The World Bank Mainland and Zanzibar National Audit Offices Capacity Building Project (P162538) REPORT NO.: RES37899 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MAINLAND AND ZANZIBAR NATIONAL AUDIT OFFICES CAPACITY BUILDING PROJECT APPROVED ON MARCH 15, 2017 TO MINISTRY OF FINANCE GOVERNANCE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Bella Bird Senior Global Practice Director: Edward Olowo-Okere Practice Manager/Manager: Nicola J. Smithers Task Team Leader: Jiwanka B. Wickramasinghe, Hugues Agossou The World Bank Mainland and Zanzibar National Audit Offices Capacity Building Project (P162538) ABBREVIATIONS AND ACRONYMS CSOs Civil Society Organizations NAO National Audit Offices; Tanzania Mainland and Zanzibar NAOT National Audit Office of Tanzania OCAGZ Office of the Controller and Auditor General Zanzibar PCCB Prevention and Com batting of Corruption Bureau PDO Project Development Objectives SAI Supreme Audit Institution USD United States Dollar Prevention and Com batting of Corruption Bureau The World Bank Mainland and Zanzibar National Audit Offices Capacity Building Project (P162538) BASIC DATA Product Information Project ID Financing Instrument P162538 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 15-Mar-2017 30-Jun-2019 Organizations Borrower Responsible Agency National Audit Office- Tanzania Mainland,Office of the Ministry of Finance Controller and Auditor General- Zanzibar Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Mainland and Zanzibar National Audit Offices Capacity Building Project (P162538) Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to improve the quality and efficiency of public sector audit in line with the standards endorsed by the International Organization of Supreme Audit Institutions (INTOSAI), thereby strengthening oversight over the management of public resources in Tanzania. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A4610 30-Jun-2017 30-Jun-2017 26-Mar-2018 30-Jun-2019 .60 .18 .42 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. SUMMARY 1. The objective of the Project is to improve the quality and efficiency of public sector audit in line with the standards endorsed by INTOSAI. The Project consists of the three components. 2. Under the Component I , the project was designed to strengthen the professional capacity of the National Audit Offices (NAOs) by: (a) enhancing the oversight roles of the NAOs and (b) improving the transparency and accountability on the use of public funds. 3. The Component II aimed at strengthening partnerships between the Supreme Audit Institution (SAi) and Stakeholders Promoting consultations between the NAOs, PCCB, and citizens/CSOs/public to break barriers to mutually productive collaboration. 4. The Component III - Project management, monitoring and evaluation, and audit; includes provision of consulting services to facilitate project implementation including monitoring and audit. 5. The project has experienced delays mainly related to administrative procedures (e.g., in the procurement processes for the selection of the consultants which have taken longer than expected), but also the weak capacity resulting in poor quality ToR. The World Bank Mainland and Zanzibar National Audit Offices Capacity Building Project (P162538) 6. A government request for restructuring was received on June 28th, 2019. The proposed restructuring aims at extending the closing date for two months from June 30th to August 30th, 2019; the maximum that can be granted given the closing date of the Parent trust Fund December 31st, 2019. B. PROJECT STATUS 7. As for the last Implementation Status and Results Report (ISR) in June 2018, the project was rated Moderately Unsatisfactory on both progress toward the realization of the Project Development Objective (PDO) and overall implementation progress. 8. The current disbursement rate is 29.53 percent. The implementation of the project has suffered significant delays due to slow implementation resulting from capacity issues, delays in producing Terms of References (TORs) of good quality, and a lack of familiarity with the Bank procedures. The team decided to consolidate many small activities into three major activities representing 75 percent of the total amount of the grant. All the contracts have been signed. Some activities have been completed and other expected to be completed after June 28, 2019. The project has anticipated that the delivery of the outputs may take more time than expected. Therefore, a request for the extension of the closing date has been submitted. The completion of the ongoing contracts will bring the disbursement rate to at least 85 percent. II. DESCRIPTION OF PROPOSED CHANGES 9. The proposed restructuring introduces the change to the initial Grant closing date from June 30th, 2019 to August 30th, 2019. This change is driven by the anticipated delay for the completion of few activities that however account for a significant part of the Grant. I. SUMMARY OF CHANGES Changed Not Changed Loan Closing Date(s) ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ The World Bank Mainland and Zanzibar National Audit Offices Capacity Building Project (P162538) Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A4610 Effective 30-Jun-2019 30-Aug-2019 30-Oct-2019 Note to Task Teams: End of system generated content, document is editable from here.