Zambia - Social Recovery Project

 ICRR 10368 Report Number : ICRR10368 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2273 Project ID : P003242 Project Name : Social Recovery Project Country : Zambia Sector : Social Assistance L/C Number : C2273 Partners involved : EU, Norway Prepared by : Elliott Hurwitz, OEDCR Reviewed by : Alice Galenson Group Manager : Rene Vandendries Date Posted : 08/11/1999 2. Project Objectives, Financing, Costs and Components : Objectives: Objectives were to (1) fund community initiatives—in education, health, nutrition, and food security— which would mitigate the effects on the poor of the structural adjustment program by supporting rehabilitation and improvement of existing infrastructure and service delivery in these areas; (2) conduct surveys and analyses to enhance government planning and policy making in the social sectors; (3) bolster provincial and district staff capacity in the above sectors (this objective emerged from decisions made at the mid-term review, and was accompanied by reallocation of funds from community initiatives into capacity building and institutional support). Costs and Financing: SRP was a US$46.4 million operation, with US$20 million from IDA supplemented by US$15 million from the EU, US$2.2 million from the Government of Norway, and US$9.1 million provided by the Government of Zambia. Components: (1) Community initiatives (89% of funding), (2) institutional support (of the Microprojects Unit—6%), and (3) analysis and monitoring (4%). The SRP was approved on June 24, 1991, became effective on August 16, 1991, and closed on July 31, 1998, one year later than planned. 3. Achievement of Relevant Objectives : Fund Community Initiatives: The project completed new or rehabilitated facilities which benefited around 170,000 schoolchildren, providing improved physical facilities as well as better services. Within health projects, IDA-financed undertakings permitted increased immunizations, outpatient and inpatient visits, which benefited around 660,000 individuals. However, a substantially higher proportion of funds was spent on education than anticipated in the SAR (70 vs. 25 percent), and correspondingly less on health (19 vs. 55 percent). Surveys and Analysis: The SRP produced numerous useful studies which impacted various policies and strengthened the country’s research capacity. However, the survey sub-component did not complete all of the surveys planned and was not as useful to policy-makers as had been expected. Bolster Provincial Staff: The SRP extended the regional office network from one (as planned in the SAR) to 7, and provided training and sub-project experience that enhanced the ability of district staff to work effectively with communities. 4. Significant Achievements : • The SRP provided the government with poverty data which it had not previously had, and stimulated debate on poverty, leading to a number of policy reforms. • The SRP significantly broadened the example—already established by the EU project on which it built—of an effective institutional mechanism to support community mechanisms from the bottom up. • The SRP substantially strengthened capacity at the local level, both in the community and in regional offices, which supported the government’s policy of devolving authority. Also, as District staff became more involved in MPU activities, linkages between regional offices and district staff were strengthened. 5. Significant Shortcomings :  The Borrower did not comply with a covenant requiring government to provide evidence of a real increase in budgetary allocations for non-wage recurring costs—a key condition because of generally inadequate maintenance. This, along with inadequate provision of counterpart funding, displayed some lack of Borrower commitment. The Bank did not sufficiently emphasize the Borrower’s deficiency in covenant compliance or call it to the attention of the government or the Board. The SAR identified seriously dilapidated facilities and lack of maintenance as "“the primary issue that cuts across sectors.." Despite this, the sustainability of the maintenance of facilities constructed during the project is rated by the ICR as uncertain. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Partial Substantial These ratings are equivalent . Sustainability : Uncertain Uncertain Bank Performance : Satisfactory Satisfactory While overall Bank performance was satisfactory, there were significant deficiencies in supervision: Bank did not sufficiently emphasize Borrower’s deficiency in covenant compliance or call it to the attention of the government. Also, the Borrower was unable to take full advantage of grant funds provided by the Swedish government and administered by the Bank due to the Bank’s failure to make the funds available. Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : • A demand-based, community-initiated and –implemented approach can provide a successful platform for economic development. Poor communities can effectively participate in developing and managing simple development projects, which then have the substantial benefits of community and stakeholder participation. • Capacity building at the district and community levels is important in facilitating such approaches. • Such approaches can also provide an impetus for the decentralization of unwieldy bureaucracies. • Effective survey work can stimulate a productive debate on poverty and the best approaches to its alleviation. 8. Audit Recommended? Yes No Why? Is likely to have lessons of broader applicability concerning community management of investment 9. Comments on Quality of ICR : Overall, ICR is satisfactory. However, it attributes demonstration of the success of the bottom-up, community-based concept to SRP. The SAR, in contrast, states that EC microenterprise project, which pre-dated SRP and was eventually merged with it, "has been remarkably successful in supporting small-scale community initiatives."