The objective of the First Phase of the Pilot Program for Climate Resilience Project (PPCR) for Bolivia is to seek synergies and to strengthen the climate programs and/or projects being executed or being planned by the recipient. The extension is necessary because the grant implementation suffered significant delays due to institutional changes within the Ministry of Environment and Water. Since grant effectiveness in June 2011, the PNCC, in charge of Grant implementation, has proven unable to implement the activities under the grant agreement. On March 8, a Ministerial Resolution was enacted, which formally created a Project Implementation Unit directly reporting to the Office of the Minister. The grant agreement was amended to reflect those institutional changes. The newly created Project Implementation Unit, or PIU has since been gradually staffed and is in the process of being decentralized. Implementation by a decentralized PIU will expedite the implementation of the program; however, a one year extension of the grant closing date is still necessary to be able to meet the grant objectives, complete the activities foreseen and fully disburse it. The PIU has in place an action plan, satisfactory to the Bank, to complete the grant. There is no overdue audit. This will be the first extension of the project.