Ukraine - Social Protection Support Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No: 21553 IMPLEMENTATION COMPLETION REPORT (CPL-40970) ONA LOAN IN THE AMOUNT OF EQUIVALENT TO US$ 2.6 MILLION TO THE UKRAINE FOR A SOCIAL PROTECTION SUPPORT PROJECT DECEMBER 15, 2000 Human Development Sector Unit Europe and Central Asia This document has a restricted distribution and may be used by recipients only in the perfornance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (Exchange Rate Effective November 2000) Currency Unit = Ukrainian Hryvnia (UAH) I UAH = US$ 0.184 US$ I = 5.438 UAH FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy GoU Government of Ukraine UAH Ukrainian Hryvna HMSAP Housing and Municipal Services Allowance Program HSO Housing Subsidies Office LAN Local Area Network MLSP Ministry of Labor and Social Policy MSP Ministry of Social Protection PADCO Planning and Development Collaborative International PIU Project Implementation Unit SPSP Social Protection Support Project UPS Uninterrupted Power Supply USAID United States Agency for International Development Vice President: Johannes Linn Country Manager/Director: Luca Barbone Sector Manager/Director: Michal Rutkowski/Anette Dixon Task Team Leader/Task Manager: Yelena Fadeyeva  FOR OFFICIAL USE ONLY UKRAINE SOCIAL PROTECTION SUPPORT PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 3 5. Major Factors Affecting Implementation and Outcome 5 6. Sustainability 6 7. Bank and Borrower Performance 6 8. Lessons Learned 8 9. Partner Comments 8 10. Additional Information I I Annex 1. Key Performance Indicators/Log Frame Matrix 12 Annex 2. Project Costs and Financing 13 Annex 3. Economic Costs and Benefits 15 Annex 4. Bank Inputs 16 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 17 Annex 6. Ratings of Bank and Borrower Performance 18 Annex 7. List of Supporting Documents 19 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.   Project ID: P045940 Project Name: Social Protection Support Team Leader: Yelena Fadeyeva TL Unit: ECSHD ICR T,vpe: Core ICR Report Date: December 28, 2000 1. Project Data Name: Social Protection Support VIC/TF Number: CPL-40970 Country/Department: UKRAINE Region: Europe and Central Asia Region Sector/subsector: SA - Social Assistance KEY DATES Original Revised/Actual PCD: 05/30/1996 Effective: 10/25/96 12/05/97 Appraisal: 06/28/1996 MTR: 11/16/99 Approval: 09/19/1996 Closing: 06/30/99 06/30/2000 Borrower/Implementing Agency: UKRAINE/MINISTRY OF SOCIAL PROTECTION Other Partners: Ministry of Finance STAFF Current At Appraisal Vice President: Johannes Linn Johannes Linn Country Manager: Luca Barbone Basil Kavalsky Sector Manager: Annette Dixon Thomas Blinkhom Team Leader at ICR: Yelena Fadeyeva Yoshine Uchimura ICR Primary Author: Yelena Fadeyeva; Arvo Kuddo 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: M Bank Performance: S Borrower Performiance: S QAG (if available) ICR Quality at Entry: Project at Risk at Any Time: Yes Project was at risk in lute 1996 - early 1997 due to the delay in the Loan ratification procedure b! the Parliament (Verkhovna Ruda) of Ukraine.  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The objective of the Social Protection Support Project (SPSP) was to improve the administration of the Housing and Municipal Service Allowance Program (HMSAP) by: (a) automating the processing of applications and data in the administrative offices; and (b) piloting a system to electronically link the local HMSAP administrative offices, regional offices and the Ministry of Social Protection and monitor and evaluate the effectiveness of the program. In order to improve cost recovery, in October 1994 the Government of Ukraine issued Decree No. 733 increasing tariffs for housing, water and sewerage, heating and gas. The rapid increase in rents and tariffs for housing was not socially sustainable without special measures to protect the poor who could not afford to pay. Therefore, HMSAP was introduced in February 1995 which allowed families whose monthly payments for housing, utilities, and housing maintenance exceeded 15 % of monthly income to apply for an allowance equal to the difference. The MLSP requested World Bank's assistance in automating the processing of applications and data in the HMSAP administrative offices to cope with the increase in applicants and participants of the program, piloting a system to electronically link local HMSAP offices, regional offices and MLSP, and monitor and evaluate the effectiveness of the program. Particular development objectives of the Project were: a) to improve the administrative efficiency in local HMSAP administrative offices by reducing processing applications from around 30 days in 1996 to less than 2 weeks from receipt of application to notification, and reducing the number of applicants of the allowance from 4,800-5,300 individuals prior to the start of the project to 3,000 per working station; b) to improve information availability and management of HMSAP in pilot regions in Dnepropetrovskaya, Kievskaya, Lvivskaya and Nikolayevskaya oblasts, and the city of Kiev by monitoring program status after installation of equipment, and preparing an evaluation study focusing on regional differences in programn participation rates, levels of housing subsidies, staffmng of offices and their effectiveness. 3.2 Revised Objective: Project Objectives were not revised. 3.3 Original Components: SPSP comprises four components: (a) Automation of Data Processing in HMSAP Administrative Offices (US$ 2.47 million equivalent): Installation of around 800 workstations (monitor, computer and key board) with Uninterrupted Power Supply (UPS) units, around, 500 printers and diskettes and other initial consumables in HMSAP administrative offices nationwide; (b) Management Information System (US$158,000 equivalent): Installation of 5 workstations with UPS, modems with communications software, and initial consumables in MSP; installation of 27 workstations with UPS, modems with communications software, and initial consumables in regional (oblast) HMSAP offices; and installation of 80 modems and communication software in selected local HMSAP administrative offices. (c) Training and Technical Support (US$230,000 equivalent): Provision of 10 workstations with UPS, 10 printers and initial consumables for the MSP computer training center; classroom and on-site training and follow-up assistance on software use for local HMSAP administrative offices; and additional software development. -2-  (d) Project Administration, Monitoring and Evaluation (US$142,000 equivalent): Assistance for overall project administration; a study to evaluate the effectiveness of HMSAP, including the impact of automation, and recommendations on additional actions required. 3.4 Revised Components: Components were not revised. 3.5 Quality at Entry: QAG review not available at the time of this project preparation. 4. Achievement of Objective and Outputs 4.1 Outcome/achievement of objective: Overall achievement of project objectives is assessed as satisfactory. The project has met its original development objectives, namely to assist the Government in increasing the administrative efficiency of HMSAP offices. The project substantially increased automation and computerization of HMSAP offices in Ukraine through the establishment of single database and network of 756 regional housing subsidies offices. The project provided support in coordination of government activities and ensured consistency of central and local governments in provision of social assistance. The administrative efficiency in the regional HMSAP offices has been increased which is confirmed by the following indicators: (a) according to the Presidential Decree No. 1239 "On Social Protection of Low Income People Under Transition to Full Cost Recovery for Housing and Communal Services" dated September 30,1999, local HMSAP offices have to process the application within no more than 10 days. With the support of SPSP, this objective has been achieved; (b) the average level of HMSAP recipients was reduced to 1,800-2,200 participants per workstation. Rationalizing public expenditures and improving the efficiency of public service provision was consistent with the Bank's Country Assistance Strategy (Report No. 15674-UA) discussed by the Board of Directors on June 27, 1996. The Loan original closing date was the end of June 1999. However, in the view of the delay in the Loan ratification procedure by the Parliament (Verkhovna Rada) of Ukraine and the necessity to complete the installation of hardware and software, the Loan closing date was extended until the end of June 2000. 4.2 Ouitputs by components: The principal outcomes of the project are as follows: (a) Automation of Data Processing in HMSAP Administrative Offices: Within the project framework, 1,088 workstations complete with uninterrupted power supply (UPS) units, 37 (central) file servers, and 100 local file servers complete with UPS units, 37 laser printers, 558 matrix printers and 298 modems complete with all necessary consumables have been purchased. Each of the 756 municipal offices of the Social Allowance Administration and 27 regional offices of the Labor and Social Protection Administration have at least one workstation to support their daily processing of applications and calculation of allowances. Workstations have been installed with the latest version of the HMSAP application software, provided by the USAID/PADCO. The overall computer system has passed - 3 -  acceptance testing. The work on automation of the HMSAP administrative offices, regional offices, and the Ministry has been assessed as highly satisfactory. (b) Management Information System: Based upon the project objective to pilot a system to electronically link local HMSAP administrative offices, regional offices, and the Ministry, all required workstations and modems have been installed and tested successfully. At present, where the telephone lines and/or e-mail facility are available, data files and monthly reports can be transmitted between the Ministry and offices electronically. All regional offices have an access to e-mail and submit their monthly reports and data electronically to the Ministry. In addition, many local HMSAP offices also transmit their reports and data electronically. PADCO designed and installed a Website for the MLSP Department of Social Assistance. Oblast departments of social protection were connected to Internet. Local computer network has been installed at 151 Social Allowance Administration offices where at least three computers are available to ensure the computer equipment being used in a most efficient way. Local HMSAP offices are now capable of exchanging data with the State Tax Administration and its local offices. Regional housing subsidies offices use modem connection for data exchange with local housing maintenance organizations, rayon power network, water supply services, gas supply services, and the Oblast Housing Subsidy Departments which diminishes risks of fraud and errors in the process of including new participants to the HMSAP. As a result, means testing has become more accurate and social assistance more targeted. Overall, the outcome of this Component is assessed as satisfactory. (c) Training and Technical Support: This Component was carried out by the MLSP and USAID/PADCO All required training on the office procedures and the use of automated systems was completed. Documentation (user's manual) was prepared and distributed to all users. In the framework of this Component, PADCO delivered training to HSO specialists through the "National Standing Refresher Course," a 40-hour program designed and developed by PADCO that includes training in the use of applied software, its functional capacities and operation features, as well as a thorough coverage of the basic normative acts and procedures of the housing subsidy program. In addition, PADCO experts designed and delivered a two-week training program for the heads of local HSOs attending the Republican Standing Refresher Course within the MLSP. Over the project three-year period: (a) one-week courses were delivered to 31 groups of trainees, including 613 specialists from a total of 447 HSOs; (b) a shorter course called NASH DIM (Our House) was delivered to 10 groups of the heads of local HSOs, including 198 trainees from 163 HSOs; (c) 25 regional seminars were designed and delivered by PADCO in 17 oblast centers, and about 780 officers of the district Social Allowance Administration have been trained. All users of the automated system have an access to "a technical advisory hotline" to provide the day-to-day operational guidance support as needed. Achievement of the objective of this Component is assessed as highly satisfactory. (d) Project Administration, Monitoring and Evaluation: The Ministry of Labor and Social Policy was responsible for project implementation. However, the formal - 4 -  PIU was not established at the MLSP as it was envisaged at the appraisal stage. The Project was implemented by the Department of Social Assistance of the MLSP. Monthly reports about the program status in all five pilot regions (Dnepropetrovskaya, Kievskaya, Lvivskaya and Nikolayevskaya oblasts, and the city of Kiev) after installation of equipment were produced, and the program is being monitored jointly by the MLSP and PADCO, including staffing levels of offices and effectiveness of local HMSAP administrative offices, beneficiaries of the system, poverty among beneficiaries and benefit levels. Overall, the outcome of this Component is assessed as satisfactory. Successful completion of the project was achieved with a significant technical support and parallel grant financing by USAID/PADCO. In particular, the technical support provided by USAID included installing computers and Local Area Networks (LANs) in housing subsidy offices (HSOs); establishing electronic communications links with 122 HSOs in pilot regions; developing and implementing information systems for HMSAP; improving, distributing and maintaining "NASH DIM" caseload management software; developing, distributing and maintaining the electronic library "Social Protection":, preparing and distributing new Office Procedure Manuals, training HSO staff and conducting sociological surveys of local HSOs with the purpose to evaluate services to recipients of housing subsidies according to requirements of the World bank. 4.3 Net Present Value/Economic rate of r eturnt: Not Applicable 4.4 Financial r ate of return: Not Applicable 4.5 Institutional development impact: The impact of the Project achieved most of its intended development objectives. The project supported major enhancements in the infrastructure of HMSAP offices at national, regional and local levels through the provision of modem information technology and automation, and equipment of facilities with modem equipment. The project assisted in capacity building with respect to HMSAP offices dealing with applicants of housing allowances. The SPSP assisted in training of cadres involved in provision of HMSAP benefits. The project provided assessment of effectiveness of current Ukrainian housing allowances system. 5. Major Factors Affecting Implementation and Outcome 5 1 Factors outside the control of governnment or inmplenmenting agency: Initial delays with project effectiveness were caused by complications with ratification of the project in the Parliament of Ukraine. Although the administrative efficiency of the HMSAP program has substantially increased, full cost recovery of production costs in housing sector, as it was initially anticipated in the project design, has not been reached yet. The Government has prepared draft legislation for the elimination of budgetary support for housing and utilities, but according to Parliament decision from 1999, full cost recovery cannot be implemented until arrears on pensions and wages are eliminated. 5.2 Factors generally subject to government control: The Government and MLSP were committed to the project from the very beginning. Strong commitment and ownership of all key agencies (MLSP, National Agency of Ukraine for Development and European Integration, Ministry of Finance, Cabinet of Ministers) facilitated successful project implementation. However, changes in the Government, sometimes inadequate coordination between different Government bodies also contributed to the project extension by one year. - 5 -  5.3 Factors generally subject to iniplenienting agency control: Permanent changes among the key staff responsible for the project in the MLSP also had an impact on project implementation. During the period of 1996-2000 (project preparation and implementation phase), 3 Ministers of Labor and Social Policy have been changed. Teams working on the project also changed frequently. On the other hand, technical assistance to the project provided by USAID/PADCO was used properly and efficiently which contributed to its successful completion. 5.4 Costs andfinancing: Total project cost was estimated at US$ 2.6 million equivalent at appraisal. Undisbursed amount of the Loan equals US $ 1,965. Therefore 99,92% of the Loan proceeds has been disbursed. Since technical assistance to the MLSP was provided by USAID/PADCO and was covered by grant financing, the need for consultants services funding reduced. As the key purpose of the Loan was to increase the efficiency of HMSAP, the MLSP proposed to use unallocated funds for purchasing additional computer equipment for local housing subsidies offices which made it possible to integrate processing of data on different types of allowance recipients and forecast budget expenditures for social support of low-income population. Respectively, reallocation of funds took place: the amount of Category 1 "Goods has been increased by US $ 299,000; Category 2 "Consultants Services" has been decreased by US $ 29,000. 6. Sustainability 6.1 Rationale for sutstainability rating: Overall, the sustainability of the project is highly likely. The Ukrainian authorities are committed to strengthen the social assistance system and improve the government performance in processing the whole set of targeted social assistance benefits. This is confirmed by the Decree of the President of Ukraine "On Social Protection Measures to Support Low-Income Residents During the Period of Transition to Full Recovery of Housing and Municipal Services Costs" dated September 30, 1999, and Regulations of the Cabinet of Ministers "On Changes and Amendments to Regulations of the Cabinet of Ministers of Ukraine on Housing and Municipal Service Allowances and Other Targeted Social Assistance to Low Income Households" dated February 2, 2000. The MLSP computer center has assumed responsibility for the further development of software and for caseload management and reporting. New reporting and auditing systems are under development. 6.2 Transition arr-angement to regular operations: None 7. Bank and Borrower Performance Bank 7. 1 Lending: The Bank's performance in lending is assessed as satisfactory. The standard investment loan was chosen as an appropriate lending instrument for this type of Bank operation. The Bank's preparation of the project involved close coordination with Government counterparts and intemational organizations (USAID/PADCO). At its identification stage the project was identified and designed in a way to ensure consistency of its objectives with the Govermment priorities and CAS at that time. Bank assisted the Borrower with project preparation in all major relevant aspects: technical, financial, procurement and disbursement. Main project risks were identified properly and the project design ensured mitigation of possible risks. Performance indicators to identify development objectives and project outcomes were developed adequately. However, one of the performance indicators to eliminate by September 1997 - 6 -  Government budgetary support for housing maintenance, water and sewerage, heating, hot water and gas enterprises has been rejected as inappropriate due to current economic situation in the country. 7.2 Supervision: The Bank's performnance in supervision is assessed as satisfactory. Implementation problems were identified early and addressed proactively. Since 1998, project supervision has been provided by local staff of the Bank Country Office in Ukraine which helped to ensure consistency in supervision process and accelerate decision-making process. The Bank's staff showed flexibility in approving modifications and changes in the project design, responding to requests by the Government of Ukraine. Close cooperation and coordination of all key stakeholders involved in supervision process (MLSP, Ministry of Finance, Bank, USAID/PADCO) was ensured. Nevertheless, supervision of the whole project was somewhat complicated due to the parallel financing and activities by a major international technical assistant to the project. 7.3 Overall Bankperformance: Overall bank's performance is assessed as satisfactory. Borrower 7.4 Preparation: The Borrowers performance in lending is assessed as satisfactory. From the early stage of project design, the Government in general, and particularly MLSP demonstrated strong commitment to project preparation. There was close cooperation at the time of project preparation between the Government and the Bank, and the leadership and vision provided by the main counterpart, the MLSP, ensured that the project was appropriate to Ukraine's needs. Representatives from all key counterpart's agencies were involved in loan preparation. 7.5 Government implementation performance: Government implementation performance is assessed as satisfactory. Some delays in implementation from the Government's side were caused by lack of coordination between different government agencies rather than by absence of commitment. Adequate counterpart funds were provided on a timely basis which also demonstrated strong government commitment in project implementation. Based on the final audit report, Government contribution was increased by US $ 270,000 compared to estimations at the stage of project appraisal. At the same time, key management officials responsible for project implementation were frequently changed. In 1998, the Ministry of Social Protection was merged with the Ministry of Labor, and the MLSP was established. In 1999/2000 in Ukraine, a public administration reform took place, and reorganization within the Ukrainian Government influenced project implementation process again. 7.6 Inmplementing Agency: A forrmal PIU has not been established in the MLSP as it was envisaged at the appraisal stage. The performance of MLSP as an implementing agency is assessed as satisfactory. Certain delays in project implementation were caused by changes in the MLSP team responsible for SPSP preparation and implementation, and inadequate financing of administration of programs. However, the Ministry's strong commitrnent to and governance of the project assured effective project management and efficient use of technical assistance provided in the project framework. 7.7 Overall Borrowerperformance: Overall Borrower's performance is assessed as satisfactory. - 7 -  8. Lessons Learned 1. Lending must be supported with thorough technical assistance: Successful implementation of the project can be attributed to the fact that the Bank and USAID/PADCO teams worked closely with the Ministry on almost all aspects of implementation of the housing subsidy program - from collaborating in drafting governmental decrees, designing application forms, providing computers to local offices, developing computer software to calculate subsidies and maintain records, teaching local staff how to use software, evaluating program, and providing support to the Ministry in identifying opportunities to improve the program. Although computerization of administrative systems have been introduced as free standing Bank projects, procurement of computers without appropriate software and adequate capacity building would not have accomplished any of the project objectives. 2. Training of staff in the use of computer technologies and in the management of information exchange: The MLSP would not have so readily adapted to the implementation of computerized caseload software in regional and local offices unless the ministry's program staff and the staff of local housing offices would not have been trained in the use of computers and other equipment. The development of regular training programs for the staff of all levels was crucial for the success of the project. 3. Support in monitoring and evaluation of programs: The MLSP now recognizes the importance of information management as the key to administer targeted social assistance programs. The MLSP supported the development of Monitoring Center to provide the Cabinet of Ministers and the Ministry itself with timely and comprehensive data on caseloads and program expenditures. The MLSP also supported the development of oblast level MIS systems based on automatic data transfer from local offices to respective oblast departments. Nevertheless, staffing limitations of HMSAP at national and regional levels and financing restrictions imposed on the MLSP have not allowed to fully develop such activities. Although the housing subsidy program allocates UAH 1.6 billion, or nearly US$ 300 million annually, the Ministry's Department of Social Assistance has only 8 people working on housing allowances, and in each oblast, 4-5 people at most. 4. Absence of formal PIU complicates project implementation: Given the small size of the project and its relatively simple structure, the decision made by the MLSP not to have a formal PIU was probably correct. However, for more comprehensive projects related to automation of administrative systems, the establishment of a formal PIU is advisable. In addition, delays in project implementation were caused by changes in the core project management team. Continuity in project management can also provide needed stability in implementing project activities. 9. Partner Comments (a) Borrower/implementing agency: In its comments the MLSP indicated the following. The Project was designed to attain the following objectives: I. Ensuring an efficient use of the relevant budgetary assignments as a result of the process or transition from the inconsistent broad-subsidizing practice to the target social means-tested allowance program to support the low-income households, based on assessment of their average monthly aggregate incomes and actual financial situations. -8-  2. Developing efficient and effective national social programs to secure target support to the low-income households in the transitional period of the social and economic reforms, thereby providing against possible social tension in the country. 3. Improving the targeting dimension of the national social protection programs to support the low-income households by means of the housing and municipal service allowance. 4. Improving the quality of the social allowance administration services provided to the households, throughout the qualification and payment process. 5. Improving the quality of the state-level and local-level administrative control over implementation of the national social protection programs to support the low-income categories of residents. 6. Putting in place a necessary groundwork to build up a consistent data-collecting and processing system to monitor the progress of different national social protection programs and, first of all, the housing and municipal service allowance programs. The above Project objectives are basically achieved today. Soon after the necessary application software was installed at every local office of the Social Allowance Administration, the offices have managed to simplify the accounts and shorten the accounts processing time, thereby preventing possible social tension and securing necessary support to the low-income categories of residents in the process of transition to the hundred-percent recovery of the housing and municipal service costs by the category of residential consumers. Computer equipment is required to ensure the whole process of the housing and municipal service allowance processing and qualification that includes: registration of applications; documents processing followed by the allowance qualification and rating; preparation of monthly registers of the subsidized households that are provided to the relevant housing and municipal service utilities; and formation of statistical reports. In addition, special application software functions are available for restatement of the effective social benefits. Purchase of computers followed by the necessary operation-and-application software installation for account of the Social Protection Support Project (Housing and Municipal Services Allowance Program) at the local offices of the Social Allowance Administration, has enabled to facilitate the data processing on the average monthly aggregate incomes, to arrive at the 15-percent and 20-percent income rates within the frame of the means-testing analysis. The average processing load has been reduced to 2.2 thousand applications per every office PC. Since the special application software for processing data on the households applying and qualified for the housing and municipal service allowance was installed at every local office of the Social Allowance Administration, the offices have been able to process the relevant documentation separately for each category of accounts payable to every public service utility. Furthermore, the offices has been able to introduce incentives system to encourage the subsidized households to use the primary energy supplies in a most efficient manner. This was made by means of a payment reduction plan conditional on the efficient use of the energy supplies, and the plan has resulted in the budgetary assignments required for the allowance dropping down by some UAH 39.3 per the year. Moreover, the Social Allowance Administration offices are now capable of exchanging data with the State -9-  Tax Administration headquarters and its local offices. This function of the system provides means to minimize risks of fraudulent misrepresentation and/or human error in the process of the housing and municipal service allowance processing and qualification, as may happen when incomplete or incorrect information is provided on the applicant's incomes and financial position. Only for the first six months of the year of 2000, these data cross-checks have revealed some 25.2 thousand cases of incorrect statements worth around UAH 2,122.2 thousand in overpaid allowance that was eventually paid back to the national budget; these refunds made up 0.2 percent of the total amount of the housing and municipal service allowance paid during the period. One of the major impediments in the Project implementation period was the lack of an independent administrative task force (Project implementation unit), while only a limited number of (local) experts was available for coordination of activities under the Project. This was apparently the prime reason for some delays and misconceptions during the cooperative efforts of the Ministry of Labor and the World Bank missions. These problems have been successfully solved through the persistent efforts and constructive cooperation of all the experts involved in the Project, who had the most efficient and timely support throughout the whole process from the resident officers of the World Bank. It was of great importance that the officers of the World Bank Resident Mission in Kyiv have always assisted the Ministry by most adequate and competent actions in quite often complicated situations, and helped the Ministry to solve crucial problems encountered during the Project implementation period. It was the reasonable flexibility of the World Bank when considering the loan disbursement arrangements that, as we believe, eventually secured the fulfillment of the objectives set forth by the Ministry for the Project implementation period. In addition, it is pertinent to note that the Ministry staff, appreciating the opportunity to work in close cooperation of with the World Bank officers and consultants and the PADCO experts, has gained much from the best intemational experience and practice and has taken advantage of them both solving the present-day problems in the sector and gaining a more penetrating insight into the social protection system advancement strategy on the whole. It is pertinent to note that the Ukrainian side has mostly supported the Project by financing the activities to establish essential infrastructure and environment in the Project offices, to ensure that computer equipment is being used in a most efficient manner. The activities included installation of the necessary safety equipment and security systems, as well as fire alarm systems, in the offices. Total spending of the Ukrainian side for the above purposes was estimated at US$ 363 thousand as of January 1, 2000, that means it has exceeded the budgeted amount. Based on the practical experience gained during the Project implementation period, the following conclusions may be made: 1. Using the modem computer technologies is of paramount importance for progress of all efforts to perfect the social protection system in terms of better support to the low-income residential categories. Furthermore, no progress can be made unless the local labor and social protection offices are well equipped with all necessary equipment and supported at the same time by target technical assistance to be provided on a complex basis and with adequate follow-up services. - 10-  2. In view of the limited number of experts available in the central executive agencies of Ukraine, it is advisable to establish an independent administrative task team (Project implementation unit) to take responsibility for current management of all the implementation activities under the projects of that kind. (b) Cofinanciers: Cofinanciers (USAID/PADCO) comments could be found in the final study "Evaluation of the Impact of Technical Support for the Housing Subsidies Program in Ukraine" (c) Other partners (NGOs/private sector): Not Applicable 10. Additional Information  Annex 1. Key Performance Indicators/Log Frame Matrix Outcome I Impact Indicators: Indicator/Matrix Projectd In last PSR ActuaULatest Estimate - Efficiency of Processing Applications: from Efficiency of Processing Applications Efficiency of Processing Applications current levels of around 30 days to less than enhanced: processing period decreased enhanced: processing period decreased 2 weeks from receipt of application to from 30 days to 10 days from receipt of from 30 days to less than 10 days from notification, by December 31, 1999. application to notification receipt of application to notification - Efficiency in Administering the HMSAP Efficiency in Administering the HMSAP Efficiency in Administering the HMSAP Program: average of 3,000 HMSAP enhanced: average number of participants enhanced: average number of participants participants per workstation, by December decreased from 4,800-5,300 to 1,800-2,200 decreased from 4,800-5,300 to 1,800-2,200 31, 1999. participants per workstation participants per workstation - Eliminate govemment budgetary support The Govemment has prepared legislation for The Govemment has prepared legislation for for housing maintenance, water and the elimination of govemment budgetary the elimination of govemment budgetary sewerage, heating, hot water and gas support for housing and utilities, but support for housing and utilities, but enterprises by December 31. 2000. according to Parliament Law adopted in according to Parliament Law adopted in 1999, it cannot be implemented until arrears 1999, it cannot be implemented until arrears on pensions and wages are paid off. on pensions and wages are paid off. Analysis of regional differences on It is estimated that such an analysis will be Analysis is provided in monitoring and paricipation rates, level of subsidies, staffing done in monitoring and evaluation study evaluation study developed by PADCO in levels, effectiveness of local HMSAP prepared by USAIDIPADCO June 2000 administrative offices and other management information Output Indicators: lndlcatorlMatrilx Proected In lost PSR ActualULatest Estimate Automation of calculation allowances per Automated system of allowances calculation Automated system of allowances calculation HMSAP allowance beneficiary, both new and recalculation is in place. and recalculation is in place. applications and recalculations (case by case) Computer generated allowance notices to Computer generated allowance notices are Computer generated allowance notices are households (case by case) provided to all HMSAP particpants provided to all HMSAP participants Computer generated monthly summaries of Computer generated monthly summaries of Computer generated monthly summaries of total allowance to be provided to each total allowance are provided to each total allowance are provided to each municipal service enterprise municipal service enterprise municipal service enterprise Timely monthly reports on numbers of Monthly reports on program status are Monthly reports on program status are being applicants, numbers of allowances granted, produced by PADCO specialists produced by specialists of information amounts of allowances paid, identification of technology center of the MLSP recipients, average tme between submission of applications and notification to applicants - Evaluation study analyzing, among others, 1st progress report on the HMSAP was Final evaluation and monitoring study was regional differences on particpation rates, prepared by USAID/PADCO by December prepared by USAIDIPADCO by June 30, level of subsidies, staffing levels, and 31, 1999 2000 effectiveness of local HMSAP administrative offices by June 30, 2000. End of project -12-  Annex 2. Project Costs and Financing Project Cost by Component (in USS million equivalent) Appraisal Actual/Latest Percentage of Estimate Estimate Appraisal Project Cost By Component USS million US$ niillion A. Data Processing Site Preparation 0.10 0.37 370 Computer Systems 2.10 2.59 123 B. Management Information System Computer Systems 0.14 C. Training and Technical Support Computer Systems 0.03 Consultancies 0.20 0.20 100 D. Implementation, Monitoring and Evaluation Consultancies 0.14 0.11 79 Total Baseline Cost 2.71 3.27 Price Contingencies 0.29 Total Project Costs 3.00 3.27 Total Financing Required 3.00 3.27 Actual Project cost is US $ 0.27 mln more than estimated at appraisal time due to increased Government contribution by this amount Project Costs by Procureme nt Arrangements (Appraisal Estimate) (US$ million equivalent) Procurement Method Expenditure Category ICB NCB Othero N.B.F. Total Cost 1. Works 0.00 0.00 0.00 0.10 0.10 (0.00) (0.00) (0.00) (0.00) (0.00) 2. Goods 2.56 0.00 0.00 0.00 2.56 (2.56) (0.00) (0.00) (0.00) (2.56) 3. Services 0.00 0.00 0.04 0.30 0.34 Consultancies (0.00) (0.00) (0.04) (0.00) (0.04) 4. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 5. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 6. Miscellaneous 0.00 0.00 0.00 0.00 0.00 _ (0.00) (0.00) (0.00) (0.00) (0.00) Total 2.56 0.00 0.04 0.40 3.00 _ (2.56) (0.00) (0.04) (0.00) (2.60) Other methods for Consultancies means single sourcing for individual consultants - 13 -  Project Costs by Procurement Arrangements (Actual/Latest Estimate) (US$ million equivalent) -Procurement Method Expenditure Category ICB NCB . Other N.B.F. Total Cost 1. Works 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 2. Goods 2.59 0.00 0.00 0.00 2.59 (2.59) (0.00) (0.00) (0.00) (2.59) 3. Services 0.00 0.00 0.01 0.00 0.01 Consultancies (0.00) (0.00) (0.01) (0.00) (0.01) 4. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 5. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) 6. Miscellaneous 0.00 0.00 0.00 0.00 0.00 (0.00) (0.00) (0.00) (0.00) (0.00) Total 2.59 0.00 0.01 0.00 2.60 (2.59) (0.00) (0.01) (0.00) (2.60) Other methods for services means Least Cost Selection method. Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies. 2r Includes civil works and goods to be procured through national shopping, consulting services, services of contracted staff of the project management office, training, technical assistance services, and incremental operating costs related te (i) managing the project, and (ii) re-lending project funds to local government units. Project Financing by C omponent (in USS million equiv alent) Percentage of Appraisal Component Appraisal Estimate Actual/Latest Estimate Bank Govt. CoF. Bank Govt CoF. Bank Go,t. CoF. A. Data Processing Site preparation 0.10 0.37 370.0 Computer Systems 2.10 2.59 123.3 B. Management Information System Computer Systems 0.14 0.0 C. Training and Technical Support Computer Systems 0.03 0.0 Consultancies 0.20 0.20 100.0 D. Implementation, Monitoring and Evaluation Consultancies 0.04 0.10 0.01 0.10 25.0 100.0 Contingencies 0.29 0.0 TOTAL 2.60 0.10 0.30 2.60 0.37 0.30 100.0 370.0 100.0 - 14 -  Annex 3: Economic Costs and Benefits Not Applicable - 15 -  Annex 4. Bank Inputs (a) Missions: Stage of Project Cycle No. of Persons and Specialty Performance Rating (e.g. 2 Economists, I FMS, etc.) Implementation Development Month/Year Count Specialty Progress Objective Identification/Preparation April 1996 2 Task Team Leader IT Specialist Appraisal/Negotiation July 9-26, 1996 2 Task Team Leader IT Specialist November 25- 29, 1996 2 Task Team Leader Procurement Consultant March 11-15, 1997 1 Task Team Leader October 1997 2 Program Team Leader Operations Analyst Supervision February 14-20, 1998 1 Procurement Specialist S S December 8-12,1998 2 Program Team Leader S S Operations Analyst May 14-19,1999 1 Task Team Leader S S November 9-16, 1999 3 Task Team Leader S S Operations Analyst IT Specialist ICR November 6-17, 2000 1 Task Team Leader (b) Staff Stage of Project Cycle ActualLatest Estimate No. Staff weeks USS (,000) Identification/Preparation 7.3 11.9 Appraisal/Negotiation 13.0 36.5 Supervision 51.1 78.2 ICR 7.7 16.9 Total 79.1 143.3 - 16 -  Annex 5. Ratings for Achievement of ObjectiveslOutputs of Components (H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable) Rating OI Macro policies O H OSU*M O N O NA O Sector Policies O H OSU*M O N O NA O Physical OH OSUOM ON *NA Ol Financial OH *SUOM ON ONA O Institutional Development 0 H O SU O M O N 0 NA Ol Environmental OH OSUOM O N * NA Social O Poverty Reduction O H OSUOM ON O NA O Gender OH OSUOM ON *NA OL Other (Please specify) O H OSUOM O N O NA El Private sector development 0 H O SU O M 0 N * NA O Public sector management 0 H O SU O M 0 N * NA OIOther (Please specify) O H OSUOM O N o NA - 17 -  Annex 6. Ratings of Bank and Borrower Performance (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory) 6.1 Bankperformance Rating LI Lending OHS*S OU OHU O Supervision OHS OS OLU OHU LI Overall OHS OS OU O HU 6.2 Borrowerperformance Rating a Preparation OHS OS O u O HU L Government implementation performance OHS O S 0 U 0 HU LI Implementation agencyperformance OHS OS 0 U O HU L Overall OHS *S OU OHU - 18 -  Annex 7. List of Supporting Documents 1. Memorandum and recommendation of the President to the Executive Directors on a proposed Loan in amount equivalent to US $ 2.6 million to Ukraine for a Social Proteciton Support Project. 2. Technical Annex to the Memorandum of the President: Ukraine, Social Protection Support Project 3. Loan Agreement 4. Mid-term Review Mission Back to Office report. 5.Relevant Project Supervision reports 6. English and Ukrainian Versions of Borrower Contribution to the ICR. 7. English and Ukrainian versions of Evaluation of the Impact of technical Support for the Housing Subsidy Program in Ukraine (Monitoring and Evaluation Study prepared by USAID/PADCO). 8. Interviews with Beneficiaries (Staff from 2 Housing Subisidies Offices). - 19-  -20 -  MAP SECTION   BRD 27828R ! BELARUS \ RU~~~~~~~~~~~~~t SSIAN ROADS / J J ~~~~~~~~~~~~~~~~~~FEDERATION .,RAILROADS * . E o~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C SELECTED TOWNS AND CITIES ' > 0 \ . + . \ < 9 r Tl h | A| r ..... PC'L-r4CD W e / ~ _/1;;+ / ; \;; \ IE ;S t -7 9<> 2 , hcff ;t t <{~~~~I -1-. /-1 . , b \. i L~~~~~~~~~~~~~~~~~~~~l [P'-A1 |~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~5 QN ; $/} *,-,~~~~~~~~~~~~~~~ el,rl rl L:D -, ,, =A . - - i ' TnS 1wsrr,50 L.sz f |s >_Y-f c irelclJci tz an > \ \ %t , *;iy , \~~~~~~~~~~~~~~~~~~ l ;2|(; 3 ;~~~'7 RrtP>4.tY' UKRA~~~INoE r :f HVNGARY j C:_;,LV L O A NT /r I w I i l K , - t9L._ _ --_ B!