Indonesia - School Operational Assistance (BOS) Knowledge Improvement for Transparency and Accountability Project : restructuring (Vol. 1 of 2) : Main report

 Document of The World Bank FOR OFFICIAL USE ONLY Report No: 65452 v1 _______-ID RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDONESIA - BOS KNOWLEDGE IMPROVEMENT FOR TRANSPARENCY AND ACCOUNTABILITY PROJECT LOAN 7906-ID April 23, 2010 TO THE REPUBLIC OF INDONESIA November 1, 2011 Human Development Sector Unit East Asia and Pacific Region  CURRENCY EQUIVALENTS (Exchange Rate Effective November 1, 2011) Currency Unit = Indonesian Rupiah (IDR) US$ 1 = IDR 8,869 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS BOS Bantuan Operasional Sekolah (School Operational Assistance) BOS-KITA School Operational Assistance - Knowledge Improvement for Transparency and Accountability GoI Government of Indonesia IG Inspectorate General - (Internal Auditor) ISR Implementation Status and Results Report MoF Ministry of Finance MoNE Ministry of National Education SBM School Based Management Vice President: James W. Adams Country Manager/Director: Stefan G. Koeberle Sector Director: Emmanuel Y. Jimenez Sector Manager: Luis Benveniste Task Team Leader: Ratna Kesuma  INDONESIA INDONESIA - BOS KNOWLEDGE IMPROVEMENT FOR TRANSPARENCY AND ACCOUNTABILITY P107661 CONTENTS Page I. Introductory Statement............................................................................................ 3 II. Background and Reasons for Restructuring............................................................ 3 III. Proposed Change to the Grant Agreement and Rationale....................................... 5 IV. Analysis................................................................................................................... 5 V. Expected Outcomes................................................................................................. 6 VI. Benefits and Risks................................................................................................... 6 1 DATA SHEET Date: November 1, 2011 Task Team Leader: Ratna Kesuma Country: Republic of Indonesia Sector Director: Emmanuel Y. Jimenez Project Name: BOS Knowledge Improvement for Sector Manager: Luis Benveniste Transparency and Accountability Country Director: Stefan G. Koeberle Project ID: P107661 Environmental Category: C Recipient: Republic of Indonesia Responsible agency: Ministry of National Education, Directorate General Management of Basic Education, Jl. Jend. Sudirman, Senayan E Bldg. 5th Floor, Indonesia Phone: (62-21)572-5057; Fax (62-21) 572-5606 Revised estimated disbursements (Bank FY/USD) FY 2010 2011 2012 Annual 177,897,468 322,102,532 0 Cumulative 177,897,468 500,000,000 500,000,000 Current closing date: 12/31/2012 Revised closing date: 12/31/2012 Indicate if the restructuring is: CD approved X Does the restructured project require any exceptions to __ Yes X No Bank policies? Revised project development objective/outcomes: No revision is proposed to the project development objectives and outcome indicators. Does the restructured project trigger any new safeguard policies? No Revised Financing Plan (USD) Source Local Foreign Total Recipient 500,000,000 - 500,000,000 2 I. Introductory Statement a. This Project Restructuring Paper seeks the approval of the Country Director for a Level 2 amendment to the Indonesia: BOS-KITA AF. b. The amendment proposed by MoF is to Section IV. A2 of the Loan Agreement to reflect changes in the Bank portion resulting in the Bank disbursing 100% of BOS grants financed in 2011 instead of the currently specified 40%. c. The proposed amendment does not change Project Development Objectives, Outcome Indicators or Safeguard status and falls under the category of minor restructuring. II. Background and Reasons for Restructuring a. Background: The original US$600 million specific investment loan for BOS- KITA became effective on November 11, 2008. It was supplemented with Additional Financing through another specific investment loan of US$500 million, which became effective on October 21, 2010. The second loan was designed to facilitate activities to help “scale-up