date of March 31, 2018 to December 31, 2018. This will be the third extension, totaling
  2.5 years, and thus requires RVP approval. There are no changes to the Project Development Objectives (PDO) and this will be the
  final extension request.



          .


Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.



III. SUMMARY OF CHANGES

                                                                          Changed                         Not Changed
Change in Loan Closing Date(s)                                                ✔
Change in Implementing Agency                                                                                   ✔
Change in Project's Development Objectives                                                                      ✔
Change in Results Framework                                                                                     ✔
Change in Components and Cost                                                                                   ✔
Cancellations Proposed                                                                                          ✔
Additional Financing Proposed                                                                                   ✔
Reallocation between Disbursement Categories                                                                    ✔
Change in Disbursements Arrangements                                                                            ✔
Change in Disbursement Estimates                                                                                ✔
Change in Overall Risk Rating                                                                                   ✔
Change in Safeguard Policies Triggered                                                                          ✔
Change of EA category                                                                                           ✔
Change in Legal Covenants                                                                                       ✔
Change in Institutional Arrangements                                                                            ✔
Change in Financial Management                                                                                  ✔
Change in Procurement                                                                                           ✔
                                        The World Bank
                                        Inclusive Development in Post-Conflict Bougainville (P125101)



  Change in Implementation Schedule                                                                                        ✔
  Other Change(s)                                                                                                          ✔


IV. DETAILED CHANGE(S)


OPS_DETAILEDCHANGES_LOANCLOSING_TABLE




LOAN CLOSING DATE(S)

                                                                            Original               Revised Proposed     Proposed Deadline
TF                                                  Status                  Closing              Closing(s) Closing        for Withdrawal
                                                                                                                              Applications
                                                                                         30-Sep-2014, 31-
TF-98558                                            Effective          31-Mar-2014      Mar-2015, 31-Mar- 31-Dec-2018          30-Apr-2019
                                                                                                     2018




      Note to Task Teams: End of system generated content, document is editable from here.