Argentina - Second social protection project

 ICRR 10622 Report Number : ICRR10622 ICR Review Operations Evaluation Department 1. Project Data : Date Posted : 06/20/2000 PROJ ID : P049268 OEDID: OEDID : L4195 Appraisal Actual Project Name : Second social US$M ) Project Costs (US$M) 1200 1240 protection project Country : Argentina Loan /Credit (US$M) Loan/ US$M ) 200 200 Sector, Major Sect .: Labor Markets & US$M ) Cofinancing (US$M) 100 0 Employment, Social Protection & Other Sector L/C Number : L4195 FY ) Board Approval (FY) 97 Partners involved : Closing Date 06/30/1999 06/30/1999 Prepared by : Reviewed by : Group Manager : Group : Rene I. Vandendries Andres Liebenthal Ruben Lamdany OEDCR 2. Project Objectives and Components a. Objectives To reduce poverty by providing temporary income support to poor, unemployed workers hired in the Trabajar public works program. b. Components 1. Financing of unskilled manual labor of Trabajar subprojects . 2. Financing of a Project Implementation Unit . The project supported the CAS objective of enhancing social development . However, the project did not address long-term labor market reforms. c. Comments on Project Cost, Financing and Dates 1. The estimated cost of the project at appraisal was $ 1200 m: IBRD - $200 m, IDB - $100 m, the Government of Argentina - $800 m, and other private organizations - $100 m. The estimated cost at completion was $ 1240 m. There were two special features: first, the Bank allowed retroactive financing of project costs incurred prior to loan signing; second, the Bank financed a high share of local costs in line with the main objective of the project . 2. The Bank preparation and supervision costs were 62 staff weeks or equivalent of $ 228,000 for the period of 1997 to 1999. 3. Achievement of Relevant Objectives : The project achieved its primary objective to reduce poverty by providing temporary income support to poor, unemployed workers. The project was one in a series . The Government has the mechanisms in place to operate this safety net efficiently, and the sustainability is likely as long as the program is needed . 4. Significant Outcomes /Impacts : 1. The project provided financial support of $ 200/month for about 5 months to 300,000 poor unemployed workers. 2. The project created slightly over 400,000 temporary jobs reducing overall unemployment by approximately 2 percentage points. 3. About 17,000 subprojects were approved under the Trabajar II program, and as of April, 1999, three-quarters of them had been successfully implemented, benefiting poor communities substantially in the area of general infrastructure development. 4. The institutional capacity of provincial governments was enhanced through the process of subprojects' evaluation. 5. Significant Shortcomings (including non -compliance with safeguard policies ): The system of evaluation and supervision of subprojects at the provincial level needs improvement : in some cases, subprojects did not generate the expected positive benefits to communities . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : 1. In a public works program meant to alleviate poverty, close monitoring is needed during project execution to ensure that targeting is working . 2. Effective monitoring and supervision of subprojects including periodic on -site visits, is essential to ensure high quality of works. 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The quality of the ICR is satisfactory . It gives detailed information, a sound analysis, and comprehensive statistical tables about all stages of the project .