Disclosable Restructuring Paper - Social Safety Net Project - P149323

The objective of the Social Safety Net Project for Madagascar is to support the government in increasing the access of extremely poor households to safety net services and in laying the foundations for a social protection system. The purpose of this level two restructuring is to propose a reallocation of funds between disbursement categories. No components or sub-components are being dropped or substantially revised. Mechanisms for safeguards, institutional arrangements, procurement and financial management will remain the same. The restructuring will ensure continuity and completion of the delivery of cash transfers and livelihood recovery grants within the period of the project which requires additional resources given the better than expected performance to date on the front lines of the program. Components 1 and 2 require additional funding from the first quarter of 2019 to allow the Human Development Cash Transfer and the Productive Safety Net Program to close in August and June 2019, respectively. These needs can be covered by reallocation from the Project Preparation Facility (PPF) and from underutilized funds under component 3. This reallocation of funds focuses support to activities which have proven to be most relevant given the early project experience, and which can be fully implemented under the existing credit and in the remaining project time. An additional financing is under consideration, but would not be approved in time to address the current financial needs of the Social Safety Net cash transfer disbursements.