The World Bank Social Safety Nets Modernization Project (P128344) REPORT NO.: RES39594 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SOCIAL SAFETY NETS MODERNIZATION PROJECT APPROVED ON JULY 3, 2014 TO GOVERNMENT OF UKRAINE SOCIAL PROTECTION & JOBS EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Satu Kristiina Jyrintytaer Kahkonen Regional Director: Fadia M. Saadah Practice Manager/Manager: Cem Mete Task Team Leader(s): Katerina Petrina The World Bank Social Safety Nets Modernization Project (P128344) ABBREVIATIONS AND ACRONYMS AF Additional Financing DLI Disbursement-Linked Indicator EFC Error, fraud and corruption FM Financial Management GMI Guaranteed Minimum Income GoU Government of Ukraine HUS Housing and Utility Subsidy IBRD International Bank for Reconstruction and Development M&E Monitoring & Evaluation MoF Ministry of Finance MoSP Ministry of Social Protection PDO Project Development Objective SA Social Assistance SM Subsistence Minimum SSN Social Safety Net SSNMP Social Safety Net Modernization Project TTL Task Team Leader UAH Ukrainian Hryvnia USD United States Dollar WB World Bank The World Bank Social Safety Nets Modernization Project (P128344) BASIC DATA Product Information Project ID Financing Instrument P128344 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 03-Jul-2014 01-Oct-2020 Organizations Borrower Responsible Agency Government of Ukraine Ministry of Social Policy of Ukraine Project Development Objective (PDO) Original PDO The objective of the Project is to improve the performance of the Borrower's social assistance and social services system for low-income families. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-84040 03-Jul-2014 09-Jul-2014 02-Oct-2014 01-Oct-2020 300.00 160.93 139.07 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Social Safety Nets Modernization Project (P128344) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Social Safety Nets Modernization project (SSNM or the Project) was approved by the Board of Directors on July 4, 2014 and became effective on October 2, 2014. The PDO is to improve the performance of the Borrower's social assistance and social services system for low-income families. Overall, the project implementation has developed relatively well towards achieving the PDO and, after a slow start, has made satisfactory implementation progress. The last supervision mission conducted in December 2019 recorded good progress on all three project components. There are no outstanding audit reports and the last one received on January 13, 2020 was satisfactory to the Bank. 2. Project restructurings. The project had one Level II restructuring approved in October 2015, to revise the title of Component 3 and its associated DLI 17 and results indicator 5 titles by replacing reference to “four oblasts” with “selected oblasts”. 3. The project has three components. Component 1, “Improving social assistance provision to the most vulnerable,” has disbursements linked to the GMI program expansion that are triggered by the verified achievement of agreed results (Disbursement-linked Indicators-DLIs). Component 2, “Supportive Investments for Institutional Strengthening for Administration of Social Assistance and Social Services” and Component 3, “Supportive Investments for Increasing Provision of Family-based Care to support orphans, children deprived of parental care, disabled children and vulnerable families in selected Oblasts” follow the traditional investment modality. 4. Progress towards achievement of the PDO and PDIs. The five key Project Development Indicators (PDIs) for tracking progress toward the Project Development Objective include: (i) PDI 1: the share of individuals from the poorest decile receiving GMI increases from 10 percent in 2012 (baseline) to 16 percent in 2019; and PDI 2: the GMI budget increases at least three-fold in nominal terms that measure the increase in access of poor to the GMI program: (ii) PDI 3: An effective and efficient system to prevent, detect, deter and monitor error, fraud and corruption (EFC) in place; and PDI 4: MIS collects social assistance and service programs’ information nationwide that measure improvements in administration of benefits and services (iii) PDI 5: Number of children de-institutionalized and moved to alternative forms of care in three selected oblasts increased by 40 percent that measure enhanced provision of family-based care to support families in need and vulnerable families. There is progress on all 5 PDIs but the challenges remain on the overall progress towards the achievement of their end-Project target values. More time and efforts are needed to reach the end- Project target values for the PDIs, and extension of the Project closing date will allow to complete the activities that would lead to PDIs achievement. Component 1: Improving social assistance provision to the most vulnerable The World Bank Social Safety Nets Modernization Project (P128344) 5. Progress under Component 1 of the Project is significant, including in achieving the project development indicators (PDIs). Over the past 4.5 years, the Project directly co-financed the expansion of the GMI program to increase the number of beneficiaries from 160,000 to 200,000 and then to 300,000 families (over 1 million individuals), equivalent to a coverage of 2.5 percent of the population. This expansion allowed the Government to: (i) achieve DLI 1-3 and disburse US$60 million to the State budget, and (ii) increase the share of individuals from the poorest decile receiving GMI from 10 percent in 2012 (baseline) to 14.5 percent in 2017, thus showing progress in achieving the associated PDI’s end target of 16 percent. By 2017, the GMI budget in nominal terms increased almost three-fold, thus, showing progress in achieving another PDI.1 The project is on track to achieve the other three PDIs related to improvements in SSN administration and child deinstitutionalization. 6. DLI achievements and disbursements have also showed strong progress. To date, the Ministry of Social Policy (MoSP) has achieved 10 out of 17 DLIs, which triggered the disbursement of US$135 million out of a total of US$200 million to the State Budget, as follows. (i) DLI 1-3 (US$ 60 million): Three DLIs were linked to the expansion of the GMI program from 160,000 recipient households in 2013 to 300,000 in 2016. (ii) DLI 4 (US$ 10 million): To counteract any possible deterioration of the targeting accuracy while the GMI program expands, this DLI rewarded improvements in GMI eligibility criteria that would lead to improving GMI targeting performance, while simplifying program rules and application procedures. (iii) DLI 5-6 (US$ 20 million): Another two DLIs related to the launch of the pilot on activation of the GMI beneficiaries and Internally Displaced Persons (IDPs) in three oblasts and the completion of this pilot. (iv) DLI 8-10 (US$40 million): These three DLIs supported the development of an effective and efficient system to detect, deter and prevent error and fraud in the social assistance system, namely the establishment of a Social Inspectorate and the completion of the two GMI inspections. (v) DLI 16 (US$ 5 million): This DLI supported the creation of the legal framework for residential care transformation and family-based care development for orphans and children deprived of parental care. Component 2: Supportive Investments for Institutional Strengthening for Administration of Social Assistance and Social Services 7. The progress on Component 2 is also significant. The first significant achievement was the successful completion of the piloting of labor market activation services to support transition of work able GMI beneficiaries from dependency on benefits to self-sufficiency. The pilot, entitled Hand of Help, has been operating since 2016 in Kharkiv, Poltava, and Lviv Oblasts, and since 2018 also in three amalgamated local communities.2 By mid-2018, 3,300 GMI beneficiaries and IDPs received activation services that helped them to return to the labor market. Thanks to the financial support provided under the pilot, 230 participants managed to establish their own business. The national rollout of the activation services is planned for 2020. As a result of the pilot, around 30% of the work able GMI beneficiaries were activated. The pilot showed that more restrictive measures for work able beneficiaries are needed to make them interested in activation, including changes to the eligibility rules and benefit duration that could be supported through the AF. 1PDI 2 in original project read as follows: the GMI budget increases at least three-fold in nominal terms. 2Baraniv city amalgamated local community of Zhytomyr Oblast, Kipti village amalgamated local community of Chernihiv Oblast and Mykolayiv city amalgamated local community of Donetsk Oblast. The World Bank Social Safety Nets Modernization Project (P128344) 8. Another achievement under Component 2 was the introduction of the new models for social assistance and social services delivery to be supported by an integrated MIS E-Social. The project included a complex activity to develop an integrated MIS “E-Social” that will cover all social assistance and social care services provision. The new MIS is based on a new web technology and is aimed at transforming the modalities for citizen interface, improving accessibility of benefits and services to overcome the limitations of remoteness, accommodate disabilities, and to reduce the transaction costs of applying for programs and receiving benefits and services. It also offers program administrators more efficient ways to automate processes and manage information. The development of the integrated MIS “E-Social” was launched with the signing of the contract for MIS architecture and the application software development in February 2018. Other ICT contracts provided server equipment, standard software and computer equipment for Transparent Offices and amalgamated communities for improved client intake. 9. A social Inspectorate with the capacity to effectively identify and correct benefit irregularities related to errors and fraud has been established. The project included the development of operational manuals for the social inspectors; one thematic inspection of GMI; a client risk-profiling system to be used for the? thematic inspection; and the establishment of a hotline to serve as a channel of redress. It also initiated the procurement of necessary office equipment, furniture, and hardware for the Social Inspectorate. 10. The institutional capacity to introduce and manage a Housing and Utilities Subsidy (HUS) has been strengthened. Under the Project, assistance has been provided to consolidate most energy related assistance and privileges into one single program - the means-tested non-cash Housing and Utilities Subsidy (HUS). The project supported the scale-up of HUS during the increase in energy tariffs in 2014-2017 from 1 to 6.5 million households, which cushioned the shock of the energy reform, and thus facilitated the political acceptability of the increase in energy prices. This was achieved through a major simplification of the HUS’s application process and its administration. The original project support concentrated on a HUS public information campaign and the training of social workers. Component 3: Supportive Investments for Increasing Provision of Family-based Care to support orphans, children deprived of parental care, disabled children and vulnerable families in selected Oblasts 11. Progress has been also made in the de-institutionalization of childcare. The transformation of residential institutions for children and the provision of family-based care to support orphans, children deprived of parental care, disabled children and vulnerable families in four selected oblasts, namely in the city of Kyiv, Kyivska, Chernigivska, and Ternopilska oblasts, has been launched. It is expected that 24 residential institutions in these four oblasts will be transformed and around 600 children will transition to family-based care. 12. Fiduciary management. Financial Management (FM) arrangements at the MoSP, including planning and budgeting, accounting, financial reporting, funds flow, internal control, external audits, and staffing are satisfactory and continue to be acceptable to the World Bank. The current FM rating is Moderately Satisfactory due to issues related to delay in submission of the latest audit. The World bank received the Financial Statements Audit for 2017-2018 conducted by the Accounting Chamber of Ukraine on January 13, 2019. The procurement of goods and selection of consultant services have been implemented in line with the agreed rules and provisions. The MoSP is staffed with three procurement consultants, experienced and trained on the World Bank Consultant and Procurement Guidelines. 13. Disbursement/Commitment. The amount disbursed under the Project as of January 10, 2020 is US$161 million (or 54 percent of the total loan amount). It is expected that by the end of January 2020, the MoSP will achieve The World Bank Social Safety Nets Modernization Project (P128344) DLI 7 that will trigger disbursement of US$15 million and increase the total disbursements to 58 percent of the total loan amount. Commitments (contracts signed but not yet disbursed) represent an additional US$40 million and are expected to grow to US$60 million by June 2020 (or 95 percent of the total amount of US$100 million allocated for Component 2 and 3 of the Project). B. Rationale for Restructuring 14. The latest Project review in December 2019 focused reviewing and agreeing with the new Minister of Social Policy on necessary changes to the Project activities to better align them with ongoing Social Safety Nets reform in Ukraine, and to ensure complementarity of the GoU program and the Project activities. With the goal of boosting disbursements and further supporting social protection reforms, the review identified the following changes as necessary: (i) extension of the project closing date from October 1, 2020, to March 31, 2023 and synchronize the new closing date with Additional Financing closing date; (ii) update of the end target dates in the results framework to reflect the extension of the closing date; (iii) revision of the scope of activities to be financed under Component 3 by excluding the financing of civil works while increasing the financing of services, equipment and furniture for family-based care and homes, as well as the training of social workers; and (v) revision of the implementation arrangements for Component 3 to exclude the involvement of the Ukrainian Social Investment Fund (USIF) in project implementation due to the exclusion of any civil works in the project. 15. The proposed extension of the Project closing date is necessary to complete MIS-related activities and to continue to support GoU’s child deinstitutionalization reform agenda. The Project has a complex activity on IT technology and equipment that supports development of the new MIS E-Social. All main inputs for MIS development, including software and hardware as well as office equipment and furniture have been either provided or their delivery is underway. However, the start of the national rollout of the new MIS is planned for September 2020 and without an extension, the Project will not be able to support the continuation of the national rollout of MIS planned for 2021-2022. Similar arguments stand for project extension to support the national rollout of the child deinstitutionalization reform. 16. Revision of Project implementation schedule. In line with the suggestions of the MoSP, the Project’s implementation schedule has been revised to reflect the proposed new closing date. This revised schedule puts project activities into a realistic timeframe for both completing the rollout of the MIS and child deinstitutionalization activities. The proposed new closing date is also synchronized with the closing date of Additional Financing that is under preparation for this project. Activities under Component 3 of the project were revised to better align them with the Government budget programs on development of family-based care. The MOSP will finance buying and renovation of family homes; therefore, the Project no longer needs to finance civil works. Instead, Project funds will be used to finance goods, services, equipment and furniture for family homes and other type of family-based care, as well as needed training of social workers. 17. Thus, the scope of activities under Component 3 of the Project was revised by excluding financing of civil works while increasing financing of services, equipment and furniture for family-based care and homes, as well as needed training of the social workers. Hence, no civil works are envisaged under the Project. Consequently, any involvement of the USIF, which was responsible for carrying out civil works under Component 3 of the Project, namely screening and evaluating investment proposals for civil works for social facilities, financial management, procurement, and environmental and social compliance functions for the civil works of each investment in the Project implementation should be eliminated. Thus, Components 2 and 3 of the Project will be implemented solely by the MoSP. The World Bank Social Safety Nets Modernization Project (P128344) II. DESCRIPTION OF PROPOSED CHANGES 18. A level 2 restructuring is proposed and includes: 19. Revision of the results framework in Supplemental letter #2: all end target dates in the results framework will be extended to reflect the extension of the closing date. The following minor changes are proposed to 3 out of total 6 Intermediate Results Indicators (IRI) to reflect revisions in their wording to improve their measurability and to reflect modifications in implementation arrangements for the new MIS E-Social and change of its name. PDO indicator 4: MIS collects social assistance and social service programs’ information nationwide. The baseline for this indicator has been changed to reflect modifications in piloting arrangements and the new name of MIS. Baseline value should read as follows: MIS E-Social is not operational (2013). IRI indicators:  IRI 4: Improved oversight and control. The indicator is reformulated to “Improved oversight and control established” to improve their measurability.  IRI 5: Improved collection and use of program information in new MIS (IASSPP). The indicator is reformulated to “Improved collection and use of program information in new MIS established”. The wording to this indicator and its baseline value is revised to reflect the change in the name of MIS from IASSPP to E-Social.  IRI 6: Increased provision of day-time services and alternative care as opposed to residential care for orphans, children deprived of parental care and children from vulnerable families. To improve its measurability the indicator is reformulated to “Increased provision of day-time services and alternative care as opposed to residential care for orphans, children deprived of parental care and children from vulnerable families in place”. 20. Revision of the Project components and costs: The scope of activities under Part 3 of the Project will be revised by excluding financing of civil works. Accordingly, the term “civil works” will be deleted throughout the Loan Agreement. Consequently, any reference to the Ukrainian Social Investment Fund (“USIF”), which was responsible for carrying out screening and evaluating investment proposals for civil works for social facilities, financial management, procurement and environmental and social compliance functions for the civil works of each investment, will be deleted throughout the Loan Agreement. The Loan Agreement will be amended by deleting the definitions of and any reference to “Administrative Agreement” between MoSP and USIF, as well as “USIF Legislation” and “USIF Manual”, throughout the Loan Agreement. 21. Financial management arrangements suggested for January 1, 2021- March 30, 2023 implementation period. For this time period only one audit of the Financial Statements will be conducted. No performance audit of the Project is required for this period. The World Bank Social Safety Nets Modernization Project (P128344) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Institutional Arrangements ✔ Implementation Schedule ✔ Other Change(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank Social Safety Nets Modernization Project (P128344) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1. Improving social Component 1. Improving assistance provision to the most 200.00 No Change social assistance provision to 200.00 vulnerable the most vulnerable Component 2. Supportive Component 2. Supportive Investments for Institutional Investments for Institutional Strengthening for Administration 80.00 No Change Strengthening for 80.00 of Social Assistance and Social Administration of Social Services Assistance and Social Services Component 3 Supportive Component 3 Supportive Investments for Increasing Investments for Increasing Provision of Family-based Care Provision of Family-based Care to to support orphans, children support orphans, children 20.00 No Change 20.00 deprived of parental care, deprived of parental care, disabled children and disabled children and vulnerable vulnerable families in selected families in selected Oblasts Oblasts TOTAL 300.00 300.00 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-84040 Effective 01-Oct-2020 31-Mar-2023 31-Jul-2023 . The World Bank Social Safety Nets Modernization Project (P128344) . Results framework COUNTRY: Ukraine Social Safety Nets Modernization Project Project Development Objectives(s) The objective of the Project is to improve the performance of the Borrower's social assistance and social services system for low-income families. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Increase access of extreme poor to the GMI program (Action: This Objective has been Revised) the share of individuals from the poorest decile receiving GMI increases from 10 percent in 2012 (baseline) to 16 percent in 10.00 16.00 2022 (Percentage) Rationale: Action: This indicator has been Revised Change of the end target date to reflect the extension of the closing date the GMI budget increases at least three-fold in nominal terms 3.90 13.00 (Amount(USD)) Rationale: Action: This indicator has been Revised Change of the end target date to reflect the extension of the closing date Improved administration of benefits and services (Action: This Objective has been Revised) An effective and efficient system to prevent, detect, deter and No Yes monitor error, fraud and corruption (EFC) in place (Yes/No) Rationale: Action: This indicator has been Revised Change of the end target dates to reflect the extension of the closing date The World Bank Social Safety Nets Modernization Project (P128344) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target MIS collects social assistance and service programs’ information DLI 15 No Yes nationwide (Yes/No) Rationale: Change of the end target dates to reflect the extension of the closing date. The baseline for this indicator has been changed Action: This indicator has been Revised to reflect modifications in piloting arrangements and the new name of MIS. Baseline value should read as follows: MIS E- Social is not operational (2013). Enhanced provision of family-based care to families in need and vulnerable families (Action: This Objective has been Revised) Number of children de-institutionalized and moved to alternative forms of care in three selected pilot oblasts increased by 40 0.00 40.00 percent (Percentage) Rationale: Action: This indicator has been Revised Change of the end target date to reflect the extension of the closing date PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Component 1. Improving social assistance provision to the most vulnerable GMI coverage expanded: monthly number of beneficiary families reached and maintained for at least 3 consecutive months 160.00 300.00 (Number) Action: This indicator has been Revised Rationale: The World Bank Social Safety Nets Modernization Project (P128344) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Change of the end target dates to reflect the extension of the closing date Improved mechanisms of the GMI program adopted and implementation started including simplified application No Yes procedures to achieve stronger targeting accuracy and lower its delivery cost (Yes/No) SSN system complemented with activation services for work-able GMI beneficiaries to help families graduate from benefits into No activation services under GMI Activation services delivery implemented nationwide employment and self-sufficiency (Text) Rationale: Action: This indicator has been Revised Change of the end target date to reflect the extension of the closing date Component 2. Supportive Investments for Institutional Strengthening for Administration of Social Assistance and Social Services Two thematic inspections for GMI and one risk-prone SA Improved oversight and control established (Text) DLI 10 No Social Inspectorate established program is completed using an adequate risk-profiling system Rationale: Action: This indicator has been Revised The indicator is reformulated to “Improved oversight and control established” to improve their measurability. Improved collection and use of program information in new MIS The MIS that process benefits and social services is MIS E-Social is not operational established (Text) operationalized nation-wide Rationale: The indicator is reformulated to “Improved collection and use of program information in new MIS established”. The Action: This indicator has been Revised wording to this indicator and its baseline value is revised to reflect the change in the name of MIS from IASSPP to E-Social. Change of the end target dates to reflect the extension of the closing date The World Bank Social Safety Nets Modernization Project (P128344) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Component 3 Supportive Investments for Increasing Provision of Family-based Care to support orphans, Increased provision of day-time services and alternative care as Number of children in residential care institutions in opposed to residential care for orphans, children deprived of There are 600 children in 24 residential institutions in 4 selected pilot oblasts decreased by 40 percent compared parental care and children from vulnerable families in place regions that will be transferred to family based care. to baseline (Text) Rationale: Change of the end target date to reflect the extension of the closing date. To improve its measurability the indicator is Action: This indicator has been Revised reformulated to “Increased provision of day-time services and alternative care as opposed to residential care for orphans, children deprived of parental care and children from vulnerable families in place”. IO Table SPACE Disbursement Linked Indicators Matrix DLI IN00786247 ACTION DLI 1 Monthly number of GMI beneficiaries families reaches 200,000 and is maintained for, at least, 3 consecutive months Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 20,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline 160.00 October 1, 2014 - October 1, 20,000,000.00 2020 The World Bank Social Safety Nets Modernization Project (P128344) DLI IN00786252 ACTION DLI 2 Monthly number of GMI beneficiaries families reaches 250,000 and is maintained for, at least, 3 consecutive months Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 20,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline 160.00 October 1, 2014 - October 1, 20,000,000.00 2020 DLI IN00786253 ACTION DLI 3 Monthly number of GMI beneficiaries families reaches 300,000 and is maintained for, at least, 3 consecutive months Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 20,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline 160.00 October 1, 2014 - October 1, 20,000,000.00 2020 DLI IN00786255 ACTION Improved mechanisms of the GMI Program adopted and implementation started including simplified application DLI 4 procedures so as to lead to better targeting of the poor Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Yes/No 10,000,000.00 100.00 Period Value Allocated Amount (USD) Formula The World Bank Social Safety Nets Modernization Project (P128344) Baseline No October 1, 2014 - October 1, 10,000,000.00 2020 DLI IN00786256 ACTION Mechanisms of activation services delivery for work-able GMI beneficiaries developed for piloting and the pilot in 3 oblasts DLI 5 started Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 10,000,000.00 100.00 Period Value Allocated Amount (USD) Formula No activation services for GMI beneficiaries Baseline available October 1, 2014 - October 1, 10,000,000.00 2020 DLI IN00786257 ACTION DLI 6 Piloting activation services for workable GMI beneficiaries completed in 3 oblasts Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 100.00 Period Value Allocated Amount (USD) Formula No activation services for GMI beneficiaries Baseline available October 1, 2014 - October 1, 10,000,000.00 2020 The World Bank Social Safety Nets Modernization Project (P128344) DLI IN00786258 ACTION DLI 7 Activation services delivery for work-able GMI beneficiaries implemented nation wide Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula No activation services for GMI beneficiaries Baseline available October 1, 2014 - October 1, 10,000,000.00 2020 DLI IN00786259 ACTION DLI 8 Social Inspectorate established at the Ministry of Social Policy Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 20,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline No Social Inspectorate established October 1, 2014 - October 1, 20,000,000.00 2020 DLI IN00786260 ACTION DLI 9 Inspection of 80% of all GMI beneficiaries’ cases is completed Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline No inspection of 80% of GMI cases carried The World Bank Social Safety Nets Modernization Project (P128344) October 1, 2014 - October 1, 10,000,000.00 2020 DLI IN00786261 ACTION DLI 10 Improved oversight and control established Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline No Social Inspectorate established October 1, 2014 - October 1, 10,000,000.00 2020 Action: This DLI has been Revised. See below. DLI IN00796369 ACTION Inspection of GMI program is completed based on analyzed discrepancies found during data exchange with external DLI 10 databases and remedy proposals provided Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Baseline No Social Inspectorate established October 1, 2014 - October 1, 10,000,000.00 2020 Rationale: Correction of Portal glitches in the name of DLI 10 The World Bank Social Safety Nets Modernization Project (P128344) DLI IN00786262 ACTION Two thematic inspections: one for GMI and one risk-prone social assistance program is completed using an adequate risk- DLI 11 profiling system Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No thematic inspections October 1, 2014 - October 1, 10,000,000.00 2020 DLI IN00786263 ACTION DLI 12 70 percent of Local welfare offices process applications for social assistance benefits in new MIS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline New integrated MIS not operational October 1, 2014 - October 1, 10,000,000.00 2020 DLI IN00786264 ACTION DLI 13 A performance monitoring module for social benefits is operationalized in MIS Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 5,000,000.00 0.00 Period Value Allocated Amount (USD) Formula The World Bank Social Safety Nets Modernization Project (P128344) Baseline New integrated MIS not operational October 1, 2014 - October 1, 5,000,000.00 2020 DLI IN00786265 ACTION DLI 14 The MIS expanded with a module for social services and module is tested in 2 oblasts Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 5,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline New integrated MIS not operational October 1, 2014 - October 1, 5,000,000.00 2020 DLI IN00786266 ACTION DLI 15 MIS collects social assistance and service programs’ information nationwide Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No October 1, 2014 - October 1, 10,000,000.00 2020 Action: This DLI has been Revised. See below. The World Bank Social Safety Nets Modernization Project (P128344) DLI IN00796370 ACTION DLI 15 The MIS that process benefits and social services is operationalized nationwide Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No October 1, 2014 - October 1, 10,000,000.00 2020 Rationale: To correct Portal glitches in the DLI15 wording DLI IN00786267 ACTION Legal framework adopted for residential care transformation and family-based care development for orphans and children DLI 16 deprived of parental care Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 5,000,000.00 100.00 Period Value Allocated Amount (USD) Formula Weak legal base for transformation of residential Baseline institutions October 1, 2014 - October 1, 5,000,000.00 2020 The World Bank Social Safety Nets Modernization Project (P128344) DLI IN00786268 ACTION DLI 17 Number of children in residential care institutions in selected pilot oblasts decreased by 40 percent compared to baseline Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula As of June 2019 there are 600 children in 24 residential institutions in 4 regions that will be Baseline transferred to family based care. Transformation of institutions and transition of children to family based care will start in 2020 October 1, 2014 - October 1, 10,000,000.00 2020 Verification Protocol Table: Disbursement Linked Indicators DLI_TBL_VERIFICATION DLI 1 Monthly number of GMI beneficiaries families reaches 200,000 and is maintained for, at least, 3 consecutive months This indicator is defined as the number of households receiving the state social assistance for low income families (GMI) in accordance with the Law of Ukraine "On State Social Assistance for Low income Families" in a specific month. The indicator Description is considered achieved, if the number of beneficiary households of the GMI program equals at least 200,000/250,000/300,000 respectively for 3 consecutive months. Administrative data of the Ministry of Social Policy of Ukraine (MoSP). On request of the MoSP, the welfare offices of oblast state administrations and Kyiv city state administrations provide operative reports social assistance for low income families (GMI) on a monthly basis. Data source/ Agency The MoSP consolidates the monthly operative reports, publishes an aggregate report on its website. The aggregate report form will be sp to be approved by the Ministry of Social Policy of Ukraine and agreed with the Bank. At minimum, the aggregate report should identify th have been effectively paid during that month, distinct from those suspended or not yet paid. The World Bank Social Safety Nets Modernization Project (P128344) Once the number of households receiving social assistance for low income families (GMI) exceeds the target for at least three consecutiv that the DLI has been met, and will attach the three monthly aggregate reports as evidence. World Bank team Verification Entity Procedure form verification protocol: The indicator is defined as the number of households receiving the state social assistance for low income families (GMI) in accordance with the Law of Ukraine "On State Social Assistance for Low income Families" in a specific month. Procedure The indicator is considered achieved, if the number of beneficiary households of the GMI program equals at least 200,000 respectively for 3 consecutive months. DLI_TBL_VERIFICATION DLI 2 Monthly number of GMI beneficiaries families reaches 250,000 and is maintained for, at least, 3 consecutive months The indicator is defined as the number of households receiving the state social assistance for low income families (GMI) in accordance with the Law of Ukraine "On State Social Assistance for Low income Families" in a specific month. The indicator Description is considered achieved, if the number of beneficiary households of the GMI program equals at least 200,000/250,000/300,000 respectively for 3 consecutive months. Administrative data of the Ministry of Social Policy of Ukraine (MoSP). Data source/ Agency World Bank Project team Verification Entity On request of the MoSP, the welfare offices of oblast state administrations and Kyiv city state administrations provide operative reports social assistance for low income families (GMI) on a monthly basis. The MoSP consolidates the monthly operative reports, publishes an aggregate report on its website. The aggregate report form will be sp Procedure to be approved by the Ministry of Social Policy of Ukraine and agreed with the Bank. At minimum, the aggregate report should identify th have been effectively paid during that month, distinct from those suspended or not yet paid. Once the number of households receiving social assistance for low income families (GMI) exceeds the target for at least three consecutiv that the DLI has been met, and will attach the three monthly aggregate reports as evidence. DLI_TBL_VERIFICATION DLI 3 Monthly number of GMI beneficiaries families reaches 300,000 and is maintained for, at least, 3 consecutive months The indicator is defined as the number of households receiving the state social assistance for low income families (GMI) in Description accordance with the Law of Ukraine "On State Social Assistance for Low income Families" in a specific month. The indicator The World Bank Social Safety Nets Modernization Project (P128344) is considered achieved, if the number of beneficiary households of the GMI program equals at least 200,000/250,000/300,000 respectively for 3 consecutive months. Administrative data of the Ministry of Social Policy of Ukraine (MSP). Data source/ Agency World Bank Project team Verification Entity On request of the MoSP, the welfare offices of oblast state administrations and Kyiv city state administrations provide operative reports o social assistance for low income families (GMI) on a monthly basis. The MoSP consolidates the monthly operative reports, publishes an aggregate report on its website. The aggregate report form will be sp Procedure to be approved by the Ministry of Social Policy of Ukraine and agreed with the Bank. At minimum, the aggregate report should identify th have been effectively paid during that month, distinct from those suspended or not yet paid. Once the number of households receiving social assistance for low income families (GMI) exceeds the target for at least three consecutiv that the DLI has been met, and will attach the three monthly aggregate reports as evidence. DLI_TBL_VERIFICATION Improved mechanisms of the GMI Program adopted and implementation started including simplified application DLI 4 procedures so as to lead to better targeting of the poor The DLI is considered achieved when the MSP has adopted changes to the eligibility criteria of the GMI program that would Description result, according to a methodologically robust microsimulation model, in a minimum 10 percent increase in the share of benefits received by the poorest quintile. MoSP provided all the changes introduced into the legislation to improve GMI elidgibility Data source/ Agency World Bank Project team Verification Entity The following by-laws has been adopted to improve GMI eligibility criteria: 1. The Cabinet of Ministers of Ukraine Resolution "On amending the Procedure for granting and paying of state social assistance to low-income families" dated July 4, 2017 No. 454 ; 2. The Cabinet of Ministers of Ukraine Resolution "On Amendments to certain Resolutions of the Cabinet of Ministers of Procedure Ukraine" dated November 30, 2016, # 890; 3. The joint Order of the Ministry of Social Policy, the Ministry of Finance, and the State fiscal service on approval of the procedure for delivery of information from the State register of natural persons–tax payers regarding income (lack of income) got by individuals who have applied for the state social assistance (Order No. 1287/926 dated November 04, 2016; The World Bank Social Safety Nets Modernization Project (P128344) 4. The Order of the Ministry of social policy "On approval of the Procedure for delivery in electronic form the information from the register of insured persons at the state register of compulsory state social insurance to bodies of labor and social protection of the population" (Order No. 252 dated February 20, 2017); 5. The Analytical Note regarding assessment of the forecasted impact of planned and implemented changes in the Program of state social assistance to low-income families on the GMI program's targeting accuracy indicator – 14 pages. DLI_TBL_VERIFICATION Mechanisms of activation services delivery for work-able GMI beneficiaries developed for piloting and the pilot in 3 oblasts DLI 5 started The activation services may include measures that intervene in the labor market to help the GMI NEETDP adults find work. These measures include (i) public employment services (such as job centers and labor exchanges, which help the GMI beneficiaries to improve their job search effort by disseminating information on vacancies and by providing assistance with Description interview skills and writing a curriculum vitae); (ii) training schemes (such as classes and apprenticeships, which help the GMI beneficiaries improve their vocational skills and hence increase their employability); and (iii) employment subsidies (either in the public or private sector; these are typically short-term measures which are designed to allow the unemployed to build up work experience and prevent skill atrophy). MoSP Data source/ Agency World Bank Project team Verification Entity The MSP discusses with the Bank their proposals on the procedure for the provision of activation services to work-able NEETDP GMI beneficiaries. The MSP discusses with the World Bank the proposed budget for the pilot. Procedure The MSP adopts the regulations for piloting activation services to work-able NEETDP GMI beneficiaries, including an adequate budget, and notifies the World Bank thereof. DLI_TBL_VERIFICATION DLI 6 Piloting activation services for workable GMI beneficiaries completed in 3 oblasts The activation services may include measures that intervene in the labor market to help the GMI NEETDP adults find work. These measures include (i) public employment services (such as job centers and labor exchanges, which help the GMI Description beneficiaries to improve their job search effort by disseminating information on vacancies and by providing assistance with interview skills and writing a curriculum vitae); (ii) training schemes (such as classes and apprenticeships, which help the GMI beneficiaries improve their vocational skills and hence increase their employability); and (iii) employment subsidies The World Bank Social Safety Nets Modernization Project (P128344) (either in the public or private sector; these are typically short-term measures which are designed to allow the unemployed to build up work experience and prevent skill atrophy). MoSP administrative data; Impact evaluation report of the pilot activation measures for work-able NEETDP GMI beneficiaries. Data source/ Agency The administrative information is to be provided to the World Bank once every six months. The impact evaluation report will be produced within 12 month of the completion of the pilot. World Bank Project team Verification Entity The MSP consolidates the information about the pilots in two oblasts, and notifies the Bank of the results. MSP will discuss the Impact evaluation report of the pilot activation measures for work-able NEETDP GMI beneficiaries, with the consultant and the World Bank. Procedure The information about the pilots must include, inter alia, the details of expenses on services provided to GMI recipients within the scope of the pilot. DLI_TBL_VERIFICATION DLI 7 Activation services delivery for work-able GMI beneficiaries implemented nation wide The activation services may include measures that intervene in the labor market to help the GMI NEETDP adults find work. These measures include (i) public employment services (such as job centers and labor exchanges, which help the GMI beneficiaries to improve their job search effort by disseminating information on vacancies and by providing assistance with Description interview skills and writing a curriculum vitae); (ii) training schemes (such as classes and apprenticeships, which help the GMI beneficiaries improve their vocational skills and hence increase their employability); and (iii) employment subsidies (either in the public or private sector; these are typically short-term measures which are designed to allow the unemployed to build up work experience and prevent skill atrophy). Legislation/MoSP Data source/ Agency World Bank Project team Verification Entity The MSP prepares legislative proposals and informs the Bank once they are adopted (by providing the supporting documents). Procedure The MSP discusses with the World Bank the proposed budget for the national roll-out. An adequate budget to finance the national rollout was adopted. The World Bank Social Safety Nets Modernization Project (P128344) DLI_TBL_VERIFICATION DLI 8 Social Inspectorate established at the Ministry of Social Policy These measures will prove the achievement of the indicator: (1) Necessary legislation to establish Social Inspectorate has been developed and approved; (2) Inspection of 80% of all GMI beneficiaries’ cases is completed; (3) Inspection of GMI Description program is completed based on analyzed discrepancies found during data exchange with external databases, and proposal regarding remedial actions and error corrections are provided; (4) Two thematic inspections: one for the GMI program and one for a risk-prone social assistance program are using an adequate risk-profiling system Legislation/MoSP Data source/ Agency World Bank Project team Verification Entity The MSP prepares legislative proposals on the establishment of Social Inspectorate and other relevant documents required for the operation of the system, and notifies the World Bank of the adoption (approval) thereof. The Ministry of Finance allocates funds in the state budget to support the activities of social inspectorates. Procedure The MSP establishes an appropriate structural unit of the MSP to support the operation of the social inspectorate system, and reports to the Bank that all requirements have been met. DLI_TBL_VERIFICATION DLI 9 Inspection of 80% of all GMI beneficiaries’ cases is completed Description Inspection report describing the inspection process; its findings, and its results; adopted by Order of the Minister of MoSP. An electronic database with the findings of the inspection process and the circumstances of the beneficiaries (from their Data source/ Agency application and/or recertification) has been compiled World Bank Project team Verification Entity The inspection report is to be approved by the MoSP. A database with minimum 90% valid fields covering all inspected cases (minimum 80% of the current caseload) has been Procedure completed; an anonymized version of the database was presented to the World Bank. The World Bank Social Safety Nets Modernization Project (P128344) DLI_TBL_VERIFICATION DLI 10 Improved oversight and control established These measures will prove the achievement of the indicator: (1) Necessary legislation to establish Social Inspectorate has been developed and approved; (2) Inspection of 80% of all GMI beneficiaries’ cases is completed; (3) Inspection of GMI Description program is completed based on analyzed discrepancies found during data exchange with external databases, and proposal regarding remedial actions and error corrections are provided; (4) Two thematic inspections: one for the GMI program and one for a risk-prone social assistance program are using an adequate risk-profiling system MoSP report on inspection Data source/ Agency World Bank Project team Verification Entity Operational guidelines for data cross-checks between the GMI MIS and the other four public databases (how to generate the list of data inaccuracies) Depersonalized list of data inaccuracies Procedure Operational guidelines on handling referrals from data cross-checks by the social inspectors. Inspection report describing the inspection process; its findings, and its results; adopted by Order of the Minister of MoSP. DLI_TBL_VERIFICATION Inspection of GMI program is completed based on analyzed discrepancies found during data exchange with external DLI 10 databases and remedy proposals provided These measures will prove the achievement of the indicator: (1) Necessary legislation to establish Social Inspectorate has been developed and approved; (2) Inspection of 80% of all GMI beneficiaries’ cases is completed; (3) Inspection of GMI Description program is completed based on analyzed discrepancies found during data exchange with external databases, and proposal regarding remedial actions and error corrections are provided; (4) Two thematic inspections: one for the GMI program and one for a risk-prone social assistance program are using an adequate risk-profiling system MoSP report on inspection Data source/ Agency World Bank Project team Verification Entity Operational guidelines for data cross-checks between the GMI MIS and the other four public databases (how to generate the list of data inaccuracies) Procedure Depersonalized list of data inaccuracies Operational guidelines on handling referrals from data cross-checks by the social inspectors. The World Bank Social Safety Nets Modernization Project (P128344) Inspection report describing the inspection process; its findings, and its results; adopted by Order of the Minister of MoSP. DLI_TBL_VERIFICATION Two thematic inspections: one for GMI and one risk-prone social assistance program is completed using an adequate risk- DLI 11 profiling system These measures will prove the achievement of the indicator: (1) Necessary legislation to establish Social Inspectorate has been developed and approved; (2) Inspection of 80% of all GMI beneficiaries’ cases is completed; (3) Inspection of GMI Description program is completed based on analyzed discrepancies found during data exchange with external databases, and proposal regarding remedial actions and error corrections are provided; (4) Two thematic inspections: one for the GMI program and one for a risk-prone social assistance program are using an adequate risk-profiling system Report on development of analytical risk profiles for GMI and another risk-prone social assistance program Operational guidelines for the use of risk profiling in planning and conducting inspections Inspection report describing the inspection process and the use of risk-profiling; its findings, and its results; adopted by Data source/ Agency Order of the Minister of social policy of Ukraine Agency responsible is the MoSP World Bank Project team Verification Entity MoSP sends to World Bank a copy of the: Report on development of analytical risk profiles for GMI and another risk-prone social assistance program. Operational guidelines for the use of risk profiling in planning and conducting inspections has been adopted by MoSP. Procedure The inspection team has verified and proposed remedial actions to at least 90% of the cases referred to them through the risk profiling system. DLI_TBL_VERIFICATION DLI 12 70 percent of Local welfare offices process applications for social assistance benefits in new MIS The MIS E-Social that process social benefits and social services is operationalized nationwide. The indicator is considered attained if: all LWOs process social benefits via the MIS E-Social; all LWOs process social services via the MIS E-Social. The Description share of LWOs that process social benefits and services via the MIS E-Social is calculated as follows: Ui / Uk * 100%, where Ui is the number of LWOs that process social services via the MIS E-Social, Uk is the total number of LWOs at the reporting time. The indicator is considered attained if Ui / Uk * 100% ≥ 60%. MSP administrative data/ MoSP Data source/ Agency The World Bank Social Safety Nets Modernization Project (P128344) World Bank Project team Verification Entity On request of the MoSP, LWOs submit monthly reports on the number of GMI applications processed using the E-Social. Procedure The MoSP calculates the indicator on a quarterly basis and notifies the World Bank when it is attained. DLI_TBL_VERIFICATION DLI 13 A performance monitoring module for social benefits is operationalized in MIS The MIS E-Social that process social benefits and social services is operationalized nationwide. The indicator is considered attained if: all LWOs process social benefits via the MIS E-Social; all LWOs process social services via the MIS E-Social. The Description share of LWOs that process social benefits and services via the MIS E-Social is calculated as follows: Ui / Uk * 100%, where Ui is the number of LWOs that process social services via the MIS E-Social, Uk is the total number of LWOs at the reporting time. The indicator is considered attained if Ui / Uk * 100% ≥ 60%. MoSP report Data source/ Agency World Bank Project team Verification Entity The MSP notifies the World Bank of the commencement of the operation of the performance monitoring module covering Procedure all social benefits and services and LWO performance, and submits a copy of the monitoring report. DLI_TBL_VERIFICATION DLI 14 The MIS expanded with a module for social services and module is tested in 2 oblasts The MIS E-Social that process social benefits and social services is operationalized nationwide. The indicator is considered attained if: all LWOs process social benefits via the MIS E-Social; all LWOs process social services via the MIS E-Social. The Description share of LWOs that process social benefits and services via the MIS E-Social is calculated as follows: Ui / Uk * 100%, where Ui is the number of LWOs that process social services via the MIS E-Social, Uk is the total number of LWOs at the reporting time. The indicator is considered attained if Ui / Uk * 100% ≥ 60%. Operational Manual for E-Social, results of pilot implementation of social services module and MoSP administrative data/ Data source/ Agency MoSP World Bank Project team Verification Entity Procedure The MSP notifies the Bank of the results of conducted pilots on social service module in the E-Social MIS. The World Bank Social Safety Nets Modernization Project (P128344) DLI_TBL_VERIFICATION DLI 15 MIS collects social assistance and service programs’ information nationwide The monitoring plan includes submission of the evidence on the following: 1. 70 percent of Local welfare offices process Description applications for social assistance benefits in new MIS. 2. A performance monitoring module for social benefits is operationalized in new MIS. 3. The new MIS is expanded with a module for social services and module is tested in 2 oblasts MoSP administrative data Data source/ Agency World Bank Project team Verification Entity On MoSP’s request, LWOs submit monthly reports on processing social benefits and social services in MIS E-Social. The MoSP calculates the indicator quarterly, and if attained, the indicator is communicated to the World Bank. Procedure The indicator is to be communicated one time upon meeting the criteria. DLI_TBL_VERIFICATION DLI 15 The MIS that process benefits and social services is operationalized nationwide The monitoring plan includes submission of the evidence on the following: 1. 70 percent of Local welfare offices process Description applications for social assistance benefits in new MIS. 2. A performance monitoring module for social benefits is operationalized in new MIS. 3. The new MIS is expanded with a module for social services and module is tested in 2 oblasts MoSP administrative data Data source/ Agency World Bank Project team Verification Entity On MoSP’s request, LWOs submit monthly reports on processing social benefits and social services in MIS E-Social. The MoSP calculates the indicator quarterly, and if attained, the indicator is communicated to the World Bank. Procedure The indicator is to be communicated one time upon meeting the criteria. The World Bank Social Safety Nets Modernization Project (P128344) DLI_TBL_VERIFICATION Legal framework adopted for residential care transformation and family-based care development for orphans and children DLI 16 deprived of parental care Description Legislation adopted/ MoSP Data source/ Agency World Bank Project team Verification Entity The MSP prepares legislative proposals and informs the Bank once those have been adopted (by providing the supporting Procedure documents).The information is to be provided one-time upon meeting all criteria. DLI_TBL_VERIFICATION DLI 17 Number of children in residential care institutions in selected pilot oblasts decreased by 40 percent compared to baseline The number of children (orphans, children deprived of parental care, children lacking adequate family environment to grow and placed in institution by parent application), in residential care institutions in 4 pilot oblasts as of May 1, 2019, is taken as the baseline. There are 1408 children in 24 residential institutions in 4 regions that could be transferred to family based care. The indicator is calculated as follows: (Kb – Kd) / Kb × 100%, where Kb is the baseline number of children (orphans, Description children deprived of parental care, children lacking adequate family environment togrow and placed in institution by parent application) in residential care institutions in pilot oblasts; Kd is the number of children (orphans, children deprived of parental care, children lacking adequate family environment togrow and placed in institution by parent application) in residential care institutions in pilot oblasts in the reporting year. The target is considered achieved, if (Kb Kd) / Kb × 100% ≥ 40% The level of attainment of the target will be determined on the basis of operative reports supplied by oblast state Data source/ Agency administrations of the pilot oblasts on request of the MoSP / MoSP and Oblast State Administrations World Bank Project team Verification Entity The MSP approves the reporting form and deadlines for submission. Oblast state administrations inform the MSP on the indicator by the specified deadline. The MSP notifies the World Bank accordingly upon the consolidation of reports and Procedure calculation of the average for the indicator. The indicator will be calculated and communicated to the Bank annually supported with the summary report for each pilot oblast. Once the indicator communicated reaches 40 percent or higher, the DLI will be declared achieved The World Bank Social Safety Nets Modernization Project (P128344) The World Bank Social Safety Nets Modernization Project (P128344)