PROJECT INFORMATION DOCUMENT (PID) ADDITIONAL FINANCING Report No.: PIDA3860 Project Name RY: AF-Labor Intensive Public Works (P148366) Parent Project Name Labor Intensive Public Works Project (P122594) Region MIDDLE EAST AND NORTH AFRICA Country Yemen, Republic of Sector(s) General education sector (46%), General water, sanitation and flood protection sector (35%), Sub-national government administration (10%), Health (5%), General transportation sector (4%) Theme(s) Rural services and infrastructure (60%), Social safety nets (40%) Lending Instrument Investment Project Financing Project ID P148366 Parent Project ID P122594 Borrower(s) Government of Yemen Implementing Agency Government of Yemen Environmental Category B-Partial Assessment Date PID Prepared/Updated 04-Mar-2014 Date PID Approved/Disclosed 11-Mar-2014 Estimated Date of Appraisal 31-Mar-2014 Completion Estimated Date of Board 03-Jul-2014 Approval Decision I. Project Context Country Context With a Human Development Index of 0.458 (ranging between the lowest of 0.304 to highest of 0.955), Yemen ranked at place 160 out of 186 countries in 2012 and is thus one of the poorest countries in the world. The proposed Additional Financing (AF) contributes to the Government's transition efforts to address the ongoing social and economic challenges by providing needed infrastructure to improve access to basic public services and to create short-term employment. Specifically, with its country-wide coverage, the AF aims to deliver labor-intensive, small-scale, demand-driven basic services to people living in dispersed and sparsely populated rural settlements , as well as to poor communities in urban areas through the implementation of small subprojects that will be executed by small local contractors, employing labor from within the beneficiary communities. Page 1 of 4 Sectoral and institutional Context The demand for basic infrastructure services is greater than anticipated, as is the absorptive capacity of the Labor Intensive Public Work Project (LIPWP). By February 11, 2014, LIPWP allocations stood at 60.2% and disbursement at 44.13%. When the LIPWP was prepared in early 2012, the PWPIU had close to 17,000 community requests for subprojects, of which the LIPWP was only able to execute less than three percent due to resource constraints. In February 2014, the PWPIU had20,000 subproject requests from communities. Hence, to meet the continuously high need for basic infrastructure services, the proposed AF is a scale up of the LIPWP to increase the number of sub-projects to be delivered and thereby increasing the geographical coverage and number of beneficiaries.Table 1 summarizes the achievements as of February 2014 and indicates that 1.41 million people across Yemen are expected to benefit from the project by project end, while all 382budgeted subprojects are already contracted for expected completion by end 2014 – about 1.5 years ahead of the project’s closing date of June 30, 2016. Given the successful implementation of the LIPWP and the completion of the National Dialogue in January 2014, opportunities exist to build and further expand on the original project’s achievements. Following the 2011 crisis, and the election of a new president in February 2012, the Government embarked on a reform program that entailed a National Dialogue between March 2013 and January 2014 . Following the completion of the National Dialogue on January 25, 2014, a federal state structure for the Federal Republic of Yemen was approved, that comprises six federal states . Given the changing country context, the AF will ensure that the additional subprojects are covering these six regions adequately, while retaining the LIPWP formula for allocating funds, i.e. (a) 50% population size; (b) 30% poverty index; and (c) 20% remoteness and deprivation. II. Proposed Development Objectives A. Current Project Development Objectives – Parent The proposed Project’s development objectives are to assist the Recipient to: (i) provide needed infrastructure to improve access to basic public services; and (ii) create short term employment. B. Proposed Project Development Objectives – Additional Financing (AF) III. Project Description Component Name Community Infrastructure Comments (optional) Financing of works and goods for small subprojects in the sectors of: health, education, water supply, sewage, water harvesting schemes, stone paving of roads and streets, and vocational training. Component Name Technical Assistance Comments (optional) Financing of consultancy services for preliminary and detailed designs of subprojects. Component Name Project Management Comments (optional) Page 2 of 4 This component will finance incremental operational costs of the PMU and staff training. IV. Financing (in USD Million) Total Project Cost: 50.00 Total Bank Financing: 50.00 Financing Gap: 0.00 For Loans/Credits/Others Amount BORROWER/RECIPIENT 0.00 IDA Grant 50.00 Total 50.00 V. Implementation Since effectiveness, the ongoing project’s PDO and implementation progress have both been consistently rated as Satisfactory. Ratings for Environmental and Social Safeguards are also Satisfactory, as are Procurement and Financial Management ratings. The project is expected to meet its outcomes and outputs ahead of project closure on June 30, 2016. The implementation of Bank safeguards requirements is progressing well. Two new design features of the proposed AF will further enhance gender inclusion and citizen engagement, for which a revised Manual of Procedures is providing the operational basis. Specifically, under component 1, gender-focused activities will help increase the project impact for women by (a) giving women more voice through community consultations during sub-project preparation, (b) by employing more female engineers during subproject design, implementation and supervision, and (c) by encouraging the short-term employment of female beneficiaries during subproject implementation. Additionally, component 1 will also cover activities to help strengthen and formalize Citizen Engagement (CE) throughout the subproject cycle (identification, prioritization, implementation, operations and maintenance, and monitoring); these will support a sustainability approach for existing sub-projects. Specifically, (i) formalization of the existing informal complaints mechanism (grievance redress mechanism) for both, general project issues, as well as safeguards issues, in order to benchmark and keep track of bottlenecks at the local level, and, (ii) standardization of the methods to collect citizen feedback on infrastructure service provision, operations and maintenance, as well as infrastructure usage in order to assess citizen satisfaction with AF investments. VI. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✖ Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP 7.50 ✖ Page 3 of 4 Projects in Disputed Areas OP/BP 7.60 ✖ Comments (optional) VII. Contact point World Bank Contact: Ali Khamis Title: Senior Operations Officer Tel: 458-5381 Email: akhamis@worldbank.org Borrower/Client/Recipient Name: Government of Yemen Contact: Mohammed Al-Hawri Title: Deputy Minister, Ministry of Planning and International Coop Tel: 967250665 Email: malhawri@mpic.gov.ye Implementing Agencies Name: Government of Yemen Contact: Eng. Saeed Abdo Title: Project Director Tel: 711252548 Email: PWP-Yem@Y.Net.YE VIII. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop Page 4 of 4