The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

REPORT NO.: RES31045

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF

BD IDENTIFICATION SYSTEM FOR ENHANCING ACCESS TO SERVICES (IDEA) PROJECT

APPROVED ON MAY 10, 2011

TO

PEOPLE’S REPUBLIC OF BANGLADESH

GOVERNANCE GLOBAL PRACTICE (GGODR)SOUTH ASIA REGION

Regional Vice President: Annette Dixon Country Director: Qimiao Fan

Senior Global Practice Director: Deborah L. WetzelPractice Manager/Manager: Alexandre Arrobbio

Task Team Leader: Syed Khaled Ahsan

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The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

ABBREVIATIONS AND ACRONYMS

BEC Bangladesh Election CommissionIDA International Development AssociationIDEA Identification System for Enhancing Access to ServicesNID National Identification SystemPDO Project Development ObjectiveSDR Special Drawing RightsUSD United States Dollar

The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.

BASIC DATA

Product Information

Project ID Financing Instrument

P121528 Investment Project Financing

Original EA Category Current EA Category

Not Required (C) Not Required (C)

Approval Date Current Closing Date

10-May-2011 31-Dec-2017

Organizations

Borrower Responsible Agency

Economic Relations Division Election Commission Secretariat

Project Development Objective (PDO)

Original PDOEstablish a secure, accurate and reliable national ID system that serves as the basis for more efficient and transparent service deliveryOPS_TABLE_PDO_CURRENTPDOSummary Status of Financing

Ln/Cr/Tf Approval Signing Effectiveness ClosingNet

Commitment Disbursed Undisbursed

IDA-49380 10-May-2011 21-Jul-2011 28-Aug-2011 31-Dec-2017 195.00 113.19 60.64

Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?Yes

The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

Explanation

Section III, paragraph 50 of the Bank Directive, “Investment Project Financing” issued and effective on November 10, 2017 states in pertinent part that a Closing Date may be extended if the following requirements are met: (a) the Project Development Objectives (PDO) remain achievable, (b) the performance of the Borrower or Project Participant remains satisfactory, and (c) the Bank and the Borrower or Project Participant agree on actions that will be undertaken to complete the Project. The task team has requested for a waiver for the above-mentioned requirements as these are unlikely to be met by the Project Closing Date.Has the waiver(s) been endorsed or approved by Bank Management?

YesExplanation

Extension request waiver has been approved by the OPCS VP.

Note to Task Teams: End of system generated content, document is editable from here.

I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

Bangladesh IDEA Project was approved by the World Bank Board on May 10, 2011 and the Credit was declared effective on August 28, 2011. The current closing date is December 31, 2017. The Project aims to establish a secure, accurate, and reliable national identification (NID) system in Bangladesh to serve as the basis for more efficient and transparent service delivery.

The Project has two PDO indicators. Indicator 1: At least 80 million citizens are issued secure NID cards and a reliable verification system is in place. The progress towards achieving this indicator has been slow, but lately significant progress was made in setting up the requisite systems and capacities for personalization of the smart NID cards. Around 26 million cards (32.5 percent of the target) would be personalized by the current Project closing date. A significant part of the total effort needed to achieve this objective has already been deployed. With the current pace, the target number of 80 million cards will be delivered within one year of the Project closing date. Nevertheless, there is a reliable verification system in place and being effectively used. Indicator 2: At least two public and two private agencies use NID system to verify client beneficiary identity. Achievement of this indicator exceeded the target, and the assessed impact is significant. At present, 82 agencies (15 public agencies and 67 private) are using the NID system to verify/authenticate beneficiary identity. Also, the Bangladesh Election Commission (BEC) has earned by now over USD11 million revenue for the treasury.

Acceptable financial reports were submitted regularly during the project implementation and annual audit was conducted. The most recent audited financial statements for FY17 were also received, within the due date, on December 21, 2017. This audit report highlights some procedural issues to be resolved.

The Project Closing Date is being extended to allow for management of few significant activities under the Project. At the same time USD24,957,940.91 (equivalent to SDR 17,641,362) of unutilized funds are being cancelled. The disbursement deadline date

The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

would be June 30, 2018. Cancellation is effective December 14, 2017, the date of receipt of the borrower’s request. The proposed allocation in the withdrawal table is following consultation with BEC.

II. DESCRIPTION OF PROPOSED CHANGES

The Project Closing Date is being extended from December 31, 2017 to February 28, 2018 to allow for management of few significant activities under the Project. At the same time USD24,957,940.91 (equivalent to SDR 17,641,362) of unutilized funds are being cancelled.

Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.

III. SUMMARY OF CHANGES

Changed Not Changed

Change in Loan Closing Date(s) ✔

Cancellations Proposed ✔

Reallocation between Disbursement Categories ✔

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 Disbursements Arrangements ✔

Change in Disbursement Estimates ✔

Change in Overall Risk Rating ✔

Change in Safeguard Policies Triggered ✔

Change of EA category ✔

Change in Legal Covenants ✔

The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

Change in Institutional Arrangements ✔

Change in Financial Management ✔

Change in Procurement ✔

Change in Implementation Schedule ✔

Other Change(s) ✔

Change in Economic and Financial Analysis ✔

Change in Technical Analysis ✔

Change in Social Analysis ✔

Change in Environmental Analysis ✔

IV. DETAILED CHANGE(S)

OPS_DETAILEDCHANGES_LOANCLOSING_TABLE

LOAN CLOSING DATE(S)

Ln/Cr/Tf StatusOriginal Closing

Revised Closing(s)

Proposed Closing

Proposed Deadline for Withdrawal

Applications

IDA-49380 Effective 30-Jun-2016 31-Dec-2017 28-Feb-2018 28-Jun-2018

OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE

CANCELLATIONS

Ln/Cr/Tf Status Currency Current Amount

Cancellation Amount

Value Date of

Cancellation

New Amount

Reason for

Cancellation

IDA-49380-001

Disbursing XDR 123,000,000.0

0 17,641,362.00 14-Dec-2017 105,358,638.00

UNDISBURSED BALANCE

AT CLOSING

OPS_DETAILEDCHANGES_REALLOCATION _TABLE

REALLOCATION BETWEEN DISBURSEMENT CATEGORIES

Current Allocation Actuals + Committed Proposed Allocation Financing %(Type Total)

Current Proposed

IDA-49380-001 | Currency: XDR

The World BankBD Identification System for Enhancing Access to Services (IDEA) Project (P121528)

iLap Category Sequence No: 1A Current Expenditure Category: GDS,WRKS,NON-CS,CS, TRNG PARTS

27,385,000.00 21,092,271.30 21,680,865.00 100.00 100.00

iLap Category Sequence No: 1B Current Expenditure Category: GDS,WRKS,NON-CS,CS, TRNG PART 2E

71,795,000.00 65,171,345.19 65,944,617.00 100.00 100.00

iLap Category Sequence No: 1C Current Expenditure Category: TAXES FOR GDS, NCS,CS AND TRG FOR P

10,450,000.00 0.00 8,421,052.00 100.00 100.00

iLap Category Sequence No: 2 Current Expenditure Category: OPERATING COSTS

13,370,000.00 2,675,592.63 9,312,104.00 100.00 100.00

Total 123,000,000.00 88,939,209.12 105,358,638.00

Note to Task Teams: End of system generated content, document is editable from here.