Document of
                     The World Bank


                                                  Report No: 54136 v1




                 RESTRUCTURING PAPER

                          ON A

             PROPOSED PROJECT RESTRUCTURING
                            OF
AVIAN INFLUENZA CONTROL & HUMAN PANDEMIC PREPAREDNESS &
                    RESPONSE PROJECT
              (CREDIT 4188-MD/GRANT H233-MD)

                    September 12, 2006


                         TO THE

                 REPUBLIC OF MOLDOVA


                      APRIL 11, 2010
        ABBREVIATIONS AND ACRONYMS




          Vice President:        Philippe H. Le Houerou
        Country Director:        Martin Raiser
        Country Manager          Melanie Marlett
Sector Manager / Director:       Dina Umali-Deininger
       Task Team Leader:         Anatol Gobjila
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                          MOLDOVA
   AVIAN INFLUENZA CONTROL & HUMAN PANDEMIC PREPAREDNESS &
                       RESPONSE PROJECT
                            P099841
                          CONTENTS

                                                                                        Page
ANNEX 2: REALLOCATION OF PROCEEDS ........................................................... 4




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                                      ANNEX 2:
                               Reallocation of Proceeds
         MOLDOVA -- AVIAN INFLUENZA CONTROL & HUMAN PANDEMIC
                   PREPAREDNESS & RESPONSE PROJECT
                                  P099841
                     (CREDIT 4188-MD/GRANT H233-MD)
                                         Restructuring Paper

1.      Proceeds for Moldova, Avian Influenza CONTROL & HUMAN PANDEMIC
PREPAREDNESS & RESPONSE PROJECT, Credit 4188-MD, P099841 will be
reallocated as follows:

     Category of Expenditure                    Allocation (SDR)         % of Financing
     Current         Revised                  Current      Revised     Current    Revised
1) Goods, works,       (1) Goods, works,       280,000             0
consultant services,   consultant services,
training,              training,
incremental            incremental
operating costs for    operating costs for
Parts A.3 (b) and      Parts A.3 (b) and
(c) of the Project     (c) of the Project
(2) Compensation       (2) Compensation        350,000       50,000        100         100
Fund                   Fund

3) Goods, works,       3) Goods, works,       2,170,000    2,750,000       100         100
consultant services,   consultant services,
training,              training,
incremental            incremental
operating costs for    operating costs for
other parts of the     other parts of the
Project                Project

(4) Unallocated        (4) Unallocated                 0          0

TOTAL                                         2,800,000    2,800,000       100         100



 2.      Proceeds for Moldova, Avian Influenza CONTROL & HUMAN PANDEMIC
PREPAREDNESS & RESPONSE PROJECT, Grant H233-MD, P099841 will be
reallocated as follows:

     Category of Expenditure                    Allocation (SDR)         % of Financing
     Current         Revised                  Current      Revised     Current    Revised
1) Goods, works,       (1) Goods, works,       280,000             0
consultant services,   consultant services,

                                                   4
training,              training,
incremental            incremental
operating costs for    operating costs for
Parts A.3 (b) and      Parts A.3 (b) and
(c) of the Project     (c) of the Project
(2) Compensation       (2) Compensation        350,000       50,000     100             100
Fund                   Fund

3) Goods, works,       3) Goods, works,       2,170,000    2,750,000    100             100
consultant services,   consultant services,
training,              training,
incremental            incremental
operating costs for    operating costs for
other parts of the     other parts of the
Project                Project

(4) Unallocated        (4) Unallocated                 0          0

TOTAL                                         2,800,000    2,800,000    100             100



3.       The Project's progress towards achieving its development objective continues to
be satisfactory. In 2009, disbursements have picked up significantly and Government
ownership has been solid, with no crucial delays and hold-ups. A majority of project
activities has been completed, and most PDO indicators have already been or are
expected to be reached by the closing date of March 31, 2011. The results of the project
have increased general preparedness and resilience for influenza outbreaks, allowing the
Government to minimize the impact of the initial wave of the H1N1 influenza pandemic.


4.      The proposed reallocation is necessary to continue the support under the project's
Animal Health Component for activities aimed at strengthening the diagnosis capacity of
the Republican Center for Veterinary Diagnostics (RCVD). The reallocation would
allow for the financing of one significant additional output - the refurbishment of the
Central Veterinary Laboratory (CVL) of the RCVD. As reflected in the project's original
appraisal document (Annex 4, page 24), this important work was supposed to be
completed till 2007 with funding from the Government's own budget in order to
complement the project's focus on strengthening the country's capacity for animal health
diagnosis. However, the Government was unable to fund the refurbishment of the CVL
due to severe budget spending constraints in recent years. The civil works and equipment
involved, costing an estimated US$1.5 million, comprise the installation of new utilities
(water, gas, heating, electricity) in the entire building and of an elevator, as well as the
refurbishment of interior walls and floors to ensure essential hygiene in the laboratory. In
addition, the project would support the installation of a medium capacity incinerator to
ensure the secure disposal of biological waste. Completing these works and acquiring the
necessary equipment will ensure that the building of the CVL is structurally sound and all
its sections are up to date with respect to basic laboratory sanitary, safety and utility
requirements, efficient workflows, and effective provision of enabling conditions for the
diagnosis of highly pathogenic avian influenza. In addition, these activities will ensure
that all prior support provided by the project and other donors (mainly EU) for
                                                   5
strengthening CVL's diagnosis capacity will be safeguarded against possible physical
deterioration of the building.




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