PROJECT RESTRUCTURING

FOR BOARD AND RVP APPROVAL

TEMPLATE FOR PROJECT PAPER (PP)

Operations Policy and Country Services

This template contains the following sections:

Rationale, objectives, and key features

Structure of the Project Paper

Standard format for the Memorandum of the President (cover memo for PP)

Template for the Project Paper Data Sheet

Content and Sections of the PP

Processing steps for the Project Paper

Note: The PP is to be used pending final approval of a revised policy on project restructurings.

RATIONALE, OBJECTIVES, AND KEY FEATURES

The new Project Paper (PP) is part of Management’s initiative to modernize and simplify documentation for investment lending. The initiative encompasses the PP as well as the Project Concept Note and streamlined Project Appraisal Document (PAD) introduced in FY03, the conversion of the old Project Status Report into the simplified Implementation Status and Results Report (ISR), and the forthcoming modernization of the Implementation Completion Report (ICR).

The PP is being introduced to standardize the documentation for Board decisions on matters that call for a simpler document than a full PAD or Program Document. This PP is to be used for Board approval of project restructuring.

In the past such matters were documented in a full Memorandum of the President (MOP). The information that was contained in the MOP should now be set out in a concise PP, which, in line with the requirements of the disclosure policy, would be disclosed in the same manner as a PAD. Under the new system, the MOP would serve as a transmittal memo for the PP and a document to inform the Board on issues that the Borrower wishes not to make available for public disclosure. [1]

Until now there has been no standard format for documentation on project restructurings. The MOPs used for these purposes have varied widely in coverage, quality, and length. The new PP will provide for a consistent but concise presentation of restructuring proposals, complete with the background, rationale, analysis, benefits, and risks. It will thus be easier to prepare and to read and will provide a more robust basis for subsequent monitoring and evaluation.

In summary, the new PP has the following objectives:

·  To improve the quality and consistency of the documentation.

·  To make the PPs shorter and easier to prepare.

·  To strengthen the guidance role and accountability of managers.

·  To improve the PPs’ usefulness as the basis for the associated legal amendments.

Its key features are:

·  It is short—the main text should not exceed six pages in 12-point ‘times roman’ font.

·  It follows a prescribed format so as to present a concise, coherent “story line”.

·  It is publicly disclosed.

STRUCTURE OF THE PROJECT PAPER

  1. Memorandum of the President
  1. Data Sheet
  1. Introductory Statement
  1. Background and Reasons for Restructuring
  1. Proposed Changes
  1. Analysis
  1. Expected Outcomes
  1. Benefits and Risks

Standard Format for Cover MOP

for Project Restructuring

MEMORANDUM AND RECOMMENDATION OF

THE PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

[INTERNATIONAL DEVELOPMENT ASSOCIATION]

TO THE EXECUTIVE DIRECTORS

ON A PROPOSAL TO RESTRUCTURE

THE [NAME OF PROJECT] [LOAN/CREDIT NO.]

FOR [NAME OF COUNTRY]

1. I submit for your approval a proposal to restructure the [Name of Project] [Loan/Credit No.] for the [Name of Country].

2. The proposed restructuring would support … [briefly summarize the reasons for the changes, the major modifications being proposed, and any changes to the project’s development objectives and associated outcomes].

3. [If applicable, explain any relevant matters that the Borrower has requested not to be disclosed in the Project Paper].

4. Recommendation. I am satisfied that the proposed restructuring of the [Country] [ Name of Project] [Loan/Credit No.] would comply with the Articles of Agreement of the [Bank/Association]. I recommend that the Executive Directors approve this proposal in accordance with the terms of this Memorandum and attached Project Paper. Upon approval, the [Loan/Credit] Agreement will be amended accordingly.

[Name]

President

By [Name]

Washington DC

[Date]

DATA SHEET TEMPLATE FOR

PROJECT PAPER

Date:
Country:
Project Name::
Project ID: / Task Team Leader:
Sector Manager/Director:
Country Director:
Environmental category:
Borrower:
Responsible agency:
Revised estimated disbursements (Bank FY/US$m)
FY
Annual
Cumulative
Current closing date:
Revised closing date [if applicable]:
Does the restructured project require any exceptions to Bank policies?
Have these been approved by Bank management?
Is approval for any policy exception sought from the Board? / ○ Yes ○ No
○ Yes ○ No
○ Yes ○ No
Revised project development objective/outcomes [If applicable]
Does the restructured project trigger any new safeguard policies? If so, click here to indicate which one(s) [selection box like the one in the new ISR]
Revised Financing Plan (US$m.)
Source / Local / Foreign / Total
Borrower
IBRD/IDA
Others
Total


GUIDELINES FOR THE CONTENT AND STRUCTURE

OF THE PROJECT PAPER (PP)

Length: The PP should not exceed the equivalent word count of six pages in 12 point, single-spaced text, excluding the MOP and Data Sheet. The outline below suggests length ranges for each section.

Content: Document preparers should follow the format and include all sections, but the text should be adapted to the specific circumstances of the project. The center column presents “expected” questions to be answered in each section.

Section Name /

Expected Questions to be Answered in Each Section

/ Suggested Length
1.  Memorandum of the President / See sample MOP / ½ to 1 page
2.  Data Sheet / See Data Sheet / 1 page
3.  Introductory Statement / Use the following standard text and add the required information:
This Project Paper seeks the approval of the Executive Directors to introduce the following changes in the [Country], [Project Name], [Loan/Credit No], [Project ID] and any accompanying amendments to the project’s legal documents. The proposed changes … [very briefly summarize the reasons for the changes, the major modifications being proposed, and the expected outcomes from the restructured project]. / ¼ to ½ page
4.  Background and Reasons for Restructuring / a.  When was the project approved and when did it become effective? What were the project’s original objectives, design, and scope?
b.  How has the project performed to date with regard to its DOs, related outcomes, project outputs, and implementation? (refer to PSRs/ISRs & other sources)
c.  What are the reasons for the project restructuring?
§  Project has had some difficulties, but with proposed changes the uncommitted funds can be put to productive use and achieve relevant outcomes.
§  Project is performing satisfactorily, but its outcomes would be enhanced through restructuring.
§  Uncommitted funds need to be re-programmed for an emergency response—if this is the case, how will the original project’s objectives, scope, and outcomes be affected?
Also discuss the following if they apply: (i) country context, (ii) foreseen risk factors, (iii) sector policy or strategy, (iv) unforeseen events, (v) co-financing, (vi) institutional or capacity issues, (vii) project design, or (viii) other issues. / 1 to 1½ pages
5.  Proposed Changes / a.  What are the proposed changes, as applicable, in the project’s development objectives, outcomes, design, and/or scope?
b.  What are the other complementary changes, as applicable: (i) institutional arrangements, (ii) financing mechanism / conduit, (iii) outputs, (iv) project costs and financing plan (include summary tables), (v) financial management, (vi) disbursement arrangements, (vii) procurement, (viii) closing date, (ix) implementation schedule? / 1 to 2 pages
6.  Analysis / a.  Do any of the proposed changes have a major effect on the original economic, financial, technical, institutional, or social aspects of the project as appraised? If so, how are the changes justified?
b.  Do any of the proposed changes raise the environmental category of the project or trigger new safeguard policies? If so, how will these impacts be addressed?
c.  Does the restructuring involve any exceptions to Bank polices? If so, explain. / ¾ to 1 page
7.  Expected Outcomes / a.  Will the proposed changes affect the project’s DOs, outcome targets, or outcome indicators? If so, how? What new indicators will be monitored? / ¼ to ½ page
8.  Benefits and Risks / a.  Are there risks that could jeopardize the achievement of the restructured project DOs or outcome targets, including but not limited to political, policy-related, social/stakeholder-related, macro-economic, financial, institutional, or capacity-related?
b.  How would such risks be mitigated? / ½ page

GUIDELINES ON PROCESSING THE PROJECT PAPER

Step / Guidelines / Primary Responsibility
Identification and Approval of Initial Proposal / Restructuring proposal is identified during supervision. Task team Leader (TL) prepares proposal in memo to Country Director (CD) reflecting Borrower’s agreement. CD approves initial proposal. / Task team leader
Drafting of PP and legal amendment / The PP Data Sheet is completed on the Operations Portal. The Project Paper (PP) is drafted and filed on the Portal. The lawyer reviews the PP and drafts amendment to the legal agreement. / Task team Leader
Lawyer
Internal review of draft PP and amendments / TL circulates draft PP and amended legal documents to SM and CD (copied to key staff, e.g.: FMS, LOA, Procurement, Safeguards) for comments, feedback, clearance, and authorization to complete processing. / Task team Leader
Project Information Document / TL revises the PID and ISDS (if applicable). Sector Manager clears and TL sends PID to InfoShop. Any additional changes to these documents are to be updated as they occur. / Task team Leader
Agreement on PP and legal amendments with Borrower / The TL finalizes the PP and any legal amendments with the lawyer, and reaches agreement on these with the Borrower. / Task team Leader
Lawyer
Finalize Board Package (or RVP approved Package) / The TL prepares the PP package consisting of: the PP, the amendment letter, and covering MOP (MOP for Board cases only). The package is submitted through the CD, to the RVP for clearance (or for approval if RVP-approved case). / Task team Leader
CD
Approval and subsequent signing / For Board consideration, the RVP submits the Board package to SECBO for Board approval under the “absence of objection” procedure. Following confirmation of Board Approval (or alternatively, RVP approval), standard procedures are used to sign/countersign the legal amendment. / RVP / CD
Task team Leader
Lawyer

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[1] The MOP is not required for disclosure under the Bank’s current Disclosure Policy.