76042
             Document of
          The World Bank




       RESTRUCTURING PAPER

               ON A

  PROPOSED PROJECT RESTRUCTURING

                 OF

PARAGUAY ROAD MAINTENANCE PROJECT
         IBRD LOAN 7406-PA

           August 24, 2006


              TO THE

      REPUBLIC OF PARAGUAY


           March 25, 2013
Regional Vice President:       Hasan A. Tuluy
      Country Director:        Penelope J. Brook
        Sector Director:       Ede J. Ijjasz-Vasquez
       Sector Manager:         Aurelio Menendez
     Task Team Leader:         Maria Margarita Nunez




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                                   Reallocation of Loan Proceeds

                     PARAGUAY — ROAD MAINTENANCE PROJECT
                                   P082026
                                 LOAN 7406-PA

                                       Restructuring Paper


1.      Proceeds for Paraguay, Road Maintenance Project, IBRD Loan 7406-PA, will be
reallocated as follows (in US$).


                                          Amount of the Loan Allocated
               Category                       (expressed in USD)         Percentage of Expenditures
                                                                               to be financed
                                            Current          Revised

(1) Goods (other than non-durable          2,540,000        2,540,000              70%
goods as covered under Category 4
below)

(2) Works (including non-consultant        52,400,000      63,030,000              70%
services)

(3) Consultants’ services (including       9,580,000        7,380,000              70%
audits) and training
(4) Operating Costs                         400,000         1,050,000              70%


(5) Unallocated                            9,080,000            -

         TOTAL AMOUNT                      74,000,000      74,000,000                -




2.     A US$74 million loan was approved by the Bank for the Paraguay Road
Maintenance Project on August 24, 2006. The Loan Agreement was signed on October
13, 2006 and became effective on January 3, 2008. In June 2012, the Borrower was
granted an eighteen month extension of the closing date to February 28, 2014.

3.     The Borrower has requested the reallocation of loan proceeds in order to finance
components that will allow the project to meets its development objectives. These works
include highway works, improvement of tolls and implementing a traffic survey system.

 4.    The reallocation envisions transferring US$ 2,200,000 from Category 3
Consulting Services and Training, and US$9,080,000 from Category 5 Contingencies to


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Category 2 Works in the amount of $10,630,000 and to Category 4 Operational Costs in
the amount of US$650,000.




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