Grenada - Safety Net Advancement Project : restructuring

Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES12428 RESTRUCTURING PAPER ON A PROPOSED RESTRUCTURING OF THE SAFETY NET ADVANCEMENT PROJECT APPROVED JULY 5, 2011 TO GRENADA November 12, 2015 Social Protection and Labor Global Practice Caribbean Country Management Unit Latin America and Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  ABBREVIATIONS AND ACRONYMS CCT Conditional Cash Transfer DLI Disbursement Linked Indicators MIS Management Information System MOE Ministry of Education MOF Ministry of Finance MOH Ministry of Health MOSDH Ministry of Social Development and Housing MTR Mid Term Review ORAF Operational Risk Assessment Framework PDO Project Development Objective PMT Proxy Means Test SEED Support for Education, Empowerment, and Development SNAP Safety Net Advancement Project Regional Vice President: Jorge Familiar Acting Country Director: Karin Kemper Senior Global Practice Director: Arup Banerji Practice Manager/Manager: Margaret Ellen Grosh Task Team Leader: Snjezana Plevko 2  GRENADA CONTENTS A. SUMMARY 5 B. PROJECT STATUS 5 C. PROPOSED CHANGES 7 ANNEX 1: RESULTS FRAMEWORK AND MONITORING 12 ANNEX 2: REVISIONS TO DISBURSEMENT LINKED INDICATORS 25 3  DATA SHEET Grenada Safety Net Advancement Project (P123128) LATIN AMERICA AND CARIBBEAN Social Protection & Labor Global Practice . Report No: RES12428 . Basic Information Project ID: P123128 Lending Instrument: Specific Investment Loan Regional Vice President: Jorge Familiar Original EA Category: Not Required (C) Acting Country Director: Karin Kemper Current EA Category: Not Required (C) Senior Global Practice Arup Banerji Original Approval Date: 05-Jul-2011 Director: Practice Margaret Ellen Grosh Current Closing Date: 31-Dec-2017 Manager/Manager: Team Leader(s): Snjezana Plevko . Borrower: Government of Grenada Responsible Ministry of Social Development and Housing Agency: . Restructuring Type Form Type: Full Restructuring Paper Decision Authority: Board Approval Restructuring Level 1 Level: . Financing ( as of 28-Sept-2015 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P123128 IDA-49930 Effective 05-Jul-2011 20-Sep-2011 05-Dec-2011 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) % Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Original Revised Disburse d d sed d P123128 IDA-49930 Effective XDR 3.20 3.20 0.00 1.70 1.50 53 . Policy Waivers Does the project depart from the CAS/CPF in content or in other significant Yes [ ] No [ X ] respects? 4 Does the project require any policy waiver(s)? Yes [ ] No [ X ] . A. Summary of Proposed Changes 1. The Project is being restructured to: (i) revise the PDOs and results framework to better align them with the new Government's objectives and capacity; (ii) revise the Disbursement Linked Indicators (DLIs) to match the revised simplified PDOs with the current implementation pace and capacity of the SEED Unit; and (iii) revise the allocation of financing across Project disbursement categories and components to increase the share of the total financial envelope allocated to MOSDH capacity building and institutional strengthening. To ensure that the revised PDOs are achieved, the Project closing date would be extended by two years to December 31, 2017. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [X] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change to Financing Plan Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ ] No [ X ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ ] No [ ] . B. Project Status 2. The Grenada Safety Net Advancement Project (SNAP) was approved by the Board on July 5, 2011 and declared effective on December 5, 2011. To date, the Project has disbursed SDR1.7 million, 53.24 percent of the total Credit. The delay in disbursements is largely due to the failure to meet established 5 Disbursement Linked Indicators (DLIs) under the Project since the first schedule of DLIs in November 2011. Therefore, the progress towards achievement of Project Development Objectives (PDOs) and overall Implementation Progress (IP) are rated Unsatisfactory. 3. Since effectiveness, Project implementation has been progressing at a slower pace than anticipated. This has principally been due to: (i) an ambitious Project design that did not anticipate implementation capacity constraints; (ii) challenges in maintaining inter-sectoral coordination needed for the success of the conditional cash transfer program designed under the Project - “Support for Education, Empowerment, and Development” (SEED); (iii) a change in Government following the 2013 elections; and (iv) frequent turnover and limited capacity of MOSDH staff, particularly within the SEED Unit. This has resulted in delayed contracting of critical consultancies necessary for rolling out the SEED Program. 4. Despite the slower pace of implementation than initially envisaged, there has been progress in implementing the SEED Program. Achievements to date include: (i) creation of a separate budget line in the Central Government budget dedicated to the SEED Program, and consolidation of the three cash transfers programs to establish the SEED under the Ministry of Social Development and Housing (MOSDH); (ii) establishment and staffing of a unit within the MOSDH to manage the roll-out and implementation of the SEED Program; (iii) completion of Phase I of the Management Information System (MIS); (iv) completion of the new targeting instrument to identify beneficiary households for SEED and partial pilot of the instrument to existing beneficiary households and new households based on referrals and on-demand requests; (v) completion of an Operational Manual outlining implementation arrangements and operational rules for SEED; (vi) training of 32 staff members from the MOSDH, Ministry of Education (MOE), and the Ministry of Health (MOH) on administration and implementation of social safety nets (four MOSDH members attended the World Bank Group’s Social Safety Net Core Training Course, and 28 GOG officials participated in the WBG-organized workshop in Grenada); (vii) completion of Memoranda of Understanding between MOSDH and the Ministries of Education, Health, and Finance to guide cooperation for the implementation of the SEED Program; and (viii) Cabinet approval of a three- year budget plan for the SEED Program (Cabinet conclusion #1668, November 10, 2014). Furthermore, since the new Government has taken office, turnover of staff and MOSDH management has been reduced. There is now a more established cadre of staff responsible for the SEED Program within the Ministry, and assigned relevant responsibilities related to SEED and the Safety Net Advancement Project (SNAP; P123128, Cr. 4993-GD). 5. Additionally, MOSDH has outlined a roadmap for broader safety net reforms through a Social Safety Net Framework developed with the technical and financial support of the UNICEF Office for the Eastern Caribbean Area, and UN Women Multi-Country Office – Caribbean. The framework was approved by Cabinet on July 8, 2013 (Cabinet conclusion #861). Some of the instruments that are being designed under the current Project are necessary for the operationalization of this Framework. 6. A Mid Term Review (MTR) carried out with the Government in May 2014 and a follow up assessment concluded that despite the completion of some key milestones, the Project was not likely to meet its current Development Objectives unless restructured. 7. Following the MTR, the Government and the Bank worked jointly on the identification of changes that would be needed to ensure that the Project design is better aligned with the objectives of the current Government (which came into office in February 2013) to facilitate Project implementation and enhance the prospects for its successful finalization and achievement of the simplified Project Development Objectives. These identified changes are the basis for the proposed restructuring of the Project. 8. In addition, it is worth noting that a highly dedicated MOSDH Permanent Secretary, a more established technical team in the MOSDH, and a re-engaged inter-sectoral Technical Committee, are providing the necessary enabling institutional structure for Project implementation. Government has also 6 made the successful completion of the Project a priority as evidenced by the prior actions under the Grenada Programmatic Resilience Building Development Policy Credit (DPC) series (First DPC, P147152, IDA-5523-GD; Second DPC, P151821, IDA-5374-GD and IBRD-8546-GD; and Third DPC, P156761 that is currently under preparation). The level of SEED spending has also been included in the Quantitative Program Targets under the IMF program. . C. Proposed Changes . Development Objective/Results Project Development Objectives Original PDOs The Development Objectives of the Project are to: (i) strengthen the basic architecture of the consolidated Conditional Cash Transfer (CCT) Program and the capacity of the Ministry of Social Development to implement it; (ii) improve coverage of poor households receiving cash transfers; and (iii) improve education outcomes of poor children and health monitoring of vulnerable households. Change in Project's Development Objective Explanation 9. The PDOs have been changed to simplify the Project and strengthen the focus on the structure of the SEED Program in terms of its delivery of benefits to the poor, and the capacity of the MOSDH to implement it. These changes will ensure improved targeting of the program towards to poorest. They are also expected to have a positive impact on the education outcomes of the poor children and health monitoring of vulnerable households, although these impacts will not be measurable by the closing of the Project. Proposed New PDOs 10. The proposed revised Development Objectives of the Project are to strengthen the basic architecture of the SEED Program and the capacity of the Ministry of Social Development and Housing (MOSDH) to implement it. Change in Results Framework Explanation: 11. Disbursement Linked Indicators (DLIs): The original Project included eight DLIs to be met each November during the implementation period. With this Project restructuring, the DLIs would be revised, and they would no longer be dated; i.e., the disbursements linked to these indicators would occur whenever the DLIs are met. Also, DLI compliance verification will no longer require an external audit by the Accountant General’s office. Instead, clear protocols for verification by the World Bank will be established for each DLI. These changes are necessary to ensure that the DLIs match the current pace of implementation and institutional capacity within the SEED Unit and MOSDH. The revised DLIs would focus on creating the basic architecture for the SEED Program, including the implementation of the new targeting tool (as reflected in the DLI on the percentage of SEED beneficiaries identified through proxy means test) and the use of the MIS. The proposed new DLIs and the protocols for their verification are listed in Annex I. 12. Non-DLI disbursements. The original Project design also included regular disbursements of US$250,000 which were not linked to the DLIs and were scheduled each May and November during the Project duration to support Program implementation. These disbursements would not be continued after the restructuring. First, the Government has already reduced the reliance on Credit proceeds for financing of the SEED benefits. Second, the progress in implementation should enable the achievement of the undated DLIs and trigger the DLI-linked disbursements. 7 13. PDO Result Level Indicators: The current PDO’s level indicators would be changed to reflect the change in the simplified PDOs. The revisions to the PDO’s Results Indicators and Intermediate Results Indicators are detailed in Annex II. The revised PDO’s indicators would be as follows: a. “Increased percentage of poor households receiving the SEED cash transfer.” The new targeting tool has been designed based on data from the 2011 Census and 2008 Country Poverty Assessment (CPA). MOSDH has decided not to undertake an impact evaluation at present, focusing instead on ensuring the smooth roll-out of the proxy means test (PMT) targeting tool, and effective implementation of the CCT Program. As a result, baseline data needed to measure the original indicator (increased percentage of households in the poorest quintile that receive the benefit) will not be collected. The revised indicator would seek to ensure targeting efficiency and it would therefore measure the percentage of poor households, as identified by the PMT, receiving the SEED cash transfer. b. “Increased percentage of SEED Program transfers that reach poor households with children.” The indicator would replace previous indicators related to improved human capital development. The change would ensure the focus on children and youth (ages 0-24) who, according to the data presented in the 2008 Country Poverty Assessment, represent 66.4 percent of Grenada’s poor. While the elderly accounted for 11 percent of the population, they comprised four percent of the country’s poor. However, analysis done for the Mid Term Review (MTR) revealed that most of SEED’s current beneficiaries were elderly, accounting for 3,263 out of the 5,249 total SEED beneficiaries as of April, 2014, receiving 78 percent of the total transfers. MOSDH anticipates that over time, using the new targeting tool, SEED beneficiary households will increasingly be comprised of households with children. Inclusion of this indicator ensures steady monitoring of progress towards those stated objectives. 14. Intermediate Results Indicators: Originally, the Project had 25 intermediate results indicators. Some of the indicators still lack adequate measurement systems (e.g. health-related indicators), and the baselines for some could not be established. Consequently, the proposed revisions, presented in the revised Results Framework, would focus on indicators that are achievable by the Project by making them simpler, and by reducing the number of indicators monitored to those that are most relevant to the revised Project objectives. The revisions to the indicators have been made following detailed technical discussions with the MOSDH on the feasibility of measuring the original indicators and ensuring that progress towards reaching overall Government objectives for the CCT is monitored and captured during the Project. Additionally, targets for the intermediate indicators would be revised to be better aligned with current implementation time frames. . Financing Change in Loan Closing Date(s) Explanation: 15. The Project closing date would be extended by 24 months, from December 31, 2015 to December 31, 2017, to provide the time needed for strengthening the implementation capacity of the MOSDH and the successful implementation of the SEED Program, thus allowing for the full achievement of the new PDOs. Ln/Cr/T Original Closing Current Closing Proposed Closing Previous Closing Status F Date Date Date Date(s) IDA- Effective 31-Dec-2015 31-Dec-2015 31-Dec-2017 49930 Reallocations Explanation: 8 16. The allocation of financing across the Project categories and components would be changed to reflect the Government’s readiness to ensure financing of the SEED benefits (the three year budget plan for SEED benefits has been approved by the Cabinet), and increase the share of the total financial envelope allocated to MOSDH capacity building and institutional strengthening. Current Category of Disbursement % (Type Ln/Cr/TF Currency Allocation Expenditure Total) Current Proposed Current Proposed CASH TRANSFERS 2,880,000.0 2,550,000.0 IDA-49930 XDR 100.00 100.00 UNDER PART 1 0 0 CO,GO,NON-CO, TRN, 320,000.00 650,000.00 100.00 100.00 AND OP. FOR PT 2 Designated Account 0.00 0.00 0.00 0.00 3,200,000.0 3,200,000.0 Total: 0 0 Disbursement Estimates Change in Disbursement Estimates Explanation: 17. The Project is lagging behind estimated disbursements due to the failure to meet established Disbursement Linked Indicators (DLIs). Following the restructuring, the DLIs would no longer be time- bound. Thus, due to the recent progress in finalization of the key elements of the new system, the DLI- linked disbursements could be accomplished at a faster pace during 2015 and 2016. The MOSDH has also made considerable advances on activities linked to the remaining DLIs. Similarly, the disbursements under Component 2 are expected to start soon after the restructuring is approved. 18. In general, disbursement arrangements will not change and disbursements will continue to be made semi-annually for Components 1 and 2. However, as a result of the changes proposed to the DLIs and elimination of non-DLIs disbursements, the withdrawal application schedule will be revised. The relevant sections in the Disbursement Letter will be amended. Fiscal Year Current (USD) Proposed (USD) 2012 1,562,500.00 0.00 2013 3,125,000.00 0.00 2014 2,343,750.00 0.00 2015 781,250.00 3,408,460.00 2016 0.00 1,111,540.00 Total 7,812,500.00 4,520,000.00 . Components Change to Components and Cost Explanation: 19. Under Component 1, several key adjustments would be made: a. Adjustment of DLIs: As stated previously, the scope and the costing of the DLIs under Component 1 would be revised to better match the implementation and institutional capacity within the MOSDH. Also, 9 the DLIs would no longer be dated. The new DLIs would include three focused on system development, as follows: (i) beneficiary information campaign ensuring that 70 percent of beneficiaries have received critical information about the SEED program, (ii) a fully functioning Management Information System (MIS); and (iii) an operational Appeals Committee. The DLIs would also include three results-focused ones: percent of beneficiaries identified as eligible to receive SEED – with the percentages at different stages being: (i) 30 percent; (ii) 60 percent; and (iii) 80 percent. A detailed table with the DLIs, the rationale for including them, and the measurement strategy is attached in Annex 1. b. Non-DLI Disbursements: The non-DLI disbursements would not be continued after the restructuring. c. Total Cost: Component 1 was originally allocated US$4.5 million or 90 percent of the total credit to finance cash transfers to poor households. US$2.5 million was linked to milestones established by DLIs in 5 results areas, while the other US$2 million to non-DLI disbursements. In spite of a substantial delay in meeting the DLIs and consequent failure to receive the DLI-linked disbursements, the Government of Grenada has been ensuring adequate financing for the cash transfers. The recently approved 3-year budget plan has already secured the financing for SEED benefits, thus it is estimated that a lower amount of direct Project support would be needed to support payment of SEED benefits. The allocation for this Component would, therefore, be reduced in this restructuring. The total allocation for Component 1 after the restructuring would be US$3.6 million. This would allow for an increase in the allocation for Component 2. The table below provides the information on the proposed reallocations. The table is in USD, thus the proposed amounts total to US$4.52 million as a result of the exchange rate difference. 20. Several design changes are also being considered for the SEED Program, which the previously mentioned adjustments to Component 1 would support. These include the: a. Establishment of clear protocols for SEED elderly beneficiaries: The review of the SEED Program during the MTR revealed that most SEED beneficiaries were elderly and they accounted for the largest share of program transfers. Therefore, the Project will assist MOSDH to establish clear protocols for handling elderly enrolled in the SEED program, to ensure that the needs of poor elderly are appropriately addressed, while enabling the SEED to focus on its objectives of improving human capital among poor households. b. Review of the SEED benefit structure to match budget capacity and alignment with a 3-year budget plan. This will enable MOSDH with long-term forecasting. 21. Component 2: One of the key lessons learned from the original Project design was the critical importance of ensuring adequate implementation capacity in the MOSDH. A recently conducted institutional assessment of the MOSDH prepared under the Project identified continued significant capacity challenges. An increased allocation to Component 2 would allow for additional support to help strengthen implementation capacity at the MOSDH. The proposed allocation to Component 2 after restructuring would be US$0.92 million. The restructured Project would strengthen the capacity of the MOSDH by: i) commissioning a number of advisory services to strengthen MOSDH’s capacity to deliver SEED; ii) providing training to existing staff of the MOSDH and other Government institutions critical for the implementation of the SEED; iii) ensuring timely additional support of critical local consultants that would later transition to Government staff; and iv) purchasing the necessary equipment needed for the successful implementation of the SEED. A detailed list of activities that would be included in the restructured Component 2 is included in the Procurement Plan in Annex IV. The key activities would include: a. Increasing SEED Program Unit staff in MOSDH: The Project would temporarily support the engagement of consultants to provide the MIS support to the SEED Unit and to strengthen the social work 10 support provided to beneficiary households. By the end of the Project, the Government would aim to transition these consultancies into permanent MOSDH staff positions to ensure sustainability of program implementation. b. Training: The Project would strengthen training to MOSDH staff to facilitate effective implementation of the SEED Program. Activities would include capacity building for social workers; M&E training to the SEED Unit and broader MOSDH staff to ensure adequate capacity to monitor and evaluate the Program’s impact; support the participation of at least one more MOSDH staff member to the World Bank’s Safety Core Course; and knowledge-exchange activities with countries in the region. c. Goods: The Project’s Procurement plan will be adjusted to provide goods to MOSDH to assist in the effective administration and implementation of the SEED Program. These include the purchase of computer equipment, as well as the materials needed for public information efforts. d. Advisory Services: The Project will finance additional advisory services to help MOSDH improve its operational protocols and implementation arrangements. These would include: (i) development of an operations manual for social workers; (ii) mapping of all social services across Parishes; and (iii) design of a referral system. e. Process Evaluation: Given the delayed roll-out of the PMT and MIS, it will be difficult to gauge Project impact prior to the extended closing date. During the MTR, it was therefore agreed that an Impact Evaluation will not be carried out in the immediate Project period. Rather, a Process Evaluation will be implemented no later than early 2016. f. The additional activities agreed to be included in the restructured Component 2 would be procured in accordance with the Procurement and Consultants’ Guidelines and the provisions stipulated in the Financing Agreement. The procurement plan was updated accordingly to include these activities and was agreed, on Feb 25, 2015. The additional activities would be procured through the following procurement and selection methods: shopping of goods; selection of individual consultants and single source selection. The procurement will be carried out by the existing PCU procurement staff (one Procurement Officer and one Procurement Assistant), who are trained and fully qualified to do this procurement. Based on that, no changes are envisaged in the originally agreed procurement arrangements. Current Component Proposed Component Current Cost Proposed Action Name Name (US$M) Cost (US$M) Component 1: Improving Conditional Cash 4.50 3.60 Revised Transfers Component 2: Improving Implementation Capacity 0.50 0.92 Revised of the Ministry of Social Development Total: 5.00 4.52 . Other Change(s) Change in Implementation Schedule Explanation: 23. Due to delays in implementation, the restructuring includes a revision of the closing date of the Project that would result in changes to the implementation schedule. However, based on recent 11 implementation progress, it is expected that the disbursements under both components would pick up rapidly following the restructuring. . Appraisal Summary Appraisal Summary Change in Risk Assessment Explanation: Systematic Operations Risk-Rating Tool (SORT) Risk Category Rating 1. Political and Governance Low 2. Macroeconomic Moderate 3. Sector Strategies and Policies Low 4. Technical Design of Project or Program Substantial 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Low 7. Environment and Social Low 8. Stakeholders Moderate 9. Other Low OVERALL Substantial The overall implementation risk is assessed as Substantial due to the limited capacity in the implementing agencies and a complex technical design. The capacity constraints are being addressed through the development of the MIS, implementation of the recommendations from the institutional review, revised operations manual and training of the Government team working on the SEED program. The Project design, although substantially simplified through the proposed restructuring, would remain transformational in that it links disbursements to performance, formalizes and enforces co-responsibilities, and introduces a new, objective and transparent targeting mechanism. All of these aspects are new to Grenada, representing fundamental change in the implementation of its flagship social assistance programs. The Bank has been working closely with the Government on the development of a detailed Project implementation plan and using this plan for regular weekly monitoring of progress in Project implementation. Also, an education campaign has been planned to enhance beneficiaries’ understanding of co- responsibilities and new targeting mechanism. 12  Annex 1: Results Framework and Monitoring Project Project Grenada Safety Net Advancement Project (P123128) Restructuring Status: DRAFT Name: Stage: Team Requesting Leader(s) Snjezana Plevko LCC3C Created by: Sarah Berger Gonzalez on 25-Oct-2013 Unit: : Product Responsible IBRD/IDA GSPDR Modified by: Snjezana Plevko on 6-Nov-2015 Line: Unit: Country: Grenada Approval FY: 2012 LATIN AMERICA AND Lending Region: Specific Investment Loan CARIBBEAN Instrument: . Project Development Objectives Original Project Development Objectives: The Development Objectives of the Project are to: (i) strengthen the basic architecture of the consolidated Conditional Cash Transfer (CCT) Program and the capacity of the Ministry of Social Development to implement it; (ii) improve coverage of poor households receiving cash transfers; and (iii) improve education outcomes of poor children and health monitoring of vulnerable households. Proposed Project Development Objectives (from Restructuring Paper): The proposed revised Development Objectives of the Project are to strengthen the basic architecture of the SEED Program and the capacity of the Ministry of Social Development and Housing (MOSDH) to implement it. Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Marked for Number of individuals who Number Value 0.00 800.00 Deletion hitherto had never received Date 06-Oct-2014 31-Aug-2015 cash transfers, receive cash transfers after their eligibility Comment The design and to become beneficiaries has implementation been established through the of the PMT has PMT been delayed; therefore, this data is not yet available. Marked for Percentage of elderly Percentage Value 0.00 Deletion beneficiaries with chronic Date 06-Oct-2014 31-Aug-2015 health conditions not previously receiving curative Comment No change from Value will be medical care, now receiving previous. determined once curative medical care according health co- to MOH protocols responsibilities are introduced and a baseline established. New Increased percentage of poor Percentage Value 0.00 0.00 80.00 households receiving the SEED Date 31-May-2015 31-Dec-2017 cash transfer Comment Baseline to be determined once the PMT is applied. New Percentage Value 0.00 0.00 14  Increased percentage of the Date 31-May-2015 31-Dec-2017 program transfers that reach Comment Baseline to be poor households with children determined once the PMT is applied. Marked for 1.Increased percentage of Percentage Value 5.30 5.30 65.00 Deletion households in the poorest Date 27-May-2011 06-Oct-2014 31-Aug-2015 quintile that receive the benefit Comment Value has not changed because PMT has not yet been introduced. Marked for 2. Increased percentage of Percentage Value 20.00 20.00 60.00 Deletion program transfers reaching the Date 27-May-2011 26-Feb-2014 31-Aug-2015 poorest quintile Comment Value will not change until introduction of the PMT. Marked for 3. Increased school attendance Percentage Value 0.00 Deletion rates of beneficiary children Date 27-May-2011 26-Feb-2014 31-Aug-2015 Comment Baseline will be Value will be determined by determined upon impact evaluation establishment of during Year 3 of baseline implementation. Indicator will be revisited during mid-term review. Percentage Value 0.00 0.00 30.00 15 Marked for 4. Increased percentage of Date 27-May-2011 26-Feb-2014 31-Aug-2015 Deletion beneficiaries receiving Comment Baseline will Health protocols adequate preventive primary be determined and co- health services once health responsibilities protocols are have still not been established, introduced. due to occur during Year 2 of implementatio n Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target New MOUs between MOSDH and Text Value 0 0 3 MOF, MOH and MOE on Date 31-May-2015 31-Dec-2017 SEED implementation signed Comment The Memoranda between MOSDH and MOH, MOE and MOF have been completed. New Cabinet approval of the use of Text Value Use of the Cabinet has Cabinet has the PMT PMT is not yet approved use of approved use of approved by the PMT the PMT Cabinet Date 31-May-2015 31-Dec-2017 Comment No Change 1. The three cash transfer Text Value No merger of Three programs Three programs programs are merged programs, merged under the merged under 16  institutionally and placed under separate MOSD with the MOSD with MOSD budget budgets single budget single budget Date 27-May-2011 31-May-2015 Comment This has been met. Revised 2. Installation and Text Value MIS does not The MIS has been The MIS fully implementation of a exist deployed to operational. modernized MIS generating MOSDH for one beneficiary list and using testing. one payment method 27-May-2011 31-May-2015 31-Dec-2017 Date Comment Marked for 3. Percentage of beneficiaries Percentage Value 0.00 0.00 95.00 Deletion enrolled in the MIS who Date 27-May-2011 06-Oct-2014 31-Aug-2015 receive transfers based on their compliance with co- Comment The MIS has not responsibilities been finalized and the co- responsibilities have not been introduced yet. Revised 4. Percentage of SEED Percentage Value 0.00 0.00 95.00 beneficiaries identified as Date 27-May-2011 31-May-2015 31-Dec-2017 eligible through the new targeting tool Comment The tool has not been implemented yet. Percentage Value 0.00 0.00 95.00 Date 27-May-2011 31-May-2015 31-Dec-2017 17  4. Percentage of households Comment PMT has not been identified as eligible for the implemented yet. CCT based on the PMT No Change 5. Percentage of beneficiaries Percentage Value 0.00 0.00 95.00 who received information Date 27-May-2011 31-May-2015 31-Dec-2017 about rules and procedures of the SEED program Comment IEC Strategy has been established. However, beneficiary training for eligible households (identified through the PMT) has not been completed. Revised 6. The Appeals Committee Percentage Value 0.00 0.00 90.00 operational Date 27-May-2011 31-May-2015 31-Dec-2017 Comment The new system has not started functioning yet. 6. Percent of complaints and Percentage Value 0.00 0.00 90.00 Marked for appeals attended to and Date 27-May-2011 31-May-2015 31-Aug-2015 Deletion resolved, according to pre- defined standards Comment The new system has not started functioning yet. Revised 7. Results from Process Text Value No evaluation Evaluation Evaluation disseminated of program results published 18  and disseminated Date 27-May-2011 31-May-2015 31-Dec-2017 Comment Marked for Number of individuals who Number Value 0.00 0.00 100.00 Deletion hitherto had never received Date 27-May-2011 06-Oct-2014 31-Aug-2015 cash transfers, receive transfers after their eligibility to become Comment PMT still not beneficiaries has been established. established through the PMT . 19  Annex 2: Revisions to Disbursement Linked Indicators (DLIs) New DLIs Revised DLIs and Measurement Strategy Original DLI (US$250,000): The Recipient has taken steps to further consolidate SEED Program through: (a) approval of a special warrant creating a budget line dedicated to the SEED Program; (b) approval of a reallocation warrant to transfer funds to the SEED Program from two existing social safety net programs; and (c) establishment of the Cash Transfer Unit within the MOSDHH with structure, functions and responsibilities, as well as resources, acceptable to the Association. This DLI has been met. Original DLI (US$250,000): Unified management information system is established and single payment cycle is used for effecting Cash Transfer to Beneficiaries under the CCT Program. This DLI has been met. DLI 1 (US$200,000): 70 percent of beneficiaries have received critical information about the SEED program including: eligibility criteria, enrollment procedures, conditions for payments, appeals and complaints, and exit from the program. Measurement Strategy: Verification of: (i) Randomized verification or spot checks with beneficiaries. Expert Support: Field outreach and access to information. Compliance verification: MOSDH will provide required data to be verified by the Bank review. Revised DLIs and Measurement Strategy DLI 2 (US$250,000): Beneficiary Management Information System (BMIS) is operational. Measurement Strategy: Verification of: (i) Targeting instrument application and scoring process calibrated in BMIS; (ii) Database of households that the targeting instrument has been applied to, is stored in BMIS; (iii) Reporting, Payment and Co-responsibility modules in BMIS are fully functional. Expert Support: MIS/Information Systems. Compliance verification: MOSDH will provide required data to be verified by the Bank review. DLI 3 (US$300,000): The Appeals Committee is operational Measurement Strategy Verification of: (i) Cabinet approval of Appeals Committee composition and structure; (ii) Description of Appeals Committee functions and responsibilities in the SEED Operations Manual; (iii) Letters of Appointment to Appeals Committee members; and (iv) Official minutes of first Appeals Committee meeting. Expert Support: MOSDH Permanent Secretary Compliance verification: MOSDH will provide required data to be verified by the WB review. DLI 4 (US$200,000): 30 percent of beneficiaries are identified as eligible to receive SEED through the new targeting tool. DLI 5 (US$250,000): 60 percent of beneficiaries are identified as eligible to receive SEED through the new targeting tool DLI 6 (US$300,000): 80 percent of beneficiaries are identified as eligible to receive SEED through the new targeting tool Measurement Strategy: Verification of: (i) Database of complete applicant population in the BMIS; (ii) Selection of the subset based on agreed cut-off; and (iii) Payment of the selected subset from BMIS. Expert Support: PMT/Targeting and MIS Compliance verification: MOSDH will provide required data to be verified by the WB review. 21  Explanation of the changes in the DLIs Revised DLIs and Measurement Rationale Results Area Original DLI Strategy Nov 2011: DLI A.1 Unchanged This DLI has been met. (US$250,000) The Recipient has taken steps to establish the consolidated CCT Program through: (a) approval of a special warrant creating a budget line dedicated to the CCT Program; (b) approval of a reallocation warrant to transfer funds to the CCT Program from two existing social safety net programs; and (c) establishment A. Institutions, of the Cash Transfer Unit within Budget and the MOSHD with structure, Coverage functions and responsibilities as well as resources acceptable to the Association. Nov 2012: DLI A.2 The DLI has been removed. (US$500,000) 800 individuals, who hitherto had never received Cash Transfers, receive Cash Transfers after their eligibility to become beneficiaries has been established through the proxy means test.  Revised DLIs and Measurement Rationale Results Area Original DLI Strategy Nov 2012: DLI B.2 DLI 4: 30 percent of beneficiaries are The DLI has been replaced with (US$250,000) 70 percent of identified as eligible to receive SEED three consecutive ones that will beneficiaries are identified as through the new targeting tool. support the transition to the new eligible to receive Cash system. Transfers through the proxy means test (Baseline=0 in April, DLI 5: 60 percent of beneficiaries are 1 2011). identified as eligible to receive SEED through the new targeting tool DLI 6: 80 percent of beneficiaries are identified as eligible to receive SEED B. Beneficiary through the new targeting tool Outreach/Targeting Measurement Strategy: Verification of: (i) Database of complete applicant population in the BMIS; (ii) Selection of the subset based on agreed cut-off; and (iii) Payment of the selected subset from BMIS. Expert Support: PMT/Targeting and MIS. Nov 2011: DLI C.1 Unchanged This DLI has been met. C. Management (US$250,000) One unified Information System management information and Making system is established and single Payment against payment cycle is used for Co-responsibilities effecting Cash Transfers to 23  Revised DLIs and Measurement Rationale Results Area Original DLI Strategy beneficiaries under the CCT Program. Nov 2013: DLI C.3 DLI 2: Beneficiary Management This DLI has been revised to reflect (US$500,000) 70 percent of Information system (BMIS) is meeting the critical milestone of beneficiaries are paid based on operational. operationalizing the BMIS. To date, verification of compliance with there have been delays in completing applicable education and health Measurement Strategy: the design and roll-out of the BMIS. conditions set forth in the Verification of: (i) Targeting Further, meeting this DLI will ensure Operations Manual (Baseline=0 instrument application and scoring that critical processes related to in April, 1 2011). process calibrated in BMIS; (ii) administration, management and Database of households that the monitoring of SEED can be targeting instrument has been applied successfully carried out. to, is stored in BMIS; (iii) Reporting, Payment and Co-responsibility modules in BMIS are fully functional. Expert Support: MIS/Information Systems Nov 2012: DLI D.2 This DLI is unchanged (US$250,000) 70 percent of beneficiaries have received critical information about the D. Communication CCT Program including: eligibility criteria, enrollment procedures, conditions for payments, appeals and complaints procedures, and exit 24  Revised DLIs and Measurement Rationale Results Area Original DLI Strategy from the CCT Program (Baseline=0 in April, 1 2011). Nov 2013: DLI D.3 DLI 3: The Appeals Committee is The DLI has been revised to reflect (US$250,000) 70 percent of operational the establishment, training and complaints and appeals in functioning of the SEED Appeals relation to the CCT Program are Measurement Strategy Committees. attended to and resolved Verification of: (i) Cabinet approval pursuant to standards and of Appeals Committee composition procedures of the CCT and structure; (ii) Description of Program’s appeals and Appeals Committee functions and grievance mechanism. responsibilities in the SEED Operations Manual; (iii) Letters of Appointment to Appeals Committee members; and (iv) Official minutes of first Appeals Committee meeting. Expert Support: MOSDH Permanent Secretary Nov 2014: DLI E.4 This DLI has been removed. Given several methodological issues, (US$250,000) Evaluation report an impact evaluation will not be on the CCT Program, focusing carried out for the CCT within the E. Monitoring and on the impact of the Program and Project period. However, a process Evaluation its processes, is published on the evaluation will be prioritized, and its MOSD website. results used to inform necessary improvements to support meeting the objectives of the CCT. 25