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Document o f The World Bank
FOR OFFICIAL USE ONLY
Report No: 47740-SN
EMERGENCY PROJECT PAPER
UNDER THE GLOBAL FOOD CRISIS RESPONSE PROGRAM
ON A PROPOSED GRANT FROM THE MULTI-DONOR TRUST FUND
IN THE AMOUNT OF US$8 MILLION
AND A PROPOSED CREDIT
IN THE AMOUNT OF SDR 6.8 MILLION (US$lO MILLION EQUIVALENT)
TO THE
REPUBLIC OF SENEGAL
FOR A
RAPID RESPONSE CHILD-FOCUSED SOCIAL CASH TRANSFER AND NUTRITION SECURITY. PROJECT
April 20,2009
Human Development I1 Country Department AFCFl Africa Region
This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective February 28,2009)
AfDB AMC ARD BEN BER CADL
CAS CBO CEA CFAA c-IMCI C L M
C M A M COSFAM
DDI
DL ESAM FM FMA GDP GFRP GPN IBRD ICB ICP IDA IFAC IFR ISR
Currency Unit = Franc CFA (FCFA) 517FCFA = US$1
US$0.67747 = SDR 1
FISCAL YEAR January 1 - December31
ABBREVIATIONS AND ACRONYMS
African Development Bank Arrondissement-level Monitoring Committee Agence Rkgionale de De'veloppement (Regional Development Agency) Bureau ExkcutifNational (National Executive Bureau) Bureau ExkcutifRkgional (Regional Executive Bureau) Centre d 'Appui au Developpement Local (Center for Support to Local Development) Country Assistance Strategy Community-based Organization Community Executing Agency Country Financial Accountability Assessment Community-based Integrated Management o f Childhood Illnesses Cellule de Lutte contre la Malnutrition (Coordination Unit for the Fight Against Malnutrition) Community Management o f Acute Malnutrition Comite' Se'nkgalais de Fort i jkat ion des Aliments en Micronutriments (National Food Fortification Committee) Direction de la Dette et de I 'Investissement (Debt and Investment Directorate) Disbursement Letter Enqugte Sknkgalaise A u p r h des Mknages (National Household Survey) Financial Management Financial Management Assessment Gross Domestic Product Global Food Price Crisis Response Program General Procurement Notice International Bank for Reconstruction Development International Competitive Bidding InJirmier Chef de Poste (Health Post Head Nurse) International Development Association International Federation o f Accountants Interim Un-Audited Financial Reports Implementation Status Report
i
LG LIB LSC L Q A S MDG MDTF MEF MI MOE MOHP N C B N G O NSPS P C U PDO PEFA PFM PIM PRN
PRSP PSAOP2 RFP S A D S
SA1 SBD SMART UNDB UNICEF U S A I D VAT WFP
FOR OFFICIAL USE ONLY Local Government Limited International Bidding Local Selection Committee Lo t Quality Assurance Sampling Mi l lennium Development Goal Multi-Donor Trust Fund Ministry o f Economy and Finance Micronutrient Initiative Ministry o f Education Ministry o f Health and Prevention National Competitive Bidding Non-governmental Organization National Social Protection Strategy Project Coordination Unit Project Development Objective Public Expenditure and Financial Accountability Public Financial Management Project Implementation Manual Programme de Renforcement de la Nutr i t ion (Nutrition Enhancement Program) Poverty Reduction Strategy Paper Agricultural Services and Producers Organizations Project Request for Proposals Service d 'Appui au De'veloppement Social (Department o f Support to Social Development) Supreme Audit Institution Standard Bidding Documents Standardized Monitoring and Assessment for Rel ief and Transition United Nations Development Business United Nations Children's Fund United States Agency o f International Development Value Added Tax World Food Program
Vice President: Obiageli Katryn Ezekwesili Country Director: Habib Fetini
Sector Manager: Eva Jarawan Task Team Leader: M e m o Mulder-Sibanda
a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.
SENEGAL Rapid Response Child-Focused Social Cash Transfer and Nutrition Security Project
CONTENTS
Page
A . Introduction ........................................................................................................... 1
B . Country Context and Rationale for Proposed Bank Emergency Project ........ 1
C . Bank Response: The Project ............................................................................... 4
Brief description o f Bank’s strategy o f emergency support ................................... 4 Project Development Objectives and Expected Outcomes ..................................... 5
Financing instruments ............................................................................................. 7
Eligibility for Processing under OPBP 8.0 ............................................................ 7
Summary of Project Components ............................................................................ 6
D . Appraisal of Project Activities ............................................................................. 8
E . Implementation Arrangements and Financing Plan ....................................... 10
F . Project Risks and Mitigating Measures ............................................................ 15
G . Terms and Conditions of Project Financing .................................................... 16
Annex 1: Detailed Description of Program Components ............................................ 18
Annex 2: Results Framework and Monitoring ............................................................ 27
Annex 3: Summary of Estimated Project Costs ........................................................... 31
Annex 4: Financial Management and Disbursement Arrangements ......................... 32
Annex 5: Procurement Arrangements .......................................................................... 40 Annex 6: Implementation, Monitoring, and Institutional Arrangements ................. 48
Annex 7: Project Preparation, Appraisal and Negotiations Team Members ........... 53
... 111
EMERGENCY OPERATION PROJECT PAPER DATA SHEET Senegal, Africa Region
Rapid Response Child-Focused Social Cash Transfer and Nutrition Security Project
Date: April 20, 2009 Country Director: Habib Fetini Sector Manager: Eva Jarawan Lending instrument: Emergency op. Project ID: P115938
Team Leader: Menno Mulder-Sibanda Sectors: Health (80%); Other social services (20%) Themes: Nutr i t ion and food security (P); Chi ld
health (S); Social safety nets (S) Environmental screening category: C
Proposed terms: IDA Credit / Grant
Expected effectiveness date: M a y 15,2009
Recipient: Government o f Senegal
Expected implementation period: 32 months
Expected closing date: December 3 1,201 1
Responsible agency: Cellule de Lutte contre l a Malnutrit ion (CLM), Rue 7, Point E, Dakar; P.O.Box 45001 Dakar-Fann, Tel: +221-869-0199 ; Fax: +221- 864-3 8 6 1, Email: ben@,clm.sn
Source Recipient Total IDA Trust Funds
iv
Local Foreign Total 0.0 0.0 0.0 0.0 10.0 10.0 0.0 8.0 8.0
Total 0.0 18.0 18.0
2009 2010 201 1 2012 Total IDA 0.4 4.1 3 .O 2.5 Multi-Donor GFRP Trust Funds 0.4 3.6 2.4 1.6 Does the emergency operation require any exceptions f rom Bank policies?
A re there any critical r isks rated “substantial” or “high”? Have these been approved by Bank management?
Yes [ ] N o [XI Yes [ 1 N o [ 1 Yes [ ] N o [XI
What safeguard policies are tiggered, i f any? Significant, non-standard conditions, if any:
None None
A. Introduction
1. This Project Paper seeks the approval for support to be provided to Senegal for a Rapid Response Child-Focused Social Cash Transfer and Nutri t ion Security Project to be financed by a credit and grant totaling US$18 million. This project will be financed through the Mult i-Donor Trust Fund (MDTF) in support o f the Global Food Price Crisis Response Program (GFRP) in the amount o f $8 mi l l ion Grant, and the redeployment o f $10 mi l l ion IDA resources for a Credit from Senegal's existing portfolio.
2. As a result o f the sharp increase o f food prices, living conditions o f the poorest households are deteriorating, with an increase in the level o f household indebtedness and a reduction in the quality and frequency o f meals, thus increasing food insecurity and malnutrition. The proposed project wil l support two sets o f appropriate cost-effective programs: (i) one that offsets the income effect o f the shock through targeted social cash transfers; and (ii) one that seeks to mitigate its consequences on human development outcomes such as the health and nutrition status o f children (GFRP framework document 2008). Hence, the proposed grant and credit will help finance the costs associated with the accelerated scaling up o f the Government Nutr i t ion Enhancement Program (known by its French acronym PRN) and the broadening o f i t s current range o f activities by adding the development and implementation o f a chi ld focused social cash transfer component.
3. The PRN is implemented in close coordination with other development partners, notably UNICEF, WFP, Micronutrient Initiative, WHO, U S A I D and the Afr ican Development Bank. For this project, UNICEF and WFP provide technical backstopping on safety net and social protection issues. UNICEF, WFP and Micronutrient Initiative co-finance the project in specific areas such as case management o f severe acute malnutrition (UNICEF), moderate acute malnutrition (WFP) and salt iodization (MI). Joint partnership implementation support missions are conducted twice a year under the leadership o f the Bank.
B. Country Context and Rationale for Proposed Bank Emergency Project
4. Country context: Senegal has experienced two successive years o f agricultural production shortfalls owing to inadequate rainfall, which resulted in a 25 percent reduction in cereal production between 2006/07 and 2007/08. As a result, Senegal i s covering only 34 percent o f its cereal needs through its o w n production, at a time when prices for imported cereals, such as rice and wheat, have reached record highs. Above average harvest was recorded for the 2008/09 season. Nevertheless, the food outlook for 2009 remains uncertain due to several factors, including the very l o w cereal carry-over stocks at the beginning o f the marketing year due to previous year's reduced crop and above all, the high dependence o n imported cereals.' Although coarse grain prices have declined since the beginning o f the harvest in September, they s t i l l remained much higher in December 2008 as compared to a year before. The situation is worse for rice prices which are determined by world prices. Senegal imports 80 percent o f its rice. The price
' and Agriculture. FAO, Rome, 2009
Crop prospects and food situation. GIEWS, Global Information and Early Warning System on Food
1
difference for rice between December 2008 and December 2007 i s a staggering 80 percent. The Consumer Price Index (CPI) for coarse grains by end o f January 2009 was 33 percent higher than in January 2008 and 48% higher than in January 2007. Data from Niger, Burkina Faso and M a l i show that prices o f coarse grains are starting to increase again since January 2009.
5. The impact o f the sharp rise in food prices on poverty has been estimated in a recently conducted poverty studya2 A 30 percent increase in the price o f rice, cooking oil, sugar, wheat, millet, and milk products alone would push poverty up by six percentage points from 51 percent in 2005/06 to 57 percent today with l i t t le difference between rural and urban areas. Many poor urban households have seen their purchasing power dwindle rapidly over the past two years and are struggling to make ends meet while poor rural households are trapped in accumulated debt burdens forcing them to sell their harvest at l o w prices. As a result, the living conditions o f the poorest households are deteriorating, with an increase in the level o f household indebtedness and a reduction in the quality and frequency o f meals, thus increasing food insecurity and malnutrition.
6. Malnutrition i s known to have long-term cognitive and productivity effects and may generate cumulative economic costs, up to three percent o f GDP annually. These deleterious consequences outweigh the short-term fiscal savings from direct nutrition action to prevent malnutrition and promote adequate growth in young children. Malnutrition during early childhood has lifelong impacts o n human capital. A large body o f evidence illustrates that poor nutrition during this period can reduce a child’s educational, cognitive, and physical potential, leading to lower wages and reduced lifetime earnings. Poor and malnourished children usually start school later, complete fewer years o f schooling, and attain lower achievement levels and poorer grades compared to well-nourished children3 Fewer years o f education, poor cognitive development, and smaller stature in childhood reduce adult earning potential. For example, in Brazil, a one percent increase in height was found to lead to a 1.4 percent increase in adult male earning.
7. The Government o f Senegal i s committed to the fight against malnutrition as an integral part o f poverty-reduction efforts as evidenced in the Poverty Reduction Strategy Paper (PRSP; 2002 & 2007) and the National Social Protection Strategy (NSPS; 2005- 201 5). The National Nutr i t ion Development Policy, issued in 2001 and’updated in 2006, formed the basis for the PRN. Senegal has made considerable progress o n MDG related targets and seen a 23 percent reduction in malnutrition rates since 2000 after a decade o f stagnation. Similarly, chi ld mortality has come down by 30 percent and maternal mortality by 21 percent reduction since 1990. The current crisis o f sharply risen food prices, if le f t unattended, has the potential to undo the progress o f the last 5-10 years and put Senegal right back at pre-1990 levels.
’ Ivanic M, W. Martin. Implications of Higher Global Food Prices for Poverty in Low-Income Countries. World Bank, Washington, 2008; and Senegal: Diagnostique de la pauvretk. Rapport prkliminaire. World Bank, Washington, 2008.
Repositioning nutrition as central to development: A strategy for large-scale action. The World Bank, Washington, 2006
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8. Government response: In response to the rising costs o f fuel and food, the government introduced in 2007 general tax breaks and subsidies on rice and other commodities that ensured availability but proved very expensive (between 3 and 4 percent o f GDP) and poorly targeted to the poor. Towards the end o f 2008, the government, under severe budget constraints, had no other choice than to lift most o f these general subsidies. This has heightened the government’s interest to replace these subsidies with wel l targeted safety net programs, notably cash transfers. The NSPS was developed with an overall objective o f strengthening and extending, in an equitable manner, social protection instruments to achieve the following: extending health insurance coverage from 20 to 50 percent of the population and implementing a social protection regime that covered risks resulting from shocks, mainly affecting populations working in the informal sector (agriculture, crafts, etc.). In the annual progress report o f the PRSP (2008) the government recognizes that implementation o f the strategic pillar o n protecting vulnerable groups has been weak. Given existing financial and administrative constraints, i t i s necessary to define concrete programs and interventions, such as the proposed operation o n malnutrition and child-focused social transfers, to mobilize actions and resources to implement the NSPS.
9. Project priorities: Concerned about possible negative effects o f high food prices on the nutrition status o f young children, the Ministry o f Health and Prevention conducted a series o f prevalence surveys in high risk areas and found high levels o f acute malnutrition. The C L M (Cellule de Lutte contre la Malnutrition) together with the Ministry o f Health, UNICEF, WHO, WFP and University professors have started to introduce the concept o f community management o f acute malnutrition in these areas. For the same reasons, UNICEF and WFP have increased their support for the community-based nutrition component o f the PRN. Following current concerns about vulnerability and r isk management, a l l development partners are showing increased interest in social protection programs, including safety nets. UNICEF has initiated analytical work on child-centered cash transfer programs and together with the Bank is intensifying the pol icy dialogue o n safety net issues. The government i s in favor o f moving ahead with a cash transfer pi lot but also wants the experience to be scaled up rapidly if shown successful. The Ministry o f Economy and Finance (MEF) has expressed an interest in bringing other donors l ike the AfDB and the European Union in the loop to see how the experience can eventually be scaled up.
10. Consistency with country strategy: The proposed activities are consistent with the current Country Assistance Strategy (CAS, 2003), the PRSP (2007), the Nutr i t ion Development Pol icy (2006) and the NSPS (2005). This project is aligned with pillar I1 (accelerated development o f human capital through nutrition) and pi l lar 111 (combating vulnerability through cash transfers) o f the PRSP. As a result o f the food price hikes, the government and the development partners have al l become acutely aware o f the importance to develop and invest in effective social protection programs including safety nets and nutrition.
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C. Bank Response: The Project
Brief description of Bank’s strategy of emergency support
11. The Bank’s strategy for emergency support to Senegal is aligned with the Government’s strategic approach. The proposed support to Senegal will focus primarily on: (i) safety net provisions in the form o f targeted social cash transfers and the protection o f children’s health and nutrition status through an investment operation in support o f the PRN; and (ii) increasing agricultural productivity, stabilizing production and improving household food security through an additional financing to the ongoing Agricultural Services and Producers Organizations Project (PSAOP2).
12. In response to the need to protect children’s nutrition status and develop cost- effective safety nets, the proposed emergency project engages in two sets o f appropriate cost-effective programs: (i) one that directly offsets the income effect o f the shock through targeted social cash transfers; and (ii) one that seeks to mitigate i t s consequences on human development outcomes such as the health and nutrition status o f children. The response focuses o n measures that address the short and medium to long term implication o f the global food crisis for Senegal, which i s fully consistent with the Bank’s GFRP. The GFRP encompasses support for interventions in the fol lowing areas: (i) food price pol icy and market stabilization, (ii) social protection actions to ensure food access and minimize the nutritional impact o f the crisis on the poor and vulnerable, (iii) enhancing domestic food production and marketing response, and (iv) implementation support, communications and monitoring and evaluation (GFRP framework document, 2008).
13. The proposed Child-Focused Social Cash Transfer and Nutri t ion Security Project will build on achievements o f the PRN. The PRN is built o n past community-based nutrition experiences and has enhanced synergy between various direct nutrition interventions. The program i s structured around three phases; Phase I (2002-2006) which developed the basic technical, organizational and institutional capacity; Phase 2 (2007- 201 1) i s characterized by scaling up and broadening the scope; and Phase 3 (20012-2015) represents the consolidation phase.4 The PRN was launched in 2002 and by December 2005, the community nutrition program reached more than 200,000 children under the age o f two and their mothers, representing approximately 20 percent o f the total number o f children under-two. This result was obtained by enhancing the capacity o f the implementing agencies (NGOs) which set up a total o f 924 community sites in 34 Districts and trained almost 2,500 nutrition aides. Monthly monitoring data show that the proportion o f children under three with malnutrition was 27 percent in June 2004, gradually dropping to 18 percent in December 2004, to 13 percent in June 2005, and to just 10 percent in December 2005. Other results showed an increase in the rate o f exclusive breastfeeding by 28 percentage points, an increase in the number o f children sleeping under bednets by 3 1 percentage points, an increase in prenatal care (minimum o f three visits) by 15 percentage points, and an increase in the recognition o f the danger
Programme de Renforcement de la Nutrition: Plan Stratigique Phase II2007-2011. CLM, Dakar, 2006.
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signs o f childhood illnesses by 16 percentage points. The Bank’s project in support o f Phase 1 was rated as highly ~at is factory .~
14. A s intended in Phase 2, the program i s expanding, geographically targeting the areas with the highest malnutrition rates, with a goal o f reaching over 70 percent o f children in the hardest hit areas and 50 percent o f children nationwide by 2011. Moreover, the second phase i s implemented through subprojects by Local Governments which contract NGOs. However, the program i s faced with acute funding constraints. IDA supports the program with a $15 mi l l ion investment project (2007-2012) o f which $5 mil l ion came from the malaria booster program. The Government, which contributes approximately $12 million, i s faced with serious budget constraints and has been unable to make the necessary contributions to the program. These funding constraints are holding back the potential scope, intensity and coverage o f the program. The IDA project i s rated satisfactory to highly satisfactory and the disbursement rate is 75 percent as o f December 2008. The proposed project will enable the community nutrition program to move instantly into al l 58 Districts with subprojects in 251 Local Governments (see Annex 6).
15. The P R N already benefits from closely coordinated partnership support. UNICEF, WFP and the Micronutrient Initiative co-finance the program and implementation is coordinated with U S A I D and AfDB supported programs on chi ld survival and health sector support. With the introduction o f the cash transfer component, the MEF will continue to present the experience to the European Union and the AfDB as l ikely partners to j o i n the partnership in support o f the PRN and the safety net operation. The Government’s intention i s to quickly scale up the cash transfer component once an efficient mechanism i s developed under this project.
Project Development Objectives and Expected Outcomes
16. The overall program objective o f the PRN i s to contribute to the attainment o f the first MDG o f eradicating extreme poverty and hunger through implementation o f the Nutri t ion Development Policy aimed at improving the nutrition status o f vulnerable groups, notably children and pregnant and lactating women.
17. The development objective o f the proposed Child-Focused Social Cash Transfer and Nutr i t ion Security Project is to reduce the risk o f nutrition insecurity o f vulnerable populations, in particular children under five in poor rural and urban areas, by scaling up the Government Nutr i t ion Enhancement Program and providing cash transfers to vulnerable mothers o f children under five. The PDO is being measured through four key outcome indicators: (i) the percentage o f the target population reached by the community nutrition program; (ii) the percentage o f mothers providing exclusive breastfeeding for the f i rs t six months; (iii) the number o f beneficiaries o f the cash transfer program; and (iv) the percentage o f selected beneficiaries who receive al l intended cash transfers.
Implementation Completion Report: Senegal Nutrition Enhancement Project Phase I , World Bank, Washington, 2007.
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18. The expansion and intensification o f the PRN aims to (i) protect chi ld growth and micronutrient status in targeted children; (ii) promote sectoral ownership and accountability for nutrition results, notably in health (nutrition services and supervision), education (micronutrients and deworming) and food fortification (with iodine, i ron and vitamin A); and (iii) enhance awareness and monitoring o f nutrition in development by al l levels o f government. With the addition o f the new child-focused social cash transfer component the PRN also seeks to increase household consumption in targeted, most vulnerable families with children under five and to provide a feasible and replicable instrument that can effectively mitigate adverse effects o f shocks on vulnerable populations. Ultimately the success o f the cash transfer program will be measured by the effectiveness o f the program in reaching the truly needy and the government adopting it as part o f their NSPS. A l ist o f indicators is available as part o f the Results Framework in Annex 2.
Summary of Project Components
19. This project consists o f four components. Components 1-3 focus o n protecting and promoting the nutritional security o f mothers and young children by scaling up and intensifying the existing PRN package o f community-based nutrition and health services and activities. Component 4, the child-focused social cash transfer, i s a rapid response mechanism to mitigate the adverse effects o f high food prices on young children in vulnerable fami l ies by providing additional resources to these households (see Annex 1 for more details).
20. Component 1: Community-based Nutrition (IDA US$6.6 million; MDTF US$3.1 million): The cornerstone o f this component i s community-based growth promotion and Integrated Management o f Childhood Il lnesses (c-IMCI) including the community management o f (severe) acute malnutrition (CMAM). This component i s implemented through subprojects with Local Governments and NGOs that act as community executing agencies (CEA). These subprojects provide for monthly growth monitoring for children under two, nutrition education for mothers, provision o f i ron and vitamin A supplements, deworming and insecticide treated bednets. The behavior change communication strategy focuses on infant and young chi ld feeding practices as recommended by WHO and UNICEF, disease preventive measures, home-based care, recognition o f danger signs, and care seeking for sick children and incorporates not only mothers but other influential caregivers such as grandmothers. In addition, arrangements have been secured to incorporate support from UNICEF and WFP for the management of acute malnutrition which is being rol led out in al l the intervention areas. Community workers screen children regularly to identify cases o f acute malnutrition and provide behavior change counseling for mothers, home visits to children requiring special attention, and cooking demonstrations. To promote improved micronutrient status, community-level communication activities wi l l convey messages about dietary diversification and create demand for vitamin A and i ron supplements and fortified foods (particularly iodized salt). Under this project, this component wil l be scaled up and have nation-wide coverage (see Annexes 1 and 6). In addition to subprojects, this component supports capacity building o f CEAs, Local Governments and their support systems.
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2 1. Component 2: Sectoral Support for Nutrition Results (IDA US$1.3 million): This component wil l support sectoral efforts in health and education to improve growth and nutrition, notably the minimum intake o f micronutrients, which, although needed in small quantities, are essential for survival, growth and development. These activities are identified through the annual work plans and agreed upon in annual agreements. The global food price crisis has increased the risk o f compromised quality o f dietary intake, notably o f essential micronutrients. The proposed activities include periodic distribution o f micronutrient supplements and deworming medicines, supervision o f nutrition services, and scaling up o f food fortification.
22. Component 3: Support to Implementation, Monitoring and Evaluation of Nutrition Development Policy ( IDA US$ 700.000): This component includes activities that strengthen the implementation and monitoring performance o f the CLM, local governments, and l ine ministries. The PRN has developed an efficient monitoring and evaluation system that will need to be adapted to include enhanced monitoring o f the cash transfer program. This component wil l promote ownership and accountability o f stakeholders, including local government, which play an important role in the scaling-up o f the community activities (nutrition and cash transfers) o f the PRN, mainly through technical assistance, training and workshop-related activities.
23. Component 4: Child-focused Social Cash Transfers (IDA US$1.4 million MDTF US$4.9 million): The cash transfer component wil l utilize the PRN community organization structure to identify eligible beneficiaries (mothers o f young children in vulnerable families), who wil l receive small bimonthly payments for six months. The cash transfer wil l be accompanied by a strong communication campaign emphasizing messages about maternal and chi ld nutrition, and close monitoring o f process and effect. This component will be implemented in 10 districts that have been identified by the MOH as having critical levels o f malnutrition (see Annex 1).
Financing instruments
24. The proposed interventions will be financed by a US$ 8 mi l l ion grant from the Food Price Crisis Response Program’s Multi-Donor Trust Fund (MDTF) and $10 mi l l ion credit from a redeployment o f IDA resources from Senegal’s existing portfolio. The financing instrument i s a new grantkredit facility for the proposed Child-Focused Social Cash Transfer and Nutr i t ion Security Project.
25. Another financing option that was considered by the government and the team included additional financing to the current IDA support to the PRN, which runs until 2012. However, this option was rejected because the introduction o f the new and untested component o n cash transfers implies restructuring a highly satisfactory project.
Eligibility for Processing under OPBP 8.0
26. Due to the emergency nature o f the crisis, this project was prepared under OP 8.00, which provides the Bank’s pol icy framework on Rapid Response to Crisis and
7
Emergencies and enables the Bank to provide a rapid response in support of, inter alia, the fol lowing objective: “establishing and/or preserving human, institutional, and/or social capital, including economic reintegration o f vulnerable groups.” OP 8.00 further provides that: “in support o f this objective, emergency operations may include activities forming part o f the government’s transitional social safety net programs including cash payments”. Consistent with the guiding principles of OP 8.00, the project wil l address major adverse economic and social impacts resulting from the hike in prices, the reduced consumption in poor households, and risk o f increased childhood malnutrition.
D. Appraisal of Project Activities
27. Economic andfinancial: The benefits from the proposed project are both direct and indirect as wel l as short- and longer-term. As highlighted in the GFRP document, the urgency o f a response prohibits quantitative economic appraisal. Instead, the GFRP proposes a rapid appraisal o f the fol lowing factors, based on standard good practice for the economic evaluation o f public investments: (1) pol icy context; (2) target beneficiaries; (3) expected benefit, cost-effectiveness, and/or benefithost ratios; and (4) analysis o f fiscal sustainability.
28. The proposed program i s consistent with the framework set out in the GFRP. The overall policy context recognizes the importance o f vulnerability to food insecurity and poverty and the need to increase investments in social protection programs. Targeting i s explicit in al l components o f the project and focuses o n vulnerable families with children under five years o f age (categorical and community-based targeting) in the most affected urban and rural areas (geographical targeting). The combination o f social cash transfers and nutrition security activities wil l ensure the program delivers both immediate program benefits and longer-term development gains. The 2008 Copenhagen Consensus by some o f the world’s leading economists that looked at the world’s best investments concluded that nutrition investments, notably micronutrients and community nutrition, generate returns among the highest o f 30 potential development investmenk6 Investments in micronutrients were rated above those in trade liberalization, malaria and water and sanitation. Community-based programs are also cost-effective in preventing malnutrition. Overall the benefit-cost ratios for nutrition interventions range from 5 to 200.’ Most aspects o f the program are sustainable. The proposed project does not give r ise to the creation o f open-ended commitments o f public resources (e.g. for price support or for subsidies). The proposed components al l build on on-going Government policies and are aimed at providing short term financing and associated technical assistance to improve the efficiency and reach o f these programs. Subsequent support, where needed, can be provided within the fiscal envelope o f the country’s macroeconomic program. The costs o f the community nutrition interventions are below $5 per chi ld per year.
Copenhagen Consensus Results. Copenhagen Consensus Center, Frederiksberg, Denmark, 2008.
Repositioning Nutrition as Central to Development: A Strategy for Large-Scale Action. World Bank,
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www.coDenhagenconsensus.com.
Washington, 2006 7
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29. Technical: The government proposal builds on the global consensus o f the importance o f community nutrition programs as articulated in the Bank’s strategy document “Repositioning Nutr i t ion as Central to Development.” A recent cross-country review o f successful programs has indeed shown that malnutrition can be reduced two to four times faster than in the absence o f such a program.8 The main thrust o f community- based nutrition and health programs i s education and counseling regarding mother and chi ld care practices, and l i n k s to essential health services. The first phase has shown the effectiveness o f the community-based communication and services strategy in reducing malnutrition through behavior change.
30. A range o f international examples o f cash transfer programmes in diverse regions o f the world, from Lat in America to Africa, have shown their positive results on poverty reduction and, when targeted at children, o n chi ld poverty r e d u ~ t i o n . ~ Further, empirical evidence for Senegal using national household data presented in this section shows that a cash transfer programme could have a positive impact on the reduction o f chi ld poverty. Senegal has made progress in recent years in the supply o f basic services, although there are s t i l l significant challenges in access to quality services, particularly in rural areas, where there are significant differentials in access with respect to urban areas, and where most o f the poor live. A cash transfer program to poor households with children could be a helpful mechanism to strengthen uptake o f services, so complementarities can be strengthened.
3 1. Fiduciary: A financial management assessment was carried out to determine whether the National Executive Bureau (BEN) o f the C L M in charge o f overseeing the implementation o f the project has acceptable financial management arrangements in place. The conclusion o f the assessment i s that the financial management system o f the BEN, subject to the reinforcement measures, satisfies the Bank’s minimum requirements under OPA3P10.02, and therefore i s adequate to provide, with reasonable assurance, accurate and timely financial management information on the status o f the project required by Wor ld Bank. The financial management arrangements will be strengthened with the implementation o f the action plan in annex 4. The fiduciary aspects o f the current emergency operation will be handled by the qualified fiduciary team o f the CLMA3EN who has strong knowledge and experience in Bank’s fiduciary procedures.
32. Social: Many socio-cultural issues, notably social factors and traditional beliefs, determine mother and chi ld care practices and behaviors and thereby nutritional status and growth. Therefore, the community nutrition program wil l invest in community-based communication to enhance awareness and capacity to prevent malnutrition and promote healthy growth in children. The project wil l advocate for nutrition to be included in Local Development Plans, which often i s biased towards infrastructural development projects. A key feature o f the community-based component o f the project i s the mobilization o f women. Issues are periodically discussed with community leaders,
Mason, JB., D. Sanders, P. Musgrove, Soekirman, R. Galloway. “Community Health and Nutrition Programs” in Disease Control Priorities in Developing Countries (2nd Edition), ed. , 1,053-1,074. Oxford University Press, New York, 2006.
Barrientos A, R. Holmes. Social Assistance in Developing Countries Database. IDS, Brighton, 2006.
9
bringing women’s issues to the forefront o f community discussions. This puts the P R N in a unique position to channel women’s voices al l the way up to the level where Local Development Plans are conceived, elaborated, and implemented.
33. The implementation o f the project wil l require high levels o f transparency and participation. The C L M has gained valuable experience during the implementation o f the PRN. A special communication strategy i s designed to accompany the cash transfer program, and together with the institutional and monitoring arrangements, will assure that transparency is maintained for al l stakeholders in the program.
34. Safeguard policies: N o negative environmental and social consequences are anticipated. This operation falls under environment category C.
Safeguard Policies Triggered by the Project Yes N o
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OPBP 4.04)
Pest Management (OP 4.09)
Cultural Property (OPN 1 1.03, being revised as OP 4.1 1)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples (OPBP 4.10)
Forests (OP/BP 4.36)
Safety o f Dams (OPBP 4.37)
Projects in Disputed Areas (OPBP 7.60)
Projects on International Waterways (OP/BP 7.50)
E. Implementation Arrangements and Financing Plan
35. which C L M
Implementation arrangements: The project will be implemented by the CLM, already successfully implements the Nutr i t ion Enhancement Project (PRN). The is the overseeing inter-ministerial coordination committee under the Prime
Minister’s Office, assisted by the National Executive Bureau (BEN) as its technical secretariat. The BEN i s represented at regional level by three Regional Executive Bureaus (BER). The CLM’s responsibilities are primarily to coordinate and supervise the various actors involved in the implementation o f the different components; Le., line ministries, local government, Community Executing Agency (CEA), decentralized public services, communities, and, for component 4, local payment service providers. Figure 2 summarizes the key stakeholders and the institutional set-up for the implementation o f the project.
36. The community-based nutrition program (component 1) i s at the heart o f the PRN. I t i s implemented through subprojects by Local Governments (Cornrnunaute‘
10
rurale) and CEAs. The grounds for scaling up to 58 Districts has already been prepared between July 2008 and February 2009 with each newly participating Local Government having: (i) selected one CEA (through a competitive process with assistance from the CLM) to which i t wil l contract out the community-based nutrition interventions; (ii) submitted a subproject proposal to C L M for funding; and (iii) signed a contractual agreement with the CLM. For the existing areas that were under Phase I, N G O performance has been evaluated and nine out o f 12 were allowed to continue in the program, but now under contract with Local Governments. Local Governments monitor and report o n activities and are expected to start incorporating nutrition and nutrition indicators in their Local Development Plans. The CLM, through i t s regional representations will accompany Local Government authorities in the process o f increased responsibility o f the community-based nutrition component through formative workshops, frequent monitoring and supervision visits, and regional meetings.
Line Ministries (Health, Education, Family, Finance)
Figure 2: Institutional architecture
Local Government (Local Selection
Committee)
T \
Decentralized Financial Institutions
Prime Minister’s Office fi I I I
I I / \ / \
Decentralized services (Arrondissement-level
Monitoring Committee)
Community Executing Agency (CEA)
J
I Vulnerable Mothers o f Children under 5 I 37. A s for the CEAs, they must have legal status (NGO, CBO, or other) and capacity to implement community-based nutrition interventions in an entire health district. On behalf o f the Local Government, the C E A will be in charge o f implementing the activities financed by the C L M . These activities are described in proposals prepared by the selected CEAs and the Local Governments and submitted to the C L M for approval and funding. CEAs signed a grant agreement with their respective Local Governments to implement the activities while reporting to the local authorities and the health district. According to the contractual agreement between the C L M and the Local Government, subproject funds are directly deposited into a separate account o f the CEA.
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38. The role o f the communities i s to: (i) identify and mobilize members o f the community to operate as nutrition aides; (ii) allocate appropriate sites for nutrition aides to conduct monthly growth promotion activities; and (iii) set up management committees to oversee the activities and the community nutrition sites. The nutrition aides belong to (and wil l be supported by) the community. Technical support in the form o f training, formative supervision, and learning exchanges will be provided by the C E A in collaboration with public health service providers and local authorities.
39. The process o f scaling-up the community-based nutrition program will employ two intervention models. An intensive model involving monthly contact with beneficiaries for growth monitoring and promotion and behavior change counseling will be used in communities that have more than 1,000 inhabitants. A less intensive model involving malnutrition screening and behavior change counseling provided on a quarterly basis wil l be employed in villages with fewer than 1,000 people, where the intensive model would not be cost-effective. After completing expansion to these smaller communities, the C L M will increase the intensity o f the intervention in areas that demonstrate greater need.
40. The second component o f multi-sectoral support for nutrition results involves sector ministries and public institutions with direct roles and responsibilities for nutrition outcomes, notably the Ministry o f Health and Prevention, the Ministry o f Education, the National Agency for Childhood Development, and those involved in food fortification (e.g., Ministry o f Industry, the Food Technology Institute). Discrete activities wil l be funded according to agreed-upon technical agreements and annual plans (Lettre d’Exe‘cution Technique; see Annex 4). Many o f these activities have been underhnded under the P R N due to severe national budget constraints that affected al l programs in Senegal. This project wil l support a minimum scale up o f these activities in anticipation o f a reacceleration o f Government contributions to the program. A more detailed description o f the institutional arrangements i s provided in Annex 6.
41. The child-focused social cash transfer (component 4) wil l be implemented using the well-established and effective PRN structures involving actors at the national, regional, district, and community level. Once selected according to clearly-defined targeting criteria, beneficiaries will be entitled to pick up cash on a bimonthly basis at a specified cash distribution site for the period o f 6 months. The project wil l have a phased implementation with subsequent 6-month interventions in different communities (see Annex 6 for more details). Close monitoring and evaluation o f the cash transfer component will inform the C L M on the need for additional measures to enhance effectiveness.
42. Targeting: Like many other cash transfer programs worldwide, this component will utilize a combination o f targeting mechanisms to reach intended beneficiaries. These mechanisms are categorical, geographic, and community-based targeting. The community-based targeting involves the fol lowing organizations and committees:
12
the Local Selection Committee (LSC) organized around the Social Affairs Commission o f the Local Government and including the village chief, religious leaders, and community nutrition aides; the Community Executing Agency (CEA) which i s involved in the implementation o f the community nutrition program; the Arrondissement-level Monitoring Committee (MC) including the “sous- prtfet ”, the health post nurse, and representatives o f the Center for Support to Local Development (CADL), the Regional Development Agency (ARD) and the Department o f Support to Social Development ( S A D S ) .
The community-based targeting process wil l use a standardized process which i s described in detail in Annex 1.
43. Transfer amount: Recent simulations for Senegal show that a transfer size o f approximately 35 percent o f the adult poverty l ine per school-age chi ld would reduce headcount poverty by 30 percent (ie., six percentage points) and the poverty gap by 40 percent. lo A recent comprehensive review o f cash transfer programs, including those that target under five children, indicates that successful programs provide 10 to 30 percent o f pre-transfer household expenditure or consumption, but also highlights variation across countries and the importance o f underlying objectives, duration, targeting, and other parameters.””* Using results from the 2004 Enqugte Senegalaise Aupres des Mtnages (ESAM 11) for household and per capita expenditures for the bottom quintile, and accounting inter alia for inflation and household size, the transfer value has been tentatively set at FCFA 7000 (uS$14; equal to 14% o f the average food basket for a household composed o f four adults) per month per mother o f at least one chi ld under five, regardless o f the number o f children in the household.
44. Conditionality: The transfer wil l be unconditional for the fol lowing reasons: (i) the emphasis on developing an efficient targeting mechanism ensures that only the poorest and most vulnerable mothers with young children at risk o f malnutrition will be reached through the cash transfer component, thereby substantially reducing the chances o f improper use o f the cash amounts received; (ii) the high coverage o f the community- based nutrition program under the PRN, the high beneficiary participation, and the effective communication campaign strategy suggest that conditionality will be unnecessary; (iii) pilots in other parts o f Afr ica (Zambia, Malawi, South Africa) have shown good results with unconditional cash transfers (in terms o f reduction in hunger, increased dietary diversity, number o f meals and chi ld height); and (iv) an important objective o f this pi lot i s to develop an efficient mechanism that i s capable o f reaching households affected by acute emergencies. Although conditionality will not be used within this project several positive externalities are expected as a result o f the strong link between the cash transfer component and the community nutrition program, which
Gassmann F, C. Behrendt. Cash benefits in low-income countries: Simulating the effects on poverty reduction for Senegal and Tanzania. Issues in Social Protection. Discussion Paper #15. ILO, Geneva, 2006. ‘I Conditional Cash Transfers: Reducing Present and Future Poverty. World Bank, Washington DC, 2009. l2 Samson M, C. Cherrier. Feasibility study for a social cash transferprogramme as a lead instrument in child-centered social protection in Senegal. Economic Policy Research Institute, Cape Town, 2009.
I O
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provides behavior change communication focusing on actions critical to the maintenance o f good maternal and chi ld nutrition. These externalities will be monitored (see Annex 1).
45. Communication strategy: A well-developed communication strategy implemented at the national, regional, local, and community levels wil l be crucial for the success o f the cash transfer project. The strategy will include two, components: (i) information-sharing about project processes and parameters for key stakeholders and beneficiaries (ii) awareness-raising among the beneficiary population about expected benefits.
46. Learning by doing: O n the basis o f close monitoring and evaluation, lessons learned will be used to adapt project design features such as the transfer delivery mechanism, community-level targeting, beneficiary identification, designation o f proxy for transfer pick-up, size o f transfer, transfer supplement to cover transport cost, duration o f transfer, conditionalities and communication strategy.
47. Financial and disbursement arrangements: The C L M i s responsible for financial management and preparing audits o f accounts. Records are kept for al l expenditures following generally accepted accounting principles. The annual financial statements prepared by the C L M are audited annually, fol lowing international auditing standards, by independent auditors acceptable to IDA. The C L M prepares Interim Un- Audited Financial Reports (IFR) and annual audited financial statements for i t s activities under the project. The Recipient wil l open two designated accounts in which the grant and the credit wil l be disbursed. The project costs are US$18 mi l l ion (see Table 1). The C L M will also identify the financial institution deemed satisfactory to IDA that wil l be in charge o f transferring cash to the beneficiaries.
Table 1: Budget allocation by component by calendar year
Component
US$ million
2009 2010 201 1 Total YO 1. Community-based nutrition 2.4 4.2 3.1 9.7 54
2. Multi-sectoral support 0.5 0.6 0.2 1.3 7
3. Implementation M&E 0.3 0.2 0.2 0.7 4
4. Cash transfer 1 .o 3.7 1.6 6.3 35
Total 4.2 8.7 5.1 18.0 100
48. Procurement: The procurement wil l be handled by the C L M . I t s procurement unit i s wel l experienced in handling procurement for Bank financed operations. The expected procurements are relatively small and simple to handle, and wil l be carried out in accordance with the Wor ld Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits dated M a y 2004 and revised October 2006” and “Guidelines: Selection and Employment o f Consultants by World Bank Recipients, dated M a y 2004, revised October 2006.
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49. Supervision: Frequent (at least six-monthly) supervision missions wil l be carried out, commencing with the f i rst supervision mission after project signing. The Bank supervision team i s composed o f two technical specialists (including the TTL), a senior procurement specialist, a financial management specialist based, a senior operations specialist, a human development economist, a country economist, a lead economist, as wel l as a consultant in the specific areas o f cash transfers and community nutrition. The procurement, financial management and operations specialists are based in the field.
F. Project Risks and Mitigating Measures
Rating o f Risk Risk mitigation measures residual
Risk Description of risk Rating incorporated into program design risk
Country-level risks
Lack o f data for Lack o f up-to-date S System builds on a strong Monitoring M geographical data on poverty, food system that the PRN already has in targeting insecurity, and place. Targeting wil l use multiple
sources o f data (SMART assessments, poverty map, Household Liv ing Standard Surveys, VAM, etc.; and coordination with multiple partners wi th access to data (e.g. UNICEF, WFP, etc.). New tools and advocacy to be developed (e.g. rapid nutrition assessment).
malnutrition to determine priority areas for intervention
Project-level risks
Inefficient Errors o f inclusion M The targeting i s based on cross- L targeting and exclusion due to referenced quantitative surveys
political interference and/or subjective use o f indicators for community targeting project. Decentralization o f
validated by communities and then independently checked. Successful targeting i s a key outcome o f the
. responsibilities and participatory processes w i l l be used to actively involve community leaders, Community nutrition aides, c iv i l society organizations and health workers; independent validation o f beneficiary l is t .
Perverse Cash payment L Short duration o f cash transfer L incentives targeting families distribution (6 months) and flat
wi th young children could encourage increased fer t i l i ty fer t i l i ty
payment irrespective o f number o f children w i l l l ikely preclude increased
Limited Lack o f experience S Extensive consultations wi th M capacity1 on the part o f local decentralized savings institutions experience with payment service Decentralized savings institutions have cash delivery providers a strong presence in, and experience, systems working with target population.
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Fostering Beneficiaries will L Short duration o f cash transfer (6 L dependency come to depend on months) w i l l l ikely prevent long-term
the cash transfer dependency on outside support
repercussion o f (pick-up at local payment service identifying providers rather than public beneficiaries as poor distribution) w i l l reduce publicity o f and vulnerable beneficiaries; communication and
awareness-raising wi th financial institutions to reduce prejudice in dealing wi th poor beneficiaries
Stigmatization Possible negative M Use o f discrete distribution system L
Verification o f Risk o f fraud in M Program i s developing an identification M beneficiary beneficiary identify systems and checks with financial identity at cash pick-up institutions as well as use o f certificate
o f identity for beneficiaries without national identity cards. A key focus (outcome) o f program i s that those receiving the funds meet eligibility criteria.
Monitoring and Quality and L The system w i l l build on the already L evaluation timeliness o f project strong M&E system o f the CLM. A
new IDF Grant w i l l be submitted to further strengthen evaluation capacity and consistent monitoring o f program interventions across al l regions. A key focus i s on quickly operationalizing evaluation findings in each district.
monitoring
Overall risk rating: Moderate
Abbreviations: L =Low; M =Moderate; S = Substantial; H =High
G. Terms and Conditions of Project Financing
50. Conditions of Disbursement: i) Under Component 1 (community nutrition subprojects): related to a satisfactory first
Grant Agreement furnished to IDA for i t s approval. The MDTF resources for Component 1 will be used exclusively for the Regions Matam, Kedougou, Tambacounda, Kaolack, Kaffrine, Sedhiou and Louga. The IDA resources wil l ini t ial ly only be used for the other Regions. Only after written confirmation from the Bank that the MDTF resources for Component 1 have been fully disbursed, can IDA resources be used for the Regions init ial ly supported by the MDTF resources;
ii) Under Component 4 (cash transfers): related to the elaboration o f financial and administrative procedures specific to cash transfers and the establishment o f a Service Agreement with a local payment service provider both in form and substance satisfactory to IDA.
The fol lowing project-specific legal conditions apply:
16
Dated Covenants: iii) related to an updated Project Implementation Manual reflecting the eligibility criteria
and the implementation mechanisms o f Component 4 (Cash Transfer) in form and substance satisfactory to IDA within three months after the effectiveness date;
iv) related to the recruitment o f an external auditor under terms o f reference satisfactory to IDA within three months after the effectiveness date.
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Annex 1 : Detailed Description of Program Components
The negative nutrition and health effects caused by the food price crisis are o f particular concern for young children during the critical period when malnutrition causes irreparable damage to growth and development (physical, cognitive, and psychosocial). To reduce this risk, components 1-3 o f this project seek to protect the nutritional security o f mothers and young children by scaling up and intensifying a package o f existing community-based and sectoral nutrition and health services and activities. These three components already exist under the Government Nutr i t ion Enhancement Program (PRN), which was rated highly satisfactory by the Wor ld Bank in i t s f i rst phase (2002-2006; ICR, 2007). Component 4 seeks to directly offset the income effect o f the shock through targeted social cash transfers.
Component 1: Community-based Nutrition
This component i s the core o f the PRN. I t integrates the activities o f community-based growth monitoring and promotion with Community-based Management o f Integrated Management o f Chi ld Illness (c-IMCI) and Acute Malnutrition (CMAM). Activities include monthly monitoring o f the growth o f children under two years old with counseling for to mothers, home visits to children requiring special attention, and cooking demonstrations. The behavior change communication strategy wil l focus on infant and young chi ld feeding practices as recommended by WHO and UNICEF, disease prevention measures, recognition o f danger signs, care-seeking for sick children and proper treatment of diarrhea (with oral rehydration therapy and zinc).13 Children wil l be screened regularly to identify cases o f acute malnutrition and will facilitate community- based treatment o f acutely malnourished children.
The three primary strategies for reducing micronutrient malnutrition are dietary diversification, supplementation, and food fortification. The P R N community-level communication activities wil l disseminate messages on dietary diversification and create demand for vitamin A and iron supplements and fortified foods, particularly iodized salt. The Community nutrition aides will take part in national distribution days for vitamin A supplements and deworming medication, and refer children at risk o f vitamin A deficiency to health centers to receive a curative dose under the supervision o f health workers. The program will support the national health pol icy o n anemia prevention by encouraging women to take i ron supplements during pregnancy and two months post- partum, and receive treated bed nets for use by children and pregnant women.
Component 2: Sectoral Support for Nutrition Results
This component wil l support sectoral efforts in health and education to improve growth and nutrition, notably the minimum intake o f micronutrients which, although needed in small quantities, are essential for survival, growth and development. The global food price crisis has increased the r isk o f compromised quality o f dietary intake, notably o f
l3 UNICEF/WHO. Global Strategv for Infant and Young Child Feeding Promotion. UNICEF, New York; WHO, Geneva, 2003.
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essential micronutrients. The proposed activities include periodic distribution o f micronutrient supplements and deworming medicines, supervision o f nutrition services, and scaling up o f food fortification.
The C L M together with the Ministry o f Health and Prevention (MOHP) and the Ministry o f Education wil l review and enhance annual strategic work plans to ensure inclusion o f priority nutrition activities. This project wil l support priori ty activities that cannot currently be assured by these sectors, specifically the distribution o f micronutrient supplements and deworming medication at primary schools.
This project wil l also provide support to activities identified by the National Committee for Food Fortification (COSFAM) under the CLM. Fortification o f o i l with vitamin A and cereals with i ron i s under preparation and salt iodization, which started more than a decade ago, wil l be further enhanced. This project will support selected activities identified by COSFAM, including social marketing and quality control.
Component 3: Support to Implementation, Monitoring and Evaluation
This component includes activities that strengthen the implementation and monitoring performance o f the CLM, local governments, and line ministries. The PRN has developed an efficient monitoring and evaluation system that wil l need to be adapted to include enhanced monitoring o f the cash transfer program. This component wil l promote ownership and accountability o f stakeholders, including local government, which play an important role in the scaling-up o f the community activities (nutrition and cash transfers) o f the PRN. Activities that wil l be supported include training o f actors and stakeholders at a l l levels, coordination o f the project at national and sub-national levels, and monitoring and evaluation, including improving the various data bases for targeting.
Component 4: Child-focused social cash transfers
The cash transfer component will utilize the PRN community organization structure to identify eligible beneficiaries (mothers o f young children in vulnerable families), who wil l receive a bimonthly payment for six months. The success o f the program depends on the quality o f targeting and the efficient transfer o f cash. Many cash transfer programs run into trouble because o f overcomplicated designs. Therefore, this component adopts a learning-by-doing approach to start relatively simple and gradually improve program parameters.
Targeting mechanism:
Like many other cash transfer programs worldwide, this component will utilize a combination o f targeting mechanisms to reach intended beneficiaries. These mechanisms are categorical, geographic, and community-based targeting.
Categorical targeting will limit eligibility to mothers o f children 0-5 years o f age. This target group was selected because the greatest immediate human development risk from
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the food price crisis i s the likelihood o f negative impacts o n the health and nutritional status o f young children.
Geographical targeting i s based o n the most recent data o n rates o f poverty, malnutrition, and household food insecurity. Data on malnutrition are available v ia Standardized Monitoring and Assessment for Re l ie f and Transition (SMART) surveys conducted by the Ministry o f Health with support from UNICEF. SMART surveys have been conducted in 13 districts representing the country’s different ago-ecological zones and the data are representative at the district level. Poverty data will come from a poverty map created by a Wor ld Bank team in 2008, representative at the level o f Local Government. Currently, there is no national data available o n food insecurity, so geographical targeting wil l be conducted using a two-step process.
First, districts categorized as having “critical” levels o f malnutrition (global acute malnutrition o f 15 percent or higher, or 10 percent or higher with exacerbating factors) wil l be selected. O f the 13 districts where SMART surveys were conducted, 10 districts were identified as “critical.” These are: Bakel, Darou Mousty, Dianke Makha, Kidira, Louga, Goudiry, Goudoump, Guinguineo, Kebemer, and Matam.
Plans for the current project involve intervention in al l ten o f the “critical” districts. Because these areas represent different ago-ecological zones and therefore experience shocks differently, this wil l provide valuable lessons about the feasibility and effectiveness o f cash transfers under varying conditions.
Second, within the selected districts, communities with the highest levels o f poverty, according to data f rom the 2008 World Bank Poverty Map, will be selected and this wil l determine whether universal or community-based targeting will be used. Over the course o f the project, as the community nutrition program widens i t s national coverage, malnutrition data provided by community-level screening will also be used to prioritize geographical areas.
Community-based targeting will utilize the following criteria: 0
0
0
Presence o f children 0-5 years o f age Inadequate household food consumption (absence o f food stocks, dif f iculty meeting minimum number o f meals per day) Limited household possessions (e.g. number o f livestock, type o f house)
According to local specificities, other criteria can be added if these can be justified and objectively assessed.
The community-based targeting involves the fol lowing organizations and committees: the Local Selection Committee (LSC) organized around the Social Affairs Commission o f the Local Government and including the village chief, religious leaders, and community nutrition aides; the Community Executing Agency (CEA) which i s involved in the implementation o f the community nutrition program;
0
20
the Arrondissement-level Monitoring Committee (MC) including the “sous- prkfet ”, the health post head nurse, and representatives o f the Center for Support to Local Development (CADL), the Regional Development Agency (ARD) and the Department o f Support to Social Development ( S A D S ) .
The community-based targeting process wil l use a standardized process outlined as follows (see Figure 2 below):
Preparation phase: The C L M prepares and sends to the LSC with copy to the Governor, the “Prtfet” and the MC, a l i s t o f the estimated number o f beneficiaries per district and explains the beneficiary selection criteria. An information-sharing gathering is organized at the district level with the participation o f the representatives o f the Local Government, the “sous-prtfet ” and local development workers.
Figure 1.1 : Community-based Targeting Process
Cellule de Lutte Convey the number of beneficiaries per
district and give targeting guidance
Relay information about beneficiary
targeting criteria and Monitoring Committee selection process
(Sous-prifet, ICP, ARD,
Feedback regarding adequacy of budget
allocation and overall functioning
beneficiaries,
Submit beneficiary list for approval and
update about implementation
Verify the list o f selected
beneficiaries
Beneficiary identzjkation: The M C meets with the LSC to share information about the targeting process and selection criteria. The Local Selection Committee then identifies eligible beneficiaries in the most vulnerable households based o n the targeting criteria listed above. The l i s t o f potential beneficiaries i s submitted to the C E A for verification.
Verzjkation of beneficiary list: The C E A conducts a rapid assessment (with questions reflecting the criteria for beneficiary se1,ection) in a sample o f selected households. The
21
results are reported back to the Local Selection Committee and in case o f discrepancies, the selection process is repeated.
Approval of beneficiary list: The LSC approves the beneficiary list and sends i t to the “sous-prkfet” who, along with the M C , authorizes the final l i s t and sends it to the CLM.
Cash Transferring Mechanism
Transfer recipient: The designated beneficiary is the mother o f a chi ld 0-5 years. This decision reflects considerable evidence that resources received by women contribute more to children’s wellbeing in terms o f food consumption, health, nutrition, and education outcomes than resources received by men.
Transferfrequency: Transfers wil l be provided on a bimonthly basis. This frequency was selected because it will provide beneficiaries with cash often enough to affect short-term consumption, while minimizing the transaction costs associated with picking up the transfer (cost o f transportation and opportunity costs) and monitoring payment.
Duration: As an emergency response to the current crisis, the init ial duration o f the transfer was set at six months in each community, with the option to extend to a maximum o f twelve months. This length o f time has been shown to have impacts on food consumption (e.g. in Malawi) and therefore should prevent the deterioration o f the nutritional status o f the children. This duration i s also deemed short enough so as not to create dependency.
Transfer amount: The generosity o f cash transfers is always a complex matter since the benefits should balance adequacy, affordability, and acceptability. l4 Recent simulations for Senegal show that a transfer size o f approximately 35 percent o f the adult poverty l ine per school-age chi ld would reduce headcount overty by 30 percent (i.e., six percentage points) and the poverty gap by 40 percent.”A recent comprehensive review o f cash transfer programs indicates that successful programs provide 10 to 30 percent o f pre- transfer household expenditure or consumption, but also highlights variation across countries and the importance o f underlying objectives, duration, targeting, and other parameters. l6>l7 Using results f rom the 2004 Enqugte Senegalaise Aupres des Mknages ( E S A M 11) for household and per capita expenditures for the bottom quintile, and accounting inter alia for inflation and household size, the transfer value has been tentatively set at FCFA 7000 (US$14; equal to 14% o f the average food basket for a household composed o f four adults) per month per mother o f at least one chi ld under five, regardless o f the number o f children in the household.
l4 Grosh M., C. del Ninno, E. Tesliuc, A. Ouerghi. For Protection and Promotion: The Design and Implementation of Efective Safety Nets. World Bank, Washington DC, 2008.
Gassmann F, C. Behrendt. Cash benefits in low-income countries: Simulating the efects on poverty reduction for Senegal and Tanzania. Issues in Social Protection. Discussion Paper #15. ILO, Geneva, 2006. l6 Conditional Cash Transfers: Reducing Present and Future Poverty. World Bank, Washington DC, 2009.
Samson M, C. Cherrier. Feasibility study for a social cash transfer programme as a lead instrument in child-centered social protection in Senegal. Economic Policy Research Institute, Cape Town, 2009.
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Delivey mechanism: The C L M wil l identify in each zone the outfit that will be in charge of delivering the cash to the beneficiary, e.g., local payment service providers such as local banks and the post office. Once the l i s t o f beneficiaries i s compiled the C E A calculates the amount o f cash required which i s validated by the District-level Monitoring Committee. The C E A then prepares a request for funds based o n the list o f beneficiaries by Local Government to be sent to the CLM. The C L M transfers the funds into the account o f the selected cash dispensing outfit together with the list o f beneficiaries. Beneficiaries will be allowed a window o f 15 days to pick up their bimonthly cash transfer at the designated pay-point. Payments not picked.up wil l be lost.
Verijkation of the benepcia y at the cash pay-point: Cash wil l be provided only to the specified beneficiary (mother o f chi ld 0-5 years). The identity o f the recipient wil l be verified by her national identity card and finger prints.
Conditionality: The transfer wil l be unconditional for the fol lowing reasons: (i) the emphasis on developing an efficient targeting mechanism ensures that only the poorest and most vulnerable mothers with young children at risk o f malnutrition wil l be reached through the cash transfer component, thereby substantially reducing the chances o f improper use o f the cash amounts received; (ii) the high coverage o f the community- based nutrition program under the PRN, the high beneficiary participation, and the effective communication campaign strategy suggest that conditionality wil l be unnecessary; (iii) pilots in other parts o f Afr ica (Zambia, Malawi, South Africa) have shown good results with unconditional cash transfers (in terms o f increased dietary diversity, increased number o f meals, reduction in hunger and increased chi ld height); and (iv) an important objective o f this pi lot i s to develop an efficient mechanism that is capable o f reaching households affected by acute emergencies. Although conditionality wil l not be used within this project several positive externalities are expected as a result o f the strong link between the cash transfer component and the community nutrition program, which provides behavior change communication focusing on actions critical to the maintenance o f good maternal and chi ld nutrition. The fol lowing externalities wil l be monitored:
Improvements in health and nutrition indicators (use o f prenatal services,
0 Birth registration immunizations, and consumption o f iodized salt); and
Communication strategy: A well-developed communication strategy implemented at the national, regional, local, and community levels wil l be crucial for the success o f the cash transfer project. The strategy wil l include two components: (i) information-sharing about project processes and parameters for key stakeholders and beneficiaries (ii) awareness- raising among the beneficiary population about expected benefits. Table 1.1 summarizes communication actions planned over the project duration to maximize impact.
The information-sharing component will provide information about the processes and functioning o f the cash transfer project in order to establish a clear understanding among participating actors and to clarify roles and responsibilities o f each stakeholder from the
23
local to the national level. This component will also include the communication o f project objectives and activities (including targeting criteria, payment mechanism, duration, etc.) to the beneficiary population.
Orientation meeting with target communities
Table 1.1: Communication plan
Community
Dbj ective
W O R M ATION- SHARING
AWARENESS - RAISING
Action I Audience I Responsible
National Level
1 0 Line ministries I e Association o f Elected Local
Development Partners (WB, BEN/CLM Orientation meeting
at national level Representatives
I UNICEF, WFP, MI, NGoS) I Regional -level
Orientation meeting with regional-level authorities
Orientation meeting with Monitoring Committee (at the level o f Arrondissement)
Local-level
0 Governors Regional Development
0 Heads o f decentralized Agency (ARD)
services
BER
~~
e Center for Support to Local Development (CADL) Community Executing Agency (CEA)
e Health Post Head Nurse (ICP) e Department o f Support to
Social Development ( S A D S )
Sous-prefet
I 0 Elected local representatives I e Community and religious
e Community-based President o f Rural Municipality
Orientation meeting with Local Selection Committee
leaders
organizations (women and I youth)
Communitv-level
Local Selection Committee
Communitv-level
Beneficiaries Meetings, interviews and home visits
Community (nutrition) aides
The awareness-raising component will involve communicating to beneficiaries the importance o f this type o f intervention as wel l as the expected secondary outcomes in
24
terms o f improved nutritional status o f women and children under-five. Communication messages will emphasize immunization, prenatal visits, use o f iodized salt, and birth registration. The existing PRN outreach system and support o f the C E A and Community nutrition aides, which provide solid experience with communication campaigns, wil l facilitate the implementation o f these communications approaches. The communication campaign for the cash transfer component wil l be implemented at three different levels: national-, district- and community-level.
Learning-by-doing
Lessons learned during the first phase o f the cash transfer will be used to adapt the project design for h t u r e implementation. The fol lowing topics will be explored:
Transfer delivery mechanism: Alternative delivery mechanisms will be considered. Other mechanisms could include centralized payment in the village, and payment v ia cell phones or smartcards. Program experience wil l also help determine whether i t is more efficient to usepa single delivery system countrywide or to vary the mechanism depending on the particularities o f the region.
Community-level targeting: The balance between targeting and coverage wil l be evaluated with help from the C E A by reviewing the targeting exclusion error (percentage o f the target population meeting eligibility requirements, but not selected for the cash transfer). This may make the case for expanding project coverage.
BeneJiciary identzjkation: Experience with the identification o f beneficiaries at pay-points wil l help determine whether the combination o f identity cards and beneficiary signatures is sufficient or whether i t is important to introduce biometric identity cards and institutionalize a single identification process across regions.
Designation of proxy for transfer pick-up: Based on the experience o f beneficiary access to pay-points and the identification o f beneficiaries by local payment service providers, an institutionalized process o f proxy designation for beneficiaries who are unable to pick up the cash due to disability or illness will be considered.
Size of transfer; According to beneficiary experiences and prevailing economic conditions, the adequacy o f the cash transfer size and the need to adjust the transfer to reflect inflation will be examined.
Transfer supplement to cover transport costs: Cash uptake rates and interviews with beneficiaries will help determine whether the provision o f a supplementary payment to cover the cost o f transport for beneficiaries to reach the cash pick-up point would increase project impact.
25
Duration of transfer: In light o f the impacts noted after a six-month period o f implementation, the possibility o f extending the duration o f the project in certain areas that demonstrate continued need will be considered.
Conditionalities: The program starts on the basis o f very soft conditions (e.g., communication o n objectives and monitoring o f key indicators). Close monitoring and evaluation o f the cash transfer component will inform the C L M on the need for additional measures to enhance effectiveness. Such measures may refer to closer supervision, enhanced communication and training, improved targeting and verification as wel l as the possibility o f introducing (non-punitive) conditionalities for activities for which utilization rates are l o w and supply and quality are sufficient (e.g. prenatal care, immunizations, utilization o f iodized salt, vitamin A supplementation, birth registration, and assisted delivery).
0 Communication strategy: Lessons learned about the effectiveness o f different communications channels and messages wil l be incorporated into future communications strategies.
26
Annex 2: Results Framework and Monitoring
Table 2.1: Results Framework
1. PDO
Reduce the risk o f nutrit ion insecurity o f vulnerable populations, in particular children under five in poor rural and urban areas, by scaling up the Government Nutr i t ion Enhancement Program and providing cash transfers to vulnerable mothers o f children under five
2. Intermediate Outcomes Component I : Community nutrition program
Adequate case management o f acute malnutrition without complications among targeted children
Adequate growth among targeted children
Improved access to information o n nutrit ion and health among targeted mothers
Improved micronutrient status among targeted children aged 6-59 months Component 2: Sectoral support for nutrition results
Sectoral ownership and accountability for nutrit ion results
Project Outcome Indicators
Target population (children under 5) reached by the community nutrit ion program (%)
Mothers targeted providing exclusive breastfeeding (%)
Number o f beneficiaries (individuals) o f cash transfer program
Selected beneficiaries who receive a l l intended cash transfers (%)
Intermediate Outcome Indicators
Children 6-59 months screened for acute malnutrition (%)
Children 0-24 months showing adequate weight gain (%)
Pregnant women making at least four prenatal care visi ts (%)
Mothers o f target children who participate in monthly information and education sessions (“A)
Targeted children 6-59 months receiving vitamin A supplementation (%)
Targeted children in primary education receiving weekly micronutrient supplements (%)
Targeted children in primary education receiving deworming medication twice in a one-year
Use of Project Outcome Information Rapid mobilization o f targeted assistance to the most vulnerable groups (especially children) in times o f crisis.
Use o f Immediate Outcome Indicators To determine if the project adequately increases coverage and maintains high service quality
To demonstrate progress towards protecting and promoting chi ld growth.
To monitor adherence to vitamin A supplementation targets
To demonstrate active and results-oriented sectoral commitment to nutrit ion
27
Component 3: Support to Implementation, Monitoring and Evaluation of the National Nutrition Policy
Full awareness and effective monitoring o f nutrition outcomes by all levels o f government Component 4: Child- focused cash transfer
Efficient child-focused social cash transfer scheme established
period (%)
Quantity o f salt adequately iodized by small producers (tons)
Quantity o f adequately fortified o i l with vitamin A by oi l industry (litres) Local governments incorporating nutrition objectives and interventions in Local Development Plans (%)
Selected beneficiaries who do not meet eligibility criteria (inclusion error) (%)
Transfers made by local payment service providers (%)
Development and adoption by the government o f an efficient child- focused social cash transfer scheme as part o f the NSPS
To demonstrate the long-term institutional and financial sustainability o f the PRN
To demonstrate targeting efficiency
To demonstrate the feasibility and reliability o f the cash transfer protocol
28
i$
s u a w
m 4 s 3 z \o
W b rs g W +
g r4 +
s 2 +
s 2
r 8 0 c,
.I '5( e .I
B s E
0 Y
L 8 c)
3 E
i $ $ u u
s s i$ u 2 u a w a w s s
g 00
m U s 4 0
E \o
E rs
0 M
Annex 3: Summary of Estimated Project Costs
Table 3.1 : Budget allocation by component by calendar year
Component US$ million
2009 2010 201 1 Total YO 1. Community-based nutrition 2.4 4.2 3.1 9.7 54
2. Sectoral support 0.5 0.5 0.3 1.3 7
3. Implementation M&E 0.3 0.2 0.2 0.7 4
4. Cash transfer 1 .o 3.7 1.6 6.3 35 _ _ _ _ ~ ____ ~~ ~ ____ ~ ~
Total 4.2 8.7 5.1 18.0 100
Table 3.2: Budget allocation by component by funding source
Component
US$ million MDTF IDA Total
1. Community-based nutrition 3.1 6.6 9.7
2. Sectoral support 1.3 1.3
3. Implementation M&E 0.7 0.7
4. Cash transfer 4.9 1.4 6.3
Total 8.0 10.0 18.0
31
Annex 4: Financial Management and Disbursement Arrangements
Introduction
The Bank policy requires that the Recipient put in place adequate financial management arrangements including budgeting, accounting, internal controls, h n d s flow, financial reporting and auditing arrangements. These arrangements need to be in place before project implementation begins, and should be maintained during project implementation. According to the Bank Operation Policy OP 8.00, Emergency Operations, as is the case here, are processed under accelerated, consolidated, and simplified procedures and are subject to streamlined ex-ante requirements, including in fiduciary and safeguards areas.
The Child-Focused Social Cash Transfer and Nutri t ion Security Project wil l be implemented by the CLM, which adequately manages the ongoing Bank-financed nutrition project (PRN2). Under the PRN2, a financial management assessment (FMA) was carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Board on November, 2005. The objective o f the assessment was to determine whether the implementing entity in place has acceptable financial management arrangements, which wil l ensure that: (i) h d s are used only for the intended purposes in an efficient and economical way; (ii) periodic financial reports are prepared accurately, reliably and timely; and (iii) the entity’s assets are adequately safeguarded.
The conclusion o f this assessment i s that, the fiduciary arrangements o f the C L M meet the Bank’s minimum requirements under i t s operation pol icy OPh3P10.02. The capacity i s adequate to easily accommodate the additional responsibilities arising from the implementation o f the proposed project. However, in the context o f this emergency operation, specific actions need to be taken to strengthen the projects’ internal control system in order to better meet the development objective assigned to the project.
The overall Financial Management risk rating for this project i s moderate subject to the C L M effectively implementing the mitigation measures associated with the inherent substantial risk o f this emergency operation. Particular attention wil l be paid during supervision to the f low o f hnds to beneficiaries at community level in order to ensure that cash transfers effectively reach the intended beneficiaries.
Executive summary
The Country Financial Accountability Assessment (CFAA) o f Senegal was conducted in 2003. The overall r isk rating o f the public financial management (PFM) system was high. Since that exercise, the Government has created an Executive Secretariat under the MEF to monitor the implementation o f the C F A A action plan. Fol lowing the above mentioned C F A A review, a PEFA exercise has been undertaken in 2007. The report concluded that although some improvements in PFM reform have been put in place, significant progress is s t i l l needed in internal and external controls o f budget execution and state-owned enterprises. K e y risks and challenges remain the same and require improvement in area
32
such as: (i) effectiveness o f the internal audit system by the Supreme Audit Institution (SAI, Cour des Comptes); (ii) reliability o f data for monitoring the stock o f arrears; and (iii) addressing the backlog o f State accounts.
The government has given priori ty to improvements in these areas as well as local governance finance reforms. A Multi-Donor Trust Fund (MDTF) was set up to support the implementation o f reforms. A new Procurement Code has been adopted and enacted in January 2008.
The Government o f Senegal i s committed to conducting the PFM reform through the creation o f a specific body, i.e., the PFM Reform Steering Committee (under the Ministry of Finance) with representation by al l Governmental departments responsible for specific reforms. The role o f the Steering Committee i s to: (i) coordinate the reforms to be undertaken; (ii) harmonize Government actions; (iii) monitor the implementation o f the action plan; and (iv) hold different actors accountable for progress.
In dialogue with external partners, the Government will implement the action plan resulting from the last PEFA framework to track progress in strengthening public financial management and identify areas where country fiduciary systems are not yet in line with international standards.
The use o f the country system, notably the Treasury Department and the SA1 Cour des Comptes, will be implemented progressively. In the meantime, project implementation wil l be coordinated by the C L M which was set up to oversee the Government Nutr i t ion Enhancement Program (PRN).
Summary Project Description
The project development objective o f the proposed Child-Focused Social Cash Transfer and Nutr i t ion Security Project i s to reduce the risk o f nutrition insecurity o f vulnerable populations, in particular children under five in poor rural and urban areas, by scaling up the Government Nutr i t ion Enhancement Program and providing cash transfers to vulnerable mothers o f children under five. This wil l be achieved through the scaling-up and intensification o f the existing components o f the PRN and the introduction o f a new component composed o f child-focused social cash transfers. The proposed interventions wil l be financed by a US$8 mi l l ion grant from the Food Price Crisis Response Program’s Multi-Donor Trust Fund (MDTF) and a reallocation o f US$10 mi l l ion cancelled IDA resources. The financing instrument i s a new granthredit facility for the proposed Child- Focused Social Cash Transfer and Nutri t ion Security Project. The project will comprise four components set as follow:
Risk Assessment and Mitigation
The objectives o f the project’s financial management system are to: (i) ensure that funds are used only for their intended purposes in an efficient and economical way; and (ii) enable the preparation o f accurate and timely financial reports from community level to
33
central level and vice versa. In the context o f this program which includes cash transfers to beneficiaries, misappropriation o f funds by non beneficiaries i s a key r isk that needs to be mitigated appropriately. The table below shows the results o f the risk assessment from the Risk Rating Summary. This identifies the key risks project management may face in achieving project objectives and provides management should address these risks.
Table 4.1: Financial Management Risk assessment
Risk
Inherent Risk
Country Level
Entity Level
Project Leve l
Risk Rating
H
H
S
S
Risk Mitigating Measures incorporated into the Project Design
The CFAA and PEFA action p lan is under implementation and the government has created an Executive Secretariat to fo l low up.
Whi le legal and institutional framework is in place, implementation may be hamper-red by pol i t ical interference o n wh ich attention wil l be paid.
CDD activities and cash transfer operations are r isky f r o m the fiduciary perspective given the nature o f activities involved. However, implementing entity has experience with Bank financed project
Residual Risk
S
S
M
M
a basis for determining how
Conditions of Negotiations,
Board or Effectiveness (Yes or No)
No
No
No
Remarks
The MDTF to support PFM reform is currently administrated by the Bank.
~ ~
FM arrangement o f thls emergency operation will re ly o n the existing CLM administrative and financial procedures. Attention wil l b e paid to reporting, f l o w o f fund and auditing process that wil l need to be judged satisfactory to the Bank. Mu l t i p le layers o f verif ication are introduced to make sure that only selected beneficiaries received the cash and unintended usage will have to be reimbursed.
34
Control Risk M I M Budgeting M Annual work plans w i l l
be prepared, approved by the steering committee and sub- mitted to the Bank by Dec 15 o f each year.
M No
Accounting M ~ ~
Accounting function i s led by qualified financial staff wi th relevant experience in accountancy and audit.
~
L N o Project staff w i l l be trained in knowledge updating perspective on Bank FM, disbursement and procurement procedures.
Internal Control
M C L M has an Internal Audit function arrangement in place. A Financial and the Administrative Manual i s in place. However, documentation o f transaction at community level will need to be strengthened.
M No The Bank will pay attention to the internal control system during supervision mission, in particular the process o f identification o f beneficiaries and the process o f transfer o f cash to relevant beneficiaries at community level.
S Transfer o f cash to non beneficiaries i s a key risk in th is operation. Thus, two separate Designated Accounts w i l l be opened by DDUMEF (Direction de la dette et de l’investissement) for the purpose o f the Project. A financial payment service provider acceptable to the Bank w i l l be selected to handle wi th the cash transfer operation at community level.
M N o Attention w i l l be paid to the internal control process put in place by the payment service provider to process the cash transfer at community level.
Funds Flow
Financial Reporting
M L No The Bank will assist the C L M in improving the format o f the quarterly reports (IFR).
A consolidated reporting package w i l l be prepared at C L M level (including specific statement relevant to the cash transfer operation).
35
An external Auditor wi th experience and qualifications satisfactory to the Bank will be recruited. The TOR o f the Auditor w i l l include specific assignment relevant to the Cash transfer operation at community level.
In view o f the general country financial management issues and the issues peculiar to the CLM, the overall financial management residual r isk rating for the Rapid Response Child-Focused Social Cash Transfer and Nutr i t ion Security Project i s Moderate.
Strengths
The financial management capacity built in the C L M under the ongoing PRN will be consolidated and used to manage the Financial Management System o f the project.
Table 4.2 Weakness and FM Action Plan
Weaknesses Action Responsible Completion Date
1. Information system not tailored to host the new project
2. Specific Administrative and Financial procedures o f the CFSCTFNSP
3. Absence o f an External Auditor
Update existing software with CLM By effectiveness adequate analytical code to host the project, including financial and M&E modules
Update the existing CLM First quarter o f Administrative and Financial effectiveness Procedures Manual to factor specific procedures relevant to the project
Recruitment o f an External CLWCAP First quarter o f Auditor with experience and effectiveness qualifications satisfactory to the Bank
Implementing Entity
The Financial Manager o f the C L M wil l oversee the Financial Management aspects o f the project including the consolidation o f financial statements for project activities, providing quarterly Interim Financial Reports (IFR), monitoring financial transactions on the project’s accounts through the Direction de la Dette et de Z’lnvestissement (DDI) and making the necessary arrangements for the annual financial audit. DDI i s the entity o f MEF in charge o f Designated Account management. All requests for funds under the Project wil l be validated by the DDI/MEF.
36
Budgeting
The Financial and Administrative Manual wil l be updated to describe the budgeting process. The BEN will finalize the Annual Action Plan and Budget, which wil l be submitted to the C L M for approval. Also, the no objection o f the Bank will be required before implementing the annual action plan.
Accounting
The current accounting standards in use in Senegal for on-going Bank-financed project wil l be applicable. SYSCOHADA i s the assigned accounting system in West African Francophone countries. The Credit wil l be accounted for by the project on a cash or accrual basis. This will be documented with appropriate records and procedures to track commitments and to safeguard assets. Accounting records wil l be maintained in local currency. The Chart o f accounts wil l facilitate the preparation o f relevant quarterly and financial statement including information on the total project expenditures, the financial contribution from IDA and other Donors and expenditure by component/category. Annual Financial statements wil l be prepared in accordance with International Accounting Standards issued by the International Federation o f Accountants (IFAC).
An update o f the Information System wil l allow production o f al l accounting and financial data required : Financial Statement, Bank reconciliation statements, al l the books o f accounts and a l l financial reports including the Interim Un-audited Financial Reports (IFR). Accounting procedures will be documented in the Financial and Accounting manual.
Internal Control and Internal Auditing
The C L M has an Internal Audit function arrangement and a Financial and the Administrative Manual in place. However, documentation o f transaction at community level will need to be strengthened. The Bank will pay attention to the internal control system during supervision mission, in particular the process o f identification o f beneficiaries and the process o f cash transfers to relevant beneficiaries at community level. At the national level, the DDI/MEF controls ex ante al l withdrawal applications before sending them to the Bank.
Reporting and Monitoring
The Recipient shall prepare and furnish to the Association not later than 45 days after the end o f each calendar quarter, un-audited financial reports (IFR) for the Project covering the quarter, in form and substance satisfactory to the Association. The f i rs t IFR shall be furnished to the Association not later than 45 days after the end o f the f i rs t calendar quarter after the Effective Date, and shall cover the period from the incurrence o f the f i rs t expenditure under the Project through the end o f such first calendar quarter; thereafter, each IFR shall be furnished to the Bank not later than 45 days after each subsequent calendar quarter, and shall cover such calendar quarter.
37
Funds Flow and Disbursement Arrangements
Disbursement Methods: The disbursement method under the Child-Focused Social Cash Transfer and Nutr i t ion Security Project will rely on the existing arrangement under the ongoing Nutr i t ion Enhancement Project. The Project wil l use the report-based disbursement method.
Designated Account: The designated account wil l be managed by the BENKLM under the supervision o f the DDUMEF. The designated accounts will be held in XOF and located in a Commercial Bank acceptable to IDA. The Designated Accounts' proposed ceiling wil l be CFAF 1.0 bi l l ion and will be indicated in the Disbursement Letter (DL) once it has been agreed upon during negotiations. (See f low o f fund arrangement in appendix 1)
Counterpart Funding: The Government counterpart finding may be mobilized in form o f fiscal revenue (contribution to the VAT).
Disbursements by category: The table below sets out the expenditure categories and percentages to be financed out o f the Credit proceeds.
Table 4.3: Disbursement by category
Percentage of Amount o f the Amount o f the expenditures to IDA Credit MDTF Grant be financed allocated in allocated in (inclusive o f
Category mil l ion US$' mil l ion U S $ taxes)
(1) Sub-project local government 5.2 3.1 100
4.1 100
(2) Equipment, pharmaceutical products, consultant services, including the fees due to the Payment Service Providers pursuant to the terms o f the relevant Service Agreement (but excluding Cash Transfers), audits and Training
(3) Operating Costs 0.7 100
(4) Cash Transfer 4.9 100
Total Amount 10.0 8.0
Amount expressed in SDR in the Financing Agreement 1
Supervision Plan: The Project will be subject to periodic supervision missions. Given the Moderate FM risk rating, supervision will be intense the f i rst year o f the project and at least one supervision mission per year for the rest o f the project l i fe cycle. Supervision
38
activities will include review o f quarterly IFR; review o f annual audited financial statements as wel l as timely follow-up o f issues arising; transaction review with focus on Cash transfer operation at community level (this wil l need a field visi t on a random and sample basis); participation in project supervision missions as appropriate; and updating the FM rating in the Implementation Status Report (ISR).
IDA
Figure 4.1: Flow of Fund arrangement
CLM _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ - - - _ -
Designated Account (M DTF)
39
Designated Account (IDA)
L J L J
I I , Community Executing Agency
Local _ _ _ _ _ _ +
I .
Local payment b SeNice provider
I '
I 1 f .- .- .- .- .- . - .-*I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - - J
'
Cash transfer r - Other Beneficiaries
' Beneficiaries & Suppliers
Annex 5: Procurement Arrangements
A. General
National procurement system and ongoing reforms
Senegal adopted a Public Procurement Law in June 2006 and Public Procurement Code in April 2007 (decree No 2007-545, date April 25th, 2007), as part o f the action plan o f the Country Procurement Assessment Review (CPAR) for Senegal carried out in FY03. The legal framework i s in line with the international standard and the West Afr ican Monetary Union's (WAEMU) guidelines. The independent regulatory body (ARMP) responsible for pol icy and handling complaints f rom bidders and the Procurement Department (DCMP) responsible for controls o f procurements transactions are fully operational and appropriately deal with their respective missions. Controls within the contracting authorities (CA) are effective through their respective Procurement Commission and Procurement Units. A system (SIGMAP) for collecting, disseminating, managing procurement information and monitoring procurement statistics has been developed and i s operational at the level o f the DCMP. The Government intends to spread the SIGMAP over the contracting authorities to improve efficiency and monitoring o f procurement transactions. K e y decisions with regards to sanctions, contract awards, sole source justifications and complaints are posted o n the Public Procurement Website (m.marchespublics.sn). National Standard Bidding documents (NSBD) have been drafted and are being used by the CA. However there is a need to ensure regular external and internal procurement compliance reviews.
In general, Senegal's procurement laws and regulations do not conflict with IDA guidelines. However provisions related to the restriction o f the eligibility o f bidders to those coming from WAEMU countries only wil l not be applied. No special exceptions, permits, or licenses need to be specified in Credit documents since IDA procedures take precedence other those laws and regulations.
Use of Bank Guidelines
Procurement for the proposed project wil l be carried out in accordance with the Wor ld Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits", dated M a y 2004, revised in October 2006, and "Guidelines: Selection and Employment o f Consultants by World Bank Recipients", dated M a y 2004, revised in October 2006, and provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Credit, or any different procurement or consultant selection methods, need for pre-qualification, estimated costs, prior review requirements, and time frame are to be agreed upon between the Recipient and the Bank in the Procurement Plan. The Procurement Plan will be prepared to cover at least the init ial 18 months o f the project implementation and will be updated at least annually or as required to reflect actual project implementation needs and improvements in institutional capacity. The procurement process and the Standard Bidding Documents (SBD) to be used by the executive agencies wil l be well defined in the Project Implementation Manual (PIM), which will include a Procurement Module.
40
Advertising
A General Procurement Notice (GPN) has been prepared and will be published in the United Nations Development Business (UNDB), in the Development Gateway (dgMarket), and in at least one national newspaper after the project i s negotiated with the Recipient or after i t i s approved by the Bank’s Executive Board. The GPN will show al l International Competitive Bidding for works, goods, and contracts and al l consulting services involving international f i rms. I t will also include al l other contracts that are identified before the preparation o f the procurement plan. Specific Procurement Notices for a l l goods and works to be procured under I C B and Expressions o f Interest for al l consulting services to cost the equivalent o f US$200,000 and above will be published in UNDB, dgMarket, and in national press with wide circulation.
B. Procurement methods
Procurement o f Works: This project i s not l ikely to include works contracts as the focus i s on health and nutrition education and related services. However, at appraisal, the project teams o n both the Recipient’s and the Bank’s side have agreed to include procurement o f works just in case the need arises. Such works may include emergency repairs in case o f emergency events and small works in the context o f community sub- projects under component 1. Works procured under this project, if any, wil l be procured using the Bank’s SBD for al l I C B and National SBD agreed to or satisfactory to the Bank. Those works are l ikely to be simple c iv i l works o f small value, and they can be procured by shopping in accordance with paragraph 3.5 o f the procurement Guidelines.
Procurement o f Goods: Goods procured under this project wil l include weighing scales, pharmaceutical products, and motorbikes for the C E A under component 1 and cars (for supervision), office material, computers, and fue l under component 1, 2, 3 and 4 o f the project. Weighing scales and pharmaceutical products may be procured from the United Nations Agencies (ie., UNICEF warehouse) or the National Pharmaceutical Warehouse (PNA). The procedures to be used by the PNA would be consistent with the Legal Agreement and the Procurement Plan. Procurement will be done using the Bank’s SBD for al l I C B and National SBD agreed to or satisfactory to the Bank. For readily available off-the-shelf goods or standard specification commodities o f small value, shopping may be used in accordance with paragraph 3.5 o f the procurement Guidelines.
Procurement o f Non-consultina Services: Non-consulting services to be financed under the Credit wil l include mainly communication campaign under component 3 and 4 o f the project. Those services are likely to be o f small values, and as such, they may be procured by shopping in accordance with paragraph 3.5 o f the procurement Guidelines.
Selection and Employment o f Consultants: The consultant services include studies; support to project implementation; audits; financial management support; capacity building; training o f communities, training o f service providers (NGOs, individual consultants, local administrations and other public administrations) to provide technical advice, nutrition monitoring, evaluation and monitoring and implementation o f an I E C
41
program. The implementation o f component 1 at community level i s mainly delegated to NGOs already selected on a competitive basis in the context o f the existing program. Periodic technical and financial performance evaluation o f NGOs will be conducted to ensure compliance with contractual agreements.
For small assignments (less than US$75,000 and to be determined o n a case by case basis), the selection based on the consultants’ qualifications method may be used in accordance with paragraphs 3.7 and 3.8 o f the Consultants Guidelines.
Short l i s ts o f consultants for services estimated to cost less than $200,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines, provided that a sufficient number o f qualified firms are available at competitive costs. If, however, foreign f i r m s have expressed an interest, they wil l not be excluded from consideration. The Standard Request for Proposals (FWP), as developed by the World Bank, will be used for requesting proposals and for selection and appointment o f consulting f i rms. Simplified contracts may be used for short-term assignments.
Operating costs: The Credit will finance part o f the operating costs o f the BEN o f the C L M and remuneration o f consultants for implementing the program. An important part o f the hnds will be used for supervision by the CLM. Operating costs will be procured using the executive agency’s administrative procedures that were reviewed and found acceptable to the IDA.
Sub-proi ects for communitv-based nutrition: the project will finance under component 1 sub-projects that will benefit communities and are implemented by CEAs under the responsibility o f Local Governments. The total budget for sub-projects i s US$8.6 million. Those sub-projects are granted through financing conventions with the responsible and implementing institutions, and their cost may vary from less than US$lO,OOO to about US$50,000 per year for the duration o f the project. A small part o f the grants may be used to procure small items: in this regard, the procedures described in the Project Implementation Manual / Project operational Manual approved by the Bank in December 2006, wil l be used.
Special requirements for this project
Use o f the national procurement code for N C B and shopping procedures: National Competitive Bidding (NCB) advertised locally wil l be carried out in accordance with Senegal’s procurement laws and regulations, acceptable to IDA provided that they assure economy, efficiency, transparency, and broad consistency with key objectives o f the Bank Guidelines. For N C B procedures, the following principles have been adhered to: (i) bids should be advertised in national newspapers with wide circulation”; (ii) any bidder i s given sufficient time to submit bids (4 weeks); (iii) bid evaluation and bidder qualifications criteria are clearly specified in the bidding documents; (iv) no preference margin i s granted to domestic manufacturers; (v) eligible f i r m s are not precluded from the competition; (vi) prior to issuing the first call for bids, a draft standard bidding
42
document i s submitted to and deemed acceptable to IDA; and, (vii) the procedures also include the publication o f the results o f evaluation and o f the award o f the contract, and provisions for bidders to protest.
With regard to shopping procedures, as stated above, this procedure should be satisfactory to the Bank. This wil l include the fol lowing requirements: (i) Firms to be Invited: the recipient exercises due diligence to satisfy i tself that the firms invited to quote are reputable, wel l established, and are suppliers o f the goods or services being purchased as part o f their normal business. In case the recipient receives unsolicited quotations, these may be accepted after carrying out a similar due diligence exercise to verify the nature and reputation o f the f i rms; (ii) Number o f f i r m s to invite: Interpretation o f shopping procedure as per the Guidelines requires the purchaser to obtain and compare at least three quotations to establish reasonableness o f price. To minimize the risk o f getting only one or two quotations, clients are advised to request more than three quotations; (iii) Form o f Requests: The purchaser requests quotations by writing with proof o f receipt and record keeping. The request includes the description and quantity o f the goods, as wel l as the required delivery time and place for the goods or services, including any installation requirements, as appropriate.
C. Assessment of the agency’s capacity to implement procurement
Procurement activities wil l be carried out by the CLM, which includes a procurement unit staffed with a Procurement Specialist. The procurement unit is well experienced in handling procurement in Bank financed operations. The expected procurement operations are relatively small and simple to handle as i s being successfblly handled with the ongoing nutrition project. The C L M i s staffed by a Coordinator, a Financial Management Specialist, an Operation and Monitoring Officer, a Procurement Specialist, a Communication Specialist, and a Public Health Nutr i t ion Specialist, and al l staff actively participated in the evaluation o f the program and felt concerned with the procurement function as key for the project implementation. The procurement specialist’s responsibilities include preparation and execution o f the procurement plan, preparation o f bidding documents or requests for proposals, monitoring o f the bidding process, assisting the team in the evaluation process, and contract award and follow-up contract management and reporting.
The assessment o f the capacity o f the Implementing Agency to implement procurement actions for the project has been done o n February llth, 2009, by Cheick A. T. Traore, Senior Procurement Specialist in the Dakar Country Office. The assessment, which i s an update o f the previous one done on March 2006 for the 2”d phase o f the nutrition enhancement project, reviewed the organizational structure for implementing the project and the interaction between the project’s staff responsible for procurement and the Prime Minister’s office. The assessment confirmed that the Procurement Specialist has significant experience with Wor ld Bank procedures and i s comfortable in applying them, as i t can be seen through the procurement activities in the ongoing project.
43
However, some events have been identified as key issues and r i sks concerning procurement for implementation. They include the important size o f the budget allocated to sub-projects that benefit communities with the involvement o f Local Governments and CEAs in the procurement process. Meanwhile the Bank i s raising i ts prior review thresholds in procurement which means that many operations under this project are l ikely not to be prior reviewed. The corrective measures which have been agreed to with the recipient to mitigate the risks are the following: 0
0
The Procurement Officer will continue to assist and advise Local Governments and CEAs o n the procurement process; The Procurement Specialist wil l conduct frequent supervision o f procurement at community level; The Bank may conduct close and frequent procurement supervision and post reviews during the first year o f the project implementation. After one year, the Bank may assess how procurement was handled; A technical audit i s recommended to review the procurement under the project with an emphasis o n community level implementation and on the project implementation in general.
0
The overall project risk for procurement i s l o w for the procurement unit, but i s high at community level. In this context, the overall r isk i s high.
D. Procurement Plan
At appraisal, the Recipient developed a Procurement Plan for project implementation which provides the basis for the procurement methods. This plan has been agreed between the Recipient and the Project Team on March 13th, 2009, and i s available at the C L M office, and on i t s external website. I t will also be available in the project’s database and in the Bank’s external website. The procurement plan will be updated in agreement with the Project Task Team annually or as required to reflect actual project implementation needs and improvements in institutional capacity.
E. Frequency of Procurement Supervision
In addition to the prior review by the Bank, the capacity assessment o f the C L M recommended two supervision missions per year to visit the f ield to carry out post review o f procurement actions.
F. Details o f Procurement Arrangements
General
Project information: Senegal Rapid Response Child-Focused Social Cash Transfer and Nutrition Security Project
Implementing agency: Cellule de Lutte Contre l a Malnutrition.
Bank’s approval date of procurement plan: Original: March 13th, 2009; First revision scheduled in 6 months, i.e. approximately September, 1 5th, 2009
44
Date o f General Procurement Notice: immediately after negotiations
Period covered by this procurement plan: April 2009 to July 2010
Goods and Works and non-consulting services
Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Guidelines for Procurement:
Procurement Method Prior Review Threshold Comments
1.
2.
3.
4.
5.
6
7
8
9
ICB and LIB (Goods), if any
NCB (Goods)
ICB (Works), if any
NCB (Works), if any
ICB (Non-Consultant Services), i f any
N C B (Non-Consultant Services), if any
Shopping
Direct contracting
Community participation in procurement
= or >US$500,000
The first two contracts, irrespective o f their cost estimate
= or >US$5,000,000
The first two contracts, irrespective o f their cost estimate
= or >US$500,000
The first two contracts, irrespective o f the cost estimate
= or >US$50,000 and the f i rst two contract under US$50,000
All, irrespective o f the cost estimate
The f i rst two contracts, irrespective o f the cost estimate
ICB and LIB for goods will be used for US$500,000 and above
N C B for goods will be used for less than US$500,000
ICB for works will be used for US$5,000,000 and above
N C B for works will be used for less than US$5,000,000
ICB for non-consultant services will be used for US$500,000 and above
N C B for non-consultants services will be used for less than US$500,000
Shopping for works if any, goods and non-consultants services, will be used for less than or equivalent to US$50,000. If more than US$50,000, prior clearance i s needed from IDA with relevant justifications. The cost estimate will not exceed
None
us$loo,ooo.
None
Prequalification: N o t applicable,
Proposed procedures for CDD components (as per paragraph. 3.17 o f the Guidelines: Refer to the Project Implementation Manual.
45
Reference to Project Operational Manual: Approved by the Bank, December 2006
Any other special procurement arrangements: None.
40,000
Procurement Packages with Methods and Time Schedule:
Shopping N o No Post 08/0 1/10
,.
Contract (Description)
Purchase o f three cars for supervision
Purchase o f IT material
Audiovisual support
Estimated
150,000 I NCB I N o I No I Prior I 19/06/09
30,000 1 Shopping I No 1 No I Prior I 19/06/09
Selection of Consultants
Prior Review Threshold: Select ion decisions subject to Prior R e v i e w by Bank as stated in Append ix 1 to the Guidel ines Selection and E m p l o y m e n t o f Consultants:
Selection Method Pr ior Review Threshold Comments
1.
2.
3.
4.
5.
6.
Competitive Methods (Firms)
Single Source (Firms)
Individual Consultants
Single source for Individual Consultants
Contracts for elaboration manuals o f procedures, contracts for monitoring and evaluation assignments ; contracts for financial assistance if any, contract for financial audit; contracts for technical; contract for environmental and social issues Contracts awarded with communities participation if any
= or >US$200,000
All, irrespective o f the cost estimate
= or >US$lOO,OOO
All, irrespective o f the cost estimate
All, irrespective o f the cost estimate
The f irst two contracts, irrespective o f their cost estimate
None
None
None
None
These contracts are not selection methods; due to their sensitivity, they will be subject t o pr ior review
These contracts are not selection methods; due to their sensitivity, they wil l be subject t o Drior review
Short list comprising entirely of national consultants: Short l is t o f consultants for services, estimated to cost less than $ 200,000 equivalent p e r contract, may comprise ent i re ly o f national consultants in accordance with the provis ions o f paragraph 2.7 o f the Consultant Guidelines.
46
Any Other Special Selection Arrangements: None
Consultancy Assignments with Selection Methods and Time Schedule: 2 1
No.
3 4 5
1
Estimate cost
(US$)
2
Review by Selection Bank (Prior / Method Post)
3
Academic write-up o f the nutritiodcash transfer program
4 I C Post 20,000
Description of Assignment
1 220,000 1 QcBs 1 Prior Development and implementation o f audiovisual campaign
Impact evaluation cash transfer comuonent I 120,000 1 QCBS I Post
I 40,000 I I C 1 Post Beneficiary satisfaction survey on cash transfer component
I 30,000 I I C 1 Post Assessment and review o f targeting process I mechanism
I 12,000 I I C I Post Evaluation o f cash transfer communication strategy
~ I 100,000 1 QCBS 1 Post Production o f audiovisual communication materials
Techmcal and financial audit o f Local I 35,000 I Lcs Government subprojects 1 Prior
6
Expected Proposals
Submission Date
01 JunO9
15 Sept 09
12 Oct 09
15 Apr 09
29Apr09 I 16Nov09 1 01 JunO9
15 Jun 10
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Annex 6: Implementation, Monitoring, and Institutional Arrangements
The project wil l be implemented using the existing PRN institutional structure. Under this arrangement, the C L M oversees district- and community-level entities which, in turn, implement and supervise project implementation.
Implementation of community nutrition activities
The PRN scale-up process will employ two intervention models. In communities that have more than 1,000 inhabitants, the PRN will replicate i t s existing intervention model, involving monthly contact with beneficiaries for growth monitoring and promotion and behavior change counseling. This i s considered the “intensive” model. In villages with fewer than 1,000 people, where such an intensive model would not be cost-effective, Community nutrition aides wil l conduct malnutrition screenings and provide behavior change counseling on a quarterly basis. Because o f the less frequent contact inherent in this model, particular emphasis will be placed on strengthening communication campaigns in these areas and conducting rigorous monitoring and evaluation o f program communications. After completing expansion to these smaller communities, the community nutrition program o f the P R N wil l increase the intensity o f the intervention in those areas that demonstrate greater need. In 2009, the program will increase the coverage in 25 new Health Districts and 136 new Local Government areas.
Table 6.1: Evolution in coverage of scaling up the community nutrition program
2009 2011
Number o f children under five
Number o f community sites
Number o f Local Governments
Number o f health districts
Coverage o f children under five
320,000 7 10,000
925 3,000
115 25 1
34 58
22% 45%
Implementation of cash transfer activities
The ability o f the innovative child-focused social cash transfer component to respond effectively to the crisis and to become a model fast-track mechanism to reach the poor and ensure nutrition security will depend heavily on project implementation. In areas where existing PRN structures are in place, these structures wil l provide a strong foundation for the cash transfer rollout. In non-PRN areas, the same cash transfer mechanisms wil l be used accompanied by communication activities but without the monthly community nutrition activities.
Phased approach: The cash transfer wil l be provided to each target community for an init ial period o f 6 months. The program wil l be rolled out gradually fol lowing an implementation plan developed by consensus with al l stakeholders, particularly Elected
48
Local Representatives. The f i rst communities selected for the cash transfer wil l be those in which the PRN has been present for at least 6 months so that complementary nutrition activities and community structures will have been put in place. Over time, the cash transfer project wil l be implemented in both PRN and non-PRN areas to allow for a comparison o f the two implementation models. After the f i rs t six-month phase, a reprioritization o f target areas (based on degree o f nutrition insecurity) will guide the rollout o f each subsequent phase. Note that a second round o f six months can begin while the f i rst one is s t i l l ongoing.
Transparency: As the cash transfer i s a new delivery mechanism in the country and potential scale-up i s envisaged, transparency will be critical throughout the process. Whistleblowers wil l thus be set up at many stages o f the implementation process, such as targeting and payment. As for community targeting (in districts where universal targeting was not possible), a public disclosure o f the eligibility criteria and o f the selected list o f beneficiaries will be crucial.
Monitoring and evaluation of outcomes/results
Monitoring: The PRN has an efficient and effective integrated monitoring and information system using data collected monthly at the community level on project activities, service quality, outcome indicators and costs. Moreover, this system i s integrated into the CEAs’ own monitoring arrangements to ensure flexibility between CEAs’ needs and standardized information needs at aggregated (higher) levels. This system alerts key program actors when corrective measures are needed. At the central level, the monitoring system also will integrate information on the implementation progress o f health and education sector plans.
Monitoring o f the cash transfer component will be integrated into the existing PRN monitoring system. Bo th process and programmatic outcomes will be monitored to allow for ongoing adjustment (learning-by-doing) to ensure project quality and performance. The C E A wil l prepare a report o n the cash transfer activities in each target area after each cash payment (every two months). The C L M wil l synthesize these reports and share them with relevant stakeholders. This way, the C L M can track the development o f the project. The compiled report will present results based o n expected outcomes (percentage o f beneficiaries that meet the selection criteria, percentage o f beneficiaries that receive their transfer o n time, and percentage o f beneficiaries that participate in communication activities).
Evaluation: Project evaluation will focus on the cash transfer component because it is a new element o f the program. There will be two types o f evaluation: (i) a process evaluation that will assess the effectiveness o f cash delivery to beneficiaries, the level o f beneficiary satisfaction, the utilization o f services, the validity o f the targeting process, and the effectiveness o f the communication strategy (see Table 6.2); and (ii) an impact evaluation that will focus on the degree o f achievement o f positive externalities associated with the project, particularly household consumption o f food and o f iodized salt, birth registration, prenatal care, and immunizations. To facilitate the impact
49
evaluation, a proper baseline survey will be undertaken in both intervention and control communities to collect information on pre-intervention conditions. Follow-up surveys will be conducted at the end of the two-year intervention for a total of 6 pre-post surveys. Furthermore, data from the LQAS - collected every six months as part of the community nutrition component of the PRN - will be used to track changes in other outcomes reflecting nutrition security. This will enable a rigorous impact evaluation that will be able to identify the added value of the cash transfer component in the presence of the PRN intervention.
Table 6.2: Process evaluation
Study Frequency and duration Observations -- - - - -
Targeting validity After each community-based This will provide an opportunity to targeting experience adjust selection criteria if necessary
Communication activities After 6 months of intervention This will determine whether communication channels are effective
Availability of funds After 6 months of intervention Evaluation of payment system (efficiency, security, etc.)
Beneficiary satisfaction 12 months into the project Lessons learned will be applied in future (halfway point) intervention phases.
Institutional Arrangements
The project will be implemented by the CLM, which already successfully implements the Nutrition Enhancement Project (PO971 81). The CLM's responsibilities are primarily to coordinate and supervise the various actors involved in the implementation of the different components; i.e., line ministries, local government, CEA, decentralized public services, communities, and, in the case of the cash transfer component, local payment service provider. Sector Ministries, notably the Ministry of Health and Prevention, assist the CLM with the formulation of policies, norms and protocols, contribute to the implementation of the program, and ensure the quality of interventions. The health and education ministries will not directly manage financial funds, but work according to agreed-upon technical agreements and annual plans (see Annex 4). Figure 6.1 summarizes the key stakeholders and the institutional set up for project implementation.
The CEAs must have legal status (NGO, CBO, or other) and a capacity to implement community-based nutrition interventions in an entire health district. On behalf of the local government, the CEA will be in charge of implementing activities financed by the CLM. Therefore, the selected CEAs will work with the local governments to prepare proposals, which the local government will then submit to CLM for approval and funding. CEAs will sign a grant agreement with their respective local governments to implement the technical and financial aspects of project activities, while reporting to the local authorities and the health district. Hence, the local government will not manage funds, which according to the contractual agreement between BEN and the local government will be directly deposited into a separate account of the CEA.
Figure 6.1: Institutional architecture
I \
Prime Minister's Office CLM
Line Ministries Local Government (Health, Education, (Local Selection Decentralized Financial
Family, Finance) Committee) Institutions
Decentralized services (Arrondissement-level Community Executing
Monitoring Committee) Agency (CEA)
I I I
Vulnerable Mothers of Children under 5 1 The role of the communities will be to: (i) identify and mobilize members of the community to operate as nutrition aides; (ii) determine appropriate sites for nutrition aides to conduct monthly growth promotion activities; and (iii) set up management committees to oversee the community nutrition activities and sites. The nutrition aides belong to (and will be supported by) the community. Technical support in the form of training, formative supervision, and learning exchanges will be provided by the CEA in collaboration with public health service providers and local authorities. (See Table 6.3 for all roles and responsibilities.)
Table 6.3: Roles and Responsibilities
Entity Roles and responsibilities
CLM Prepare agreements with local entities, line ministries according to respective roles and responsibilities Provide strategic guidance on priority projects Develop key documents in collaboration with line ministries Provide technical assistance Monitor and evaluation, notably the cash transfer component Check compliance with agreed procedures during implementation Undertake studies about nutrition in Senegal Manage the overall project Disburse funds
Ministry of Approve agreement between CLM and the Local Payment Service Economy and Providers Finance Monitor collaboration between these entities
Ministry of the Monitor the overall process of the cash transfer project with emphasis Family, National on targeting Solidarity, Women's Entrepreneurship and Microfinance
Ministry of Health Monitor indicators related to nutritional status of target children and Prevention
Arrondissement- Inform Local Governments on objectives and process of cash level Monitoring transfers Committee Validate the list of beneficiaries
Monitor cash transfer activities
Local Government Select CEAs Identify PRN intervention areas In collaboration with the CEA, prepare and validate proposals and submit to the CLM Supervise community-based activities Inform local authorities about project objectives and processes Organize Local Selection Committee to identify beneficiaries for cash transfers
Local Selection Organize community information and planning meetings for cash Committee transfer component
Oversee and validate the identification of cash transfer beneficiaries
Decentralized Ensure that funds are available in a timely manner at agreed pay- Payment Service points Providers Verify beneficiaries' identity
Disburse cash payments to beneficiaries Prepare and provide financial statements to the CLM
Community Implement PRN activities Execution Agencies Facilitate project execution at district and community level (CEA) Implement communication strategy at community level
Verify the beneficiary list for cash transfers and ensure proper community targeting Support Local Selection Committee with targeting activities Report on the status of project implementation
Annex 7: Project Preparation, Appraisal and Negotiations Team Members
Menno Mulder-Sibanda Senior Nutrition Specialist (TTL) AFTH2
Saidou Diop Financial Management Specialist AFTFM
Cheick Traore Senior Procurement Specialist AFTPC
Ronnie Harnrnad Senior Operations Specialist
~ u d o & c subran Economist
AFTRL
ARD
Lucy Bassett Nutrition and Cash Transfer Consultant AFTH2
Mamadou Ndione Economist AFTP4
Alain d'Hoore Lead Economist AFTP4
Mademba Ndiaye Senior Communications Officer AFREX
Moukim Temourov Senior Human Development Economist AFTH2
Nathalie Munzberg Senior Counsel LEGAF
Aphrodite Smagadi Consultant LEGAF
Wolfgang Chadab Senior Finance Officer LOAFC
Marietou Toure Language Program Assistant AFTH2
Astou Diaw-Ba Program Assistant AFCF 1