The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) REPORT NO.: RES38944 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDIA: BIHAR INTEGRATED SOCIAL PROTECTION STRENGTHENING PROJECT APPROVED ON DECEMBER 30, 2013 TO INDIA SOCIAL PROTECTION & JOBS SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: Lynne D. Sherburne-Benz Practice Manager/Manager: Stefano Paternostro Task Team Leader: Srinivas Varadan, Pravesh Kumar The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) ABBREVIATIONS AND ACRONYMS The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) BASIC DATA Product Information Project ID Financing Instrument P118826 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 30-Dec-2013 31-Mar-2020 Organizations Borrower Responsible Agency Rural Development Department,Department of Social India Welfare Project Development Objective (PDO) Original PDO To strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-53490 30-Dec-2013 28-May-2014 07-Aug-2014 31-Mar-2020 84.00 32.94 42.30 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Bihar Integrated Social Protection Strengthening Project (BISPS) became effective in August 2014. The PDO is to strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar. As part of system strengthening, the Project focuses on (i) setting up a comprehensive the social pensions delivery system that delivers direct benefit transfers to about 6.5 million beneficiaries, (ii) build and operate 101 State-of-Art one-stop social care service centers for persons with disabilities, elderly and widows, (iii) putting in place mobile outreach and therapy services for ensuring community linkages and expanding coverage of social protection programs, (iv) strengthening a digital financial management system that supports the Rural Development Department (RDD) and other state departments in obtaining timely and reliable financial expenditure information from Panchayats, Blocks and Districts on their programs, among others. The Project’s progress towards achievement of the Development Objective is currently rated Moderately Satisfactory, while the overall Implementation Progress is rated Moderately Unsatisfactory. A restructuring of the project was undertaken in June 2018 in order to realign the Project results framework to appropriately reflect its intended outcomes, and slightly revise the Rural Development component to allow for better linkage with the social protection tracking system. After 5.5 years of project implementation the disbursement stands at 44%. The Project rollout was affected primarily due to the delay in hiring of the project personnel at various levels and operationalization of 101 social care centers (Buniyad Kendra) in the state. As a result, the project has witnessed considerable delays in its initial years of implementation and there have been savings in the project operations cost. There were also savings due to the exchange rate difference between USD and INR. Therefore, a partial cancellation is being undertaken at the request of the Government of India, Ministry of Finance, Department of Economic Affairs through a letter dated October 14, 2019. II. DESCRIPTION OF PROPOSED CHANGES A partial cancellation of USD 22 million equivalent is being undertaken to adjust the savings under the project on account of the initial delays in operationalization of the social care service centers as well as savings due to the exchange rate difference between USD and INR. This has resulted in some of the costs under the components being realigned and an adjustment made to the disbursement estimates for the remaining period of the Project. However, the Project Development Objectives and Results Framework remain unchanged. III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Strengthening Social Strengthening Social Protection 32.90 Revised Protection Systems and 25.90 Systems and Capacity Capacity The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) Strengthening Outreach and Strengthening Outreach and 87.10 Revised Social Protection Service 72.10 Social Protection Service Delivery Delivery TOTAL 120.00 98.00 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN Disburs IDA-53490- RESTRUCTUR ing&Re XDR 54,700,000.00 16,051,950.00 14-Oct-2019 38,648,050.00 001 ING, COST paying SAVINGS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-53490-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,Wks,NCS,CS,Trng,Op Cost 54,700,000.00 21,092,064.82 38,648,050.00 70.00 70.00 Total 54,700,000.00 21,092,064.82 38,648,050.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2014 0.00 0.00 2015 0.00 195,615.34 2016 1,704,570.39 216,729.17 The World Bank India: Bihar Integrated Social Protection Strengthening Project (P118826) 2017 8,829,981.73 10,337,305.10 2018 11,263,985.38 10,198,067.33 2019 26,691,407.69 10,542,059.19 2020 35,510,054.81 30,510,223.87 .