The World Bank FOR OFFICIAL USE ONLY · 2016. 7. 13. · with its terms. No Effectiveness One time...

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 64759-TG

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT

IN THE AMOUNT OF SDR 9.2 MILLION

(US$14 MILLION EQUIVALENT)

TO THE

REPUBLIC OF TOGO

FOR A

COMMUNITY DEVELOPMENT AND SAFETY NETS PROJECT

February 28, 2012

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.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective 31 December 2011)

Currency Unit = CFAF

CFAF 1 = US$0.00193

US$ 1,53527 = SDR 1

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AGAIB Agency to Support Community Development (Agences d’Appui aux Initiatives de

Base)

CDD Community-Driven Development

CDP Community Development Project

CFAF Financial Community of Africa Franc/Franc de la Communauté Financière d‟Afrique

CPA Child Protection Agent

CPMP Public Procurement Committee (Commission de Passation de Marchés Publics)

CT Cash Transfer

CVD Community Development Committees (Comités Villageois de Développement)

ESMF Environmental and Social Management Framework

FM Financial Management

FY Fiscal Year

GDP Gross Domestic Product

IAS International Accounting Standards

IBRD International Bank for Reconstruction and Development

ICB International Competition Bidding

IDA International Development Association

IFR Interim Financial Reports

IGA Income Generating Activities

ILO International Labor Organization

IPR Independent Procurement Review

ISN Interim Strategy Note

LIPW Labor Intensive Public Works

MIS Management Information System

M&E Monitoring and Evaluation

NCB National Competitive Bidding

NGO Non-Governmental Organization

ODEF National Office for Forests Management (Office de Développement et d’Exploitation

des Forêts)

OP Operations Policy

ORAF Operational Risk Assessment Framework

PCN Nutritional Care Project (Projet de Prise en charge Nutritionnelle)

PDO Project Development Objectives

PIM Project Implementation Manual

PPR Post Procurement Review

PRSP Poverty Reduction Strategy Paper

QUIBB Core Welfare Indicators Questionnaire (Enquête Questionnaire sur les Indicateurs de

Base du Bien Etre)

RFP Request for Proposal

RPF Resettlement Policy Framework

RSR Rapid Social Response

SDR Special Drawing Rights

SIL Specific Investment Loan

SOE

SSN

Statement of Expenses

Social Safety Net

SW

TS

Staff weeks

Technical Secretariat

TTL Task Team Leader

UN United Nations

UNDP United Nations Development Programme

UNICEF United Nations Children's Fund

WFP World Food Program

Regional Vice President: Obiageli K. Ezekwsili

Country Director: Madani M. Tall

Sector Director: Ritva S. Reinikka

Sector Manager: Lynne D. Sherburne-Benz

Task Team Leader: Maurizia Tovo

TOGO

COMMUNITY DEVELOPMENT AND SAFETY NETS PROJECT

TABLE OF CONTENTS

Page

I. STRATEGIC CONTEXT .................................................................................................1

A. Country Context ............................................................................................................ 1

B. Sectoral and Institutional Context ................................................................................. 2

C. Higher Level Objectives to which the Project Contributes .......................................... 3

II. PROJECT DEVELOPMENT OBJECTIVES ................................................................4

A. PDO............................................................................................................................... 4

B. Project Beneficiaries ..................................................................................................... 4

C. PDO Level Results Indicators ....................................................................................... 5

III. PROJECT DESCRIPTION ..............................................................................................5

A. Project Components ...................................................................................................... 5

B. Lending Instrument ....................................................................................................... 7

C. Project Cost and Financing ........................................................................................... 7

D. Lessons Learned and Reflected in the Project Design .................................................. 8

IV. IMPLEMENTATION .......................................................................................................9

A. Institutional and Implementation Arrangements .......................................................... 9

B. Results Monitoring and Evaluation ............................................................................ 11

C. Sustainability............................................................................................................... 12

V. KEY RISKS AND MITIGATION MEASURES ..........................................................13

A. Risk Ratings Summary Table ..................................................................................... 13

B. Overall Risk Rating Explanation ................................................................................ 13

VI. APPRAISAL SUMMARY ..............................................................................................14

A. Economic and Financial Analyses .............................................................................. 14

B. Technical ..................................................................................................................... 15

C. Financial Management ................................................................................................ 15

D. Procurement ................................................................................................................ 16

E. Social (including Safeguards) ..................................................................................... 17

F. Environment (including Safeguards) .......................................................................... 17

Annex 1: Results Framework and Monitoring .........................................................................19

Annex 2: Detailed Project Description .......................................................................................24

Annex 3: Implementation Arrangements ..................................................................................32

Annex 4: Operational Risk Assessment Framework (ORAF) .................................................42

Annex 5: Implementation Support Plan ....................................................................................46

.

PAD DATA SHEET

Republic of Togo

Community Development and Safety Nets Project (P127200)

PROJECT APPRAISAL DOCUMENT .

AFRICA

AFTSP .

Basic Information

Date: 28 February 2012 Sectors: Other social services (70%), Primary education (30%)

Country Director: Madani M. Tall Themes: Other social protection and risk management (40%), Social safety nets

(30%), Other social development (30%) Sector Manager/Director: Lynne D. Sherburne-Benz/Ritva S.

Reinikka

Project ID: P127200 EA Category: B - Partial Assessment

Lending Instrument: Specific Investment Loan Team Leader(s): Maurizia Tovo

Does the project include any CDD component? Yes

Joint IFC: No .

Borrower: Republic of Togo

Responsible Agency: Technical Secretariat Community Development Project

Contact: Agboka Yawavi Title: Coordinator

Telephone No.: 228220-75979 Email: [email protected], [email protected] .

Project Implementation Period: Start Date: 22 March-2012 End Date: 31-Jul-2015

Expected Effectiveness Date: 01-Jul-2012

Expected Closing Date: 31-Jul-2015 .

Project Financing Data (US$M)

[ ] Loan [ X ] Grant [ ] Other

[ ] Credit [ ] Guarantee

For Loans/Credits/Others

Total Project Cost (US$M): 14.35

Total Bank Financing (US$M): 14.00 .

Financing Source Amount(US$M)

BORROWER/RECIPIENT 0.35

International Development Association (IDA) 14.00

Financing Gap 0.00

Total 14.35 .

Expected Disbursements (in USD Million)

Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021

Annual 4.7 4.9 4.4 0.00 0.00 0.00 0.00 0.00 0.00

Cumulative 4.7 9.6 14.0 0.00 0.00 0.00 0.00 0.00 0.00 .

Project Development Objective(s)

The proposed Project Development Objective is to provide poor communities with greater access to basic socio-economic infrastructures and social safety nets. .

Components

Component Name Cost (USD Millions)

Community subprojects 7.00

Social Safety Nets 4.20

Management and Operating Costs 2.80 .

Compliance

Policy

Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ] .

Does the project require any exceptions from Bank policies? Yes [ ] No [ X ]

Have these been approved by Bank management? Yes [ ] No [ ]

Is approval for any policy exception sought from the Board? Yes [ ] No [ X ]

Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] .

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waters OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X .

Conditions and Legal Covenants

Name Recurrent Due Date Frequency

According to article IV 4.01(a) of the

Financial Agreement, as effectiveness

condition an Implementation Agreement

has been executed on behalf of the

Recipient and each Implementing Agent

in accordance with the

provisions of Section I.B of Schedule 2

to the Financial Agreement

No Effectiveness One time

According to article IV 4.01(b) of the


condition the Recipient has established

the Project Steering Committee in

accordance with the provisions of

Section I.A.1 of Schedule 2 to the

Financial Agreement


According to article IV 4.01(c) of the


condition the Recipient has adopted the

Project Implementation Manual in

accordance with the provisions of

Section I.F of Schedule 2 to the Financial

Agreement


The Additional Legal Matters consist of

the following, namely that the

Implementation Agreement with each

Implementing Agent has been duly

authorized or ratified by the Recipient

and the Implementing Agent and is

legally binding upon the Recipient and

the Implementing Agent in accordance

with its terms.


According to the provisions of Section

IV.B.1 of Schedule 2 to the Financial

Agreement, no withdrawal shall be made

for payment of the First Cash Transfer

installment under Category (2)(a) unless

the Recipient has: (A) engaged the

Financial Agent in accordance with

Section I.E of this Schedule 2; and (B)

issued a complete list of Target Children

eligible to receive Cash Transfers in

accordance with the eligibility criteria set

forth in the Project Implementation

Manual, verified by an independent

expert appointed under Section I.I of this

Schedule 2, and in a manner satisfactory

to the Association (the list may be

updated from time to time with the prior

consultation and agreement of the World

Bank)

No September 1st, 2012 One time

According to the provisions of Section

IV.B.1 of Schedule 2 to the Financial

No March 1st, 2013 One time

Agreement, no withdrawal shall be made

for payment of the Second Cash Transfer

installment under Category (2) (b) unless

the Recipient has submitted to the

Association the technical audit report

satisfactory to the Association referred to

in Section II.B.4 of this Schedule 2 and

related to the use of the proceeds of the

First Cash Transfer installment, under

Category (2)(a). .

Team Composition

Bank Staff

Name Title Specialization Unit

Josiane M. S. Luchmun Program Assistant Program Assistant AFTSP

Maurizia Tovo Lead Social Development

Specialist

Team Lead ECSS4

Chantal Leontine Tiko Program Assistant Program Assistant AFMTG

Itchi Gnon Ayindo Senior Procurement Specialist Senior Procurement Specialist AFTPC

Esinam Hlomador-Lawson Team Assistant Team Assistant AFMTG

Elena Celada Consultant Consultant AFTSP

Fanta Touré E T Consultant E T Consultant AFTSP

Alain Hinkati Financial Management Specialist Financial Management Specialist AFTFM

Nneoma Veronica Nwogu Counsel Counsel LEGAF

Non Bank Staff

Name Title Office Phone City

.

Locations

Country First Administrative

Division

Location Planned Actual Comments

Togo Region Centrale, Kara, Maritime,

Savanes, Plateaux

.

1

I. STRATEGIC CONTEXT

A. Country Context

1. The Republic of Togo is a fragile state in West Africa with an area of 56 square kilometer

and a population of 6.2 million (2010 census), a per capita GDP of US$523 (2010 figures, World

Development Indicators) and a ranking of 162 out of 187 countries in the 2011 UNDP Human

Development Index. The decade of the 1990s and the first half of the 2000s were marked by

political and social tensions that considerably weakened the economy. The country is finally

emerging from this long socio-economic and political crisis and is making good progress on the

political and economic fronts. Democratic parliamentary elections took place in 2007 followed

by presidential elections in 2010, and both were considered fair by the international community.

The new Government has engaged in a process of reforms aimed at pursuing economic

development and poverty reduction, and tensions are easing.

2. Despite recent improvements in political stability and economic reforms, Togo„s growth

has remained low, with the external environment continuing to delay the expected recovery. A

series of crises in recent years have hampered early efforts and investments in growth. The food

and fuel price crisis in 2007-08, the devastating floods in 2008 and the repercussion of the global

economic recession in 2009-10 have taken an important toll. Real per capita income growth

stagnated over 2004-08 (an annual average of -0.1 percent), but slightly improved during 2009-

10 (an average of 0.7 percent). For 2011-13, real GDP growth rate is projected to exceed 4

percent, driven largely by increases in public investment, improved business confidence,

growing regional trade, and an expected rebound in phosphate production. Given the high

demographic growth rate (2.5 percent), however, the impact of the per capita income is expected

to be modest. Over the medium term, higher direct foreign investment (e.g., in the banking,

telecoms and phosphate sectors, as well as the port) and a rebound in traditional export crops

(including cotton, coffee and cocoa production) would further support economic growth. The

economy of Togo remains highly vulnerable to the external environment given its dependency

on European Foreign Direct Investment, remittances, Overseas Development Assistance and

trade flows, and positive growth projection might be negatively affected by the ongoing Euro-

zone crisis.

3. According to the most recent survey data (QUIBB 2006), about 62 percent of the

population is below the poverty line (around US$400 per year). Eighty percent of the poor live in

rural areas, where the poverty headcount is above 74 percent. Poverty is more prevalent in the

north, with the northernmost region of Savanes having a poverty incidence of 90 percent, but

because the south is more densely populated, almost half of the total poor population (45

percent) live in the two southern regions (Maritime and Plateaux). The shocks that affected Togo

in 2008-10 have likely worsened monetary poverty from the already high levels reported by the

2006 survey. A new household survey conducted in 2011 will provide updated figures on

national poverty by early 2012. Food insecurity and malnutrition are also of high concern,

especially in the northern regions of Kara and Savanes. According to a survey1 conducted by

World Food Program (WFP) in 2010 about 49 percent of households in the two regions are

affected by severe or moderate malnutrition.

1 Enquête rapide sur la sécurité alimentaire des ménages dans les Régions des Savanes et de la Kara (2010), WFP

2

B. Sectoral and Institutional Context

4. Government capacity to deliver basic social services to the majority of its population has

been hampered by the socio-political crisis that affected Togo for more than a decade and the

repeated crises of the past four years. Overall expenditures on health, education and other social

programs have been low, with 2009 expenditures for health at 1.7 percent of GDP and for

education at 4.6 percent of GDP. Needs in the social sectors remain high compared to the

financial and administrative capacity of the Government, with the situation being especially dire

in the social protection sector. In particular, social safety nets are very limited in size and scope,

costing less than 0.5 percent of GDP and covering less than 10 percent of the population.

According to a recent review conducted by the Bank, the majority of the safety net mechanisms

in place is poorly targeted and suffers from significant inefficiencies, with over 70 percent of the

programs consisting mainly of emergency food distribution. This situation leaves both poor and

not-so-poor highly vulnerable to shocks.

5. Nevertheless, important progress has been made in the social protection sector during the

past two years. In response to the crises that affected the country between 2007 and 2010, the

Government decided to rely increasingly on social safety nets as a mechanism to manage social

risk, improve the resilience of the population to economic shocks and address chronic poverty.

With World Bank support, two types of social safety nets were piloted as part of the Community

Development Project (CDP): a school feeding program and a labor-intensive public works

(LIPW) program. These programs constitute the first blocks of a national safety nets system to be

complemented by other types of interventions, such as cash transfer programs, which have

proven their effectiveness in contexts similar to Togo. The safety nets system will be an integral

part of the social protection policy that the Government is in the process of elaborating with the

technical and financial support of donors (especially the World Bank, UNICEF, UNDP and ILO)

and that is expected to be officially adopted in 2012.

6. In addition to its role as a social safety project, the CDP (2008-13) provided selected poor

communities with improved basic socio-economic infrastructures and income generating

opportunities. The 223 subprojects completed were directly identified and implemented by the

communities. These projects consisted primarily of rehabilitation and construction of schools,

water points, and health centers. Community-driven approaches to development (CDD) have

proven to be particularly effective in fragile states, and Togo is no exception. The CDP, which

adopts a CDD approach in an institutionally decentralized setting (see Section IV), has

consistently been the best performing operation in the Bank portfolio in Togo. The project has

been able to respond to the needs identified by remote rural communities by providing basic

infrastructure but also by strengthening beneficiaries‟ self-reliance and supporting income

generating activities (IGAs). The CDP was initially under jurisdiction of the Ministry of

Planning. However, the Government institutional setting for grassroots development was

reinforced in 2010 with the creation of a new ministry mandated to promote, coordinate and plan

community-based and community-driven interventions (including CDP and the proposed

project) --the Ministry of Community Development, Crafts, Youth, and Youth Employment. The

National Community Development Agency (Agence Nationale de Développement à la Base) was

created in 2011 as part of the above-mentioned Ministry and is expected to play a key role in

mobilizing and coordinating resources in favor of community-based interventions.

3

C. Higher Level Objectives to which the Project Contributes

7. The Government adopted in 2009 a full Poverty Reduction Strategy Paper (PRSP)

covering the period 2009-11. Specifically, the PRSP aims at (a) developing human capital and

improving basic social services, including social protection (Pillar III), and (b) reducing regional

imbalances and promoting community development (Pillar IV). A community-driven

development (CDD) approach to deliver basic social services is therefore in line with the

Government poverty reduction strategy as it contributes to the objectives of improving access to

social services and promoting community development. The project will also support the overall

social protection agenda in the country by developing and testing the essential tools of a safety

nets system (such as targeting, registration, payments, monitoring and evaluation) as well as by

piloting a new type of safety net, thus contributing to Pillar III of the PRSP.

8. The proposed project is fully consistent with the new Africa Strategy. In supporting

effective actions in social protection and in piloting a new safety net tool (cash transfers), the

project is building the Government's capacity to set up a more extensive and efficient Safety Net

System (SSN) for the country. It is also in line with the World Bank strategy for Togo, as

outlined in the Interim Strategy Note (ISN) FY 12-13. The Togo ISN has three main objectives:

(i) deepening the economic recovery process and promoting sustainable development; (ii)

supporting economic governance and transparency; and (iii) addressing urgent poverty reduction

and social needs. The proposed project will contribute to the third objective, and in particular to

outcome 3.1 “Improved access of communities to basic social and local development services”

and outcome 3.3 “Improved access to social protection services”.

9. Cash grants are devised to mitigate poverty, promote equity, manage shocks and facilitate

(macro) reform. In recent years the World Bank‟s support of cash transfer operations has

expanded, especially in low income and fragile countries. A review of the current portfolio of

cash transfers highlights the multidimensional use of this instrument in terms of (i) promoting

human development and productivity through income and consumption smoothing (e.g.,

Ethiopia, Malawi, West Bank and Gaza) (ii) protecting especially vulnerable groups and

population cohorts such as orphans and vulnerable children (e.g., Nepal, Lesotho, Kenya) and

(iii) preventing irreversible losses from shocks and emergencies (e.g., Bangladesh, Zambia). As

the portfolio has evolved, cash grants have typically formed part of a series of safety net

interventions, depending on the needs and objectives of specific programs.

10. Empirical evidence indicates that cash transfers have a significant development impact,

leading for example to increased spending on health, education and food security, as well as to

economic investment, e.g., under Ethiopia‟s Productive Safety Nets Project III at least 25 percent

of household cash transfers were used for productive purposes. This development impact can be

directly related to formal conditionalities (e.g., conditioning transfers to regular school

attendance results in higher school attendance) but also go beyond it (e.g., reduced early

pregnancies) or be independent of formal conditionalities (e.g., in South Africa unconditional

cash transfers to the elderly poor resulted in better schooling outcomes for their orphan grand-

children). Evidence also suggests that cash grants are particularly appropriate in contexts like

Togo‟s, where service supply is low and where administrative capacity is weak. The behavioral

changes encouraged as part of the proposed cash transfers pilot, such as improved nutrition

practices or participation in growth monitoring sessions, are intended to prevent child

4

malnutrition in the short-run but also to result in increased overall child welfare and, in the long-

run, greater human capital. The targeting criterion applied will ensure that benefits reach those

most in need, while a monitoring mechanism will assure compliance with fiduciary

requirements.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO

11. The proposed Project Development Objective is to provide poor communities with

greater access to basic socio-economic infrastructures and social safety nets.

B. Project Beneficiaries

12. The Project will benefit the rural poor in all five regions of Togo. Resources will be

allocated to regions according to the size of their population with incomes under the poverty line,

and then targeted at the canton2 level on the basis of a poverty map. Within each district,

discussions with local authorities and relevant line ministries will inform the allocation of

resources to communities. In cases where beneficiaries will not be the entire community but

rather groups or individuals within the community, objective selection criteria defined in the

Project Implementation Manual will ensure that resources are not captured by the village elite.

One subcomponent, a cash transfer (CT) pilot, will be implemented exclusively in the two

northernmost regions because they have the highest malnutrition rates and the CT targets

severely malnourished children.

13. The CDP covered 130,500 direct beneficiaries (with 50 percent women). With fewer

resources and project components, the present project (Community Development and Safety

Nets Project) expects to reach 70,250 direct beneficiaries including at least 50 percent women.

An estimated 8,000 children aged 6-24 months or severely malnourished (and their households)

will benefit from the CT pilot.

2 The canton is the lowest administrative level, and it is between the village and the prefecture.

5

Project Components/Subcomponents Number of Beneficiaries

CDP (Projected)

Community

Development and

Safety Nets Project

(Target)

Public works (workers) 25,000 10,000

School feeding (students receiving at least

one meal a day) 36,000 0

Farmers with access to fertilizers/seeds 14,000 0

IGAs (group members) 1,500 2,250

Community infrastructure - Students

enrolled in improved schools 24,000 20,000

Community infrastructure - People with

access to an improved water source 30,000 30,000

CT (children) 0 8,000

Total 130,500 70,250

C. PDO Level Results Indicators

14. The following indicators have been selected to monitor progress toward the Project

Development Objective:

a. Direct project beneficiaries (number and female percentage), of which:

o Beneficiaries with increased access to socio-economic infrastructures broken down

by type of infrastructure (i) students enrolled in rehabilitated schools; (ii) people with

access to an improved water source

o Beneficiaries receiving assistance for IGAs (number and female percentage)

o Beneficiaries receiving CT (number)

o Beneficiaries from LIPW (number and female percentage)

b. Community sub-projects functioning one year after completion (percentage)

c. Households receiving cash transfers on schedule (percentage)

III. PROJECT DESCRIPTION

A. Project Components

15. The project will have three components:

(a) Component 1 - Community subprojects (US$7 million). This component will

continue to rely on a CDD approach to promote community development by

financing two subcomponents:

(i) Subcomponent 1.1 - Infrastructure construction and rehabilitation

6

(US$6 million). This subcomponent will continue to facilitate

beneficiary access to improved health, education, water, sanitation and

other socio-economic infrastructures. It will finance approximately 170

basic infrastructure subprojects of a maximum cost of US$60,000 each

(average of US$35,000 per sub-grant).

(ii) Subcomponent 1.2 - Income generating activities (US$1 million). The

CDP facilitated 150 income generating activities (IGAs) that benefited

small groups of people within the targeted communities. An evaluation

carried out prior to project appraisal concluded that, overall, results were

satisfactory and this sub-component should be continued, albeit with

some adjustments (see Section D below). Approximately 150 IGAs with

a maximum cost of up to US$5,000 each will be implemented. These

activities will benefit small groups within the targeted vulnerable

communities and will primarily consist of small projects in fishing, arts

and crafts, and production, transformation, storage and marketing of

agricultural products.

As the implementation approach adopted under the CDP for the same activities

proved to be quite successful, it will be replicated under this second phase of the

operation. Lessons learned from the first phase (see Section C below) will be

incorporated into the new project design in order to improve it.

(b) Component 2 – Social Safety Nets (US$4.2 million). This component will

contribute to establish the essential building blocks for a national social safety nets

system by financing two subcomponents:

(i) Subcomponent 2.1 - Labor Intensive Public Works (US$2.2

million). LIPW represent an effective safety nets mechanism to protect

the poorest households from the consequences of a shortfall in revenues

due to seasonal unemployment, decreased economic activity or loss of

jobs. By constructing or rehabilitating public assets, LIPW also represent

investments that foster economic development and increase community

wellbeing. This subcomponent, piloted under the ongoing CDP, will

provide temporary employment opportunities to 10,000 poor individuals

by financing works such as restoration of degraded lands, water and soil

conservation, and feeder road maintenance. To be eligible for funding,

activities should have at least 60 percent of the total budget allocated to

labor costs. Youth living in rural areas will be the main target group, as

youth will represent 70 percent of intended beneficiaries.

(ii) Subcomponent 2.2 – Pilot Cash Transfers (US$2 million). Cash

transfers have proven to be highly effective and efficient in reducing

long-term vulnerability in contexts similar to Togo. As the Government

of Togo is developing its social protection strategy, it would be useful to

test a pilot cash transfer, and explore the extent to which this instrument

could be adopted by the Government in the long term. This

7

subcomponent, therefore, will pilot a cash transfers (CT) program

targeting children at risk of malnutrition or already severely

malnourished in the northern regions (Kara and Savanes) where

malnutrition rates are the highest in the country. This subcomponent will

complement an ongoing operation financed by UNICEF, the Nutritional

Care Project (Projet de Prise en Charge Nutritionnelle - PCN) that

provides nutritional recuperation to severely malnourished children and

preventive services in 565 villages. The pilot program will provide

monthly cash transfers to the children‟s mothers/caretakers as well as

growth monitoring and training sessions for caregivers (e.g., on health,

hygiene and nutrition). The CT will be 5,000 CFAF per month

(equivalent to approximately US$ 10) per child aged 6-24 months or

severely malnourished, for a maximum period of 18 months. Soft

conditionalities will include having a birth certificate for the child,

attending training and growth monitoring sessions and schooling older

siblings; strong compliance to the soft conditions will be rewarded with

extra cash, as will be specified in the project implementation manual.

(c) Component 3 – Management and Operating Costs (US$2.8 million). This

component will finance the salaries and operating costs of the five regional

implementing agencies and of the Technical Secretariat as well as all monitoring

and evaluation activities, information and communication campaigns, the financial

and technical audits and other consulting services.

B. Lending Instrument

16. The lending instrument for this project will be a Specific Investment Loan (SIL), given

in the form of an IDA grant. As Togo is entitled to have up to 50 percent of its total IDA

allocation in the form of grants, this project was selected to benefit from a grant in light of its

social character and its strong focus on the most dispossessed members of society. A SIL was

deemed appropriate as the project supports the creation, rehabilitation, and maintenance of

economic, social, and institutional infrastructure. It should be noted that the present project is a

follow-on of another project, implementing largely the same activities but with the addition of a

pilot safety net mechanism.

C. Project Cost and Financing

17. Total project cost is US$14.35 million of which US$14 million financed by IDA. The

remaining US$0.35 million represents the communities contribution to subprojects, that is 5

percent of total subproject cost. No other co-financing is envisaged at the moment. The table

below summarizes project costs by component and provides the share of each component on the

total IDA budget. Disbursement of the cash transfer subcomponent will be made in two

installments, on the basis of an independently verified list of beneficiaries. In particular, the

initial disbursement will be made upon receipt of (a) the list of beneficiaries selected in line with

the criteria identified in the manual; and (b) the verification of the list by a third party

independent expert who will confirm adherence to the manual. The second installment will be

8

disbursed upon receipt by IDA of a satisfactory technical audit confirming the eligibility of

expenditures.

Project Components Project Costs

(US$ million)

IDA Financing

(US$ million)

% of Financing

1.Community subprojects

1.1 Infrastructure

1.2 IGAs

6.30

1.05

6.00

1.00

43%

7%

2.Social Safety Nets

2.1 LIPW

2.2 Cash Transfers

2.20

2.00

2.20

2.00

16%

14%

3. Management and

Operating Cost

2.8 2.8 20%

Total Project cost 14.35 14 100%

D. Lessons Learned and Reflected in the Project Design

18. Lessons from the first phase of the CDP. The new project design will reflect the lessons

learned during the first phase of the CDP. During this phase, the decentralized regional

institutional arrangements proved to be efficient in reaching the communities in marginalized

rural areas. For this reason the institutional framework and the implementation procedures will

be mostly aligned with the ones used under the first phase. However, weaknesses were identified

in some areas. These are summarized below together with the corrective measures to be applied

in the present project.

(a) Targeting and subproject selection. There is scope to improve the targeting

mechanism and increase the transparency in the selection of subprojects for both the

community development component and the LIPW sub-component. So far the only

targeting was on broadly geographical grounds (i.e., by region, based on poverty

levels and population size) with the selection of subprojects done mainly on a first-

come first-served basis. The need to have a clearer framework for targeting and

selection is dictated by the vast amount of requests coming from communities (the

first CDP was capable of responding to less than 10 percent of those requests) and

calls for better defined selection criteria, especially considering the high visibility of

the project and the resulting high number of requests expected. The new poverty map

(expected in early 2012) will show poverty incidence at the canton level and therefore

allow for much more precise geographic targeting.

(b) Income Generating Activities. Grants for IGAs proved to be a good tool to promote

and sustain small businesses and agricultural activities in rural areas. However, some

implementation aspects need to be readjusted, in particular with reference to

beneficiary selection and the role of the intermediaries. During the first phase of the

project, some of the grants went to the better-off groups because there were basically

no targeting criteria. The proposed operation will set clear selection criteria (which

will be detailed in the PIM) and limit the size of the grants to discourage better off

entrepreneurs. In addition, the technical support and supervision provided by local

9

intermediaries was often inadequate, in part because of the payment structure and in

part because of inappropriate intermediary selection. These issues will be addressed

by relying to a greater extent on individuals rather than organizations, and by revising

the payment structure.

(c) LIPW. The percentage of labor force costs imposed under the CDP was 85 percent of

direct subproject cost. This greatly limited the choice of eligible activities and in

some cases reduced the quality of the assets created. The share of labor costs will now

be lowered to 60 percent in order to balance employment creation with asset quality.

Also, stronger collaboration will be established with the regional platforms for

disaster risk reduction so as to identify high labor-demand activities that contribute to

increase resilience of the population to the negative impact of weather-related shocks

and climate change. Finally, the payment mechanism used so far, which relies on Post

Offices, does not seem to be appropriate and has raised many complaints (e.g.,

payment delays and travel costs for beneficiaries). A study commissioned by the

World Bank to identify a more suitable payment mechanism concluded that the

finance –and especially microfinance-- sector had sufficiently evolved to warrant a

competitive approach among financial institution (see details in the Financial

Management section below).

19. Lessons from analytical work. The project will also build on the result of the analytical

work conducted by the World Bank and other UN agencies on social protection and social safety

nets. With the support of the Rapid Social Response Trust Fund, the Bank conducted a series of

technical assistance activities to support the Government in developing a national social safety

nets strategy, including a social safety nets review. The review made suggestions on how to

reinforce the system, and cash transfers were identified as a suitable instrument to address social

protection gaps. The World Bank also conducted a feasibility assessment for cash transfer

programs in Togo, which informed the preparation of the new subcomponent. In addition,

UNICEF conducted a study on child-sensitive social protection which provided important

elements that have been incorporated in the design of the pilot CT. In addition, lessons from cash

transfers programs elsewhere in the world have been taken into account. For example, consistent

with established good practice, the amount of the transfers is around one third of the absolute

poverty line and the transfers will be given to mothers/caregivers rather than to the head of

household. Also, conditionalities will not be enforced strictly, as this has been found to have

excessive administrative costs and to be very difficult to enforce in practice.

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements

20. The project will rely on the decentralized institutional framework adopted under the

Community Development Project (CDP), which is now well tested and proved to be efficient.

The main institutional actors and their roles are described below.

10

The Ministry of Community Development, Handicraft, Youth and Youth

Employment will be responsible for the overall project. In particular it will continue to

have global oversight and head the Steering Committee for the project, which includes

representatives from nine ministries, three donors and four civil society organizations.

A Technical Secretariat, under the Ministry in charge of community development will

have fiduciary responsibilities at the central level and be responsible for overall planning,

internal auditing, and monitoring and evaluation. In particular, it will manage the

designated account and prepare withdrawal applications. The payment mechanism for the

beneficiaries of LIPW and CT will also be managed by the Technical Secretariat, but

outsourced to one or more financial institutions specialized in this type of services. These

financial institutions will be recruited in full conformity with the selection procedures of

the World Bank.

At the regional level, the project will be implemented by five regional agencies called

AGAIB (Agences d’Appui aux Initiatives de Base). AGAIB are private non-profit

entities, whose boards of directors comprise representatives of NGOs, Government and

civil society. The Government will sign a subsidiary agreement with each AGAIB as an

implementation agent (which will include their administrative costs), and the Technical

Secretariat will transfer funds to their accounts. Concerning Component 1, the five

AGAIB will be responsible, each in its respective region, for carrying out project

activities using a CDD approach whereby beneficiaries identify, plan and implement their

own subprojects. In practice, they will (a) assist communities and IGA beneficiaries in

determining their needs, preparing proposals and implementing subprojects or contract

intermediaries (mostly local NGOs) to do it; (b) assist community-based organizations

and, if needed, intermediaries, to develop technical and managerial skills in relation to

their subprojects; (c) guarantee the technical soundness and viability of proposed

subprojects; (d) work closely with Government officials to ensure subproject

sustainability and consistency with sector policies and plans; (e) transfer funds to

beneficiaries and (f) retain fiduciary responsibilities at the regional level. For sub-

component 2.1. (Labor Intensive Public Works), the five AGAIB will be responsible,

each in its respective region, for: (a) assisting communities in identifying, planning and

implementing subprojects or selecting and contracting intermediaries to do it; (b)

supporting and supervising intermediaries‟ work; (c) validating the list of beneficiaries

and transmitting it to the Technical Secretariat; (d) procuring all equipment and materials

needed for the LIPW subprojects. For sub-component 2.2 (Cash Transfers) AGAIB Kara

and AGAIB Savanes will be responsible, each in its respective region, for: (a) organizing

supervision field visits in beneficiary villages; and (b) providing support to the

community actors involved in project implementation.

The Ministry of Social Action and National Solidarity will be closely involved in the

implementation of the CT subcomponent, particularly through its regional representations

in Kara and Savanes regions. Responsibilities will include finalizing beneficiary

registration, checking on compliance with the soft conditionalities, providing

complementary household support, and monitoring activities in collaboration with

AGAIB staff.

11

Other relevant sectoral ministries (e.g., education, health, transport, and water and

sanitation) will be involved in the project mainly at the regional level, as they will have to

ensure that subprojects are consistent with sectoral policies, regulations and plans.

Hence, they will have a role to play when deciding on the funding of proposals in their

sectors as well as in supervising (in collaboration with AGAIB staff) their

implementation.

UNICEF will be a partner for the cash transfers sub-component. It will support training

of community health agents on nutrition and health related matters and pay them, provide

the equipment needed for growth and nutrition monitoring, facilitate the process of

obtaining birth certificates, and support the regular assessment of progress related to

nutritional outcomes. A memorandum of understanding will clarify roles and

responsibilities of UNICEF and the Technical Secretariat. The memorandum of

understanding is expected to be signed by June 30, 2012.

21. Communities will of course play a central role, primarily through their Village

Development Committees (Comités Villageois de Développement – CVDs). CVDs will be the

main conduit for the implementation of community infrastructure, as they will prepare and

submit to the AGAIB subproject proposals, sign a subproject grant agreement with AGAIB,

open and operate a bank account to receive subproject funding, hire and supervise contractors,

and overall see to the correct use of the funding made available. They will also play a role in

proposing subprojects for the LIPW subcomponent, and in selecting beneficiaries in accordance

with stated guidelines.

22. Proceeds of the IDA Grant will be deposited into one Designated Account managed by

the Technical Secretariat and, for the most part, will be channeled to the bank accounts of the

AGAIB. For the community subprojects component, the AGAIB will then transfer funds to the

accounts opened by the CVD or by the groups selected for IGA support in accordance with the

PIM and the terms and conditions of the subproject grant agreements. For the social safety nets

component, funds will be transferred to the beneficiaries directly by the Technical Secretariat

through a financial institution as described more in detail below (see Section IV.C).

23. The proposed implementation arrangements do not involve major risks and have proved

to be adequate under the CDP. Staff of the Technical Secretariat and AGAIB have been recruited

competitively and trained on World Bank financial management and procurement procedures.

Local NGOs tend to have limited capacity, but the AGAIB will continue to provide training and

technical support to the ones selected to work with program beneficiaries. In addition,

mechanisms to increase social accountability and foster demand-driven governance will be

developed and detailed in the Project Implementation Manual (PIM).

B. Results Monitoring and Evaluation

24. The results monitoring framework assesses progress towards the PDO through key

indicators, focusing on improving community access to basic socio-economic infrastructure and

increasing access to safety nets. In addition, intermediate indicators will monitor the progress of

each component over the life of the project (Annex 1). The Technical Secretariat will use

additional indicators to monitor increase in food consumption among households targeted by the

12

cash transfers, as well as reduction in the number of targeted households who return to the center

with a child suffering from malnutrition. Monitoring and evaluation (M&E) arrangements will

be centralized at the level of the Technical Secretariat, which is in the process of establishing a

M&E system for the CDP. This system will include an exhaustive database that will be regularly

updated based on the M&E strategy that is being developed. Through this strategy, the AGAIB

will be expected to share a specific set of data with the Technical Secretariat on a regular basis,

and the M&E specialist will randomly visit sites to verify the accuracy of the data shared,

accompanied by the Internal Auditor as needed. Monitoring will occur at each stage of project

implementation, in order to identify arising problems and issues and to promptly consider and

adopt corrective measures.

25. The project will conduct mid-term and end of the project evaluations to gauge progress

towards the PDO, to assess the impact of the project on the beneficiaries, to assess the quality of

the works carried out, as well as overall project efficiency. The focus of the evaluation will be

on: (i) levels of increase in access to basic socio-economic infrastructures; (ii) process

evaluation, to assess the effectiveness of the procedures of safety nets interventions including

identification, targeting, registration and payment of beneficiaries of cash transfers and LIPW

interventions; and (iii) the impact of the IGAs on the revenues of beneficiary households.

C. Sustainability

26. Given its budgetary constraints, Togo is currently unable to take over project financing.

However, extensive fundraising efforts are underway to increase the budget available for the

Community Development and Safety Nets Project activities. The African Development Bank and

the Islamic Development Fund have been contacted, and the World Bank obtained additional

resources from the Rapid Social Response (RSR) to support the Government in developing a

coherent national social protection system in particular by financing a series of technical

assistance activities including the identification of the most appropriate targeting and payment

mechanisms and the establishment of a solid M&E system. The RSR is also supporting the

Government in elaborating a social protection strategy and accompanying policy. The safety nets

piloted under the Community Development and Safety Nets Project will represent the first

blocks of this emerging safety nets system. Additional work is being done as part of the ongoing

policy dialogue supported by the RSR to create greater fiscal space for social protection in the

national budget.

27. The outlook for institutional sustainability is more positive, as the Government has

demonstrated outstanding commitment to this intervention. The Technical Secretariat is

anchored in the Ministry of Community Development to which it reports directly, and it is

expected that it will partner closely with the National Community Development Agency for

coordination purposes. The regional AGAIB are independent institutions that can continue to

operate if they manage to secure additional funding from other donors (national and non

national). As the first two AGAIB, created in 1998, managed to survive for over six years

without World Bank funding, there is reason to be optimistic.

28. Technical Secretariat and AGAIB staff have attended numerous trainings on project

management and social protection. Their hands-on experience with the CDP is also invaluable.

13

This knowledge transfer ensures that the skills relevant to continue this intervention will remain

beyond the life of the project.

V. KEY RISKS AND MITIGATION MEASURES

A. Risk Ratings Summary Table

Stakeholder Risk Low

Implementing Agency Risk

- Capacity Moderate

- Governance Moderate

Project Risk

- Design Moderate

- Social and Environmental Low

- Program and Donor Low

- Delivery Monitoring and Sustainability High

Overall Implementation Risk Moderate

B. Overall Risk Rating Explanation

29. This is the second phase of one of the most successful projects in the Togo portfolio,

which has been requested by the Government and enjoys great counterpart commitment. At the

project level, risks are quite limited because of the well tested implementation arrangements and

satisfactory results produced by the same arrangement in the past. Staff in the implementing

agencies is familiar with Bank procedures and has shown reasonable technical competence;

monitoring and evaluation are probably the weakest aspect of project management, but

corrective measures are being taken (see details below). The decentralized set-up brings the

project closer to its beneficiaries and makes it easier to scrutinize, thus providing additional

protection from irregularities and undue interferences.

30. An issue that will need to be kept in mind throughout project implementation is the

recurrent nature of safety net expenditures and therefore the need to secure additional, long-term

financing if the mechanisms tested prove successful. Intense dialogue with Togo‟s development

partners as well as with the Government has already started and will continue to be crucial.

31. Below is a more detailed description of some specific risks.

Error, Fraud and Corruption: The introduction of a new component on cash transfers

increases risks of error, fraud and corruption in the project. The possibility of making

errors in the targeting, registration and payment of beneficiaries is real, considering the

lack of familiarity with this type of intervention among key stakeholders, although

targeting will be fairly straightforward as it will be based on nutritional indicators with

which it is difficult to tamper. Also, while the risk of interference in the selection of CT

beneficiaries may be high, leakages should be fairly easy to detect with supervision

14

because of the targeting criteria chosen. On the other end, targeting and selection for

other activities financed by the project will be a lot more open to errors and interferences

because criteria will necessarily be more subjective and/or more difficult to verify than

weight and height. To mitigate this risk, the criteria will be spelled out in the PIM and

their application closely supervised. In addition, salaries in the LIPW will be set slightly

below market rate, thus reducing incentives for better off households to participate and

resulting in self-targeting. A poorly designed payment system could also create

opportunities for leakages, and for funds to be diverted before or after reaching the

beneficiaries. An assessment of alternative payment methods was carried out during

appraisal and the arrangements selected for the project are those that provided the best

mix of cost-effectiveness, efficiency and safety.

Delivery Monitoring and Sustainability: All studies conducted to date have identified

monitoring and evaluation as the key area of improvement for the implementing agency.

As a result, a monitoring and evaluation specialist has been hired and will work in close

partnership with a consultant to establish a M&E system for the CDP. Luckily, there are

many examples of effective M&E systems for similar projects in Africa and elsewhere,

including software programs that can be easily adapted to the CDP specificities (e.g., the

one used by the Côte d‟Ivoire Post Conflict Assistance Project that has a CDD and LIPW

components). The Community Development and Safety Nets Project will build on the

M&E system of the ongoing project to ensure smooth delivery of results.

VI. APPRAISAL SUMMARY

A. Economic and Financial Analyses

32. Investments under the community subprojects component are not pre-identified given

their demand-driven nature, and for this reason an ex-ante cost-benefit analysis is not applicable.

However, a comparison of the cost of infrastructure financed by the CDP with that of similar

infrastructure built with other approaches suggests that the former was quite cost-effective, e.g.,

CDP schools were about 15 percent cheaper than schools financed by the EU and UNDP, and

CDP latrines were at least 30 percent cheaper than others. Thus, it is reasonable to expect that

infrastructure investments under the proposed project will continue to compare favorably to

similar infrastructure investments. The economic benefits that will accrue from the project will

include improved access to -among others – education, health and IGAs for poor rural

communities. The design of the selection process for infrastructure subprojects incorporates

measures to maximize economic benefits including: (a) a participatory community planning

mechanism to select investments, which ensures that investments address the real needs of the

population and will therefore be put to good use; (b) direct implication of local representatives of

sectoral ministries, which ensures that investments are in line with national priorities and

implemented according to sectoral guidelines; and (c) a comprehensive subproject screening

process including a technical and feasibility review. Concerning IGAs: (a) all subprojects will

be screened for technical soundness as well as both short-term and medium-term profitability;

and (b) beneficiaries will be offered training, management support and technical assistance so as

to maximize profits and sustainability.

15

33. The economic analysis of the safety nets component suggests that the project has

important economic benefits. In particular the economic analysis of the cash transfer sub-

component shows that the proposed level of transfer is (a) likely to make a significant impact on

the wellbeing of children and their nutritional status and human capital (the annual transfer

corresponds to about 40 percent of the poverty line); and (b) efficient compared to other safety

nets, especially direct food distribution. The LIPW sub-component has been designed to

maximize the impact on beneficiaries (the transfer corresponds to about 30 percent of per capita

annual consumption in rural areas) and minimize the foregone income from other activities

(LIPW will take place mainly during the dry season when agricultural activities are very

limited). In addition, experiences of this type of programs in the sub-region show that revenues

from public works are used to finance both immediate needs (e.g., food) and longer term

investments (e.g., farming equipment and supplies) ensuring some level of sustainability of the

poverty reduction impact of these projects.

34. Proposed management costs (at 20%) are somewhat higher than what could be expected

for a repeater project. The reason is that the decentralized implementation arrangements put in

place for the current CDP have fixed costs that cannot be reduced beyond a certain level without

endangering performance. Thus, although a number of measures were taken to contain

management costs, it would not be wise to reduce them further. On the other hand, the present

institutional set-up has proven capable of managing much larger investments and could therefore

easily absorb additional funding. Considering that for the past three years more IDA financing

than originally envisaged was made available to Togo in light of its accomplishments, and that

there is increasing donor attention to the country, it is reasonable to expect that the project will

be able to attract more money.

B. Technical

35. The proposed technical design has been agreed with the Government of Togo and it is the

most appropriate to support the borrower objectives of alleviating poverty in rural areas and

promoting community development. In fact, in a country with limited administrative and human

capacity at the central level, a community-based project that relies on a decentralized

institutional framework is the most suitable approach to reach disadvantaged rural communities

and provide basic social infrastructures, employment opportunities and some form of social

protection. The proposed design also promotes local decision making, community involvement

and ownership.

C. Financial Management

36. The overall financial management risk rating is assessed as moderate. The conclusion of

the financial management (FM) assessment is that the FM arrangements for the Project in place

satisfy the World Bank‟s minimum requirements under OP/BP10.02 and are adequate to provide,

with reasonable assurance, accurate and timely information on the status of the Project as

required by the Bank. The project implementing agencies, the Technical Secretariat and regional

AGAIB, have developed a strong capacity for CDD-type projects during the three-year

implementation of a US$32 million CDP with the World Bank. The FM staff at central and

regional levels is well experienced and the multi-projects accounting software in place is

adequate to generate reliable financial statements. The internal auditor located at the Technical

16

Secretariat carries out regular on-site supervision missions using a risk-based approach to ensure

appropriate compliance with the project procedures. The external auditor issued an unqualified

opinion on the 2010 financial statements and the overall FM performance of the ongoing project

is satisfactory.

37. The FM arrangements for the new project will be based on the existing arrangements.

The only new activity is a pilot cash transfer program to households with children at risk of

malnutrition. The payment for the beneficiaries of the LIPW and CT will be managed by the

Technical Secretariat but outsourced to one or more financial institutions specialized in this type

of services. In addition to the necessary financial, operational and technological capacity,

financial institutions will also have to demonstrate a well performing representation in the rural

areas capable of making direct payments to the beneficiaries. Those financial institutions will be

recruited in full conformity with the relevant selection procedures of the World Bank. The

payment procedures will be detailed in the PIM. Disbursement of the cash transfer

subcomponent will be made in two installments, on the basis of an independently verified list of

beneficiaries. In particular, the initial disbursement will be made upon receipt of (a) the list of

beneficiaries selected in line with the criteria identified in the manual; and (b) the verification of

the list by a third party independent expert who will confirm adherence to the manual. The

second installment will be disbursed upon receipt by IDA of a satisfactory technical audit

confirming the eligibility of expenditures.

38. In order to mitigate the fraud and corruption risks inherent to the Togo public sector and

reinforce project governance, the following measures have been incorporated into the project

design: (i) regular and frequent internal audit missions will be carried out by the internal auditor

with particular attention to activities at decentralized levels; (ii) a reasonable sample of sub-

grants and disbursements under social safety nets operations will be reviewed each year by the

financial auditor to ensure that activities have been executed pursuant to the agreed procedures

and that funds were used for the purposes intended; (iii) two technical audits will be carried out

on sub-projects financed during the project life; and (iv) a grievance management system will be

established to enhance social accountability by permitting appropriate treatment of complaints

from both beneficiaries and non beneficiaries of the project.

D. Procurement

39. As the institutional arrangement of the new project is the same as the current Community

Development Project, a new full procurement capacity assessment is not necessary. The

implementation arrangements and recommendations will be based on the findings and lessons of

the Post Procurement Review (PPR) conducted in May 2011 and the new national procurement

framework effective since January 2011. The overall project procurement risk has been rated as

moderate. After three years of implementation of a Bank project, the Technical Secretariat and

each AGAIB have gained a good experience in procurement implementation. For the

implementation of the new project, the measures agreed upon are to use a procurement

consultant to assist a nominated Procurement Officer within the relevant Ministry‟s Public

Procurement Committee (Commission de passation de marchés publics or CPMP), to hold the

regional AGAIB accountable for procurement activities at the community level and to update the

procurement manual regarding the current national procurement framework.

17

40. Procurement activities that concern the Technical Secretariat or more than one

implementation Agency will be carried out by the Procurement Officer in the CPMP. The

Technical Secretariat will be responsible for compliance with procedures. The regional entities

(AGAIB) will be able to carry out procurement for contracts with a low value. Grassroots

communities will implement subprojects according to simplified procedures (procurement with

community participation) accepted by IDA. Communities will receive systematically the

required basic training on the Simplified Guidelines for Procurement and Disbursement for

Community-Based Investments before receiving the first grant installment from the AGAIB.

E. Social (including Safeguards)

41. Social impacts of the community subprojects are expected to be mainly positive, as the

implementation approach aims at building self-reliance and strengthening social capital in

addition to providing better access to a range of social services. Experience with subproject

implementation under the CDP suggests the risk of only very marginal negative impacts on local

populations. A project‟s Resettlement Policy Framework (RPF) was elaborated in 2008 and will

continue to be applied under the proposed project. The selected subprojects are located in

Government-owned open lands and did not require any acquisition of land, nor restricted access

to land and resources. The social risks of the safety nets component revolve primarily around

possible tensions regarding the selection of beneficiaries for LIPW and cash transfer. In order to

minimize possible tensions the project will set clear criteria and transparent procedures for

beneficiary selection and registration. For the CT pilot, in order to avoid envy and social

tensions, an objective criteria (severe malnutrition) has been chosen to identify beneficiaries. For

the LIPW the selection criteria are described in the PIM and are consistent with the project

principles of community-based decision making, transparency and voice, and social

accountability.

F. Environment (including Safeguards)

42. The environmental category of the Project is B and OP/BP 4.01 (Environmental

Assessment) and OP/BP 4.12 (Involuntary Resettlement) are triggered. This Project is not

triggering safeguard policies regarding safety of dams (OP/BP 4.37) and international waterways

(OP/BP 7.50). For the community development component it is estimated that the majority of

the financing of subprojects will be for the construction and rehabilitation of physical

infrastructures and other tangible assets. Environmental issues important to the project are: (a)

awareness-raising of beneficiary communities on possible environmental impact of subproject

activities; (b) discussion of environmental issues during subproject design phase; and (c)

environmental impact study and agreement on appropriate mitigation measures. As the sub-

component on LIPW is expected to continue financing environmental protection activities, it will

strengthen the environmental situation of severely degraded areas of rural Togo, hence having a

positive impact of the environment. The sub-component on cash transfers is expected to have no

environmental impact.

43. The CDP developed a comprehensive safeguards management system including an

Environmental and Social Management Framework (ESMF), Resettlement Policy Framework

(RPF), and a Note on Management of Pesticides. These management tools were prepared in

2008, approved by the Bank and disclosed in country and in the InfoShop on February 19, 2009.

18

The ESMF was then updated in 2010 to take into account the LIPW reforestation activities that

were added to the CDP project that year. These tools were widely disclosed to the public and

were the object of intense training of Government officials, the Technical Secretariat of the CDP,

the AGAIB, implementing partners and other stakeholders. Updated ESMF and RPF have been

prepared by the Government to reflect the new project design and were disclosed in Togo on

December 8, 2011 and in the InfoShop on December 9, 2011.

19

Annex 1: Results Framework and Monitoring

COUNTRY: TOGO Community Development and Safety Nets Project .

Results Framework .

Project Development Objectives: To provide poor communities with greater access to basic socio-economic infrastructures and social safety nets .

.

Project Development Objective Indicators

Annual Values End Target

(cumulative)

Data Source/ Frequency

Indicator Name Core Unit of Measure Baseline YR1 Dec 2013 Dec 2014 Dec 2015 Responsibility for

data collection

Methodology Data Collection

Direct project

beneficiaries Number 0.00 23670.00 47760.00 70250.00 70250.00 AGAIB


consolidated

reports

Quarterly &

annual

Female beneficiaries Percentage 0.00 50.00 50.00 50.00 50.00 AGAIB

Technical

Secretariat consolidated

reports

Quarterly & annual

Students enrolled in rehabilitated/constructed

schools3

Number 0.00 6600.00 13,300 20000.00 20000.00 AGAIB

Technical

Secretariat

consolidated reports

Quarterly &

annual

Beneficiaries with access

to an improved water

source

Number 0.00 10000.00 10000.00 30000.00 30000.00 AGAIB

Technical


reports

Quarterly & annual

Beneficiaries receiving assistance for income

generating activities

Number 0.00 750 750 2250 2250 AGAIB

Technical

Secretariat


Quarterly &

annual

Beneficiaries receiving cash transfers

Number 0.00 3000.00 3000.00 8000.00 8000.00 AGAIB

Technical


reports

Quarterly & annual

3 Target values for students enrolled in upgraded schools and access to improved water sources are estimates because the subcomponent is demand driven.

20

Beneficiaries from LIPW Number 0.00 3320.00 6660 10000.00 10000.00 AGAIB

Technical


reports

Quarterly & annual

Community subprojects operating one year after

completion

Percentage 0.00 75.00

80.00 80.00 80.00

AGAIB

Technical

Secretariat


Quarterly &

annual

Households receiving

cash transfers on

schedule

Percentage 0.00 50.00 60.00 70.00 70.00 AGAIB

Technical


reports

Quarterly & annual

.

Intermediate Results Indicators

Cumulative Target Values Data Source/

Responsibility

for

Indicator Name Core Unit of Measure Baseline YR1 Dec 2013 Dec 2014 Dec 2015 End Target Frequency Methodology Data Collection

Component I: Community subprojects

Basic socio economic infrastructure

rehabilitated/maintained4

Number 0.00 50.00 110.00 170.00 170.00 AGAIB

Technical

Secretariat


Quarterly &

annual

Classrooms built or rehabilitated

Number 0.00 AGAIB

Technical


reports

Quarterly & annual

Health facilities constructed/renovated

and/or equipped

Number 0.00 AGAIB

Technical

Secretariat


Quarterly &

annual

Improved community

water points constructed or rehabilitated

Number 0.00 AGAIB


consolidated

reports

Quarterly &

annual

Basic socio economic

infrastructure assessed as

having satisfactory technical quality

Percentage 0.00 75.00 75.00 80.00 80.00 AGAIB Technical audit Quarterly &

annual

4 A breakdown of the type of infrastructures to be rehabilitated and corresponding target values will be added after the infrastructures have been identified by the

communities.

21

Income generating activities subprojects

Number 0.00 50.00 100.00 150.00 150.00 AGAIB

Technical


reports

Quarterly & annual

Component II: Safety Nets/ labor intensive public works

Person days of work

provided through this project

Number 0.00 132,800 266,400 400,000 400,000 AGAIB


consolidated

reports

Quarterly &

annual

Female participation Percentage 0.00 40.00 40.00 40.00 40.00 AGAIB

Technical

Secretariat


Quarterly &

annual

Young people (aged less

than 35) employed Percentage 0.00 70.00 70.00 70.00 70.00 AGAIB


consolidated

reports

Quarterly &

annual

Public works schemes

completed with

satisfactory technical quality


Technical

Secretariat


Quarterly &

annual

Communal 5infrastructures

rehabilitated through the

public works

Number 0.00 TBC TBC TBC TBC AGAIB


consolidated

reports

Quarterly &

annual

Cash transfers

Registered households

who are receiving the cash transfers



consolidated

reports

Quarterly &

annual

Beneficiaries complying

with the requirements to participate in soft

conditions


Technical


reports

Quarterly & annual

Component 3: Project management

Maximum percentage of

project funds used for

project management


Technical


reports

Quarterly &annual

5 To be confirmed after the selection of the subprojects by targeted communities. This is expected to include core indicators such as km of roads

rehabilitated/maintained, and water points rehabilitated/maintained.

22

Annex 1: Results Framework and Monitoring .

Togo Community Development and Safety Nets Project .

.

Project Development Objective Indicators

Indicator Name Description (indicator definition etc.)

Direct project beneficiaries Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children

who benefit from an immunization program; families that have a new piped water connection).

Please note that this indicator requires supplemental information.

Supplemental Value: Female beneficiaries (percentage).

Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct

project beneficiaries are female. This indicator is calculated as a percentage.

Female beneficiaries Based on the assessment and definition of direct project beneficiaries, specify what percentage of the

beneficiaries are female.

Students enrolled in rehabilitated/constructed schools No description provided.

Beneficiaries with access to an improved water source No description provided.

Beneficiaries receiving assistance for income generating activities No description provided.

Beneficiaries receiving cash transfers No description provided.

Beneficiaries from LIPW No description provided.

Community subprojects operating one year after completion No description provided.

Households receiving cash transfers on schedule No description provided. .

Intermediate Results Indicators

Indicator Name Description (indicator definition etc.)

Person days of work provided through this project No description provided.

Female participation No description provided.

Young people (aged less than 35) employed No description provided.

Repartition of regional funding for sub-projects and social safety nets based on

poverty targeting criteria for this project

No description provided.

Registered households who are receiving the cash transfers No description provided.

Public works schemes completed with satisfactory technical quality No description provided.

Public works costs allocated to wages (minimum) No description provided.

23

Communal infrastructures rehabilitated through the public works No description provided.

Basic socio economic infrastructure rehabilitated/maintained No description provided.

Classrooms built or rehabilitated No description provided.

Health facilities constructed/renovated and/or equiped No description provided.

Improved community water points constructed or rehabilitated No description provided.

Basic socio economic infrastructure assessed as having satisfactory technical

quality

No description provided.

Income generating activities subprojects No description provided.

Beneficiaries complying with the requirements to participate in soft conditions No description provided.

Maximum percentage of project funds used for project management No description provided.

24

Annex 2: Detailed Project Description

Togo Community Development and Safety Nets Project

1. The proposed Project Development Objective is to provide poor communities with

greater access to basic socio-economic infrastructures and social safety nets. In order to achieve

its objective the project will have three components, which are described below.

Component 1 - Community Subprojects (US$7 million)

2. This component will facilitate access of the rural population to improved health,

education, water and sanitation and other socioeconomic infrastructures as well as IGAs. It will

adopt a CDD approach, whereby beneficiaries themselves are in the driver seat to select, plan

and implement subprojects. In particular, the AGAIB will make sub-grants available to

Community Development Committees (Comités Villageois de Développement or CVD) to

finance approximately 170 basic infrastructure subprojects of a maximum cost of US$60,000

each (average of US$35,000 per sub-grant) and approximately 150 IGAs with a maximum cost

of up to US$5,000 each. Beneficiaries will contribute with an additional 5 percent (in cash or

kind). To help communities during the whole subproject cycle, if needed, the AGAIB will be

able to recruit intermediaries (primarily NGOs, but also individuals), selected on a competitive

basis, and pay them 10 percent of the subproject cost. However, given the relatively light

workload of AGAIB technical experts under the project, it is expected that reliance on

intermediaries will not be systematic.

3. Targeting approach. Thanks to the availability of new and more detailed poverty data, it

will be possible to improve the targeting approach adopted under the first phase of the CDP by

making it more precise. Also, given the huge amount of requests already received by the

AGAIB, it is crucial that the proposed project adopts a targeting mechanism that is perceived as

fair and limits the scope for interference. Beneficiary communities will be selected through

geographic targeting done at two levels:

(a) Regional allocation of funds: resources to finance subprojects will be distributed to

the five regions of Togo according to criteria based on population size and poverty

levels. A new household survey (2011) and a new census (2010) have informed a new

poverty profile for the country, which includes estimates of the relative contribution

of each region to national poverty.

(b) Identification of poorest communities inside regions: the new data available will also

make it possible to develop a national poverty map with reliable estimates down to

the canton level.6 Based on the poverty map, therefore, some priority areas of

interventions will be indentified, corresponding to the poorest cantons inside each

region. Only communities in those cantons will be eligible to submit a proposal and

obtain financing.

4. Subproject cycle - Infrastructures. Community subprojects will be implemented by poor

rural communities with the support of the AGAIB. The first step will be to help communities

6 The poverty map should be available by March 2012 and will be annexed to the PIM.

25

strengthen their CVD, ensuring that women are included in it and that it is reasonably

representative of the community. The CVD will:

be supported throughout the subproject cycle by the AGAIB and, if necessary, by the

NGO or other intermediary recruited by the AGAIB;

identify community needs and priorities through a participatory approach involving the

whole community;

prepare and submit to the AGAIB a request for financing subprojects;

open a bank account;

select a construction firm, supplier or service provider using community-based

procurement procedures;

sign a subproject grant agreement with the respective AGAIB and a contract with a

construction firm, supplier or service provider;

mobilize the required community participation, in cash or kind, equivalent to 5 percent of

subproject financing to be provided by the AGAIB;

supervise the implementation of works and disburse payments in tranches (40 percent, 50

percent and 10 percent), according to physical progress of works;

sign off at subproject completion and sign a handover agreement with both the AGAIB

and the contractor; and

prepare and implement an operation and maintenance plan of the subproject.

5. Subproject cycle – IGAs. While communities will be targeted in the same way as for

infrastructure subprojects, the subproject cycle for IGAs will be slightly different because the

end beneficiary will not be the whole community but a group within the community:

the CVD will submit the proposal on behalf of the beneficiary group to the AGAIB (this

will encourage transparency and encourage responsible behavior);

the technical and economic feasibility of the project will be analyzed by the IGA expert

of the AGAIB to verify eligibility and economic sustainability;

if needed, the AGAIB will help the beneficiary group to identify a suitable intermediary

(or two, depending on the competencies required and whether the intermediary is an

individual or an organization) and retain its services to improve the project proposal,

optimize profitability, provide technical support and trouble shooting for up to 18

months;

the beneficiary group will open a bank account;

26

the beneficiary group will mobilize its contribution (5 percent of the project amount) to

be deposited in the bank account and agree with the CVD on a symbolic gesture to thank

the community for its support (e.g., a small donation or a celebration);

AGAIB will transfer funds to the group according to the financial plan of the activity to

be implemented and upon fulfillment of the conditions listed above.

6. The PIM details the whole subproject cycle and includes information on the types of

eligible subprojects and on the activities and expenditures that cannot be financed, as well as

forms and contractual documents to be used by the AGAIB and the CVDs.

7. Detailed project cost. The detailed project costs of the community subprojects sub

component are reported in the following table :

Component 2 – Social Safety Nets (US$4.2 million)

8. This component will contribute to establish the essential building blocks for a national

social safety nets system by financing two types of safety net.

9. Labor Intensive Public Works (US$2.2 million). This subcomponent will provide

temporary employment opportunities (in general limited to 40 days) to 10,000 poor individuals

living in rural areas by implementing activities requiring high percentages of unskilled labor,

such as restoration of degraded lands, water and soil conservation, and feeder road maintenance.

Many of these activities, therefore, will also contribute to increase resilience to the negative

consequences of extreme climate phenomena. To be eligible under this component, activities

should require at least 60 percent of labor force. Youth living in rural areas will be the main

target group.

10. Implementation arrangements. The subcomponent will be implemented by the AGAIB7

with the support of local intermediaries (NGOs or consultants) who will (a) support communities

in identifying suitable subprojects through a participatory approach; (b) help them in preparing

and submitting proposals; (c) assist communities in organizing the work (e.g., selecting workers,

7During the first phase of the CDP, LIPW that were community-based (40 percent of total) were implemented with

AGAIB support while the LIPW based on reforestation activities (60 percent of total) were implemented by the

Office for Development and Exploitation of Forests (Office de Développement et d'Exploitation des Forêts - ODEF).

Given the limited budget for the LIPW under the Community Development and Safety Nets Project and the need to

reduce administrative costs, it was agreed with the Government to maintain only the activities implemented by the

AGAIB.

Community Subprojects - Detailed Project costs

US$ (000) Percentage

Community Infrastructures 5,400 77%

Income Generating Activities 900 13%

Intermediaries Remuneration 700 10.0%

Total 7,000 100%

27

procuring tools, establishing work teams); and (d) supervise workers and control work quality.

The regional platforms for disaster risk reduction will be involved in the identification process

and will work with the AGAIB and the intermediaries to help communities identify and prepare

proposals linked to environmental protection and aimed at increasing their resilience to weather-

related shocks. Each AGAIB will be responsible, in its respective region, for: selecting and

contracting the intermediaries, procuring all needed equipments and materials, supporting and

supervising intermediaries‟ work, validating the list of beneficiaries and transmitting it to the

Technical Secretariat.

11. Targeting approach. The targeting approach described for Component 1 will be used to

identify villages eligible for the LIPW. The targeting of individual beneficiaries will be based on

self-selection, as salaries have been set at the lowest legal level (in some regions this is below the

going rural market rates, in others it is about the same). Since all eligible villages will have a

high poverty headcount, final selection will be done by lottery so as to avoid tensions that may

arise when the supply of labor is higher than demand. A minimum quota for women will be

enforced (40 percent) and handicapped individuals able to work will be automatically accepted.

12. Organization of work. Workers will generally be organized in teams of 40 supervised by

a team leader. Subprojects requiring less than 40 workers will not be selected or will be grouped

to avoid dispersing resources in works with limited impact and relatively high logistical and

supervision costs. Each worker will be hired for 40 days at a wage of about US$3 per day,

therefore earning about US$120, which is almost 30 percent of annual per capita consumption in

rural areas (QUIBB 2006). Limiting at 40 the number of days represents a good compromise

between distributing resources widely and giving beneficiaries enough money to make a real

difference. However, due to logistical constraints or acute shortage of labor force or other

exceptional circumstances, the number of work days per beneficiary could be augmented.

13. Mode of Payment. The mode of payment adopted under the ongoing CDP, which requires

beneficiaries to open accounts with the Post Office, has revealed a number of weaknesses, e.g.,

the Post Offices are often far from villages and payments are made with long delays. The

Technical Secretariat, assisted by an international consultant, has therefore decided to adopt a

more competitive approach, made possible by the evolution of the banking system, and in

particular by the commitment of commercial banks to partner with microfinance institutions so

as to extend their outreach outside the main urban centers.8 Payments to beneficiaries of the

LIPW --and CT-- will be managed by the Technical Secretariat but outsourced to one or more

financial institutions specialized in this type of services, that is, demonstrating a widespread and

well managed network in rural areas capable of making frequent direct payments to individuals

with low levels of education --besides having the necessary financial, operational and

technological capacity. These financial institutions will be recruited in full conformity with the

relevant selection procedures of the World Bank. In addition, in the direct interest of the

beneficiaries, the payment process will be tied to strict timelines that will be imposed to all the

parties involved. The payment procedures will be detailed in the PIM. It should be noted that,

since technological advances in this sector can be fast and dramatic, contracts with financial

8 Payment methods relying on cell phones were also considered, but the coverage and quality of services of the two

companies present in the country did not seem sufficient.

28

institutions will be initially just for one year, so as to be able to take advantage of new market

opportunities. Of course, the PIM will be amended as needed.

14. Project cost. The detailed project costs of the LIPW sub component are reported in the

following table :

Labor Intensive Public Works - Detailed Project Costs


Wages paid to beneficiaries 1,320 60%

Intermediaries (NGOs) 220 10%

Equipments 550 25%

Materials and equipments for subprojects 506 23%

Safety kits and protection measures 37.5 2%

ID cards 6.5 0.3%

Payment agency* 55 2.5%

Various expenditures 55 2.5%

Total 2,200 100%

*Estimate- Exact figure will be confirmed when the selection of the payment agency will be done. The amount

will not exceed 5 percent of total transactions.

15. Cash Transfers (US$2 million). This subcomponent will help Togo in piloting a new

safety net mechanism that has proven successful in other African countries (e.g., Kenya, Senegal

and Malawi). The design of the pilot CT builds on the findings of analytical work carried out by

the World Bank and UNICEF, which identifies cash transfers as a promising instrument to

support the most vulnerable groups, as well as on lessons from experience world-wide. The

analytical work also recommends that (a) the targeting method be simple and based on

observable and objective characteristics, and (b) the CT be integrated into ongoing national

interventions promoting child wellbeing that have a strong Government implication and

ownership.

16. The CT will complement the Nutritional Care Project, financed by UNICEF with EU

funds and implemented by the Ministry of Health, which provides nutritional recuperation to

severely malnourished children in 565 villages in the Kara and Savanes regions, as well as

growth monitoring and training sessions on topics such as nutrition and hygiene. The CT pilot

will provide monthly cash transfers of 5000 CFAF to the mothers/caretakers of children aged 6-

24 months (i.e., children at the highest risk of malnutrition) as well as of children already

severely malnourished. Cash transfers will be provided for a minimum of 12 months and a

maximum of 18 months. There will be no formal conditions to continue benefitting from cash

transfers, as the extreme poverty context and experience with conditionalities elsewhere

29

recommend against them. However, mothers/caregivers will be strongly encouraged to engage

in a number of behaviors that should produce long-term benefits for their children. Soft

conditionalities will include: having a birth certificate for the child, attending training and growth

monitoring sessions, schooling older siblings, and keeping children and foster relatives with the

household (this last measure was requested by the Ministry in charge of social action and is

meant to discourage child trafficking). While there will be no sanctions for those who fail to

comply with the soft conditionalities, there will be positive incentives to comply in the form of

extra cash for strong compliers.

17. Targeting approach. The two northern regions of Kara and Savanes have been selected

for the pilot project because they have the highest poverty rate in the country --75 percent for

Kara and above 90 percent for Savanes-- and are the most exposed to food insecurity and

malnutrition. In each region, the districts with the worst malnutrition and child health indicators

will be targeted: Keran, Dankpen et Doufelgou in the Kara region, and Oti et Kpenjal in the

Savanes region. Since resources available are not enough to cover all villages reached by the

Nutritional Care Project in these five districts, the poverty map will guide the targeting of

individual villages, as well as the economies of scale made possible by clustering targeted

villages. Beneficiaries of the cash transfer program will be all children aged 6 to 24 months (the

age with the highest risk of malnutrition) living in the selected villages, as well as children

suffering from severe malnutrition no matter the age (they are generally less than five). This

targeting approach is appropriate for the local context, characterized by low inequality and a very

high poverty rate; it has been discussed with community members who considered it fair and

therefore it will not hamper social cohesion. Identification of project beneficiaries will take place

at the village level with the help a child protection agent and the child protection commission

(see below), as well as at the nutrition centers receiving UNICEF support.

18. Implementation arrangements. Implementation will rely primarily on regional actors,

with entities at the central level carrying out fiduciary and oversight responsibilities. The

detailed implementation procedures will be described in the PIM.

At central level, the Technical Secretariat of the Community Development and Safety

Nets Project will be responsible for overall monitoring and evaluation, internal auditing,

and procurement of equipments for the actors involved in project implementation. It will

also be responsible for contracting the financial institutions that will make payments to

the beneficiaries, and the contracting of the financial institution will be a condition for

disbursement under this category.

At regional level, AGAIB Kara and AGAIB Savanes will be responsible for supervision

in their respective regions. In particular, they will be in charge of: (a) validating the list of

beneficiaries prepared by the representative of the Ministry in charge of social action and

transmit it to the Technical Secretariat, (b) organizing supervision field visits in

beneficiary villages, (c) providing support and capacity building to the Ministry in charge

of social action and community actors involved in project implementation.

30

The regional representation of the Ministry of social action in Kara and Savanes will be

responsible for finalizing beneficiary registration, monitoring compliance with the soft

conditionalities, providing complementary household support, and supervising activities

in collaboration with AGAIB staff.

At the community level, the project will mirror the institutional set-up of the UNICEF-

financed project, which delegates a large portion of implementation to communities

themselves. A Child Protection Commission already exists in many villages, and a Child

Protection Agent (CPA) will be selected from its members. S/he will be trained by the

Ministry in charge of social action to assist in identifying and registering beneficiaries,

contribute to training sessions (e.g., on children‟s rights) and encourage compliance with

conditionalities; training of the CPAs will also be a condition for disbursement under this

category. S/he will collaborate closely with the facilitator for health and nutrition issues

supported by UNICEF, also drawn from the community.

Project costs. The project costs of the cash transfer sub component are reported in the following

table:

Cash Transfer - Detailed Project costs


Direct transfers to households 1,653 82.7%

Equipments (motorcycles and computers) 63.2 3%

Regional supervision (including fuel and

insurance for motorcycles, furniture and other

expenditures)

78.3 4%

Community level supervision (remuneration of CPA) 108 5.4%

Payment agency* 49.6 2.5%

Unallocated 47.9 2.4%

Total 2,000 100%

*Estimate. Exact figure will be confirmed when the selection of the payment agency will be done. The amount will not

exceed 5 percent of total transactions.

Component 3 – Management and Operating Costs (US$2.8 million)

19. This component will finance the salaries and operating costs of the five AGAIB and of

the Technical Secretariat as well as all monitoring and evaluation activities, information and

communication campaigns, and the financial and technical audits. In particular, the component

will finance:

(a) staffing costs (both professional and support staff) of the Technical Secretariat and the

AGAIB (part of the costs of the AGAIB will be covered by the Disaster and Land

Management Project, also supported by the World Bank);

31

(b) operating expenses of the Technical Secretariat and the AGAIB, including rental of office

space and security services; utilities and supplies; bank charges; communication; vehicle

operation, maintenance and insurance; building and equipment maintenance; and in-

country travel and supervision;

(c) financial, procurement, management and technical audits.

32

Annex 3: Implementation Arrangements

Togo Community Development and Safety Nets Project

Project Institutional and Implementation Arrangements

1. The project will rely on the decentralized institutional framework adopted under the CDP,

which is now well tested and proved to be efficient. In concrete terms, this means that most of

the day-to-day expenditure decisions (e.g., selection of beneficiaries, selection of subprojects)

will be taken at the regional level and most of the budget will be disbursed by the regional

implementation agencies (see below), with a central entity providing checks and balances.

Project administration mechanisms

2. The main institutional actors and their role in project implementation are described

below.

The Ministry of Community Development, Handicraft, Youth and Youth

Employment will be responsible for the overall project. In particular, it will continue to

have global oversight and head the Steering Committee for the project, which includes

representatives from nine ministries, three donors and four civil society organizations.

A Technical Secretariat, under the Ministry in charge of community development will

have fiduciary responsibilities at the central level and be responsible for overall planning,

internal auditing, and monitoring and evaluation. In particular, it will manage the

designated accounts and prepare withdrawal applications. The payment mechanism for

the beneficiaries of LIPW and CT will also be managed by the Technical Secretariat but

outsourced to one or more financial institutions specialized in this type of services. These

financial institutions will be recruited in full conformity with the selection procedures of

the World Bank.

At the regional level, the project will be implemented by five regional agencies called

AGAIB (Agences d’Appui aux Initiatives de Base). AGAIB are private non-profit

entities, whose boards of directors comprise representatives of NGOs, Government and

civil society. The Government will sign a subsidiary agreement with each AGAIB as an

implementation agent (which will include their administrative costs), and the Technical

Secretariat will transfer funds to their accounts. Concerning Component 1, the five

AGAIB will be responsible, each in its respective region, for carrying out project

activities using a CDD approach whereby beneficiaries identify, plan and implement their

own subprojects. In practice, they will (a) assist communities and IGA beneficiaries in

determining their needs, preparing proposals and implementing subprojects or contract

intermediaries (mostly local NGOs) to do it; (b) assist community-based organizations

and, if needed, intermediaries, to develop technical and managerial skills in relation to

their subprojects; (c) guarantee the technical soundness and viability of proposed

subprojects; (d) work closely with Government officials to ensure subproject

33

sustainability and consistency with sector policies and plans; (e) transfer funds to

beneficiaries and (f) retain fiduciary responsibilities at the regional level. For sub-

component 2.1. (Labor Intensive Public Works), the five AGAIB will be responsible,

each in its respective region, for: (a) assisting communities in identifying, planning and

implementing subprojects or selecting and contracting intermediaries; (b) supporting and

supervising intermediaries‟ work; (c) receiving the list of beneficiaries and transmitting it

to the Technical Secretariat; and (d) procuring all equipment and materials needed for the

LIPW subprojects. For sub-component 2.2 (Cash Transfers) AGAIB Kara and AGAIB

Savanes will be responsible, each in its respective region, for: (a) organizing supervision

field visits in beneficiary villages; and (b) providing support to the community actors

involved in project implementation.

The Ministry of Social Action and National Solidarity will be closely involved in the

implementation of the CT subcomponent, particularly through its regional representations

in Kara and Savanes regions. Responsibilities will include finalizing beneficiary

registration, checking on compliance with the soft conditionalities, providing

complementary household support, and monitoring activities in collaboration with

AGAIB staff.

Other relevant sectoral ministries (e.g. education, health, transport, and water and

sanitation) will be involved in the project mainly at the regional level, as they will have to

ensure that subprojects are consistent with sectoral policies, regulations and plans.

Hence, they will have a role to play when deciding on the funding of proposals in their

sectors as well as in supervising (in collaboration with AGAIB staff) their

implementation.

UNICEF will be a partner for the cash transfers sub-component through the PCN project.

It will support training of community health agents on nutrition and health related matters

and pay them, provide the equipment needed for growth and nutrition monitoring,

facilitate the process of obtaining birth certificates, and support the regular assessment of

progress related to nutritional outcomes. A memorandum of understanding will clarify

roles and responsibilities of UNICEF and the Technical Secretariat.

3. Communities will of course play a central role, primarily through their Village

Development Committees (Comités Villageois de Développement – CVDs). CVDs will be the

main conduit for the implementation of community infrastructure, as they will prepare and

submit to the AGAIB subproject proposals, sign a subproject grant agreement with AGAIB, open

and operate a bank account to receive subproject funding, hire and supervise contractors, and

overall see to the correct use of the funding made available. They will also play a role in

proposing subprojects for the LIPW subcomponent, and in selecting beneficiaries in accordance

with stated guidelines.

34

Financial Management, Disbursements and Procurement

Accounting

4. The ongoing CDD project has acquired both at central and regional levels, a functional

multi-project accounting software with a module for data consolidation at central level. This

software will be customized to fit the new project needs and the existing well experienced FM

staff„s contracts will be extended accordingly.

Funds Flow and Disbursement Arrangements

5. Designated Account. One Designated Account will be opened at a commercial bank

acceptable to IDA and managed by the Technical Secretariat. The account will be set up to fund

eligible expenditures. Five regional advance accounts (AGAIB advance accounts) will be opened

to finance sub-projects and AGAIB expenditures. Disbursements from these sub-accounts will

comply with specific procedures included in the PIM.

6. The table below sets out the expenditure categories to be financed out of the grant

proceeds and taking into account Togo‟s country financing parameters.

Disbursement Table

Category

Amount of the

Grant Allocated

(expressed in

US$)

Amount of the

Grant Allocated

(expressed in SDR)

Percentage of

Expenditures to be

Financed (inclusive of

Taxes)

(1) Goods, works, consultant services,

training and operating expenses under

Component 1, 2.1 2.2(b) and C.

12,347,000 8,100,000 100%

(2) cash transfers under component 2.2(a)

(a) first cash transfer installment

(b) subsequent cash transfer installments

270,000

1,383,000

200,000

900,000

100% % of amounts

paid by the

Recipient under the

Cash Transfer

Total Amount 14,000,000 9,200,000 100%

7. Disbursement methods and processes. The ceiling of the designated account will be

based on the forecast for two quarters disbursement as stated in the quarterly Interim Financial

Report (IFR). Detailed supporting documentation for IFRs will be retained by the Technical

Secretariat, which has the primary responsibility for maintaining all documentation. Reasonable

flexible monthly payments will be released from the designated account to each AGAIB‟s bank

account opened in commercial banks acceptable to IDA based on approved annual activity plans,

subproject grant agreements and the level of justification of previous advances. Previous

advances will be documented with evidence of the funds being used by the intended beneficiary

groups (infrastructure subprojects and income generating subjects) as per criteria set out in the

PIM.

8. Given the FM capacity built from the CDP, the new project will use a quarterly report-

based disbursement mechanism. Not later than 45 days following the end the quarter, the

35

Technical Secretariat will elaborate and transmit to the World Bank an IFR that will serve as

basis for disbursement. IFRs will be supplemented by (i) Bank reconciliation statements of the

designated account; (ii) cash-flow forecast for the following semester; (iii) the list of payments

against contracts that are subject to Bank prior review, and (iv) a list of payments against

contracts that are not subject to prior review.

9. The designated account will be replenished through IFRs on a quarterly basis after an

initial advance equivalent to the cash forecast for two quarters is made. In addition to advances

to the designated account, other disbursement methods will be available for use under the

project, such as direct, reimbursement, and special commitment methods. Further instructions on

the withdrawal of proceeds will be outlined in the disbursement letter and details on the

operation of the designated account will be provided in financial and accounting portion of the

PIM.

Flow of Funds Diagram

DP Direct Payment

WA Withdrawal Application

Designated Account

managed by the Technical

Secretariat

(Funds) DP IDA Account (Washington) at

the World Bank

AGAIBs

Dedicated advances

Accounts

1 2 3 4 5

Sub-grants,

Payments to suppliers and

AGAIBs operating costs

Suppliers / Consultants

/Beneficiaries Accounts

IFR / WA / DP

Funds

Reports, Goods etc

36

Reporting and Auditing arrangements

10. The Technical Secretariat (TS) will be responsible for coordinating the consolidated IFRs

required and submit copies to the Bank within 45 days following the end of the quarter. The

AGAIB will report to the Technical Secretariat on a monthly basis within 15 days following the

end of the month. In addition, the TS will prepare project progress reports every six months and

submit copies to the Bank no later than one month after the end of the period covered by the

report.

11. The TS will produce Annual Financial Statements for the Project that will comply with

SYSCOHADA accounting standards (SYSCOHADA is the assigned accounting system in West

African Francophone countries). Project accounts will be maintained on a cash basis, supported

with appropriate records and procedures to track commitments and to safeguard assets. The

ROSC Accounting and Auditing identified some differences with the International Accounting

Standards but they are not expected to impact the project. Accounting and control procedures are

documented in the financial and accounting portion of the PIM.

Audit arrangements

12. Internal audit and internal controls. Project FM risk rating is moderate, given that the

TS has demonstrated satisfactory capacity to manage a similar intervention (the CDP). The

internal control will be organized through the financial and accounting portion of the PIM with

appropriate segregation of duties and responsibilities. Internal audit functions will be assumed by

the internal auditor recruited for the CDP, whose contract will be extended to cover the new

project period. The internal auditor will continue to operate with a risk-based approach giving

special attention to decentralized activities and cash transfers. Besides the controls carried out by

the Finance Specialist (at the central level) and the internal auditor, the project aims at increasing

transparency and accountability, especially where it relates to communities. Mechanisms to

increase social accountability, including a complaint mechanism, will be developed during the

project implementation based on lessons learnt.

13. External audit. An external independent and qualified auditor will carry out the audit of

project accounts. By expressing an opinion on the Annual Financial Statements and in

compliance with the International Standards on Auditing, the auditor will be required to prepare

a Management Letter giving observations and comments, and providing recommendations for

improvements in accounting records, systems, and controls. In particular, the auditor will provide

an opinion on (a) the consolidated project accounts; (b) transactions on the designated account;

and (c) cash transfer operations. Each year, the financial auditor will especially review a

reasonable sample of sub-grants and disbursements under the safety net subcomponents to ensure

that activities were completed pursuant to the agreed procedures and these funds were used for

the purposes intended. The audit report will be submitted to IDA within six months of the end of

the project fiscal year.

14. In addition, technical audits will be carried out that will comment on project

performance, that is, project progress, quality and timeliness in relation to milestones and

objectives stated in the Project Document, as well as the economy and efficiency with which the

project is being implemented, including the use of funds made available for cash transfers.

37

Procurement

15. Capacity Assessment, Risk and Mitigation Measures. As the institutional

arrangements for project implementation are the same as the current Community Development

Project, a new procurement capacity assessment is not necessary. Indeed, after three years of

implementation of a Bank project, the Technical Secretariat (TS) and each AGAIB have gained

considerable experience in procurement implementation. Implementation arrangements and

recommendations, therefore, will be based on the findings of the Post Procurement Review

conducted in May 2011 as well as on the new national procurement framework effective since

January 2011.

16. The main findings of the Post Procurement Review are that (a) there are very few

procurement activities at TS level and therefore a full-time procurement specialist is not

necessary, and (b) procurement must be carried out in accordance with the new national

procurement framework. The measures agreed upon are therefore to: (a) select a procurement

specialist to assist the TS in the first eighteen months of project implementation; (b) nominate

the project Procurement Officer within the relevant Ministry‟s Public Procurement Committee

(Commission de passation de marchés publics); (c) hold the regional AGAIBs accountable for

procurement at the community level; and (d) update the procurement manual regarding the

current national procurement frame work.

17. Procurement activities that concern the TS or more than one implementation agency will

be carried out by the Procurement Officer in the Public Procurement Committee. The TS will (a)

supervise and coordinate project procurement activities of the regional project implementation

agencies (AGAIBs), and (b) through its Procurement Officer, be responsible for compliance with

procedures. The AGAIBs will carry out procurement for contracts with an estimated cost of less

than US$100,000 equivalent, with assistance from the Procurement Officer of the TS a if needed.

Grassroots communities will implement sub-projects according to simplified procedures

accepted by IDA (procurement with community participation). The communities‟ management

units that will be responsible for sub-project implementation will be assisted by AGAIB staff, or

by NGOs or individual consultants supervised by the AGAIBs. Communities will receive

systematically the required basic training on the Simplified Guidelines for Procurement and

Disbursement for Community-Based Investments before receiving the first installment of the

grant from the AGAIB.

18. Taking into consideration the experience gained through the CDP, the overall project

procurement risk has been rated as moderate.

19. Guidelines. Procurement for the proposed project will be carried out in accordance with;

(a) the Bank “Guidelines: Procurement under IBRD Loans and IDA Credits” dated January 2011;

(b) the Bank “Guidelines: Selection and Employment of Consultants by World Bank Borrowers”

dated January 2011; (c) The Bank “Guidelines on Preventing and Combating Fraud and

Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15,

2006 and revised in January 2011 (“Anti-Corruption Guidelines”) and (d) the provisions of the

Grant Agreement. The AGAIBs will use simplified procurement procedures specified in their

Project Implementation Manual as revised from time to time in a manner deemed acceptable to

the Bank.

38

20. Procurement Documents. Procurement will be carried out using the Bank‟s Standard

Bidding Documents or Standard Request for Proposal (RFP) for all International Competition

Bidding (ICB) for goods and for the selection of consultants, respectively. For National

Competitive Bidding (NCB), the Borrower should submit a sample form of bidding documents

to the Bank for prior review and will continue to use this type of document throughout the

project once this has been agreed upon. The Sample Form of Evaluation Reports published by

the Bank will be used. Community procurement will be carried out using the current documents

included in the CDP Implementation Manual.

21. Frequency of Procurement Reviews and Supervision. The Bank‟s prior and post

reviews will be carried out on the basis of thresholds indicated in the table below. The Bank will

conduct bi-annual supervision missions and annual Post Procurement Reviews (PPR); the ratio

of post reviews will be at least one out of five contracts. The Bank could also conduct an

Independent Procurement Review (IPR) at any time until two years after the closing date of the

project. Independently from Bank reviews, individual consultants could be hired by the project

for procurement post reviews at the community level.

Table 1: Procurement and Selection Review Thresholds

Procurement/selection

methods

Prior review

threshold

(US$)

Comments

1. Works and Goods

ICB

Works

Goods

≥ 5,000,000

≥ 500,000

Method can be applied for any amount, but is

mandatory for contracts above the prior review

thresholds

LCB ≥ 300,000 Review of all contracts

NCB N/A Review of the first two contracts independently of

amount. Method applicable for contracts less than

US$5,000,000 for works and less than US$500,000 for

goods

Shopping N/A Review of the first two contracts independently of


US$50,000 for works and goods

Communities Participation N/A

Direct Contracting All amounts Review of all contracts

2. Consulting Services

QCBS ≥ 200,000 Review of the first two contracts independently of

amount

LCS ≥ 200,000 Review of the first two contracts independently of

amount

Selection under a Fixed

Budget (FBS) ≥ 200,000

Review of the first two contracts independently of

amount

CQS (for contracts

≤$US100,000) ≥ 50,000

Review of the first two contracts independently of


US$100,000

Individual Consultants (IC) ≥ 100,000

Review of the first two contracts and other contracts

chosen on a case-by-case basis, independently of

amount.

39

Procurement/selection

methods

Prior review

threshold

(US$)

Comments

Single Source Selection (SSS) All amounts Review of all contracts.

3. Training and Workshops

Training and workshops ≥ 10,000

On basis of detailed and approved annual plan (with

indication of venue, number of participants, duration,

detailed budget, etc.)

22. All training, terms of reference of contracts estimated to more than US$10,000, and all

amendments of contracts raising the initial contract value by more than 15 percent of the original

amount or above the prior review thresholds will be subject to IDA prior review. All contracts

not submitted to the prior review will be submitted to IDA post review in accordance with the

provisions of paragraph 4 of Annex 1 of the Bank‟s Consultant Selection Guidelines and Bank‟s

procurement Guidelines.

23. Procurement Plan. All procurement activities will be carried out in accordance with

approved original or updated procurement plans. The Procurement Plans will be updated at least

annually or as required to reflect the actual project implementation needs and capacity

improvements. All procurement plans should be published at the national level and in the Bank

website according to the Guidelines. The Government and the Bank have agreed that the Project

will prepare a procurement plan covering the first eighteen (18) months of the Project. Tables (a)

and (b) below represent the summary of this procurement plan.

24. (a) Summary of works and goods contract packages for the first 18 months of

implementation

1 2 3 4 5 6 7 8 9 10

Ref

. N

o.

DE

SC

RP

TIO

N

Est

imat

ed A

mo

un

t

(U

S$

000

)

Pro

cure

men

t M

etho

d

Pre

qu

alif

icat

ion

(y

es/n

o)

Do

mes

tic

pre

fere

nce

(y

/n)

Pri

or

Rev

iew

(y/n

)

Est

imat

ed B

ids

op

enin

g D

ate

Ex

pec

ted

Co

ntr

act

Sig

nat

ure

Dat

e

Co

mm

ents

1 Motorcycles 60 NCB No No Yes April 2012 June 2012

40

(b) Summary of Consultant’s contract packages for the first 18 month of implementation

1 2 3 4 5 6 7 8

Ref

No

DE

SC

RIP

TIO

N

Estimated

Amount (US$

000)

Selection

Method

Pri

or

Rev

iew

(Y/N

)

Est

imat

ed

Bid

Op

enin

g D

ate

Est

imat

ed

con

trac

t si

gn

ing

dat

e

Co

mm

ents

1 External

audit 55,5 QCBS Yes September 2012 December 2012 …..

25. Procurement Filing. Procurement documents must be maintained in the project files and

archived in a safe place for at least two years after the closing date of the project. The Public

Procurement Committee of the relevant Ministry of the project, through the Procurement

Officers, will be responsible for the filing of procurement documents.

Environmental and Social (including safeguards)

26. The environmental category of the Project is B and OP/BP 4.01 (Environmental

Assessment) and OP/BP 4.12 (Involuntary Resettlement) are triggered. This Project is not

triggering safeguard policies regarding safety of dams (OP/BP 4.37) and international waterways

(OP/BP 7.50). For the community development component it is estimated that the majority of

the financing of subprojects will be for the construction and rehabilitation of physical

infrastructures and other tangible assets. Environmental issues important to the project are: (a)

awareness-raising of beneficiary communities on possible environmental impact of subproject

activities; (b) discussion of environmental issues during subproject design phase; and (c)

environmental impact study and agreement on appropriate mitigation measures. As the sub-

component on LIPW is expected to continue financing environmental protection activities, it will

strengthen the environmental situation of severely degraded areas of rural Togo, hence having a

positive impact of the environment. The sub-component on cash transfers is expected to have no

environmental impact.

27. Social impacts of the community subprojects are expected to be mainly positive, as the

implementation approach aims at building self-reliance and strengthening social capital in

addition to providing better access to a range of social services. Experience with subproject

implementation under the CDP suggests the risk of only very marginal negative impacts on local

populations. A project‟s Resettlement Policy Framework (RPF) was elaborated in 2008 and will

continue to be applied under the proposed project. The selected subprojects are located in

Government-owned open lands and did not require any acquisition of land, nor restricted access

to land and resources. The social risks of the safety nets component revolve primarily around

possible tensions regarding the selection of beneficiaries for LIPW and cash transfer. In order to

minimize possible tensions the project will set clear criteria and transparent procedures for

beneficiary selection and registration. For the CT pilot, in order to avoid envy and social

tensions, an objective criteria severe malnutrition) has been chosen (to identify beneficiaries. For

41

the LIPW the selection criteria are described in the PIM and are consistent with the project

principles of community-based decision making, transparency and voice, and social

accountability.

28. The CDP developed a comprehensive safeguards management system including an

Environmental and Social Management Framework (ESMF), Resettlement Policy Framework

(RPF), and a Note on Management of Pesticides. These management tools were prepared in

2008, approved by the Bank and disclosed in country and in the InfoShop on February 19, 2009.

The ESMF was then updated in 2010 to take into account the LIPW reforestation activities that

were added to the CDP project that year. These tools were widely disclosed to the public and

were the object of intense training of Government officials, the Technical Secretariat of the CDP,

the AGAIB, implementing partners and other stakeholders. Updated ESMF and RPF have been

prepared by the Government to reflect the project design of the Community Development and

Safety Nets Project and have been disclosed in Togo on December 8, 2011 and in the InfoShop

on December 9, 2011.

Monitoring & Evaluation

29. Monitoring and Evaluation was the weakest aspect of project management during the first

phase of the CDP but corrective actions have been taken. The Technical Secretariat recruited a

Monitoring and Evaluation Specialist who has been asked to develop a Monitoring and

Evaluation Manual. In addition, the Technical Secretariat will have to hire an independent expert

to conduct two technical audits and verify compliance with the conditions and operating

procedures of the cash transfer sub-component. The cost of data collection, monitoring and

evaluation will be covered by the administrative budget of the Technical Secretariat. The World

Bank, however, will finance via the Rapid Social Response Trust Fund a specialist to design a

proper Management Information System (MIS) for the safety nets component of the project.

42

Annex 4: Operational Risk Assessment Framework (ORAF)

Togo Community Development and Safety Net Project

Board

Project Stakeholder Risks

Stakeholder Risk Rating Low

Description:

Other donors raise objections to project design and

implementation.

The Government does not endorse the project, causing lack of

ownership from the onset.

Risk Management:

Key donors have already been consulted during bilateral meetings on this project. Project design has

been validated at meetings with key stakeholders during the pre-identification and the preparation mission.

Resp: Bank Stage: Preparation Due Date: 31-Jan-2012 Status: Completed

Risk Management:

This project enjoys strong Government commitment, and is in line with its key priorities (youth

employment and increasing access to basic socio-economic infrastructures). The Ministry of Community Development submitted a letter to the Bank in February 2011 requesting this

intervention.

Resp: Client Stage: Preparation Due Date: 01-Sep-2011 Status: Completed

Implementing Agency Risks (including fiduciary)

Capacity Rating Moderate

Description:

The Technical Secretariat and regional AGAIB have developed a

strong capacity for CDD projects during the three-year

implementation of a $32 million Community Development Project with the World Bank. Their performance was rated satisfactory

during the last evaluation.

They have also gained some experience in implementing cash-for-

work interventions, but their technical capacity needs to be

strengthened. The implementing agencies will require technical training on the new project component on cash transfers.

Procurement and Financial management capacity was rated satisfactory during the last evaluation.

Risk Management:

Project components have been designed and planned with the Government counterpart and implementing agencies in a very participatory manner, so as to identify early on misunderstandings

and possible implementation hurdles due to capacity gaps.

Resp: Bank Stage: Preparation Due Date: 30-Dec-2011 Status: Completed

Risk Management:

The project implementation manual will be updated as needed to reflect new components and other

changes made in the project design as a condition of effectiveness

Resp: Client Stage: Preparation Due Date: 15 –Jun-2012 Status: Not Yet Due

Risk Management:

Technical assistance and capacity building will be provided as needed to strengthen the capacity of

staff to manage the labor intensive public works and piloted cash transfers interventions.

43

Resp: Client Stage: Implementati

on Due Date: Status: Not Yet Due

Governance Rating Moderate

Description: An organizational assessment of the TS and the AGAIB conducted

in December 2010 concludes that roles and responsibilities of key

stakeholders in project implementation have to be clarified. Different documents (PIM, statutes of the AGAIB, and other

project documents) at times provide contradictory definitions of

what these roles should be, or provide definitions that are not in line with actual project execution.

Risk Management: The Project Implementation Manual will be revised to clarify the roles of the TS and the AGAIB


Risk Management:

The project implementation manual will be updated as a condition of effectiveness to include

mitigation measures that will reduce risks of fraud, error and corruption within the project.


Risk Management:

Proper trainings will be provided to staff on the updated internal control mechanisms and implementation manuals.



Risk Management:

Beneficiary communities will be selected on the basis of official poverty rates, using a methodology

that has given good results in the original project. Salaries in the labor intensive public works activities will be set slightly below market rate thus reducing incentives for better off households to

participate and resulting in self-targeting. For cash transfers, villages with the highest poverty and

malnutrition rate will be targeted. All children aged between 6 and 24 months living in those villages will be included in the program.



Risk Management:

Specific measures will be adopted to promote transparency in project management. These include: (i)

a thorough information campaign to promote transparency and accountability to local communities; (ii) the establishment of a cost-effective, efficient, and confidential grievance mechanisms.


on Due Date: 30 –Jul-2012 Status: Not Yet Due

Risk Management:

Bank rules, standards and guidelines for procurement and financial management will continue to apply ; and (iii) Continuing regular internal audit missions to be completed by internal auditor with a

greater focusing on activities at decentralized levels; (iv) a reasonable sample of sub-grants and

disbursements under social safety nets operations will be reviewed each year by the financial auditor to ensure that activities have been executed pursuant to the agreed procedures and that funds were

44

used for the purposes intended, (v) the completion of two technical audits on sub-projects financed

during the project life.



Project Risks

Design Rating Moderate

Description:

The addition of a pilot CCT as a new project sub-component

increases the technical complexity of the project

Risk Management:

As per the recommendations of a feasibility study, the CCT will be a small pilot intervention that will

build on an existing UNICEF project to reduce risks of errors in the technical design.

Resp: Bank Stage: Preparation Due Date: 30-Nov-2011 Status: Completed

Risk Management:

Additional studies will be commissioned as needed during project preparation to inform the design of

a targeting and payment system for cash transfer beneficiaries. The task tea commissioned a study of

payment options for CCT and LIPW beneficiaries which has been completed in December 2011.

Resp: Bank Stage: Preparation Due Date: 30-Dec-2011 Status: Completed

Risk Management:

The project implementation manual will be updated and staff from the implementing agency can be

trained on the specific technical requirements of the LIPW and CCT components

Resp: Client Stage: Preparation Due Date: 15-Jun-2012 Status: Not Yet Due

Description:

Delays in payments to beneficiaries

Risk Management:

Implementation will be supported through a Bank Executed RSR grant. A payment agency will be

recruited based on a competitive selection. The selection process is expected to be completed by July

2012.

Resp: Bank Stage: Implementati

on Due date:

31-Jul-2015

Status: Not Yet Due

Social and Environmental Rating Low

Description: Risk Management:

Overall the project is rated environmental category B to reflect the

limited negative impact that it may have on the environment

compared to the benefits that it will provide. The cash-for-work

activities and micro-projects can lead to restrictions in access to

areas being rehabilitated. In addition, they could cause noise,

create basic safety risks, and require handling and management of waste.

The Community Development and Safety Nets Project will continue the LIPW and the IGAs that

were addressed by the ESMF and the RPF of the CDP. The new cash transfers component is not

expected to have any impact on existing safeguards arrangements. Therefore the ESMF and RPF of

the CDP can be used for the Community Development and Safety Nets Project. Both documents have

been redisclosed.

Resp: Client Stage: Preparation Due Date: 09-Dec-2011 Status: Completed

Program and Donor Rating Low


45

The closing date of the first CDP is June 30, 2013. While the majority of activities will be completed by June 2012, two

components (cash for work and school feeding) will end in June

2013. Thus, there will be an overlap between the CDP and the Community Development and Safety Nets Project which may

generate confusion. However, the amount of work and supervision

required for the remaining activities under the CDP are limited.

The Government requested $30 million for the project. However,

as a result of a reduction in the IDA allocation to the country, only $14 million is available for the Project. Fundraising efforts are

underway to identify co-financing options from other donors

including the African Development Bank and the Islamic

Development Fund.

Project implementation arrangements will remain essentially the same, thus minimizing the risk of poor coordination between activities under the CDP and the Community Development and Safety

Nets Project. The timing for progress reports and audits will also be aligned. These arrangements will

be finalized during appraisal.

Resp: Client Stage: Preparation Due Date: Status: Completed

Risk management:

Project components and activities proposed can be easily scaled up and additional funding would

make the project design even more relevant.

Resp:

Bank Stage:

Preparation

Due date: Status:

Completed

Delivery Monitoring and Sustainability Rating High


The CDP project does not have an effective monitoring and evaluation (M&E) system in place.

The TS has recruited a M& E specialist and has commissioned a consultancy to develop a M&E system and strategy for the CDP.


on Due Date: 15-Jun-2012 Status: In Progress

Sustainability is undermined by reliance on UNICEF to implement

the project pilot

Risk Management:

Support to capacity building and trainings for the staff of the Ministry of Social

Affairs is funded through Bank-Executed RSR grant.

Overall Risk Following Review Implementation risk rating: Moderate

Comments: The CDP has demonstrated its capacity to effectively implement

community driven development projects. Appropriate mitigation measures have been built in for the new cash transfer component.

46

Annex 5: Implementation Support Plan

Togo Community Development and Safety Net Project

1. The strategy and approach for implementation support address the main risks of the

project and are geared to ensure the achievement of its development objective. As outlined in the

ORAF, project level risks are limited because of the well tested implementation arrangements.

This is particularly true for the community subprojects component, which benefitted from

previous experience with CDD approaches both within Togo (through the pilot project that

established the first two AGAIB in the late 90s) and elsewhere in Africa. The safety nets

component, on the other hand, faces higher risks because of the pilot nature of the CT program as

well as the risks associated with fraud, error and corruption for both cash transfers and LIPW

activities. For this reason the social safety nets component needs closer monitoring and

implementation support. The implementation support plan will rely on in-depth preparation

(especially for the safety nets component), decentralized supervision, appropriate fiduciary

oversight, increased partnership with other donors and the Government, and adequate Bank

technical assistance/technical support activities.

Preparation. The design of the safety nets component relies on the establishment of

efficient targeting, registration and payment mechanisms. Experience with LIPW

indicates that the payment system in particular needs to be revised to make it more

appropriate to the circumstances of the beneficiaries while minimizing fraud and error

risks. The Project Team (with the support of the Rapid Social Response Trust Fund) has

therefore commissioned a study to that end. The Rapid Social Response Trust Fund has

also made it possible to carry out a detailed preparation of the CT pilot, both in terms of

entertaining a sustained policy dialogue on social protection with the Government and in

terms of assisting in the preparation of implementation arrangements. In addition, setting

up an appropriate M&E and management information systems will be crucial, especially

since these aspects were somewhat neglected under the CDP. The Bank will make

available to the counterpart examples from similar projects elsewhere in Africa (including

software programs) and will help the Government elaborate and establish such

mechanisms.

Project supervision by client. The project relies on a highly decentralized institutional

framework. Client supervision of project implementation takes place at different levels:

(a) at the central level through a National Steering Committee (headed by the Ministry of

Community Development) and the Technical Secretariat of the project, which is in charge

of overall M&E activities and has appointed a staff for this purpose; (b) at the regional

level through the five regional implementing agencies (AGAIB), which have a general

oversight on project activities implemented by the communities with the support of

intermediaries (mostly NGOs) and supervise the work of intermediaries; (c) at local level

through NGOs and other intermediaries, which support the communities by providing

capacity building and technical assistance. Finally, community themselves will be helped

to set up mechanisms to strengthen social accountability and foster demand-driven

governance.

Grievance management system. As part of the project, an efficient and cost effective

47

grievance management system will be designed, established and maintained. The

objective is to achieve greater accountability in the CDD and safety nets systems, and to

provide a vehicle for addressing complaints and grievances that arise during the

implementation process. Communities (beneficiaries and non beneficiaries) will have

access to the system, which will also be important to manage fiduciary risks, enhance

social accountability, to detect inclusions and exclusion errors, and corruption, and to

intervene accordingly.

Frequency and scope of fiduciary oversight. Procurement and FM specialist will

provide ongoing support to the staff of the Technical Secretariat and the AGAIB to ensure

transparent and rigorous procurement processes and financial management.

FM Implementation Support. The project will be supervised with a risk-based

approach. Supervision will focus on the status of the financial management system, to

verify whether the system continues to operate well, and provide support where needed.

It will comprise, inter alia, the review of audit reports and IFRs, advice to task team on all

FM issues, and the review of annual audited financial statements and management letters.

Based on the current risk assessment which is Moderate there will be one on-site visit

supervision per year during the implementation and a review of transactions will be

performed on that occasion. Beside the yearly on-site mission, the FM staff will provide

advice on possible issues raised during the task team missions.

Role of partners. There is strong commitment and ownership of the Government on both

community development and social protection issues. The Government created an

informal committee on social protection with the objective of moving forward social

protection dialogue and developing a national social protection strategy, including a

safety nets strategy. It is expected that the informal Government committee will monitor

the progresses of the safety nets component of the Community Development and Safety

Nets Project which at this stage represents one of the most important social protection

mechanism in Togo. UNICEF will play a key role in the implementation of the cash

transfer program by contributing to beneficiary identification, and will be in charge of

supporting the Government in designing, implementing and supervising the training

activities on nutrition, health and hygiene that constitute the conditionality for receiving

the cash transfers.

Technical support. Extensive technical support will be provided by the Bank on a

continual basis and in particular during the early stages of implementation of the safety

nets component, as the Rapid Social Response Trust Fund supports several months worth

of consultancy. Specific attention will be given to the payment system and M&E.

Implementation Support Plan

2. The World Bank is well placed to provide implementation support based on its worldwide

experience with CDD operations and social safety nets, in particular CT and LIPW programs.

UNICEF will provide additional technical support in the complementary training to be provided

to beneficiary households given its comparative advantage on issues related to children‟s health,

nutrition, and hygiene.

48

Time Focus Skills Needed Resource

Estimate

Partner Role

First twelve

months

Set up of the safety

nets component in

particular the new

cash transfer

program. Focus will

be on the

implementation

design and

fiduciary aspects

related to the

payment system,

monitoring and

evaluation,

management

information system

and grievance

mechanisms

Community

subprojects are

implemented

Experience in

designing social

safety nets

Technical

knowledge on

targeting,

registration, and

payment

mechanisms, and

on M&E

Bank

TTL/operation

analysts and

consultants -

36SW

FM specialist – 3

SW

Procurement

specialist – 2 SW

Social safeguard –

.5 SW

Environmental

safeguards – 1

SW

UNICEF will

provide support in

the design and

implementation of

conditionality for

the CT (trainings

on health,

nutrition and

hygiene)

12-24

months

Community

subprojects and

safety nets are

implemented

Intensive support

to

implementation

Ensuring

satisfactory

progress towards

achieving project

goals and

objectives

…

Bank

TTL/operation

analysts and

consultants - 20

SW

FM specialist – 3

SW

Procurement

specialist – 2 SW

Social safeguard –

.5 SW

Environmental

safeguards – 1

SW

M&E specialist- 1

SW

UNICEF will

provide support in

the

implementation of

conditionality for

CT (trainings on

health, nutrition

and hygiene)

49

Communication

specialist- 1 SW

24-36

months

Community

subprojects and

safety nets continue

implementation

Lessons learned

from MTR are

implemented

through action plan

to ensure a

continued

satisfactory project

rating towards

achieving the PDO

Support to

implementation

Fiduciary and

safeguards

specialists

support in

supervising

compliance with

Bank

requirements

Expertise in

evaluating the

impact of cash

for work and cash

transfer

interventions

Bank

TTL/Operations

Analyst and

Consultant-

FM specialist-

Procurement

specialist

Social safeguards

specialist- 1 SW

Environmental

safeguards

specialist- 1SW

Communication

specialist- 1 SW

M&E specialist- 2

SW

Bank will provide

support through

its budget

9. The implementation support plan will be reviewed at least once a year to ensure that it

continues to meet the implementation support needs of the project.

Skills Mix Required

Skills Needed Number of Staff

Weeks

Number of Trips Comments

TTL At least 3 the first year,

at least 2 the following

years

STC (social protection

specialist)

10 SW Based in Togo

M&E Specialist 3 SW (first year) 1 or 2

Operation Analyst 8 SW 1 Based in HQ

Specialist in cash

transfers (Cons)

3 SW annually 2 the first year, 1 the

following years

Based in Benin

PR specialist 2 SW annually 2 annually Based in Togo

FM specialist 3 SW annually 1 annually Based in Benin

50

Social safeguard

specialist

.5 SW annually 1 annually Based in HQ

Env. safeguards

specialist

1 SW annually 1 or 2 as required Based in Côte d‟Ivoire

Communication

specialist

1 SW annually Field trips as required Based in Togo

Partners

Name Institution/Country Role

UNICEF UNICEF Support the identification of cash

transfer beneficiaries, and the

implementation of the training

activities of the cash transfer sub-

component

S AS AVVA N N AA N N A

K A R AK A R A

C E N T R A LC E N T R A L

P L AP L A T E A UT E A U

M A R I T I M EM A R I T I M E

O G O UO G O U

Z I OZ I O

V OV O

B A S S A RB A S S A R

K E R E NK E R E N

O T IO T I

TT ÔÔ N EN E

LACS

LACS

YOTOYOTO

H A H OH A H OK L O T OK L O T O

WWAAWWAA AMOUAMOU

SOTOUBOUASOTOUBOUAN YN YA L AA L A

TCHAOUDJOTCHAOUDJO

Mont AgouMont Agou(986 m) (986 m)

FFaazzaa

ooMM

ttss..

OOttii

KKoouummoonnggoouu

KKaarraa

MM

oonn

ooAA

nniiee

SSiioo

AAmmoouu

MandouriMandouri

GuGuéérinrinKoukaKouka

ElavagnonElavagnon

BlittaBlitta

AgouAgou

KKééveve

AnjAnjéé

ApApééyyéémméé

KpalimeKpalimeNotsNotséé

TTssééviviéé

TTabligboabligbo

VVoganogan

AmlamAmlamééBadouBadou

SotoubouaSotouboua

BassarBassar

BafiloBafilo

SokondSokondéé

MangoMango

TTchambachamba

KantKantéé

NiamtougouNiamtougou

AtakpamAtakpaméé

DapaongDapaong

KaraKara

G H A N A

BURKINA FASO

B E N I N

NIG

ER

IAN

IGE

RIA

To o Yendiendi

To o NavrongoNavrongo

To o OuagadougouOuagadougou

To o DiapagaDiapaga

To o NatitingouNatitingou

To o KokoroKokoro

To o SavSavé

To o Kétoutou

To o AccraAccra

To o AccraAccra

To o Yendiendi

To o BimbilaBimbila

To Lagoso Lagos

To o ParakouParakou

To o ParakouParakou

To o Tamaleamale

S AVA N N A

K A R A

C E N T R A L

P L A T E A U

M A R I T I M E

O G O U

GOLFE

Z I O

V O

B A S S A RASSOLI

KOZAH

BINAH

DOUFELGOUK E R E N

O T I

T Ô N E

LACS

YOTO

H A H OK L O T O

WAWA AMOU

SOTOUBOUAN YA L A

TCHAOUDJO

Mandouri

GuérinKouka

Elavagnon

Blitta

Agou

Kéve

Anjé

Apéyémé

KpalimeNotsé

Tsévié

Aného

Tabligbo

Vogan

AmlaméBadou

Sotouboua

Bassar

Bafilo

Mango

Kpagouda

Tchamba

Kanté

Niamtougou

Atakpamé

Dapaong

Kara

Sokondé

LOMÉ

G H A N A

BURKINA FASO

B E N I N

NIG

ER

IA

Oti

Koumongou

Kara

M

on

oA

nie

Sio

Amou

Bight of Benin

LakeVolta

To Yendi

To Navrongo

To Ouagadougou

To Diapaga

To Natitingou

To Kokoro

To Savé

To Kétou

To Accra

To Accra

To Yendi

To Bimbila

To Lagos

To Parakou

To Parakou

To Tamale

Faza

oM

ts.

Mont Agou(986 m)

0° 1°E

1°E

2°E 3°E

7°N

8°N

9°N

7°N

6°N

8°N

9°N

10°N

11°N 11°N

TOGO

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

0 20 40

0 10 20 30 40 50 Miles

60 Kilometers

IBRD 33497

NOVEMBER 2004

TOGOSELECTED CITIES AND TOWNS

PREFECTURE CAPITALS

REGION CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

PREFECTURE BOUNDARIES

REGION BOUNDARIES

INTERNATIONAL BOUNDARIES

The World Bank FOR OFFICIAL USE ONLY · 2016. 7. 13. · with its terms. No Effectiveness One time...

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Transcript of The World Bank FOR OFFICIAL USE ONLY · 2016. 7. 13. · with its terms. No Effectiveness One time...