FOR OFFICIAL USE ONLY Report No: PAD3762 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 100.8 MILLION (US$ 137.5 MILLION EQUIVALENT) TO THE FEDERAL REPUBLIC OF SOMALIA FOR A SOMALIA CRISIS RECOVERY PROJECT April 29, 2020 Urban, Resilience and Land Global Practice Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective as of March 31, 2020) Currency Unit = SDR SDR 0.7327 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Carlos Felipe Jaramillo Regional Director: Ede Jorge Ijjasz-Vasquez Practice Managers: Meskerem Brhane, Robin Mearns Task Team Leaders: Ayaz Parvez, Andrew James Roberts ABBREVIATIONS AND ACRONYMS CBS Central Bank of Somalia CSO Civil Society Organization CERC Contingent Emergency Response Component CPF Country Partnership Framework CRW Crisis Response Window DA Designated Account DRM Disaster Risk Management ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESIA Environment and Social Impact Assessment FAM Famine Action Mechanism FCV Fragility Conflict and Violence FGS Federal Government of Somalia FM Financial Management FMS Federal Member States FINA Flood Impact Needs Assessment FAO Food and Agriculture Organization of the United Nations FCV Fragility, Conflict, and Violence GBV Gender-Based Violence GRM Grievance Redress Mechanism GDP Gross Domestic Product ISP Implementation Support Plan IVA Independent Verification Agent IFR Interim Financial Report ICRC International Committee of the Red Cross/Crescent Societies IDP Internally Displaced Persons IDA International Development Association IFI International Financial Institution IMF International Monetary Fund INGO International Non-Governmental Organization IOM International Organization for Migration IPF Investment Project Financing MIS Management Information System MDA Ministries, Departments, Agencies MoH Ministry of Health MoHADM Ministry of Humanitarian Affairs and Disaster Management MOA Ministry of Agriculture and Irrigation MOF Ministry of Finance MoEWR Ministry of Energy and Water Resources MoPIED Ministry of Planning, Investment and Economic Development M&E Monitoring & Evaluation NDP National Development Plan NDMP National Disaster Management Policy NEOC National Emergency Operations Center OPM Office of the Prime Minister OSV Other Situations of Violence PAD Project Appraisal Document PDNA Post Disaster Needs Assessment PDO Project Development Objective PFM Project Financial Management PIU Project Implementation Unit POM Project Operations Manual PPSD Project Procurement Strategy for Development PSC Project Steering Committee RRF Recovery and Resilience Framework SCRP Somalia Crisis Recovery Project SDREP Somalia Emergency Drought Response and Recovery Project SEA Sexual Exploitation and Abuse SWALIM Somalia Water and Land Information Monitoring SFF-LD Special Financing Facility for Local Development Project SPT State Project Team SIDA Swedish International Development Cooperation Agency SORT Systematic Operations Risk-Rating Tool STEP Systematic Tracking of Exchanges in Procurement TTL Task Team Leaders TA Technical Assistance USAID United States Agency for International Development UNICEF United Nation’s Children Fund UNDP United Nations Development Programme OCHA United Nation’s Office for Coordination of Humanitarian Affairs UNOPS United Nations Office for Project Services WASH Water, Sanitation and Hygiene WB World Bank WBG World Bank Group WHO World Health Organization WFP World Food Program The World Bank Somalia Crisis Recovery Project (P173315) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 9 A. Introduction ...................................................................................................................................... 9 B. Country Context.............................................................................................................................. 10 C. Institutional and Sectoral Context .................................................................................................. 11 D. The Need for an Urgent and Innovative Response ........................................................................ 12 E. Relevance to Higher Level Objectives ............................................................................................. 13 II. PROJECT DEVELOPMENT OUTCOMES ............................................................................ 15 A. Project Development Objective ..................................................................................................... 15 B. PDO-Level Results Indicators .......................................................................................................... 15 C. Project Beneficiaries ....................................................................................................................... 15 III. PROJECT DESCRIPTION.................................................................................................. 16 A. Guiding Principles ........................................................................................................................... 16 B. Project Components ....................................................................................................................... 16 C. Rationale for Bank Involvement and Role of Partners ................................................................... 19 D. Lessons Learned and Reflected in the Project Design .................................................................... 21 IV. IV. IMPLEMENTATION ARRANGEMENTS ....................................................................... 22 A. Institutional and Implementation Arrangements .......................................................................... 22 B. Results Monitoring and Evaluation Arrangements......................................................................... 26 C. Results Chain................................................................................................................................... 27 D. Sustainability .................................................................................................................................. 27 V. PROJECT APPRAISAL SUMMARY ................................................................................... 28 A. Technical Analysis ........................................................................................................................... 28 B. Financial Management ................................................................................................................... 32 C. Procurement ................................................................................................................................... 38 D. Legal Operational Policies .............................................................................................................. 39 E. Social (including safeguards)........................................................................................................... 39 VI. GRIEVANCE REDRESS SERVICES ..................................................................................... 43 VII. KEY RISKS ..................................................................................................................... 43 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 47 ANNEX 1: Gender Analysis ................................................................................................... 56 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 2: Detailed Project Description................................................................................. 58 ANNEX 3: SCRP Roles and Responsibilities ........................................................................... 62 ANNEX 4: Results Monitoring and Evaluation Framework .................................................... 65 ANNEX 5: Climate Co-Benefits: Link to Project Activities ...................................................... 67 ANNEX 6: Risk Log ............................................................................................................... 69 ANNEX 7: Implementation Support Plan .............................................................................. 76 The World Bank Somalia Crisis Recovery Project (P173315) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Somalia Somalia Crisis Recovery Project Environmental and Social Risk Project ID Financing Instrument Process Classification Urgent Need or Investment Project P173315 High Capacity Constraints Financing (FCC) Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [✓] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 15-May-2020 31-May-2024 Bank/IFC Collaboration No Proposed Development Objective(s) To support the recovery of livelihoods and infrastructure in flood and drought affected areas and strengthen capacity for disaster preparedness nationwide Page 1 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Components Component Name Cost (US$, millions) Component 1: Immediate Basic Services and Livelihood Support 30.00 Component 2: Medium-Term Flood Recovery 42.00 Component 3: Longer-Term Disaster Risk Preparedness 39.00 Component 4: Project Management 6.00 Component 5: Contingent Emergency Response 20.50 Organizations Borrower: Federal Republic of Somalia Implementing Agency: Ministry of Finance, Federal Government of Somalia Ministry of Planning, Investment and Economic Development, Federal Government of Somalia PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 137.50 Total Financing 137.50 of which IBRD/IDA 137.50 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 137.50 IDA Grant 137.50 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Page 2 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Somalia 0.00 137.50 0.00 137.50 National PBA 0.00 62.50 0.00 62.50 Crisis Response Window 0.00 75.00 0.00 75.00 (CRW) Total 0.00 137.50 0.00 137.50 Expected Disbursements (in US$, Millions) WB Fiscal Year 2020 2021 2022 2023 2024 Annual 10.80 37.90 37.00 27.80 24.00 Cumulative 10.80 48.70 85.70 113.50 137.50 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Agriculture and Food, Health, Nutrition & Population, Social, Urban, Resilience and Land Water Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ High 2. Macroeconomic ⚫ Substantial 3. Sector Strategies and Policies ⚫ Substantial 4. Technical Design of Project or Program ⚫ Moderate 5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial 6. Fiduciary ⚫ High 7. Environment and Social ⚫ High 8. Stakeholders ⚫ High Page 3 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 9. Other ⚫ High 10. Overall ⚫ High COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Cultural Heritage Relevant Financial Intermediaries Not Currently Relevant NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). Page 4 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Legal Covenants Sections and Description Section I.A.1(a) of Schedule 2 to the Financing Agreement: FGS to establish within two (2) months of effectiveness, and maintain throughout Project implementation, a Project Steering Committee, chaired by Senior Staff from the Prime Minister’s Office, responsible for providing strategic guidance for Project implementation. Sections and Description Section I.A.1(b) of Schedule 2 to the Financing Agreement: FGS to maintain throughout Project implementation a Project Implementation Unit(“PIU”) within MoF, co-managed and co-staffed with MoPIED, responsible for carrying out the day-to-day implementation of the Project and coordinating Project activities among all institutional stakeholders. Sections and Description Section I.A.2 of Schedule 2 to the Financing Agreement: Prior to implementing any activities under the Project in, or for the benefit of, any FMS, FGS to: (i) enter into a MoU with such FMS; and (ii) establish within the respective FMS’s MoPIED, and thereafter maintain throughout Project implementation, a State Project team responsible supporting the PIU in managing the contracts within the respective FMS, assisting the PIU with the design, compliance review and supervision of civil works in the respective FMS, consolidating procurement and work plans of MDAs in the respective FMS, managing the local grievance redress mechanisms, and ensuring compliance with the ESCP. Sections and Description Section I.A.3(a) of Schedule 2 to the Financing Agreement: FGS to select and engage the services of UNOPS within 1 month of effectiveness and maintain them throughout the first 2 years of Project implementation, for UNOPS to assist the PIU with the day-to-day implementation of Component 1 the Project. Sections and Description Sections I.A.3(b) of Schedule 2 to the Financing Agreement: FGS to select and engage the services of one or more service providers and/or international organizations within one (1) month after effectiveness, and thereafter maintain them throughout the implementation of Sub-Component 1.(b) of the Project (i.e. locust surveillance and control operations, and procurement of pesticides). Sections and Description Section I.A.3(c) of Schedule 2 to the Financing Agreement: FGS to select and engage the services of one or more independent verification/audit agency/ies (“IVA(s)”) or consultant(s), within three (3) months after effectiveness, and thereafter maintain it/them throughout Project implementation to carry out qualitative and quantitative assessments on Project impacts and implementation progress. Sections and Description Section I.A.3(d) of Schedule 2 to the Financing Agreement: Prior to implementing the activities under of Component Page 5 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 3(g) and (g), FGS to select and engage and thereafter maintain throughout the implementation of such activities, the services of one or more service providers and/or international organizations (the “Covid-19 Response Consultant(s)”) to be primarily responsible for the implementation of any such activities thereunder. Sections and Description Section I.E.5 of Schedule 2 to the Financing Agreement: FGS and FMS to establish, publicize, maintain and operate accessible grievance mechanisms, to receive and facilitate resolution of concerns and grievances of Project-affected people. Sections and Description Section I.B of Schedule 2 to the Financing Agreement: Prior to the provision any funds and/or the financing of any activities implemented under the Project in/for any FMS, FGS to have entered into a memorandum of understanding with such FMS , setting forth the obligations and responsibilities of the parties thereto in the implementation of the Project, in consistency with this Agreement, the ESCP and the Project Operations Manual. Sections and Description Section I.C. of Schedule 2 to the Financing Agreement: FGS to prepare and adopt a Project Operations Manual in a manner and substance satisfactory to the Association, and thereafter implement the Project, and cause the FMS to carry out their respective responsibilities under the Project, in accordance with it. Sections and Description Section I.E.1 & 2 of Schedule 2 to the Financing Agreement: FGS to ensure and cause the FMS to ensure, that the Project is carried out in accordance with the ESS and the ESCP Sections and Description Section I.D. of Schedule 2 to the Financing Agreement: FGS to prepared and furnish to the Association on an annual basis, by no later than June 15th each year, commencing on June 15th 2021, annual work plans and budgets covering the proposed activities for the following Fiscal year of Project implementation (annual work plan and budget for the first year to be exceptionally submitted by July 15th 2020), and thereafter implement the project as per the respective annual work plan and budgets as approved by the Project Steering Committee and agreed with the Association. Sections and Description Sections I.E.6 of Schedule 2 to the Financing Agreement: FGS to ensure that all bidding documents and contracts for civil works under the Project include the obligation of contractors, subcontractors and supervising entities to comply with the relevant aspects of ESCP and the safeguards instruments and adopt and enforce codes of conduct to be signed by all workers on environmental, social, health and safety risks, and the risks of SEA, GBV and violence against children. Page 6 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Sections and Description Sections I.F.1 through 4 of the Schedule to the Project Agreement: In order to trigger the CERC, FGS to: (i) prepare and furnish to the Association for review and approval a CERC Operations Manual; (ii) appoint and maintain a coordination authority; (iii) determine and agree with the Association that an “eligible crisis or emergency” has occurred; and (iv) prepare and disclosed all safeguards instruments required as per the activities described and agreed by the Association in the in the CERC Operations Manual. Conditions Type Description Effectiveness FGS has prepared, adopted and approved the Project Operations Manual (POM). Type Description Disbursement For Category 1: Until and unless the FGS has hired an environmental and social specialist for the PIU. Type Description Disbursement For Category 2: Until and unless the FGS has prepared and adopted the ESMF, SMP and LMP. Type Description Disbursement For Category 3: Until and unless FGS has a work plan with detailed activities and implementation arrangement for Component 3(g). Type Description Disbursement For Category 4: Until and unless the FGS has: (i) determined and agreed with the Association on the occurrence of an eligible crisis or emergency; (ii) prepared and disclosed the safeguards documents required for the CERC proposed activities; (iii) adequately staffed the CERC coordination authority; and (iv) adopted the CERC Operations Manual. Type Description Disbursement For Category 1: Until and unless the FGS has entered into and MOU with at least 1 FMS. Type Description Disbursement For Category 1: Until and unless the FGS has prepared and adopted the ESMF, PMP, SEP, GBV Action Plan, SMP and LMP. Type Description Disbursement For Category 3: Until and unless FGS has updated the ESFM, SMP and LMP as deemed necessary, as well as the Procedures for Health/Medical Waste Management. Type Description Disbursement For Category 3: Until and unless FGS has hired the COVID-19 Consultant(s). Page 7 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Page 8 of 79 The World Bank Somalia Crisis Recovery Project (P173315) I. STRATEGIC CONTEXT A. Introduction 1. Somalia is in the grip of a climate - and now public health - emergency, compounded by prolonged armed conflict and economic and institutional weaknesses that exacerbate the country’s vulnerability. The interlinkages between climate and environmental change, cyclical drought, poverty, fragility, severe food insecurity, and protracted conflict are arguably more pronounced in Somalia than most countries. People are increasingly caught between deadly extremes– conditions are either too wet or too hot and dry– and those already on the run from violence may be uprooted again by droughts and floods. The country has been struggling to overcome the impacts of a crippling drought from 2016 to 2017 and again in 2019, together with protracted and ongoing armed conflicts that has displaced more than 2.6 million people internally and brought many to the brink of starvation. Cyclical floods and droughts are an increasingly common feature and their co-existence poses a lethal threat. With most Somalis dependent on agriculture (primarily livestock) and forestry, continued climate and conflict impacts wreak havoc with daily life. The ability of Somalis to recover is progressively degraded. Furthermore, the recent coronavirus disease (COVID-19) crisis worldwide has found its way to Somalia, where the first case was confirmed on 16 March 2020. The rapid spread and uncertainty behind this pandemic will further strain the already-fragile healthcare system if action is not taken early to support the country. 2. In late 2019 parts of Somalia experienced some of the worst flooding in the country’s recent history. Moderate to heavy rains caused substantial flooding in low-lying areas along the Shabelle and Juba Rivers, resulting in several deaths and significant damage to infrastructure, crops, property, and livestock. The flooding affected more than a half million people across 17 districts in ten regions in the three states of Jubaland, Hirshabelle, and Southwest with 370,000 people displaced from their homes. In urban centers sewage and flood water mixed, widely contaminating the shallow wells that provide drinking water and leading to repeated outbreaks of cholera. Heavy rains and flooding also damaged infrastructure in existing settlements for internally displaced people (IDPs), affecting at least 154 IDP sites. Economic growth for 2020 and beyond is expected to decline in the aftermath of the floods, with annual real Gross Domestic Product (GDP) projected to drop by 1.5 percent out of an annual projection of 3 percent. Economic losses as a result of the floods are projected to reach US$ 206 million over the next five years. The anticipated deterioration comes as a result of important losses in trade-related activities due to the significant damage to critical infrastructure, such as roads, buildings, and bridges, as well as losses in health and water and sanitation services. Along the Juba and Shabelle river systems, flooding caused displacement, shortages of food, and people’s lives and livelihoods were lost. 3. Swarms of desert locusts threaten food security. To compound an already dire humanitarian situation the heavy rains and wet soils have supported the uncontrolled development and spread of desert locusts across Somalia and much of East Africa. While the impact of the first swarms of locusts on agriculture and livelihoods in Somalia was not as severe as originally feared, owing to crops having just been harvested, there is still a grave risk that current breeding and egg laying in Somaliland and Puntland will lead to fresh swarms moving south in the coming months to the flood-affected states in search of food. The next main cropping season started in April 2020 with the harvestexpected in July. This will coincide with the new generation of swarms, further exacerbating food insecurity and presenting a massive food security threat in already vulnerable areas. An estimated 1.1 million people are experiencing crisis or worse levels of food insecurity and the number in need of urgent food assistance is expected to increase by 40 percent over the next six months. Millions of farmers and herders risk losing their crops, pasture, and main source of income. The majority will be subsistence producers, with little or nothing to fall back on, whose debt levels will increase, compounding an already fragile situation across much of Somalia. The Food and Agriculture Organization of the United Nations (FAO) forecasts indicate between 20 to 30 percent in crop losses, affecting 203,000 people. The worst-case scenario could lead to losses Page 9 of 79 The World Bank Somalia Crisis Recovery Project (P173315) of 50 to 75 percent in crop production, potentially affecting 514,000 people. Faced with the largest locust swarms in 25 years and posing a significant threat to food security and livelihoods in the region, the Federal Government of Somalia (FGS) declared the locust invasion a national emergency on February 2, 2020. 4. Climatic changes which are likely to increase in both frequency and severity strongly impact on-going conflict dynamics. These changes will significantly impact the livelihood of people, especially through the effects on migration and forced displacement. The absence of livelihood options and the increase in poverty contribute to grievances and fragility. The accumulation of household debt is a key vulnerability for those Somalis whose livelihoods are impacted by repeated patterns of climate shocks. Grievances that are linked to group affiliation are particularly serious risk factors as they affect conflicts on multiple levels and are likely to inhibit resolution.1 5. Affected communities and the FGS require comprehensive longer-term interventions to help mitigate future risks. To this end, the Project is partnering with the FGS to work on the design of the financing for the immediate recovery and reconstruction phase, as well as future investment in Disaster Risk Management (DRM). Experts in flood risk management and food security confirm that isolated interventions and measures will not work, and that an integrated flood-drought response and preparedness regime is required in the medium to long term. B. Country Context 6. This is an important year for Somalia. There is a possibility of inclusive, peaceful, and credible national elections, as well as the potential for accelerated economic growth and development resulting from debt relief and progress towards the transfer of security responsibilities from the African Union Mission in Somalia (AMISOM) to the Somali forces. After two decades of conflict, state collapse, and weak transitional governments, the FGS was established in 2012, with a “road map” towards stabilization, recovery, and reconstruction. The Federal system of governance, with its newly formed Federal Member States (FMS), opened a new chapter for Somalia’s development and offers hope for a stable future. However, the federation process is complex and presents both a significant development opportunity, as well as uncertainty over representation and power and resource-sharing. 7. Building state legitimacy and citizen trust requires more work. There has been a rise in the opportunities for cooperation at sub-national level during the past couple of years. Administrative structures have been established since the establishment of the more recent FMS and district councils are being formed in a number of them, completing a process that had begun in the 1990’s in Somaliland and Puntland. The gradual deve lopment of local governance and local service delivery is an opportunity to localize the Humanitarian-Development nexus by empowering local and regional stakeholders to make assistance more responsive and more relevant to community needs and aspirations.2 The Federal system can only take root if there is bottom-up citizen engagement and trust building. 8. Recurrent natural disasters and conflict stymie development. The agriculture sector remains the backbone of the economy at 75 percent of GDP - one the highest sectoral shares in the world.3 The livelihoods of roughly half of Somalia’s estimated population of 15 million individuals is reliant on pastoralism or agro-pastoralism, which implies that a significant portion of Somalia’s population remains highly vulnerable to climate change and natural disasters. While spending by the FGS has increased significantly over the past five years, it remains concentrated on security and public administration, reflecting the immediate priorities of peacekeeping and state-building, and neither the FGS nor the FMS 1 Climate-related Security Risks & Peacebuilding in Somalia. Stockholm International Peace Research Institute, October 2019. 2 Think local. Governance, humanitarian aid, development and peacebuilding in Somalia. Ecdpm, March 2019. 3 World Bank. 2018. Country Partnership Framework for the Federal Republic of Somalia. Washington, DC: World Bank. Page 10 of 79 The World Bank Somalia Crisis Recovery Project (P173315) is able to allocate meaningful resources for early recovery and development.4 Pursuing integrated approaches and bridging the divide between humanitarian aid, development cooperation, and peacebuilding are generally seen as critical pre-conditions for making progress. 9. The Somali army reclaimed significant territory formerly controlled by Al Shabab, facilitating the restoration of some peace and security. The military battlefield in Somalia is highly complex and populated by many armed actors, though it is the radical jihadist group al-Shabaab that has captured international attention. More than 60 warring parties are present in in the country, ranging from clan and warlord militias to various other militant groups5. Drought, competition over limited natural resources, and poor living conditions also fuel fighting in rural areas. As such, Government access beyond urban areas and key towns and cities continues to be restricted. In turn, the Government is limited in its ability to coordinate and oversee humanitarian and rehabilitation work and facilitate the provision of basic services. Re-establishing the capacity of local governments to respond to natural disasters contributes to their legitimacy and builds state-citizen trust. 10. The vulnerability of women and girls to natural and conflict-related shocks remains high. Nearly seven out of ten Somalis live in poverty which is widespread and pervasive, particularly among rural residents, IDPs settlements, and children. The majority of the population involved in the coping economy, adopts a patchwork of solutions, including migration, seeking charity, taking to negative coping mechanisms, and limiting consumption. Further, communities and IDPs dislocated from the socio-economic protection of the clan structures are significantly more susceptible to such behaviors. Traditional and religious norms limit women’s roles outside the domestic sphere and hinder their participation in political and public decision-making forums. Despite their increasing engagement in economic activities, women are thought to be far poorer than men because wealth is unevenly distributed in the household and across the wider economy. Women’s participation rate in the labor market remains low at 37 percent, as compared to 58 percent of men, and is predominantly concentrated in the agriculture sector. Access to basic services, food, and shelter, together with erosion of assets following floods and drought, all present heightened risks for women, particularly female-headed households and female IDPs. Somalia is also a high-risk country for gender-based violence (GBV) – and the relatively large distances to communal services and livelihoods aggravate this risk. C. Institutional and Sectoral Context 11. Somalia’s newly-established Federal system (2012) is a work in progress. While political decentralization has led the shift from a highly centralized unitary system to one of a Federal Government with six FMS, both administrative and fiscal decentralization efforts require greater clarity, direction, and momentum. While the FMS interact with the FGS through the National Development Council and the Finance Ministers Fiscal Forum, given the lack of architecture to deal with disaster preparedness, mitigation, and management, establishing a viable policy framework and institutional coordination mechanism both horizontally and vertically is vital to building long-term response capacities. As capacities in the FMS slowly strengthen, any engagement must be carefully structured to reflect the emerging decision-making environment and to strengthen the social contract. Therefore, any engagement must support bottom-up planning and accountability. 12. Somalia’s disaster management and coordination capability are limited. The Ministry of Humanitarian Affairs and Disaster Management (MoHADM) was created in 2016 and is leading the development of a National Humanitarian 4 World Bank. 2019. Draft Somalia Economic Update. Rebuilding Human Capital to Return to Prosperity . Fourth Edition. Washington, DC: World Bank. 5 Hybrid Confict, Hybrid Peace. How militias and paramilitary groups shape post-conflict transitions, United Nations University, 2020. Page 11 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Strategy and the implementation of the National Disaster Management Policy (NDMP).6 The FGS is also setting up a National Emergency Operations Center (NEOC) led by an inter-ministerial Committee of the Office of the Prime Minister (OPM) and MoHADM. Progress has been slow, as these nascent formal public institutions are beset by limited human capacity, overlapping mandates, and inadequate financial resourcing. FMS are also beginning to establish disaster mitigation and management systems, despite having limited to no discretionary financing through the member state budgets. The evolving institutional landscape7 is therefore both complex and often characterized by fragmentation of mandates and divergence across relevant FGS and FMS institutions, although the ongoing constitutional review process aims to clarify and codify coordination arrangements. Despite recurrent climate-related crises, the Government typically deals with them on an ad hoc and singular basis, rather than a comprehensive and long-term approach to disaster risk management and resilience building. Currently, the institutional landscape could benefit from the rapid completion of the preparation of the flood risk management strategy, improvements in climate or risk informed infrastructure investment planning, asset maintenance, urban planning, land use regulation, and strengthened community engagement. 13. Somalia lacks a nationally owned and managed emergency alert and early warning system. Currently early warnings are produced by the FAO Somalia Water and Land Information Monitoring (SWALIM), the Food Security and Nutrition Analysis Unit (FSNAU), and the Famine and Early Warning Systems Network (FEWS NET). Seasonal climate outlook information is provided by the Inter-Governmental Authority on Development Climate Prediction and Application Center. Government agencies lack the capacity to translate and disseminate warnings in order to trigger effective planning and response measures by local institutions and at-risk communities. Unless targeted and specific interventions are prepared to address these challenges prior to a national emergency, or a national strategic food security reserve put in place, even if institutions are strengthened, they will lack the necessary systems vital to a rapid response. 14. The National Development Plan (NDP-9) provides a new opportunity to advance Government-led coordination. The recently finalized NDP (2020-2024) aims to set a clear path to build the economy and reduce poverty, while focusing on inclusivity, resilience-building, and durable solutions to displacement. The NDP-9 seeks to simplify and harmonize existing frameworks and plans, including the Somalia Recovery and Resilience Framework (RRF), National Reconciliation Framework, NDMP, Durable Solutions Strategy for internal displacement, the Drought Response Plan, and the Humanitarian Response Plan. This harmonization exercise will facilitate coordination and alignment across development and humanitarian actors. The existence of multiple frameworks and plans across Government and between partners currently hampers a coordinated and aligned approach. D. The Need for an Urgent and Innovative Response 15. The Project intends to promote a ‘whole-of-government’ approach to incentivizing cooperation and enhancing state-citizen-trust through state-led responses to multiple crises confronting the country, including floods, drought, political instability, locust invasion, food insecurity, and the coronavirus. For a long time, much energy and investment has gone into planning top-down processes in Somalia, from establishing a federal state structure to pushing a 6The NDMP, approved in October 2017, presents a government-wide, holistic approach to disaster management, such as setting up formal coordination structures (National Disaster Management Council and Somalia Disaster Management Coordination Group), including a corresponding Implementation Framework, identifying key actions to operationalize the national policy. UNDP, through the Building Disaster Risk Management Capacities in Somalia Project (2020-22), aims to strengthen MoHADM and other relevant institutions to enable NDMP success. 7 Regionally, Somaliland and Puntland have set up their own independent DRM agencies 7 and report to their respective regional government. The other FMS’ disaster management function resides in the state MoPIED (Jubaland) or state MoHADM (Hirshabelle, Galmadug, and South West State). Page 12 of 79 The World Bank Somalia Crisis Recovery Project (P173315) humanitarian-development agenda.8 The greatest potential for ‘success’ – be it to sustain a federal system or to achieve development – lies at a local level with the active participation of FMS. To that end, the Project will support a local governance agenda that empowers nascent FMS and local authorities to visibly support local communities in disaster response and preparedness through a “citizens-upwards” approach built on the principles of meaningful consultation, transparency, and fairness. The ability of the Project to operate safely in some areas will hinge on the inclusiveness of its approach. Lack of coordination around disaster management, economic resilience and inclusion undermine a cohesive approach and risk long-term confusion. The timeliness of this intervention is therefore important; laying the foundation of the future system for managing and mitigating disaster risks. 16. Building FMS disaster prevention and preparedness capacities will go a long way to reducing future humanitarian spending. Somalia’s history has been of cyclical short-term humanitarian responses and a failure to invest in more durable solutions and essential infrastructure. Supporting the establishment of prevention and preparedness systems will lower the loss of human life, reduce the costs of humanitarian delivery long term, and will strengthen the impact of the development nexus. As a result, the economic multipliers include long term operational efficiencies, gains from minimizing the risks of duplication, and the positioning of more effective solutions that save lives and protect livelihoods at a lower cost. Validation of the Scale of Damages and Needs for Flood Recovery 17. The flooding caused more than US$ 270 million in damages. In December 2019, the World Bank and FGS initiated a joint exercise to assess the losses and damages caused by the floods and to develop a strategy for immediate recovery and longer-term resilience building. The result was the Somalia Flood Impact and Needs Assessment (FINA)9, which assessed and quantified flood recovery and resilience building needs across eight sectors.10 Nearly one third of the overall damage is on transport (roads, bridges), with significant damage also recorded on water supply and sanitation, health facilities, and river embankments. The impact on the agriculture sector was found to have been narrow and localized, with the rains benefiting overall crop production and pasture, although the rains have also supported the uncontrolled spread of desert locusts. 18. Recovery needs are assessed to be in the vicinity of US$ 350 million .11 Sectors with the highest recovery needs include transport (US$ 115 million), followed by health (US$ 46 million), and education (US$ 35 million). The World Bank estimates that together with donor pledges and this Project, a reconstruction and recovery funding gap for the floods of US$ 297 million remains.2 For the desert locust response, FAO estimates nearly US$ 57 million in total needs for Somalia (through early 2021), with a funding gap of US$ 34 million. This is on top of the prolonged impact of the 2016/17 drought and other crisis afflicting Somalia if the past several years. E. Relevance to Higher Level Objectives 8Think local. Governance, humanitarian aid, development and peacebuilding in Somalia. Medinilla et al, ecdpm, March 2019. 9The FINA, while specific to Somalia, is synonymous with, or the same as a rapid Post-Disaster Needs Assessment (PDNA) in that it is a government-led assessment of damages, losses, and needs across multiple sectors, harmonizing support and information from the World Bank, United Nations, and other international and national actors. Methodologically, it employs the same tools and techniques as a PDNA, and the end- product is also exactly the same which is a comprehensive report on disaster impacts, needs and recovery strategies. Page 13 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 19. The SCRP aligns with the International Development Association (IDA) 19 core priorities and the World Bank Group’s (WBG) new Fragility Conflict & Violence (FCV) strategy.12 The FCV Special Theme of IDA 19 aims to further strengthen IDA’s effectiveness in Fragile and Conflict-affected Situations, supporting countries to escape the fragility trap and exploiting IDA’s comparative advantage at the security-development nexus. The Project uses a flexible approach to enable it to respond to rapidly changing circumstances and is adapted to address the root causes of fragility. Further, the Project will engage in partnerships with a diverse range of stakeholders for effective delivery. 20. The SCRP aligns with the Country Partnership Framework (CPF, Report # 124734) (FY19-22), with its strong focus on poverty alleviation and resilience building; namely: (i) strengthening institutions and expanding access to services; and (ii) building Somalia’s structural resilience to fragility and shocks. Somalia is re-engaging with IDA after two decades of arrears to the World Bank and other international financial institutions. On reaching the Decision Point, Somalia’s eligibility for debt relief has been confirmed and the country is now IDA eligible, supporting full International Financial Institution (IFI) re-engagement and securing IDA’s Turn-Around Regime to channel new resources towards the delivery of NDP9 priorities. The request for IDA Crisis Response Window (CRW) is timely and concurrent with the WBG re- engagement trajectory over the coming months. SCRP will complement, with quick impact and disaster risk management elements, the key IDA-funded projects that are already active in Somalia including the Shock Responsive Safety Nets for Human Capital Project (P171346), the Urban Resilience Project (P170922), and the Biyoole or Water for Agro-Pastoral Productivity and Resilience Project (P167826), all of which aim to build long-run resilience at the community level. 21. The Project is aligned with FGS’s NDP-9. The Plan is informed by an analysis of the drivers of poverty, which include fragility, conflict, insecurity, lawlessness, weak and fractured government, and climatic shocks. It is built around the four pillars of (1) inclusive politics, (2) improved security and the rule of law, (3) inclusive economic growth, (4) and improved social development. 22. The SCRP will help operationalize the Government-led RRF. Launched in July 2019, the RRF is conceived as a way of supporting government-led coordination of preparedness, recovery, and resilience-building activities, while contributing towards the realization of the ambitious vision set out by the new NDP-9. The RRF will strengthen existing aid coordination to allow available funds to be matched with priority needs, while monitoring recovery and resilience- related outcomes. The SCRP will include activities to increase the capacity of Government to anticipate and reduce future disaster risk and better coordinate its responses. 23. The SCRP will also help facilitate approaches for anticipating and mitigating food security crises in Somalia as promoted by the Famine Action Mechanism (FAM). The FAM is a partnership between the World Bank, United Nations, INGOs and donors dedicated to scaling up early action to protect lives and livelihoods from emerging food security crises. Somalia has been designated a first mover country for the FAM to pilot these efforts. Investment in priority-setting and planning under the SCRP will provide a solid platform for effective and efficient delivery of financing from the new IDA Crisis Response Window Early Response Allocation (CRW ERA) which will launch in IDA19 (July 2020). 24. The Project is aligned with the World Bank’s climate change and resilience agenda. In the Action Plan on Climate Change Adaptation and Resilience the Bank acknowledges the urgency of the development impacts of climate change, especially in FCV countries. It commits to scaling up adaptation efforts to build resilience against climate and disaster impacts, with a focus on interventions that directly target and engage with vulnerable population groups. Page 14 of 79 The World Bank Somalia Crisis Recovery Project (P173315) II. PROJECT DEVELOPMENT OUTCOMES A. Project Development Objective 25. The Project Development Objective (PDO) is to “support the recovery of livelihoods and infrastructure in flood and drought affected areas and strengthen capacity for disaster preparedness nationwide.” B. PDO-Level Results Indicators 26. The achievement of the PDO will be monitored by the following outcome indicators: a) Number of people with improved access to livelihoods support b) Number of female-headed households benefiting from livelihood inputs c) Number of households with access to improved infrastructure and basic services d) Number of people benefiting from improved flood risk management e) Improved national disaster preparedness and response mechanisms C. Project Beneficiaries 27. The Project will support people affected by the impacts of floods and drought, as well by locust infestations. This includes around 300,000 households, including a focus on female-headed households, and nearly 160,000 livestock, as well as rehabilitated assets for over 40 communities. On a ratio of five individuals per household, this amounts to over 1.6 million persons. The most vulnerable populations, farming communities, IDPs, rural and urban communities, and host communities will be supported through multiple interventions. D. Gender Considerations 28. The SCRP activities will target and benefit women13 by ensuring that dedicated consultations will be carried out with women and female-headed households to identify and address their unique needs. While female-headed households existed prior to the flood, their number has increased following the disaster. Through the early recovery and locust response components, immediate and integrated livelihoods and basic services will be provided to women and female-headed households affected by the floods. In light of women’s increased vulnerability to sexual exploitation and abuse and other forms of GBV, the Project will look to strengthen Gender-Based Violence (GBV) and child protection interventions, with a focus on identification and strengthening of referral pathways and GBV service providers to enable multi-sectoral, survivor-centered care for GBV survivors. Given women’s weaker engagement in decision-making structures, the Project will aim to ensure women’s inclusion and participation in key decision-making bodies, including participation in development of the integrated community preparedness, adaptation, and response plans. Finally, the Project will also seek to ensure greater gender balance in recruitment and retention of Project-related staff; for example, by ensuring the Project Implementation Unit (PIU) also contains a balance of qualified women and men. 1. Gender related indicators 13 Actions relevant to addressing the gender gap are discussed in each relevant interventions of the PAD but are summarized in this section. See also Annex 1, Gender Analysis Page 15 of 79 The World Bank Somalia Crisis Recovery Project (P173315) A. Number female-headed households benefiting from livelihood inputs B. Number of initiatives/projects identified by females that been addressed by the Project III. PROJECT DESCRIPTION A. Guiding Principles 29. An inclusive Government-led process. The SCRP is designed to create confidence in local structures and improve Government-citizen trust through community engagement, Government positioning and communication. Institutional arrangements allow for a high degree of cooperation and coordination between the FGS and FMS. The Project emphasizes building a capable and effective platform up front, both within the PIU and at the FMS-level to deliver investments and strengthen and reinforce Government legitimacy and citizen engagement. A focus on the sub-national level will also strengthen the social contract and help build bottom-up preparedness and prevention capacities. 30. A localized approach. Legitimacy of the Somali Federal system rests on stabilization and development at the sub- national level; through newly established state and non-state clan-based structures. The SCRP institutional arrangements represent an opportunity to localize the humanitarian-development nexus by empowering local and regional stakeholders to make assistance more responsive and relevant to community needs. Linkages with the RRF, with the World Bank’s supported portfolio of resilience-building activities and development of ‘off-the-shelf’-projects that can be scaled will be critical. 31. A flexible design and adaptive approach to project design and management. A criteria-based selection developed by the FGS and the FMS will allow for project resources to be allocated proportionally to needs established in the FINA report, while considering local political economy dynamics. This approach will facilitate demand-driven planning through the production of sector investment plans through cross-sectoral coordination and longer-term programming at a local level designed to increase the likelihood of ownership and delivery. The Project will also incorporate build-back-better standards, ensuring that all assets and services are designed to be climate and disaster-resilient. 32. An integrated multi-sector response. A multi-sectoral approach (agriculture, water, health, transport) will provide immediate support to the affected people over the first six to twelve months, while concurrently starting to rehabilitate community and public infrastructure and establish the analytic and policy groundwork for longer-term investments over a four-year period. 33. Strategic partnerships. Strengthening state/non-state partnerships for delivery is a key objective of SCRP and is in line with international best practice for resilience-building work. Notwithstanding the objectives of strengthening Government systems, the Project will therefore utilize partnerships on a selective basis where Government capacity or access would hamper implementation, especially for the early recovery and locust components, or where non-state actors have the capacity to deliver more responsively. The use of a technical and project management agency to support the Government will facilitate early and effective delivery, although the Government will remain responsible for overall coordination and monitoring. B. Project Components14 14The Project activities are a broad menu derived from the FINA and will be prioritized by government together communities, within the Page 16 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 34. Component 1: Immediate basic services and livelihood support (SDR 22, US$ 30 million equivalent) to the flood- affected states of Hirshabelle, South West, and Jubaland and locust-affected areas nationally through: (a) establishing a cash-for-work scheme for vulnerable households in Flood and/or Drought Affected Areas; (b) controlling the desert locus population through ground and aerial spraying operations and carrying related impact assessment and surveillance activities; (c) restoring and protecting farmers’ capacity for agricultural production through the provision of inputs, the pro-positioning of feedstock, the control of vectors and vector-borne livestock disease; (d) revitalizing basic health provisions strengthening response services and referral pathways for survivors of GBV; and (e) supporting household hygiene promotion and treatment. 35. Component 2: Medium-term flood recovery (SDR 30.8, US$ 42 million equivalent) to rehabilitate critical public and community infrastructure15 in line with build-back-better and climate-resilient standards. The component will rehabilitate water and sanitation systems, broken or non-functioning pre-existing flood control systems (e.g., embankments, drainage, irrigation canals and restoration of river channels through dredging), health facilities, bridges, and small feeder roads. It will also support local mitigation efforts for risk reduction, such as slope protection and environmental rehabilitation. 36. Component 3: Longer-term disaster risk preparedness (SDR 28.6, US$ 39 million equivalent16). This component will strengthen the institutional capacity and preparedness of governmental ministries agencies and departments to respond to flood and drought-related emergencies through, inter alia: (a) piloting integrated flood-drought preparedness and response solutions including community level structural and non-structural interventions; (b) carrying out flood risk management strengthening enabling policy and institutional framework, flood risk assessment and hazard mapping, and pilot for structural flood risk reduction interventions; (c) supporting hydromet and early warning systems for the generation and dissemination of hydromet data; (d) operationalizing the National Drought Recovery and Resilience Framework Secretariat in MoPIED, institutionalizing investment planning processes, aid tracking, inter- institutional coordination and programmatic monitoring and evaluation; (e) establishing the National Emergency Operations Center and developing and rolling out public-civil society collaboration models for crisis response and preparedness; (f) establishing a locusts early warning system; (g) strengthening the Integrated Disease Surveillance and Response System and enhancing laboratory capacity for the timely detection of pathogens (including for COVID-19); and (h) rehabilitating, developing, and equipping selected health facilities for the delivery of essential health services. 37. Component 4: Project Management (SDR 4.4, US$ 6 million equivalent). This component will strengthen the institutional capacity PIU and State Project Teams for the implementation of the Project, including procurement and financial management activities and audits, preparation of subproject designs and construction supervision, implementation of environmental and social monitoring and mitigation therefore, quality assurance responsibilities, technical management and oversight, grievance redressal system (including protection from GBV/SEA and incidents referrals), Project monitoring and evaluation (including independent verification agents [IVA]) and reporting requirements. available financing envelope. More details in Annex 2. 15 Community infrastructure could include: (a) small-scale community self-built and self-maintained infrastructure; (b) community infrastructure developed, financed, maintained, and operated through non-public means such as NGOs, bilateral funding programs, etc.; and (c) small-scale community infrastructure that may have been created through public financing but was handed over to or fell into community hands for maintenance and upkeep. 16 Includes US$ 2.5 million from the IDA 2019 national PBA for the COVID-19 response. Page 17 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 38. Component 5: Contingency Emergency Response Component (SDR 15, US$ 20.5 million equivalent). This Contingency Emergency Response Component (CERC) is included in the Project in accordance with World Bank Policy on Investment Project Financing (IPF), paragraph 12, Projects in Situations of Urgent Need of Assistance or Capacity Constraints. There is a moderate to high probability that during the life of the Project Somalia will experience natural or man-made disasters, and major disease outbreaks of public health importance which causes a major adverse economic and/or social impact, which will result in a request to the Bank to support mitigation, response, and recovery in the areas affected by such an emergency. In the event of such an emergency, the CERC will serve as a first-line financing option for a response. Additionally, the CERC is flexible enough to incorporate the new CRW ERA criteria so that it can be mobilized as part of an early response to an eligible food security crisis or disease outbreak. 39. Performance-based work planning and progress allocations. Project resource allocation to the FMS will be determined progressively based on specific performance criteria defined in the Project Operational Manual (POM). These criteria will include the FMS’ compliance with agreed implementation processes, implementation progress towards the achievement of the results targets set for each state, and compliance with various safeguards and fiduciary standards. This is a risk-mitigation tool to ensure that delivery performance is rewarded. 40. Project Coverage and Duration. The Project targets the three flood-affected states of Hirshabelle, South West, and Jubaland, while advancing a national approach to the locust response, longer-term resilience building, and the CERC. The financing instrument of the proposed Project is an IDA-based IPF, with an operational life of four years. The Project’s early recovery and locust preparedness activities will likely take six to twelve months to complete, while an overall four- year project duration is proposed to: (a) allow the completion of infrastructure activities to building-back-better standards; (b) allow time for the FGS-FMS project management arrangements to become functional, and (c) support longer-term resilience building and risk management within the Government. 41. Approach for subproject selection and community/beneficiary targeting. Targeting under the Project will be informed by the inter and intra sectoral distribution of needs identified under the FINA and Drought Impact Needs Assessment, and further refined through a systematic and criteria-based sectoral and geographic prioritization, temporal sequencing and investment planning; to be discussed and validated at the community-level. This methodology will also carefully consider clan dynamics in facilitating or hindering project implementation. The proposed decision-making model under the Project is based on the principle of iterative “top-down criteria setting and strategic oversight of implementation”, combined with “bottom-up need assessment, work planning and implementation controls”. This process will entail the following steps: (a) prioritization and sequencing of activities across sectors and states to identify broad typologies of interventions, through an inclusive process coordinated by the RRF secretariat and the PIU and involving the relevant FGS and FMS MDAs; (b) development of first year investment plans (and subsequent yearly plans), including identification of subprojects, by FMS MDAs and International Non-Governmental Organization (INGO) consortium that is gender and conflict-risk sensitive, in consultation with local governments and community leaders, coordinated by the State Project Teams and Federal MDAs; (c) approval of workplans and subprojects by the Project Steering Committee, and; (d) implementation of subprojects by FMS MDAs with procurement and other technical support by the PIU, FGS MDAs where necessary, and technical support service providers engaged by the PIU. 42. Targeting Scheme and Broad Criteria: To avoid the risk of elite capture, the SCRP seeks to exclusively benefit highly vulnerable groups, as the crises has had a disproportionate impact on women, girls, children, the elderly, and IDPs, and people living with disabilities. Consultations will be carried out with vulnerable groups to identify and address their unique needs, including the use of sex-disaggregated surveys and focus groups, and vulnerability-based selection criteria to prioritize their inclusion as project beneficiaries. Therefore, Project investments are anticipated to provide Page 18 of 79 The World Bank Somalia Crisis Recovery Project (P173315) higher benefits to vulnerable groups (e.g., cash-for-work, food inputs, etc.) in most if not all proposed activities. Specific geographic locations would be drawn from the affected states. A targeting framework developed by the PIU, to be detailed in the POM, would aim to support interventions with an objective method to rank priority areas for interventions in the different states. Specific indicators that would be assessed as part of the geographic targeting may include impact of the crises, poverty rate, food insecurity, concentration of poor people, number of IDPs, presence of other partners, and lack of operating constraints. A project-targeting weighted index would be developed with different project teams given the flexibility to assign different weights to indicators of particular importance to their interventions. Further, community-based targeting will be used to select eligible households in each of the selected areas. Communities would be selected through vulnerability assessment and mapping, where feasible. 43. Climate co-benefits. The investments under the Project will provide substantial climate co-benefits, for example, i) the rehabilitation of critical infrastructure and services will help to improve the capacity of vulnerable populations to cope with climate-induced stressors, ii) investments will be designed and constructed in a resilient manner, i.e. they are planned, designed, built and operated in a way that anticipates, prepares for, and adapts to changing climate conditions. To that end, the criteria-based prioritization will screen and favor investments that maximize climate co-benefits, to be further elaborated in the POM. C. Rationale for Bank Involvement and Role of Partners World Bank’s Added Value 44. Sustained engagement by the World Bank and other development actors at this critical stage is important to mitigate future risk and ensure interventions produce higher returns. Firstly, the multitude of humanitarian challenges in Somalia have the potential to draw focus from critical ‘hold the line’ development actions. Development approaches are required to reduce risk and vulnerabilities through strengthened state-citizen trust and accountability, build resilience, and improve the capacities of institutions. Secondly, the importance of strengthening links between the FGS, FMS, and communities should not be underestimated in support of the enhancement of government legitimacy. 45. Leading a coordinated multi-sector and multi-partner resilience-focused response. The SCRP involves multiple Global Practices within the World Bank and the Task Team coordinated with several key partners, including the United Nations Development Program (UNDP), FAO, the UN Office for Coordination of Humanitarian Affairs, World Health Organization (WHO), World Food Program (WFP), and the United Nation’s Children Fund (UNICEF). NPD-9 has fully adopted the language of resilience, which it presents as a way of moving forward from a reactive to a proactive approach to breaking endless cycles of vulnerability. 46. Local development to the delivery of services. Institutional arrangements are designed to help develop the local governance agenda that empowers nascent and fragile FMS to be more responsive to their communities. The SCRP will be an important instrument for the FGS to operationalize its RRF, drawing on the priority interventions identified in the RRF and assuring that that the most important recovery and resilience needs are met, while providing technical assistance to reinforce Government’s capacity to coordinate and facilitate recovery planning and engage with local communities. 47. Multi-year predictable and flexible financing which integrates long-term development considerations of institutional support and sustainability. The World Bank’s coordination and support is instrumental to galvanize recovery financing based on the FINA findings, particularly given that the FGS only recently achieved arrears clearance to the Bank Page 19 of 79 The World Bank Somalia Crisis Recovery Project (P173315) and has been largely cut off from direct development financing. Without the World Bank’s substantial financial support, there is a significant risk of a worsening humanitarian and development crisis. 48. Leveraging the current World Bank program in Somalia.17 The proposed operation will complement and leverage the Bank’s ongoing and past program in Somalia.18 For example, it will build on the learning from the past Special Financing for Local Development Project (SFF-LD, P172389), implemented through the same PIU in MOF, and will align with and leverage the experiences of the Somalia Urban Resilience Project II (P170922) being implemented through the United Nations Office for Project Services (UNOPS) and the Biyoole Project’s engagement through FGS and FMS Ministry of Planning, Investment, and Economic Development (MoPIED), as well as aligning with the Shock Response Safety Net Project’s beneficiary registry. The Project may also serve as a mechanism for preparing anticipatory actions informed by the FAM and help mobilize resources for eligible events under the new CRW Early Response Allocation. 49. Convening power and close coordination with key partners. The World Bank is also a trusted convener of key actors, including international finance institutions, donors, and governments, and an increasingly important leader driving collaboration and alignment at the humanitarian-development nexus in FCV contexts. To that end, the Project has been designed following an inclusive multi-stakeholder and multi-partner process, beginning with the FINA, which forms an important source of information for partner interventions. Additionally, the World Bank offers partners an important source of support to implementing partners across key technical areas, drawing on lessons learned from other FCV and emergency contexts (see below for Lessons Learned and Reflected in Project Design). 50. Additionally, the partners in theSomalia Multi Partner Fund (MPF) have been consulted on the suggested design and implementation modalities for the SCRP. The MPF includes the United States Agency for International Development (USAID), the United Kingdom’s Department for International Development, the Swedish International Development Cooperation Agency). Each organization provided useful feedback to the World Bank and the proposed SCRP will continue to be closely coordinated with partners. The added value of the United Nations and NGO Consortia 51. The FGS will directly engage a limited number of UN agencies and INGO consortia to support project implementation under the emergency recovery and CERC components. The majority of finaning from other partners goes to support delivering humanitarian relief and small scale development projects at the community level. They will help reinforce Government leadership and visibility for the provision of services under the SCRP; for example, through Government positioning. Additional partners may be added based on emerging needs and the capacity of the Government to deliver. Early support to the PIU through the UNOPS allows the FGS to quickly set up and implement the emergency components, while concurrently building Government project management capacity. On the locust prevention and response, the FAO is playing a pivotal and is closely involved in all key aspects of the prevailing Somalia locust control initiatives, while WHO and UNICEF are key actors supporting the Government’s response to the COVID- 19 pandemic. INGO Consortia19, with broad geographical footprints and tried and tested community engagement processes, are being considered by the FGS as implementing partners under the early recovery component. With successful implementation track records and working together, they could represent a powerful partnership to provide services to flood-affected populations. It is recognized that a range of other UN agencies, such as UNDP and WFP, will need to be regularly consulted to bring in their expertise on various specialized subprojects. This could take the form of 17 Annex 7: Implementation Support Plan 18 Includes 13 active projects and five in pipeline 19 Well established groups of CSOs operating under umbrella arrangements Page 20 of 79 The World Bank Somalia Crisis Recovery Project (P173315) putting in place systems for coordination across humanitarian-developmental interventions in the very least but could also entail formally including them as implementation partners where warranted. D. Lessons Learned and Reflected in the Project Design 52. The Project design draws on several lessons learned from previous operations, particularly in FCV and emergency contexts, while also building upon the successful experience of the SFF-LD. That Project, on public sector and civil collaboration for disaster response, was implemented by the same Federal Ministry of Finance (MOF) PIU proposed for SCRP and was the first time the FGS directly contracted NGOs for a government-led response20, At the same time, the 2017 US$ 50 million IDA CRW exceptional grant Somalia Emergency Drought Response and Recovery Project (SEDRP, P163830) was implemented through FAO and ICRC.21 Lessons include: a) Engaging early in complex crises and cutting across the perceived divide between humanitarian and recovery interventions by providing early recovery support particularly to the most vulnerable and impacted people, and combining that with project components that help clients in transitioning from early to medium-term recovery and resilience building activities; thus, also operationalizing the World Bank’s corporate priority and inter-agency agenda on supporting “the Humanitarian-Development Nexus”; b) Engaging directly with partners on the ground and instituting direct third-party implementation arrangements, for the full or parts of projects, especially where client governments lack capacity. The World Bank has, in recent times, demonstrated an increased ability to work directly, quickly, and effectively through external partners – including in Somalia, despite organizational differences with partners, in responding at-scale to acute and complex emergencies in FCV countries, while complying with strict World Bank standards. This requires intensive interaction, tolerance for differing systems, and gradual and incremental institutional cross-learning across Bank task teams and implementation partners through the design and implementation of such projects; c) Providing timely and flexible financing through programmatic rather than overly projectized approaches can help not only delivering quickly but also helping to speed up disbursements and reducing risks. In several cases, the World Bank has been able to provide quick support in dire and worsening humanitarian emergencies using programmatic approaches that allowed it to finance “strategic chunks” of the ongoing government or partner programs, flexibly, according to broad strategic criteria. This provided a mix of early and medium-term recovery support while bringing in elements of resilience building; d) Having project designs that maximize flexibility and fungibility across components. A programmatic or broad principles approach allows the setting of strategic criteria for funds use within a set of broad criteria, while activities could be flexibly reprogrammed according to changing circumstances. A Project Results Framework that includes target ranges for some indicators instead of absolute target values, with broader project activity descriptions allows for greater flexibility during implementation; 20 These emergency response activities were implemented through an NGO consortium – Building Resilient Communities in Somalia (BRCiS). 21 Abyrint, “Getting to government-led disaster response capability in a fragile situation - The Do’s and Don’ts learned from government led disaster response management in Somalia 2017-2018”, March 2019 and World Bank, SEDRP Implementation Completion and Results Report (# ICR00004636), March 18, 2019. Page 21 of 79 The World Bank Somalia Crisis Recovery Project (P173315) e) Using retroactive financing and advance contracting as a strategic tool but on a selective basis . The World Bank’s recent experiences in complex emergencies and FCV situations highlight the benefits of using retroactive and advance contracting as tools to immediately contribute towards ongoing crises by freeing up client government or in cases, partner resources and scaling-up ongoing early and medium-term recovery interventions; f) Deferring safeguards to implementation in processing and preparing such projects is a choice worth making in emergency situations, but in most other respects, the necessary due diligence needs to be ensured by using a “surge model” under which task teams can have multi-sector teams, supported by the necessary safeguards and fiduciary staff working closely to meet tight delivery timelines. It is important, however, to mobilize these teams in parallel so that technical, safeguards, and fiduciary reviews can be conducted almost simultaneously; g) Using independent verification agent tools for better M&E. The World Bank and the Government may consider developing monitoring mechanisms for directly engaging independent verification agents, using the World Bank’s own resources, or through multi-partner-financed arrangements, as has been done in some countries. Using government or implementation partner funding under projects for hiring independent verification agents is the current practice, which while practical, can compromise the neutrality and independence of the third-party arrangement if financed out of a project; and h) Enhancing Government visibility is essential to building state-citizen trust. While engaging external partners to support implementation, strategic communications, and Government positioning branding are key elements of meeting this objective. IV. IV. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements22 53. The Project builds on existing institutional structures to enhance coordination between state and federal levels of governmental agencies and flood-affected communities, with an overarching objective to restore the legitimacy of the State and strengthen state-ctizen trust. The Project will promote coordination and cooperation both vertically and horizontally within the Government and with communities. This is considered essential to mitigate any potential destabilizing risks and important to the process of strengthening state-citizen trust. The FGS will maintain a detailed POM, which details roles and responsibilities for implementation and monitoring apparatus and the technical and operational decision-making process, while also disseminating and building the capacity of key actors to utilize the POM. The institutional implementation model - developed in consultation with the FGS and FMS23 - is seen in Figure 1. 22See Annex 3 for a tabular summary of SCRP roles and responsibilities. 23The PIU has achieved significant progress towards engaging stakeholders, including intensive discussions with a range of key actors from the Government and development partners. On the Government side, these included the FMOF, OPM, MoA, MoPIED, MoHADM, MoW, and the FMS MoPIED. From Development Partners, these include WHO, FAO, etc. This culminated a series of meetings and workshops during a project preparation mission in February 2020, held in Mogadishu, and the development of stakeholder consultation strategy to bring together all relevant stakeholders to agree on a coordinated forward-looking recovery project. Page 22 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Figure 1: SCRP Institutional Arrangements At the Federal Level 54. Project Steering Committee (PSC). The Project will be overseen by a PSC chaired by senior staff from the OPM, and comprised of Director Generals and/or Permanent Secretaries of the MOF, MoPIED, and FMS MoPIED. The PSC will serve as an apex decision-making body responsible for broader strategic oversight, policy guidance, validation of broader resource allocation recommendations by the PIU, and other key decisions referred to it over time. However, the PSC will not be involved in routine operational decision making, such as on project targeting or procurement decisions. The PSC will also approve state investment and procurement plans, conduct periodic implementation progress and compliance reviews, perform trouble shooting functions particularly in the event of disputes, liaise with high level law enforcement agencies to ensure project security, validate strategic course corrections recommended by the PIU and other project constituents, and validate PIU state performance assessments and performance-based allocations to states. 55. Consultations with high level FMS functionaries and other actors. Another distinct function of the PSC would be to essentially maintain high level working relationships with the heads of the Project FMS, including periodically consulting state leadership in the conduct of the various functions invested in the PSC as elaborated above. The PSC will Page 23 of 79 The World Bank Somalia Crisis Recovery Project (P173315) also necessarily consult other stakeholders like the relevant UN agencies, development partners, and civil society actors, and take their and FMS feedback on board in the conduct of its core functions. 56. Project Implementation Unit (PIU). The Project PIU will be mapped to the MOF and co-managed and co-staffed by a combination of MOF and MoPIED personnel. It will be responsible for project management, coordination and implementation support to the FMS. These tasks will include quality and process oversight, financial management, procurement, reporting and certification, contract management, M&E, and on ensuring social and environmental safeguards compliance. MOPIED will lead the PIU functions on coordination between Federal and State Governments to facilitate prioritization, sequencing, and investment planning and to ensure that different sectoral line agencies work together to implement the multi-sectoral project activities. 57. For the early recovery activities envisaged under the Project, FMS State Project Team (SPT) and Ministries Departments and Agencies (MDAs) will supervise the work of civil society networks engaged by the PIU for providing various services. Further, as determined by the Government in consultation with the World Bank, a limited number of UN agencies and civil society organizations (CSOs) will be contracted by the PIU to lead the detailed design and implementation of activities. This will include an assessment of all necessary social and environmental safeguards measures and the preparation of detailed implementation plans. The CSOs will engage targeted communities to ensure activities properly reflect community needs, while coordinating with relevant FMS MDA and SPT. The PIU will approve technical designs and ensure activity compliance with Federal and state technical standards and with World Bank safeguards and grievance redress requirements. For subsequent components, the Project intends to build the capacity of SPT to enable them to perform this function, most likely with continued operational support from the contracted INGOs, while the Project will also strive to utilize national capacities wherever possible. At the State level 58. FMS MDA. All implementation of medium-term recovery interventions will be delegated to the relevant FMS institutions. FMS MDAs will identify sub-project interventions under the investment plans and prepare subproject designs and bidding documents in consultation with FGS MDAs, as well as support the procurement of contractors. FMS MDAs will also be responsible for contractor and site supervision, technical quality assurance, certification, and payment of works. The Project will finance the operating costs of the respective project teams in these MDAs to ensure that existing capacity and organizational structures are used and enhanced where necessary. 59. State Project Teams. A state-level extension of the PIU, the SPT24 is proposed as a “light” structure in each Project state, to be housed in FMS MoPIED, serving primarily as a ‘node of convergence’ at the state level. They would be responsible for design review and compliance of proposed designs and supervision of works, consolidating FMS MDA procurement and work plans, and supporting the PIU to manage the FMS Grievance Redress Mechanism (GRM) and project M&E. The SPT will be led by FMS Project “focal points” that will coordinate the participation of relevant technical FMS MDAs. The SPT will review the final procurement plans to assure compliance with World Bank standards, including safeguards, GRM, building-back-better, etc., and consolidation, with onward transmission to the federal PIU for final approval by the PSC. Importantly, the SPT will be responsible for district-level community consultations and raising awareness of the project in their communities through strategic communication. 60. Citizen Engagement. The Project’s implementation will build on strong citizen engagement principles. For Component 1 activities, INGO consortium will be implementing and together they have well-established processes of 24 May include safeguards, procurement, and engineering expertise. Page 24 of 79 The World Bank Somalia Crisis Recovery Project (P173315) community engagement, which are both gender and conflict-risk sensitive. The Project as a whole will ensure adequate social mobilization in respect of all project components through the use of existing community leadership and civil society networks to ensure that communities are consulted at various stages of the subproject cycle, i.e., identification, design, implementation, quality assurance, and impact evaluation. Communities would be facilitated to engage throughout project implementation, including in the monitoring of the implementation of project activities. Information boards, local meetings, and other forms of locally appropriate communication tools would be used for community-level information dissemination. A Community Scorecard exercise would be utilized to enable communities to provide formal feedback on overall project governance, including the performance of the targeting and the GRM. These activities are intended to generate evidence to contribute to improving policy and programs to enhance citizen engagement in local service delivery. The key outcome would be to promote constructive partnership between citizens and the Government in Somalia. Citizens and community groups will play a critical role in monitoring activities of the Project as determined and agreed by the Government and respective implementing partners. Citizens will help in – validation of needs, assessing awareness of service delivery, expressing satisfaction of service usage and providing feedback on process and output. The Project GRM will be a key vehicle for this aspect of engagement. Evidence generated through multiple avenues of citizen engagement may contribute to better service delivery for current and future interventions. A 360- degree loop of information flow and communication will help strengthen the nexus between implementing partners, citizens and the Government. 61. Implementation Capacity Assessment and Strengthening: The World Bank undertook an assessment of FGS and FMS capacities to deliver the Project, which pointed to the need for capacity enhancement at both levels, both for project preparation and implementation. A hybrid strategy was thereby agreed under which the FGS will contract the UNOPS to provide project management surge support during project preparation, and at least during the first two years of implementation, likely on a declining scale—while the Project will also enhance the capacity of the PIU and the State Project Teams where necessary. UNOPS will also provide on-the-job training and skills acquisition to the PIU, State Project Teams, and the FMS MDAs on procurement, contract management, environmental and social safeguards, monitoring, evaluation, and reporting, engineering, GBV, grievance redressal, etc. The PIU has designated a focal point on environmental and social safeguards and has commenced the procurement of dedicated environmental, social, and GBV experts. The PIU has also commenced a rapid physical damage and impact assessment to validate the findings of the FINA to guide recovery planning, prioritization, and budgeting. Overall 62. Table 1 highlights the broad division of roles and responsibilities under the Project, with a detailed description of the proposed business flows and process schematics included in Annex 3. Table 1: FGS/FMS Roles and Responsibilities FGS PIU MDAs SPT • Coordination of priortizing and sequencing • Identification of sub-project • District-level community exercises and investment planning interventions under investment consultations • Quality and process oversight plans • Review, compliance and • Procurement of goods and services • Preparation of subproject designs supervision of works • Seeking World Bank’s no-objections • Preparation of subproject bidding • Contract management oversight and documents controls • Supervision of consultants • Financial reporting Page 25 of 79 The World Bank Somalia Crisis Recovery Project (P173315) • M&E • Site supervision and technical • Certification of progress reports quality assurance • Operations and maintenance • Certification and payment of works 63. As the Government’s capacity evolves, the proposed institutional arrangements are expected to support broad recovery and response planning beyond the life of the Project. To involve coordinating input from Federal and State line ministries, as well as the newly established NEOC, and early warning and disaster preparedness inputs, and guided by needs and opportunities arising in newly recovered areas of the country. Also, it is expected that the implementation modality will evolve from the sole use of UN agencies and civil society organizations to a system of retainer contracts in the medium-to long term that will in effect pre-position capacities that can be called on by the Government to design, implement, and oversee responses to future crises and early recovery needs more quickly and efficiently. Currently, no shelf-project capacity has been developed and as a result the rapid scaling of response following a crisis focuses on humanitarian relief; undermining the potential for nexus multipliers. B. Results Monitoring and Evaluation Arrangements25 64. Outcome Monitoring and Evaluation. The PIU will be responsible for the overall M&E of the Project, using the Project’s results framework to issue quarterly updates on the overall project implementation. The PIU will be responsible for operationalizing the overall Results Framework for monitoring and evaluating the Project at a consolidated level through a Results Monitoring System. 65. Data collection. The PIU will establish a data collection system to obtain data from affected districts and sectors and carry out community-level surveys on a periodic basis to record baseline data in line with indicators included in the project results monitoring framework. Data collected will be used to update baselines, presenting and targeting indicator values for all sub-components and results reporting to the World Bank on a routine basis. 66. Implementation support will generally entail both routine and ad-hoc quality checks at various stages of implementation. Periodic monitoring will include process reviews/audits, reporting of outputs and maintaining updated records. Broad thematic areas that will be supervised and monitored include the following: (i) Social and Environmental Monitoring; (ii) Regular Quality Supervision & Certification; (iii) Periodic Physical Progress and Process Monitoring and Third-Party Quality Audits, and (iv) Results Monitoring and Evaluation. 67. Third-party monitoring. An independent agency or a group of consultants will be engaged by the PIU on a competitive basis to provide objective feedback on process and performance. The assessment will include a quantitative survey among direct beneficiaries allowing for trend analysis. A Community Scorecard exercise would be utilized to enable communities to provide formal feedback on overall project governance, including the performance of the targeting and the GRM. A MIS will be set up, which will allow continuous updating of such information. The functionalities and purpose of the MIS and data collection would be explained to beneficiaries during community mobilization to ensure their informed consent. 25 Annex 4: Result Monitoring and Evaluation Framework Page 26 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 68. The scope of the assessment and appropriate implementation methodologies will be determined in consultation with the World Bank by the PIU, with the assessment plan to run every six months. The scope may cover topics such as – results, progress against indicators; strategic focus of the project and to highlight any change of direction or new requirements (if any); operational lessons and challenges (if any). C. Results Chain 69. The Project is designed through five components: immediate basic services and livelihoods support, medium- term flood recovery, long-term disaster risk preparedness, project management, and a CERC. Figure 2 outlines the results chain anchored on the PDO as a statement of high-level outcome. Figure 2: SCRP Results Chain D. Sustainability Page 27 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 70. Although this is primarily a short-term recovery program, the longer-term sustainability of the Project, to be detailed in the POM, will be enhanced by the following: a) Focusing on multi-sector, medium-term recovery and resilience building activities, emphasizing the recovery of productive assets, food production and security, and livelihood systems (i.e., helping address the underlying drivers of vulnerability); b) Supporting integrated watershed and natural resource management; c) Including anticipatory actions for future food insecurity and disease outbreaks; d) Providing substantial climate co-benefits be enhancing local adaptive capacity and resilient infrastructure; e) Building community capacity for recovery planning, such as local disaster planning and early warning systems, implementation, management, and monitoring; f) Facilitating local ownership and maintenance of community infrastructure, possibly including the formation and/or development of maintenance committees; g) Building the capacity of relevant FMS MDA and communities to plan, monitor the quality of works, and operate and maintain investments in public infrastructure; h) Determining relevant policies and guidelines for asset maintenance and ownership; i) Synchronizing of Project activities with the Somalia seasonal cycle (planting seasons); j) Supporting cash for work-based programming; k) Integrating build-back-better principles and climate-resilient standards into infrastructure rehabilitation; l) Aligning Project activities and monitoring with national development strategies, such as the NDP-9 and RRF; m) Assuring coordination with, and buy-in of Project progress from the FGS and partners; and n) Coordinating project activities through existing humanitarian, development, and government coordination mechanisms, such as the cluster system. 71. To ensure the sustainability of the infrastructure rehabilitated under the Project, the contracts will also include soft components for: a) Sub-project design, planning, implementation, and monitoring; b) Incorporation of community choices in these processes; c) Technical Assistance for the introduction of community and civil society-based operation; and d) Technical Assistance for FMS MDA-based operation of public infrastructure. V. PROJECT APPRAISAL SUMMARY A. Technical Analysis 72. The Project’s technical appraisal confirms the need for flood recovery and preparing for a rapid response to the desert locust infestation. The immediate nature of these needs, compounded by drought, and the complex operating conditions in Somalia will require the World Bank to provide a flexible financial package to support the FGS and its partners that already have a significant presence in the country and can deliver immediate life-saving interventions. This approach, including the acquisition technical advisory services of UNOPS to provide project management support to the PIU, will increase government visibility and capacity to deliver and coordinate interventions, setting the groundwork for government-led medium and longer-term recovery and resilience building. This approach builds on lessons learned from similar projects in Somalia, Nigeria, and Zimbabwe. This would include flexibility of resource allocation across interventions, as well as target ranges for results indicators instead of absolute values, in line with the World Bank Agility Page 28 of 79 The World Bank Somalia Crisis Recovery Project (P173315) agenda. 73. The proposed SCRP design and approach will significantly aid flood recovery. The World Bank’s technical and sector experts involved in the preparation of the SCRP are satisfied with the FGS’s multi-disciplinary emergency response to the floods, with Government focal points identified per sector and relevant working groups being set-up. The technical team is also satisfied with the FGS’s implementation arrangements for delivering the development assistance envisaged under the Project, with MoPIED joining the PIU to enhance project coordination at state and Federal levels. Drawing on the FINA, the proposed interventions are technically compatible with the multi-sectoral and holistic approach that the World Bank is adopting globally and regionally in response to protracted disasters and their lingering impacts. Moreover, by building Government preparedness and coordination capacity and supporting the analytical and policy basis for flood risk management, the Project may guide longer-term, government-led development investments beyond the life of the Project. 74. The need to retain flexibility to adapt to dynamic and evolving needs. Maintaining flexibility of the Project will allow the FGS the ability to regularly re-prioritize between the various activities against ever-changing conditions and needs on the ground. Additionally, some livelihood activities are linked to certain stages in the seasonal calendar and can only be implemented in very specific time windows, which may not arise if coming rains fail or due to fresh flooding and/or drought conditions. 75. The proposed operation has undergone the required climate and disaster risk screening and has been assessed for climate co-benefits, described in further detail in Annex 5. The investments under this Project will provide substantial climate co-benefits both because (i) the provision of livelihood support and rehabilitation of critical infrastructure and services will help to improve the well-being, economic prospects, and quality of life for some of the most vulnerable people; thereby improving their capacity to cope with climate-induced stressors, (ii) the policies, plans, and infrastructure investments themselves will be designed and constructed in a resilient manner, and (iii) the strengthening of Government capacities to coordinate and prepare for changing climate conditions, including the consolidation of early warning information. 76. The geographic targeting will include a criterion to focus on flood-affected areas that are highly exposed to climate hazard. All the investments in infrastructure will be designed to climate resilient standards, i.e. planned, designed, built, and operated in a way that anticipates, prepares for, and adapts to changing climate conditions. The reconstruction of flood control measures, slope protection, and environmental rehabilitation will support climate change adaptation. Roads constructed under the Project will be designed to mitigate against climate rleated hazards such as increased flooding of roads, slope failures, and washouts. Other public facilities, such as health and water management facilities, will be informed by risk mapping to ensure climate resilience in the building locations and construction standards. Adaptive operation and maintenance management approaches will also be incorporated to include flexibility from the outset to monitor and adjust to changing conditions over the lifetimes of the newly constructed assets. Flood risk management and community preparedness plans will also draw on risk mapping and identify measures to anticipate, prepare for, and adapt to changing climate conditions. B. Economic and Financial Analysis 77. The economic analysis conducted as part of the Project preparation process suggests that the proposed interventions are economically feasible across all sub-projects under consideration. The unit costs of the various sub- projects were based on the actual figures of similar projects conducted within the region. The following assumptions Page 29 of 79 The World Bank Somalia Crisis Recovery Project (P173315) were made as part of the economic analysis: • Valuation of costs and benefits: based on market and shadow prices; • Appraisal period: a 20-year appraisal period; and • Discount rate: a six percent discount rate. 78. Investment in cash for works program: • The cash for works program is assumed to be US$ 70 per month per household and distributed to 5,000 households. • The benefits derived from this program would be in terms of: (i) value of improved health outcomes; and (ii) value of improved infrastructure. • The net present value of the investment in cash for works program is estimated at US$ 11.2 million and the internal rate of return is estimated at 55.4 percent. 79. Investment in feeder roads: • The construction cost for the pavement of feeder roads is assumed to be US$ 90,361 per km. The economic analysis is assuming an intervention cost of US$ 13 million, resulting in the pavement of 144 km of feeder road. Annual cost of operations and maintenance of road is assumed to be equivalent to 3 percent of capital expenditures. • The benefits derived from this intervention consist of: (i) value of increased trade and economic activity; and (ii) value of reduced vehicle maintenance cost. With regards to (i), it is assumed that the value of trade and economic activity would increase by 20 percent, with the value of trade and economic activity without the project assumed to be US$ 20 million annually. With regard to (ii), it is assumed that the daily traffic volume on the feeder road would be of 100 vehicles, with the average length driven per vehicle assumed to be equal to 30 km, the number of operational days per annum assumed to be 330 days and the reduction in vehicle maintenance cost assumed at US$ 0.2 per km. • The net present value of the pavement of a 144 km stretch of feeder road is estimated at US$ 19.2 million and the internal rate of return is estimated at 24.6 percent. 80. Investment in water boreholes: • The cost of construction of one water borehole is estimated at US$ 6,26626. The operations and maintenance of a water borehole is estimated at US$ 0.60 per user27 which, together with an estimated 417 users on average per borehole28, would lead to annual operations and maintenance cost of US$ 250 per borehole on average. • Benefits of the construction of water boreholes consist of: (i) health benefits related to reduced risk of diarrhea morbidity; (ii) value of time saved to access drinking water; and (iii) cost savings from decreased need to purchase water. With regards to (i), the risk of diarrhea morbidity of 1.7 percent is assumed to be reduced by 25 26 This unit construction cost is in line with IOM’s estimate of US$7,000 for the drilling of boreholes with owned drilling rig. 27 A Systematic Review: Costing and Financing of Water, Sanitation, and Hygiene (WASH) in Schools, which can be accessed at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5409642/ 28 This corresponds to the average village population in the areas under analysis according to the International Organization for Migration (IOM). This information can be accessed at Village Assessment Survey County Profiles at: https://iomsouthsudan.org/tracking/sites/default/publicfiles/documents/Lakes.pdf Page 30 of 79 The World Bank Somalia Crisis Recovery Project (P173315) percent which, combined with a value of a statistical life of US$ 2,39429 and a sub-project effectiveness rate of 50 percent, would lead to estimated annual health benefits of US$ 2,071. With regards to (ii), it is assumed that 4.5 hours are saved per household per week, on average, accessing water, or 234 hours per year, which, combined with an estimated 60 households and an opportunity cost of US$ 0.09, would lead to annual benefits of US$ 1,264. With regards to (iii), it is assumed that there will be savings of US$ 5 per household per year on reduced expenditures on water purchases, which would lead to benefits of US$ 300 per year. • The net present value of one water borehole is estimated at US$ 25,192 and the internal rate of return is estimated at 54.0 percent. 81. Investment in 5-Toilet VIP latrines: • The cost of construction of a 5-Toilet VIP latrine is estimated at US$ 29,54430. The annual cost of operations and maintenance is assumed to be US$ 2.72 per user per block which, assuming 104 users on average, would lead to total annual operations and maintenance cost of US$ 283. • Benefits of the construction of a 5-Toilet VIP latrines consist of: (i) value of reduced mortality due to improved sanitation- and hygiene-related outcomes; (ii) value of reduced childhood malnutrition related to reduced bouts of diarrhea and nematode infections; and (iii) value of reduced gender-based violence and attacks associated with the absence of toilets due to increased privacy and proximity of sanitation points to frequented areas. With regard to the main direct benefit of reduced mortality due to improved sanitation- and hygiene-related outcomes, it is assumed that the risk of mortality attributed to unsafe sanitation and lack of hygiene of 26 percent is reduced by 31 percent which, combined with a value of a statistical life of US$ 2,39431 and a sub-project effectiveness rate of 33 percent, would lead to annual benefits of US$ 6,735. • The net present value of one 5-Toilet VIP latrine is estimated at US$ 41,062 and the internal rate of return is estimated at 24.5 percent. 82. Investment in primary health care units: • The construction cost per primary health care unit is estimated at US$ 74,638. The annual cost of operations and maintenance is assumed to be US$ 21,000 for a primary health care unit serving 5,000 patients per year32. • Benefits of improved access to primary health care units consist of: (i) value of reduced maternal mortality; and (ii) value of reduced morbidity-related deaths. With regards to (i), it is assumed that 58 maternal lives would be saved which, combined with a value of a statistical life of US$ 2,39433 and a sub-project effectiveness rate of 10 percent, would lead to annual benefits of US$ 13,885. With regards to (ii), it is assumed that the risk of morbidity -related deaths of 19 percent would be reduced by 25 percent, which, combined with a value of a statistical life 29 W. Kip Viscusi* and Clayton J. Masterman Income Elasticities and Global Values of a Statistical Life, which can be accessed at: https://law.vanderbilt.edu/phd/faculty/w-kip-viscusi/355_Income_Elasticities_and_Global_VSL.pdf. 30 The IOM estimate the unit construction cost of a 1 block of 4 stances (including a PSN stance) at US$13,000. The World Bank unit cost estimate therefore remains quite conservative. 31 See footnote number 28. 32 UKAID Cost Analysis of the Essential Package of Health Services (EPHS), which can be accessed at: https://assets.publishing.service.gov.uk/media/57a089e8e5274a27b2000305/Somalia-cost-analysis-of-the-essential-packageof-health- services-.pdf 33 See footnote number 28. Page 31 of 79 The World Bank Somalia Crisis Recovery Project (P173315) of US 2,39434, would lead to annual benefits of US$ 57,185. • The net present value of one primary health care unit is estimated at US$ 39,764 and the internal rate of return is estimated at 67.0 percent. 83. The sensitivity analysis indicates that the economic rate of return for interventions remain significant across all sub-projects considered for this Project, even when considering potential downside adjustments to the assumptions made in the economic analysis. These results are presented in Table 2. Table 2: Sensitivity Analysis of Sub-projects 5-Block VIP Cash for works Feeder Road Water borehole PHC unit latrine NPV NPV NPV NPV (US$) IRR NPV (US$) IRR (US$) IRR (US$) IRR (US$) IRR Costs increase by 10 percent 10,822,476 47.9% 17,581,851 21.9% 24,333 48.7% 37,844 21.8% 363,780 58.3% Benefits reduce by 10 percent 9,698,228 47.2% 15,664,774 21.7% 21,814 48.2% 33,738 21.5% 324,704 57.5% Benefits lag by 2 years 8,327,382 26.9% 11,909,844 15.5% 18,528 30.0% 26,617 15.6% 260,464 27.9% Source: Based of World Bank staff estimates. B. Financial Management 84. The financial management risk is assessed as High. The World Bank’s FM team conducted the FM assessment of the Project in accordance with the Financial Management Manual for World Bank – Financed Investment Operations issued by the World Bank’s Financial Management Sector Board on March 1, 2010.35 The objectives of the assessment were to: i) evaluate the FM capacity of the implementing agencies, ii) identify of key risks and challenges that may hinder the implementation of the Project, iii) develop and agree risk mitigation measures, and iv) inform the design of the Project FM arrangements. 85. Bank Financial Management (FM) Requirements. The FGS will contract the services of two UN Agencies (FAO and UNOPS) and INGO consortia. Additional partners may be used based on emerging needs and the capacity of the Government to deliver. The Project will target the three flood-affected states of Hirshabelle, South West, and Jubaland, while advancing a national approach to the locust response, longer-term resilience building, and a CERC. The FM working arrangements for the identified UN agencies are governed by the Financial Management Framework Agreement ) signed between the World Bank and the UN agencies. Under the FMFA the World Bank’s FM requirements are met when a UN agency receives, manages, expends, reports on, and audits the financing proceeds in accordance with their respective financial regulations, fiduciary framework, accountability, and oversight framework. However, the World Bank still reserves the right to request for periodic financial reports to monitor utilization of funds. Qualifying individual CSO will be assessed individually and will be contracted based on agreed procurement procedures, subject to the World Bank 34See footnote number 28. 35Bank Policy/Operational Procedures BP/OP 10.00 - IPF require Recipients of grants and credits to maintain adequate financial management (FM) systems and arrangements to provide reasonable assurance that grants/loan proceeds are used for the intended purposes. Page 32 of 79 The World Bank Somalia Crisis Recovery Project (P173315) conditions. 86. The high-risk rating is attributable to weak and rudimentary funds flow and banking systems (characterized by Anti Money Laundering and Anti-Terrorism Financing risks. Risks include lack of key FM competencies and internal controls, sustainability due to over-reliance on consultants and the lack of a robust regulatory framework for key Public Financial Management. Various mitigating measures are designed both specific to the Project and as part of other Bank/Donor engagements in the country. The Project will adopt the Use of Country Systems including accounting and reporting and banking, with oversight arrangements with the Office of the Auditor General. This will be supported by technical assistance with a clear requirement for training and knowledge transfer. 87. The External Assistance Fiduciary Section (EAFS)36, in consultation with the PIU domiciled in MOF, will oversee and manage the project financial management. The EAFS unit has been fully operational for the last six years. The need for a dedicated project accountant based in the PIU will be determined by the Accountant General and will either be secondment from the EAFS PIU or externally recruited. Both EAFS and PIU staff will be trained periodically on Bank FM procedures. Throughout project implementation, the Government is expected to ensure that EAFS and PIU staff have adequate qualifications and experience acceptable to the Bank. The Bank team will continue to strengthen PFM and systems capacities within the Federal MOF and key project implementing MDAs. See Figure 3 for structure of the FGS EAFS. 88. The FM function in FAO Somalia is performed by their Corporate Support Services Department which is well resourced. The Department is made up of Finance (four staff), HR (four staff), Logistics (four staff), IT (three staff) and Operations & Budget Control. The FAO has over 1,200 framework agreements with different organizations across Somalia (NGOs, Governments and Community Based Organizations, Professional Associations). UNOPS has significant global experience in implementation in FCV settings including Somalia specifically collaboration with the Government in areas of financial, infrastructure development, project management, human resource management, procurement and financial management. FOA and UNOPS will be directly contracted by the Government through the project and the detail and modalities of the contracting modalities, accountability, reporting and oversight mechanisms will be outlined in the service agreement between the Government and the UN Agencies. 36 Already established under the Office of the Accountant General and staffed with mainstream civil servants Page 33 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Figure 3: EAFS functional structure 89. The Government will prepare a detailed project budget based on the specific activities to be executed over the life of the Project. Initially, this will cover activities to be implemented in Hirshabelle, South West, and Jubaland States. This budget will be agreed with the World Bank for it to be included in the Government Appropriations and the relevant sector within the FGS budget. Monitoring of budget execution will be done through the regular submission of the quarterly reports to the World Bank. The Government will prepare the budget utilization reports for the entire Project, which will be submitted to the World Bank 45 days after the end of the quarter. Any significant variances between actual and budgeted performance will be discussed with the World Bank as part of project implementation support. 90. The PIU, working closely with the EAFS unit, will prepare and submit annual work plans, along with budget and cash flow forecast for each project component. These will be approved by the PSC Task Team Leaders (TTLs) at the World Bank before inclusion in the Government annual appropriations. The work plans, cash flow projections, and budget will include the figures for the year analysed by months and quarters. The cash budget for each month and quarter will reflect the detailed specifications for project activities, schedules (including Procurement Plan), and expenditure for the quarter. All annual cash budgets will be sent to the PSC and TTLs for review and approval at least two months before inclusion of the appropriations bill. Page 34 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 91. The EAFS in the Office of the Accountant General will ensure that financial reports are designed to provide relevant and timely information to the PIU and various stakeholders monitoring project performance. a) All levels of implementation will maintain adequate filing and archival systems of all accounting and supporting documents for review and for audit purposes. b) The Project’s original financial records including and supporting documentations will be maintained at the EAFS unit. c) Financial transactions will be captured, recorded, analysed, summarized and reported in line with the provisions of the International Public-Sector Accounting Standards Cash Basis of accounting. These will be supported by appropriate records and documentation to track commitments and to safeguard assets. d) Project budget and expenditures will be recorded, classified, and reported through the Somalia Financial Management Information System (SFMIS) and respective FMIS at the FMS-level.37 e) Periodic and annual reports covering total project expenditures against components and procurement categories will be produced. f) Eligibility of expenditures will be based on actual amounts incurred and supported by appropriate documentation. g) Accounting records will be maintained in US$. h) Implementing FMSs, MDAs, and any UN Agencies or CSO which may be contracted by the Government, will ensure that invoices and payment requests are consistent with signed contracts before processing and release of payments. They will also monitor and report on the utilization of Project funds, including the fiduciary standards and the reliability of the FM systems. i) The EAFS in consultation with the PIU will ensure a SFMIS-based fixed assets register will be prepared, regularly updated, and physical verification of assets routinely carried out. The fixed assets register will record: details of suppliers; description and location of goods; original costs; disposal of assets; assets reference (identification) numbers; serial or registration numbers; dates of purchase; assets additions; condition of assets; assets’ useful life and residual value. j) The EAFS, in consultation with the PIU, will maintain FMIS based contracts register with respect to all contracts with consultants, contractors and suppliers. 92. The Government will periodically extract from the Integrated Financial Management System, the Interim Unaudited Financial Reports (IFRs) and submit these to the World Bank not later than 45 days after the end of the quarter. The quarterly reports shall provide details on all funds received under the Project, as well any counterpart funds received under the project (if any). The reports shall include a statement showing: period and cumulative inflows by sources and outflows by main expenditure classifications (components/sub-components); beginning and ending cash balances of the project; and supporting schedules comparing actual and planned expenditures. Expenditures would be classified by component and by activities. The IFR format will be designed and included as an annexure in the POM. 93. The Auditor General FGS will carry out a Project External Audit with technical assistance as necessary. The audited project financial statements, together with any additional information, required will be submitted to the World Bank not later than six months after the end of each financial year (not later than June 30 annually). The audit would conform to the World Bank’s audit requirements and in accordance with internationally recognized auditing standards. The auditor will express an opinion on the project annual financial statements in compliance with International Standards on Auditing) or ISSAI based in the adopted standard by the Auditor General as the country’s Supreme Audit Institution (SAI). The SAI will prepare a management letter highlighting observations and comments, and providing recommendations for improvements in accounting records, systems, controls and compliance. The external audit will 37 In accordance to the approved Standard Chart of Accounts (ScoA). Page 35 of 79 The World Bank Somalia Crisis Recovery Project (P173315) pay special attention to the risks of material misstatement of the financial statements due to fraud, in line with International Standards on Auditing ISA 240 "The auditor’s responsibilities relating to fraud in an audit of financial statements" or equivalent an ISSAI standard as specified in the external audit TOR. The Project’s financial management arrangements will be further detailed in the POM. The Project will liaise with the internal audit unit to ensure that Project internal audit reviews are included in the annual work plans. The Project internal audit reports (once the function is established) shall be prepared and shared with the EAFS/PIU and made available to the World Bank team during project supervision. The internal auditors will carry out risk-based systems audits to strengthen the Project’s internal control systems. 94. Funds Flow, Cash transfers, Banking and Disbursement arrangements. The Ministry of Finance/ Office of the Accountant General shall open a designated bank account. The designated account (DA) shall be opened in a financial institution acceptable to the World Bank. Currently Central Bank of Somalia (CBS) is the only banking institution assessed and cleared by the World Bank to host DAs. The initial amount of the DA ceilings shall be determined based on projected cash forecast to ensure the implementing agencies have adequate working capital to implement the project activities. Subsequent funds withdrawals shall be on advance replenishment mechanism based on Statement of Expenditure. The cash projection will be delineated highlighting the two forms of disbursement mechanisms i) bulk of the projected disbursements/payments through direct payment modality primarily for the project payments to vendors and beneficiaries with bank accounts domiciled outside of Somalia- including payments for the UN agencies and ii) operational expenditures and other project payments paid locally through the DA into vendors and beneficiaries with the bank accounts in Somalia, including 1.5 percent commission fees charged by CBS and other related bank charges. The ceilings shall be reviewed and revised periodically based on the project implementation cash demands as shall be specified in the project disbursement letter. Due consideration shall be accorded to the need to maintain adequate cash to finance the project operations by periodically filing withdrawal applications at least once every month. The outline of Page 36 of 79 The World Bank Somalia Crisis Recovery Project (P173315) the funds flow arrangements is summarized in the banking and funds flow diagram – see Figure 4 below. The signatories to the DA shall be in line with the delegation mandate by the Ministry of Finance and shall be as follows: Panel A: Director General of MOF and alternate as the Director of Finance and Administration Panel B: Accountant General and alternate as the Deputy Accountant General. Figure 4: Fund Flow Arrangements Withdrawal applications World Bank Client connectio Direct payments for vendors with bank n accounts outside of Somalia Funds disbursement EAFS Unit within FGS Ministry of Finance Designated Bank Account (Office of the Accountant Banking data Financial Institution Acceptable to General) World Bank (CBS- 1.5% commission fees) Payment Requests Reports Payments to bank accounts within Somalia Reports & information Vendor payments FGS PIU (MoF & MoPIED) (Consultants, contractors, FOA, UNOPS, NGO Consortia) Payment Requests Reports Technical Implementation Units (FMSs, MDAs, UNOPS, FAO, RRF Coordination Unit) 95. Fraud and Corruption. The two UN Agencies and COSs are expected to adhere to the Bank Anti-Corruption Guidelines as outlined under Bank Policy 10.0 paragraph 20 and in tandem with alternative arrangements modeled on the integrity provisions of the FMFA to which they are both signatories. Unless otherwise negotiated, both agencies and CSOs are expected to adhere to the Bank Anti- Corruption Guidelines. There could be consideration to waive paragraph 20 of World Bank Policy 10.00 to allow the respective UN agency’s procedures for fraud and corruption, instead of the World Bank’s Anti‐Corruption Guidelines. The Assessment recommends the applicable Anti-Corruption Guidelines applicable to this operation be negotiated between the World Bank and FAO/UNOPS. Page 37 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 96. Possibility of circumventing the internal control system with colluding practices as bribes, abuse of administrative positions, mis-procurement etc., is a critical issue and may include: (a) late submission of supporting documents; (b) poor filing and records; (c) lack of system integration; (d) lack of budget discipline; (e) unauthorized commitment to suppliers, bypassing budget and expenses vetting procedures; (f) unsecured safekeeping and transportation of funds. These are mitigated as follows: (i) specific aspects on corruption auditing would be included in the external audit TOR; (ii) FM Procedures (as part of POM) approved and in operation for the project (iii) strong FM arrangements (including qualified Project Accountants in the EAFS, (iv) periodic IFRs including budget execution and monitoring; and (v) measures to improve social accountability and transparency are built into the projects’ design. 97. Community level Accountability. Community level activities will be detailed in the Project-wide annual work plan and annual budget including any community contributions. The SCRP PIU will be responsible for preparation, consolidation of Project-wide annual work plan and budgets across all the levels of the project implementation. The consolidated plans will be presented to the PSC for review and approval. The eligibility criteria, implementation arrangements, accountability, monitoring, reporting and oversight arrangements for the community based sub-projects/ activities will be detailed in the POM. 98. Conclusion and Supervision Plan. The overall residual FM risk for this operation is High and shall be revised during the periodic FM implementation support missions. This assumes that the Project oversight, implementation, and coordination arrangements shall be centralized within the PIU. The implementation support supervision will be consistent with a risk-based approach and will involve a collaborative approach through the project implementation arrangements. Additional supervision activities will include desk review of quarterly IFRs and internal audit reports, audited Financial Statements and Management Letters, as well as timely follow up of issues arising, and updating the financial management rating in the Implementation Status report and the Portfolio and Bank Risk Management System. A collaborative approach will be adopted to separate review/offer Bank FM implementation with FAO and UNOPS. C. Procurement 99. Procurement will be carried out in accordance with the requirements in the Procurement Regulations for Borrowers under IPF: Goods, Works, Non-Consulting Services and Consulting Services dated July 1, 2016 (revised November 2017 and August 2018); Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants (revised as of July 1, 2016); and provisions stipulated in the Financing Agreement. Given Somalia’s FCV country status, procurement will be processed under the special procurement arrangements referred to under paragraph 12 of Section III of the World Bank Policy on IPF dated September 30, 2018. 100. Project Procurement Strategy for Development and Procurement Plan. The World Bank’s New Procurement Framework will apply to the project. In this regard, the borrower will prepare the Project Procurement Strategy for Development (PPSD) to formulate the best procuring approach/solution that will also form the basis for the preparation of the Procurement Plan for the first 18 months. The PPSD will include a summary on procurement risk, mitigation, action plan and procurement implementation support and supervision plan and will be finalized during implementation in accordance with paragraph A.3 in Section III of the World Bank Guidance: “Procurement in Situations of Urgent need of Assistance or Capacity Constraints.” 101. Procurement implementation: The PIU has some in house capacity but has limited experience with World Bank procurement operations and will therefore be strengthened. During the project implementation, the Government will ensure that a dedicated procurement specialist with experience in World Bank Procurement Policies and ability to Page 38 of 79 The World Bank Somalia Crisis Recovery Project (P173315) provide capacity building is embedded with the PIU. Procurement backstopping support will be provided during the implementation. 102. Systematic Tracking of Exchanges in Procurement (STEP): The WBG’s STEP system will be used to prepare, clear and update PPs and conduct all procurement transactions for the project. The system allows the systematic planning and tracking of procurement activities throughout the project cycle, including online collaboration with clients and recording service level standards through workflow. 103. Advance Contracting and Retroactive Financing. The procurement for all contracts to be considered for retroactive financing under project shall be consistent with section V (Paragraphs 5.1 and 5.2) of the Procurement Regulations for Borrowers under IPF dated July 1, 2016 (revised November 2017 and August 2018). The advance contracting will enable the Borrower to contract UNOPS and FAO, UN agencies to be engaged to execute specialized activities of the project. FGS, however shall undertake all procurement at its own risk and any World Bank concurrence on the procedures, documentation, or proposal of award of contract will not commit the World Bank to finance the procurements in question, should the project not be approved by the World Bank’s Executive Board of Directors. For all the contracts signed, including operations cost, reimbursement by the World Bank for cost incurred under the Project prior to the signing of the Financing Agreement, as part of retroactive financing, shall not exceed the agreed ceiling in the Financing Agreement. 104. Furthermore, the World Bank task team will ensure due diligence through a rigorous, post-effectiveness retroactive financing review if any such expenditures are claimed by the Borrower, that will include a technical, fiduciary and safeguards eligibility post-review, as required and compatible under Bank policies and procedures and agreed with Borrower. While expenditure eligible for retroactive financing need not be fully defined presently, typical expenditures will likely be eligible include the cost of contracting UN agencies by the Borrower for joining the project preparation effort, costs of development of the POM and safeguards surveys and documentation, community infrastructure assessment surveys, etc. .D. Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 Yes Projects in Disputed Areas OP 7.60 No . E. Social (including safeguards) 105. The legal, institutional and regulatory frameworks and capacities of the MoHADM to identify, understand and overcome E&S risks is low. These frameworks, within both the FGS and the FMs expected to assess and manage environmental and social risks and impacts related to the project activities are either weak or non-existent. For instance, formal mechanisms for land acquisition and establishment of eminent domain is non-existent in most parts of Somalia. As a result, resettlement as well as due diligence for establishing ownership of land and compensation for appropriation may be challenging and needs to be well managed to prevent adverse impact. The application of voluntary land donation will similarly need to be carefully managed with robust due diligence and sustained and effective community engagements. With these structures under development, high capacity partners will be involved in supporting project implementation including application of environmental and social risk mitigation measures. Roles and responsibilities Page 39 of 79 The World Bank Somalia Crisis Recovery Project (P173315) for the various implementation support agencies as to E&S risk mitigation management will be spelled out in the ESMF and the POM as appropriate. 106. A GRM is being tailored to respond to the needs of the project. The GRM is designed to address concerns and complaints promptly and transparently with no cost or discrimination towards project affected communities. Implementation support agencies who have established GRMs in the project area may refer resolution to the respective agency involved in the intervention as appropriate. Each agency will maintain a documented record of stakeholder engagement and GRM, including a description of the stakeholders consulted, a summary of the feedback/grievances received and a brief explanation of how the feedback was considered, or the reasons why the issue could not be resolved. These records will be collated and consolidated, tracked and monitored at the PCT level. The development of the grievance mechanism will include identification of SEA/H and GBV sensitive channels for reporting, as well as the development of response and referral protocols for survivor-centered care should specific GBV and SEA/H cases arise. 107. The social risk rating is high. These risks include: a) Security - ensuring security for project operations (including the protection of project workers, beneficiaries and affected persons) is a complex challenge. Mitigation: The involvement humanitarian and development organizations with valuable knowledge and experience in delivering specialized operations in the target locations provide relative advantage to challenges of access to site and the identification and mitigation of security threats to project operations. In addition, these organizations partner with local NGOs that have a good understanding of local dynamics an important factor in managing exposure to security threats. b) Exclusion - project investments being rolled out in a context of limited resources against widespread need and the non-accessibility of certain areas under the control of Al Shabab amplifies challenges of the benefits reaching truly vulnerable, marginalized and minority members of the community. Mitigation: The Project is deliberately designed to ensure the inclusion of vulnerable groups, including minorities and displaced persons. Effective targeting and community consultation are important features of the project. This will include sensitization on the availability of a project GRM. c) Selection bias and elite capture – there is a risk of project benefits being diverted to ineligible and less-deserving locations and individuals. Mitigation: Full community participation in in the early recovery component and transparent and inclusive government-led project prioritization exercise for medium-term recovery. The engagement of high capacity implementation support agencies to support in project monitoring adds another layer of confidence and credibility and to the process. Through the use of sustained stakeholder and community engagements and continuous monitoring of the GRM, concerns, complaints and grievances will be monitored and addressed appropriately. d) Challenges in access to beneficiaries and difficulty in monitoring - project locations are likely to be remote underserved areas with basic physical and community infrastructure and further devastated by drought and floods. Access to beneficiaries for meaningful stakeholder and community engagements as well as grievance redress and monitoring will be a challenge. Mitigation: The involvement of UNOPS, FAO and other humanitarian and development organizations with valuable knowledge and experience in delivering specialized operations in the target locations provide relative advantage to challenges of access to site. Monitoring will also be provided by the same high capacity institutions, while concurrently building Government capacity for monitoring. Page 40 of 79 The World Bank Somalia Crisis Recovery Project (P173315) e) Inward Migration - there remains a possibility of population influx from neighboring district and locations. When it occurs, this is likely to upset community dynamics. Mitigation: measures include: i) transparent and inclusive community engagement (including with clan elites), ii) effective project communication, and iii) Labor Management Procedures to include code of conduct for project workers. f) Sexual exploitation and abuse, sexual harassment (SEA/H) and other forms for gender-based violence (GBV) - Existing contextual risks may be heightened through key project-related risks, related to the targeting women and children, IDPs, disabled populations and other marginalized groups for project interventions. Mitigation: The project implementing teams will develop and implement measures and actions to regularly assess and manage the risks of SEA/H and other forms of GBV extending from project activities, including key infrastructure elements as well as the receipt of in cash-for-work schemes by women and other vulnerable groups and sexual exploitation and abuse risks such as sexual favors for registration or release of funds. The PIU will engage a dedicated specialist to support oversight and management of these risks. Safety audits will be developed for all relevant activities to ensure protection and security of affected communities and alignment with global protection standards. Monitoring of the management of GBV risks will be integrated into requirements for a Third-Party Monitor and financing will be made available to contract relevant GBV service providers. The project will also identify and address any capacity gaps within the PIU and other implementing partners to build institutional capacity for GBV risk management. The project will also ensure regular consultation and engagement with women and women’s groups throughout the project to ensure equitable inclusion in project activities and to monitor potential risks that may emerge over the life of the project. g) Systemic weakness - The current capacity of the PIU to identify, understand and prevent adverse social impacts by the project is limited. This includes capacity for monitoring of impact and redressing the impacts of social harm where it has occurred. Mitigation: The capacity of the PIU will be significantly enhanced. In addition, the engagement of UNOPS, FAO and other humanitarian and development organizations will plug any remaining capacity gaps for application of risk mitigation protocols and monitoring. E. Environmental (including safeguards) 108. The environmental risk classification is High.Component 1 of the project planned support for a rapid response to the desert locust crisis through surveillance, ground and aerial spraying operations activities poses significant environmental risk. Large-scale control operations of desert locusts can lead to unintended and undesirable consequences. Desert locust is generally found in delicate ecosystems, where they co-exist with people, livestock, vegetation and beneficial insects (e.g. pollinators). Although control operations are targeted at desert locusts and select the most compatible and safe products, there is always a risk of adverse effects to the environment, local communities and the control teams. The risks and impacts will be mitigated by known measures. For the planned rapid response to locust crisis component, a comprehensive Pest Management Plan (PMP) that will outline the various elements and actions needed to be taken to adequately address the operations environmental concerns during project implementation is will be prepared and disclosed before project activities kicks off. The PMP will address; Pest management approaches, Pesticide use and management, Policy, regulatory Framework and institutional capacity, and Monitoring and evaluation. FAO Directives on Desert Locust Control is sufficient to fully meet the World Bank’s Operational Policy requirements on Pest Management and will be integrated in the PMP. FAO will also support the Government to responsibly handle and administer pesticide, reduce the associated risks and assess the positive and negative impacts of control interventions. This includes training and setting up basic facilities to monitor and address any issue that may arise from the control campaign, in line with FAO’s Desert Locust Guidelines on Safety and Page 41 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Environmental Precautions. FAO will also support government to follow appropriate product and container disposal guidelines and provide environmental impact assessment kits. The project will also work in parallel with other regional locust interventions activities to share knowledge base and linkages to avoid duplication and maximize sharing of resources. 109. Environmental risks and impacts are also anticipated for component 2 and 3 activities associated with the small to medium scale civil works entailing rehabilitation and reconstruction of community infrastructure such as damaged transport infrastructure, municipal Water Supply and Sanitation Schemes, Water Resources and Flood Risk Management Infrastructure, Restoring irrigation schemes in support of agrarian livelihoods, damaged schools, and damaged health facilities. These activities will likely generate adverse site-specific risks and impacts such as erosion and sedimentation of rivers from earth works and run-off during the construction phase, disposal and management of large amounts of excavated material generated from construction activities during the construction phase, occupational health and safety of workers both during the construction and operational phases, increased level of dust, noise and vibration from moving of construction vehicles and machinery, and community health and safety risk and pollution of surface and groundwater sources. 110. For components 2, 3 and 5 an ESMF will be prepared by the PIU, consulted upon and disclosed both in-country and in the World Bank’s external website prior to project effectiveness. Under the leadership of the PIU, UNOPs is supporting the preparation of the ESMF and a draft has already been prepared. The ESMF will: • Provide the criteria and procedures for screening sub-project investments and guide the preparation of site- specific Environmental and Social Management Plans (ESMPs) or Environmental and Social Impact Assessments (ESIAs) for higher risk projects (based on ESMF screening criteria). • Provide subproject screening process to exclude sensitive areas (pristine or having ecological sensitive flora and fauna) from project activities. • Assess the institutional capacity of the Government and the contracted implementing agencies and provide measures for capacity building. The ESMF will include provisions for estimated budget required for implementing the sub-project-level ESIAs/ESMPs. • Cover risks associated with other activities to be supported under component 1 which include: (a) revitalizing basic health service provision to include strengthening of response services and referral pathways for survivors of GBV; and (b) supporting household hygiene promotion will be mitigated through Health Care Waste Management Plan will also be included as part of ESMF. • Will cover CERC under component 5. 111. ESF instruments will include: a) A Stakeholder Engagement Plan (SEP). It will draw upon on the experience and expertise of the FGS, FMS, and contracted UN agencies and NGOs that have a sound understanding of the local context and have existing implementing systems. The PIU will maintain, and disclose, a documented record of all stakeholder engagement activities. The SEP also includes mechanisms for setting out a GRM which would help the beneficiaries/ affected individuals to express their concerns and grievances and provide the PIU opportunities to systematically and effectively address them. b) An ESMF to be prepared and disclosed before activities commence, and which will outline the risk mitigation measures under which the project will operate. The ESMF will contain a Resettlement Plan Framework (RFP), Page 42 of 79 The World Bank Somalia Crisis Recovery Project (P173315) GBV Action Plan, Security Management Plan (SMP) and a Pest Management Plan (PMP). In addition, a Labor Management Procedures (LMP) will be prepared to address the risk of exploitation of and by workers on this project and ensure equity, diversity and transparency in recruitment of project staff and enshrine the requirements of ESS2 in project implementation. c) A Pest Management Plan (PMP) to be prepared and disclosed before activities commence by the PIU in close collaboration with Ministry of Agriculture and FAO. The PMP will address; Pest management approaches, Pesticide use and management, Policy, regulatory Framework and institutional capacity, and Monitoring and evaluation. FAO Directives on Desert Locust Control is sufficient to fully meet the World Banks Operational ESF Policy requirements on Pest Management (as per ESS3) and will be integrated in the PMP. FAO will also support Government to responsibly handle and administer pesticide, reduce the associated risks and assess the positive and negative impacts of control interventions. This includes training and setting up basic facilities to monitor and address any issue that may arise from the control campaign, in line with FAO’s Desert Locust Guidelines on Safety and Environmental Precautions. FAO will also support government to follow appropriate product and container disposal guidelines and provide environmental impact assessment VI. GRIEVANCE REDRESS SERVICES 112. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and World Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. VII. KEY RISKS . 113. Risk sensitive. Somalia is one of the most difficult environments in the world in which to operate, with the socio- political construct, as well as conflict and security, presenting significant challenges to project implementation. The Project will develop a proportional risk mitigation regime, not least to address issues of security and GBV. 114. A full Systematic Operations Risk-Rating Tool (SORT) is outlined in Annex 6. 115. The overall risk rating for the SCRP is High. The risks that could adversely affect the Project are contextual, institutional, and programmatic. The Government has some familiarity with Bank investment operations requirements, including through the SFF-LD Project, though their capacity both in the Federal Government and at FMS-level to manage full-lifecycle project delivery and supervision activities is weak. Page 43 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Table 3: SORT Risk Category Rating Political and governance H Macroeconomic S Sector strategies and policies S Technical design of project M Institutional capacity for implementation and sustainability S Fiduciary H Environment and social H Stakeholders H Security H Reputational S Overall: H Ratings: High (H), Substantial (S), Moderate (M), Low (L) 116. The Bank will facilitate institutional arrangements for the Project implementation and coordination and provide support through the project delivery lifecycle. The POM will include guidance to the PIU on when to suspend activities due to insecurity and how, through the PSC, the sequencing of activities can be revised to mitigate project risks. 117. Political and Governance risks are High. A unique socio-political dynamic exists in Somalia within a contested political situation. In February 2020 Somalia's president, Mohamed Abdullahi Mohamed (Farmajo), signed legislation that will allow ordinary Somalis to vote in parliamentary elections for the first time - holding a one-person, one-vote election as a replacement for “clan-based power-sharing”. Somalia's National Independent Electoral Commission has announced plans to register millions of Somalis to participate in what would be the country's first popular elections in more than a half-century, either in late 2020 or early 2021, though doubts exist over whther elections will happen this year. Cooperation between FGS and FMSs remains an obstacle to achieving national priorities and ensuring a credible and peaceful election process. This risk can enter the project level with the potential for political stagnation, competition over scarce financial resources, and renewed violence. Mitigating measures will include regular and systematic efforts to encourage collective project action at the technical levels in the FGS and FMSs to sustain activity beyond any political turbulence. This will include regular communication on project activities, allocations, and processes. 118. The Macroeconomic Risk is Substantial. Somalia is one of the world’s poorest countries, with a gross national income of US$ 284. Some 80 percent of its exports are from one product —livestock—leaving it exceptionally prone to external economic shocks. The substantial dependency of the FGS upon donor funding underlines the fiscal fragility and weak revenue base. The World Bank, working with others such as the International Monetary Fund (IMF), is engaged in strengthening the overall macroeconomic and fiscal framework. The project design builds in flexibility such that activities can be adjusted accordingly, contingent on the overall environment. 119. Sector Strategies and Policy Risks are Substantial. There are weak national institutional structures accompanied by a fragmented stabilization process with many different actors including the African Union peacekeeping mission, the UN, and a number of donor and non-governmental recovery activities. Once effective, the Bank will work with the PIU on how to coordinate with partners and strengthen technical approaches to project challenges, such as safeguards and M&E. It is envisioned that the services of the UNOPS will be utilized during the initial phase of the project to provide technical assistance both to the PIU and FMS structures (i.e., SPT). Page 44 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 120. Technical Design Risk is Moderate. Project activities are moderately complex in a highly complex environment that comprises many political security, technical capacity, and governance challenges. This includes weak capacity generally in the country for technical design, procurement, construction and supervision activities. The design of the project builds in significant technical capacity building efforts to create an effective project platform that could absorb additional funding when available. Field-level risk mitigation exists, in the form of INGO consortia, and is an obvious resource for offsetting some of the technical design challenges. 121. The Institutional Capacity Risk is Substantial. Capacity and authority in Somalia are relatively weak given the history of conflict and mistrust with public institutions. Conforming to the new draft guidelines of the Civil Service Commission, the project will ensure the recruitment of the best technical consultants at both PIU and FMS level and create a sufficiently attractive technical environment in which the best available staff can be identified and retained. 122. The joint FM and Procurement (fiduciary) risk is rated high. The FM and procurement environment in Somalia remain inadequate. Potential levels of project financial mismanagement, fraud, lack of transparency, and corruption exist, and although anticorruption and public sector regulations are in place, problems persist, contributing to low levels of trust in government institutions. Mitigation measures for governance issues have been built in the project design in the form of strict fiduciary control mechanisms and application of Bank fiduciary rules, as well as through targeted participatory and consultative mechanisms for project activities and a focus on social accountability. The project will (a) ensure that a dedicated financial management and procurement specialist with experience in Bank policies and the ability to provide capacity building is embedded within the PIU; (b) include in the POM a well-described financial management procurement process; and (c) include oversight as part of the third party/ community based monitoring as well as social accountability d) risk based implementation support reviews e) strengthening the financial management capacities of the PIU and EAFS units through on the job-training and formal PFM trainings. 123. Environmental and Social risk is High. This is due to the high likelihood that exogenous environmental and social risks could adversely affect the achievement of project objectives and, or sustainability of results. Key social risks include: a) ensuring security for project operations and associated workers b) exclusion of vulnerable, marginalized and minority members of the community from project benefits amplified by the context of limited resources against widespread need; c) selection bias and elite capture, where project benefits are diverted to less-vulnerable individuals and locations; d) poor access to beneficiaries for meaningful community engagements and difficulty in monitoring social harm e) inward migration to targeted districts, which may upset community dynamics and perpetuate social and environmental fragility f) sexual exploitation and abuse, sexual harassment (SEA/H) and other forms of GBV; and g) systemic weakness in the capacity of government to identify, understand and preventing adverse social impacts on the project. All social and environmental risk mitigation measures will be detailed in the appropriate ESF instruments, for example, GBV Action Plan, Pest Management Plan, Stakeholder Plan. 124. Stakeholders Risk is High Opposition from some stakeholders (civil society, private sector organizations, Al Shabaab, and other members of the general public), in light of the sectarian nature of the conflict and violence, can have a negative impact on the achievement of the PDO. The project objectives are, however, clear and through a people- centered approach, use of trusted implementing partners, and targeted communications strategy, it is hoped that they should generally be well understood by an all stakeholders. 125. Security Situation Risk is High. Much of Somalia remains in conflict which affects access to locations and insecurity for staff, both national and international. Mitigation measures will include standard operating procedures – to include Page 45 of 79 The World Bank Somalia Crisis Recovery Project (P173315) a security decision-support system for government - as well as further training on risk analysis and monitoring for the PIU. 126. The reputational risk to the WB is Substantial. And reputational risks also exist for the FGS, particularly in relation to the INGOs and UN agencies implementing on behalf of the Government. Risk mitigation through safeguards will ensure the Project’s success and safeguard the World Bank’s reputation. FGS reputational risk will be mitigated through an MoU with the Government to agree on key principles of engagement e.g. Government positioning and communication, together with the need for establishing a harmonized beneficiary registry / targeting methodology. It is important for the Project that the FGS is seen by citizens to be delivering services. Page 46 of 79 The World Bank Somalia Crisis Recovery Project (P173315) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Somalia Somalia Crisis Recovery Project Project Development Objectives(s) To support the recovery of livelihoods and infrastructure in flood and drought affected areas and strengthen capacity for disaster preparedness nationwide Project Development Objective Indicators RESULT_FRAME_TBL_ PD O Indicator Name DLI Baseline End Target Early and integrated recovery from the immediate floods and drought shocks Number of people with improved access to livelihoods support 0.00 1,203,650 - 1,719,500 (Text) Number of female-headed households benefiting from livelihood 0.00 116,375 - 166,250 inputs (Text) Number of women benefiting from cash-for-work and 0.00 221,667 - 316,667 conditional transfers (Text) Number of female-headed farming households benefiting 0.00 66,500 - 95,000 from agricultural inputs (Text) Medium-term rehabilitation of flood damaged infrastructure and services Page 47 of 79 The World Bank Somalia Crisis Recovery Project (P173315) RESULT_FRAME_TBL_ PD O Indicator Name DLI Baseline End Target Number of households with access to improved infrastructure 0.00 1,608,192 - 2,297,417 and basic services (Text) Number of female-headed households with access to 0.00 804,096 - 1,148,708 improved infrastructure and basic service (Text) Longer-term integrated solutions for flood risk management Improved national disaster preparedness and response No Yes mechanisms (Text) Number of people benefiting from improved flood risk 0.00 525,000 - 750,000 management (Text) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name DLI Baseline End Target Immediate basic services and livelihood support Integrated Locust control services (Text) 0.00 48,188 - 68,841 Number of farming households benefiting from livelihood inputs 0.00 11,083 - 15,833 (Text) Number of female-headed households benefiting from 0.00 5,542 - 7,917 livelihood inputs (Text) Number of persons benefiting from cash-for-work and conditional cash transfers (Text) 0.00 443,333 - 633,333 Number of women benefiting from cash-for-work and 0.00 221,667 - 316,667 conditional transfers (Text) Number of farming households benefiting from agricultural 0.00 133,000 - 190,000 inputs (Text) Page 48 of 79 The World Bank Somalia Crisis Recovery Project (P173315) RESULT_FRAME_TBL_ IO Indicator Name DLI Baseline End Target Number of female-headed farming households benefiting 0.00 66,500 - 95,000 from agricultural inputs (Text) Number of livestock treated or prevented from vector-borne 0.00 110,833 - 158,333 diseases (Text) Number of persons benefiting from healthcare services (Text) 0.00 8,867 - 12,667 Number of women benefiting from healthcare services (Text) 0.00 4,433 - 6,333 Percentage of gender based violence (GBV) survivors in targeted communities who receive GBV case management 0.00 56 - 80 support in line with international standards (Text) Citizen Engagement Beneficiaries that report that their communities were consulted and their project-related grievances were addressed 0.00 75.00 (Percentage) Medium-term flood recovery KMs of roads rehabilitated (Text) 0.00 65 - 93 Number of households with restored access to WASH services 0.00 6,207 - 8,867 (Text) Number of female-headed households with restored access to 0.00 3,103 - 4,433 WASH services (Text) Proportion of households with access to improved sanitation 0.00 Actual services (NPD-9 indicator linked to SDG 6) (Text) Length (km) of rehabilitated river channels (Text) 0.00 20 - 34 Number of irrigation schemes rehabilitated (Text) 0.00 14 - 20 Number of health facilitaties restored (Text) 0.00 7 - 10 Project Management Number of initiatives/projects identified by females that been addressed by the project (Text) 0.00 40% Number of key decision-making committees/groups that include 0.00 30% Page 49 of 79 The World Bank Somalia Crisis Recovery Project (P173315) RESULT_FRAME_TBL_ IO Indicator Name DLI Baseline End Target at least 30% of women representation (Text) Percentage of females benefited from the referral pathway (Text) 0.00 70% Contingency Emergency Response Percentage of persons appropriately diagnosed, treated and supported (Text) 0.00 53% - 75% IO Table SPACE UL Table SPACE Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Persons - benefiting from livelihood support; engaged Number of people with improved access in cash-for-work; supported Bi-annual Aggregated Progress Report PIU to livelihoods support with agricultural inputs; obtained WASH and health services Women or female-headed households - benefiting from livelihood support; Number of female-headed households engaged in cash-for-work Bi-annual Aggregated Progress Report PIU benefiting from livelihood inputs and conditional cash grants; supported with agricultural inputs; obtained WASH and health services Page 50 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Persons engaged in cash- Number of women benefiting from Progress for-work to restore water Bi-annual Aggregated PIU cash-for-work and conditional Report infrastructure and transfers conditional cash transfers Number of female-headed farming Provision of seed packages, Progress Bi-annual Aggregated PIU households benefiting from livestock feed-stocks and Report agricultural inputs cash-for-work Households with improved Progress Number of households with access to access to roads, WASH, Bi-annual Aggregated PIU Report improved infrastructure and basic services irrigation and health facilities Female-headed households Number of female-headed Progress with improved access to Bi-annual Aggregated PIU households with access to improved Report roads, WASH, irrigation and infrastructure and basic service health facilities Establishment & functioning of the NEOC; Public-Civil Society Improved national disaster preparedness collaborative model for PIU and response mechanisms crisis response & preparedness, and; Country- level preparedness enhanced People benefiting from flood risk management interventions, such as flood Progress Number of people benefiting from risk mapping, spatial Bi-annual Population PIU Report improved flood risk management planning, citizen engagement, and rehabilitation of river/flood relief channels Page 51 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Primarily focused on aerial Bi-annual FAO Progress Report FAO Integrated Locust control services spraying of bio-pesticides in and around breeding areas Provision of seed packages, Number of farming households benefiting Bi-annual FAO Progress Report FAO livestock feed-stocks and from livelihood inputs cash-for-work Number of female-headed Provision of seed packages, Progress Bi-annual Aggregated FAO households benefiting from livelihood livestock feed-stocks and Report inputs cash-for-work Persons engaged in cash- Progress Number of persons benefiting from cash- for-work to restore water Bi-annual Report for-work and conditional cash transfers infrastructure and conditional cash transfers Women engaged in cash- Number of women benefiting from Progress for-work to restore water Bi-annual PIU cash-for-work and conditional report infrastructure and transfers conditional cash transfers Progress Number of farming households benefiting Provision of seed packages Bi-annual PIU reports from agricultural inputs and farming tools Number of female-headed farming Progress Provision of seed packages Bi-annual PIU households benefiting from report and farming tools agricultural inputs Treatment and or Progress Number of livestock treated or prevented Bi-annual PIU prevention medication report from vector-borne diseases provided for livestock Page 52 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Provision of basic health Progress Number of persons benefiting from Bi-annual PIU services including medical report healthcare services supplies Provision of basic health Progress Number of women benefiting from Bi-annual PIU services including medical report healthcare services supplies Percentage of gender based violence Provision of Gender Based (GBV) survivors in targeted Violence (GBV) and Sexual Progress Bi-annual PIU communities who receive GBV case Exploitation and Assault report management support in line with (SEA) and child protection international standards measures Beneficiaries that report Beneficiaries that report that their that their communities were Progress communities were consulted and their PIU consulted and their project- report project-related grievances were related grievances were addressed addressed MIS and Rehabilitation of small-scale Bi-annual Project Progress Report KMs of roads rehabilitated and feeder roads to connect Reports farms to market Community-led MIS and rehabilitation of water and Number of households with restored Project Progress Report sanitation systems - shallow access to WASH services Reports wells, toilets, boreholes, piped schemes, etc. Community-led Number of female-headed rehabilitation of water and Bi-annual households with restored access to sanitation systems - shallow WASH services wells, toilets, boreholes, piped schemes, etc. Proportion of households with access to improved sanitation services (NPD- Page 53 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 9 indicator linked to SDG 6) MIS and Length (km) of rehabilitated river Rehabilitate pre-existing Bi-annual Project Progress Report channels river irrigation channels Reports MIS and Community-led restoration Number of irrigation schemes Bi-annual Project Progress Report of damaged irrigation rehabilitated Reports schemes MIS and Rehabilitate and re-equip Bi-annual Project Progress Report Number of health facilitaties restored damaged primary and Reports secondary health facilities At least 40% of total Number of initiatives/projects identifiedinitiatives or sub-projects Actual Aggregated by females that been addressed by the (across all project project components) to have been identified by females. Any project associated Number of key decision-making MIS and Progress decision-making committee Aggregated committees/groups that include at least Reports or group that demonstrate 30% of women representation 30% women representation Number of females who MIS and Project Percentage of females benefited from the have benefited from the Reports referral pathway referral pathway set-up or promoted by the project Mitigate and response MIS and Percentage of persons appropriately initiatives for epidemic or Progress diagnosed, treated and supported outbreak of public health or reports other health crisis Page 54 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ME IO Table SPACE Page 55 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 1: Gender Analysis COUNTRY: Somalia Somalia Crisis Recovery Project 1. Women and girls, particularly among displaced populations, are among the most vulnerable in Somalia, to extreme poverty, marginalization and conflict and climate-related shocks. Women and girls face multiple constraints including lack of adequate shelter and basic services, limited economic opportunities and lack of control over critical resources, such as access to land, finance, and other inputs. The recent floods and locust crisis exacerbate these vulnerabilities, through lost shelter, through lost livelihoods and through impeded access to critical services such as health care and expose women and girls to further constraints and protection challenges. Given women’s circumscribed status in Somalia society, women further lack access to decision-making structures to inform recovery and resilience strategies or to raise concerns should those initiatives fail to meet their needs or constraints. 2. In the face of recurring crises, including from drought, flooding, or food security crisis including famine, Somali woman have played an important role assuring household resilience. At the same time, given pervasive disparities between men and women, climate-related disasters and other shocks have a disproportionate impact on the livelihoods, safety and wellbeing of women and girls. Although women play a critical role in the maintenance of household livelihoods, they generally have less access to productive resources, services and employment opportunities, contributing to a significant gap between men and women’s productivity. This productivity gap places women at greater risk to hazards, such as flooding and infestations, as livelihoods are lost. 3. Vulnerability and exposure to protection challenges, such as physical and sexual violence and sexual exploitation and abuse, often worsen in the context of conflict and natural disasters, including droughts and flooding. Loss of access to food, shelter and services in particular can result in women’s increased reliance on marginal, inconsistent and hazardous livelihood strategies, which often increases exposure to violence and varying forms of sexual exploitation and abuse. Following the most recent floods, an assessment conducted by UNFPA and implementing partners highlight that damages and access challenges to GBV one-stop centers as a result of flooding has impeded support for women and girls, in particular survivors of gender-based violence. The assessment identified over 20,000 women and girls who face increased exposure to GBV extending from flood-related displacement. Gender-Relevant Actions 4. The SCRP activities will target and benefit women38 by ensuring that dedicated consultations will be carried out with women and female-headed households to ensure their participation in identifying and addressing their unique needs and constraints. While female-headed households existed prior to the flood, their number has increased following the disaster. To address critical livelihood and service gaps, differentiated approaches for immediate and integrated livelihoods and basic services will be developed to meet the specific needs and constraints of women and female-headed households affected by the floods through the early recovery and locust response components. 5. In light of women’s increased vulnerability to sexual exploitation and abuse and other forms of GBV, the project will move beyond a risk management approach and look to strengthen GBV and child protection interventions , with 38 Actions relevant to addressing the gender gap are discussed in each relevant interventions of the PAD but are summarized in this section. Page 56 of 79 The World Bank Somalia Crisis Recovery Project (P173315) a focus on identification and strengthening of referral pathways and GBV service providers to enable multi-sectoral, survivor-centered care for GBV survivors. Given women’s weaker engagement in or access to community and decision- making structures, the Project will aim to ensure women’s inclusion and participation in key decision-making and grievance structures, including participation in community grievance committees, development of the integrated community preparedness, adaptation, and response plans. Finally, the Project will also seek to ensure greater gender balance in recruitment and retention of Project-related staff, for example, by ensuring the PIU also contains a balance of qualified women and men. Gender-related indicators 6. Relevant indicators will be disaggregated by gender to track impact of project activities on female beneficiaries and particularly female-headed households; for example, Number of female-headed households benefiting from improved infrastructure and basic services; Number of female-headed households with restored access to WASH services; and Number of women benefitting from health care services. Additionally, the Project will further include gender-specific indicators to monitor progress in addressing identified gaps related to access to livelihoods, access to quality care in GBV response, and access to decision-making or grievance structures under the Project. C. Number of female-headed households benefiting from livelihood inputs D. Number of women benefiting from cash-for-work and conditional transfers E. Number of female-headed farming households benefiting from agricultural inputs F. Number of female-headed households with access to improved infrastructure and basic service G. Number of female-headed households benefiting from livelihood inputs H. Number of women benefiting from cash-for-work and conditional transfers I. Number of female-headed farming households benefiting from agricultural inputs J. Number of women benefiting from healthcare services K. Percentage of GBV survivors in targeted communities who receive GBV case management support in line with international standards L. Number of female-headed households with restored access to WASH services M. Number of initiatives/projects identified by females that been addressed by the project N. Number of key decision-making committees/groups that include at least 30% of women representation O. Percentage of females benefited from the referral pathway 7. Additional ‘custom’ indicators will also be added to the POM to track gender-related issues, such as for the GRM, etc. Page 57 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 2: Detailed Project Description COUNTRY: Somalia Somalia Crisis Recovery Project 1. This annex provides a more detailed description of the indicative activities targeted under the Project . The Project is designed to create immediate, medium and long term impacts through a mix of the following sets of interventions: (a) early and integrated recovery from the immediate floods, as well as a national locust impact prevention response; (b) medium-term rehabilitation of flood damaged infrastructure and services; (c) longer-term integrated solutions for flood risk management and developing sustainable institutional models for crisis recovery and preparedness, including national disease surveillance and locust early systems; and (e) a health/COVID-19 specific Contingency Emergency Response Component, and which is flexible enough to accommodate financing from the CRW Early Response Allocation. 2. More detailed and comprehensive information regarding the Project’s design and component descriptions will be included in the POM. 3. Component 1: Immediate basic services and livelihood support (US$ 30 million) a) Restoring WASH access through simple light works using cash-for-work (conditional) for short-term income assistance to vulnerable households across flood affected districts in Hirshabelle, South West, and Jubaland in exchange for low-skilled manual labor. Where possible, this may entail the deepening of hand-dug wells, debris removal, and repairs and maintenance of the assets rehabilitated under Component 2. b) Immediate desert locust preventive activities at a national level will provide surveillance to guide control operations and livelihoods assistance; procure bio-pesticides to facilitate future ground and aerial spraying in and around breeding areas; conduct impact assessments on the effectiveness and safety of control measures; roll out sensitization campaigns to alert communities of control operations and corresponding safeguard measures; c) Restoring and protecting agricultural crop production will provide agricultural inputs, such as seed packages (maize, sorghum, cowpea, sesame and horticulture crops), rudimentary farming tools, and procure and pre- position livestock feed-stocks in both the flood affected states, as well as at a national level for the locust affected parts. d) Preventing vector-borne diseases to livestock will provide enhanced monitoring and preventive and curative treatment of vector-borne diseases to ensure the good health of livestock in riverine flood-affected areas. e) Accelerating the revitalization of basic health service provision will provide basic package of health services, including strengthening of GBV service provision and referral pathways for survivors of GBV (GBV and relevant child protection measures). This could also include capacity support to mobile health outreach teams, community health workers, and district health centers. f) Provision of health and nutrition services could finance the cost of delivering Somalia’s Essential Package of Health Services to flood-affected populations. g) Supporting household hygiene promotion and treatment, such as hygiene promotion campaigns and the distribution of chlorine tablets. Page 58 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 4. Component 2: Medium-term flood recovery (US$ 42 million) will support the rehabilitation of the following critical infrastructure in line with build-back smarter standards, and community level structural mitigation efforts for slope protection and environmental rehabilitation. This may include: a) Rehabilitating damaged transport infrastructure will rehabilitate i) small-scale road infrastructure critical for sustenance of lives and livelihoods (farm-to-market roads), including feeder and internal roads, earthen and gravel roads, and walkways and footpaths within the community providing access to the arterial or local road system; and ii) low-cost structures such as drainage structures, pipe culverts, box culverts, land footbridges; road protection works including, flood retaining walls, protection of slopes, jetties, gully reclamation, cross water drainage and embankments. b) Rehabilitating municipal Water Supply and Sanitation Schemes will support community-led rehabilitation of communal water and sanitation systems in line with protection standards and build-back-better standards,39 including for shallow wells, toilets/latrines, boreholes, piped schemes fed by boreholes or springs, ancillary infrastructure, and water supply and solid waste facilities—targeting schools, clinics, and households, as well as the distribution of hygiene kits. c) Rehabilitating Water Resources and Flood Risk Management Infrastructure will address future flooding through flood risk reduction works, including: (i) river bank protection, afforestation of river banks and localized embankment repair works in critical flooding rivers; (ii) restoration of storm-water drainage; (iii) and the rehabilitation pre-existing river irrigation channels which has key role in flood risk management; (iv) selective dredging to restore original river channels that have silted up. d) Restoring irrigation schemes in support of agrarian livelihoods will support community-led restoration of damaged pre-existing irrigation schemes such as the reconstruction of storm drains and waterways, the reclamation of gullies and desilting of weirs, etc. e) Rehabilitating damaged health facilities will rehabilitate and re-equip damaged primary and secondary health facilities, as well as provide technical assistance for the restoration of health services. 5. Component 3: Longer-term disaster risk preparedness (US$ 39 million) will set the analytical and policy groundwork and capacities to enable a government-led, integrated approach to flood and drought risk management and preparedness. a) Piloting Integrated Flood-Drought Preparedness and Response Solutions at a national level including community level structural and nonstructural interventions for strengthening the coping capacities of communities through strengthening of their livelihoods and access to basic services. b) Flood Risk Management for Long Term Resilience will address the enhancement of policy, institutional, and planning for integrated flood risk management, including; (i) development of a national flood and drought risk management action program, (ii) flood risk assessment and hazard mapping; (iii) management plan for Juba and Shebelle Rivers; (iv) a study of critical water management infrastructure for flood risk reduction for Beledweyne; (v) flood risk reduction interventions for Beledweyne, such as urban planning and community engagement as a national pilot; and (vi) technical assistance for integrated flood risk management capacity of Federal and state government sharing Beledweyne challenges and experiences. c) Supporting Hydromet and Early Warning Systems for generating and disseminating hydromet data that can be used by multiple sectors, through: (i) technical assistance for designing a fit-for purpose, cost effective, and integrated hydromet system; (ii) the development of the key components of the integrated hydromet system; and; (iii) capacity building to ensure functioning hydromet services. 39 Includes female and child-friendly spaces. Page 59 of 79 The World Bank Somalia Crisis Recovery Project (P173315) d) Supporting the Operationalization of the National Drought Recovery and Resilience Framework (RRF) Secretariat which provides a strategic and operational pathway to building longer-term drought resilience through: (a) supporting the institutionalization of the systematic prioritization and investment planning processes for medium to long term drought recovery and resilience building needs introduced under the RRF; (b) strengthening aid tracking and institutional coordination systems for RRF implementation, and; (c) putting in place systems for programmatic monitoring and evaluation across various partner programs related to the RRF. e) Supporting an Emergency Managements Systems Approach delivered through a National Emergency Operations Centre (NEOC) will include (i) the equipping within federal MoHADM and OPM of an Emergency Operations Centre; (ii) capacity development and technical assistance to NEOC and state-level DRM agencies to operationalize the Centre; (iii) technical assistance to MoHADM to develop standard operating procedures for disaster preparedness and anticipatory action; and (iv) support to the Somalia Capacity Development Action Plan (2020-2021) for internal displacement. There are a small number of community-level DRM committees that are currently being piloted by INGOs, and which could serve as useful platforms for scale-up and with linkages to state and national systems. f) Developing and operationalizing a Longer-term Public-Civil Society Collaboration Model for Crisis Response and Preparedness that links a national crisis response mechanism with sources of predictable financing, early warning and prior contracting arrangements with civil society networks for community level disaster response and preparedness in support of FGS and FMS. g) Capacity Building and Technical Assistance to MDAs: including addressing miscelleneous capacity building and system devlopment needs of the FGS and FMS ministries, departments and agencies relevant to the objectives of the project. h) Locust early warning: establish local reporting mechanisms (hotline or call center); build capacity through training and mobility support; and assist the rehabilitation of desert locust early-warning and control systems, t a national level. i) Food security information and early warning: build capacity to better monitor multiple threats, e.g. COVID-19, food shortages, interruption of food supply chains, food prices, decline on remittances, etc. Support data collection, monitoring of location and specific risks, analysis and impact of livelihoods and preparation of briefs. j) Disease Surveillance & Response System and enhancing laboratory capacity: Strengthening Somalia’s Integrated Disease Surveillance and Response System and enhancing laboratory capacity to ensure the timely detection of etect pathogens (including for COVID-19). k) Rehabilitating, developing, and equipping selected health facilities for the delivery of essential health services. Drawing on the findings of a proposed laboratory systems assessment, this may include (a) material support, such as laboratory equipment and supplies, (b) technical assitance, including the development and roll out of training curriculum/guidelines for surveillance, biohazards, field epidimeology, organizational development, and referrals at Federal, statem and local levels, (c) capacity injections, and (d) facilitating exchanges to learn from successful laboratories outside of Somalia, as well as establishing linkages between laboratories within Somalia and with external laboratories to facilitate referrals. 6. Component 4: Project Management (US$ 6 million). This component will support overall Project management and coordination by the Project Management Unit located the Ministry of Finance including: financial management , procurement, monitoring and evaluation , environmental and social safeguards compliance, technical quality assurance, preparation of subproject designs and construction supervision services, grievance redress, and GBV/SEA and referral and protection. An independent verification agent (IVA) will validate results. The PMU is expected to provide close implementation support to the FMS and state level project implementation units by engaging a technical advisory consultancy. Page 60 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 7. Contingency Emergency Response (US$ 20.5 million). In anticipation of activating the CERC to respond to an emergency, an Emergency Response Operations Manual will be prepared by the PIU as a condition of disbursement and annexed to then POM. To trigger the CERC, the FGS needs to declare an emergency or provide a statement of fact justifying the request for the activation of the use of emergency funding. In addition to the funds allocated to this Component, the Government may request the Bank to re-allocate undisbursed project funds to support response and reconstruction. If the World Bank agrees with the determination of the disaster/emergency, and associated response needs, this Component would allow the FGS to request the World Bank to utilize the following resources: (i) the funds allocated for the Component; and (ii) draw resources from the unallocated expenditure category and/or re-categorize and reallocate financing from other project components to cover emergency response and recovery costs. For health emergencies, CERC activities may include: (i) providing health and nutrition services under the Essential Package of Health Services; (ii) setting up temporary field health facilities; (iii) strengthening the Integrated Disease Surveillance and Response System to detect pathogens, and the primary health systems’ ability to diagnose emergency pathogens (iv) developing an emergency operations and response health center; and (v) strengthening of emergency response communications. Page 61 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 3: SCRP Roles and Responsibilities COUNTRY: Somalia Somalia Crisis Recovery Project PIU Project Steering Committee FGS MDAs FMS MDAS Project (PSC) Management Support Membership Roles & Roles & Responsibilities Membership • OPM chairs Responsibilities o Supports recovery o Support the • Domiciled in MOF • DGs from FGS and FMS o Technical investment planning PIU in project • MOF and MoPIED MOPIED review of FMS o Develop project management, personnel • Sr. Reps from FGS OPM investment and investment plans in including SPT and MOF procurement consultation with the FGS o Assist in the Roles & Responsibilities • FGS MDAs, as needed plans, MDAs development o Approve and update work considering o Coordinate FMS inputs to of and procurement Roles & Responsibilities compliance component activities procurement plans/schedules in STEP for o Review and approve state with relevance o Facilitate FMS component plans good/services investments plans standards activity implementation o Capacity o Procure good/services o Approve component o Supports PIU monitoring building of the through specialized service activity design and of activity PIU providers, including the procurement plans implementation and end preparation of TOR o Review progress against of project certification o Seek no-objections from targets during periodic o Provide technical support the World Bank for performance/ compliance to identify interventions relevant activities under reviews and prepare designs, or the Project o Provide strategic decision- TOR for outsourcing the o Monitor implementation making, policy guidance, scheme design (if MDA progress of the Project, trouble-shooting/dispute lacks capacity) including quality, financial, resolution o Sign-off on sector and contract aspects, o Validate of broad resource designs through regular assessment, allocation o Support environmental supervision, reporting, and recommendations and and social screening of progress review meetings course corrections all schemes and prepare o Carry out field o Validate state ESIA/ESMP/RAP/ARAP inspections for reviewing performance assessments (as needed) and assessing on-field and performance-based o Utilize and promote the performance of the Project, allocations to states GRM and evaluating impacts of o Liaise with enforcement o Provide some services, ongoing and completed agencies to ensure project such as logistics, storage, project activities security distribution, transport, o Monitor compliance and data (depends on with social and state) environmental safeguards and carry out social impact assessments o Procure technical assistance (as needed) to conduct environmental and social screening of all schemes and prepare ESIA/ESMP/RAP/ARAP (as needed) Page 62 of 79 The World Bank Somalia Crisis Recovery Project (P173315) o Procure technical assistance to set up grievance redress mechanism(s), including gender-specific mechanisms o Ensure that the design and evaluation of the Project reflects a gender- sensitive approach and gender-responsive measures o Monitor the use and effectiveness of the Project grievance redress mechanism(s) o Monitor compliance with World Bank procurement guidelines, Project principles, national regulations, and international standards o Develop a comprehensive project communication strategy and plan, providing regular and timely analysis and distribution of Project information to all key stakeholder groups and project beneficiaries o Serve as the PSC secretariat Operate project accounts, payments, withdrawal applications, accounts and reports, and auditing o Make payments to consultants/contractors based on MDA certification of the completion of construction works o Maintain a sector- specific consultant database State Project Team (SPT) Service Providers Membership For component 1 (early • Led by a ‘Project Focal recovery and locust control), Point’ service providers will lead state-level activity Roles & Responsibilities implementation o Backstop federal PIU, including the consolidation Roles & Responsibilities of state procurement and o Conduct environmental work plans and social screening of o Support the all schemes and prepare operationalization of a ESIA/ESMP/RAP/ARAP Page 63 of 79 The World Bank Somalia Crisis Recovery Project (P173315) state-level results o Prepare detailed monitoring system implementation plans o Collect Project data and corresponding from the relevant state line designs departments o Utilize and promote the o Help monitor state GRM compliance with social and o Facilitate community environmental safeguards, engagement and including GRM participatory planning o Coordinate across mechanisms to plan for, existing state coordination implement, and monitor mechanisms and partners to project activities plan for, implement, and o Facilitate FGS/FMS MDAs monitor project activities engagement and capacity o Ensure coordination and building in state planning, complementarity of project implementation, monitoring, activities at state level and community engagement o Maintain records of o Support the MDA operating costs for operationalization of a state- relevant delivery (depends level results monitoring on state) system, including routine o Coordinate FGS/FMS reporting to the PIU and SPT MDAs input in state planning, implementation, and monitoring Page 64 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 4: Results Monitoring and Evaluation Framework COUNTRY: Somalia Somalia Crisis Recovery Project 1. Approach: the Project adopts a multi-tier approach to results determination, results monitoring, quality oversight, knowledge management, citizens engagement in monitoring efforts, third-party monitoring and evaluation. The focus is people, process, practice and policy; therefore, the indicators and measures are both qualitative and quantitative, capturing both direct beneficiaries and institution capability. 2. Results Framework: the framework is designed to accommodate a certain level of flexibility using a range for targets based on preliminary assumptions of budget allocation. Figure 5 outlines the process for constructing the results framework. The indicators and targets may be adjusted to reflect more accurate resource allocation once the project moves into initiation phase. Prioritization of interventions and incremental performance against each indicator justifies the use of target ranges for a project of this design. Figure 5: Results Framework Road Map 3. Monitoring: existing methods of field monitoring will be adopted by each implementing partner with a level of harmonization to increase efficiencies of project management by the PIU. Monitoring protocols will be defined in the POM and/or the M&E Plan. The PIU will ultimately be responsible for performance against each indicator. Therefore, in partnership with each implementing partner appropriate ad-hoc dip-stick monitoring surveys will be introduced. In addition, the PIU will conduct the maturity/capacity index on an annual basis to capture data for component 5. It is envisioned that the PIU will set-up a M&E Community of Practice (CoP) for closer coordination, Page 65 of 79 The World Bank Somalia Crisis Recovery Project (P173315) exchange of lessons and increase effectiveness. Furthermore, PIU monitoring is not limited to the results framework, it also includes – financial fiduciary measurements and safeguard monitoring as determined by the ESMF. 4. Quality oversight: regular quality supervision and certification will be conducted by the PIU. This will be determined in partnership with implementation partners. Quality will be attributed to the delivery of interventions: reach and works. It is anticipated that the PIU will compile quality criteria for open and transparent oversight, with the intention of institutionalizing appropriate good practices. 5. Knowledge management and reporting: A Management Information System (MIS) will be created for this project, adopting lessons from other World Bank supported projects in Nigeria and Zimbabwe. The system will host information related to geographical spread, financial spend, results progress, safeguards compliance, procurement tracking, project implementation risks and lessons capture. The PIU will be the system owner, while implementing partners will have access and use of the platform for daily operations and timely management decision-making. The MIS will also have a function for reporting, a systematized platform to capture information with a back-end consolidating function. The M&E CoP members will be the primary users of the MIS and will be responsible for all reporting, in coordination with all relevant subject leads and sub-project managers. The UN principles on data protection and privacy will be observed. 6. Citizens engagement: given that the project is a demand-driven, involvement of citizens is paramount for each stage of the project life-cycle, so as for monitoring activities. Citizens and community groups will play a critical role in monitoring activities of the project as determined and agreed by the PIU and respective implementing partners. Citizens will help in – validation of needs, assessing awareness of service delivery, expressing satisfaction of service usage and providing feedback on process and output. The projects GRM will be a key vehicle for this aspect of engagement. Evidence generated through multiple avenues of citizen engagement may contribute to better service delivery for current and future interventions. A 360-degree loop of information flow and communication will help strengthen the nexus between implementing partners, citizens and the government. 7. Third-party monitoring: an independent agency or group of consultants will be engaged by the PIU on a competitive basis to provide objective feedback on process and performance. The assessment may include a quantitative survey among direct beneficiaries allowing for trend analysis. The scope of the assessment will be determined in consultation with the World Bank by the PIU, with the assessment plan to run every six months. The scope may cover topics such as – results, progress against indicators; strategic focus of the project and to highlight any change of direction or new requirements (if any); operational lessons and challenges (if any). 8. Evaluation: The World Bank reserves the right to conduct an end-line evaluation to document high-level learning and demonstrate change against the project’s Theory of Change. 9. Alignment: The results framework is designed to align to other national and donor interventions. In particular, from the Somalia National Development Plan 2020 – 2024: Proportion of households with access to improved sanitation services (NPD-9 indicator linked to SDG 6). Similarly, ‘Percentage of interviewees (men and women) who say they knew the kind of assistance (services/items/works) they were entitled to receive prior to the intervention’ is aligned to the protection mainstreaming tool used by humanitarian partners. Page 66 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 5: Climate Co-Benefits: Link to Project Activities COUNTRY: Somalia Somalia Crisis Recovery Project 1. The proposed project aims to respond to the immediate needs of affected populations that have experienced the compound effects of several recurrent climate related disasters, enable the rehabilitation of infrastructure damaged by the most recent floods to climate resilient standards, and support longer-term resilience building to provide the analytical and policy groundwork for an integrated approach to flood and drought risk management. The information below articulates the direct link between the project’s climate change vulnerability context and specific project activities, per component. 2. Component 1: Immediate basic services and livelihood support. While the objective of this component is mainly focused on addressing the immediate flood needs, climate co-benefits are expected for several of the activities across the component. The schemes implemented under the cash-for work programs aimed to support livelihoods restoration will be designed with due consideration of climate and disaster risk. Restoring WASH access through simple light works will have the co-benefit of improving access to water in areas frequently affected by drought. Activities under this component will also respond to a climate change-induced emergency situation, where unusually heavy rains, aided by a powerful cyclone off Somalia in December 2019 have acted as major underlying factors for the desert locust infestation. In this regard, the component provides significant climate co-benefits by responding to the crisis and limiting the proliferation of the locust thereby reducing impacts. The Project will also prioritize schemes that receive climate co-benefits, and this will be outlined in the Project’s Operation Manual. 3. Component 2: Medium-term flood recovery. The investments under this component will provide substantial climate co-benefits both because (i) the rehabilitation of critical infrastructure and services will help to improve the well-being, economic prospects, and quality of life for some of the most vulnerable people; thereby improving their capacity to cope with climate-induced stressors, and (2) the investment themselves will be designed and constructed in a resilient manner. Based on the project’s methodology, the geographic targeting will include a criterion to focus on areas that are highly exposed to climate sensitive natural hazards such as flooding and drought. All the investments in infrastructure will be designed to climate resilient standards, in that they are planned, designed, built and operated in a way that anticipates, prepares for and adapts to changing climate conditions. The reconstruction of flood control systems and other measures such as slope protection and environmental rehabilitation will support climate change adaptation to worsening flood conditions. Similarly, in the context of a geographic region often affected by drought and less predictable rainfall and water flows, investments in water supply and sanitation facilities will help to provide communities with improved access to water, while also having a cascading effect on human health and development. Roads constructed under the project will be designed to mitigate against climate related hazards such as increased flooding of roads, slope failures and washouts or pavement deterioration due to increased heat. Other public facilities such as schools and health facilities will be informed by risk mapping to ensure climate resilience in the building locations and construction standards. Adaptive operation and maintenance management approaches also be incorporated to include flexibility from the outset to monitor and adjust to changing conditions over the lifetimes of the newly constructed assets. 4. Component 3: Longer-term disaster risk preparedness. Activities under this component including policies, plans, and strengthening Government capacity to coordinate and prepare for changing climate conditions, including the consolidation of early warning information, will have substantial climate co-benefits. Such activities will build Page 67 of 79 The World Bank Somalia Crisis Recovery Project (P173315) resilience to both current and future climate risks. Under this component, a disease surveillance system of US$ 2.5 million will be implemented, which has climate adaptation co-benefits, since it will help strengthen health systems in a more systematic manner to be able to respond to future health outbreaks that are linked to climate change; for example, changing climate’s impact on the geographical distribution and incidence of vector-borne diseases. Page 68 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 6: Risk Log COUNTRY: Somalia Somalia Crisis Recovery Project Risk Categories Rating (H, S, M or L) Mitigation Measure Political and The overall Political and Governance risk is rated The project works with the FGS and FMSs to create governance High. shared ownership of the project, to be informed by a project-specific consultation and commitment strategy. Political turmoil: FGS/ FMS relations can at times be This collaboration is manifested in various forums: the tenuous and the political cycle is at a critical juncture. FGS Project Steering Committee, Prioritization Upcoming elections in late 2020 or early 2021 could Committee, and State Project Teams, which will include further heighten existing tensions in Somalia, shift representation from relevant technical ministries, the development priorities of the FGS, and possibly departments and agencies. The OPM will provide high- lead to complications in relations between the FGS level oversight over all project governance and FMS. Disruptive spill-over from the FGS political arrangements. The WB visibility into these structures will process on development activity is possible and could also be critical. jeopardize project progress. Overall, the adequacy of political commitment of federal and state infrastructure agencies to create partnerships to strengthen institutions and deliver services can be weak at times. In addition, grievances and tensions continue to exist between some clans and sub-clans. Clan interests, inextricably emmeshed within the current 4.5 construct, can potentially drive disruption. Competition over project resources: Introduction of The project activities will be needs based and aligned project funds in a pre-election year could lead to with the FINA conducted in close collaboration with the contestation around the amounts, locations, and FGS/FMS. The project will engage in transparent timing of spending project resources. Multiple communication to all stakeholders over the selection stakeholders within the FGS and the FMS may lay modalities and sequencing plans for implementation claim to such project finance. that have been developed by the PIU with regional representation. Regular engagement with stakeholders in various forums will ensure close feedback loops and coordination. A belt and braces approach will be adopted by utilizing the services of the UNOPS to support developing approaches in what is a strongly contested political space. The project’s risk management approach – albeit focused on security – needs to essentially ensure concrete buy-in from FMS stakeholders in particular – but also across FGS institutions. If this is ‘perceived’ as a federally driven initiative, it will garner opposition. A conflict-sensitive project design informed by relevant assessments and extensive consultations is expected to mitigate the risk of perception of biased resource allocation, together with local area partnerships built through INGO consortia. Page 69 of 79 The World Bank Somalia Crisis Recovery Project (P173315) Governance: There is low transparency and The project will work closely with the MOF, MoPIED, and accountability in Somalia. Somalia ranks low on most the OPM on the supervision and monitoring of international governance indices and has been governance risks. Additional technical assistance for FM ranked so for the last decade. Transparency and procurement specialists as well as M&E and International ranks Somalia as bottom of all 180 safeguards complement (potentially through specialized countries on its corruption perceptions index with a project management support agencies such as UNOPS) a score of 9 out of 100 points. The Ibrahimi Index of package for a strong PIU able to cope with residual risk African Governance puts Somalia on an overall score emanating from the governance environment. Close of 13.5 out of 100 points for 2017, ranking 54th and collaboration with the PIU between supervision missions bottom of all African countries (South Sudan and will allow the team to detect emerging risks early. Libya ranked 53rd and 52nd respectively). Alternative accountability mechanisms such as the media or civil The federal model of governance to be followed during society are barely functioning with a Press Freedom implementation is critical so that regions are able to ranking of Reporters without Borders of 168 out of form their own priorities which would then be 180 countries in 2018. Somalia also emerges from a responsible for the rights and development of the path of severe corruption and significant incidents of people (including clans) in their areas. embezzlement of public funds, an absence of accountability mechanisms for public servants or politicians, and networks that profit significantly from their absence. An overall lack of effective accountability mechanisms undermines the process of stabilization and state formation. The persistence of spoilers at most levels has further eroded public confidence in a swift and effective departure from past processes and further jeopardizes the emergence of a new cadre of administrators that take up a new spirit of doing business in the public sector. Such behaviors in the political, economic, and security arenas have exacerbated mistrust between state and society and left a vacuum of public authority that has been filled by traditional authorities, religious leaders, and rent- seeking networks of de facto authority Macroeconomic The risk to the PDO from the macroeconomic The flexible design of the project enables it to partially environment is Substantial. Key macro risks include mitigate the risk of macroeconomic shocks affecting FGS drought, or a livestock ban, commercial bank de- priorities and citizen’s emerging needs. A robust risking or the closure of correspondent banks, or a response to potential locust damage is a key mitigating change in remittance or aid flows which finance both measure to prevent food insecurity and sustain livestock consumption and investment. Despite progress, the viability. Federal Government’s fiscal position remains weak and macro-instruments to respond are limited; consequently, the authorities are at risk of structural over-reliance on grant-financing. A disease outbreak, significant locust damage or export bans could wipe out export revenues. Sector strategies The overall risk to the PDO from sector strategies and Remaining engaged at this critical stage is important to and policies policies is Substantial. Sector policies are weak and mitigate future risk and ensure interventions produce there is no overall sector framework; sector higher returns. The project supports development strategies are also not fully funded, and their future approaches that should be undertaken simultaneously funding is uncertain. to reduce risk and vulnerabilities, build resilience, and maintain the capacities of institutions that are still able Development support fails to materialize to function. The success of project will depend in large Page 70 of 79 The World Bank Somalia Crisis Recovery Project (P173315) (moderate): The country remains trapped in a cycle part on informed Government and development partner of climatic shocks, compounded by active conflict. In coordination. This means the ability to target the most this fragile environment, transitioning from an urgent recovery needs through informed decision- overtly humanitarian to development response is making on where recovery resources are used. This will challenging. The intensifying humanitarian be done through capacity to support the humanitarian- challenges in Somalia have the potential to draw development nexus. focus from critical ‘hold the line’ development actions. Lack of coordination with and between World Bank The project team will maintain regular communication supported projects: WB financed projects targeting with related teams to ensure coordination. Potential core government functions (capacity, PFM, recurrent exists to maximize efficiency with other World Bank costs) and investments (urban, rural) may be projects but utilizing joint resources across PIUs. insufficiently coordinated to effectively and efficiently deliver desired results. Technical Design The risk to the PDO from the technical design of the The project is designed with the minimal complexity project is Moderate. The operations are minimally possible in the operational environment of Somalia. complex for an environment such as Somalia, where Limited to five components with sequenced major public works have not been extensively implementation, as well a flexible design and a well undertaken except under emergency and/or military capacitated PIU all mitigate against risk factors motivated situations in the last decades. The PIU has stemming from technical design. The project will focus some experience in developing, designing, procuring, on local labor and labor-intensive technologies and off- and supervising small-scale projects only. the-shelf designs where possible. Additional capacity building, in particular for ESF, and M&E capacity will The main risk remains with increasing expectations of further support the mitigation of technical risk. The the project being able to deliver infrastructure hiring process for PIU staff will start immediately and and/or services simultaneously in various project build on the progress made under the SFF-LD project. locations before sufficient capacity has been Additional resources will be committed to assess the generated in the PIU. There is also a risk of priorities operational environment and existing information from being established which are unrealistic in the context similar partner programs. A clear communication of the physical and economic environment within strategy will address remaining issues as they are which they will provide service. The volatile security identified as implementation progresses. environment and recent attacks on key hotels frequented by qualified professional returnees from Economic benefits of the projects will be generated the diaspora could prevent a swift hiring of the through project-targeted design features such as the use necessary capacity, leading to delays in project of area-based approaches, local labor-intensive implementation. mechanisms, and appropriate technologies for the environment within which they will serve. The sub- The delay in procuring consultancy services; project priorities will be developed through extensive recruitment of incompetent consultants, consultations at the federal, regional, and local level, and institutional and human capacity constraints, and priorities aligned with FGS development objectives in low quality or insufficient technical designs for civil line with the NDP-9. works, could delay activity implementation. Provision of technical assistance and building/strengthening the capacity of federal and regional ministries to manage infrastructure projects. Only Contractors and Consultants with proven record of working in Somalia and have the required resources in plant/equipment, facilities, etc., will be considered. Institutional The risk to the PDO from the institutional capacity for The PIU has some in-house capacity, which will be capacity for implementation and sustainability of the project is strengthened significantly through financial and implementation Substantial. Adequate competent staffing is crucial administrative competence including in the areas of and for the project and its success is heavily dependent human resources, quality assurance, ESF, procurement Page 71 of 79 The World Bank Somalia Crisis Recovery Project (P173315) sustainability upon the quality and experience of local staff in and logistics, and finance. External consultants will play particular. This is particularly relevant in view of the an important role in the design and day-to-day limited field access for expatriate staff. The capacity implementation, including the engagement of reputable of the FGS and the FMS is very low, and no coherent service providers. There are currently significant gaps in rules exist for day-to-day operations. The PIU is the PIU’s M&E and ESF arrangements. among the strongest units in the FGS. Its head and deputy head are experienced team members. The project will allocate substantial resources for However, many positions remain unfilled, key capacity building and a close exchange between the procedures are untested, and core WB policies – in SCRP project team and other WB financed projects (that particular the new ESF - have not yet been applied is, PFM, Capacity Injection, Recurrent Cost, previously; a track record is absent on robust M&E. Procurement, and so on), will ensure cost-effectiveness. The PIU has limited experience with WB financed Moreover, the Project will include an assessment of operations. The risk of PIU members being assigned private sector capacities that can be called on by to other parts of the government exist and is Government to design, implement, and oversee future possible. crisis and early recovery needs. Fiduciary The fiduciary risk to the PDO of the project is High. While designing measures to mitigate risks, the project will seek to minimize the risk of creating parallel systems Risks relate to funds not being used to achieve value- by integrating the FM function into the use of country for-money with integrity in delivering sustainable systems. The project FM aspects of accounting, outcomes. The manifestation of fiduciary risks could reporting, funds flow, banking arrangements, internal reduce donor commitment to the project, depleting controls, oversight, and audit arrangements will be led necessary funds to finalize commitments and by the PIU and supported by technical assistance. To heightening further existing contestation. mitigate capacity constraints, external firms acceptable to the WB will be selected to support the auditor general Limited FM capacity (high): There is a lack of key FM in carrying out the external audit of the project. For more competencies, weak internal controls and oversight, detail on the project's FM risk mitigation, see the Project rudimentary accounting and reporting systems, over Appraisal Summary (Section IV). reliance on external technical assistance, nonexistent banking arrangements, and inadequate internal and external audit arrangements. Limited procurement capacity (high): Lack of public Until the FGS’s public procurement law, regulations, and procurement guidelines and regulations, as well as subsequent legal procurement documents are finalized lack of experience and skills, could slow and approved for use by public entities – procurement implementation and create opportunities for arrangements will be set out in the POM. corruption and fraud. Fraud/corruption (high): Given the absence of a The project intends to mitigate these potential threats robust public financial legal framework and the through: (a) targeted independent monitoring and a risk nascent rudimentary banking systems, the potential management mechanism at the project-specific level; (b) risk of fraud- and corruption-related cases are high. specific aspects on corruption auditing will be included Other internal control incidences that may expose in the ToR for the external audit; (c) targeted FM the project to fraud and corruption include but are procedures and internal control mechanisms across the not limited to (a) late submission of the required project activities shall be detailed in the POM; (d) strong supporting documents; (b) poor filing and absence of FM staffing arrangements (including qualified project minimum standards in the maintenance of the accountants); (e) periodic FM supervision missions; (f) project accounting records; (c) noncompliance to the stringent reviews and monitoring recommendations of approved project work plans and or budget the project Consultative Group and project-specific discipline; (d) monitoring reports and interim financial reporting unauthorized commitment to suppliers; (e) reviews; (g) clear guidelines on asset ownership will be bypassing agreed internal control oversight detailed in the POM, and (h) measures to improve social arrangements particularly in expenditure accountability and transparency integrated into the management expenses; (f) high risks in cash handling project design, for instance, ensuring that project inherent with the existing cash-driven dollarized reports are available to the public. Page 72 of 79 The World Bank Somalia Crisis Recovery Project (P173315) economy; and (g) denial of access to information and or limiting the scope of agreed external monitoring and capacity-development arrangements. Environment Environmental and social risks are both rated High. Design of the project on the locust control component and social Risks posed to the project by E&S risks and potential will be informed by advice from ESF colleagues and unintended consequences posed by the activity on confirm to WB policies and directives. physical, biological, and cultural resources and on human health and safety. A key principle of engagement of the project is ‘do no harm.’ The project will dedicate resources to assess Environment: Specific project locations of activities underlying cleavages and work closely with FGS partners are currently unknown though will broadly be at several levels, as well as facilitating extensive located in rural areas. The current environmental consultations. The PIU is well equipped to tackle baseline, especially relating to environmental underlying perceptions of bias and a communication services, waste management, pollution control, strategy to transparently address issues around topsoil and vegetation management, drainage, marginalization will be developed. erosion and sedimentation, biodiversity, and human health and safety (including workplace and traffic The GRM of the project will be deployed and an iterative safety) are expected to be very low. There is a adaptation mechanism to inform revisions of the flexible potential risk to the environment in locust project design prevention activities e.g. chemical spraying. GBV risk will be addressed through a combination of Social: The project is expected to have mostly mitigation and response activities. This will include a positive impacts. However, the introduction of safety audit program to ensure compliance of NGOs and project resources into fragile environments risks the contractors in meeting GBV minimum standards. The PIU perception of systematic bias by the project. Somalia will contain a dedicated GBV expert, and at the is fragmented along several social cleavages response-level the project will include a GBV referral and either real manifestations or perception of system in the three flood-affected states. marginalization could lead to severe repercussions against the project and its staff. Competition Component 1 of the project allows for strong community between service providers and companies will participation and voice. Other components will follow a emerge during tender processes and the award of a structured participatory process. Community awareness contract will be contested by the losing side. These will be raised through communications campaigns. contestations can easily spiral out and result in high security risks for project staff and competing enterprises. In addition, Somalia is a high-risk country for GBV. And there is a risk that members of marginalized community’s/ minority groups and women are not included in consultations, unable to participate in project implementation, or may be excluded due to restricted access. Stakeholders The risk to the PDO from stakeholders is High. The Strong field level INGO partnering will mitigate any instrumentalization of the project by an array of instrumentalization of the project. Inclusive political and clan actors is high risk. FMSs may object consultation, selection, and validation process will be to the needs-based modality, geographical priorities, followed by the PIU and monitored by the OPM. This will funds flow arrangements, and phasing of the project, ensure broad-based understanding of the project particularly if regions perceive themselves to be at a modalities, including selection of project sites, disadvantage relative to other FMS s in terms of consultation processes, and representation in project resources eventually allocated. committees. The project will adopt the salary scheme developed under the World Bank financed Capacity Injection project and facilitates a transparent discussion with staff Page 73 of 79 The World Bank Somalia Crisis Recovery Project (P173315) and consultants to be hired. Security The risk to the PDO from the security environment is Recognizing that the risk of insecurity cannot be High. completely mitigated, the project is designed to incorporate agile and flexible implementation planning, Somalia remains a highly insecure operational taking into account the regular security advice issued by environment. The FGS faces an ongoing Al Shabaab the FGS and the UN. Principally the security risk will be insurgency, particularly affecting the three flood- mitigated by limiting geographical interventions. affected states. Despite the presence of AMISOM forces the active conflict may inhibit access to The project will implement a security decision-support potential or active project-sites, as well as directly mechanism, which will produce security protocols and threaten project staff and beneficiaries. Criminality is conflict monitoring. Lesson are being drawn from WB- also a strong driver of insecurity. supported projects in NE Nigeria and Afghanistan. The geographical focus on government ‘influence’ The support mechanism will need to evolve into a form areas will consolidate perceptions of the project in of risk management approach that ensured other rural areas. In terms of the insurgency this will stakeholders’ engagement was sound. For example, be a definitive issue. Comprehensive protocols credible clan-based engagement is critical to mitigating through a decision-support system will protect potential clan-based violence. communities, in particular. The WB team will monitor the political and security environment, in collaboration with UN. Additional measures may include (a) holding meetings within Mogadishu International Airport and Nairobi; (b) issuing contracts to firms, instead of individuals, so the firms provide security arrangements that individuals would struggle to make on their own; and (c) placing greater emphasis on Somali staff to deliver, decreasing reliance on international input. The Project will explore the possibility of utilizing the services of a security firm. The World Bank Team will operate under its corporate security guidance and under the UN umbrella. In addition, the WB will hire a security agent to help manage the day-to-day missions of WB staff to Mogadishu. The security/logistics firm hired by the WB will provide reasonable security for an in-country presence to implement the project. Project staff remain at-risk working for international organizations and projects. Close collaboration with its corporate security on missions remains at the heart of operating in Somalia. Reputational The reputational risk to the WB is Substantial. The Risk mitigation through safeguards will ensure the SCRP is a commendable, powerful initiative. It will Project’s success and safeguard the World Bank’s hopefully act as a gateway to further critically needed reputation. FGSs reputation risk will be mitigated WB engagement. through an MoU with government to agree on key principles of engagement e.g. branding and Reputational risks also exist for the FGS, particularly communication, together with the need for establishing in relation to the INGOs and UN agencies a harmonized beneficiary registry / targeting implementing on behalf of the government. methodology. It is important for the project that the FGS is seen by citizens to be delivering services. Overall The overall risk to the project is rated as High. The FGS has some familiarity with WB investment Page 74 of 79 The World Bank Somalia Crisis Recovery Project (P173315) operational requirements though does not have the required capacity to manage projects. High risks posed by the challenging operational environment, continued insecurity, weak institutional capacity, and a negative fiduciary track record will be systematically addressed through project preparation and implementation activities. The up- front work will guide institutional arrangements for project implementation and coordination, as well as WB team support to project activities, supervision and oversight, and clear reporting and accountability mechanisms. The project will invest relatively heavily in providing an effective PIU to deliver small-scale investments in the regions over the project duration. Page 75 of 79 The World Bank Somalia Crisis Recovery Project (P173315) ANNEX 7: Implementation Support Plan COUNTRY: Somalia Somalia Crisis Recovery Project Strategy and Approach for Implementation Support 1. The proposed Project is an emergency, multi-sector operation processed under condensed procedures provided under Operational Policy 10.00, paragraph 12: Projects in Situations of Urgent Need of Assistance or Capacity Constraints; and pursuant to Para 53 of Bank Policy 10[2]: Exceptional Arrangements in Situations of Urgent Need of Assistance or Capacity Constraints. The PIU will be domiciled in the Ministry of Finance, but jointly managed with the Ministry of Planning, Investment and Economic Development, and onwards subcontracting to pre-identified partners for certain activities, as noted in the implementation arrangements for the Project. 2. The design of the Implementation Support Plan has taken into consideration the risks identified in the Risk assessment section of the PAD and the fragile state context. It has also taken into account the intention to work across the relevant geographic regions of Somalia, the fact that this is a project that will use government systems and has an underlying objective to support disaster recovery efforts. A key element of the World Bank’s implementation support strategy would be to monitor these risks closely over the project duration. The WB team will conduct routine risk reviews through Implementation Support Missions (ISM) to identify and agree mitigation measures to be taken by the Project. 3. Given the above, an intensive implementation support regime is proposed by the team. This means that other than routine biannual implementation support missions and a mid-term review mission, a number of technical missions will be conducted by various sector experts covering the various subcomponents. Safeguards compliance will require intensive Bank support owing to the application of the Environmental and Social Management Framework (ESMF) in the complex FCV setting and to this urgent emergency operation. 4. The ISP includes frequent review of implementation performance and progress. The World Bank team will monitor progress on several fronts including (a) key performance indicators as defined in the Results Framework and the project’s contributions to broader programmatic outcomes for recovery and peace building; (b) project implementation; (c) third-party verification of project activities; (d) proper fiduciary management of all activities carried out by the PIU and other implementing agencies; (e) reconciliation of payments with contracts; (f) supervision of large numbers of procurement activities; and (g) monitoring of key legal covenants. Implementation Support Plan and Resource Requirements 5. The World Bank’s Implementation Support Plan for the proposed Project draws from the emergency nature of the project, lessons learned from past World Bank Projects operating in similar fragile environments, and international best practices gleaned from other conflict-settings around the world. The core principles underlying the SCRP ISP are (a) the need for intensive, risk-based implementation support because the Project has been prepared using rapid procedures that did not allow time for very detailed appraisal and (b) maximizing the use of national staff, international staff, and consultants on a needs basis. The plan will be regularly reviewed and revised as required. Page 76 of 79 The World Bank Somalia Crisis Recovery Project (P173315) 6. The World Bank will conduct implementation support missions at least biannually to: (a) review implementation progress and achievement of PDO and intermediate indicators; (b) provide support for any implementation issues that may arise; (c) provide technical support related to project implementation, achievement of results, and capacity building; and (d) discuss relevant risks and mitigation measures. 7. The World Bank team comprises specialists in the areas of disaster and flood risk management, health, education, agriculture (crop cultivation and livestock), water resources, irrigation and WASH, operations, financial management, procurement, social and environment safeguards, and administration. World Bank operational and fiduciary staff are based in Nairobi, Kenya and Washington DC, USA, which will facilitate implementation support and ad hoc problem solving as needed. With regard to specific technical support, experts may be recruited as deemed necessary during project implementation. 8. The World Bank’s procurement, FM, and E&S safeguards specialists will also provide prompt and effective support. In addition to carrying out an annual ex post review of procurement that falls below the prior-review thresholds, the procurement specialist will provide routine hands-on support to the procurement agencies on a needs basis. The FM specialist will review all FM reports and audits and take necessary follow-up actions according to World Bank procedures, working closely with the PFMU of the MoF. Semiannual inputs from the E&S safeguards specialists will be required throughout the project, and both formal implementation support missions and field visits (if security permits) will ensure that the safeguards instruments are implemented in accordance with the World Bank safeguards policies. The Project will also conduct comprehensive fiduciary assessment of the implementing agencies to reduce fiduciary risks. The procurement, FM, and safeguards specialists will also help identify capacity-building needs to strengthen fiduciary and safeguards capacity at the federal and state levels. 9. Information from various sources will be used to assess and monitor the progress of the project throughout its implementation. In addition to the data generated through the project’s management information system and M&E systems, the World Bank will also review the findings and results of third-party assessments and E&S audits that will be undertaken during the course of the project implementation. 10. The following Implementation Support Plan (ISP) reflects the preliminary estimates of the skill requirements, timing, and resource requirements over the life of the Project. Keeping in mind the need to maintain flexibility over Project activities from year to year, the plan will be reviewed annually to ensure that it continues to meet the implementation support needs of the Project. Table 1: Implementation Support Plan Resource Estimate Time Focus Skills Needed Partner Role (labor + mission) First 0-12 months • Project launch • Team Leads • US$ 300,000 • PIU to prepare • Initialization of Project • FM, Procurement project launch components – particularly Specialists and/or • Operationalization of for early recovery Consultants the Project • FM systems functioning • Safeguards Specialist Operational Manual effectively and/or Consultants • Early recovery • Procurement practice • Agriculture, Livestock, component to DRM and Floods, quickly implement Page 77 of 79 The World Bank Somalia Crisis Recovery Project (P173315) • Monitor implementation of Water Resources, rapid disbursing Project activities Irrigation and WASH, components Health, Education • Prepare Specialist/s and/or comprehensive Consultants Project progress and results monitoring reports in advance of each mission • Update implementation and procurement plans routinely • Organize field visits (if security permits) 12-24 months • Monitor implementation of • Team Leads • US$250,000 • In addition to be Project activities - with focus • FM, Procurement above, focus on on early recovery and medium- Specialists and/or medium term term recovery Consultants recovery component • FM, Procurement, • Safeguards Specialist Safeguards and/or Consultants • Mid-term Review • Agriculture, Livestock, DRM and Floods, Water Resources, Irrigation and WASH, Health, Education Specialist/s and/or Consultants 24-36 months • Monitor implementation of • Team Leads • USS 250,000 In addition to be Project activities - with focus • FM, Procurement above, prepare Mid- on medium term recovery Specialists and/or term Review (MTR) • FM, Procurement, Consultants of the Project Safeguards • Safeguards Specialist • Project Closing and and/or Consultants Implementation Completion • Agriculture, Livestock, and Results Report - ICR DRM and Floods, Water Resources, Irrigation and WASH, Health, Education Specialist/s and/or Consultants 36-48 months • Monitor implementation of • Team Leads • USS 250,000 • In addition to the Project activities - with focus • FM, Procurement above, facilitate on medium term recovery and Specialists and/or Project Closing & ICR long-term resilience building Consultants preparation Page 78 of 79 The World Bank Somalia Crisis Recovery Project (P173315) • FM, Procurement, • Safeguards Specialist Safeguards and/or Consultants • Project Closing and • Agriculture, Livestock, Implementation Completion DRM and Floods, and Results Report - ICR Water Resources, Irrigation and WASH, Health, Education Specialist/s and/or Consultants Table 2: Skills Mix Required Skills Needed Number of Staff Weeks Number of Trips Comments • Team Leads • Routine • Project will likely become effective • FM, Procurement implementation by June 2020 with the first mission Specialists and/or support missions occurring by the start of Consultants Sept 2020, March September 2020 • Safeguards Specialist 2021, Sept 2021 • Ensure safeguard arrangements and/or Consultants March 2022, Sept are built into implementation • Agriculture, Livestock, 2022, March 2023, plans DRM and Floods, Water Sept 2023, March • Review implementation, Resources, Irrigation and 2024 commitment and disbursement WASH, Health, Education status Specialist/s and/or • Support to monitor progress of Consultants activities, in-depth technical review of implementation; make adjustments to implementation plan if needed • Support to monitor progress of activities, in-depth technical review of implementation Page 79 of 79