The World Bank Report No: ISR2948 Implementation Status & Results Nepal Poverty Alleviation Fund II (P105860) Public Disclosure Copy Operation Name: Poverty Alleviation Fund II (P105860) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: Country: Nepal Approval FY: 2008 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Poverty Alleviation Fund Board Key Dates Board Approval Date 06-Dec-2007 Original Closing Date 30-Sep-2012 Planned Mid Term Review Date Last Archived ISR Date 04-Jan-2011 Effectiveness Date 19-Mar-2008 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 13-May-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve living conditions, livelihoods and empowerment among the rural poor, with particular attention to groups that have traditionally been excluded by reasons of gender, ethnicity, caste and location. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Small-Scale Village and Commmunity Infrastructure 63.08 Income Generating Sub-Projects 61.96 Innovations and Special Programs 12.67 Capacity Building and Implementation Support 27.90 Administration of the PAF 8.11 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Highly Satisfactory Highly Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Implementation Status Overview PAF II remains on track to achieve development objectives. Recent analysis of the monitoring data and impact evaluation studies show that this program has resulted in enhancing income and consumption levels. Monitoring data shows that 66 percent of households covered under PAF have obtained a minimum income increase of 15 percent (in real terms) Page 1 of 7 The World Bank Report No: ISR2948 and have achieved an average increase in income of 82.5% in real terms and 145% in nominal terms. Rigorous impact evaluation (IE) studies completed in mid-FY11 indicate that overall there has been a 31% increase in the consumption of PAF households over 2007-2010 and a decline of 2% in the welfare of control households during this same period. The estimated net program impact on per capita consumption shows that growth has been higher for Dalit and Janajati and for the poorer segments of the population, confirming the program's ability to successfully distribute growth towards targeted groups. The IE results show that the percentage of households with food insufficiency of 3 months or less dropped Public Disclosure Copy from 13.8% in 2007 to about 5.5% in 2010, a reduction of more than 60% for PAF beneficiary households as compared with a reduction of 6.8% for non-beneficiary households. Similarly, the percentage of households with food insufficiency of 6 months or less decreased from 40% in 2007 to 33% in 2010, a reduction of 17.5% amongst PAF beneficiary households. There was an increase in food insufficiency in control, non PAF assisted households by about 9% over this period. The impact evaluation results also show that school enrollment rates for children from all PAF supported households increased by 13.6% over 2007 levels (8% higher than for non-PAF households) while enrollment rate for children from dalit or janajati households increased by 14.3% (6.5% higher than non PAF assisted households). The program's positive effect is also seen in access to services (agriculture centers, community forest groups, farmers# groups) and women's empowerment. Additional financing for PAF II - International Development Association (IDA) Grant in the amount of SDR 23.9 million (US$ 37.5 million equivalent), an IDA Credit in the amount of SDR 17.5 million (US$ 27.5 million equivalent), and a Grant from the Food Price Crisis Response Trust Fund in the amount of $10 million United States Dollars - was negotiated on March 17, 2011 . The Project Paper (PP), including the Operational Risk Assessment Framework (ORAF), Financing Agreement, Grant Agreement, Project Agreement, draft disbursement letter and the Governance and Accountability Action Plan were reviewed and discussed by the two delegations. The Nepalese Delegation informed that the Government of Nepal has expressed its preference to receive IDA financial assistance for the PAF AF on 100 per cent IDA grant terms, rather than the current mix of IDA grant and credit terms which has been formally negotiated. Since the project was approved in the last year of IDA 15 and the grant resources available to Nepal have been fully distributed, Bank Management looked into ways to respond to this request by rebalancing of the distribution of IDA credit and grant resources across different projects in the portfolio, while keeping the split of grant and credit unchanged in the aggregate. Subsequent to this review of options, changes in grant and credit allocations to this AF and to the AF for the Road Sector Development Project were approved by the Board on June 2, 2011. The allocation to the PAF II is now 100% grant. Financing agreements were signed on July 13, 2011. Locations Country First Administrative Division Location Planned Actual Nepal Eastern Region Udayapur Nepal Eastern Region Taplejun Nepal Eastern Region Solukhumbu Nepal Eastern Region Siraha Nepal Central Region Sindhuli Public Disclosure Copy Nepal Central Region Sarlahi Nepal Eastern Region Saptari Nepal Mid Western Region Salyan Nepal Mid Western Region Rukum Nepal Mid Western Region Rolpa Nepal Central Region Rautahat Page 2 of 7 The World Bank Report No: ISR2948 Country First Administrative Division Location Planned Actual Nepal Central Region Rasuwa Public Disclosure Copy Nepal Central Region Ramechhap Nepal Mid Western Region Pyuthan Nepal Central Region Parsa Nepal Western Region Nawalparasi Nepal Mid Western Region Mugu Nepal Eastern Region Morang Nepal Central Region Makwanpur Nepal Central Region Mahottari Nepal Central Region Lalitpur Nepal Western Region Kapilbastu Nepal Far Western Region Kanchanpur Nepal Mid Western Region Kalikot Nepal Central Region Kabhre Palanchok Nepal Mid Western Region Jumla Nepal Mid Western Region Jajarkot Nepal Mid Western Region Humla Nepal Far Western Region Doti Public Disclosure Copy Nepal Mid Western Region Dolpa Nepal Central Region Dhading Nepal Far Western Region Darchula Nepal Mid Western Region Dailekh Nepal Far Western Region Dadeldhura Nepal Central Region Chitawan Nepal Central Region Bara Page 3 of 7 The World Bank Report No: ISR2948 Nepal Far Western Region Bajura Nepal Far Western Region Bajhang Public Disclosure Copy Nepal Far Western Region Baitadi Nepal Western Region Baglung Nepal Far Western Region Achham Nepal Central Region Sindhupalchok Nepal Mid Western Region Surkhet Nepal Eastern Region Terhathum Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Direct project beneficiaries Number Value 0.00 345787.00 470000.00 Date 16-Jun-2008 15-Aug-2011 30-Jun-2014 Comments Households benefiting directly Households benefiting directly as CO members as CO members Female beneficiaries Percentage Value 0.00 76.94 50.00 Sub Type Date Supplemental Comments Indirect project beneficiaries Number Value 0.00 99000.00 180000.00 Sub Type Date Supplemental Comments Public Disclosure Copy No. of households benefiting from increased Text Value 0 98,599 100,000 access to community Infrastructure Date 16-Jun-2008 15-Aug-2011 30-Jun-2014 Page 4 of 7 The World Bank Report No: ISR2948 Indicator Name Core Unit of Measure Baseline Current End Target Comments Completed from CO Indicator refers only to agreements and Federation completed infrastructure Public Disclosure Copy agreements and includes all subprojects. Target has been benefiting households - not adjusted to indicate new just CO members. closing date with Additional Federations of COs are Financing increasing, especially for infrastructure investments Percentage of beneficiary households have Text Value 0 66 60 increased their incomes by at least 15% against the base year, by end of project (EOP) Date 16-Jun-2008 15-Dec-2010 30-Jun-2014 Comments Data confirmed through social Growth in hhs indicating assessment survey and increased incomes is impact data. Next household expected to slow down and level survey data expected in stabilize after an initial period 2012. and is therefore indicated at 60% overall. Target has been adjusted to indicate new closing date with Additional Financing At least 30% of the members of each Project Text Value 0 62% 50 community organization come from targeted households. Date 16-Jun-2008 14-Mar-2011 30-Jun-2014 Comments Indicator will be revised to: Share of target HH members Target has been adjusted to Percentage of key positions in in key positions (dalit and indicate new closing date with Project community janjati) 30,277 of 48,622 Additional Financing organization that come from targeted groups Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy Percentage of IGA community organization Percentage Value 0.00 70.40 50.00 members who belong to targeted HHs. Date 16-Jun-2008 15-Aug-2011 30-Jun-2014 Comments HHs benefitting from IGA Target and indicator has been 52,703, Dalit and Janjati HHs adjusted to indicate changes 37,094 made through Additional Financing Page 5 of 7 The World Bank Report No: ISR2948 Infrastructure sub-projects are completed with Text Value 0 1307 2350 target community participation, according to agreed design and quality standards. Date 16-Jun-2008 15-Sep-2011 30-Jun-2014 Comments Number of INFRA subprojects Target has been adjusted to Public Disclosure Copy verified and approved: 1,470 indicate new closing date with Additional Financing Component 3: Innovation Window and Special Text Value 0 90% 60% Program: At least 60% of Project-funded Innovations have completed minimum of the Date 16-Jun-2008 15-Sep-2011 30-Jun-2014 first year of their approved implementation Comments 151 of 253 projects completed arget has been adjusted to program and submitted their det indicate new closing date with Additional Financing Improved community water points constructed Number Value 0.00 727.00 800.00 or rehabilitated under the project Date 16-Jun-2008 15-Aug-2011 30-Jun-2014 Comments No. of completed drinking Target has been adjusted to water subprojects (including indicate new closing date with drinking water + irrigation, Additional Financing toilets, water supply, water supply maintenance) Data on Financial Performance (as of 21-Sep-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P105860 COFN-C1200 Effective 08-May-2008 08-May-2008 31-Jul-2008 31-Mar-2013 P105860 IDA-49220 Closed 21-Apr-2011 30-Jun-2014 P105860 IDA-H3370 Effective 06-Dec-2007 31-Jan-2008 19-Mar-2008 30-Jun-2014 P105860 IDA-H6720 Not Effective 02-Jun-2011 13-Jul-2011 30-Jun-2014 Disbursements (in Millions) Public Disclosure Copy Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P105860 COFN-C1200 Effective XDR 2.50 2.50 0.00 2.36 0.14 94.00 P105860 IDA-49220 Closed XDR 17.50 17.50 0.00 0.00 17.50 0.00 P105860 IDA-H3370 Effective XDR 65.24 65.22 0.02 64.58 0.64 99.00 P105860 IDA-H6720 Not Effective XDR 41.40 41.40 0.00 0.00 41.40 0.00 Disbursement Graph Page 6 of 7 The World Bank Report No: ISR2948 Public Disclosure Copy Key Decisions Regarding Implementation The additional financing for PAF II - International Development Association (IDA) Grant in the amount of USD 60 million and a Grant from the Food Price Crisis Response Trust Fund in the amount of $10 million was approved by the Board on June 2, 2011 and the financing agreements were signed by the Government of Nepal and IDA on July 13, 2011. Restructuring History There has been no restructuring to date. Related Projects P124088-Additional Financing to the Poverty Alleviation Fund II, P128744-Nepal: Making markets work for the conflict affected in Nepal Public Disclosure Copy Page 7 of 7