The World Bank Public Finance Management Modernization Project 2 (P150381) REPORT NO.: RES31462 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT 2 APPROVED ON JUNE 1, 2015 TO REPUBLIC OF TAJIKISTAN GOVERNANCE EUROPE AND CENTRAL ASIA Regional Vice President: Anna Bjerde Country Director: Lilia Burunciuc Regional Director: Lalita Moorty Practice Manager/Manager: Daniel J. Boyce Task Team Leader(s): Hassan Aliev The World Bank Public Finance Management Modernization Project 2 (P150381) ABBREVIATIONS AND ACRONYMS AA Administrative Arrangement DfID Department for International Development IDA International Development Association The World Bank Public Finance Management Modernization Project 2 (P150381) BASIC DATA Product Information Project ID Financing Instrument P150381 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 01-Jun-2015 30-Jun-2021 Organizations Borrower Responsible Agency Republic of Tajikistan Ministry of Finance Project Development Objective (PDO) Original PDO The development objective of the project is to improve effectiveness, control and accountability of public expenditure of the Republic of Tajikistan. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-56310 01-Jun-2015 17-Feb-2016 10-May-2016 30-Jun-2021 5.50 0 5.84 IDA-D0550 01-Jun-2015 17-Feb-2016 10-May-2016 30-Jun-2021 4.50 3.58 .86 TF-A1735 17-Feb-2016 17-Feb-2016 10-May-2016 30-Jun-2021 9.77 4.32 5.45 The World Bank Public Finance Management Modernization Project 2 (P150381) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING Project Status 1. The Public Finance Management Modernization Project 2 (P150381) was approved on June 1, 2015 by the International Development Association (IDA) in the amount of SDR 4 million credit (IDA Credit No. 5631-TJ) and SDR 3.2 million grant (IDA Grant No. D055-TJ). The project is co-financed by a trust fund grant from the United Kingdom’s Department for International Development (DfID).1 The Grant Agreement , Grant No. TF0A1735, dated February 17, 2016, was signed between the Republic of Tajikistan and IDA in amount of USD 9.77 million. The project became effective on May 10, 2016 with the closing date of June 30, 2021. 2. A mid-term review was conducted on September 2019, which rated the project progress towards achievement of project development objective and overall implementation progress moderately satisfactory. 3. The project has disbursed USD 3.6 million or 35% of the total combined financing amount from IDA and USD 4.32 million or 44% of the financing amount from DfID at the end of April 2020. Rationale For Restructuring 4. This restructuring paper seeks to amend the Grant Agreement to reduce the total grant amount from USD 9.77 million to USD 9,664,800 under TF0A1735. The amendment is required to reflect DfID’s decision to reduce its contribution to the trust fund by GBP 200,000.00.2 II. DESCRIPTION OF PROPOSED CHANGES 5. The proposed change is to cancel the grant amount of USD 105,200 from the current total grant amount of USD 9.77 million under TF0A1735, to reflect the contribution reduction from the donor. The revised grant amount will be USD 9,664,800. 1 TF072484 Administrative Arrangement (AA) signed by the DfID and IDA in October 2015 for a total amount of GBP 8 million. 2 Amendment No. 2 to the AA dated March 25, 2020. The World Bank Public Finance Management Modernization Project 2 (P150381) III. SUMMARY OF CHANGES Changed Not Changed Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE The World Bank Public Finance Management Modernization Project 2 (P150381) CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation IDA-56310- Effectiv XDR 4,000,000.00 0.00 4,000,000.00 001 e IDA-D0550- Disburs XDR 3,200,000.00 0.00 3,200,000.00 001 ing REDUCTION IN THE TF-A1735- Disburs USD 9,770,000.00 105,200.00 02-Apr-2020 9,664,800.00 GRANT 001 ing AMOUNT BY DONOR OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed TF-A1735-001 | Currency: USD iLap Category Sequence No: (1) Current Expenditure Category: G, Non-CS, CS, TR 9,770,000.00 3,805,777.37 9,664,800.00 100.00 100.00 Total 9,770,000.00 3,805,777.37 9,664,800.00 . Click here to enter text.