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:
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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:
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1
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.
The MOP is not required for disclosure under the Bank’s current Disclosure Policy.
2
STRUCTURE OF THE PROJECT PAPER
1. Memorandum of the President
2. Data Sheet
3. Introductory Statement
4. Background and Reasons for Restructuring
5. Proposed Changes
6. Analysis
7. Expected Outcomes
8. Benefits and Risks
3
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]
4
DATA SHEET TEMPLATE FOR
PROJECT PAPER
Date:
Task Team Leader:
Country:
Sector Manager/Director:
Project Name::
Country Director:
Project ID:
Environmental category:
Borrower:
Responsible agency:
Revised estimated disbursements (Bank FY/US$m)
FY
Annual
Cumulative
Current closing date:
Revised closing date [if applicable]:
Does the restructured project require any exceptions to Bank policies?
Have these been approved by Bank management?
Is approval for any policy exception sought from the Board?
○ Yes
○ Yes
○ Yes
○ No
○ No
○ No
Revised project development objective/outcomes [If applicable]
Does the restructured project trigger any new safeguard policies? If so, click here to
indicate which one(s) [selection box like the one in the new ISR]
Source
Revised Financing Plan (US$m.)
Local
Foreign
Borrower
IBRD/IDA
Others
Total
5
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
1. Memorandum
of the
President
2. Data Sheet
3. Introductory
Statement
4. Background
and Reasons
for
Restructuring
Expected Questions to be Answered in Each
Section
See sample MOP
See Data Sheet
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].
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,
6
Suggested
Length
½ to 1 page
1 page
¼ to ½ page
1 to 1½
pages
5. Proposed
Changes
6. Analysis
7. Expected
Outcomes
8. Benefits and
Risks
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.
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?
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.
a. Will the proposed changes affect the project’s
DOs, outcome targets, or outcome indicators? If
so, how? What new indicators will be monitored?
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?
7
1 to 2 pages
¾ to 1 page
¼ to ½ page
½ page
GUIDELINES ON PROCESSING THE PROJECT PAPER
Step
Identification and
Approval of Initial
Proposal
Drafting of PP and
legal amendment
Internal review of
draft PP and
amendments
Project Information
Document
Agreement on PP
and legal
amendments with
Borrower
Finalize Board
Package (or RVP
approved Package)
Approval and
subsequent signing
Guidelines
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.
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.
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.
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.
The TL finalizes the PP and any legal
amendments with the lawyer, and reaches
agreement on these with the Borrower.
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 RVPapproved case).
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.
8
Primary
Responsibility
Task team
leader
Task team
Leader
Lawyer
Task team
Leader
Task team
Leader
Task team
Leader
Lawyer
Task team
Leader
CD
RVP / CD
Task team
Leader
Lawyer