Document of The World Bank Report No: 86196-XK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SECOND KOSOVO YOUTH DEVELOPMENT PROJECT (P120021) STATE AND PEACE BUILDING TRUST FUND GRANT NO. TF098547 TO THE REPUBLIC OF KOSOVO March 20, 2014 ABBREVIATIONS AND ACRONYMS GOK Government of Kosovo PDO Project Development Objective KYDP2 Second Kosovo Youth Development Project SDISEE Social Development Initiative for South Eastern Europe SPF State and Peacebuilding Trust Fund USD United States Dollars Regional Vice President: Laura Tuck Country Director: Ellen A. Goldstein Sector Manager / Director: Elisabeth Huybens Task Team Leader: Lola Ibragimova 2 KOSOVO P000755 CONTENTS Page A. SUMMARY ........................................................................................................................... 4 B. PROJECT STATUS ............................................................................................................. 4 C. PROPOSED CHANGES ...................................................................................................... 4 D REALLOCATION OF PROCEEDS AND EXTENSION OF CLOSING DATE .......... 5 3 RESTRUCTURING PAPER A. SUMMARY This level II restructuring seeks reallocation of the unallocated funds (totaling $99,122) and extension of the closing date by 3 months, to June 30, 2014. B. PROJECT STATUS The original SPF grant in the amount of US$2.0 million was signed on March 30, 2011 and became effective on January 17, 2012. The project also included co-financing in the amount of €631,901 from the Government of Italy through a complementary Youth Entrepreneurship and Business Development Grant approved by the Social Development Initiative for South-east Europe (SDISEE) Trust Fund on April 22, 2011. The project development objective of the KYDP2 is: (i) promote social cohesion though inter-ethnic collaboration among young people; and (ii) improve economic opportunities and sustainable access to youth services in Kosovo. The project has performed satisfactorily in PDO achievement and fiduciary ratings. The PDO continues to be achievable. Implementation arrangements under the well performing Department of Youth Project Implementing Unit (PIU) within Kosovo Ministry of Culture, Youth and Sport will not be changed. No changes are envisaged to procurement and financial management arrangements, and current disbursement arrangements apply. No other changes are proposed. The financial audit report was submitted on time and is acceptable to the Bank. Auditor issued clean unmodified audit opinion. The project has disbursed 83% of SPF grant funds and 98% of SDISEE grant funds which closed on December 31, 2012. C. PROPOSED CHANGES The proposed changes include Reallocation of Proceeds and the extension of Closing Date. The reallocation and extension of closing date are necessary in order to: (i) utilize unallocated funds to implement business development and vocational education trainings for marginalized youth, particularly Kosovo Roma youth, and (ii) finalize ongoing project impact evaluation activities. 4 D. REALLOCATION OF PROCEEDS AND EXTENSION OF CLOSING DATE The Bank received the request to reallocate grant proceeds and extend the closing date of the project on January 28, 2014. The proceeds for the KYDP2 will be reallocated as follow: Category of Expenditure Allocation % of Financing Current Revised Current Revised Current Revise All goods, All goods, 978,378 1,007,500 100% 100% consultant consultant services, services, Sub-grants Sub-grants and Training and Training needed to needed to achieve the achieve the Project Project objectives objectives for Parts A, for Parts A, C and D C and D under the under the Project as Project as well as well as Operating Operating Costs for the Costs for the Project Project All goods, All goods, 922,500 992,500 100% 100% consultant consultant services, services, Sub-grants Sub-grants and Training and Training needed to needed to achieve the achieve the Project Project objectives objectives for Part B for Part B under the under the 1 Project Project Unallocated Unallocated 99,122 0 100% Total 2,000,000 2,000,000 1 This Component 2 is co-financed jointly with the Social Development Initiative for South Eastern Europe (SDISEE) Trust Fund. 5 The closing date for the Second Kosovo Youth Development Project will be extended from March 30, 2014 until June 30, 2014. This will be the first extension of grant (TF098547). 6