The World Bank Public and Social Sector Transformation Project (PSST) (P126791) REPORT NO.: RES29656 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PUBLIC AND SOCIAL SECTOR TRANSFORMATION PROJECT (PSST) APPROVED ON JUNE 5, 2013 TO ANTIGUA AND BARBUDA SOCIAL PROTECTION & LABOR LATIN AMERICA AND CARIBBEAN Regional Vice President: Jorge Familiar Calderon Country Director: Tahseen Sayed Khan Senior Global Practice Director: Michal J. Rutkowski Practice Manager/Manager: Pablo Gottret Task Team Leader: Karla J. McEvoy, Juan Martin Moreno The World Bank Public and Social Sector Transformation Project (PSST) (P126791) ABBREVIATIONS AND ACRONYMS IP Implementation Progress PDO Project Development Objective PPA Project Preparation Advance The World Bank Public and Social Sector Transformation Project (PSST) (P126791) BASIC DATA Product Information Project ID Financing Instrument P126791 Specific Investment Loan Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 05-Jun-2013 31-Dec-2018 Organizations Borrower Responsible Agency Antigua and Barbuda Project Management Unit,Ministry of Labour Project Development Objective (PDO) Original PDO The objective of the Project is to assist the Borrower in: (i) strengthening its capacity in managing public policies and the public service; (ii) improving the efficiency of social protection spending through an integrated monitoring and targeting system; and (iii) improving the income and employability of the vulnerable population through temporary employment and training programs. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-82690 05-Jun-2013 14-Aug-2013 12-Sep-2013 31-Dec-2018 10.00 2.93 7.07 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Public and Social Sector Transformation Project (PSST) (P126791) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The ratings for achievement of the Project Development Objective (PDO) and Overall Implementation Progress (IP) are unsatisfactory, and the project has been in problem status for over 2 years. National elections were held just months after effectiveness, and the new administration that took office, in June of 2014, had different priorities than some of those articulated in the project’s development objectives. The Bank team and government counterparts worked for over a year to restructure the project to satisfy these new priorities while adhering to Bank policies, but by July of 2017, the Borrower decided that rather than restructure the existing operation to fit new priorities, it would cancel the unwithdrawn loan balance, advance the closing project date, and explore the option of preparing a new operation with the Bank. This restructuring therefore cancels the unwithdrawn loan balance in the amount of US$ 7,011,441.32, and changes the Project closing date to September 30, 2017, as agreed between the Bank and the Borrower. In addition, this restructuring re-allocates loan proceeds from Category 2 (goods, non-consulting services, works, consultant services, training, and operating costs under Parts 3, 4(c), 4(d), and 4(e) of the Project); to Category 4 (goods, non-consulting services, consultant services, training, Project audits, and operating costs under Part 5 of the Project). The amount of the reallocation is US$313,137.36 and covers the overdraw of Category 4. Category 4, which funded the Project Management Unit (PMU), was overdrawn because, while the Project was designed so that the PMU would be absorbed by the Government during implementation, the new administration opted to keep project staff as consultants and to continue funding the PMU from Loan resources. The reallocation moves money from one of the expenditure categories that funded other project components that the new administration did not implement. Furthermore, the Bank hereby cancels, as of July 21, 2017, the amounts allocated to the Categories set forth in Section IV.A.2. of Schedule 2 to the Loan Agreement, as follows: an amount equal to $2,921,236 from Category (1); an amount equal to $1,670,317.00 from Category (2); an amount equal to $2,226,993.98 from Category (3); and an amount equal to $192,894.34 from Category (5). The World Bank Public and Social Sector Transformation Project (PSST) (P126791) II. DESCRIPTION OF PROPOSED CHANGES The proposed Level 2 restructuring would entail: (i) cancellation of the unwithdrawn loan balance of US$ 7,011,441.32; (ii) a change in the project closing date to September 30, 2017; and (iii) a reallocation of loan proceeds. I. SUMMARY OF CHANGES Changed Not Changed Change in Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Components and Cost ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Change in Implementation Schedule ✔ The World Bank Public and Social Sector Transformation Project (PSST) (P126791) Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-82690 Effective 31-Dec-2018 30-Sep-2017 30-Jan-2018 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IBRD- Disburs USD 10,000,000.00 7,011,441.32 21-Jul-2017 2,988,558.68 FOR 82690-001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-82690-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: CS, NCS and OP for Parts 1 & 2 3,365,000.00 355,218.92 443,764.00 100.00 100.00 The World Bank Public and Social Sector Transformation Project (PSST) (P126791) iLap Category Sequence No: 2 Current Expenditure Category: GO,NCS,CW,CS,TRG&OP P. 3, 4(c,d,e) 2,381,000.00 365,037.68 397,545.64 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Sub-projects for Parts 4 (a) & (b) 2,708,000.00 285,611.54 481,006.02 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: GO, NCS, CS, TRG, audits & OP P. 5 939,000.00 902,731.07 1,252,137.36 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: Refund of Preparation Advance 582,000.00 389,105.66 389,105.66 Total 9,975,000.00 2,297,704.87 2,963,558.68