Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF RURAL HEALTH PROJECT LOAN 7551-CN June 24, 2008 TO THE PEOPLE S REPUBLIC OF CHINA July 27, 2012 Report No: 70952-CN
ABBREVIATIONS AND ACRONYMS Regional Vice President: Country Director: Sector Manager / Director: Task Team Leader: Pamela Cox Klaus Rohland Toomas Palu/Xiaoqing Yu Hope C. Phillips Volker
CHINA RURAL HEALTH PROJECT P084437 CONTENTS Page A. SUMMARY... 1 B. PROJECT STATUS... 1 C. PROPOSED CHANGES... 1 ANNEX 1... 2
CHINA RURAL HEALTH PROJECT P084437 LOAN 7551-CN Restructuring Paper A. SUMMARY 1. This restructuring involves reallocation of proceeds of the Loan, including the addition of a category per Province/Municipality, comprising the original two sub-categories for each Province/Municipality, which contains the balance of funds available for each Province/Municipality. The original allocation to the Provinces/Municipality is not being reduced; additional funds are being moved from the Unallocated Category to selected Provinces/Municipality. This will allow for flexibility in expenditure of funds and remove the possibility of any future need for reallocation among the sub-categories for the Provinces/Municipality. B. PROJECT STATUS 2. The China Rural Health was approved on June 24, 2008, signed on October 8, 2008, and became effective on December 31, 2008; its original (and current) closing date is December 31, 2013. A reallocation from the unallocated category to well performing Provinces/Municipality was approved on March 31, 2011. The, from a US$50 million Loan, was co-financed by a DFID Grant (TF092893) of approximately US$5.9 million, which closed on March 31, 2011. Progress towards achievement of development objectives and overall implementation progress is rated Satisfactory. The Loan is currently 55 percent disbursed; this is primarily due to the utilization of the DFID Grant for activities with a view to completing that source of financing prior to its closing; this was accomplished. C. PROPOSED CHANGES 3. This restructure makes no changes to the s Development Objectives, Results/Indicators, Components, Institutional Arrangements, Financial Management, Procurement, Closing Date or Implementation Schedule. The proposed reallocation and addition of a single disbursement category does not affect the safeguard category. 4. Financing. A reallocation is being carried out in order to provide funds to designated Provinces/Municipality in recognition of their performance under the. These funds are being made available from the unallocated category. Given the difficulty in pre-determining under which category the selected Province/Municipality might use these funds, it is proposed that a new (single) category be created for each Province/Municipality which encompasses all activities currently described in two sub-categories; it is necessary to retain the original categories since disbursements have already been made. Please note that the proposed reallocation amounts vary from Government s request since the data used in Government s request is more than four months old; the possible need for such change is identified in the reallocation table attached to Government s request. 1
ANNEX 1: REALLOCATION OF LOAN PROCEEDS Category of Expenditure Allocation % of Financing Current Revised Current Revised Current Revised (1) For MOH, goods, training, and 2,150,191 2,150,191.00 (2) For Chongqing Municipality: (a) Block Grants 5,697,315 2,722,951.04 and (3) For Gansu Province: 100% after DFID End Date 696,332 176,127.14 30% until DFID, and Goods, 3,694,568.82 100% (a) Block Grants 4,641,088 2,783,745.58 and 310,032 72,429.97 30% until DFID, and Goods, 2,294,944.45 100% 2
Category of Expenditure Allocation % of Financing Current Revised Current Revised Current Revised (4) For Heilongjiang Province: (a) Block Grants 3,742,162 732,811.13 and (5) For Henan Province: 145,168 169,993.14 30% until DFID, and Goods, 3,184,525.73 100% (a) Block Grants 8,756,243 3,783,279.76 and 807,328 426,176.98 30% until DFID, and Goods, 5,754,114.26 100% 3
Category of Expenditure Allocation % of Financing (6) For Jiangsu Province: Current Revised Current Revised Current Revised (a) Block Grants 6,294,503 2,316,174.51 and (7) For Qinghai Province: 716,015 364,827.12 30% until DFID, and Goods, 4,629,516.37 100% (a) Block Grants 3,649,876 1,010,548.41 and 263,242 170,068.97 30% until DFID, and Goods, 2,932,500.62 100%
Category of Expenditure Allocation % of Financing Current Revised Current Revised Current Revised (8) For Shaanxi Province: (a) Block Grants 5,601,474 3,092,716.17 and (9) For Shanxi Province: 750,518 106,030.63 30% until DFID, and Goods, 3,453,245.20 100% (a) Block Grants 3,614,975 487,823.32 and 138,538 127,134.11 30% until DFID, and Goods, 3,238,555.57 100% (10) UNALLOCATED 1,900,000 0 (11) FRONT END FEE 125,000 125,000 Total Amount 50,000,000 50,000,000 Amount payable pursuant to Section 2.04 of this Agreement in accordance with Section 2.07 of the General Conditions