Document of
                                 The World Bank
                                                            Report No: 55972 v1


                           RESTRUCTURING PAPER

                                      ON A

                PROPOSED PROJECT RESTRUCTURING
                              OF
           COMMUNITY-BASED URBAN DEVELOPMENT PROJECT
                             CREDIT

                                     TO THE

                       FEDERAL REPUBLIC OF NIGERIA


                                  June 23, 2010




                                      Annex 3:

                              Extension of Closing Date

                Nigeria ­ Community Based Urban Development Project

                                      P069901

                                   Cr.3654 ­ UNI



                                Restructuring Paper

1.     The Closing date for Nigeria, Community Based Urban Development Project,
Credit No. 3654 (P069901) will be extended from February 28, 2011 until August 31,
2011.
2.      The project objective to assist the Borrower to increase access to basic urban
services in selected cities continues to be achievable. 73.9 percent of total classified roads
have been constructed and rehabilitated (target 100%). 1.2 million people have access to
all season roads within a 500 meter range (target 1.5 million). 600,000 people have access
to improved water resources (target 1.2 million), and 15,000 people have access to
improved sanitation (target 20,000). The overall implementation progress has improved
from moderately satisfactory and is now rated satisfactory. The weak project management
capacity was addressed by hiring a consultant to assist all states in project management
and coordinating the implementation of all civil works contracts. The Community
Technical Committees have played an important role in strengthening the coordination
between the project implementing units at state levels, states, local governments and the
benefitting communities. That helped in improving the implementation progress. There
has also been progress in strengthening the capacity staff at State and Local Government
level in areas of project and financial management, procurement and contract
management.

3.      The CBUDP is designed to be implemented in two phases. All participating states
have successfully completed Phase 1, and have prepared the action plan for completing
the Phase 2 activities. Due to delays in signing the Phase 2 contracts, the civil work
aspect of the project is behind the schedule. The Borrower has requested an extension of
the project to August 31, 2011 in order to complete the implementation of ongoing
activities. The closing date extension would also enable the project to achieve its
development objectives.

4.     This will be the 2nd extension of the project (cumulative 26 months). The project
closing date was earlier extended for 20 months, from June 30, 2009 to February 28, 2011.