The World Bank BF-Reproductive Health Project (FY12) (P119917) REPORT NO.: RES31119 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF BF-REPRODUCTIVE HEALTH PROJECT (FY12) APPROVED ON DECEMBER 20, 2011 TO MINISTRY OF FINANCE AND BUDGET,REPUBLIC OF BURKINA FASO HEALTH, NUTRITION & POPULATION AFRICA Regional Vice President: Makhtar Diop Country Director: Pierre Frank Laporte Senior Global Practice Director: Timothy Grant Evans Practice Manager/Manager: Gaston Sorgho Task Team Leader: Paul Jacob Robyn, Zenab Konkobo Kouanda The World Bank BF-Reproductive Health Project (FY12) (P119917) I. BASIC DATA Product Information Project ID Financing Instrument P119917 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 20-Dec-2011 30-Jun-2018 Organizations Borrower Responsible Agency Ministry of Finance and Budget,Republic of Burkina Faso National AIDS Council (SP-CNLS),CNLS Project Development Objective (PDO) Original PDO To improve the utilization and quality of reproductive health services in the Recipient's territory, with a particular focus on selected regions of the Recipient. Current PDO To improve the utilization and quality of maternal and child health, reproductive health and HIV/AIDS services in the Recipient's territory with a particular focus on the poor and vulnerable. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1080 15-Mar-2016 04-Apr-2016 17-Oct-2016 30-Jun-2018 35.00 22.54 13.00 IDA-H7510 20-Dec-2011 14-Feb-2012 22-Oct-2012 30-Jun-2018 28.90 26.31 .02 TF-11678 14-Feb-2012 14-Feb-2012 22-Oct-2012 31-Dec-2016 12.68 12.68 0 The World Bank BF-Reproductive Health Project (FY12) (P119917) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The original IDA and HRITF financing have disbursed close to 100%. The Additional Financing approved in March 2016 and became effective in October 2016, has a total disbursements rate at 58% with only 7 months remaining until project closing. There are no audit reports overdue and all the audit reports have been submitted on time and with no qualification. The overall project implementation has been downgraded to Moderately Unsatisfactory for various reasons. Overall, the performance of the PADS (implementation unit in the MOH) has continued to decline and is currently at unacceptable levels. The task team and CMU have met with the Minister of Health several times in the past few months to express their concerns and need for change. The Ministry has asked for additional time to resolve internal challenges within PADS. Yet until now no changes in staffing or performance of PADS have been observed. As such, the preparation process for the new health operation (P164696) has been exploring fiduciary arrangements alternative to PADS, such as using the central-level directions for financing and procurement within the Ministry of Health. So far, the ministry is favorable to this idea but additional assessments must be taken before moving forward to evaluate capacity building needs for these directions. The consequences of the poor performance of PADS are significant. First, disbursements on Component 1 for Results Based Financing, the primary component of the project, are now almost one year delayed. This is due to insufficient resources being allocated to this component and full disbursement of the component being achieved in the first year of the Additional Financing. The task team has been expecting for six months a request for restructuring to reallocate resources from other components to the RBF component. A first request came after three months but was insufficient and not what the task team agreed upon with the PIU (PADS). The revised request for restructuring was received on December 20th, 2017, despite weekly reminders from the task team. Service providers, district and regional teams remain demotivated and skeptical that payments for verified results will ever be paid. If the restructuring request does come and is processed quickly, funds will be sufficient to implement the bare minimum of the RBF package until closing in June 2018. The restructuring request included a request to extend the project closing date by six months, to allow for completion of activities under Component 2 that have been delayed by procurement and disbursement procedures. As per discussions with the CMU and GP, the task team will not process the request for extending the closing date. This is due to the declining performance of PADS and the CMU and GP's prioritized focus on preparing the new operation that will most likely have different fiduciary and coordination arrangements. Given the request has been received, the task team will quickly process the restructuring, which will reallocate additional resources from Sub-Components 1.3, 2.1 and 2.2 to Sub-Components 1.1 and 1.2. This reallocation will allow for sufficient resources to be provided until the project closing date (June 30, 2018) for both payment of RBF subsidies under Sub-Component 1.1 (including delayed past payments), as well as contract management, verification and coaching activities (Sub-Component 1.2). The World Bank BF-Reproductive Health Project (FY12) (P119917) With this reallocation, all non-essential activities from Sub-Components 1.3, 2.1 and 2.2 have been canceled. The task team is also working closely with fiduciary colleagues to address the poor performance of PADS and identify how to speed up implementation of activities and related procurement and implementation procedures for remaining activities in these sub-components. The team will make extensive efforts to boost project performance and improve project ratings for the next ISR. As mentioned above, the request for extending the closing date will not be processed. III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-D1080- GD,NCS,CS,TR,O 7,200,000.00 6,615,404.49 8,650,147.00 100.00 100.00 001 P C, Part A (1) Currency: GD,NCS,CS,TR,O XDR P C, Pt 10,900,000.00 0.00 9,449,853.00 100.00 100.00 A2,A3,B1,B2 GD,NCS,CS,TR,O 7,300,000.00 2,775,821.47 7,300,000.00 100.00 100.00 P C, Part B4 Total 25,400,000.00 9,391,225.96 25,400,000.00