Document of
             The World Bank


                                      Report No: 68765-KG




          RESTRUCTURING PAPER

                  ON A

    PROPOSED PROJECT RESTRUCTURING

                    OF

AGRIBUSINESS & MARKETING PROJECT (P049724)

              CREDIT 4015-KG
              PHRD TF053554


            DECEMBER 14, 2004

                 TO THE

            KYRGYZ REPUBLIC


               MAY 26, 2012
                  ABBREVIATIONS AND ACRONYMS

FTTC   Food Technology Training Center
KSTU   Kyrgyz State Technological University
PHRD   Policy and Human Resources Development Grant
SDR    Special Drawing Rights
TF     Trust Fund




          Regional Vice President:        Philippe Le Houreou
                 Country Director:        Saroj Kumar Jha
         Sector Manager / Director:       Dina Umali-Deininger
                Task Team Leader:         Sandra Broka

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                                       ANNEX 3:
                                Extension of Closing Date


         KYRGYZ REPUBLIC — AGRIBUSINESS & MARKETING PROJECT
                               P049724
                       CREDIT 4015-KG; TF053554

                                   Restructuring Paper


1.      The closing date for Kyrgyz Republic, Agribusiness and Marketing Project
(Credit 4015-KG, TF053554; P049724), both in respect of the IDA financing and PHRD-
provided financing, is proposed to be extended from June 30, 2012 until November 30,
2012.

2.      The Kyrgyz Republic Agribusiness and Marketing Project, financed by an IDA
Credit (US$8.1 million) in combination with a PHRD Co-financing Grant from the
Government of Japan (US$4.75 million), was approved on December 14, 2004 and
became effective on May 02, 2005. Of the IDA Credit, 82.6% have been disbursed to
date, and 96.5% of the PHRD Grant. The Project works directly with private enterprises
and producer and other commercial organizations to improve the competitiveness of
Kyrgyz products. Overall, the project continues to achieve good results, and all activities,
except those related to the establishment of the Food Technology Training Center
(FTTC), which is set up at the Kyrgyz State Technological University (KSTU), will be
completed as scheduled, on June 30, 2012.

3.      The proposed extension is necessary to finalize the establishment of the FTTC. A
detailed action plan covering all aspects of the FTTC establishment (including
completion of refurbishment works, equipment procurement, establishment of a
supervisory board, hiring of the director and staff, and staff training) has been discussed
and agreed with the counterparts. The main reasons for this extension have been delays
experienced at the FTTC design stage and the procurement procedures for hiring of the
construction company. The actual construction works are progressing well and on time.
Establishment of the FTTC will improve the capacity and knowledge of the country’s
food technologists to enable the agribusiness sector to meet the increasing consumer
demand for high quality and safe food products. The FTTC is considered to be very
important for upgrading the food processing sector in the country.

4.     The request for the extension of the closing date to December 31, 2012 dated
March 27, 2012 was received from the government on April 2, 2012. However, the team
has assessed that all activities should be completed by November 30, 2012.

5.     This will be the third project restructuring and the third extension of the project.
The total period of extension is 1 year and 11 months.




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