Malawi - Social Action Fund Project

Document of The World Bank Report No. 15345-MAI STAFF APPRAISAL REPORT MALAWI SOCIAL ACTION FUND PROJECT APRIL 12, 1996 Human Resources Division Southern Africa Department  CURRENCY EQUIVALENT (as of December 31, 1995) Currency Unit = Malawi Kwacha (MK) U.S.$1.00= MK15.4 FISCAL YEAR (FY) April I to March 31 WEIGHTS AND MEASURES I meter (m) = 3.281 feet (ft) I kilometer (km) = 0.621 miles (mi) I square kilometer (sq km) = 0.386 square miles (sq mi) I cubic meter (m3) = 264.2 U.S. gallons GLOSSARY OF ABBREVIATIONS DDC = District Development Committee CAS = Country Assistance Strategy CDA = Community Development Assistant CONGOMA = Council for Non-Governmental Organisations in Malawi CSP = Community Subprojects DDF = District Development Fund DDO = District Development Officer DEC = District Executive Committee DHS = Demographic and Health Survey DMO = District Medical Officer DRIMP = District Roads Improvement Program EPA = Extension Planning Area FHH-= Female Headed Households GDP = Gross Domestic Product GNP = Gross National Product GOM = Government of Malawi ICB = Intemational Competitive Bidding IDA = International Development Association IEC = Information, Education and Communication IHSP = Integrated Household Survey on Poverty MASAF = Malawi Social Action Fund MEPD = Ministry of Economic Planning and Development MOHP = Ministry of Health and Population MOW = Ministry of Works MU = Management Unit of MASAF NCB = National Competitive Bidding NGO = Non-Governmental Organization NSO = National Statistical Organization  NSSA = National Sample Survey of Agriculture ODA = Overseas Development Agency PAF = Poverty Analysis Fund PAP = Poverty Alleviation Program PC = Project Coordinator PCD = Project Concept Document PHN = Population, Health and Nutrition PIM = Project Implementation Manual PMSF = Poverty Monitoring Support Facility PSC = Project Steering Committee PSIP = Public Sector Investment Programme PWD = Public Works Division PWP = Public Works Program SCC = Systematic Client Consultation SOE = Statement of Expenditure TA = Traditional Authority TWC = Technical Working Committee VAM = Vulnerability Assessment Monitoring System WFP = World Food Program UNDP = United Nations Development Programme UNICEF = United Nations Children's Fund USAID = United States Agency for International Development   REPUBLIC OF MALAWI SOCIAL ACTION FUND PROJECT STAFF APPRAISAL REPORT Table of Contents CREDIT AND PROJECT SUMMARY ............................i 1. BACKGROUND . A. Macroeconomic Setting . B. Poverty in Malawi .2 C. Sectoral Issues .4 D. Project Rationale .8 2. THE PROPOSED PROJECT.1 A. Objectives and Summary .1 B. Detailed Description and Processes .12 C. Lessons Learned .27 D. Special Project Issues .31 3. PROJECT IMPLEMENTATION .34 A. Systematic Client Consultation .34 B. Institutional Setup .34 C. Project Costs and Financing Plan .39 D. Procurement .40 E. Disbursement .44 F. Accounts and Audits .47 G. Monitorable Indicators .47 4. PROJECT BENEFITS AND RISKS .49 A. Project Benefits .49 B. Project Risks .50 C. Project Viability .53 5. CONDITIONS, AGREEMENTS AND RECOMMENDATIONS .55 This report is based on the findings of a Bank appraisal mission which visited Malawi in November/December 1995, comprising Messrs./Mmes. Norbert Mugwagwa (Senior Population Specialist and Mission Leader), Jay Chaubey (Consultant), Hope Phillips (Operations Analyst), Ghazali Raheem (Information Technology Specialist), P.C. Mohan (Information Education & Communications Specialist), Ingeborg Kleppe (Consultant-Social Survey Specialist), Solomon Ayalew (Consultant-Public Health Advisor), Noel Kulemeka (Economist), Jim Smith (Deputy Resident Representative), John Kandulu (Infrastructure/Procurement Program Officer), John Quinley (Consultant), Rob Kafundu (UNICEF), Clare Barkworth (Consultant), and Elliot Kazembe (Consultant). In addition, input to the report was given by Messrs./Mmes. Helena Ribe (Principal Poverty/HR Operations Officer), Mulugeta Wodajo (Senior Education Specialist), Marguerite Salah (Operations Officer), Ricardo Silveira (Senior Economist), Trina Haque (Economist), Dan Fullerton (Agriculture Economist), Michael Macklin (Senior Agriculturalist), Paul Siegel (Consultant, Econ-Rural Poverty Specialist), Ebenezer Aikins-Afful (Senior Sanitary Engineer), Naa Dei Nikoi (Operations Officer), John Shepherd (Water Resource Management Specialist), Ahmad Ahsan (Economist), Hartwig Schafer (Economist), Jaime Roman (Procurement Adviser), Arthur Fields (Procurement Specialist), Arif Zulfiqar (Resident Representative), Dan Owen (Social Anthropologist), Hilary Cottam (Consultant) and Audrey Cox (Staff Assistant). Mmes. A. Patricia Samuel, Rhodora Mendoza Paynor, and Vinnette Gordon provided administrative support. Mr. Steen Jorgensen was the Lead Advisor and Ms. Julia Van Domelen and Mr. Alexandre Marc were the peer reviewers. Mr. Roger Grawe and Ms. Katherine Marshall are the managing Division Chief and Department Director, respectively.  List of tables 1.1 Distribution of Households by Poverty .........................................................3 1.2 Poverty Prevalence Among Male- and Female-headed Households .....................................3 1.3 Cross-country Comparisons of Education Financing per Student .........................................5 1.4 Indicators for 1992 ........................................................6 3.1 Summary of Project Costs ....................................................... 39 3.2 Project Financing Plan ........................................................ 40 3.3 Procurement Table ........................................................ 43 3.4 Allocation and Disbursement of IDA Credit ....................................................... 45 3.5 Disbursement Profile ....................................................... 46 List of boxes 1 Field Observations during Pre-appraisal Mission .........................................................5 2 Defining the Community ......................................................... 14 3 Criteria for Community Facilitation ........................................................ 15 4 Zones and Placement of Zone Offices ....................................................... 36 5 Sample of Indicators to be Monitored ....................................................... 48 List of annexes 1 Inter-Country Socioeconomic, Health, Nutrition, and Population Indicators ....................... 57 2 Status of MASAF Pilot Projects ........................................................ 59 3 Project Implementation Manual Table of Contents ........................................................ 60 4 MASAF - Project Cycle ....................................................... 62 5 Malawi Social Action Fund - Community Project Application Form ................................... 63 6 MASAF Requirements ........................................................ 65 7 Selection Criteria for Community Subprojects ........................................................ 66 8 Desk Appraisal Form ....................................................... 67 9 Field Appraisal Form ....................................................... 69 10 Public Works Program Selection Criteria and Principles of Implementation ....................... 71 11 Schedule of MASAF Project Indicators ........................................................ 73 12 PMSF: Institutional Arrangements and Study Cycle ....................................................... 76 13 Work Plans for CSP and PWP ....................................................... 79 14 Organizational Structure of MASAF ....................................................... 89 15 Public Works Program Institutional Roles ........................................................ 90 16 MASAF Project IDA Estimated Disbursement Schedule ..................................................... 94 17 MASAF Annual Report Format ....................................................... 95 18 MASAF and IDA Supervision and TA and Training Services Plans .................................... 97  i REPUBLIC OF MALAWI SOCIAL ACTION FUND PROJECT CREDIT AND PROJECT SUMMARY Borrower: Government of Malawi Implementing Agency: (i) Malawi Social Action Fund -Management Unit, and (ii) participating Ministries, namely Ministries of Economic Planning and Development, Education, Health, Water and Works Beneficiaries: Rural and urban communities, economic and social sector agencies Poverty Category: Program of Targeted Interventions Amount: SDR 38 million (US$56 million equivalent) Terms: Standard IDA terms with a maturity of 40 years including a 1 0-year grace period Commitment Fee: 0.50% on undisbursed credit balances, beginning 60 days after signing, less any waiver Onlending Terms: Not applicable Financing Plan: See para. 3.19 Net Present Value: Although MASAF is a demand driven fund, an economic rate of return (ERR) was calculated at about 22% based on the expected distribution of funds by sector and sector-specific ERRs. Map: IBRD 27747 Project Identification No: 1668   1. BACKGROUND MACROECONOMIC SETTING 1.1 Ranked on the basis of Gross National Product (GNP) per capita, Malawi (US$140 in 1994) is the ninth poorest country in the world. Ninety percent of its population lives in rural areas and depends mainly on subsistence agriculture for livelihood. Of total arable land, 40 percent is held in the estate sector which mostly produces export crops, mainly tobacco, sugar, tea and coffee. The remaining area is shared by 1.8 million smallholder households. More than 40 percent of these cultivate less than 0.5 hectares. Land constraint in the smallholder sector is daunting and is a major factor in rural poverty. In addition to having a poor resource base, with agriculture being the mainstay, Malawi's average population density of 106 persons per km is one of the highest in Africa. 1.2 Since it attained independence in 1964, Malawi emphasized maintaining macroeconomic stability and growth of infrastructure and estate agriculture as the main elements of its development strategy. Poverty was to be dealt with by "trickle-down effects". This strategy proved effective initially in promoting growth and macroeconomic stability, but did very little to reduce poverty. During the 1960s and 1970s, the real Gross Domestic Product (GDP) more than doubled and per capita income increased by 3 percent a year. However, since structural weaknesses persisted and the economic base remained narrow--tobacco continued to be the dominating produce, accounting for 70 percent of foreign exchange earnings--the economy remained highly vulnerable to external and internal shocks. Much of the growth momentum was lost in the mid-1980s when a series of destabilizing factors came into play. The problem began with declining tobacco prices in the international market, and civil strife in Mozambique, which increased international transport costs and brought large refugee and security-related expenditures. The drought of 1992 caused the economy to contract by 8 percent, reducing the smallholder output by 37.4 percent. This was followed by another drought in 1994 when the economy contracted by 12 percent and the production of maize, the main staple, fell by about 50 percent. Government expenditures continued to rise, adding to the instability. These factors created serious macroeconomic instability and brought to the fore inherent structural weaknesses of the economy, shown by the sharp depreciation of the exchange rate, high inflation (35 percent in 1994), widespread poverty and food insecurity. 1.3 Against this background, stabilization and poverty reduction have emerged as central objectives of economic management. These are also the objectives of the Country  2 Assistance Strategy (CAS) for Malawi. Strengthening the nexus between growth and poverty reduction is the main emphasis of the strategy. Poverty-targeted investment and development of human resources, together with programs of macroeconomic stabilization, fiscal restructuring and deregulation, private sector-led growth, particularly in agriculture, and capacity building and decentralization, are important elements of the strategy. The new Government (GOM) has shown strong commitment towards these objectives. It has adopted firm remedial measures and the macroeconomic situation, though still fragile, has improved. The introduction of cash budgeting and measures to track public expenditure, such as the Medium Term Expenditure Framework as instruments to improve expenditure control, have contributed to lowering public expenditures significantly. New revenue measures and improved monetary management have further contributed towards fiscal balance. While fiscal and monetary restraints have succeeded in reducing the rate of inflation and stabilizing the exchange rate, the sustainability of the adjustment process and economic growth will depend on continued efforts toward restructuring incentives to: spur growth in output and export, limit vulnerability to external shocks, increase private sector investment, control runaway population growth, develop human resources, and adopt effective strategies to translate economic growth into poverty reduction. Establishment of the Malawi Social Action Fund (MASAF), under the oversight of the Ministry of Economic Planning and Development (MEPD), is an important step towards achieving these objectives. POVERTY IN MALAWI 1.4 Poverty in Malawi is pervasive and has several aspects. The country has low average incomes which are distributed highly unequally; the poorest of society face acute deprivation. A Poverty Profile' completed as part of MASAF preparation established that the Gini coefficient for Malawi is 0.62, the highest for any African country with available data. For the poorest 20 percent of households even the most basic food needs are not fully met and are generally so pressing that families are at an irreducible minimum of non-food consumption. The indicators of social sector development (Annex 1) are similarly unfavorable for the nation as a whole and worse for the poor. Infant mortality rate (134 per 1,000 live births), child malnutrition, stunting and wasting (48.7% and 5.4%), maternal mortality (620 per 100,000 births) and prevalence of disease including the spread of Human Immuno-Deficiency Virus and Acquired Immune Deficiency Syndrome are very high compared even to other Sub- Saharan countries. 1.5 There is a significant rural-urban, geographical, and gender bias in the incidence of poverty in the country; Table 1.1 shows the rural-urban distribution. Ninety-five per cent of the total Malawian poverty gap is found in rural areas. Most of the poor, and nearly all the core poor are among the smallholder households. Even among the poor "Malawi: Human Resources and Poverty: Profile and Priorities for Action", World Bank, November 1995.  3 households, inequality is significant. The bottom half of the smallholder households receive only 15 percent of the income, while the top 10 percent receive 35 percent. Table 1.1: Distribution of Households by Poverty Percentage of all Percentage of all Percentage of all households households below the households below the 20th percentile 40th percentile Rural 90 95 94 Urban 8 4 4 *BOMAs 2 2 2 Total 100 100 100 Note: Expenditures are all adjusted for differences in costs of living between urban and rural areas. Source: HESSEA 1990/91 * Towns where district headquarters are located. 1.6 Regional variation of poverty is equally significant. The Southern Region which is most populous and accounts for 51 percent of total households in the country, has a higher share of poor households (66 percent). Some of the pockets of most severe poverty and highest densities of the poor are found along the Mozambique border. Poverty differential by gender is similarly significant. Female-headed households (FHHs) have generally less income and a higher dependency ratio. Male-headed households constitute 75 percent of all households in the country. Yet the chance of a male-headed household being among the poorest 40 percent is only one in three while that of a FHH being in this group is one in two. As can be seen from Table 1.2, rural female-headed households also account for a much larger share in the national poverty gap than their representation in the total population. Table 1.2: Poverty Prevalence Among Male- and Female-Headed Households Location/source Male-headed households Female-headed households Percentage of households below tile 40th percentile - national (HESSEA) 37 50 -rural households (NSSA) 35 50 Percentage of the poverty gap: within smallholders (NSSA) 58 42 Sources: HESSEA 1990/91, NSSA 1992/93 1.7 Household Food Insecurity. Looking at the sectoral dimensions of poverty, one finds that food insecurity is a pressing problem for the poor. Most smallholder households run out of food nearly four months before the next harvest. Labor demand in rural areas is minimal, and farm income is the mainstay of the poor. Yet constraints to  4 smallholder productivity continue, perpetuating poverty and hunger. The small size of holdings and restrictive land laws which prevent pooling, poor quality of land exacerbated by continued soil erosion, a conspicuous lack of irrigation making agriculture vulnerable to the low and unreliable rainfall in the country, lack of agricultural equipment and limited credit availability that prevents adoption of improved seeds and fertilizers--all these have kept yields very low and farm outputs insufficient for basic food needs of the poor. For many people in rural areas, coping mechanisms include partial hunger. 1.8 The level of off-farm rural incomes has been falling due to declining real wages and slow growth in labor demand. The minimum wage, a good proxy for market wage in rural areas, has declined consistently in real terms. The demand for ganyu (casual labor) is growing much slower than the rate of population growth. A long run food security strategy for Malawi would require improving both smallholder productivity and labor demand in rural areas. In the short- and medium-terms, this would call for an effective and well targeted safety net to mitigate seasonal and chronic poverty, while at the same time contributing to long-term development goals. SECTORAL ISSUES 1.9 Education. Malawi's education system is hampered by poor access, poor infrastructure, high repetition and drop-out rates, and inequality. Approximately thirty percent of boys and 47.9 percent of girls of school-going age do not enroll. In 1994 the Government eliminated school fees for primary education to improve access. Malawian households responded overwhelmingly with an increase in enrollment by 62 percent, taking primary school rolls from 1.8 million to nearly 3 million. While this reflects communities' priority for education, and GOM's commitment, it has overcrowded classrooms. The Government has recruited an additional 22,980 teachers, but the school system still has an enormous teachers' training need and an acute shortage of classrooms, water and sanitation facilities, and teachers' houses. This increase in enrollment came when the primary school infrastructure had become over-stretched. In 1992/93, for instance, there were 103 students on average per classroom; this obviously obscured a considerable regional variation, with some schools operating under acute constraints. The latest shortage of classrooms is estimated at 38,000 units. A snapshot of the problem is presented in Box 1.  5 Box 1: FIeld observations during the Pre-appraisal Mbslon The mission visited two primary schools. One of them is a two-grade community school with a roll of 2,612 pupils. Only one of its 42 teachers isfully qualified There are only 6 roofed sheds with mud floors, each accommodating at most 25 pupils. Practically all classes are held in the open and when it rains the children are crammed into the sheds and those not accommodated seek shelter in the nearby villages. Three standard I pupils were sharing a textbook. there were no booksfor standard 2 pupils. The other is afiul primary school built to accommodate two streams in each of its 8 grades. This year it has 6,042 pupils and a staff complement of 105 teachers, only 43 of whom are fully qualified The headmaster, who appeared to be a first rate professional and manager, said that it was impossible to educate pupils under these conditions. He said that the pupils should be divided into at least four schools and that the three additional schools have to be carefully sited after a sound school mapping analysis. On average 5 pupils were sharing a textbook Standards 3 and 4 had no textbooks. All the school's pit latrines were flil and the headmaster was very concerned about the danger of an outbreak of disease. 1.10 In recent years, serious efforts have been made to improve the share of education in government expenditures. A greater emphasis has been placed on primary education. The share of education improved from 11.1 percent in 1990/91 to 17.5 percent in 1993/94. Because of the policy shift in 1994/95, public recurrent spending on education more than doubled in real terms between 1990/91 and 1994/95. In spite of these efforts, enormous gaps still exist in quality and infriastructure at the primary level. As can be seen from Table 1.3, primary education has long suffered from a skewed distribution of sector resources which favor university, tertiary and secondary education. Even before enrollment jumped in 1994, historical under-funding of infrastructure and supplies had placed Malawi's primary public schools among the most poorly equipped in Africa. Table 1.3: Cross-country Comparisons of Education Financing per Student* Primary Student Equivalent Subsidy Country GNP/capita Education (USS) Primary Secondary Tertary Univensity (%GDP) Malawi 1992 220*** 1 4 71 103 7.5 Madagascar (1993/4) 230 1 4 22 22 2.6 Lao P.D.R. (1992/3) 230 1 4 24 - 3.6 Kenya (1992/3) 310 1 3 41 41 9.2 Guinea (1994/5) 510 1 2 35 58 2.0 South Africa (1993/4) 2,670 1 2 5 5 7.3 Mexico (1992/3) 2,976 1 2 5 5 4.5 * Human Resources and Poverty in Malawi, a Profil and Priorities for Action, AFIHR, 1995 * The prnimary student equivalent subsidy expresses te number of primwy school sudent that coud be finuiced per each student in higher levels. **This petains to 1992. The per capita GNP for 1994 is substantially lower at USS 140 due to deavaluaion of the domestic currency.  6 1.11 To meet the extraordinary challenge of increased enrollments, GOM has committed an additional MK73 million to the primary sector in the fiscal year 1995/96, but this amount will mostly finance new teachers' salaries' The Government depends largely on external funding for infrastructure improvement. The International Development Association (IDA)-assisted Primary Education Project, to be approved in 1996, will build 2,000 classrooms as an urgent initiative. Building contractors have been identified and the design selected. This will assist in alleviating the most pressing needs. However, for an adequate and enduring solution, further investment in quality and in building new classrooms, with greater community participation, is essential to improving primary education. 1.12 Population and Health. In general, the health status of most Malawians is poor and is worsening. Social and health indicators for Malawi (see Annex 1 for inter-country comparison) continue to be low: life expectancy is 44/45 years; 50 percent of children are about two standard deviations below expected height for age; the leading diseases; malaria, respiratory infections, and abdominal and gastrointestinal tract disorders, have not been contained. Acute infections (pneumonia and measles), cholera, diarrhea, and chronic infections (especially tuberculosis) continue to be serious problems, while sexually-transmitted diseases and Acquired Immune-Deficiency Syndrome are spreading rapidly; Table 1.4 gives some indicators for 1992. Table 1.4: Indicators for 1992 INDICATOR 1992 Infant Mortality Rate (per 1000) 134 Maternal Mortality Rate (per 100000) 620 Total Fertility Rate 6.7 Contraceptive Prevalence Rate (per 1000) 7 Crude Birth Rate (per 1000) 47 Human Immuno-Deficiency Virus + Cases approximately 12.1% Source: Demographic and Health Survey (DHS) 1992. 1.13 High levels of morbidity and mortality (see Annex 1) among infants, children and mothers are the result of poor nutritional status, food insecurity, high prevalence of preventable diseases, poor hygiene and sanitation, low access to health and social services, and high illiteracy and fertility rates. These are manifestations of the poverty condition of Malawi--more widespread and deeper in rural areas than in peri- and urban areas. The mismatch, in the past, between the emphasis on curative, high technology urban-based service provision and the predominant disease pattern characterized by preventable (low cost), infectious, communicable and nutrition-related diseases exacerbated the situation. Ongoing efforts under the IDA-assisted Population, Health and Nutrition (PHN) Sector Credit have focused health policy and resource allocation in favor of low cost, effective, preventive-promotive health measures targeted at the rural and urban poor. The Ministry of Health and Population's (MOHP) Health Policy Framework  7 advocates, among other things, targeting resources to priorities identified by the communities. 1.14 Constraints faced by Malawi with respect to PHN continue to be related to physical infrastructure, goods and services and human resources. The poor distribution and location and lack of health centers, inadequate staff housing, scarcity of potable water, and unavailability of drugs and other support goods and services are constraints that deter health staff from the periphery. Since the communities endure the burdens of these inadequacies, the communities can well identify them--waiting mothers' shelters, health centers, clinic dispensaries/maternity, staff housing, boreholes--as priorities for funding from MASAF. Some activities which lend themselves to immediate funding include: pit latrines, refuse disposal pits, clean water supply or drug revolving funds. MOHP policy on facilities, staff deployment, drug supplies and commodities, and standard designs will need to be sufficiently flexible to allow facilities to be constructed2 and drugs to be procured and sold by communities. 1.15 Water. The water resources in Malawi are abundant, yet the access to safe water is as low as 53 percent (1991) of the population. Aside from the lakes and Shire River, availability depends largely on the seasonal rainfall. Groundwater potential is currently exploited for drinking purposes by 9,700 boreholes and 5,600 shallow wells. While the present coverage is clearly low, an additional problem is inadequate maintenance and repair. Recognizing these issues, GOM in May 1994 adopted a comprehensive Water Resources Management Policy and Strategy which comprises policy reform and institutional restructuring, and recommends transforming the organization and processes for rural water supply to a more community-driven approach. The ongoing IDA-assisted Water Project addresses the sector as a whole, with major emphasis on restructuring and financing of urban water systems. Its coverage of rural water supply is limited. Additional investment in rural water supply, promoted through community co-financing and participation, is essential for the better health of the rural population. 1.16 Agriculture and Environment. Rural Malawi has limited scope for smallholders to increase their incomes substantially through agriculture alone, given their limited physical, human, and financial asset base. Smallholders are constrained by the size of their land holdings, limited tools and equipment, and poor assets (such as livestock) available for exchange to meet urgent food or investment needs. Since most smallholders do not produce enough food or cash crops to achieve basic household food requirements, it is critical to adopt policies, programs, and projects that improve and enhance their endowments over time, while generating increased income and exchange opportunities in the shorter term. The project could increase incomes in both the short- and long-term and improve exchange opportunities by lowering transaction costs for poor smallholders. 2 A simplified design for construction of health facilities under the Project has been agreed to.  8 1.17 Infrastructure. Communication facilities in rural Malawi are minimal. Rural transport is largely under-developed for lack of rural roads. Villagers have to walk long distances to attend markets and health clinics. Women are known to carry headloads as far as 30 kilometers in a day, and twice a week, for milling maize. Lack of transport infrastructure places greater burdens on poor and remote communities. Public works projects, targeting infrastructure improvements (roads, irrigation), would have the dual benefit of increasing incomes in the short-term and helping increase the potential agricultural production in the long-term by lowering production and marketing costs and improving access to new technologies and services. These could also increase the overall level of agricultural and non-agricultural activity in rural areas. 1 .18 Safety Nets: Drought and Public Works Program (PWP). Incomes in rural Malawi are so low that most households are very vulnerable to shocks, in the economy and in the weather. This is illustrated by the sharp devaluation and fiscal restraint undertaken during 1994 which brought about two kinds of difficulties for the poor. High inflation together with demand contraction, led to a decline of real wages for unskilled workers--and for other salaried income groups--and loss of employment. It also increased agricultural input costs for most smallholders who are net buyers of food grains. Drought compounded the problem. This situation calls for an effective safety net for the poor; existing poverty-oriented programs which are mostly credit-based, have only limited coverage. Their impact is marginal because of low coverage, high administrative costs, marketing constraints and poor targeting. Labor-intensive public works, which would normally be appropriate, are all but non-existent. A well-targeted public works program could be an important option for a safety net operation, mitigating temporary hardships and contributing to long-term development. For example, improved natural resource management achieved through planting vegetative cover (trees and grasses), terracing, and water harvesting, all highly labor-intensive activities, can have significant public and private benefits. 1.19 To enable the rural poor to fully participate and share in the potential benefits from market liberalization, the pump of the rural economy needs to be primed. Some of this will come from the liberalization of agricultural product and factor markets. However, because of their low asset base, the rural poor would be worse off if paying higher prices for food and basic necessities, and lacking new employment and income- generating opportunities. Public Works Program would provide supplemental income with which poor households can choose to buy food, or inputs to produce more food or cash crops, or to finance cash outlays for non-food basic needs (such as health and education costs). PROJECT RATIONALE 1.20 Poverty is clearly widespread and severe in Malawi and the condition of human resources is dismal. The incomes of most rural Malawians are not sufficient to meet their minimal needs, and health and education indicators are among the worst in the world.  9 Past reliance on a growth strategy that did not lay sufficient stress on strengthening the human resource base, and the over-centralized development administration that failed to elicit wider non-governmental participation, have contributed most to the present situation. Recognizing the situation and the constraints, the Government has made sustainable poverty reduction its central objective. This project constitutes an important step towards ameliorating the current poverty in the country. The project is a vital component of the CAS, and complements other IDA-supported investment projects and long-term growth objectives while creating additional productive employment in rural areas. The Project addresses three most critical poverty concerns. 1.21 First, it allocates resources for programs targeted at the poor. Investment in education, health and nutrition for the poor is essential for sustainable poverty reduction. We have seen that the quality of primary education, which was already poor, has declined critically. The gap in the provision of classrooms is so huge that the construction of 2,000 classrooms will meet only a part of the most pressing needs. Further construction of classrooms and teachers' houses, taking people's priorities and participation into account, will be necessary for attaining a reasonable quality standard. Similarly, investment in health and water infrastructure is critical for reasonable access to these facilities by the poor. An even more urgent need is to create an effective safety net for the poor. Hunger and deprivation of the kind prevalent in Malawi impair the ability to take advantage of available opportunities. Short-term income transfer schemes, such as public works, can provide off-farm employment and increase incomes. These schemes can also be consistent with long-run growth objectives such as improving rural communication, irrigation, water supply, afforestation and rural markets. 1.22 Second, the project seeks to promote a new approach to development by involving communities in project selection, preparation and implementation, while encouraging non-governmental organizations (NGOs), private institutions and government agencies to provide facilitation where needed. GOM's "top-down" style of management and over- centralized administration created significant hurdles to managing development programs, and these institutional constraints are exacerbated by severe capacity limitations within Government. Even where communities were able to mobilize their own contribution and seek Government support and partnership, timely response with the necessary financial and technical assistance has been lacking. Increasing participation of communities and the civil society in the planning and management of community level projects and adopting "bottom-up" processes are now recognized as essential elements of the new development campaign. Acknowledging that all community needs, even the most urgent ones, cannot be met all at once, priorities will have to be chosen and this can be most credibly done by communities themselves. Community participation in identification, preparation and financing will improve prioritization and efficiency in the use of resources. As systematic client consultation undertaken during project preparation has shown, communities are capable of and willing to co-finance activities and implement them. In cases where facilitation is needed, the project allows communities to decide whether and when they need a facilitator, and who they wish to work with. The project itself works largely as a funding mechanism.  10 1.23 Third, the project allocates resources to strengthen monitoring and assessment of poverty in the country. It builds on the process started at MEPD to coordinate efforts to monitor poverty and to improve data collection and analysis. It will continue efforts to analyze household data to inform policy priorities initiated by the recently completed Profile of Human Resources and Poverty. By bridging the poverty data gap and developing analytical skills in Government and private institutions, the project would help inform policy makers and other stakeholders about emerging poverty problems and the strategies required to deal with them.  I1 2. THE PROPOSED PROJECT OBJECTIVES AND SUMMARY 2.1 Objectives. Malawi Social Action Fund (MASAF) will contribute towards poverty reduction in four fundamental ways. Eirq, it will provide additional resources for programs targeted at the poor, that is, fund the creation of village level assets which will be directly beneficial to the poor through investments in primary education, peripheral health services, and safe water. Second, it will promote a new approach to rural development by involving communities in project preparation and implementation, while encouraging government agencies, NGOs and private institutions to assist communities when needed. The Project processes will empower communities by creating opportunities for commriunities to revive the spirit of self help, enabling them to take control ever, and be accountable for, their own development. Third, it will support a district level program of labor-intensive construction to be targeted at the poorest districts as a safety net operation. To these ends, the project will support the operation of a small autonomous MASAF Management Unit (MU) that will appraise, finance and monitor implementation of the project. Fourth. it will strengthen the poverty monitoring and assessment system through financing a Poverty Monitoring Support Facility (PMSF). The PMSF component will support poverty reduction policies and programs by bridging poverty- related data gaps and developing analytical skills in government and private institutions. 2.2 Summary Description. The project has the following three components: (a) Community Subprojects - CSPs (71 percent) will finance activities identified, prepared and implemented by the communities with or without assistance from facilitators who may be government officials, NGOs, private organizations or individuals; this includes an institutional support sub-component (3 percent) that will ensure appraisal and supervisory support by financing the MU staff, field offices, transportation, equipment and operational costs. The component will finance an information, education and communication (IEC) campaign to inform communities and other participants about the demand-driven processes of the project. (b) Public Works Program - PWP (27 percent) will finance a safety net operation in poor and food-deficient areas through labor-intensive public works constructing, rehabilitating and maintaining economic infrastructure. These works will generate significant employment at the rural minimum  12 wage so as to operate as a safety net for those who have no alternative income-earning opportunity. The wages will be paid in cash or a combination of cash and food coupons. (c) Poverty Monitoring Support Facility - PMSF (2 percent) will finance capacity building in institutions to coordinate, collect, analyze, disseminate and use data relevant for poverty reduction policies and programs. DETAILED DESCRIPTION AND PROCESSES 2.3 The project consists of three components: Community Subprojects, Pubiic Works Program, and a Poverty Monitoring Support Facility, whose descriptions and processes are detailed below. Community Subprojects (Total US$50.34 million, IDA US$38.20 million) 2.4 The underlying principles and processes of this component are intended to ensure that activities funded reflect the communities identified priority needs, and that the communities lead in preparing and implementing these activities. Among the factors that should contribute to the success of this component are: management autonomy of the funding unit, flexibility of the rules governing the fund, speed of response to community requests, community participation, and accountability for the funds. The MASAF management structure, the line ministries and private organizations such as NGOs, will facilitate the communities throughout the process. MASAF would ensure that the proposals are appraised using pre-determined poverty-targeting criteria and national sectoral norms (see paras 2.15 and 2.17), and that funding and supervision are adequately arranged. Line ministries would ensure that activities chosen meet national priorities and quality standards. Private and public field agencies would extend assistance to communities on demand at various stages of the project. Community co-financing through contribution is a prerequisite for funding to ensure community ownership and true reflection of demand. 2.5 The MASAF structure operates under simple but accountable rules, autonomous from regular Government procedures. Consistent with the multi-sectoral activities that MASAF will promote, the apex of the MASAF structure is the Project Steering Committee (PSC) comprising Principal Secretaries of relevant ministries and chaired by Principal Secretary, MEPD. PSC approves all funding and functions as a 'Board' of the MASAF; day-to-day management is carried out by the MASAF Manager (see paras 3.4- 3.16). Given the new institutions, roles and procedures involved, this component has been piloted in 19 communities and lessons (see Annex 2 for summary of status) have been incorporated into the project design.  13 2.6 Activities to be funded under this component will include: * upgrading and construction of community infrastructure in education, health, water, and transport sectors, as well as building rural/urban markets, community water points and granaries; * improving delivery of and access to social and economic services (that is, drug supplies, desks, technical assistance, employment); * training to enhance grassroots technical and managerial capabilities and attitudes towards self-managed development; and * initiatives to reorient and build capacities of the community development facilitators (individual community members, extension officers, NGOs, private sector and religious groups), to equip them with skills in participatory planning and implementation in poverty alleviation. 2.7 The demand-driven nature of the component requires that the communities and all other agents are well informed about the MASAF objectives, scope and processes. An IEC campaign has been prepared and implemented at the piloting phase, and has been designed as part of the mainstreamed project. The campaign will further focus on sensitizing and training communities and support institutions (District Executive Committees (DECs) and other community-based workers)). Using print and electronic media such as booklets, logos, pamphlets, radio messages, the IEC campaign reaches potential audiences including beneficiaries, politicians, policy makers, government field staff, NGOs and private institutions. It provides information on key issues such as selection criteria for activities, co-financing requirements and MASAF processes. During the initial phase of piloting, it was learnt that there was insufficient and inaccurate information about MASAF among the public at large. This led to incorrectly formulated project applications which were subsequently rejected. It was therefore an important lesson that an accurately targeted communication campaign is essential for: (a) assisting district level sector officials and facilitators to understand their tasks and responsibilities, and (b) informing communities about how MASAF can assist them. It became apparent during the pilot phase that the electronic (radio) and print media would have limited coverage in rural areas, and that emphasis on announcements at public gatherings would be the most efficient mode of communication. 2.8 For the purposes of this Project, a community is a self-defining entity. It means a group of households able to identify a demand that meets the selection criteria of this Project. The size of a community that proposes a viable activity under the Project may vary between and within urban and rural locations (see Box 2, and A Report on the Research Findings of the SCC, located in the Project file).  14 Box 2: Defining the Communiy The operational unit of both MASAF and the SCC was the "community". During the field work it became evident that definitions vawy between urban and rural areas. More importantly, within these geographic areas the definition varies according to the subject of discussion. In rural areas three different boundaries were defined in terms of legal/administrative, social and resource characteristics. Legal/administrative boundaries are defined universally by the jurisdiction of the group village headman who has responsibilityfor between 5 and 30 villages. In PRA mapping however the "community" was defined by participants as a smaller unit; the village in the case of social maps and a number of villages in terms of resources. The latter depends on geographic features such as catchment areas. In urban areas, the picture is equally complex. The community is spatially defined in terms of the named urban area. Urban communities used this spatial definition, but were conscious of theflux within communities and, in particular socio-economic groups which at times form more cohesive groupings than the "community", per se. Implications for MASAF. It is clear that communities will be differently defined according to the projects demanded. School projects for example might be expected to be submittedfrom a community as traditionally defined within the chieftainship structure, while projects concerned with natural resource management would logically use the resource-based definition of community. Given the demand-based nature of MSAF projects, the community's own definition must be used. 2.9 With or without the assistance of facilitators (see Annex 6), the communities go through the following steps in a typical project cycle, described in detail in the Project Implementation Manual (PIM) (see para 5.1 (a) and Annex 3): (a) identification, (b) preparation, (c) appraisal, (d) approval, (e) implementation: procurement, disbursement, and technical support/supervision, (f) monitoring, and evaluation, and (g) completion. 2.10 Identification. To ensure that activities selected (a) target poor communities, (b) reflect sectoral priorities, (c) meet sectoral normns and standards, and (d) are sustainable, selection criteria (see Annex 7) have been developed through community consultation. The communities are informed about these criteria through the MASAF Orientation Manual (document available in Project file.) and various IEC materials. The process of identification and subsequent project activities are participatory to (a) ensure that weaker groups in the community, such as women and youth, have adequate voice in project decisions and activities, (b) promote transparency in project processes, and (c) guarantee wider accountability and ownership for the project, promoted through community contribution and commitment for maintenance. 2.11 The first step in the identification process is the convening of open meetings at the community level, with balanced representation by gender, age and other categories, to discuss their priority needs and problems. This meeting is convened by the traditional authority (TA) who would have learned about the MASAF through the IEC campaign, or is called by other community leaders, the MASAF Zone Office, Government field staff, or private facilitators. In these meetings, the community decides whether to hire a facilitator, and elects a Community Project Committee (CPC) (see para 3.9). The pilot  15 has shown that the communities with better communication and higher literacy levels and with a history of self-help tend to be quick in identifying and prioritizing their needs. This underscores the need for facilitation for weaker communities. MASAF will provide funding to NGOs, and suitable assistance such as fuel and maintenance to public agencies (Community Development Assistants ) to arrange facilitation in areas where the demand for community projects has lagged significantly. The pilot has shown that communities give priority for social infrastructure such as schools, clinics and boreholes, and that on average it took up to 12 weeks for communities to identify and agree on their priority need3. Box 3: Criteriafor Comnunuty Facilitation Systematic client consultation findings show that more intensivefacilitation seems required in communities where: * there is no extensive experience of indigenous organization or of working in partnership with an NGO * there is no experience ofprevious, completedprojects * there is greater stratification and more extensive socio-economic variation * considerable power is wielded by dominant and influentialpersonalities * authority and representation of views of women carries little weight. SCCr A Report on the Research Findings, May 1995 2.12 Preparation. Preparation of the community project is the responsibility of the elected CPC. It involves providing simple information in a community application form (see Annex 5), developed for the purpose, to allow verification during appraisal of whether selection criteria are met, and that the process of identification followed is consistent with participatory norms. The community application form filled in triplicate is sent to the Zone Office and DEC. Information in the form provides the basis for establishing the viability of the project, such as population size, income levels, distance from a similar facility, other projects being implemented in the community and community contribution. MASAF contribution to the individual project cost is not to exceed US$100,000, unless approved by PSC and IDA. Information sought on the form also relates to the project preparation process, such as the form of community contribution, membership of the CPC, number of meetings held, representation of various In Kazyozyo, Mchinji District, the community had indicated a dispensary unit as the agreed priority until the day of the launch when it was evident from the women that a maternity unit was the priority. In Chichewa, the local language, the word "Chipatala" could be construed to mean either facility.  16 community segments at meetings and the CPC. Communities are required to contribute approximately 20 percent of the total project cost. Since the community may not be able to evaluate their contribution precisely, valuation of their proposed contribution, typically bricks, labor and local materials is made by the MU using market prices. 2.13 Technical specifications and the design options from which communities can choose while preparing their own projects, are provided in the MASAF Orientation Manual. Developing various options and allowing flexibility in the community choosing a design is to maximize the use of local material and expertise while ensuring that the quality standards are not compromised. 2.14 While preparation requirements are simple and can be met by the communities without any external help, the communities are free to propose. The Systematic Client Consultation showed that the communities would not want a facilitator imposed on them. They would like the freedom to choose whether, when and who they wish to assist them from among the public extension staff, private agencies and NGOs. De-monopolizing extension in the context of MASAF activities and creating equal opportunity for public and private facilitation are important elements of the MASAF design, intended to promote community empowerment. Where necessary, assistance for preparation will be provided by the MASAF Zone Office and the line ministry staff. Fees within limits specified by MASAF will be paid for private facilitation in respect of approved projects. 2.15 Appraisal. This ensures that economic viability and sustainability of the proposed project (and its consistency with the overall sectoral priorities) are thoroughly looked into. Broad principles against which a project proposal is appraised relate to: poverty targeting; sectoral norms for technical design and geographical distribution of the infrastructure to serve the population efficiently; sustainability in provision for recurrent financing as needed; and maintenance, community cofinancing and participation. The appraisal is carried out by the multi-sectoral DEC. An important element of targeting is establishing the maximum number of projects that can be under implementation at any time in a zone. The ceiling prevents the better-off zones from getting unlimited projects prepared, approved and funded, and limiting project resources for the relatively poor zones. It provides information about the lagging zones where the ceiling is not reached, so that a targeted IEC and active facilitation can be arranged. Within a zone, targeting is promoted by the DEC members examining the proposal with reference to sectoral distribution norms and identifying how best the proposed location would serve the disadvantaged areas. 2.16 By far the most important task of the sectoral member of the DEC during appraisal is to assess the technical feasibility of proposals with reference to sector norms and to ensure that the recurrent expenditure provisions are available where needed. The District Education Officer would ensure, for instance, that teachers are already hired where classrooms are proposed; the District Health Officer will support a proposal only after being satisfied that provision has been made in the annual budget for health for staff  17 and supplies to run the proposed facility.4 In instances where the DEC officer strongly favors a proposal on its economic merit but there is no provision in the sectoral plan to finance the induced recurrent expenditure, the proposal and DEC's recommendation are forwarded to the PSC for consideration. The concerned Principal Secretary can consider the proposal with a view to finding the needed resource from the ministry's existing plan. MASAF will not fund recurrent expenditures nor proposals for which recurrent funding will not be available. 2.17 The appraisal is carried out in two steps. First, by a desk appraisal in which the Zone Officer, in consultation with the DEC, verifies the proposal to see vihether: it is consistent with sectoral objectives, norms and standards; it is targeted on poor communities; the community is willing to make the required contributions; the project is technologically simple and do-able by the community; and recurrent expenditure induced, if any, will be provided for in the sectoral budget (Annex 6). Where two equally meritorious proposals compete for a single slot, additional criteria for selection will be used which include: the current availability of services in each locality, and location advantage for reaching poor and backward communities. In short, the desk appraisal examines whether the proposal is consistent with the selection criteria (Annex 7). 2.18 The desk appraisal is followed by a field appraisal during which the information contained in the community proposal is verified on the ground to see whether the proposal meets MASAF requirements (see Annex 9 for field appraisal form). Of paramount importance is verification of the community's participation and implementation capacity--their commitment to the project, fair representation, contribution, and ability to manage funds and operations.5 Initiated and coordinated by the Zone Officer, the field appraisal involves the DEC member of the relevant ministry, the CPC and the entire community. 2.19 Transparency of processes at the community level is critical for success. Emphasis is placed on informing members of the community about details of the proposal including its technical aspects, funds required, and the processes involved in executing the work. Confirmation of the self-help contributions promised by the community must be made at the time of field appraisal. The capacity of the community to contribute is appraised with reference to: (a) assessment of other ongoing projects to which the community is contributing, (b) experience in collecting, saving and accounting for funds, (c) assessment of the banking facility available to the community, and (d) experience in procuring materials, tools and equipment needed for implementation. Once field 4 For example, the distribution norm for a health clinic is that no health facility exists within 8 kilometers of the community, the population proposed to be covered is between 8,000 and 10,000 people, and recurrent budget allocation exists to provide a nurse and drugs by the time the unit is complete. 5 Although the SCC findings and pilot experience show that communities in general can manage funds and operations, albeit with training in some cases for book keeping, these abilities would have to be validated during appraisal of individual cases.  18 appraisal confirms the viability of the subproject, the appraisal team including the CPC and the Zone Officer will sign the community application form as having passed desk and field appraisal. Where a project does not meet appraisal criteria, the community will be informed on the spot and, if need be, assisted to revise the proposal for re-submission. The chairperson of the DEC will keep the DDC informed of projects passing appraisal, while the Zone Officer will forward the proposal to the MU. 2.20 Approval. The appraisal process involves examining project feasibility based on the appraisal report and determining whether recurrent financing provisions required are available. As members of the PSC, representatives of line ministries participate in approval decisions to ensure that geographical distribution of MASAF projects is fair and that no facility built under the project remains unproductive for lack of provision for recurrent costs. Approval functions are located at the national level, at least initially, to ensure that MASAF resources are used efficiently and equitably and that corrective steps are taken quickly. The approval of the project is conveyed by the MUto the CPC, ZO and DEC through a Project Approval Letter. The CPC is then required to open a bank account and prepare for the launch. 2.21 Implementation, Procurement, Disbursement and Technical Support/Supervision. Implementation begins with a launch ceremony at which: (a) the community is briefed on the implementation processes, funding and banking procedures, (b) the amount laid out for community contribution is stated, (c) arrangements for labor contracts and technical supervision are explained, (d) the Community Project Agreement (see PIM in the Project file) is signed by the chairperson of the CPC, the Zone Officer and the representative of the relevant ministry, (e) relevant contract documents are signed and the check for the first tranche of the MASAF assistance is handed to the community, and (f) the next steps for communities are stated. The CPC will ensure that there is clear division of responsibilities among its members. MASAF releases the second and further tranches to the subproject account against certified completed works. For the sake of accountability, two or more persons should be responsible for procurement, bookkeeping, supervision and storage. Processes relating to procurement and disbursement are discussed in Chapter 3, and are laid down in the PIM (see Annex 3 for table of contents). Technical support and supervision of project activities will be provided routinely by the relevant ministry extension officers and where this is not feasible, technical supervision will be contracted out.. Supervision costs will be borne by MASAF. The Zone Officer and the district head of the line ministry will monitor the project work. 2.22 The requirements that the communities handle funds and implement the projects are mandated to promote speedy implementation and community empowerment. However, these requirements raise issues of capacity and accountability at the community level. As evidenced by the SCC, communities are generally confident of their capacity to manage the activities that MASAF would fund. This conclusion has been validated by the pilot experience. As the Project proceeds, some communities may show inability to manage their projects, a matter which would be dealt with by MASAF arranging facilitation actively. Accountability is ensured by participation and transparency in  19 decision making at the project level, the requirement of community contribution which promotes ownership and community's stake in the project funds, and the system of linking release of tranches to verification of work done and expenditure incurred with the earlier tranches. 2.23 Monitoring and Evaluation. A system of monitoring and evaluation will be established by the MU which will involve line ministries, NGOs and beneficiaries in routine feedback and reporting (See para 3.37). Routine reporting would cover physical progress on works, adherence to procedures, and financial record keeping. A set of performance indicators will be used to monitor progress through routine reporting, site visits, meetings and workshops; specific evaluations will be carried out during the life of the project including beneficiary assessments. At the end of each project, MASAF will issue a certificate of completion which shows, among other things, the total expenditure as well as community concurrence that activities specified were carried out. Although there are some risks of accountability lapses occurring at the community level, the process is designed to be transparent enough to motivate communities to demand full accountability for project funds from those assigned implementation responsibilities and to insist on restitution if losses occur. 2.24 The credit will finance CSP which will primarily include: costs of materials for construction of schools, health facilities, boreholes, and economic infrastructure; technical assistance, training and workshops; office space and equipment; motor vehicles and other operating costs of the MU. The credit will also finance equipment and supplies; technical assistance, training and workshops; printing and dissemination costs for an IEC carnpaign in support of the project. Public Works Program (Total US$19.47 million, IDA US$16.80 million) 2.25 The PWP component will finance safety net operations in poor and food-deficient areas through labor-intensive public works involving construction, rehabilitation and maintenance of rural infrastructure. These works will generate significant employment at the rural minimum wage to provide a safety net for those who have currently no off-farm income earning opportunities. The wages will be paid in cash or a combination of cash and food coupons. The principles underlying the PWP emphasize: (a) targeting poor areas, (b) high labor intensity, (c) economically productive assets such as rural roads, minor irrigation, land development works, community forests, (d) accountability and transparency in wage recording and payments, and procurement of materials, (e) a joint management structure at the district level to promote higher transparency and accountability, as well as pooling of public management resources at the district level to  20 overcome capacity constraints,6 (f) private sector participation in supervision and execution of works through minor contracting already tried successfully in the country and (g) gender considerations. The work selection criteria and principles of implementation are provided in Annex 10; detailed procedures are contained in dhe PIM. 2.26 This component differs from the CSP in objectives, targeting mechanism, and processes for identification, preparation and implementation. The main objective of the PWP is to transfer cash resources to the poor by employing them in building productive common assets. Under the CSP, however, communities identify, manage and cofinance their projects; income generation is incidental to community empowerment and creation of community assets. The poor gain from these through access to basic services such as education and health. The PWP complements the CSP by transferring cash resources to the poor for meeting their immediate nutritional and development needs. Accordingly, PWP activities, unlike CSP, are determined to have relatively high labor component (such as rural road, minor irrigation). To ensure that the PWP benefits reach the areas of deepest poverty, 'top down' geographical targeting, planning and management is necessary. In contrast, CSP activities are community demand-driven, community cofinanced and identified, and are prepared and implemented by communities. Community consultation is common to both components, but a more active presence of public agencies is necessary under the PWP to ensure that assistance to mitigate seasonal hardship is organized on a timely basis. 2.27 The program will be managed by the District Team of Government officials (see para 2.31 and 3.13) who will have the overall responsibility for identification, preparation and implementation. MASAF will ensure appraisal, approval and funding of works. The actual execution will be carried out by the concerned sector ministry at the district (e.g. the Work Supervisor of the Ministry of Works), who will be hiring labor in conjunction with the communities. While this will be the dominant mode of execution, some specific works such as construction of bridges and culverts might be contracted out to private contractors through the existing minor contract procedures. The use of private contractors is essential specially to alleviate the capacity constraints of public agencies. In case where parts of works are executed by private contractors, public agencies would still manage targeting, identification, preparation of works, tendering and administration of contracts, and see that equity goals are not compromised. This calls for pooling of The available capacity at the district level is currently fragmented, so that no single line ministry seems capable of implementing a safety net program . For this project, the responsibility of management at the district level rests with the District Team comprising the District Commissioner, the Council Clerk and the MOW Supervisor. Each person brings his strengths in organizing communities and coordinating, handling funds and accounts, and taking responsibilities for technical input. Each of the three has contributed strongly to implementation of the pilots. The district commissioners have proved very effective in coordination and mobilization. Their liaison with project committees has helped promote the project and has prevented disputes. The district council staff have successfully handled procurement and labor payments to allow the district MOW/DRLMP staff to concentrate on labor management and the technical aspects of the works. All three districts report that the three entities are able to work smoothly together.  21 sectoral resources at the district level (see para 2.31) and adoption of the District Team approach. While the pilot experience has demonstrated the feasibility and benefit of this approach (para 2.51), its validation will have to come from the more widely implemented program. It remains to be seen whether there are tangible incentives for the departments to work together and whether this arrangement is stable. It is also essential that the program not be confined to building rural roads and that other activities such as minor irrigation, land improvement, and reforestation are promoted over time. While the pilot design has been based on international and African experiences, and addresses many of these concerns, more experience is needed to evolve a fully responsive program. Consequently, the performance of this component will be reviewed annually and lessons learned will be used to adjust the size of the component and its implementation mechanism. 2.28 Identification and Preparation. The responsibility for identification will primarily rest with the District Tearn comprising the District Council Clerk, the District Commissioner and the Works Supervisor of the Department of Works. A two-step targeting process has been adopted to identify activities under the program. First, Extension Planning Areas (EPAs) where household food shortages are most severe are identified. Out of 180 EPAs in the country, about 45 might benefit from the program annually, and these EPAs are likely to fall in 15 districts. Because of wide disparities within each district, targeting by district was considered to be too slack. Selection of EPAs will be guided by the Vulnerability Assessment Monitoring System (VAM) and poverty indicators will be developed as part of the GOM's Poverty Monitoring System (PMS).' MASAF will develop a suitable EPA selection criteria for public works using VAM data and the key poverty indicators developed as part of the PMS. Targeting criteria and selection of EPAs will be approved by the PSC. It is expected that 15 EPAs will be selected during 1996/97 and 45 in each subsequent year during the project. During the piloting of the program, one EPA each in Mulanje and Machinga Districts, and three EPAs in Ntcheu District were selected using this approach. 2.29 The second targeting step will involve selecting appropriate works in consultation with communities of the affected EPA which meet the selection criteria (Annex 10). The District Team will carry out identification in consultation with people's elected representatives such as Members of Parliament and Councilors, communities and community organizations, extension agencies and NGOs. Once a proposal has been identified, the community will elect a CPC to assist the District Team in preparation and subsequent implementation. During piloting the District Teams were successful in The VAM is based on an analysis of crop production data (per capita Kilo Calories) and factors such as the availability of food, coping mechanisms at the household level, and other important socio- economic indicators. It is being established in a joint collaboration between the World Food Program (WFP) and the United States Agency for International Development (USAID) Famine Early Warning System. A National Technical Steering Committee has been established under the chairmanship of MEPD. Technical support is being provided by the Famine Early Warning System office in Malawi and financial support is given by WFP and USAID.  22 identifying work proposals and selecting executing agencies in the five EPAs. Six rural road proposals were identified and prepared for piloting. Implementing agencies identified at this stage of the program were Ministry of Works (MOW) for four sites, and the Christian Service Society, an NGO, for two sites. 2.30 Appraisal and Approval. The proposals prepared by the District Team are submitted to MASAF for appraisal and approval. Appraisal ensures that selection criteria are met. The proposals are approved by the PSC. A major concern at this stage is to verify high labor content in the project. During appraisal of the pilot proposals, MASAF found that the proportion of wages in the total project cost was too low because of a higher technical specification. The non-labor component also tended to be high on account of high material cost and low wages in the country. These proposals were revised: this increased the labor component from roughly 16 percent to 36 percent of total cost. 2.31 Joint Management at the District Level. At this level, the project will be managed jointly by the District Council, the District Commissioner and the Department of Works (see para 3.13). This approach pools the available managerial resources and distributes tasks according to institutional strengths. District commissioners coordinate the program, as they do for DDC activities, and using their links with community organizations, mobilize the communities. Their liaison with the Community Project Committees has helped promote the project and prevent disputes during the pilot phase. Since district councils have the best capacity in keeping accounts at the district level, they have been given the responsibility of handling funds and accounts. During the pilot phase, the district council staff have successfully handled procurement and labor payments to allow the district MOW/DRIMP staff to concentrate on labor management and the technical aspects of the works. This collegial structure is also meant to ensure transparency. Procurement and disbursement decisions are required to be approved by all the three members of the District Team. 2.32 Implementation. While the responsibility of identifying, preparing and overall management of the program rests with the District Team, execution will be entrusted to a public agency: the district MOW office for roads and bridges, or to private contractors and NGOs. While the execution will be the responsibility of the concerned ministry (Work Supervisor of MOW for a rural road), who will hire labor in conjunction with the communities, parts of a project, such as culverts and bridges might be contracted out to private contractors. Private sector participation in the execution of works is meant to alleviate capacity constraints in public agencies, as well as to promotes private sector capacity building. The District Team will award minor contracts according to the 'minor contract' procedures of the MOW's District Roads Improvement Program (DRIMP), and outlined in the PIM, which is based on competitive selection. The principles governing implementation include ensuring transparency in hiring and remunerating, strict accountability for payments, quick response in initiating works, economic value of assets built, enhancing benefits for women, ensuring safety of tools, and close monitoring and supervision. While labor and material to be procured are determined by the executing  23 agencies, approval of quantities is the responsibility of the District Team. The receipt of material, labor attendance and wage disbursements are counter-signed by community members (see PWP PIM for details - Project File). 2.33 Supervision. Works will be technically supervised by the concerned line ministry at the district, for example, the MOW district staff for roads. The work of the district staff will be further supervised by the regional and national offices of the departments concerned (the practice for normal departmental works). Where the existing regional and national staff is unable to handle supervision, MASAF will hire private agencies/consultants. The supervision procedures (the minimum extent of supervision for each work) are specified in the PIM. 2.34 Links with Technical Ministries. Existing district technical and financial procedures proved adequate at the pilot stage, but these need to be improved and updated so that increased work-load during the full-scale implementation can be coped with efficiently. Active involvement of technical ministries would be essential for tbis and for providing adequate supervision and quality control. MOW is participating in the development of the program and the management of the pilot. To this end, MOW has assigned a desk officer in the ministry for the MASAF program. The Ministry will assist the MU with: * adapting MOW procedures and forms for use under the PWP, reviewing and updating them on an ongoing basis; * supervising the pilots and the mainstreamed program; * assisting with the contracting of technical supervision, and * developing alternative labor-intensive activities within the program such as construction of small irrigation systems, road maintenance, land development and reforestation. 2.35 Monitoring and Evaluation. PWP will be monitored using progress indicators (Annex 1 1). MASAF will constitute monitoring and evaluation teams from time to time to check on physical progress and financial reporting. A reporting system being developed will be linked to the management information system being set up at the MU. MASAF will undertake evaluation of the program impact through beneficiary assessment to be organized as part of the PMSF activities. On completion of works, the Team will prepare a report on activities and their costs for submission to MASAF. At the end of the MASAF project, Government's domestic resources should phase in for the maintenance of the assets created. Poverty Monitoring Support Facility Component (Total US$1.51 million, IDA US$1.00 million) 2.36 Background. The GOM initiated some major efforts in 1994/95 to improve coordination of poverty monitoring activities, to promote use of poverty data and to avoid  24 duplication in data collection or analysis. A national Technical Working Committee (TWC) for poverty monitoring has been established, comprising all relevant Government institutions and NGOs, Bunda College, Center for Social Research, and various donor agencies that operate in this field.8 Five TWC meetings and two working sessions have been held during 1995 and up to February 1996 to discuss establishing an institutional framework for establishing a Poverty Monitoring System (PMS): identifying priority indicators for monitoring, stock-taking of existing monitoring activities, identifying gaps, and developing a plan of action for poverty monitoring. The Poverty Alleviation and Social Policy Section of the MEP&D convened the TWC meetings9 and prepared a PMS concept document Nature, Scope and Action Plan for the Poverty Monitoring System (latest edition, version 3.6, February 1995) stating the priorities for poverty monitoring in the country. The GOM expects donors to assist in the coordinated monitoring effort by financing elements of the core program identified by the TWC. In this spirit the MASAF component, Poverty Monitoring Support Facility (PMSF), will provide financing for elements within a core poverty monitoring program identified by the TWC. 2.37 Objective. The PMSF component of MASAF will assist GOM to monitor poverty by financing the essential building blocks for collection and analysis of data relevant to track progress in poverty reduction and to help guide formulation of poverty alleviation policies and programs. The Poverty Monitoring Support Facility (PMSF) will provide financing in the following areas: (i) the strengthening of technical capacity of institutions to co-ordinate, collect, analyse, disseminate and use data relevant for poverty reduction policies and programs; (ii) the development and implementation of an Integrated Household Survey Program at the National Statistical Office; (iii) the provision of funds for poverty analysis. The particular activities to be financed under the PMSF will be specified in annual work programs prepared by the TWC and agreed with IDA at the beginning of each annual period. The MASAF MU will not be responsible for technical appraisal of use of PMSF funds but will disburse PMSF funds as per the agreed annual work program and the MASAF Financial and Accounting Manual. 2.38 Strengthening Technical Capacity. In support of the objective of achieving a streamlined and cost-effective PMS, it will be necessary to consolidate existing data 8 The members of the TWC, as of February 1996, were: MEP&D (chairperson), office of PAP coordinator, NSO (agriculture and economics section), Ministry of Health and Population (CHSU, HIS & Planning Section), Ministry of Women and Children Affairs and Community Development (MSU and Planning), Ministry of Education, Ministry of Agriculture & Livestock, Director Center for Social Research, Bunda College (Rural Development, Agriculture Policy & Research Unit), Executive Secretary for CONGOMA, UNICEF (Monitoring Unit), Director for the World Food Program, Ministry of Research and Environmental Affairs, Ministry of Irrigation and Water Development, Ministry of Local Government & Rural Development, Chamber of Commerce, IMPACT (Initiative for the Mobilisation of Private Action). The development and design of the national Poverty Monitoring System will continue to be guided by the TWC. 9 A permanent Poverty Monitoring Unit within this section at EP&D is proposed to be the secretariat of the TWC. Although full staffing decisions of the PMU is awaiting GOM approval, the PMU has recently recruited three economists and has started functioning in a limited way.  25 collection instruments, strengthen selected ones and commission new instruments as necessary. Moreover, in order to ensure the data is policy relevant and is used by policy makers, program managers in ministries, NGOs and communities, it is necessary to maintain constant dialogue between the users and producers of poverty-related data and to ensure timely analysis and dissemination. It will also be necessary to have a Poverty Monitoring Unit (PMU) with the personnel, skills mix and infrastructure iequired to maintain co-ordination of these activities and to achieve the most effective forms of dissemination and policy impact. In order to assist the GOM in achieving these objectives, PMSF funds will be available to finance a range of activities which would strengthen the capacity of institutions to achieve identified PMS goals. These activities can include financing for technical expertise on aspects of poverty monitoring, training, equipment, data user-producer workshops, publications. The TWC will identify the specific capacity development activities which will be financed under the PMSF. Furthermore, it is expected that funds for strengthening technical capacity will be used to finance preparation and production of an Annual Report on poverty status and policy implications. The annual report will draw on the core PMS program to build an analysis of the core poverty indicators, an evaluation of the impact on poverty of policies and program interventions, and indicate the specific policy implications for instruments such as the PSIP, PFP, DevPol, etc. and various targeted programs such as the 5th Country Program, MASAF, etc. The TWC will decide on priority research areas and focus for the annual report. It is expected that the draft report will be available for discussion by end of October each year. This will facilitate the presentation of the annual report on poverty, economic and social policy at the CG meetings in December. 2.39 Development of an Integrated Household Survey Program at NSO. The second major stream of financing under the PMSF will be for the development and implementation of an Integrated Household Survey Program at the NSO. Development of an IHSP will involve long-term planning of the topics, sample size, frequency, use and resource needs of household surveys. The NSO will carry out a household survey on a core set of indicators on a regular basis. Periodically, supplementary modules will be added depending on demand. The objectives of the IHSP are to: * provide rapid reliable information on key indicators of living conditions regularly; * establish a cost-effective data collection system which is comparable and stardardized; * coordinate social statistics within the NSO and relevant Ministries; and * provide different users with a system of social indicators to monitor social development. 2.40 The development of an IHSP at the NSO will be guided by a user-producer sub- committee of the TWC established in January, 1996. The committee is chaired by the NSO and has representatives from CSR, Bunda College, and the EP&D (as the representative of the PMU). The PMSF will finance the development of the IHSP under  26 the guidance of the committee, including improvements in the integration and collaboration across surveys 1, technical support for the design of the questionnaire and the technical preparation for data collection, processing, and dissemination. The emphasis of PMSF financing is intended to be on the planning, design and development phase, including field-testing. The World Bank will assist the GOM in finding donor support for the initial implementation of the IHSP . It is expected that over an agreed period, the financing will be internalized by the GOM through an increase in its share of financing of the survey program. 2.41 A Program of Poverty Analysis. There is an abundance of poverty relevant data in Malawi. Data exists in ministries, local government, university and National Statistical Office, research institutions and donor agencies. Although there is an active and well organized research community in Malawi, gaps exist in analyzing the data and making results of the analysis available to the public. PMSF resources will be used to initiate a program of studies whose main purpose would be analysis of poverty issues and the effects of economic policies on poor and vulnerable groups. The resources for poverty analysis will be used to build on and improve linkages between the research community, policy makers and implementors and assist in dissemination of results. The specific objectives for the analysis program are to: * identify the effects of social and economic policies on the poor and vulnerable with a view to developing programs which would cushion adverse effects; * assist in the formulation of policies and implementation of programs so that effective targeting of social safety net activities can be improved; * improve the dialogue between data collectors, researchers, policy makers and implementors so that relevant data is collected, analyzed and used in a timely and appropriate manner and presented to policy makers; and * encourage the use of poverty-related studies as means to build analytical capacity at different levels of society (research, students, NGOs, journplists, communities, etc.). 2.42 Main activities supported in the program of poverty analysis will be: * small studies conducting in-depth analysis on specific topics; * beneficiary assessments and cost-effectiveness/cost-benefit analyses evaluating social safety net activities such as MASAF community projects; * participatory Poverty Assessments focusing on geographical areas identified as severely poor; and 10 The committee will explore the ways in which the design of the IHS can be coordinated with the proposed DHS, the Census and the M4E (Monitoring for Empowerment) data collection program. It will also integrate the plans for completing processing of the 1992-93 NSSA data. l Depending on the availability of such funds, however, the World Bank and the TWC would review the possibility of using PMSF funds for actual implementation expenditures of the first IHS.  27 * national poverty studies conducted annually on priority indicators of poverty; these will preferably be done by established research institutions such as the Center for Social Research, Bunda College, and other sections of the University of Malawi, and will feed into the production of the annual report on poverty status and economic and social policy. 2.43 As per its mandate to coordinate poverty monitoring activities, the TWC will set up a multi-disciplinary sub-committee which will serve as a coordinating technical body for poverty-related research. The Poverty Analysis (PA) sub-committee will consist of members of the TWC and include assigned PMU personnel. The terms of reference for this Poverty Analysis (PA) sub-committee will be defined by the TWC. As a part of its tasks, the PA sub-committee will appraise studies to be funded from PMSF resources. The PA sub-committee will assist in appraising study proposals, identifying data sources, providing guidance on research methodologies relevant to the study proposal. It will recommend studies to the TWC for approval. The sub-committee is also required to report back to the full TWC on progress in studies under implementation. The MASAF Beneficiary Assessments will be managed and coordinated with the MASAF management unit. The PMU will be responsible for dissemination of research findings. In order to facilitate the functioning of the program for poverty analysis, the TWAC may, at a later date, identify the need for technical assistance. The Study Cycle for all studies financed under the PMSF is described in Annex 12. 2.44 It is expected that as it starts functioning, the PA sub-committee will begin to coordinate studies to be financed not only through the PMSF, but also by other donors and GOM. This will avoid duplication and encourage economies of scale in conducting analysis. 2.45 The credit will finance: technical assistance, training, workshops, equipment, supplies, and incremental operating costs. LESSONS LEARNED 2.46 International. The social fund approach has been used successfully in many developing countries during the past decade, and the World Bank has supported over 30 such funds worldwide. Experience'2 has shown that the most successful funds have fostered community initiative, enjoyed political support at a high level, involved other agencies (which coordinates effort and ensures sustainability), employed qualified staff with autonomy to operate, used simple procurement procedures, practiced frequent supervision and established learning mechanisms to modify their way of working when necessary. Their effectiveness depends on having clearly defined objectives and transparent criteria from the outset. Experience shows that social funds do not reach the 12 "Social Funds: Strengths, Weaknesses, and Conditions for Success" L.S. Khadiagala, January 1995, ESD Discussion Paper Series, World Bank.  28 poorest groups easily and that to reach the very poor, an active outreach strategy is required. The funds face tradeoffs between rapid implementation and active community involvement. Social funds are not a substitute for sectoral reform and capacity building, and their activities must be geared to complement sectoral priorities. 2.47 Depending on a country's circumstances, social funds have emphasized creating infrastructure and employment or building capacity at the community level. The two approaches can reinforce each other, but they can affect communities in different ways and rely on different implementation procedures. MASAF has adopted a mix of the two objectives, emphasizing the creation of infrastructure and employment in the near term, while building the capacity to implement community-based interventions throughout the country in the longer term. 2.48 In-country. The design of MASAF benefited from review of relevant on-going in-country activities carried out by other donors; data are available in the Project file. In one example, while activities strengthened institutions at the district level, the decision- making structure was still "top down". In another, although there was high community ownership, the speed of implementation was slow. In yet another instance where development activities included resource flow to beneficiaries, 40 percent of these funds were expended on administration, which reduced the amount of funds available for beneficiaries. While building on the strengths of these projects, MASAF attempts to go further by making project processes more demand-driven and assigning critical decision making tasks and responsibilities to communities. MASAF allows a level playing field for GOM and non-government facilitators, while keeping the choice with the communities as to when and which facilitator to use. Piloting allowed core decisions regarding functions, structure and staffing proposed for MASAF to be made and for the procedures and processes to be used under the project to be formulated and tested. Nineteen subprojects were approved as of December 8, 1995; work has begun on ten sites, seven await completion of geophysical surveys and start-up of drilling by contractors and three are on hold because of problems with community contribution. The President launched the first subproject in September 1995; 1,100 persons from the community presented themselves for work at one of the PWP sites. To cope with the fast pace of expenditure, a supplemental Project Preparation Facility of $1 million was processed, raising the total to $2 million. 2.49 National Level. Experiences at national level, where decisions on policy, management structures and approvals are made, differ from those at district and community levels where processing and implementation occur. Creation of an autonomous public institution such as MASAF was a new experience for the Government; autonomy came slowly to MASAF in spite of Government's willingness to act and communities' expressed demand. Strong political support for the projec. in the end assured speedy decision making in the project's preparation; particular referenLe should be made in this context to the frequent meetings held by the PSC to expedite decisions on project proposals. MASAF faces dilemma. While it has the advantage of a fast-disbursing facility (speed of response to approved funding requests), its core  29 requirement of letting communities drive the process slows the pace. Much facilitation will be required initially for the first sub-projects, which will necessitate visiting, explaining and training "on-the-job" DEC officials, facilitators and communities. IEC is a crucial activity of the Fund. Initial indications on the speed of implementation of individual projects (once agreed on and approved) are very positive (eight days to get a school block to the window level at Kamwala), but the estimated time lag from conception to launch is 23 weeks and the average project size is US$ 50,000. 2.50 Some pilot experiences noted by the project appraisal team follow: * the institutional set-up and current and proposed staffing of MU, including the linkages with the relevant sectors, are adequate to initiate implementation of the mainstreamed Project; * communities have experience in collecting, saving and accounting for funds, and they can procure materials, tools and equipment needed to carry out community projects; * the draft PIMs for CSP and PWP are sufficiently advanced and have been used successfully during piloting; * the mechanisms for involving NGOs, private individuals and organizations as contractors for implementing the CSP and PWP components, have been suitably defined during the appraisal mission and have been agreed upon; * capacity building activities are sufficiently advanced according to the report on training to date, and work plans drawn for both the CSP and PWP components are feasible (see Annex 13); * the CSP and PWP targeting and implementation plans have potential for creating community level assets and providing safety nets for the poor; * the project activities under both components are potentially sustainable after project completion since activities funded would then be part of sectoral priorities and programs; * environmental aspects of the project have been given due consideration through provision for landscaping, and contouring, sanitation, water provision, and tree planting at each of the physical sites; * the participation and empowerment of women has been adequately provided for in the project design as demonstrated by footnote 3 page 14; * the arrangements for assessing project impacts through participatory beneficiary assessments have been defined and a schedule of indicators is under preparation; * experience from the CSP piloting has shown that communities in the urban and peri-urban areas have responded slowly (organization), and inadequately (levels of contributions)'3. This has been attributed to lack of social cohesion, 13 The Mtandire subproject community contribution of 40,000 bricks for 4-8 classroom blocks is considered far too low and Naotcha community has not been able to specify what they will be able to contribute. The Mzuzu urban market subproject is faced with the same low to nil contribution from the community.  30 poverty and weak leadership, all characteristics of transient populations. While urban subprojects are less suited to the criteria specified for the CSP (and there is currently no other vehicle to respond to their widespread need), the vocal nature of the urban population makes it difficult for GOM to exclude them from this project. Discussions will continue with the PSC and MU to resolve this dilemma which disadvantages the urban communities as a whole; and inadequate capacity in-country to survey and drill boreholes has resulted in slow implementation of these subprojects. Discussions continue with UNICEF, the Department of Water, NGOs and private agencies to (a) develop a workable strategy to define essential phases in the cycle of borehole provision, (b) identify skills needed to perform at each point in the cycle, (c) assign responsibilities according to the skills of the main actors, and (d) mobilize technical expertise to support the requirements. In order to gain economies of scale, community requests for boreholes have been pooled and packaged before the issue of invitations for contractors to bid. This practice has resulted in projects of this type requiring longer to complete. 2.51 The following PWP piloting results are particularly noteworthy: Targeting. Selection of pilot areas was consistent with the targeting objective. All four EPAs selected for piloting have visibly high poverty incidence; ir. three, most families along the road are already reduced to one maize meal per day. There are very few alternative sources of employment or income. The number of people who would like to work on the roads projects greatly exceeds the available positions. Economic Value of the Assets. Communities value the assets being buiit as contributing to their long-term development as well as providing temporary employment. Their willingness to sacrifice without compensation trees on private lands and portions of private fields adjacent to the roads was indicative of the collective local commitment to the roads. Institutions. (a) Project level--communities have constituted CPCs at the project level and have been effective in labor recruitment, daily labor registration, resolution of right-of-way issues, implementation arrangements and communication between the project staff and communities. (b) District level--the institutional arrangement at the district level has worked smoothly; each official of the District Team - the Distict Commissioner, the Council Clerk and the MOW DRIMP Supervisor - has been able to bring specific institutional strengths to bear on the implementation of the pilots; the district commissioners proved effective in coordination and mobilization; the district council staff have successfully handled procurement and labor payments to allow the district MOW/DRIMP staff to concentrate on labor management and the technical aspects of the works. (c) National level--although recruited principally for work with the CSP component, the current staff of the MU has successfully carried out project appraisal, funding  31 and supervision. A Public Works Division is now being established within the MU, comprising a PWP Coordinator and an engineer, to manage the PWP component of the mainstreamed project. Procedures. Procurement, accounting, and labor payment have been carried out according to procedures and standard practices, and with adequate documentation. This included successful payment in the field of up to 800 workers in a day by District Council staff. Tools were procured locally by all the three districts. In addition to the joint management of the project at and below district level, other measures to promote transparency and accountability, such as separating procurement and payment requests from actual disbursements, and use of CPCs to witness labor payments, have all worked smoothly. Food Distribution. Negotiating the details of food distribution contracts and helping to ensure that food is actually delivered, is difficult and time-consuming for the MU. At the field level, logistic difficulties have delayed food distribution. However, because of food shortages in the project areas, the failure of the commercial market to bring food close to the people in need, and the lower price for maize provided by the food coupons, partial payment in the form of food was appreciated by some laborers where this was implemented. SPECIAL PROJECT ISSUES 2.52 Gender Considerations. Thirty percent of all rural households are headed by women, and this ratio increases to 42 percent for the poorest 20 percent smallholder households. Average food share in the total household expenditure is higher (66 percent) for FHHs than for the male-headed households, indicating a deeper poverty among the former. 2.53 The specific problems that women, particularly the FHHs, face are related to their lower coping abilities. They have lower access to credit and extension, and lower education and health status. Because of the lack of access to technology, women perform highly onerous tasks, such as maize grinding, fuel wood gathering and transportation of water for home use. These constraints notwithstanding, women participate in the labor force in nearly the sarne proportion as men. They are likely to share benefits from MASAF in two ways--by access to employment opportunities and water, health and education facilities which the project will help establish. 2.54 Special care will be taken to ensure that target groups such as poor women, FHHs and other disadvantaged groups benefit fully from MASAF. The project promotional activities will focus attention on women's priorities and needs and support women's involvement in the design, implementation and management of subprojects. The monitoring and evaluation system will track the participation of women in MASAF projects and the effects on female beneficiaries, especially in areas and kinds of projects where opportunities to reach women have previously been missed. Women's  32 representation in CPCs was achieved during piloting and will be emphasized during implementation. All MASAF staff and facilitators will be trained to maximize benefits to women's and encourage their participation. 2.55 Environment. The project will have no adverse environmental impact and has received a rating of C. No environmental assessment is necessary. Environmental concerns will be built into subproject appraisal and monitoring criteria as in the Facilitators' Manual in the project file. For the CSP, terracing of the building site, planting of trees, drainage at the water facility, and provision of latrines with appropriate vents will be emphasized at the design and appraisal stages. MASAF will ensure that its staff and DEC members are trained in environmental requirements, which will also be specific aspects of project monitoring (see Field Activity Monitoring Form, DEC Manual). Construction using unburned bricks has been piloted successfully and is expected to be used by communities on a significant scale. For rural roads under the PWP, care will be taken to provide adequate culverts, bridges and side drainage to ensure that the natural drainage system is not interfered with. The PWP activities such as land improvement by terracing and planting of vetiver on field boundaries, reforestation and minor irrigation, will lead to greater soil-moisture conservation, recharge of underground water resources, and improve flora within the project areas. Overall, the project is expected to have a positive environmental impact. 2.56 Poverty Targeting. The CSP component of the project is demand-driven and self-targeting. The findings of the Poverty Profile demonstrate how pervasive poverty is in Malawi, especially rural poverty (as a percentage) which makes it highly likely that rural project requests would be from needy communities. Given this, accurate targeting at the start of the project may not be imperative or be likely to yield different results. Subsequent geographical targeting, which would link population density by district with subproject concentration, could be adopted to ensure that poor and remote areas have reasonable access to project benefits (see para 2.10). In two years, when more experience has been gained, greater precision could be built into the targeting, using criteria such as current access to services and visible measures of wealth such as motor cars, or bicycles in the community. GOM has constituted an inter-ministerial group of officials to decide on targeting criteria. One option being examined is to demarcate zones according to population, with each zone being allowed to handle a given number of projects. Some zones might be allowed to engage staff and have financial outlays roughly in proportion to their population. Demand- constrained poverty areas could also be supported by MASAF devoting greater resources for IEC and facilitation services to these areas. PMSF funds for poverty analysis can be utilized to develop an appropriate set of indicators for ex-ante targeting. These can be incorporated in the project at mid-term review.. 2.57 The PWP component of the project will adopt a two-step geographical targeting of poverty--first by selecting EPAs with highest poverty incidence, then by locating a targeted EPA in those parts worst affected. Further analysis of ways to improve criteria for targeting will be supported under the program of poverty analysis financed by the PMSF component. As to targeting individual households, a self-targeting mechanism is  33 promoted by the project through keeping daily wages at the level of the minimum rural wage which is lower than the market wage (during piloting the daily wage is MK7.50; MOW pays MK12.00 per day to unskilled labor in their regular programs).  34 3. PROJECT IMPLEMENTATION 3.1 Project preparation was guided by learning by listening and doing through SCC and piloting experiences before mainstreaming. The project design further allows procedures and institutional roles to evolve during the life of MASAF. There is continuous trial and upgrading of the procedures as the new approach gains root. The project processes inform the development of MASAF, and act as catalyst within sectoral ministries. Continuous consultation with the communities with the help of beneficiary assessment exercises will provide periodic feedback. The project will be managed in accordance with guidelines and operational procedures set out in a Project Implementation Manual (PIM) for the operation of the Community Subprojects and the Public Works Program (see Annex 3 and para: 5.1). SYSTEMATIC CLIENT CONSULTATION 3.2 The SCC was carried out during the identification stage of the Project to elicit information on key project design issues relating to community organizations and institutional network, community experience and attitudes towards community development and community-level skills, particularly the feasibility of direct community financing. Nineteen communities were interviewed and their views obtained; these findings were confirmed by two further SCC actions carried out by the Agriculture and Environment Division of the Southern Africa Department. To continue the listening and learning mode, beneficiary assessments will be conducted at regular intervals, first 12 months after project effectiveness, and then annually over the life of the Project (see para. 2.42). These assessments will rely on a mix of qualitative and participatory research techniques similar to those used during the initial SCC activities and known to elicit a wide range of voices within communities. The SCC will also feed into the monitoring exercises (see para. 3.36). INSTITUTIONAL SETUP 3.3 Both CSP and PWP are community-responsive and will use MASAF mechanisms to disburse funds rapidly and directly to projects. The identification, implementation and management of subprojects will be the responsibility of communities. For the PWP, this function is undertaken by the District Teamn. Selection criteria and processes are discussed in Chapter 2. An organogram is given in Annex 14, and a chart of the project cycle for CSP and PWP is given in Annex 4.  35 3.4 Management Structure. MASAF will be managed by an autonomous MU based in Lilongwe. During negotiations, agreement was reached between the GOM and IDA that the MU will be responsible for implementing the project (para: 5.2(a). A PSC chaired by the Principal Secretary for MEPD, with members from key sectors, NGOs and the National Commission for Women, will oversee the work of the MU. The PSC will (a) provide overall guidance on management of MASAF; (b) give direction and guidance in the interpretation of Government and sectoral policies; (c) approve MU's annual work plans; (d) approve project proposals for MASAF funding; and (e) ensure that secioral budgets accommodate recurrent expenses required for use of MASAF project outputs. Details of MASAF's structure at all levels are given in the Financial and Accounting Manual and Administration Manual available in the Project files. A description of the activities carried out by various participants follows: 3.5 Management Unit (MU). The MU has five divisions at its central office: Technical Services, responsible for technical appraisal of project proposals, technical supervision and procurement; Field Operations, which supervises field operations and assists zonal staff in appraisal and monitoring of community projects; Finance, which is responsible for day-to-day financial management of MASAF, preparation of its annual operations budget, disbursement, accounting and auditing; Administration, which is responsible for routine office administration, public relations and procurement at the center and the regions, as well as coordination of contracts; and Public Works Division comprising a PWP Coordinator and an engineer who, with support from the Administriaion, Management Information Systems, including Research and Evaluation, and Finance Divisions, will manage the PWP component. A Manager appointed by GOM serves as the chief executive of MASAF and Secretary to the PSC. The Manager's duties are to (a) recruit and administer personnel according to the procedures laid out in the Finance Manual and Administration Manual; (b) prepare the annual work program and budget; (c) oversee project implementation; (d) coordinate and supervise field activities; (e) promote MASAF activities; (f) negotiate and sign all MASAF contracts; and (g) prepare detailed quarterly reports on the activities and financial status of MASAF. MU staff will require external technical assistance (TA) in implementing and supervising some activities. At negotiations a schedule of TA and training plans for the three components acceptable to IDA were submitted (para: 5.1 (b). To ensure smooth implementation of the Project, it was agreed during negotiations that the positions of Manager, and Heads of Operations, Technical Services, Public Works Division, Finance, Internal Audit and Administration will be filled at all times by staff having qualifications and experience satisfactory to IDA (para 5.2 (b)). During Negotiations, agreement was also reached confirming that the unit price data bank (para 3.24), to be maintained by the Technical Services Unit of MASAF, will be updated every three to six months (para 5.2 (h)).  36 Community Subprojects Structure 3.6 Zone Offices. There are nine Zone Offices, each covering two to three districts (see Box 4) throughout the country, manned by a Zone Officer and an assistant. The Offices have the responsibility of preparing the Zone's annual work plan which includes budgets for operational costs, facilitating communities and other organizations in the approval and implementation of projects, and fostering efficient and effective working relationships with key district level institutions. Details of the Zone Offices' activities are provided in the MASAF Project Concept Document (PCD). Box 4: Zones and Placement of Zone Offices Zone Districts Officer based at 1 Chitipa, Rumphi and Karonga Karonga 2 Mzimba North, Mzimba South Nkhata Bay Mzuzu 3 Nkhotakota, Salima, Dowa Salima 4 Kasungu, Mchinji, Ntchisi Kasungu 5 Lilongwe, Dedza, Ntcheu Lilongwe 6 Machinga, Mangochi, Zomba Liwonde 7 Chiradzulu, Blantyre, Mwanza Blantyre 8 Mulanje, Thyolo Mulanje 9 Nsanje, Chikwawa Ngabu A Zone Officer will be responsible for a maximum of20 projects at any one time. 3.7 DEC. Sector heads and technical representatives at the district level constitute the members of DEC, which is the main technical advisory body to the DDC. As the MASAF link at the district level, DEC, through the District Development Officer (DDO)14, will assist Zone Offices in the desk and field appraisal of subproject proposals. DEC will be responsible for advising the Zone Officer on sectoral norms and requirements, as well as confirming commitment to meet necessary recurrent costs, to ensure that assets created are sustainable. 3.8 Project Facilitators. The principal ownership of the project remains with the communities, who are free to decide whether and which facilitator they want to work with. Facilitators could be GOM field staff, NGOs, private organizations, social and religious groups or individuals and will be primarily accountable to the community. When an NGO is requested to assist the community in any aspect of the project cycle, MASAF will have the responsibility to ensure that the NGO (a) is properly registered In districts without a DDO, assistance will be provided through the Assistant District Commissioner.  37 with GOM and in good standing; (b) has the requisite organizational and technical skills, and adequate experience in the appropriate field; (c) has credibility with the beneficiary group it intends to work with; and (d) has a satisfactory accounting and auditing system. 3.9 Community Project Committee (CPC). To manage project activities, communities will elect a CPC, consisting of a chairperson, secretary, treasurer and deputy secretary supported by elected committee members; the composition of the latter may vary by community. The CPC will prepare, manage and supervise the subprojects and contract-out tasks on behalf of the community. 3.10 Sectoral Line Ministries. The ministries will have the responsibility, through their desk officers, to ensure that adequate budgetary provisions have been made for meeting recurrent expenditures arising from projects approved by them for MASAF funding. Ministry personnel at district and community levels will provide technical supervision to the sub-projects. Public Works Program Structure 3.11 National Level. The MASAF PWD will be staffed by a Public Works Co- ordinator, who will report directly to the MASAF Manager, and by a Technical Officer (civil works engineer). The PWD will receive support from the MU Administration Division for personnel and other administrative needs, from the Finance Division for accounting, disbursements and auditing, and from the Management Information System office for information systems and reporting. Under the authority of the MASAF manager and with the policy guidance of the PSC, the PWD will be responsible for: (a) annual targeting of the public works, (b) appraisal of proposals for public works (c) funding and supervision, (d) liaison with the national ministries to organise their input in the program with regard to supervision and development of procedures, and (e) monitoring and evaluation. 3.12 National/Regional Linkages. Desk officers will be responsible for MASAF- related work in relevant ministries who will work with the PWD to ensure that district level officials support public works projects as part of their routine job responsibilities and that the projects follow national guidelines approved by the PSC. The representatives of the ministries at the national or regional level will assist MASAF staff in the routine supervision of the technical, administrative and financial performance of public works in the districts. 3.13 District Level. The program will be implemented by the District Team comprising the District Commissioner, the Council Clerk and the Work Supervisors of the MOW. The District Team will be responsible for: (a) identifying projects in consultation with communities, local leaders, extension workers and NGOs; (b) identifying an agency for preparing and executing the projects identified--these agencies may include the Ministry of Works at the District level, NGOs or other private agencies, (c) preparing the identified projects; (d) submitting project proposals to the MASAF  38 Manager for seeking PSC's approval and funding; (e) implementing projects in the district; (f) supervising monitoring and evaluating projects; (g) preparing monthly financial reports and quarterly progress reports; and (h) informing local stakeholder; from time-to-time about progress. Note the two-layer supervision arrangement in the component--one in which district staff supervises the work of their subordinates: the other where private consultants and the regional and national staff of the Ministry check the quality and quantity of work done. The dual supervision is applicable in cases where implementation is carried out by public agencies as well as those where small contractors are hired to execute the works. Detailed functions of the team members are described in Annex 15. 3.14 Community Level. Once a project has been identified, the beneficiary community will constitute a CPC which will (a) assist the Task Force or NGO in preparing the proposal; (b) brief communities on project details, including wage rate, amount of work to be undertaken by each worker in a day, mode of payment, etc.; (c) supervise the time-keeper and check the attendance record; (d) sign the labor attendance register and wage bill and payment records; and (e) settle conflicts on project sites. Poverty Monitoring Support Facility Structure 3.15 The Technical Working Committee (TWC), whose members are given in paragraph 2.25, will continue to guide the development and design of a national system to monitor poverty'5. The particular activities to be financed under the PMSF will be specified in annual work programs prepared by the TWC and agreed with IDA at the beginning of each annual period. The MASAF MU will disburse PMSF funds as per the agreed annual work program (para: 5.1 (c)), training plan (Annex 18) and procedures recorded in the MASAF Financial Manual. 3.16 The TWC has set up an IHSP sub-committee to guide the development of the Integrated Household Survey Program at the NSO. The IHSP will be implemented by the NSO. The TWC will also set up a Poverty Analysis (PA) sub-committee to improve coordination and use of poverty-related research. The PA sub-committee will function as a technical advisory committee for studies to be financed under the PMSF.16 The sub- comiiiittee will reject or recommend study proposals for TWC approval and PMSF funding according to agreed criteria and recommendations from technical reviewers. The PA sub-committee will assist in: (i) appraising study proposals, (ii) identifying data sources relevant to the study proposal, (iii) advising researchers and reviewers on methodological and analytical issues, (iv) monitoring progress of implementation of studies and assisting wherever possible in resolving implementation problems (e.g. by organizing research seminars). In the program of poverty analysis, the MASAF MU will 5 The secretariat for the TWC is the Poverty Monitoring Unit in MEP&D. 16 In order to facilitate the functioning of the program for poverty analysis, the TWC may, at a later date, identify the need for technical assistance.  39 initiate and develop the terms of reference for the MASAF Beneficiary Assessments to be undertaken in a yearly cycle. The terms of reference will be submitted to the TWC for their inputs and comments, revised accordingly and then put to tender. The BA team will report on findings to the TWC and the MASAF MU. PROJECT COSTS AND FINANCING PLAN Project Cost 3.17 The project is expected to be implemented over a five-year period, and it is expected that funding for community programs will be fully committed within four and a half years. The estimated cost of the project is US$71.32 million, including contingencies, with IDA financing US$56 million, which is about 78.5 percent of the total. Community Subprojects account for US$48.03 million, or about 68 percent of total project cost. The Public Works Program component amounts to approximately US$19.47 million, about 27 percent of total project cost. Poverty Monitoring amounts to US$1.51 million, about 2 percent of total project costs, and administration amounts to US$2.31 million, around 3 percent of total project costs. Table 3.1 gives a summary of total project costs by component, and as a percentage of the total. Table 3.1: Summary of Project Costs including taxes and contingencies (in US$ million) % of Total that is % of Local Foreign Total Foreign Total Community 43.92 4.11 48.03 8.55 67.34 Subprojects Public Works Program 18.59 0.88 19.47 4.52 27.30 Poverty Monitoring 0.72 0.79 1.51 52.00 2.12 Administration 2.20 0.11 2.31 5.00 3.24 Total Project Cost 65.43 5.89 71.32 8.26 100.00 3.18 Recurrent Costs of the CSP will be provided by the Ministry of Finance directly, or through sectoral ministries, or by communities through their contributions to a maintenance fund. The DEC, at the desk appraisal stage, has the responsibility to assess each sector's ability to meet the recurrent costs which would be generated by the subprojects. For education, teachers are already employed and the Malawi Primary Education Project has provision for textbooks, slates, chalk and other consumable. Recurrent cost expenditures for education materials are being provided by donors through grant funds. For subprojects in water and economic infrastructure, communities' ability to establish a contributory fund for financing operating and maintenance costs will be  40 assessed at desk appraisal and field appraisal and is one of the selection criteria. For subprojects in the health sector, recurrent costs will be the responsibility of the line ministry, MOHP. Financing Plan 3.19 The Project will be financed by the Government, communities, WFP and IDA. A proposed IDA credit of US$56 million will cover about 78.5 percent of total project cost, with approximately 64 percent of the IDA funds being dedicated to the support of CSP, 30 percent for PWP, 4 percent for administration, and 2 percent for PMSF. WFP contributed approximately 1 percent of the total project cost during the piloting phase; the beneficiary communities (through their contributions to subprojects) and the GOM are expected to contribute approximately 20 percent of the total project cost. Government is expected to contribute toward the Project through provision of salaries to public service staff, who will be supervising activities under the Community Subprojects, as well as the Public Works Program. In addition, GOM will contribute 5 per cent of incremental operating costs in the first year and 10 percent in subsequent years (see table 3.4). A detailed determination of the investment items cannot be made a priori, as this depends on the selection of various projects by the communities. Indicative sources of funding are given in Table 3.2. Table 3.2: Project Financing Planincluding taxes and contingencies (in US$ million) |__________ |IDA COM GOM WFP TOTAL Community Programs 36.10 8.33 3.60 0 48.03 PWP 16.80- 0 1.67 1.00 19.47 lPoverty Monitoring 1.00 0 0.51 0 1.51 Adrinistration 2.10 0 0.21 0 2.31 TOTAL 56.00 8.33 5.99 1.00 71.32 TOTAL % 78.50% 11.70%1 8.40% 1.40% 100.00% PROCUREMENT 3.20 The main objective of this Project is poverty alleviation. Successful implementation of this Project will entail flexibility in the application of IDA procurement norms. Procurement procedures will be adapted to reflect the low unit cost and demand-driven nature of the activities to be financed. The procurement guidelines are described in the PCD and PIM prepared by GOM, and conform to the Guidelines for Procurement under IBRD Loans and IDA Credits, January 1995. The Bank-Financed Projects with Community Participation: A Manualfor Designing Procurement and Disbursement Mechanisms (AFTCB, World Bank) has also been consulted. Precise  41 figures cannot be provided at this time, because the exact mix of goods and services which will be funded for the CSP is not yet known, however, piloting activities have been used as an indication of the types of subprojects, and the kinds of related goods and services, which will be funded by this component. The Financial and Administrative Manuals of MASAF have been used during piloting to guide procurement; the experiences and revisions necessary to ensure clarity, simplicity, effectiveness and efficiency will continually be incorporated in the document. Staff with responsibility for implementation at MU have been trained in IDA procurement procedures and will continue to receive guidance from the Task Manager, the Resident Mission, as well as the Department's Procurement Unit, as necessary. IDA has appraised the MU's capacity to manage procurement and found it fully satisfactory. Procurement processes will be reviewed from time to time, as experience accumulates, and processes will be updated in consultation with IDA, with a section in the MU's annual report being devoted to issues relating to procurement, particularly as these relate to the CSP and PWP (see paras 3.37- 3.40). 3.21 To ensure cost savings, contracts for supplies and equipment will be packaged and procured by the MU, as appropriate. To encourage community participation in the CSP component, communities will manage these subprojects purchasing services of skilled laborers and materials locally to ensure minimal delay, as bulk procurement of these items would result in delays and inefficiencies. These contracts are small in value and scattered in nature and would not attract established civil works contractors. Depending on the type and estimated value of the contracts, one of the following methods will be specified for each procurement. 3.22 International Competitive Bidding (ICB) shall be carried out in accordance with IDA Guidelines for Procurement under IBRD Loans and IDA Credits, January 1995, for civil works contracts in excess of US$500,000 equivalent and for goods contracts in excess of US$ 100,000. From pilot experiences, it is expected that these will consist largely of contracts for boreholes, which will be procured by the MU to maximize economies of scale. Domestic preference will be used where applicable in these procurements, as stipulated in the IDA Guidelines. IDA Standard Bidding Documents will be usedfor ICB(see para 5.2 (c)). 3.23 National Competitive Bidding (NCB) shall be carried out for goods such as equipment, furniture and supplies estimated to cost more than US$30,000 equivalent, and up to and including US$100,000 equivalent, per contract, up to an aggregate amount of US$300,000 equivalent. For civil works, NCB shall be used for contracts above USS30,000 equivalent and up to and including US$500,000 equivalent. The aggregate amount for civil works related activities using NCB shall not exceed US$10.3 million equivalent, which will largely consist of construction relating to health infrastructure under Subprojects and construction of bridges under PWP. NCB bidding documents for works and goods, currently being used by other IDA projects and previously cleared by IDA, will be used.  42 3.24 Community Participation. To encourage community participation and increase project sustainability, communities will be managing the projects and purchasing both services of skilled laborers and materials locally to ensure minimal delay, since bulk procurement of these items could result in delays and inefficiencies due to loss during transport and storage. Standard price lists for materials will be maintained by the MU, be updated every three to six months, and be used by communities as price ceilings for those items. Subprojects costing up to $30,000 equivalent per project and US$27.2 million equivalent in aggregate would be implemented through self-help projects, which MASAF would contract out through the Community Project Committees to individuals, private contractors, NGOs and community-based agencies such as private voluntary associations, or Community Development Committees, following procedures detailed in para 2.21. Such implementing agencies selected on criteria established in the Subprojects PIM, will use community labor and will purchase goods or materials through methods prescribed in their contract agreement, (a sample of which is included in the PIM) signed with the communities. Communities will hire contractors of the required skill level, which pre- determines their wage rates, and procure materials and supplies by obtaining quotes from three suppliers, when available, and selecting the supplier with the lowest cost who fulfills their requirements. MASAF will disburse funds to the communities in tranches against certified completion. PWP labor intensive works estimated to cost $30,000 equivalent or less per contract and US$14.5 million in aggregate would be implemented by public agencies through labor contracts with local communities and through contracts with qualified local village contractors selected to the extent possible on the basis of at least three quotations. When not enough qualified local contractors are available, public agencies may resort to direct contracting with a local village contractor on the basis of prices periodically published by MASAF. 3.25 Consultant Services will be procured following IDA guidelines on the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency (1981). The aggregate amount for consultant services will be US$2.81 million equivalent, and will cover technical assistance, workshops, studies such as beneficiary assessments and training activities for CSP and PMSF. The use of the sample letter for recruitment of consultants will be required (see para 5.2 (c)). 3.26 National Shopping. Prudent shopping for contracts estimated to cost less than US$30,000 equivalent, up to an aggregated amount of US$500,000 equivalent may be used for goods to include equipment, vehicles, furniture and supplies, and transport. 3.27 The procurement plan agreed with IDA at negotiations (see Annex 13 and para: 5.1(b) ), and the procurement arrangements summarized in Table 3.3 will be implemented in accordance with the procedures outlined here, in the Procurement Schedule given in the PIM (Annex 3), and the Development Credit Agreement.  43 Table 3.3: Procurement Table (US$ mil.on) Other* methods Community acceptable ICB NCB Participation to lDA N.B.F.** Total I. Subprojects 1.00 7.32 27.23 10.33 45.88 (0.95) (6.95) (26.05) (33.95) II. Works: PWP 3.00 14.47 2.00 19.47 (2.85) (13.95) (16.80) III. Equipment., Furniture and Supplies under: (i) CSP 0.1 0.1 (0.1) (0.1) (ii) PMSF 0.12 0.09 0.21 (0.12) (0.08) (0.20) IV. Consultant Services, Training, Workshops & and Studies under: (i) CSP 2.04 2.04 (2.04) (2.04) (ii) PMSF 0.77 0.77 (0.77) (0.77) V. Incremental Operating Costs (i) MU 2.101 0.21 2.31 (2.10) (2.10) (ii) PMSF 0.041 0.5 0.54 (0.04) (0.04) Total 1.00 10.54 41.70 5.04 13.04 71.32 (0.95) (10.02) (40.00) (5.03) (56.00) Note: Numbers in parenthesis refer to the amounts financed by International Development Association. I Includes US$330,000 for prudent shopping of equipment, vehicles fuel and maintenance, furniture and supplies, and transport. * Other includes Consultant Services, National Shopping and Operating Costs "N.B.F. includes contributions which will be made by communities such as bricks, labor or cash contributions, and GOM's contribution, in the form of salaries for supervisory staff, 5% in first year and 10 percent in subsequent years of the salaries for MASAF unit staff, local operation and maintenance costs, and 0lfo of local costs for equipment, furniture and supplies.  44 3.28 IDA Review. All subprojects with procurement for works contracts of US$500,000 equivalent or more and goods contracts of US$100,000 equivalent or more each will be subject to prior review by IDA (see para 2.12). IDA will review the procurement arrangements for other projects proposed by GOM, including contract packaging, and applicable procedures, appropriate documents, evaluation reports and proposed contract awards for their conformity with the Guidelines. All ICB packages will be submitted for prior-review by IDA. A prior review will take place for the first two works procurements under NCB and the first two goods procurements under NCB. All other contracts will be subject to random post-review. All relevant documentation will be retained by the MU so that post reviews can be conducted as required. For consulting services, prior review of documentation would be required for: (i) contracts with consulting firms with an estimated value of US$100,000 or more; (ii) contracts with individuals of US$50,000 or more; (iii) all sole source selections of consulting firms; (iv) terms of reference for all contracts regardless of value; (v) critical assignments; and (vi) amendments to contracts with consulting firms and individuals that result in revised values greater than US$100,000 and US$50,000 respectively. DISBURSEMENT 3.29 It is estimated that the IDA credit will be disbursed over 5 years, from July 1996 through June 2001. Procurement will be completed by June 30, 2001, which will be the completion date; December 31, 2001 will be the closing date. The proposed allocation of the credit is shown in Table 3.4. Reimbursement for subprojects will be made on evidence of disbursements from the MU to Community Project Committees, for the PWP, reimbursements will be made on evidence of direct transfer of funds to the District Council accounts. IDA will not finance taxes; to ensure this, IDA will only finance 95 percent of amounts paid by MASAF under Subprojects, 95 percent local expenditures on PWP, 90 percent of local expenditures on equipment and supplies, and 95 percent of local expenditure on incremental operating costs during FY1996/97 and 90 per cent in subsequent years. Communities and GOM will contribute an estimated 20 percent of total project costs. GOM's indirect contribution, which includes salaries of technical staff doing desk and field appraisal as well as technical supervision of PWP, is estimated at US$0.7 million equivalent per year over the life of the project.  45 Table 3.4: Allocation and Disbursement of IDA Credit IDA % of Allocation Expenditure Disbursement Category (US$ million) Financed I. Subprojects 30.3 95% of amounts paid by MASAF II. Works - PWP 12.8 100% of foreign expenditure and 95% of local expenditure III. Equipment and Supplies under: 100% of foreign expenditure and (i) CSP 1.04 90% of local expenditure (ii) PMSF 0.20 IV. Consultant Services, Training, Workshops and studies under: 100% (i) CSP 2.04 (ii) PMSF 0.48 V. Incremental Operating 2.14 95% of local expenditure for Costs FYI 996/97 90% for subsequent years VI. PPF 2.00 Unallocated 5.00 TOTAL 56.00 3.30 To ensure that the availability of counterpart funding will not be a bottleneck to implementation, GOM agreed during negotiations to open a Project Account with a Commercial Bank acceptable to IDA and deposit therein, on a quarterly basis (para 5.2 (d)), its contribution. Prior to Board Presentation GOM will be required to deposit its estimated contribution for the first quarter amounting to Mkl.9 million into MASAF's Project Account for that purpose (5.3 (a)). Responsibility for maintaining records of this will rest with the MU and these records will be available for IDA review during implementation review missions.  46 3.31 Incremental operating costs include those costs necessary for the operation of the MU, including, but not limited to: salaries, benefits, office supplies, fuel and maintenance of motor vehicles, maintenance of equipment, telephone and other communication charges, office rent and other administrative charges. 3.32 All applications to withdraw proceeds from the credit will be fully documented, except for (a) expenditures of contracts with an estimated value of US$500,000 each or less for civil works, and (b) US$100,000 or less for goods, consulting firms, training, workshops and studies, and (c) US$50,000 or less for individual consultants and all incremental operating costs, which may be claimed on the basis of certified statements of expenditure (SOE). Documentation supporting expenditures claimed against SOEs will be retained by the MU and will be available for review when requested by IDA supervision missions and project auditors. Disbursement and withdrawal procedures are detailed in the World Bank Disbursement Handbook (1992 edition). All disbursements are subject to the conditions of the Development Credit Agreement and the procedures defined in the Disbursement Letter. 3.33 To facilitate disbursements of eligible expenditures for works, goods and services, the Government will open a Special Account (SA) in a commercial bank to cover part of IDA's share of eligible expenditures to be managed and administered by the MU under components A and B of the project. Authorized allocation of the Special Account would be US$3 million covering an estimated four months of eligible expenditures financed by IDA. Upon effectiveness, 50 percent of the authorized allocation, amounting to US$1.5 million will be deposited to the Special Account. The remaining balance will be made available as needed. The MU will be responsible for submitting monthly replenishment applications with appropriate supporting documents for expenditures. To the extent possible, all IDA's share of eligible expenditures should be paid through the Special Account. Estimated disbursements by IDA fiscal year are shown in Table 3.5. Estimated disbursements by semester are given in Annex 16. Table 3.5: Disbursement Profile (US$ million) FY96/97 I FY97/98 FY98/99 J FY99/00 J FYOO/O1 Annual 10.0* 12.0 14.0 14.0 6.0 Cumulative 10.0 22.0 36.0 50.0 56.0 Cumulative % 17.9% 39.3% 64% 89% 100% *This amount includes US$2.0 million from the Project Preparation Facility.  47 ACCOUNTS AND AUDITS 3.34 It was agreed during Negotiations that as soon as possible after the end of the Malawi financial year, but no later than six months after its completion, GOM will, through the MU, present audit reports of the special accounts and the project accounts with a separate opinion on the use of the special account and SOEs (para 5.2 (g)). The audits will be carried out by the Auditor General. In auditing the project accounts, special attention would be paid to verifying the reliability of SOEs, and to the internal controls and procedures involved in the preparation of SOEs. Audit reports should be produced for each component, covering the use of SOEs, management of the special account and other matters. The audit report for the community initiatives component shall include a review of Community Project Committee's performance on a sample basis. In view of the fact that the project would have a large number of accounts including those at the MU, zone and community levels, and that these would need to be checked periodically, it was agreed that MASAF will (i) appoint no later than 90 days from effectiveness of the credit, (a) an internal auditor who will report directly to the MASAF Manager, and (b) consultants to carry out training of MASAF finance staff for strengthening the computerization of MASAF's accounting system; and (ii) prepare the terms of reference for both the MASAF internal auditor and the above mentioned consultants as a condition of Board presentation 3.35 Project accounts will be established and maintained by GOM. A Special Account will be opened for this project and maintained with a commercial bank by GOM. The maximum balance in the Special Account will be US$1.5 million, which will cover about 3 months of expenditures at full operation. There is no need to make the maximum initial deposit lower than the maximum balance as is done for project implementing agencies with little or no experience in management of Special Accounts. MONITORABLE INDICATORS 3.36 MASAF is a demand-driven project and, as such, will be monitored on a variety of indicators using both quantitative and qualitative measures. In addition to process indicators, which will be used in all three components and the MU, it is expected that PMSF will monitor the impact of not only MASAF interventions, but also activities funded by donors, NGOs, as well as GOM. Box 5 contains some indicators which will be monitored, and Annex 11 gives a more detailed description of these.  48 Box 5: Sample of Indicators to be Monitored MU: number ofprojects processed; time between receipt, approval andfunding IEC: type of messages prepared and vehicle for dissemination; number reached Subprojects: number of mobilized communities; number of women elected; types of community contributions; fully accounted-for funds PWP: income earned; activities undertaken--length of road, acreage irrigated PMSF: number of clients using services; review of impact of CSP and PWP, annual report on poverty status and social and economic policy. Reporting and Reviews 3.37 During Negotiations,GOM agreed that the MU will coordinate the production of an annual report on project implementation (see Annex 17) no later than June 1 of each year (para 5.2 (e). Contributions will be made from the MASAF and the PMSF. From this review the MU will invite IDA, other interested donors, NGOs and Government agencies to an annual review workshop to be held no later than July 1 of every year (beginning in 1996 for the year 1995). The implementation review schedule is provided in Annex 18. 3.38 The Manager of MASAF will prepare a consolidated report for submission to the PSC quarterly. Copies of the most recent quarterly reports will be sent to IDA before the implementation review missions, which are expected to take place bi-annually. 3.39 A progress report, whose outline was provided and agreed at negotiations, will be submitted to IDA annually (para: 5.1(d). 3.40 During Negotiations,GOM also agreed that a mid-term review will be held 2 years after project effectiveness or when 50 percent of funds have been committed, whichever occurs first (para 5.2 (f)). For the mid-term review the Government will commission independent reviews of each component, including the MU and will summarize the findings and recommendation in a report submitted to the donors and IDA before the mid-term review. This report will highlight institutional successes and failures of MASAF and the MU.  49 4. PROJECT BENEFITS AND RISKS PROJECT BENEFITS 4.1 Community Benefits. The benefits of the community initiative component of the MASAF will be various at many levels. Among these will be: (a) improved health, education and economic infrastructure; (b) improved in service delivery; (c) increased capacities of community-based organizations, district, provincial and national government and NGOs to plan, appraise and complete capital projects; (d) recognition of the value of self-help in development and maintenance of that creation; (e) revived spirit of self-help, increased sense of ownership, and accountability, participation in decision making for own development and empowerment of implementing communities; (f) creation of income-earning opportunities through employment; (g) improved food availability in food-deficient areas. 4.2 Poverty Monitoring. The benefits associated with the monitoring activities are: (a) establishment of priority poverty indicators with which to assess changes in the living conditions of different social groups; (b) avoidance of duplication of data collection by government agencies; (c) capacity building to generate, process and disseminate household-based data;  50 (d) establishment of institutional and financial support for the regular review of key poverty indicators to track progress and determine policy implications; (e) improved in research capacity; more rigorous and analytical studies with appropriate and usable recommendations; (f) establishment of a model, potentially replicable in other African countries, for integrating qualitative and participatory approaches into a poverty monitoring system at the national level; (g) enhanced capacity within Malawi for participatory research and planning, through provision of resources for qualitative and participatory poverty studies under the PMSF; and (h) improved targeting of programs and policies, for the poor and vulnerable. 4.3 Donor Participation. The design of MASAF uses inputs from several donor- funded projects. There was constant consultation with donors during preparation. This consultation will continue through implementation since there are common activities among donor projects even if approach and size may vary. Actual co-financing of the project by donors is limited to the WFP joining to finance the food component of the PWP. In addition to MASAF financing, funding will be sought from the Norwegians for financing poverty monitoring activities. PROJECT RISKS 4.4 The risks to the Project are: (a) That GOM fails to adhere to economic reform programs. The Government and IDA have continued their dialogue: GOM has implemented most of the conditions, such as operating on a cash basis. The following have been taken into consideration in the project design to minimize the impact that recurrent costs from this project might have on the GOM budget: (i) teachers are already on the payroll of the GOM budget; (ii) the ability of communities to set up maintenance funds for water and social infrastructure projects is one criterion for selection; (iii) the health sector representative at the district level has to be assured that there are funds in the MOHP budget to cover recurrent costs of any proposed health center. (b) That community self-help spirit may be undermined by other programs and projects not using the same clear criteria in project selection nor insisting on self-help. The Project will assist GOM in the development and implementation of a policy which would eliminate this risk.  51 (c) That since the management of funds for CSP will be the responsibility of the community, there may be accountability lapses. To minimize this risk, decision making at the community level has been made transparent and participatory, and the CPC members are to be trained in book keeping. (d) That poor technical quality of the works could undermine the sustainability of the CSP and PWP projects, which may also undermine community participation. This is being addressed by significant technical monitoring and supervision. The project implementation work-book will be made available to all Community Project Committees. District Officers will be trained in technical appraisal skills to ensure better quality at entry (e) That communities are over-stretched and overwhelmed by the demands on them from all sectors, thus putting a capacity constraint on them. Donors (European Union, USAID, Overseas Development Agency (ODA) and United Nations Development Program (UNDP)) and NGOs such as Save the Children (UK), Action Aid - have expressed this view. Communities are expected to perform functions for which they have neither the skills nor the capacity, for example, to maintain accounts and financial records, to identify and recruit facilitators like NGOs and then pay them. Pilot experience does not confirm this nor does other experience with community-driven projects. Community implementation capacity is an important factor in subproject selection, which will be monitored throughout. (f) That MU will not be able to respond to the high level of demand as expressed by the number of inquiries and requests currently being received by the MASAF. Unrealistic expectations on the part of GOM and the communities as to the numbers and types of projects which can be implemented could have a negative impact on MASAF's reputation. Piloting has allowed the MU to work through the processes, and lessons learned have been incorporated into the PIM. IEC campaigns will be mounted, to inform the public of the status of these activities. (g) That the flatter management structure adopted under the PWP to allow greater transparency, may also promote weaker ownership of the project than might be the case in a single ministry-managed project. There is uncertainty as to where the balance of gain would lie. (h) That the budget for tools in the PWP has been kept low because the preparation team could not develop a fully accountable system for distributing tools to laborers and ensuring the return of tools after the work is over. This might constrain speedy implementation. The piloting lessons are expected to throw further light on this issue.  52 (i) That GOM fails to meet its basic commitments to service provision at district level because of budgetary constraints. This would deprive the project of the appraisal capability and routine supervision subsumed in community projects. 4.5 The risks associated with the National Sample Survey of Agriculture/VAM/Famine Early Warning System are: (a) technical capacity may be inadequate to sustain the component once the external support (USAID, United Nations Children's Fund (UNICEF)) is withdrawn; and (b) that the NSO and MOAg budgets may not provide adequate resources for effective implementation of data collection and analysis, reducing the credibility of the instruments. 4.6 The risk associated with the PMSF component is that the local research community cannot avail itself of the resources under the program of poverty analysis because of constraints in skilled capacity. This risk has been tackled by creating scope for collaboration between local and external researchers, and by maintaining that the preparation and dissemination of studies be part of capacity building. 4.7 A final risk to the smooth implementation of the Project would be the possibility of Government yielding to pressures from Donors to modify procedures. Slow disbursements, erratic release of funds by the Reserve Bank, and burdensome reporting requirements may hamper implementation. This risk will be dealt with by ensuring that sufficient funding is available to the MU from IDA and Government sources. This has been dealt with during preparation, by ensuring that other donors' experiences have been incorporated into the project design.  53 PROJECT VIABILITY Sustainability 4.8 Sustainability. The MU and its field offices will be coterninous with the Project, but the principles of community contribution, procedures to involve communities in projects and criteria developed to support community initiatives will be retained. The MASAF approach would be adopted in regular sectoral programs of the Government. The skills learnt by communities during the project in using and accounting for funds, building, maintaining and rehabilitating infrastructure will be sustained by them. The transfer of skills to district staff, especially in the appraisal, implementation and monitoring of projects will help sustain the MASAF processes and approach. It is probable that at mid-term review of this project, the District Development Fund would have been established in each district and that sufficient experience in implementing projects would have accumulated, which would allow the DDC to gradually assume the function of the MU, adopting the MASAF approach, processes and project selection criteria. Adoption by sectors of the MASAF approach generally for community-based activities and transferning functions of the MU to the district levels would be two important issues to be addressed at the time of the mid-term review. 4.9 Completed CSP and PWP Schemes. The sustainability of the CSP is assured because the community implementing the project has contributed substantially to it and has an increased sense of ownership. Every subproject would have an established and functioning maintenance committee. Since sectoral ministries have been involved in the development, appraisal, and supervision of the subprojects, and have promised to provide manpower to run the facilities created and to meet other necessary recurrent costs, the maintenance of service delivery is assured. As to the PWP projects, these will clearly increase demand for maintenance funds. However, since PWP is seen as a safety net intervention, future maintenance activities could also be undertaken as part of the program. Government's own budgetary resources will be phased-in gradually so that assets created are maintained. Economic Analysis 4.10 MASAF is a demand-driven project. Actual distribution of funds by type of activity is not known ex ante. The estimated distribution of projects and funds by type of activity is based on the results of the first 25 pilots which were financed during September, 1995 and January, 1996. The ERR for Education refers to primary education and does not include externalities; the ERR for water and public works refers to simple activities such as boreholes and earth/gravel roads (expected to be the predominant activity) we assume that the community will be able to carry out maintenance without cost to the government. The total ERR is about 22 percent and reflects the ERR of the individual sector activities, weighted by their expected relative incidence. We have not calculated the ERR for activities in health, miscellaneous economic infrastructure and  54 poverty monitoring/administration, which are expected to account for about one fifth percent of project cost. Even if we assign an ERR of "O" to these activities, the weighted average is still satisfactory at nearly 18 percent. In health, the project is expected to finance the construction of primary level infrastructure (rural health clinics and posts) which tend to carry out interventions in the higher end of the cost effectiveness spectrum (EPI, rehydration therapy, malaria treatment, TBA ante-natal and delivery care, etc.). Such interventions, which are normally carried out at the primary level of care, tend to favor primarily women and children and are expected to yield substantial gains in life- years saved. The main risk involved with this project relates to institutional deficiencies, which might delay project implementation. Even if these delays result in a 15 percent decrease in benefits accruing to the project and a 15 percent increase in costs, the weighted average ERR is reduced to about 18 percent--still a satisfactory outcome. (see Schedule B of the Memorandum to the President).  55 5. CONDITIONS, AGREEMENTS AND RECOMMENDATIONS 5.1 At negotiations, the Government provided evidence that the following are in place and acceptable to the Association: (a) a final version of the PIM (para 2.9); (b) a work program (including proposed training and procurement plans) for the MU for 1996 (para: 3.5 and 3.27); (c) a work program for the GOM's Poverty Monitoring System (PMS) (para: 3.15); (d) an outline of the annual reports (para 3.39); 5.2 During Negotiations, the following agreements were reached: (a) The MU will be responsible for implementation of the project (para 3.4); (b) The positions of Manager, and Heads of Operations, Technical Services, Public Works Division, Finance, Administration and internal audit will be filled at all times by staff having qualifications and experience satisfactory to IDA (para 3.5); (c) GOM will use IDA's standard bidding documents for ICB and the sample letter for the recruitment of consultants (paras 3.22 and 3.25); (d) GOM will open a Project Account with a Commercial Bank acceptable to IDA and deposit therein, on a quarterly basis, the Government's counterpart funding (para 3.30); (e) GOM will carry out, jointly with IDA, an annual review of project implementation not later than July 1 of each year (beginning in 1996 for the year 1995), on the basis of appropriate documentation to be prepared by the MU which will include the work programs and budgets for the three components for the following year (para 3.37);  56 (f) GOM will: (i) carry out jointly with IDA, a mid-term review of the progress of the project not later than July 1, 1999 or when 50 percent of the funds are committed, whichever occurs first; (ii) submit to IDA the findings of independent reviews of each of the three components, including the MU, and summarize the findings and recommendations in a report submitted to the donors and IDA before mid-term review; and (iii) implement the recommendations of the review (para 3.40); (g) GOM will submit to IDA, within six months after the end of each fiscal year, audit reports as follows: (i) financial audits annually, with audit reviewing internal controls and procedures involved in the preparation of the SOEs, and (ii) technical and management audits (para 3.34); and (h) A unit cost data bank will be maintained and updated (every three to six months) to monitor the cost of materials, goods, works and services which the communities buy for use under the project (para 3.5). 5.3 As Conditions of Board Presentation, GOM through MASAF MU has: (a) established a Project Account into which the estimated GOM contribution to the Project will be deposited quarterly, and deposited the estimated contribution for the first quarter (para 3.30); and (b) submitted terms of reference, acceptable to IDA, for appointment of an internal auditor for the duration of the project and technical assistance for the training of accounts staff in MASAF in computerized accounting (para 3.34). 5.4 Recommendation. Given the preceding actions, conditions and agreements, the proposed project would be suitable for an IDA credit of SDR 38 million (US$56 million equivalent).  57 ANNEX 1 Page 1 of 2 INTER-COUNTRY SOCIOECONOMIC, HEALTH, NUITRITION, AND POPULATION INDICATORS LESS DEVELOPED MALAWI AFRICA COUNTRIES GNP per capita (US$) 1991 (Malawi data 1994) 140 340 900 Annual Population Growth Rate 3.3 3 2 Population Density (per sq. mile) 106 Total Fertility Rate 6.7 6.5 3.6 Crude Birth Rate 54 45 29 Crude Death Rate 21 15 9 Infant Mortality Rate (per 1,000 live births) 135 104 70 Under Five Mortality Rate (per 1,000 live births) 234 175 106 Maternal Mortality (per 100,000 births) 620 700 450 Life Expectancy (m/F) (1992) 44/45 49/52 62/65 Population per doctor (1985-90) 27,000 9,000 1,500 Population per nurse (1985-90) 14,000 2,000 1,700 Adult literacy rate (1990) 42% 50% 53% Female literacy rate (1990) 31% 38% 52% Modem Contraceptive Prevalence* 7.40% - % of home deliveries 43% - % of stunting*" 48.70% - % of wasting*** 5.40% - % of malnutrition (women in fertile age)**** 9% - % of population below absolute poverty level 85 57 (1985) . * Among married women of childbearing age (1992) ** (Height for agc <-2SD) among children under 5 years (1992) * (Weight for age <-2SD) among children under 5 years (1992) **** (Body Mass Index <18.5) (1992) Sources: Better Health in Africa, 1992 DHS, UNFPA-Malawi  58 ANNEX 1 Page 2 of 2 CHANGES IN INFANT AND CHILD MORTALITY IN MALAWI FROM 1978-1992 Period Infant Mortality Child Mortality Under-Five Mortality 1988-1992 134.3 114.9 233.8 1983-1987 137.5 126.1 246.3 1978-1982 136.4 140.8 258.0 Source: Malawi Human Resources and Poverty, forthcoming World Bank publication, 1996 GEOGRAPHIC VARIATION OF INFANT AND CHILD MORTALITY Residence Infant Mortality Child Mortality Under-Five Mortality Urban 118.1 98.9 205.4 Rural 138.0 122.9 243.9 Northern Region 120.7 92.3 201.9 Central Region 130.2 151.0 261.6 Southern Region 144.3 100.1 230.0 Source: Malawi Human Resources and Poverty, forthcoming World Bank publication, 1996  Status of MASAF Pilot Projects as of December 12, 1995 Project Cycle Stage Sector Identification Preparation Desk Field Approval Launch Problems* Canceled Appraisal Appraisal a) PSC Project Name b) Other A. Northern Region Kamwala School Education Y Vuvu School and Water Education y Kawiya School Education Y Chibavi Urban Market Eco. Infrastruc. Y Chipolwe Boreholes Water a Linga Water Points Water a B. Central Region Kazyozyo Health Center Health Y Kavumbiri School Education . y Kaunda School Education Y Mteya Multipurpose Center Eco. Infrastruc. b(l) Magola Boreholes Water b(2) Kanyangale Water and Water Sanitation b(2) . . Chipasula Water Kiosks Water b( I ) Mtandile School Education Y C. Southern Region Naotcha Road Eco. Infrastruc. a Chikanda Y Patrao School** Education y Mpakati Boreholes Water b(2) Mjale Health Center Health b( I) Malota Boreholes Water Y Mtiya Boreholes Water b(2) _ _ _ b(l) Expected to be ready for PSC approval and launch by early January, 1996 - b(2) Water needs and siting surveys to be conducted t X * Inability to mobilize people and insufficient community contributions--may be canceled ** Minimal community contribution--food-for-work issue--canceled  60 ANNEX 3 Page 1 of 2 MALAWI SOCIAL ACTION FUND PROJECT IMPLEMENTATION MANUAL (Community Sub-Projects) Table of Contents I. Introduction II. Organizational Structure III. Information, Education and Communication (IEC) IV. Institutional Capacity Building V. MASAF Project Cycle VI. MASAF Community Sub-project Information System VII. MASAF Monitoring and Evaluation VIII. Relationship with sectoral activities IX. Project Implementation Plan X. Financial Management XI. Procurement and Disbursement ANNEXES Annex One: Forms used in relations with community projects Annex Two: Routine reports - Zone Office quarterly report - Head officer quarterly report - MASAF annual report - MASAF annual audit report ATTACHMENTS: Administrative Procedures Manual Financial and Accounting Manual Orientation Manual for Project Committees and Communities Orientation Manual for DECs and Zone Officers Getting Acquainted with MASAF  61 ANNEX 3 Page 2 of 2 MALAWI SOCIAL ACTION FUND PROJECT IMPLEMENTATION MANUAL (Public Works Programme) Table of Contents I. Situation Analysis and Project Concept II. Institutional Framework III. Project Cycle IV. Technical Aspects V. Monitoring and Evaluation VI. Project Implementation Plan VII. Capacity Building VIII. Finance and Procurement ANNEXES: I. Recording and reporting requirements and forms 2. Tools and Materials Management 3. DRIMP work norms and budgeting for public works roads 4. Use of contracts for road construciton 5. Use of consultants for technical monitoring 6. Targeting of EPAs and Districts for the 1996 programme  62 ANNEX 4 Page 1 of 1 MASAF PROJECT CYCLE Evaluation and Completion Needs Identification Monitoring Preparation Supervision Appraisal and Approval Implementation  63 ANNEX 5 Page 1 of 2 MALAWI SOCLAL ACTION FUND COMMUNITY PROJECT APPLICATION FORM This form should be filled out only after the whole community, including all social groups, participates in discussing their problems, solutions and their highest priority project that could be assisted by MASAF. 1. Project name:_ (For example, "Kamwala school project") 2. Contact address: (for mailing) 3. Project location Village/Area: TA/sub-TA: District: 4. Type of project:_ (For example: school, bridge, borehole, road, clinic) 5. Project description (List what the project will include) (For example: School blocks, teacher's houses, furniture, latrines, boreholes) Type of Facility or Structure or Number to Be Done Under the Project Activity to be done under the project New Facility Repair or Complete 6. Population and size of project area. Total population of the project community:_ (List details below - attach a separate list if there is not enough room) Distance from project Names of villages/aress in the project Population site or main village I. 2. - 3. 7. Existing Services. What problem with the existing services, facilities or situation would the project solve? Type of service/facility? How many? Condition? How far away? 8. Previous efforts. What has the community done to try to solve this problem? What contributions has it already made to solving the problem? 9. Experience. What other development projects have been done in this community, what outside institutions were involved and how did the community participate?  64 ANNEX 5 Page 2 of 2 10. Expected benefits. What are the expected benefits from the project? 11. Community participation. How did the community, including women, participate in choosing this project as their first priority? Attach minutes of meetings, attendance lists or other evidence. 12. Self-help contribution. (For example: materials, labour, cash) - What contributions are already available? (What kinds and how much?) - What contributions would the community be willing to make? (What kinds and how much?) 13. Maintenance. - What would the community agree to do to maintain the facility after the project is completed? - What has the community done to maintain existing facilities? 14. Committee members. (List committee members who would be responsible for this project) Name Village Signature/Date Chairman Secretary Treasurer Members 15. Committee selection. How was the committee selected? 16. Facilitators. Please give the name, position and signature of anyone who assisted with planning for the project or filling out this application, but is not a member of the project committee. 17. Submission. Date of Submission: Post/submit copies of this form to the District Commissioner and to the MASAF zone office covering your district as follows: Zone District MASA Ad 1. Chipita, Rumphi Karonga P.O. Box 20350, Luwinga, Mzuzu 2 2. Mzimba, Nkhata Bay P.O. Box 20350, Luwinga, Mzuzu 2 3. Nkhotakota, Salima, Dowa P/Bag 143, Kasungu 4. Kasungu, Mchinji, Ntchisi P/Bag 142, Kasungp 5. Lilongwe, Dedza, Ntcheu MASAF-MU P/Bag 352, Lilongwe 3 6. Machinga, Mangochi, Zomba P/Bag 8, Liwonde 7. Chiradzulu, Blantyre, Mwanza c/o Regional Administrator (South), Blantyre 8. Mulanje, Thyolo c/o Regional Administrator (South), Blantyre 9. Nsanje, Chikwawa clo Regional Administator (South), Blantyre  65 ANNEX 6 Page 1 of 1 MASAF REQUIREMENTS Desk Appraisal * whether the proposal addresses national, district, and MASAF policy objectives and priorities; * whether the proposal disaggregates the project target groups and the forms of benefits by gender, age and social categories; * whether the project is gender sensitive and takes account of women and children needs; * whether the project does not require significant technical assistance from outside the community; * whether the project is endorsed by the Zone Office and the district line department through the District Executive Committee; * whether the project does not require a contribution from MASAF in excess of USD 100,000.00; * whether the project creates employment and generates income at local level; whether the community contributions meet the required levels; * whether the project represents a priority need of the community applying for the project; * whether the benefits are significant and likely to impact on the poor and vulnerable; whether the likely costs are reasonable as specified in the Technical Manuals; whether the project represents the best way of achieving the same objective; * whether the project is simple enough for a community to implement within the stated time; * whether there is commitment to sustain and maintain the project after completion. Field Appraisal i technical feasibility of the project; * beneficiaries of the project - are the poor and the marginalised represented? * existence of a popularly elected Project Committee; * agreement of the relevant line ministry where appropriate; * expertise required - whether within or outside the community; * involvement of other organisations; * verification of total project cost; * catchment population; * long term sustainability of the facility; * mechanisms for disbursing funds; * suitability of site; and * ascertain community contribution.  66 ANNEX 7 Page 1 of 1 SELECTION CRITERIA FOR COMMUNITY SUBPROJECTS Community subproject selection criteria will emphasize demonstration of active community involvement, contribution and management, and gender sensitivity. In order to qualify, projects would have to meet the following criteria: * be community-based; * involve simple technology, manageable by communities; * serve poverty reduction objectives; * demonstrate community involvement, ensuring ownership and maintenance by the communities; * be identified, prepared and managed by the communities; * be financed by disbursements made directly from MASAF; it is expected that direct disbursement to communities would promote skills for ownership and community empowerment, necessary ingredients for project sustainability; * be cofinanced by the communities in the form of self-help contributions; and * assets will be located in public or communal land, or land belonging to local bodies; where the location proposed is private land (freehold or leasehold), appropriate written contract between owners of the land and beneficiaries ensuring unlimited and unimpeded access by beneficiaries, shall be presented; a copy of the contract will be made available to beneficiary, and another filed in MASAF documents..  67 ANNEX 8 Page 1 of 2 MALAWI SOCIAL ACTION FUND Desk Appraisal Form Proposal number Title of Project: Project Location Village: TA/STA : District: Sector Date of DEC meeting: CRITERIA (and related Application Form questions) SCORE Scoring guidelines are provided in the DEC Manual 1. Is the project consistent with the scope of MASAF? 0 1 2 (Questions 4, 5) 2. Can the relevant ministry/department provide any needed recurrent 0 1 2 costs and facilities to ensure that the infrastructure created will be serviced and used by the beneficiaries? (Questions 4, 5) 3. To what extent does the community's situation qualify it for the 0 1 2 type of project requested? (Questions 5, 6, 7) 4. To what extent does the project reach the poor and marginalized in 0 1 2 a cost-effective way? (Questions 4, 5, 6) __ 5. Is the size of the project simple enough to complete in one year? 0 1 2 (Questions 5, 9) _ 6. To what extent has the community already made efforts to solve 0 1 2 the problem? (Question 8) 7. Is there sufficient evidence of the community's committment to 0 1 2 self-help under the project? (Question 12)  68 ANNEX 8 Page 2 of 2 CRITERIA SCORE 8. Is there sufficient evidence (minutes of meetings, attendance lists, 0 1 2 etc.) of the community's own participation, including the involvement of women in the process of making the project application? (Questions 11, 15) 9. Does the project improve the geographic distribution of projects in 0 1 2 the district? (Question 3) _ 10. Is there a good plan for community level sustainability? 0 1 2 (Question 13) TOTAL SCORE (0 to 20) FINAL ASSESSMENT Approved for Field Appraisal (Highest scores and fits in MASAF schedule) Deferred/returned (Not enough space in MASAF schedule or needs changes) _ Not acceptable (score of 0 for any of first three criteria) APPRAISAL TEAM NAME POSITION SIGNATURE DATE DISTRIBUTION - Zone Office - DEC  69 ANNEX 9 Page 1 of 2 MALAWI SOCIAL ACTION FUND Field Appraisal Form PART ONE: ]IDENTIFICATION 1. Project title: 2. Contact address: 3. Date(s) of field appraisal 4. Project location: Village/Area: TA/sub-TA: District: 5. Type of project: PART TWO COMNIYARTICIPATION 6. Review of Participation. What was the community's role in selecting, planning and applying for this project? 7. Report on community rapid assessment exercise. What is the result of the participatory rapid assessment exercise? Does it confirm or change the community's priority for a project? 8. Project committee appraisaL If the current committee was not selected according to MASAF principles, a new committee for project preparation should be popularly elected by the community before proceeding further with the field appraisal. PART THREE: NEEDS VERIFCATIO 9. Current situation (Number, type, and condition of current buildings; distance and numbers of current users of services; current staff and supplies, including items that are usually provided by the government.) Attach detailed answer. 10. Unmet needs Confirm the names, populations and locations of the villages/areas in the project community (attach if needed). Estimate the number of persons in the community who are not receiving services according to sectoral standards. PRTLFOUR: PROJECT PLANS 11. Project Components. List project components by type, design, number and whether the component is new or being rehabilitated. Include items such as furniture and training if they will be included in the project budget. D.aig mber hah  70 ANNEX 9 Page 2 of 2 12. Site Sketches of the project component(s) in relationship to the communities and to existing facilities. (attach) 13. Bills of quantities for materials and labour. If project components include non-standard designs or rehabilitation, give detailed sketches of proposed building/facility, and proposed bills of quantities for materials and labour (must be attached). 14. Materials transportation. Estimated number of trips, distances and size of trucks that will be needed for transport of project materials from Boma and/or other purchasing locations. 15. Community self-help contribution. List the types (e.g. bricks, sand, cash, water carrying, labour, etc.) and quantities (in number, cubic meter, person-days, etc.) of contributions and when they will be made available (already available, will be available before launch, or will be provided during implementation). Ouanty When available 16. Sequencing. If approved, when would the project be ready for launch and how long would it take to implement? 17. Community maintenance plan. Describe in detail the plan for maintenance of the project by the community. 18. Government intended contribution. List any contributions the government will make to the facilities or services during or after the project, such as staff, supplies, etc. 19. Bank account and signatories. (note - Current bank accounts should not be opened unless the community is notified that its project has been approved for funding). Name of Bank in which account would be opened: Names of community signatories for the Bank account: PART FIVE: COMMUITY AGREEMENT 20. Agreement that the community project committee participated fully in designing the project plan, and that the plan has been presented to and is agreed to by the community. Name Village Signature Date Chairman:_ Secretary: Treasurer:.__ 21. Agreement that the field appraisal team finds that the community and its proposed project are in accordance with all community and technical criteria for MASAF support and recommend the project for MASAF funding. Name Position Signature Date  71 ANNEX 10 Page 1 of 2 PUBLIC WORKS PROGRAM SELECTION CRrTERIA AND PRINCIPLES OF IMPLEMENTATION The following selection criteria will apply to the selection of public works activities: * cannot be undertaken on a self-help basis because of nature and size; * unskilled labor component is a significant portion of the total cost; * implementation will not require specialized technical inputs and procedures; activities can be started in a short time; and * total cost of each project will not exceed MKI .5 million. Principles of Implementation The principles that have guided the design of the PW component are: (A) Accountability tIransparency * The agency that maintains labor records will not make wage payments. A separate agency/office will make payments to the laborers. Similarly, where material is to be procured, the person who prepares the bill of material will not be the person who makes the actual purchase. Using the bill prepared, procurement will be the responsibility of another agency. * A labor attendance register will be maintained by a project committee constituted for each work. This committee will comprise representatives of the communitfies where the work will be done. The project committee will record attendance daily. This will be applicable in both work systems being proposed: (i) direct labor supervision by the implementing agency and (ii) minor contract method (see D). The attendance statement will be signed by the work supervisor and at least two committee members. This register will be available for verification by all visiting supervisors. * Labor attendance records and bills of material will be signed at least by two members of the project committee. Copies of wage payment statements and material delivery documents will be made available to the project committee. * Decisions will be made through group consultation to the extent possible. (B) Wages The wage rate will be established at the national level with reference to the minimum wage for rural areas. The present wage is MK7.50 per person/day. Work norms for individual labor will be specified and made known to all participants in the program.  72 ANNEX 10 Page 2 of 2 (C) Timing of Activities: The timing of public works will be determined by demand. (D) Organisation of Works-Private Contractors The works will be organised both through direct work supervision and minor contract methods. Indirectly supervised works, the works supervisor or the concerned official will maintain labor attendance records as required under existing procedures. The quantity of works would be measured and recorded according to existing national guidelines. The DRIMP minor contract system will be adopted to the PWP where MOW direct supervision capacity at the district is inadequate. In such cases, piece works can be farmed-out through a written arrangement, which will be co-signed by project committee members, the supervisor and the council clerk. A copy of this contract will be attached to the labor register being maintained at the community level. Generally, work to be contracted-out should be in small quantities so that implementation can be monitored effectively. Several minor contracts can be farmed-out over time within a single project MOW district staff will be trained, to manage such minor contracts. (E) Private Sector Participation in Supervision. While executive agency at the district level will carry out its own systematic supervision, MASAF will ensure in addition that supervision from regional and national level is also carried out by: (i) MOW regional and national staff, (ii) private consultants hired by MOW where the ministry has capacity constraints, and (iii) MASAF Public Works Division (PWD). Each ongoing work will be supervised by one or more of these three agencies once a month to measure and report the quantity and quality of work carried out. These supervision teams will also check information in the labor register and discuss with the community members the manner in which the work is being implemented. Each such supervisory team will submit a detailed report of its inspection to the District Team and to the MASAF. (A detailed format for supervision report will be designed). (F) Sustainability. The Goveniment will gradually phase-in regular public resources to continue the program beyond the life of the project. The communities may not be able to maintain the assets by self-help unassisted. Maintenance can be one of the public works activities. (G) Gender Concerns: The project will lay emphasis on employment to women. An effort will be made to recruit women for employment in works. In Machinga, for example, the communities decided that each labor gang consisting of 9 persons would have 6 women. Modalities for enhancing benefits for women will be examined continuously to accommodate as many women as possible.  73 ANNEX 1 1 Page 1 of 3 Schedule of MASAF Project Indicators Input/process Indicators (CSP) 96/97 97/98 98/99 99/00 00/01 total Number of projects under processing (distribution by sector in pilot phase): Education 70 70 70 70 280 Health 20 20 20 20 80 Water 80 80 80 80 320 Economic Infrastructure 30 30 30 30 120 Turnaround time between application and approval for funding 3 months 3 months 3 months 3 months 3 months Number of training courses held Length of training Type of training Output Indicators (CSP) Number of projects approved per year 200 200 200 200 800 Number of projects with fully accounted-for funds 200 200 200 200 800 Input/process indicators (PWP) _ Persondays of employment created in '000' 2,592 2,160 3,024 3,024 1,296 12,096 Labor intensity: unskilled labor cost/total 36 36 36 36 36 36 project cost (%/6) Output indicators (PWP) . Miles of rural road equivalent built2 951 792 1109 1109 475 4436 Number of households benefited from 25.92 21.60 30.24 30.24 12.96 120.96 Employment in '0003 Population to benefit from the employment 129.6 108.0 151.2 151.2 64.8 604.8 created in '0004 Total wage income transferred in MK million 54 45 63 63 27 252 InpuVprocess indicators (PMAS) Reviews of impact of CSP and PWP 2 2 2 2 2 10 Integrated household survey 1 2 Output Indicators X _ __ _ X _ Beneficiary assessments 1 1 1 1 1 5 Number of studies completed 2 3 3 3 3 14 I This does not include employment of skilled workers (such as masons) or employment generated in the making of items in the material component, such as laying bricks. 2 Since the mix of irrigation and road works would be determined as the project progresses, the quantity of assets built is expressed in terms of road-miles equivalent. The average cost per mile is taken to be the average in the pilots, and the exchange rate is assumed to be $S=MKI5. The wage rate and labor cost assumed are those in the pilots. 3 Experience from the pilots show that a person recruited initially does not vacate the job. Since PWP works create about 100 days of employment every year on the project sites it is assumed that each participating household sends only one member of the family who works for 100 days in a year. 4 An average household size of 5 members is assumed.  74 ANNEX 11 Page 2 of 3 Indicators to be tracked during Project Instrument Frequency Types of IEC messages prepared (CSP) (input) Quarterly MU Report Quarterly Vehicle for IEC message dissemination (CSP) (input) Print Radio Quarterly MU Report Quarterly Number of people reached by IEC (CSP) (output) Quarterly MU Report Quarterly Number of mobilized communities (CSP) (output) Report from Zone Offices Monthly Project Committees (CSP) (input): Level of participation in electing officers (chair, secretary, treasurer, deputy treasurer) Number of women elected (need 50%) Education level of women elected Experience of women elected _ Facilitators (CSP) (input): Type of facilitator Public servant NGO Other Duration needed Required training Used as a percentage of all CSPs Number of women elected (need 50%) (CSP) (output) Desk Appraisal Monthly Number of applications received (CSP) (input) . Number of applications not approved and reason for rejection (CSP) (input) Outside sector priority Outside funding limit Lack of community contribution Lack of capacity Report from Zone Offices Unsustainable project Quarterly MU Report Time between receipt, approval and funding (CSP) (input) Quarterly MU Report Quarterly Number of people trained in (CSP) (input) Bricklaying Carpentry Bookkeeping Supervising road works Repairing boreholes Repairing roofs Repairing windows Repairing roads Repairing culverts Repairing embankments Zone Officers' Reports Quarterly  75 ANNEX I 1 Page 3 of 3 Indicators to be tracked during Project Instrument Frequency Types of community contributions per project (CSP) (input): Length/size of foundations dug Contributions of materials Number of bricks formed Cash contribution in lieu of payment for labor Hours of labor contributed Field Appraisal Reports Monthly Number of clients using services (PMAS) (output) Annual Report Annual  76 ANNEX 12 Page 1 of 3 Institutional Arrangements and Study Cycle' for Studies financed under the Poverty Monitoring Support Facility Institutional arrangements One of the TWC's tasks is to commission and coordinate analysis of poverty-related issues and ensure its dissemination. Accordingly, the TWC will set up a multi-disciplinary sub- committee which will serve as a coordinating technical body for poverty-related research. The sub-committee will consist of members of the TWC and include assigned PMU personnel. The terrns of reference for this Poverty Analysis (PA) sub-committee will be defined by the TWC. As a part of its tasks, the PA sub-committee will appraise studies to be funded from PMSF resources. The PA sub-committee will assist in: (i) appraising study proposals, (ii) identifying data sources relevant to the study proposal, (iii) advising researchers and reviewers on methodological and analytical issues, (iv) monitoring progress of implementation of studies and assist wherever possible in resolving implementation problems (e.g. by organizing research seminars). * The PA sub-committee will assign reviewers and reject or recommend studies for TWC approval according to pre-agreed criteria and recommendations from technical reviewers. * The sub-committee is required to report back to the full TWC on the studies approved and progress in studies under implementation. * The PA sub-committee will actively involve policy makers in the preparation of research proposals as well as the discussions of research findings, so that contemporary issues are dealt with. The PA sub-committee will also support and encourage use of qualitative as well as quantitative approaches in the studies to be undertaken. * The MASAF Beneficiary Assessments will be managed and coordinated with the MASAF management unit. * The PMU will be responsible for dissemination of research findings. * In order to facilitate the functioning of the program for poverty analysis, the TWC may, at a later date, identify the need for technical assistance. It is expected that as it starts functioning, the PA sub-committee will begin to coordinate studies to be financed not only through the PMSF, but also by other donors and GOM. This will avoid duplication and encourage economies of scale in conducting analysis. These institutional arrangements will be reviewed as the sub-committee is established and starts functioning. 1 See also Annex 29 for funding arrangements for studies under the PMSF.  77 ANNEX 12 Page 2 of 3 Study Cycle for studies financed under the PMSF: * The TWC will decide on priority research areas for small studies. Study proposals in the identified priority research areas will be solicited by the PA sub-committee through widely-disseminated public announcements twice a year. * The TWC may also commission participatory poverty assessments2, or beneficiary assessments or cost-effectiveness/cost-benefit evaluations of targeted interventions. Proposals to carry out the commissioned assessments will be solicited by the PA sub-committee through widely-disseminated public announcements. When national capacity to conduct Beneficiary and Participatory assessments cannot be met, short term international assistance will be hired. * The TWC may also commission National Poverty Studies which will typically use survey data that are nationally representative and will analyze priority poverty indicators at the national, regional, and district level. Proposals to carry out national poverty studies will be solicited by the PA sub-committee through widely- disseminated public announcements. When capacity to do such analysis cannot be met nationally, short term international assistance will be hired. * The studies and analyses supported through the PMSF, together with other relevant studies, should be summarized and used to build the Annual Report on status of poverty and policy interventions (see above). * Study proposals will be submitted to the PA sub-committee. The proposal will describe the objectives, hypothesis, analytical methods to be used, data sources, the capability of the research team and the likely outcomes and policy relevance. A budget should also be attached. A literature review should be part of the research proposal and should reveal gaps in existing research and also identify issues which require further research. The PA sub-committee will review the proposals to ensure it complies with the selection criteria. * The PA sub-committee will assign two reviewers for each proposal. One of the reviewers would be from the relevant institution expected to implement the results of the research. Another reviewer would be a technical expert who can assess the methodology proposed by the study. After the study has been reviewed and changes made to the proposals, the study proposal will be resubmitted to the PA sub- committee. At this stage, the sub-committee will select and recommend proposals to the TWC for approval. * The reviewers will be expected to support the researcher and the research with study seminars and assist with analytical and research issues. The reviewers will make monthly reports to the PA sub-committee on progress in implementation of the studies. The reviewers will also review the draft study report. * The PA sub-committee will report on in-progress studies to the TWC on a quarterly basis. The completed studies are to be discussed by the TWC. 2Participatory Poverty Assessments may be conducted to investigate the priorities and needs of communities and districts that are identified as very poor and may need special attention. The indicators to identify these communities would be high morbidity, malnutrition, poor access to facilities and social services and lack of community projects.  78 ANNEX 12 Page 3 of 3 * The PMU will disseminate results of the completed study to policy makers and implementors, donors, NGO's and data collectors by making reports available, workshops, seminars, radio programs, etc. * Beneficiary Assessments of MASAF community and public works projects would be conducted annually and feed into the development of MASAF project management and implementation procedures. The MASAF MU will initiate and develop the terms of reference for the beneficiary assessments to be undertaken in a yearly cycle. The terms of reference will be submitted to the TWC for their inputs and comments, revised accordingly and then put to tender. The BA team will report on findings to the TWC and the MASAF MU.  1996 1 1997 ID Na Ect.AuMnJ SIaS N FMAM JIJJF|M|A|M|J|J|A|S|O|ND JFMA 1 DFRAFT ANNUAL WORK PLANS - MASAF 555d 12115195 i 2 ADMINISTRATION 321d 12/16/96 _ 21 FINANCE 31 Id 1/26/96 66 MANAGEMENT INFORMATION SYSTEM 350d 1/1/968 66 Ongoing Activities 304d 2/13/96 68 TRAINING 271d 311196 _ 76 Ongoing Activites 322d 3/11/96 80 IEC WORK PLANS 544d 1/1/ 142 PUBLIC WORKS PROGRAM 381d 2/13/S8 O 169 FIELD OPERATIONS B9d 1/1/96 176 Ongoing acivities 84d 2113196 C 186 TECHNICAL SERVICES 70d 3/16 O 192 Ongonlg Actvlgles 20d 2113/96 0E Psoject: Cdtlcal Pwogrsse Sumfniary w Dale: 2/20196 ~~~~NorriSlcWC Milestone *Rolled Up <2  1996 1 1997 ID Nam Est Dun. Start FM|J|JAS|O|NDJF|M|AMJ ASOND MFMJJ 1 DRAFT ANNUAL WORK PLANS - MASAF SS5d 12/16/96 2 ADMINISTRATION 321d 12116196 _ 3 RoArult Staff 4w 4/9/96 4 Procue Eqsmmni ad Futriture 4w 12115195 5 Estabksh Zone officee 6w 511196 6 Peper lotQtu seports lw 11/196 7 Subrmit quately reponts 1w 6/10/S6 a Ist qtu PSC R-evw meeting Od 3/1196 9 Prepare 2nd tr. rporut 1w 6/1196 10 Subadt quately reports 1w 6/10/96 11 2nd qtr PSC Reviewrating Od 6/1/96 12 Prepwr 3rd qtr PSC Reviews '611 0 00 13 SubmIt quterly repons 1w 12/2/96 0 0 14 3rd qt PSC Revbw nmetg Od 9/1/96 15 Prepao 4th Qtr. reports 1w 6/1/96 16 Subnit quartry reports 1w 313/97 17 4th qt PSC Rewlew meedng Od 12/11/96 18 Prepae amnual repons 1 w 12/2/96 I 19 SubmIt annual repor Od 1216/96 20 MASAF annul revIew 2w 12/9/96 21 FINANCE 311d 1126/9* 56 MANAGEMENT INFORMtATION SYSTEM 350d 111/96 66 Ongoing ActdvItlee 304d 2/13/96 68 TRAINING 271d 3/1/96 (IQ6D 76 Ongoing Aclvites 322d 3/1/96 O 80 IEC WORK PLANS S44d 1/1/96 *_ 142 PUBLIC WORKS PROGRAM 361d 2/13/96 CD 8 Project: C_de_ _ _ Proo_ s _ "_ Su_vwn_ _ Dole: 2/20k30 Noncrdticl Milestone *Rdl d Up <)  1996 1997 10 Nanm Et. Durn. Start FM |MJ|J|A|S|O||D |JFMAM JJ|A|S|O|N D JFM A 169 FIELD OPERATIONS 09d 111196 176 Ongolng activktia 84d 2113196 186 TECHNICAL SERVICES 70d 311196 192 Ongoing Actvivdoe 20di 2113196 00 _~~~~~~~~~~~~~~~~~~~~~~~~~~~ Project: Critical ProgFEiSa Sunmienay Date: 2/20/96 Noncritical Milaston * Rolled Up >  1996 T1997 ID Nae Est. DOurn. Start FMAM J IJAS N IDJFJ FM1AIMIJ IJ1A[SO1N D J F A 1 DRAFT ANNsJAL WORK PLANS - MASAF 555d 12/16195 2 ADMINISTRATION 321d 12/15/95 9 ___ 21 FINANCE 31ld 112810 I_ 22 Production of Financial Manual 4w 1/28/96 23 Prepare Jan Disbursements and Repjanish 2d 3/1/96 24 Prepare Jan Expense report Id 3/3/96 25 PrFpacr Fab Disbursements and Rplanish 2d 3/1/96 26 Prepare Feb Expense rporn Id 3/3/86 27 Prapare Mar Disbureanernts and Replbnish 2d 3/1/96 28 Prepare Mar Expense report ld 3/3/96 2S Prefe MASAF lst Otr Budget lw 3/1/9, 30 Preeent MASAF quanerly Budget Od - 3/10/97 31 Prepare Apr Diabutsments and Replenish 2d 3/1/96 32 Prepare Apr Expense report Id 3/3196 33 Prepare May Disbursements and Replbniah 2d 3/1/96 34 Prepare May Expense report d 3/3/96 35 Prepare Jun Disbursements and Replenish 2d 3/1/96 36 Prepare Jun Expense report Id 3/3/96 37 Prepare MASAF 2nd Qtr Budget 4w 3/10/97 38 Precent MASAF quarterly Budget Od 6/4/96 39 Prepare Jul Disburasninta snd Rsprenushm 2d 3/1/96 40 Prepare Jul Expenoe repon Id 3/3/96 41 Prepare Aug Disbursemnts nd Replenish 2d 3/1/96 42 Prepare Aug Expense report Id 3/3/90 43 Prepare Sep Disbursements and Replnbsh 2d 3/1/96 44 Prepare Sep Expense repon Id 3/3/96 O 45 Prepare MASAF 3rd Otr Budget 4w 3/10/97 Project: Cdticbl Progress Sunmary V Date: 2/20/96 NoncdruiIa Milestone Rolled Up (  1996 1997 ID Name Est Durn. Steel F MIAIMIJIJIASOINID J|FMAM J|J|A|S|OND 46 Presont MASAF quartealy Budget Od 9/2196 47 Prepare Oct Disbursements and Replbnish 2d 311/96 48 Prepare Oct Expense report Id 3/3/96 49 Prepoae Nov Disbursements and Replenish 2d 3/1/96 so Prepate Nov Expense report 1d 313/96 51 Prepate Dec Disbursnemnts and Replenish 2d 3/1/96 52 Prepare Dec Expense report Id 3/3/96 53 Prepare MASAF 4th Otr Budget 4w 3110/97 54 Present MASAF quertedV Budget Od 12/30/96 55 Prepare MASAF accounts for audit 3w 4/1/96 56 MANAGEMENT INFORMATION SYSTEM 350d 1il0____ 66 Ongong Actvides 304d i 2113196 se TRAMiNNG 271d 3/1/96 76 Ongoing Actdtie. 322d 3/11/S so IEC WORK PLANS 544d 1/119 t _ 142 PUUBJC WORKS PROGRAM 381d 21131986 159 FIELD OPERATIONS 89d 1/1/96 176 Ongoing ctivities 84d 215/86 18S TECHNICAL SERVICES 70d 3/1196 192 OngoIn AAtvides 20d 211316 Project: Critical Progess Sunmmery Date: 2/20196 Noncritical Milestone Rolled Up K  1996 1997 ID Name Est. urn. Start F MA M J JIASION CD J FIM AIM J JASIONIDJFIMIA 1 DRAFT ANNUAL WORK PLANS - MASAF 655d 12115/96 2 ADMINISTRATION 321d 12116/f* 21 FINANCE 311d 1/26196 * _ 66 MANAGEMENT INFORMATION SYSTEM 350d 1/1/SE 57 Prepare Training Material 2w 1/1198 68 Devalop Project Informtnion System Sw 1/15/96 59 Develop Motor Vehicle Traing System 1w 41/797 60 Develop IEC data BasE 2w 4n7/g7 61 Procure computers for Zone Officers 3w 4/7/97 62 Prepare MIS for PWP 4w 4/7/97 63 Implment Accounting /Flnance system 4w 4n7/97 64 Train MU and Zone Officers 3w 4/7/97 65 Prepare site lot Zone offico Computers 3w 4/7/57 66 Ongoing Acvitiles 304d 2113/96 68 TRAINING 271d 3/1/1 96 76 Ongoing Activitee 322d 3/1/96 80 SEC WORK PLANS E44d 1/1/96 * 142 PUBUC WORKS PROGRAM 381d 2/13/96 ltg FIELD OPERATIONS 89d I/1/9 175 Ongoing activItie 84d 2/13/96 186 TECHNICAL SERVICES 70d 3/1/96 192 On