The objective of the Third National Solidarity Program Project is to build, strengthen, and maintain Community Development Councils (CDCs) as effective institutions for local governance and social-economic development. In response to a request from the Government of Islamic Republic of Afghanistan (GoIRA) dated October 12th 2015, this paper proposes a level two restructuring of the Third National Solidarity Project (NSP III). The restructuring will: (i) reduce the number of Block Grants provided to CDCs under NSPIII; (ii) establish a new grant scheme (linked to the ongoing Block Grant scheme) to channel funds to participating CDCs as Maintenance Cash Grants (MCG) for the purpose of assisting CDCs with the maintenance of the infrastructure sub-projects executed under the block grants; (iii) strengthen the institutional capacity of MRRD’s Project Implementation Unit the National Solidarity Program (NSP) and its Provincial Management Units (PMUs) to carry out project activities such as technical support to CDCs for maintenance activities and continue the remaining work of Facilitating partners who have withdrawn from communities for security reasons; (iv) utilize existing funds to support the activities under the first phase of the reform process under the Change Management Program of MRRD which will strengthen the institutional capacity of MRRD to carry out its mandate; (v) extend the Project’s closing date of the Afghanistan Reconstruction Trust Fund (ARTF) Grant (TF098459) so that all ongoing activities under NSPIII will be able to be completed and documented by March 31st 2017 and; (vi) amend the definition of Incremental Operating Costs (IOC) to include international travel.