Page 1 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB643 Project Name SOCIAL SECTOR SUPPORT PROJECT Region AFRICA Sector General education sector (50%);Central government administration (25%);Health (25%) Project ID P075979 Borrower(s) GOVERNMENT OF SAO TOME & PRINCIPE Implementing Agency (for the public sector) Project Administrative and Fiduciary Agency C/o Ministry of Planning and Finance PO Box 168, Sao Tome, Republic of Sao Tome and Principe. Tel. + (239) 225205 (for community initiatives)The Federation of NGOs PO Box 234, Sao Tome, Republic of Sao Tome and Principe. Tel. + (239) 904465 Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Safeguard Classification [ ] S 1 [X] S 2 [ ] S 3 [ ] S F [ ] TBD (to be determined) Date PID Prepared January 28, 2004 Date of Appraisal Authorization February 5, 2004 Date of Board Approval May 18, 2004 1. Country and Sector Background Sao Tome and Principe is a small island state with a population of about 140,000 and a per capita income of US$ 290. About 54% of the population is living under poverty with limited human development due to weak and inefficient public institutions and limited and fragmented civil society organizations. The delivery of social services is constrained by limited government capacity to plan and implement social strategies and programs and a weak incentive framework which has a negative impact on the performance of public service providers, and weak capacity for social mobilization among civil society. The country has recently discovered large oil reserves in the Gulf of Guinea bordering with Nigeria which puts it on the verge of a major economic change. In light of the expected economic development, it is critical to strengthen the institutions and structures for the delivery of social services and to build the necessary human capital for sustained economic development and poverty reduction. 2. Objectives The development objective of the proposed Social Sector Support Project (PASS) is to contribute to improving the delivery of basic health and education services, which implies a focus on greater equitable access, better quality, and improved local governance of services. 3. Rationale for Bank Involvement The recent economic developments in the country call for immediate attention to human development and putting in place the necessary institutions and structures in the social sectors to ensure the population will benefit from the expected economic development. The Bank is in a position to assist in providing a framework for supporting the government’s human development objectives and to bring in the necessary additional resources to enhance human development in a significant way. The multi-sectoral character of the proposed project also gives the Bank a comparative advantage over most other potential financiers. The Bank has experience in establishing the managerial, financial and administrative systems necessary for multi-sectoral projects which include efforts by civil society. The proposed project also deals with a redefinition of the roles of Government and civil society and an increased collaboration of international partners, which is an area where the Bank has considerable expertise. The civil society and community inclusion dimensions of the project are informed by the Bank’s growing experience in the design and implementation of Community-Driven Development programs. These link community resource management and decision-making responsibility with national sector strategy development and broad policy and institutional reform. As the proposed project fits within the government’s poverty reduction and human Page 2 development strategies, it will set an example to partners that support is given as an integral part of a broader dialogue and national strategy. 4. Description The project includes the following 3 components: (i) Improved delivery of basic education services; (ii) Improved delivery of basic health services; and (iii) Addressing cross-cutting issues: HIV/AIDS and Malaria. For improved service delivery, the project combines top-down and bottom-up approaches which incorporate supply-side enhancement and community participation in the delivery of services. The capacity building activities are integrated into the components. These activities will aim at improving basic systems and capacity to operate a light decentralized system, including improving fundamental strategic planning, management, and monitoring and accountability procedures in the health and education sectors. They target the key organization and staff of the Ministries at the central and district levels. Given the extremely weak planning and management capacities and the overly centralized administration, limited but critical new competencies for the administration units at the central and district levels will be introduced gradually over the project life. 5. Financing Source: ($m.) BORROWER/RECIPIENT 1.5 INTERNATIONAL DEVELOPMENT ASSOCIATION 6.5 Total 8 6. Implementation The Ministry of Education and Culture, the Ministry of Health, and the Federation of Non-governmental Organizations (FONG) are responsible for project implementation and accountable for the successful outcome of the various components. Implementation will be based on annual work programs (AWP) which will allow the Ministry of Education and Culture and the Ministry of Health to prioritize activities and investments. The AWPs will be result-based with a financing agreement to be established. The project will follow a phased approach focusing first on capacity building, institutional and policy changes to prepare for the investment activities in the following years. FONG will ensure the management and coordination of community-driven initiatives and that agreed procedures for access and utilization of funds are adequately followed by the beneficiaries. In view of line ministries inexperience and limited capacity in managing fiduciary functions according to Bank’s procedures and guidelines, these functions will be provided by PAFA in addition to administrative tasks for the PCMC. 7. Sustainability The sustainability of the project would be driven by the degree of ownership of key stakeholders, institutional capacity, and government's ability to channel funds in a timely fashion. Institutional weaknesses will be addressed prior to and during project implementation through well-defined capacity building programs for all stakeholders. In addition, close monitoring of donors' support will take place, to ensure coherence in social sector program support and activities. Implementation by the line ministries in collaboration with communities would ensure greater ownership and commitment for sustainability. Policy reforms and the strengthening of capacity at the national level and at the district and local level would also contribute to increased sustainability. 8. Lessons Learned from Past Operations in the Country/Sector Out of the seven closed projects in Sao Tome and Principe evaluated by the Bank’s Operations Evaluation Department (OED), only three have been rated as satisfactory. This high failure rate points to several lessons: The principal lesson is that project design should be kept simple to accommodate Sao Tome and Principe’s limited and weak institutional and administrative capacity. Other lessons include ensuring that implementation arrangements and monitoring mechanisms are in place; sufficient implementation support is allowed through expatriate Page 3 advisors; Government’s commitment is essential; flexibility in program implementation and performance criteria suited to country specific conditions are also necessary; and donor coordination is fundamental in improving the efficiency and efficacy of external assistance. Moreover, engaging civil society organizations and community groups in project planning and during implementation is essential to improve effectiveness, efficiency, relevance, quality and sustainability of assets and services. 9. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment ( OP / BP / GP 4.01) [X] [ ] Natural Habitats ( OP / BP 4.04) [ ] [X] Pest Management ( OP 4.09 ) [ ] [X] Cultural Property ( OPN 11.03 , being revised as OP 4.11) [ ] [X] Involuntary Resettlement ( OP / BP 4.12) [X] [ ] Indigenous Peoples ( OD 4.20 , being revised as OP 4.10) [ ] [X] Forests ( OP / BP 4.36) [ ] [X] Safety of Dams ( OP / BP 4.37) [ ] [X] Projects in Disputed Areas ( OP / BP / GP 7.60) * [ ] [X] Projects on International Waterways ( OP / BP / GP 7.50) [ ] [X] 10. List of Factual Technical Documents National Strategic Plan for Roll Back Malaria, 2001-2010 (2000) National Plan for Health Development (2001) National Poverty Reduction Strategy (draft) (2002) Analyse des indicateurs de santé dans le cadre stratégique de lutte contre la pauvreté (2002) National Multisectoral Plan Against HIV/AIDs-2004-2008 (2003) National Education Strategy (draft) (2004) Report on Medical Waste Management (2004) Report on the Situation of Orphans and Vulnerable Children (draft) (2004) Report on Monitoring and Evaluation (draft) (2004) Report on Institutional Capacity Assessment (draft) (2004) 11. Contact point Contact: Safaa El Tayeb El-Kogali Title: Economist Tel: (202) 458-9869 Fax: (202) 473-9216 Email: selkogali@worldbank.org 12. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Page 4