The World Bank Health Sector Support Project (P160846) REPORT NO.: RES32207 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HEALTH SECTOR SUPPORT PROJECT APPROVED ON JULY 28, 2017 TO PEOPLE'S REPUBLIC OF BANGLADESH HEALTH, NUTRITION & POPULATION SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Qimiao Fan Senior Global Practice Director: Timothy Grant Evans Practice Manager/Manager: E. Gail Richardson Task Team Leader: Patrick M. Mullen, Bushra Binte Alam The World Bank Health Sector Support Project (P160846) I. BASIC DATA Product Information Project ID Financing Instrument P160846 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 28-Jul-2017 31-Dec-2022 Organizations Borrower Responsible Agency People's Republic of Bangladesh Ministry of Health and Family Welfare Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to strengthen the health, nutrition and population (HNP) sector's core management systems and delivery of essential HNP services with a focus on selected geographical areas. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-63020 28-Jun-2018 20-Sep-2018 31-Dec-2022 8.33 0 8.24 IDA-D3610 28-Jun-2018 20-Sep-2018 31-Dec-2022 41.67 0 41.39 IDA-61270 28-Jul-2017 28-Aug-2017 02-Oct-2017 31-Dec-2022 500.00 65.10 440.89 TF-A4355 28-Jul-2017 28-Aug-2017 02-Oct-2017 31-Dec-2021 15.00 0 15.00 The World Bank Health Sector Support Project (P160846) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES Implementation of the Bangladesh Health Sector Support Project (HSSP) is progressing satisfactorily with eight disbursement linked results (DLRs) of FY17 and two DLRs of FY18 have been verified to be achieved for which US$65 million has been disbursed. The Ministry of Health and Family Welfare (MOHFW) has reported to have achieved nine more DLRs relating to FY18 (with an estimated value of US$46.8 million), which are currently being verified by the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning. An additional financing for US$50 million was processed for HSSP in June 2018 to enhance the capacity of the MOHFW to respond to an emergency emanating from an influx of displaced Rohingya population. The additional financing was approved by the World Bank Board on June 28, 2018 for US$41.67 million of IDA grant and US$8.33 million of IDA credit, and legal agreements were signed on September 20, 2018. Canada will buy-down the IDA credit portion of the additional financing. The MOHFW has revised the Social Management Framework (SMF), Environmental Management Framework (EMF) and the Framework for Tribal People's Plan (FTPP) to incorporate the impact of activities for the displaced Rohingya population. Once these documents are disclosed by the MOHFW, the additional financing will be made effective. The original project (HSSP components 1, 2 and 3) is financed by an IDA credit of US$500 million, a grant of US$15 million from the Global Financing Facility (GFF) and an expected contribution of US$160 million into a multi-donor trust fund (MDTF) financed by Canada, the Netherlands, Sweden and the United Kingdom. The MDTF grant is co- financing the same set of DLRs as the IDA credit. The GFF grants were allocated to 3 out of the 16 disbursement-linked indicators of FY19, FY20 and FY21. To ensure consistency across the three financing streams of components 1-3 of HSSP (i.e. IDA credit, MDTF grant and GFF grant), it was agreed with the MOHFW to reallocate the GFF grants to the full set of DLRs of FY17, FY18 and FY19 as being financed by the IDA credit. This reallocation would ensure greater utilization of grant funds early on in the project. Consistent with the provisions of the legal agreement for the IDA credit, the draft amendment letter of the GFF grant agreement (attached) includes a clause for retroactive financing of up to a maximum of US$3 million (i.e. 20% of the total GFF grant funds) to reimburse eligible expenditures of the MOHFW incurred on or after January 1, 2017. This provision for retroactive financing is required to disburse against FY17 DLRs. No other changes are being proposed to the project. III. DETAILED CHANGES