The development objective of the Municipal Infrastructure Development Project for Tajikistan is to improve the availability, quality and efficiency of delivery of basic municipal services to the population of the towns which participate in the project. This Paper seeks the approval of the Country Director for a second level restructuring to extend the closing date of the project. The implementation performance and the outcome outlook of the project are satisfactory. The project is currently completing its third investment phase. Since the last supervision mission in November 2011, disbursements under the Municipal Infrastructure Development Project (MIDP) have continued to progress, with a current actual disbursed balance of USD 15.1 million, or approximately 91.5 percent of total funding. The procurement performance is satisfactory. The overall financial management arrangements are considered moderately satisfactory and acceptable to the Bank. The FY2010 audit report was found to be satisfactory to the Bank. The Project Management Unit (PMU) submits quarterly Financial Management Reports (FMRs) on time and they are satisfactory to the Bank. The achievement of the Project Development Objective (PDO) is highly likely given the fact that many of the outcome indicators have already been met. This will be the second extension of the project. In July 11, 2011 the project was restructured in first level which consisted of: (1) re-allocation of the grant proceeds; (2) trigger of a new safeguard policy on involuntary resettlement; and (3) extension of the closing date of the project from August 31, 2011 to February 28, 2012.