The World Bank
Financial Sector Development & Regionalization Project I (FSDRP I) (P121611)
REPORT NO.: RES41745
DOCUMENT OF THE WORLD BANK
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
FINANCIAL SECTOR DEVELOPMENT & REGIONALIZATION PROJECT I (FSDRP I)
APPROVED ON JANUARY 31, 2011
TO
EAC SECRETARIAT,EAST AFRICAN COMMUNITY
FINANCE, COMPETITIVENESS AND INNOVATION
AFRICA
Regional Vice President: Hafez M. H. Ghanem
Country Director: Deborah L. Wetzel
Regional Director: Asad Alam
Practice Manager/Manager: Niraj Verma
Task Team Leader(s): Yoko Doi
The World Bank
Financial Sector Development & Regionalization Project I (FSDRP I) (P121611)
I. BASIC DATA
Product Information
Project ID Financing Instrument
P121611 Investment Project Financing
Original EA Category Current EA Category
Not Required (C) Not Required (C)
Approval Date Current Closing Date
31-Jan-2011 30-Jun-2020
Organizations
Borrower Responsible Agency
EAC Secretariat,East African Community EAC Secretariat
Project Development Objective (PDO)
Original PDO
To establish the foundation for financial sector integration among EAC Partner States.
Current PDO
To establish the foundation for financial sector integration among EAC Partner States. For the purposes of this
additional financing the "foundation of financial sector integrationâ refers to formulating a regional approach to
financial inclusion, furthering legal and regulatory harmonization and building institutional capacity to manage the
increasingly integrated financial sector in the EAC.
Summary Status of Financing
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IDA-D1410 30-Sep-2016 11-Nov-2016 15-Feb-2017 30-Jun-2020 10.50 9.35 1.25
IDA-H6410 31-Jan-2011 14-Feb-2011 20-Jun-2011 30-Nov-2016 15.48 14.91 0
The World Bank
Financial Sector Development & Regionalization Project I (FSDRP I) (P121611)
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
The last implementation support review of the project was held in February 2020. As per the mission objectives, the
mission assessed the progress made since the last Implementation Support Mission(ISM), including identifying actions
to further accelerate project implementation and informing the EAC FSDRP Project Administration Team (PAT) of
critical project closure procedures such as requisite Financial Management activities and the Implementation
Completion Result (ICR) report. As reported in the Aide Memoire the mission noted that substantial progress has been
made since the previous ISM in June 2019 resulting in an overall disbursement rate of total IDA project funds of 90%.
In terms of the overall project funds granted by the WB, the disbursement ratio is 85% as of March 2020 and 92% if
the committed amount is included.
Overall while the additional financing project made significant progress and was well in line to achieve the PDO
including the completion of Capital Market Infrastructure (CMI) activity by the current closing date, COVID19 has
thrown an unexpected challenge to the implementation. Understandably EAC Partner States (PSs) governments and
EAC Secretariat took various measures to minimize the outbreak of COVID-19 in the region including the decision to
suspend all regional meetings, international/regional travels from/to EAC PSs. As a result a few but key remaining
activities including CMI have been affected. Remaining CMI activities including on-site capacity training, User
Acceptance Testing (UAT) and Go Live face serious challenges to be completed under the current situation. Given that
this is an important part of the project, and considering that so much progress had been achieved and the activity is so
close to closure, a six month extension is proposed. With this extension, project development outcomes are expected
to be fully achieved and project sustainability enhanced. Conversely not extending, would result in the project coming
very close, but faltering at the end on account of the exogenous COVID19 delays, and consequently not fully delivering
the CMI, which would adversely impact outcomes.
II. DETAILED CHANGES
LOAN CLOSING DATE(S)
Original Revised Proposed Proposed Deadline
Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal
Applications
IDA-D1410 Effective 30-Sep-2019 30-Jun-2020 31-Dec-2020 30-Apr-2021
30-Jun-2015, 29-Feb-
2016, 30-Sep-2016,
IDA-H6410 Closed 30-Mar-2014
30-Nov-2016, 31-Jan-
2019
The World Bank
Financial Sector Development & Regionalization Project I (FSDRP I) (P121611)