The World Bank India - Bihar Panchayat Strengthening Project (P102627) REPORT NO.: RES38714 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDIA - BIHAR PANCHAYAT STRENGTHENING PROJECT APPROVED ON SEPTEMBER 27, 2012 TO REPUBLIC OF INDIA GOVERNANCE SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Junaid Kamal Ahmad Regional Director: Zoubida Kherous Allaoua Practice Manager/Manager: George Addo Larbi Task Team Leader: Farah Zahir The World Bank India - Bihar Panchayat Strengthening Project (P102627) ABBREVIATIONS AND ACRONYMS BGSYS Bihar Gram Swaraj Yojana Society BPSP Bihar Panchayat Strengthening Project EMF Environmental Management Framework GPMS Gram Panchayat Management System GP Gram Panchayat IP Implementation Progress PDO Project Development Objective PSB Panchayats Sarkar Bhawans TPQA Third Party Quality Audit The World Bank India - Bihar Panchayat Strengthening Project (P102627) BASIC DATA Product Information Project ID Financing Instrument P102627 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Not Required (C) Approval Date Current Closing Date 27-Sep-2012 30-Dec-2019 Organizations Borrower Responsible Agency Department of Panchayati Raj , Government of Republic of India Bihar,Bihar Gram Swaraj Yojana Society (BGSYS) Project Development Objective (PDO) Original PDO The Project Development Objective is to support Bihar's capacity to promote and strengthen inclusive, responsive, and accountable Gram Panchayats in selected districts across the state. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-51600 27-Sep-2012 27-Jun-2013 21-Aug-2013 30-Dec-2019 84.00 47.21 29.43 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank India - Bihar Panchayat Strengthening Project (P102627) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Bihar Panchayat Strengthening Project (BPSP) is implemented by the Government of Bihar in twelve districts of Bihar. Over the last two years, the project has made significant progress under all components. Targets for PDO and most intermediate indicators have been achieved and are on track for completion by December 2019, the proposed closing date. Fiduciary and social safeguards ratings are Moderately Satisfactory. Environmental screening for selection of land sites for PSBs has been completed. The project continues to implement, monitor and report on the Environment Management Plan (EMP) and occupational health and safety, labor management and related environment management issues. The project has trained all stakeholders on the Environment Management Framework (EMF/EMP) guidelines for operations and maintenance in order to promote sustainable management of the PSBs after project completion. The project has strengthened the mechanism for data compilation on grievances received and redressed. Capacity building of the Mukhiyas – elected heads of the panchayat councils – and other office bearers has emphasized on gender empowerment. Project PDO and IP ratings are Moderately Satisfactory. Under the component 1 (a) the project is constructing 330 Gram Panchayat Offices called Panchayats Sarkar Bhawans (PSB). A total of 334 contracts for construction of the local government offices (i.e. Panchayat Sarkar Bhawan (PSB)) at the Gram Panchayat level had been awarded and construction started in 303 locations last year. The completion of at least 200-250 PSBs out of 303 buildings for which contracts were awarded will be achieved by project closing date. Project has appointed TPQA (Third Party Quality Audit) to regularly supervise the construction activities Under Component 1 (b) the project has made 330 existing PSBs functional by providing furniture, fixture, computer facilities and ensuring adequate staffing. The Bank has fully disbursed US$15 million against the DLI for achievement of this target. In the capacity building component, there has been good progress and the project team has undertaken some noteworthy and innovative initiatives to make training effective. The project has developed and printed various IEC materials like posters, leaflets and Flipcharts; produced audio-jingles; also produced more than 50 episodes of a fictional radio serial and two short films and documentaries as part of mass-media campaign. The project has facilitated the introduction of the Gram Panchayat Management System (GPMS), an accounting software. The rollout of GPMS had been completed in all 330 functional Gram Panchayats. GPMS will make financial data available on a central server and thereby improve transparency and information flow. The Vigilance Committees have been formed in about 247 Gram Panchayats out of 330 project GPs. The Vigilance Committees are intended to safeguard the interests of the community members by ensuring proper delivery of public services with a primary focus on the public distribution system. The Government of Bihar has requested cancellation of an amount of USD 15 million under the project which has accrued to the project as additional money due to exchange rate fluctuations. II. DESCRIPTION OF PROPOSED CHANGES The proposed changes are with respect to cancellation of an amount of USD 15 million under the project which has accrued to the project as additional money due to exchange rate fluctuations. The World Bank India - Bihar Panchayat Strengthening Project (P102627) III. SUMMARY OF CHANGES Changed Not Changed Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ 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_CANCELLATIONS_TABLE The World Bank India - Bihar Panchayat Strengthening Project (P102627) CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN Disburs IDA-51600- RESTRUCTUR ing&Re XDR 55,700,000.00 10,964,190.00 25-Sep-2019 44,735,810.00 001 ING, COST paying SAVINGS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-51600-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Blank 0.00 0.00 0.00 0.10 0.10 iLap Category Sequence No: 2 Current Expenditure Category: Blank 0.00 0.00 0.00 0.10 0.10 iLap Category Sequence No: 3 Current Expenditure Category: Gd,Wk,Con,Non Con,Tr,OC except Pt A 502,517.00 502,517.00 502,517.00 70.00 70.00 iLap Category Sequence No: 4 Current Expenditure Category: UNALLOCATED 0.00 0.00 0.00 iLap Category Sequence No: 5 Current Expenditure Category: Gd,Wk,CS,NCS,Tr,OC except Pt A.2 44,557,833.00 22,771,925.51 33,593,643.00 70.00 70.00 iLap Category Sequence No: 6 Current Expenditure Category: EEP under Part A.2 of the Proj 10,639,650.00 10,639,921.03 10,639,650.00 100.00 100.00 The World Bank India - Bihar Panchayat Strengthening Project (P102627) Total 55,700,000.00 33,914,363.54 44,735,810.00 .