The World Bank Private Sector Rehabilitation & Agribusiness Development () REPORT NO.: RES39763 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PRIVATE SECTOR REHABILITATION & AGRIBUSINESS DEVELOPMENT APPROVED ON MAY 22, 2014 TO REPUBLIC OF GUINEA-BISSAU FINANCE, COMPETITIVENESS AND INNOVATION AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Nathan M. Belete Regional Director: Elisabeth Huybens Practice Manager/Manager: Consolate K. Rusagara Task Team Leader(s): Francisco Moraes Leitao Campos, Aniceto Timoteo Bila The World Bank Private Sector Rehabilitation & Agribusiness Development () I. BASIC DATA Product Information Project ID Financing Instrument Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-May-2014 31-Dec-2019 Organizations Borrower Responsible Agency Republic of Guinea-Bissau Ministry of Economy and Finance Project Development Objective (PDO) Original PDO The project development objective (PDO) is to support inclusive development of the cashew agribusiness sector and to promote entrepreneurship in other sectors of the economy. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-54640 22-May-2014 12-Jun-2014 08-Sep-2014 31-Dec-2019 8.20 6.82 .58 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Private Sector Rehabilitation & Agribusiness Development () A. Summary The purpose of this level two restructuring is to reallocate funds between Project categories. Specifically, this reallocation of categories will allow to transfer funds not originally used in the Project Preparation Financing (PPF) to the main category 1 for implementation of activities under the Project. B. Project Status The Guinea-Bissau Private Sector Rehabilitation and Agribusiness Development Project (Cr 5464-GW), amounting to SDR 5,300,000, was approved on May 22, 2014, became effective on September 8, 2014, and is scheduled to close on December 31, 2019. Disbursement rate is at 92% and this restructuring will allow for immediate disbursement of large majority of the remaining funds under the Project (requests for disbursement ready to be submitted according to Project Implementation Unit). The Project is achieving its closing, and has achieved its objectives of providing inclusive development to the cashew agribusiness sector and to promote the entrepreneurship in other sectors of the economy. The Project activities include the following components: Promoting the Development of Agribusiness; Developing Entrepreneurship; and Project Coordination. The Project ratings have been stable throughout the Project implementation at Moderate Satisfactory for both Progress towards achievement of PDO and Overall Implementation Progress. These ratings reflected mostly the need to remain conservative given the very difficult political environment and a potential lack of sustainability in reforms introduced under the Project (the Project led for instance the efforts to end FUNPI, a levy that was increasing poverty, as well as efforts to reduce the number of steps for imports/exports). Given the risks have not materialized during the Project lifecycle, a recent mission confirmed the potential to upgrade the Project ratings in an interim ISR to Satisfactory . C. Rational for Change This change will enable the Project to finalize the disbursement of committed amounts under the existing credit. The funds being reallocated were not used under the PPF, but reverted back to the Project with effectiveness. To complete that process, the funds would need to be allocated to the Project main category. II. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed The World Bank Private Sector Rehabilitation & Agribusiness Development () IDA-54640- GDS,WKS,NCS,C 001 S,IK CG,OP,TR, 4,540,000.00 4,477,833.22 5,209,872.50 100.00 100.00 Currency: part A. XDR CS (excl.audit)part 90,000.00 0.00 90,000.00 100.00 100.00 A.3 PPF 670,000.00 127.50 127.50 REFINANCING Total 5,300,000.00 4,477,960.72 5,300,000.00