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Report No: RES00426
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
Financial Inclusion Support Project in Burkina Faso
APPROVED ON 30-Apr-2019
TO
Ministry of Economy, Finance and Development
Finance, Competitiveness and Innovation
Western And Central Africa
Regional Vice President: Ousmane Diagana
Regional Director: Abebe Adugna Dadi
Country Director: Clara Ana Coutinho De Sousa
Practice Manager: Douglas Pearce
Task Team Leader(s): Tenin Fatimata Dicko, Maimouna Gueye
The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
ABBREVIATIONS AND ACRONYMS
BCEAO West Africa Central Bank (Banque Central des Etats d’Afrique de l’Ouest)
BDS Business Development Services
CARFO Ouagadougou Retirees Pension Plan
CETI-SFD Information management center for microfinance institution (Centre de Traitement
Informatisé des Systèmes Financiers Décentratlisés)
CNSS National Social Security Office (Caisse Nationale de Securité Sociale)
DGD National Customs Office (Direction Générale de la Douane)
FAARF Women Entrepreneurial Activities Support Fund (Fonds d’Appui aux Activités
Rémunératrices des Femmes)
GIM UEMOA Interbank Electronic Banking Group - West African Economic and Monetary
Union (Groupement Interbancaire Monétique de l'Union Economique et
Monétaire Ouest Africaine)
MFI Microfinance institution
MTR Mid Term Review
OQSF Observatory on quality financial services
PDO Project Development Objective
PPCG Partial Portfolio Credit Guarantee
RCPB Network of Financial cooperative (Réseau des Caisses Populaires du Burkina)
RF Results Framework
SICA West African Economic and Monetary Union Automated Interbank Clearing
House
SME Small and Medium Enterprises
STAR West African Economic and Monetary Union Real Time Gross System
The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
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BASIC DATA
Product Information
Operation ID Operation Name
P164786 Financial Inclusion Support Project in Burkina Faso
Product/Financing Instrument Geographical Identifier
Investment Project Financing (IPF) Burkina Faso
Approval Date Current Closing Date
30-Apr-2019 30-Apr-2025
Original EA Category
Partial Assessment (B) (PAD Approval Package-30 Apr 2019)
Organizations
Borrower Responsible Agency
Ministry of Economy, Finance and Development Directorate of Treasury and Public Accounting
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OPERATION STATUS
Project Development Objective (DO)
Current Development Objective
The Project Development Objective is to increase access to digital financial services and facilitate access to credit for
targeted beneficiaries.
Disbursement Summary (in USD million)
Source of Funds Net Commitment Disbursed Undisbursed % Disbursed
IBRD -- -- -- 0
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The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
IDA 90.21 72.49 23.74 75.33
Grants 10.00 0.00 10.00 0.00
Policy Waivers
Does this restructuring trigger the need for any policy
waiver(s)? No
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The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
TABLE OF CONTENTS
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1
II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2
III. PROPOSED CHANGES ................................................................................................................................................3
IV. DETAILED CHANGE(S) ...............................................................................................................................................3
The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING
1. The Financial Inclusion Support Project (FISP) was approved on April 30, 2019, and became effective on September 6,
2019. The original PDO is “to increase access to digital financial services and facilitate access to credit for targeted
beneficiaries.” Targeted beneficiaries refer to individuals, farmers, women, youth, and SMEs that are unserved and
underserved financially. The PDO remains relevant and attainable.
2. Significant progress has been achieved since the last project restructuring following the mid-term review (MTR) to
better align the project activities with the PDO, and to update the results framework to capture all the efforts the
project is supporting. Thanks to these measures, both the PDO and Implementation Progress ratings were upgraded
from MS to S. Indeed, out of the four PDO indicators; two reached their targets and the remaining two are on track to
achieve the targets. As of 25th November 2024, the project disbursement rate was 73.62 percent on IDA Credit No.
6396-BF and 0% on Grant No. TF0B6183.
3. This Restructuring Paper seeks Senior Management approval for restructuring the Financial Inclusion Support Project
(FISP). The purpose of the restructuring is to extend the project closing date. This is the first extension request of the
project. An additional 12-month extension is crucial to finalize the resolution of technical issues arising from the use
of IT equipment and payment platforms supported by the project and to disburse the additional financing in response
to climate related shocks. The disbursement on AF grant occurs when the country is facing a shock (covid-19, climate
shocks). The additional financing did not disburse yet as it became operational when the impact of COVID was already
greatly mitigated (November 2021) and the scope of crises eligible was initially limited. If these issues are not
addressed properly, they could hamper the full operationalization of the digital finance platforms for public
implementing entities and microfinance institutions. On, the additional financing, during the second restructuring in
February 2024, the scope of the eligible crisis was extended to climate shocks. Burkina has only one rainy season per
year, this project extension will allow to cover next rainy season and increase the probability to disburse the additional
financing grant.
4. Considering this, on June 26, 2024, the World Bank received a restructuring request from the Minister of Economy
and Finance of Burkina Faso to extend the Closing Date from April 30, 2025, to April 30, 2026.
5. The 12-month extension is needed for component 1.1 on digitalization of government payments, to allow the
completion of the activities and to stabilize the solutions. The Treasury e-banking solution and CNSS biometric
identification solution and the hyperconverged servers, are at contract signature stage. Up to 10-12 months is needed
to ensure effective deployment of these IT solutions, given the potential for initial implementation and technical issues
to arise. This estimation of the stabilization period is based on the experience of platforms already deployed by the
project after deployment completion. The insecurity context contributes to slow down the deployment of Treasury
digital payment platform. As the deployment of payment platform requires an upgrade of the power system, the client
deliberately excluded some remote offices from the rollout to avoid them being the target of attacks. On component
1.2, the digital transformation of MFIs (IT equipment (hardware) of the shared MFI platform) is being delivered,
however the platform procurement was interrupted since July 2024 due to a complaint. Following the ARCOP (national
public procurement authority) decision in early November 2024, the project will be able to proceed with the contract signing
for the platform. Considering this interruption, the procurement stage, and the deployment time of the platform and
stabilization, will only be completed by February 2026.
6. The extension is also needed for component 2, to allow the full deployment of the core IT system of the largest network
of financial cooperatives in the microfinance sector (Réseau des Caisses Populaires du Burkina- RCBP). Project support to
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The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
RCBP was requested by the client during the February 2024 restructuring, as this institution is the largest microfinance
provider in the country and represents a systemic risk for the entire microfinance sector.
7. Finally, this extension will give more time to disburse on the additional financing grant (TF0B6183) supporting the
project component 3. Indeed, the disbursement on AF grant occurs when the country is facing a shock impacting
SMEs, agriculture producers and women entrepreneurs such as Covid-19 and climatic shocks (floods and drought). As
the country has one rainfall season, this extension will cover one additional rainy season, thus increase the probability
to disburse the AF for climate related shocks.
8. Below is the status of the project procurement that would not be completed by end of April 2025. Without the
extension, the potential undisbursed amount under IDA Credit and grant (TF0B6183) could be ranging between $19
million to $24 million.
Activity Procurement Under Completion Comments
stage implementatio date
n
E-banking solution Contract signed Not yet 5/30/2025
on 11/15/2025
CNSS-Biometric identification Contract signed Not yet 8/30/2025
solution on 11/25/2025 Require a stabilization period of
CNSS IT equipment and servers Contract signed Not yet 12/30/2025 up to 90 days following
on 11/25/2025 deployment completion
Shared platform for MFIs Contract signed Not yet 8/31/2025
on 11/21/2025
Establishment of the entity in charge The shared MIS 2/28/2026
of managing the shared MIS (CETI- hardware is
SFD) and institutional support for 15 delivered, and
months the entity is
established
RCBP core IT system strengthening Selection Ongoing 9/30/2025 Require a stabilization period of
completed inception up to 90 days following
deployment completion
II. DESCRIPTION OF PROPOSED CHANGES
9. The Team recommends a Level 2 restructuring to ensure the achievement of the PDO by:
✓ Extending the Financing Agreement of IDA Credit No. 6396-BF and the Trust Fund Grant Agreement No.
TF0B6183 Closing Dates from April 30, 2025, to April 30, 2026, as requested by the Government.
✓ This is the first extension of Closing Date for the Project.
✓ This the third level 2 restructuring for the Project.
10. Changes to the PDO. There are no proposed changes to the PDO. It will remain as follows “to increase access to digital
financial services and facilitate access to credit for targeted beneficiaries”. Targeted beneficiaries include farmers,
women, youth and SMEs that are unserved and underserved financially.
11. Changes to Components. There are no proposed changes to the five components of the project.
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The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
12. Changes in the Results Framework (RF). There are no proposed changes to the project results framework.
13. Reallocation of Funds Among Components and Categories. There are no proposed changes to the reallocation of
funds among components and categories.
14. Financial management: the project financial management has been rated as satisfactory since the project started.
There are no pending audit reports either an interim financial report. This restructuring is not aiming to modify the
financial management arrangements in place. The FM’s residual risk at the approval was rated substantial, however,
the latest FM’s supervision rated the FM’s risk as moderate. No changes are planned in the FM arrangements.
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Summary changes
III. PROPOSED CHANGES
Operation Information Proposed Changes Operation Information Proposed Changes
Development Objective No Loan Closing Date Extension Yes
Safeguard Policies Triggered No Loan Cancellations No
ISDS No Reallocations No
MFD/PCE No Financial Management No
Results No Procurement No
Risks No Institutional Arrangement No
Legal Covenants No Implementation Schedule No
Conditions No
Implementation Modalities No
Disbursements Estimates No
Disbursements Arrangements No
DDO No
Clients No
Appraisal Summary No
Components No
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IV. DETAILED CHANGE(S)
COSTS & FINANCING
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The World Bank
Financial Inclusion Support Project in Burkina Faso (P164786)
Private Capital Facilitation
Is this an MFD-Enabling Project (MFD-EP)?
Is this project Private Capital Enabling (PCE)?
LOANS
Loan Closing
Original Revised Proposed Proposed Deadline
Loan/Credit/Trust
Status Closing Closing(s) Closing for Withdrawal
Fund
Applications
IDA-63960-001 Effective 30-Apr-2025 30-Apr-2025 30-Apr-2026 30-Aug-2026
TF-B6183-001 Effective 30-Apr-2025 30-Apr-2025 30-Apr-2026 30-Aug-2026
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