The World Bank Nigeria, Community and Social Development Project (P090644) REPORT NO.: RES46382 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE COMMUNITY AND SOCIAL DEVELOPMENT PROJECT APPROVED ON JULY 1, 2008 TO THE FEDERAL REPUBLIC OF NIGERIA April 28, 2021 SOCIAL PROTECTION AND JOBS GLOBAL PRACTICE WESTERN AND CENTRAL AFRICA REGION Regional Vice President: Ousmane Diagana Country Director: Shubham Chaudhuri Regional Director: Dena Ringold Practice Manager/Manager: Iffath Anwar Sharif Task Team Leaders: Foluso Okunmadewa The World Bank Nigeria, Community and Social Development Project (P090644) ABBREVIATIONS AND ACRONYMS AF Additional Financing CARES COVID-19 Action Recovery and Economic Stimulus CDD Community Driven Development CDP Community Development Plan COVID-19 Coronavirus Disease CSDA Community and Social Development Agency CSDP Community and Social Development Project GDP Group Development Plans FCT Federal Capital Territory FMF Federal Ministry of Finance FPSU Federal Project Support Unit ICR Implementation Completion and Results Report PDO Project Development Objective PforR Program for Results The World Bank Nigeria, Community and Social Development Project (P090644) BASIC DATA Product Information Project ID Financing Instrument P090644 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 01-Jul-2008 30-Apr-2021 Organizations Borrower Responsible Agency Federal Project Support Unit.,Ministry of Humanitarian Federal Government of Nigeria Affairs, Disaster Management and Social Development Project Development Objective (PDO) Original PDO Development objectives. The project development objective is to sustainably increase access of poor people to social and natural resource infrastructure services. The key performance indicators are: - Increased number of poor people (of which 70% are women) with access to social services. - Increased number of poor people with access to natural resources infrastructure services. - Increased percentage of participating Local Governments that are incorporating Community development plans in their budget. Current PDO The new PDO is to increase access by the poor people, and particularly by the internally displaced and vulnerable people in the North East of Nigeria, to improved social and natural resource infrastructure services in a sustainable manner throughout Nigeria. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-58400 07-Jun-2016 30-Aug-2016 27-Feb-2017 30-Apr-2021 75.00 69.96 4.08 IDA-54070 26-Mar-2014 25-Feb-2015 17-Aug-2015 30-Apr-2021 140.00 125.71 1.79 IDA-44960 01-Jul-2008 24-Nov-2008 23-Feb-2009 30-Sep-2015 199.95 187.44 0 The World Bank Nigeria, Community and Social Development Project (P090644) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Development Credit Agreement of the Nigeria, Community and Social Development Project (CSDP, P090644, IDA-44960) in the total amount of US$380 million, of which US$200 million equivalent IDA credit and US$180 million equivalent counterpart funding, was approved on July 1, 2008. It became effective on February 23, 2009 with an initial closing date of December 31, 2013. An additional financing (AF, P148215, IDA-54070) in the total amount of US$176 million equivalent, of which of US$140 million equivalent IDA credit, became effective on August 17, 2015 with a closing date in December 2017. Because of the Recovery and Peace Building Assessment (RPBA) of the insurgency situation in the North East, a second AF (P157898, IDA-58400) of US$75 million equivalent IDA credit was prepared and became effective on February 28, 2017 with a new closing date of June 30, 2020. With this the total financing of the parent project (including IDA and counterpart funds) is US$595 million equivalent. The closing date was further extended to September 30, 2020 and subsequently to December 31, 2020 and recently to April 30, 2021 to mitigate the effect of the Coronavirus disease (COVID-19) on implementation of the project and to strengthen the platforms at the State level to mitigate the impact of the pandemic on the poor and vulnerable. 2. The CSDP project development objective (PDO) is “to increase access by the poor people, and particularly by the internally displaced and vulnerable people in the North East of Nigeria to improved social and natural resource infrastructure services in a sustainable manner throughout Nigeria”. The CSDP supports (i) the empowerment of communities and vulnerable groups within communities to develop, implement and monitor micro social infrastructure projects (public and common pool goods) including natural resource management interventions; and (ii) strengthening the skills and capacity of Local Government authorities, Local Government Authorities and sectoral public agencies to support communities and build a partnership between them. The CSDP project has four components. These are (1) Overall Project Support and Coordination; (2) Capacity Building and Partnerships Development in State Ministries and Local Government Authorities; (3) Community-Driven Investments Facility; and (4) Vulnerable Groups Investment Facility. The first component is managed at the Federal level by the Federal Project Support Unit (FPSU) supervised by the Ministry of Humanitarian Affairs, Disaster Management and Social Development through the National Social Safety Net Coordinating Office (NASSCO), while the other three components are currently managed at the State level by State Community and Social Development Agencies established by law. 3. The project is making satisfactory progress in terms of achieving its PDOs and targets and the implementation progress is commendable. The project has surpassed the PDO indicator targets and many of the intermediate objective targets. For example, as at end March 2021, about 5,800 poor communities now have access to basic social services (against a target of 3,750 communities). Also, about 12 million people are direct beneficiaries of the micro-projects and community development plans (CDPs) supported by the project (target is 3.2 million). Over 16,000 microprojects have been supported by the project (target is 8,500). The project also supported capacity building of over 3,000 officials of The World Bank Nigeria Community and Social Development Project (P090644) Local Government Authority and State Government Sectoral Ministries (target is 1,000). The project is currently active and project management is satisfactory in 30 states and Federal Capital Territory (FCT). More than 4.5 million individuals are benefiting directly from the CSDP interventions in the North East while across all the participating states, well over 20 million individuals are benefiting (directly and indirectly) from CSDP as of March 2021. The interventions (microproject services) are mainly in the areas of Water and Sanitation, Education, Health and Nutrition and Socio-Economic empowerment for the poor and vulnerable people. 4. The overall financial disbursement rate is now 98.5 percent (parent CSDP plus AFs) as of April 13, 2021, with US$5.87 million equivalent remaining undisbursed. There is continued increase in completion rate of micro-projects, increase in number of CDPs and Group Development Plans (GDPs) approved and funded by the Community and Social Development Agencies (CSDA). Local Governments’ participation and community level funding of micro-projects have also improved. The implementation of CSDP in the North East States in particular, continue to record great progress. There is increasing number of CDPs and GDPs approved by the State Agencies and more microprojects, including community housing for displaced and vulnerable households and psychosocial support services, are completed. 5. Monitoring and evaluation, as well as financial management system reporting have improved. The rating as at the last implementation support mission is satisfactory for monitoring and evaluation and for financial management as well. The Federal team is providing adequate support to state level CSDAs, and other related delivery units for recruitment process, revision of operation manuals and technical guidance. Monitoring and reporting on the North East CSDP Program are carried out by the FPSU on a quarterly basis. The FPSU support to States in terms of capacity building through staff audit, joint training, study tours facilitation and on-the- field assistance remains commendable. Also, the project management of the procurement process is rated as satisfactory across the Federal unit and all participating States and FCT. 6. The impressive results and impact of the CSDP on the life and livelihood of the poor in rural communities across all the participating States in Nigeria, and the supportive role of the FPSU to the State Government owned community and social development agencies, and safety nets, and livelihood as well as food security delivery agencies and units, explain why the Government continue to appreciate the CSDP as one of the foremost and effective pro-poor service delivery mechanism in the country. 7. The Government is also leveraging on the CSDAs and FPSU for the implementation readiness of the emergency COVID-19 response operation - the COVID-19 Action Recovery and Economic Stimulus (CARES) Program for Results (PforR, P174114) Program that was approved by the World Bank Board in December 2020. While the CSDAs are strengthened as one of the platforms for the PforR program at State level, the FPSU is supporting the Federal Team of NG CARES for preparation of implementation tools and strengthening of institutional and staff capacity at Federal and State levels for effective and efficient implementation of the NG CARES. The support of CSDP to the NG CARES effectiveness and preparedness for implementation is progressing fairly with slight delay in a few activities. 8. The covenants of the CSDP have been complied with, with the exception of the one on State Government contribution, and the use of third-party monitors, that are partially complied with. While some of the State Governments have not been regular about counterpart funding provision, a few State government have recently increased their funding of the State Agencies for community level activities. The third-party monitors were appointed recently and submitted their first report in November 2020. Rationale for Restructuring The World Bank Nigeria Community and Social Development Project (P090644) 9. The COVID-19 Action Recovery and Economic Stimulus (PforR) in the amount of US$750 million IDA credit was approved by the Board of Executive Directors of the World Bank on December 14, 2020, with the CSDAs at the State level and the FPSU at the Federal level as the pivotal platforms for response at the community level in supporting the poor and vulnerable. While the approval of the Government and signing of the Financing Agreement was anticipated for end April 2021, it is now unlikely, as the processing of the credit and some of the activities for preparedness for effectiveness and implementation are delayed. The Government has requested a two-month extension of the closing date of the CSDP to ensure completion of the strengthening of the CSDAs, other delivery platforms at State and Federal levels respectively. In essence, the need to further strengthen the CSDAs and other identified delivery platforms at State level as well as institutionalization of the Federal CARES coordinating unit at the Federal level to prepare for implementation of the CARES Program by mid-2021. In addition, there is also the need to cancel the balance of the undisbursed amount of the CSDP credit of about US$5.78 million equivalent. A formal letter from the Borrower, Federal Ministry of Finance (FMF), was received by the World Bank on April 28, 2021 requesting these above changes. 9. The extension of the closing date is important to ensure strengthened, and more effective and efficient platforms for the CARES Program implementation. The CSDP, using a community driven development (CDD) mechanism, offers an effective platform for pro-poor service delivery, as planned, under the CARES in response to the challenges of poverty and vulnerability in the country. The proposed federal level platform (that is the Federal CARES Coordination Unit) is also central to the success of the Nigeria CARES. The extension will also ensure that ongoing activities for effectiveness and implementation of CARES can be completed. The activities include finalization of the operations manual, adoption of necessary protocols and templates for monitoring and evaluation, fiduciary, environment and social safeguards, as well as commencement of engagement of independent verification agents. II. DESCRIPTION OF PROPOSED CHANGES 10. The proposed restructuring includes extension of the closing date of the two AF credits (IDA 54070 and IDA 58400) by two months (April 30, 2021 to June 30, 2021). This will help the Borrower to complete the enhancement of robustness of the CSDAs and related agencies of the Government in furtherance of its pivotal role in the COVID-19 response strategy. The change is not expected to result in any policy, components, or institutional changes. About US$4 million of the credit (which is currently in the Designated Accounts of the projects) is expected to be used for the purpose of completing the implementation readiness of the CSDA and other delivery platforms. The cancellation of undisbursed balance of about US$5.78 million equivalent before the closure of the credit, as requested by government, will ensure that the project is fully disbursed. Not granting the extension will lead to loss of funds currently in designated accounts and undisbursed balance. This will greatly limit the implementation readiness of the Nigeria CARES operation. 11. The proposed closing date extension by two months from April 30, 2021 to June 30, 2021 will bring the cumulative extension of the closing date to over seven years. With this new closing date, the project will be 13 years old at the time of closure. The original credit was extended at the time when the AF was added. As part of the wavier requirements, an interim Implementation Completion and Results Report (ICR) was completed in 2016. The plan for a further ICR report of the completed project following its closure in June 30, 2021 is now well advanced. 12. The proposed closing date extension meets the requirements of the World Bank Investment Project Financing (IPF) Directive regarding extension of closing dates, specifically: (i) the project objectives remains achievable; (ii) the performance of the Borrower remains satisfactory; (iii) the World Bank and the Borrower agree on actions that will be undertaken by the Borrower to complete project critical activities; and (iv) there are no outstanding audits and/or interim financial reports. The World Bank Nigeria Community and Social Development Project (P090644) 13. The results framework will be revised to extend the end target dates to match with the newly established closing date as soon as the extension is approved. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank Nigeria Community and Social Development Project (P090644) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Dec-2014, 30- IDA-44960 Closed 31-Dec-2013 Sep-2015, 31-Mar- 2016 30-Jun-2020, 30- IDA-54070 Effective 31-Dec-2017 Sep-2020, 31-Dec- 30-Jun-2021 30-Oct-2021 2020, 30-Apr-2021 30-Sep-2020, 31- IDA-58400 Effective 30-Jun-2020 Dec-2020, 30-Apr- 30-Jun-2021 30-Oct-2021 2021 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation IDA-44960- Repayi 121,462,553.9 121,462,553.9 XDR 0.00 001 ng 8 8 BORROWER' Disburs S REQUEST IDA-54070- ing&Re XDR 91,300,000.00 1,245,964.37 27-Apr-2021 90,054,035.63 FOR 001 paying COUNTRY REASONS BORROWER' S REQUEST IDA-58400- Disburs XDR 53,000,000.00 2,856,025.31 27-Apr-2021 50,143,974.69 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed The World Bank Nigeria Community and Social Development Project (P090644) IDA-54070-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,NonCS,CS,OC,Trg Pt A 3,800,000.00 3,775,080.97 3,775,080.97 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Gds,Wks,NonCS,CS,OC,Trg Pt B,C,D 18,000,000.00 19,763,786.19 24,763,786.19 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Grants Pt C 43,500,000.00 43,664,444.82 44,664,444.82 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: VG Expenditures Pt D 26,000,000.00 9,387,719.38 16,850,723.65 100.00 100.00 Total 91,300,000.00 76,591,031.36 90,054,035.63 IDA-58400-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,Wks,Non CS,CS,OC,Trg Pt A 5,300,000.00 3,074,094.73 6,074,094.73 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Gds,Wks,Non CS,CS,OC,Trg Pt B,C&D 7,100,000.00 7,379,951.07 7,379,951.07 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Grants Part C 14,200,000.00 14,170,912.29 14,170,952.29 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: VG Expendititures Part D 26,400,000.00 18,963,479.38 22,518,976.60 100.00 100.00 Total 53,000,000.00 43,588,437.47 50,143,974.69 The World Bank Nigeria Community and Social Development Project (P090644) . The World Bank Nigeria Community and Social Development Project (P090644) . Results framework COUNTRY: Nigeria Community and Social Development Project Project Development Objectives(s) The new PDO is to increase access by the poor people, and particularly by the internally displaced and vulnerable people in the North East of Nigeria, to improved social and natural resource infrastructure services in a sustainable manner throughout Nigeria. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Increase access by the poor communities (including IDP's) to improved social services 3750 Communities (about 1,500,000 Poor communities with access to social 1000 Communities (about 500,000 households of which 40% are services (of which IDPs constitute more households) women, 10% of whom are other than 10% of residents) (Text) vulnerable groups) Increase access by the poor communities (including IDP's) to improved natural resource services Poor communities with access to natural 800 communities (about 400,000 resource management services (of which 50 Communities (about 25,000 households of which 30% are IDPs constitute more than 10% of households) women, 10% of whom are other residents) (Text) vulnerable groups) Increased access by poor people in all participating states to basic and natural resource services. Direct project Beneficiaries, including IDPs (measured by the number of poor 0.00 300,000.00 3,200,000.00 people with access to social services) (Number) The World Bank Nigeria Community and Social Development Project (P090644) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Sustainable access to basic social and natural resource services by the poor in all States Annual Local Government budget in participating States incorporating 0.01 0.45 Community development plans increases yearly (Text) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Component 1: Overall Project Support and Coordination Percentage of project beneficiaries satisfied with the project interventions 30.00 50.00 60.00 (Percentage) Percentage of grievances addressed within the timeframe stipulated in the 0.00 70.00 Operations Manual (Percentage) Development of CDD policy framework Agreed TOR for Policy Framework CDD Policy Framework Document for Nigeria (Text) Development finalised Component 2: Capacity Building and Partnerships Development in State Ministries and LGAs LGAs that received training have integrated CDD approach in the 0.00 0.65 formation of their Local development plans (Text) The World Bank Nigeria Community and Social Development Project (P090644) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Staff of State Ministries, Departments and Agencies trained and supporting 0.00 1,000.00 Communities and Vulnerable groups on the CSDP (Number) Component 3: Community-Driven Investments Facility Community Development Plans that are 0.00 3,750.00 approved and funded (Number) Completed microprojects, that are operational and maintained one year 300.00 8,500.00 after completion. (Text) Health Centers built or rehabilitated 50.00 500.00 1,500.00 (Text) Classrooms built or rehabilitated (Text) 100.00 1,500.00 2,000.00 Students enrolled in primary education 0.00 40,000.00 50,000.00 schools supported by project (Text) Community Water Scheme (Number) 0.00 3,000.00 32,000.00 3,500.00 Project funds that are channeled to 0.00 0.60 0.70 community-driven investments (Text) Component 4: Vulnerable IDP Groups Investments Facility Number of damaged / host communities 0.00 150.00 250.00 supported by CSDA (Number) Gender and Vulnerable Groups (GVG) (women/gender and other vulnerable groups) register or list available in 10.00 300.00 500.00 communities implementing CSDP. (Number) The World Bank Nigeria Community and Social Development Project (P090644) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 Gender and Vulnerable Groups (GVG) (women/gender and other vulnerable 175.00 400.00 500.00 groups) with functional micro-projects or specialized services (Number) Number of community housing created / 0.00 100.00 160.00 200.00 supported by CSDA (Number) Number of trauma and psychosocial 0.00 100.00 250.00 500.00 support sessions conducted (Text) IO Table SPACE . The World Bank Community and Social Development Project (P090644)