Document of The World Bank FOR OFFICIAL USE ONLY Report No: 76357 v1 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF IGAD REGIONAL HIV/AIDS PARTNERSHIP PROGRAM (IRAPP) SUPPORT PROJECT GRANT TF090523-RAF TO THE INTER-GOVERNMENTAL AUTHORITY ON DEVELOPMENT (IGAD) March 19, 2013 HEALTH, NUTRITION, AND POPULATION (AFTHE) HUMAN DEVELOPMENT DEPARTMENT AFRICA REGION This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ABBREVIATIONS AND ACRONYMS ACGF Africa Catalytic Growth Fund AF Additional Financing CIDA Canadian International Development Agency HIV/AIDS Human immunodeficiency virus infection / acquired immunodeficiency syndrome IDPs Internally Displaced Persons IGAD Inter -Governmental Authority on Development IRAPP Inter -Governmental Authority on Development Regional HIV/AIDS Partnership Program ISR Implementation Status and Results Report PDO Project Development Objective RVP Regional Vice President Regional Vice President: Makhtar Diop Country Director: Colin Bruce Sector Manager: Olusoji O. Adeyi Task Team Leader: Peter Okwero 2 AFRICA IGAD REGIONAL HIV/AIDS PARTNERSHIP PROGRAM (IRAPP) SUPPORT PROJECT CONTENTS Page ANNEX 3: EXTENSION OF CLOSING DATE ......................................................................... 4 3 AFRICA — IGAD REGIONAL HIV/AIDS PARTNERSHIP PROGRAM (IRAPP) SUPPORT PROJECT P104523 GRANT TF090523-RAF Restructuring Paper 1. It is proposed that the closing date for the Inter-Governmental Authority on Development (IGAD) Regional HIV/AIDS Partnership Program (IRAPP) be extended from March 31, 2013 until May 31, 2013. 2. The project development objective (PDO) is to: (i) increase preventative action, and reduce misconception of cross border and mobile populations, refugees, IDPs, returnees and surrounding host communities concerning HIV/AIDS prevention, treatment and mitigation in selected sites in the IGAD member states; and (ii) establish a common and sustainable regional approach to supporting these populations in the IGAD member states. The activities currently financed under the Africa Catalytic Grant Fund (ACGF) will be scaled up through a contribution of US$ 7.6 million from the Canadian International Development Agency (CIDA) that will be processed as Additional Financing (AF) during the extension period. The CIDA funds are currently held in a Multi-Donor Trust Fund (TF071718) set up to receive the donor’s contribution as per the Administrative Agreement dated June 30, 2011 between the Bank and CIDA. 3. The project objectives continue to be achievable and IGAD’s (Implementing Agency) performance satisfactory. According to the last Implementation Status Report (March 2013), all the key ratings are Moderately Satisfactory. IGAD, the Recipient, has also prepared an action plan acceptable to the Bank to implement project activities during the extension period. As of November 31, 2012, 99.2 percent of the ACGF funds were disbursed. The project remains in compliance with the ACGF Agreement and all legal covenants set out in the Grant Agreement with exception of financial management requirements. 4. The audit report for the period ending December 31, 2011 expressed qualified opinion on the project financial statements regarding management of advances under the project. Secondly, due to security reasons South Sudan could not participate in the 2011 audit exercise, and the audit for Somalia could not be processed in a timely manner. To mitigate the risks, IGAD has prepared an action plan acceptable to the Bank. Regarding Djibouti, with a long standing unaccounted advance, the Bank and IGAD have agreed to halt further disbursements/advances to Djibouti National AIDS Commission until the advance has been satisfactorily accounted for. While acknowledging the security problems in both South Sudan and Somalia, IGAD has agreed to ensure that future audits are undertaken in a timely manner. The final audit report for Somalia is due for submission to the Bank. As for South Sudan, the 2011 audit will be included in the 2012 audit exercise. 5. Considering that IGAD has prepared an acceptable plan and that the project team will work closely with IGAD to address the actions agreed in the action plan, the team has requested authorization in line with BP 10.02 Annex A for an exception from the Vice President and Head of Network, OPCSVP and Vice President and Controller, CTRVP to 4 proceed with negotiations for the Additional Financing of the IGAD Regional HIV/AIDS Partnership Program. In light of the above, the project team is seeking to extend the closing date of the parent project from March 31, 2013 to May 31, 2013 in order to process the request for authorization of exception in accordance with BP 10.02 in relation to actions the Bank takes in respect to noncompliance with financial management requirements and to conclude negotiations for the Additional Financing. 6. This will be the fifth extension of the project. The first one was approved for six months on December 23, 2011; the second for four months on June 27, 2012; the third for two months on October 31, 2012; and the fourth for three months on December 28, 2012. Please note RVP approval is not required as the cumulative extension (17 months) does not exceed two years. 7. No legal clearance is required for this restructuring. 8. A request to extend the project closing date by the Implementing Agency (IGAD) is not required. As noted above the need to extend the project closing date was occasioned by delay to process the AF in a timely manner. 5