RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING CENTRAL ASIA SOUTH ASIA ELECTRICITY TRANSMISSION AND TRADE PROJECT (CASA-1000)
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1 Public Disclosure Authorized The World Bank REPORT NO.: RES29565 RESTRUCTURING PAPER Public Disclosure Authorized ON A PROPOSED PROJECT RESTRUCTURING OF CENTRAL ASIA SOUTH ASIA ELECTRICITY TRANSMISSION AND TRADE PROJECT (CASA-1000) APPROVED ON MARCH 27, 2014 TO ISLAMIC REPUBLIC OF AFGHANISTAN Public Disclosure Authorized ENERGY & EXTRACTIVES SOUTH ASIA Public Disclosure Authorized Regional Vice President: Country Director: Senior Global Practice Director: Practice Manager/Manager: Task Team Leader: Ethel Sennhauser Shubham Chaudhuri Riccardo Puliti Demetrios Papathanasiou Husam Mohamed Beides, Anh Nguyet Pham, Takhmina Mukhamedova
2 ABBREVIATIONS AND ACRONYMS ARTF CSP DABS PIU Afghanistan Reconstruction Trust Fund Community Support Program Da Afghanistan Breshna Sherkat of Afghanistan Project Implementing Unit
3 BASIC DATA Product Information Project ID P Original EA Category Full Assessment (A) Approval Date 27-Mar-2014 Financing Instrument Investment Project Financing Current EA Category Full Assessment (A) Current Closing Date 30-Jun-2020 Organizations Borrower Islamic Republic of Afghanistan,Ministry of Finance,Islamic Republic of Pakistan,Kyrgyz Republic Responsible Agency Da Afghanistan Breshna Sherkat,National Electric Grid of Kyrgyzstan,Barki Tajik,National Transmission and Despatch Company (NTDC) Project Development Objective (PDO) Original PDO The objective of the project is to create the conditions for sustainable electricity trade between the Central Asian countries oftajikistan and Kyrgyz Republic and the South Asian countries of Afghanistan and Pakistan. Summary Status of Financing Ln/Cr/Tf Approval Signing Effectiveness Closing Net Commitment Disbursed Undisbursed IDA Mar May Jun IDA Mar Apr Jan Jun IDA-H Mar Apr Jan Jun IDA-H Mar Apr Jun IDA-H Mar Apr Jan Jun TF-A Sep Sep Dec Jun
4 TF-A Sep Jun TF-A Aug Aug Aug Jun TF Jul Jul Nov Jun TF Jul Aug Nov Jun Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This restructuring in the form of amendment is to the Financing Agreement between the International Development Association (IDA) and Islamic Republic of Afghanistan (the Recipient) (Grant No H927-AF, hereinafter Financing Agreement), signed on April 24, 2015, for the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000, P145054). 2. The CASA-1000 Project was approved on March 27, 2014 and became effective on January 24, In Afghanistan, all three components under the Project have been making progress. Under Part A-(Construction of High Voltage Transmission Infrastructure), three contracts for the HVDC line in Afghanistan were signed on December 11, Survey and design activities under the initial phase of the contracts are underway. Under Part B-Technical Assistance and Project Implementation Support- Da Afghanistan Breshna Sherkat of Afghanistan (DABS), the project implementing entity has set up a CASA Project Implementing Unit (CASA PIU). CASA PIU has been instrumental in the on-going preparation of the country specific ESIA and selection of consultant to support the Resettlement Action Planning for the HVDC line. The CASA PIU has been also coordinating its work closely with the Ministry of Rural Rehabilitation and Rural Development which is implementing the CASA Community Support Program (CSP) supported by the CASA-1000 Community Support Program Project (P149410) funded by a US $40million grant financing from the Afghanistan Reconstruction Trust Fund (ARTF). However, since effectiveness of the CASA Project and the closing of the Project Preparation Grant (PPG), no disbursement has been made for the consultant services and eligible expenditure under Part B due to the lack of clarity in regard to the condition of disbursement in the Financing Agreement as described below 3. The amendment is to introduce a definition of Project Management Firm which was not defined in the Financing Agreement. This will allow the Recipient to meet the condition of disbursement for eligible expenditures under Part B (Technical Assistance and Project Implementation Support) of the Project and hence to use the project funds for pending project eligible expenditure. The request for the proposed amendment dated March 31, 2018 was received from Ministry of Finance, Afghanistan.
5 II. DESCRIPTION OF PROPOSED CHANGES 4. The Section IV.B.1(b) of Schedule 2 to the Financing Agreement stipulates that no withdrawal of funds under the Category (2) of the Project shall be made unless a Project Management Firm has been selected in accordance with the provisions of paragraph C of Section III of Schedule 2 of the Financing Agreement. Category (2) covers goods, nonconsulting services, consultants services, training and workshops and Incremental Operating Costs for Part B of the Project. The Financing Agreement does not include a definition of the term Project Management Firm. 5. This condition of disbursement was to ensure that DABS has sufficient management support before launching project implementation. Due to a lack of clarity regarding the term Project Management Firm in the Financing Agreement, it was agreed between the Bank Team and DABS, that DABS had the option to select either a firm, or a group of individual consultants for the project management support. DABS decided to choose the latter approach. At present, a team of such consultants has been put in place within the CASA PIU. 6. To allow for disbursing of funds and to enhance the implementation of the CASA-1000 Project, the Ministry of Finance in its letter dated March 31st, 2018 requested the World Bank to add in the Financing Agreement a definition of the term Project Management Firm. It is proposed to include the following definition in Section I of the Appendix to the Financing Agreement: Project Management Firm means a firm or group of individual consultants selected to support the Project Implementing Entity to implement the Project, referred to in Section IV.B.1(b) of Schedule 2 to the Financing Agreement. III. SUMMARY OF CHANGES Changed Other Change(s) Not Changed Change in Implementing Agency Change in DDO Status Change in Project's Development Objectives Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Cancellations Proposed
6 Reallocation between Disbursement Categories Change in Disbursements Arrangements Change in Disbursement Estimates Change in Overall Risk Rating Change in Safeguard Policies Triggered Change of EA category Change in Legal Covenants Change in Institutional Arrangements Change in Financial Management Change in Procurement Change in Implementation Schedule Change in Economic and Financial Analysis Change in Technical Analysis Change in Social Analysis Change in Environmental Analysis IV. DETAILED CHANGE(S)
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