Document of The World Bank FOR OFFICIAL USE ONLY Report No: 81084-ML INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 65.20 MILLION (US$100 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR A RECONSTRUCTION AND ECONOMIC RECOVERY PROJECT November 20, 2013 Urban Development & Services Practice (AFTU2) Country Department West Africa 3 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2013) Currency Unit = CFAF CFAF 500 = US$1 US$1.52628 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AFISMA African-led International Support Mission to Mali AGEROUTE Agency for the Execution of Road Maintenance Works (Agence d’Exécution des Travaux d’Entretien Routier) AGETIER Agency for the Execution of Rural Infrastructure Works (Agence d’Exécution de Travaux d’Infrastructure et d’Equipement Rural) AGETIPE Agency for the Execution of Public Works and Job Creation (Agence d’Exécution des Travaux d’Intérêt Public pour l’Emploi) CBO Community-Based Organization CC Community Committee CCOCSAD Local Government Committee for Coordination and Oversight of Development Activities (Comité Communal d’Orientation, de Coordination et de Suivi des Actions de Développement) CERC Contingent Emergency Response Component CGSP General Control of Public Services (Contrôle Général des Services Publics) CLOCSAD Local Committee for Coordination and Oversight of Development Activities (Comité Local d’Orientation, de Coordination et de Suivi des Actions de Développement) COP Project Steering Committee (Comité d’Orientation et de Pilotage) CPS Planning and Statistics Unit (Cellule de la Planification et Statistique) CROCSAD Regional Committee for Coordination and Oversight of Development Activities (Comité Régional d’Orientation, de Coordination et de Suivi des Actions de Développement) CSO Civil Society Organization DFM Department of Finances (Département des Finances et du Matériel) DNACPN National Directorate for Sanitation and Control of Polluters (Direction Nationale de l’Assainissement et du Contrôle des Pollutions et Nuisances) ECOWAS Economic Community of West African States ESMP Environmental and Social Management Plan ESSAF Environmental and Social Screening and Assessment Framework EU European Union FM Financial Management GDP Gross Domestic Product GRM Grievance Redress Mechanism ii IDP Internally Displaced Population IFRs Interim Financial Reports IGF General Finance Inspectorate (Inspection Générale des Finances) IPF Investment Project Financing IRM/OM Immediate Response Mechanism Operational Manual ISN Interim Strategy Note LG Local Government (Commune) MEF Ministry of Economy and Finance (Ministère en charge de l’Economie et des Finances) MRDN Ministry of National Reconciliation and Development of the Northern Regions (Ministère de la Réconciliation National et du Développement des Régions du Nord) MINUSMA Multidimensional Integrated Stabilization Mission in Mali MOD Delegated Contract Management Agency (Maître d’Ouvrage Délégué) MTR Mid Term Review M&E Monitoring & Evaluation NCB National Competitive Bidding NGO Non-Governmental Organization ODA Official Development Assistance O&M Operations and Maintenance PACR Rural Communities Support Project (Projet d’appui aux communautés rurales) PAP Project Affected People PCU Project Coordination Unit PIM Project Implementation Manual PFM Public Financial Management PMP Pest Management Plan PDSEC Social, Economic and Cultural Development Plan (Plan de développement socio- économique et culturel) PLG Participating Local Government PRED Plan for the Sustainable Recovery of Mali (Plan pour la Relance Durable du Mali) RA Regional Antenna RAPs Resettlement Action Plans RPF Resettlement Policy Framework SOE Statement of Expenditures TPM Third Party Monitoring (agency) WAEMU West African Economic and Monetary Union the West African Economic and Monetary Union WHO World Health Organization UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund Regional Vice President: Makhtar Diop Country Director: Ousmane Diagana Sector Director: Jamal Saghir Sector Manager: Alexander Bakalian Task Team Leader: Zie Ibrahima Coulibaly iii MALI Mali Reconstruction and Economic Recovery Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country context ........................................................................................................... 1 B. Situations of Urgent Need of Assistance or Capacity Constraints ......................... 2 C. Sectoral and Institutional Context ............................................................................ 3 D. Higher Level Objectives to which the Project Contributes .................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................6 A. PDO .............................................................................................................................. 6 B. Project Beneficiaries ................................................................................................... 6 C. PDO Level Results Indicators .................................................................................... 7 III. PROJECT DESCRIPTION ..............................................................................................7 A. Project Components.................................................................................................... 7 B. Project Financing ...................................................................................................... 11 C. Lessons Learned and Reflected in the Project Design ........................................... 12 IV. IMPLEMENTATION .....................................................................................................13 A. Institutional and Implementation Arrangements .................................................. 13 B. Results Monitoring and Evaluation ........................................................................ 14 C. Sustainability ............................................................................................................. 15 V. KEY RISKS AND MITIGATION MEASURES ..........................................................15 A. Risk Ratings Summary Table .................................................................................. 15 B. Overall Risk Rating Explanation ............................................................................ 16 IV. APPRAISAL SUMMARY ..............................................................................................16 A. Economic Analysis .................................................................................................... 16 B. Technical .................................................................................................................... 17 C. Financial Management ............................................................................................. 18 D. Procurement .............................................................................................................. 20 iv E. Social (including Safeguards)................................................................................... 21 F. Safeguards ................................................................................................................. 22 G. Environment (including Safeguards) ...................................................................... 23 Annex 1: Results Framework and Monitoring .........................................................................24 Annex 2: Detailed Project Description .......................................................................................30 Annex 3: Implementation Arrangements ..................................................................................45 Annex 4: Operational Risk Assessment Framework (ORAF) .................................................73 Annex 5: Implementation Support Plan ....................................................................................77 Annex 6: Environmental and Social Screening and Assessment Framework (ESSAF) .......80 Annex 7: Map IBRD 33443 .......................................................................................................103 v PAD DATA SHEET Mali Reconstruction and Economic Recovery Project (P144442) PROJECT APPRAISAL DOCUMENT . AFRICA AFTU2 Report No.: 81084-ML 81084. Basic Information Project ID Lending Instrument EA Category Team Leader P144442 Investment Project B - Partial Assessment Zie Ibrahima Coulibaly Financing Project Implementation Start Date Project Implementation End Date 6-Dec-2013 6-Dec-2018 Expected Effectiveness Date Expected Closing Date 6-Feb-2014 1-Dec-2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Alexander Bakalian Jamal Saghir Ousmane Diagana Makhtar Diop . Borrower: Republic of Mali, Ministry of Economy and Finance Responsible Agency: Ministry of Economy and Finance Contact: Sidibe Zamilatou Cisse Title: General Secretary Telephone No.: (223) 66 73 00 00 Email: cissezamilatou@yahoo.fr . Project Financing Data(in USD 100 Million) [ ] Loan [X] Grant [ ] Other [ ] Grant [ ] Guarantee Total Project Cost: 100.00 Total Bank Financing: 100.00 Financing Gap: 0.00 . Financing Source Amount BORROWER/RECIPIENT vi International Development Association (IDA) 100.00 Total 100.00 . Expected Disbursements (in USD Million) Fiscal 2014 2015 2016 2017 2018 2019 Year Annual 7.00 23.00 30.00 30.00 5.00 5.00 Cumulati 7.00 30.00 60.00 90.00 95.00 100.00 ve . Proposed Development Objective(s) The objective of the proposed project is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. . Components Component Name Cost (USD Millions) Component 1: Rehabilitation of local public infrastructure 50.00 Component 2. Support to productive investments 35.00 Component 3: Community engagement and local governance 10.00 Component 4: Project management and M&E 5.00 Component 5: Contingent emergency response 0.00 100.00 . Institutional Data Sector Board Urban Development . Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Agriculture, fishing, and forestry General agriculture, fishing 30 and forestry sector Transportation Rural and Inter-Urban Roads 30 and Highways Education Primary education 15 Health and other social services Other social services 15 vii Public Administration, Law, and Sub-national government 10 Justice administration Total 100 ☒ I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. . Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Rural development Rural services and infrastructure 30 Human development Other human development 30 Urban development Other urban development 20 Public sector governance Other public sector governance 10 Social dev/gender/inclusion Conflict prevention and post-conflict 10 reconstruction Total 100 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ x ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [ x ] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ x ] Does the project meet the Regional criteria for readiness for implementation? Yes [ x ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X viii Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency The Recipient shall establish, and Not later than three thereafter maintain at all times during months after Project implementation, a Project effectiveness date coordination unit within MEF, with composition, terms of reference and resources satisfactory to the Association. The Project Coordination Unit shall at all times be comprised of qualified and experienced personnel in adequate numbers, and to this end, the Recipient shall recruit inter alia: (i) a Project (i) not later than coordinator, a procurement specialist, a three (3) months financial management specialist and an after Effective Date accountant; (ii) an infrastructure (ii) not later than specialist, a monitoring and evaluation four (4) months (M&E) specialist, a community after Effective Date mobilization and conflict prevention specialist, and a safeguards specialist, all with qualifications, experience, and terms of reference acceptable to the Association. The Recipient shall establish, and Not later than six thereafter maintain at all times during (6) months from Project implementation, up to three Effective Date or at regional Project implementation units a later date as (“RPIU”) in selected regions, and with agreed by the composition, terms of reference and Association resources satisfactory to the Association. The Recipient shall adopt, in accordance Not later than two with terms of reference acceptable to the (2) months after Association and, a Project Effective date Implementation Manual (“PIM”), containing detailed arrangements and procedures for: (a) institutional coordination and day-to-day execution of the Project; (b) Project budgeting, disbursement and financial management; (c) procurement; (d) monitoring, evaluation, reporting and communication; and (e) such other administrative, financial, technical and ix organizational arrangements and procedures as shall be required for the Project. The Recipient shall install, within the Not later than four PCU, a customized multi-sites (4) months after accounting software in a manner Effective date satisfactory to the Association. The Recipient shall recruit an internal Not later than four auditor with qualifications, experience (4) months after and terms of reference acceptable to the Effective date Association. The Recipient shall recruit an external Not later than four auditor with qualifications, experience (4) months after and terms of reference acceptable to the Effective date Association. Description of Covenant . Team Composition Bank Staff Name Title Specialization Unit Zie I. Coulibaly Sr Infrastructure Team Lead AFTU2 Specialist Nicaise Ehoue Sr Agriculture Co-Task Team Leader AFTA1 Economist Pierre Joseph Kamano Sr Education Specialist Co-Task Team Leader AFTEW Yeyande Sangho Sr Agribusiness Agriculture AFTA1 Specialist Tojoarofenitra Transport Specialist Transport AFTTR Ramankirahina Mahamadou Bambo Sr Procurement Procurement AFTPW Sissoko Specialist Aissata Zerbo Procurement Specialist Procurement AFTPW Celestin Adjalou Sr Financial Financial Management AFTMW Niamien Management Specialist Maimouna Mbow Fam Sr Financial Financial Management AFTMW Management Specialist Maman- Sani Issa Sr Environment Safeguards AFTN2 Safeguards Specialist Varalakshmi Vemuru Sr Social Development Safeguards AFTCS Specialist x Ruxandra Costache Counsel Legal LEGAM Wolfgang Chadab Sr Finance Officer Finance CTRLA Paul Jonathan Martin Sector Leader Infrastructure AFCW3 Sustainable Development Emmanuela Di Gropello Sector Leader Human Education AFTHD Development Ana Paula Fialho Lopes Sr Operations Officer Operations, conflict- AFTU1/2 affected environments Aoua Toure Sow Program Assistant Language Assistant AFCW3 Asbjorn Wee Sr Operations Officer Fragility and conflict OPSFC Juliana Victor- Sr Monitoring and Monitoring and AFTDE Ahochogu Evaluation Specialist Evaluation Non Bank Staff Name Title Office Phone City . Locations Country First Location Planned Actual Comments Administrative Division Mali Selected Regions Selected Local Governments xi I. STRATEGIC CONTEXT A. Country context 1. Mali is a semi-arid, landlocked and thinly populated 1 country in the Economic Community of West African States (ECOWAS). In the last decade, with the exception of 2012, annual Gross Domestic Product (GDP) growth averaged 5 percent, or 1.5 percent in per capita terms. Between 2001 and 2010, the poverty rate declined from 55.6 to 43.6 percent 2 and during those years Mali enjoyed pro-poor per capita economic growth, albeit at a very low rate. Inclusive growth in Mali results mainly from the fact that most poor derive most of their income from agriculture, and that between 2001 and 2010, subsistence farming grew annually by 9 percent on average. Despite the decline in the poverty rate, the number of poor increased from about 6.1 to 6.6 million between 2001 and 2010, and no human development related Millennium Development Goal (MDG) is expected to be achieved by 2015. In 2012, Mali ranked 182th (out of 187 countries) in the Human Development Index. 2. Mali has been affected by multiple political and security crises during the past eighteen months 3. In the first half of 2012, extremist groups seeking to impose the Sharia law on the Northern populations took control over a Tuareg rebel movement in the North, expelling the Malian security forces and civilian administration, and provoking the displacement of about 476,000 people. In March of the same year a military coup ousted the sitting President and engulfed the country in political instability and deteriorating governance. In January 2013, in reaction to increased insecurity, a French military operation (Opération Serval) together with an ECOWAS force known as AFISMA (African-led International Support Mission to Mali) and Chadian soldiers regained control over a vast part of the North causing the rebels to flee the main towns. Despite its short duration, the occupation resulted in the destruction and pillage of a wide range of social and economic infrastructure. 3. The crisis of 2012 has had a severe economic impact and Mali’s GDP is estimated to have contracted by 1.2 percent in real terms since the beginning of the crisis. The economic contraction in 2012 was caused by a strong reduction of Official Development Assistance (ODA) in 2012 as well as the deterioration of the security situation, which impacted tourism (both in Southern and Northern parts of the country) and undermined the livelihoods of Northern populations. With about 27 percent of the Northern population being displaced, it is estimated that economic activities in the North have been cut by a third. 4. Mali is now on the path to recovery as key milestones have been reached towards the resolution of the recent political and security crises. The election in August 2013 of a new President, Ibrahim Boubacar Keita of the Rally for Mali party, and the arrival of peacekeeping forces under the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) in the months preceding the presidential elections have been pivotal in promoting 1 Population density in Mali is 11 persons per Km2 on average and as low as 1 person per Km2 in the Saharan regions. 2 World Bank (2012), Republic of Mali: Poverty and Gender Notes, December, Washington D.C. 3 For an analysis of the social dynamics underlying the crisis in Mali, see World Bank (2013) Stresses in the Sahel Region: Risk Vulnerability Analysis (Social Analysis), September, Washington D.C. 1 security and political stability. Malian security forces along with MINUSMA are being redeployed and access to the main Northern towns, particularly Timbuktu and Gao, has been restored. The government is taking steps to redeploy the civilian administration and services in the North. The newly elected government has also announced a National Dialogue to address the underlying causes of the Tuareg rebellion in the North and has created a new Ministry of National Reconciliation and Development of the Northern Regions. Despite the improvement of the security situation and the promising political developments at the national level, access to the Northern areas remains limited, casting doubt on the prospects for a rapid recovery. B. Situations of Urgent Need of Assistance or Capacity Constraints 5. Mali is now faced with the dual challenge of quickly reconstructing the North while addressing the underlying causes of the recent crises. The security and political crisis was likely triggered by the return of fighters from the Libyan revolution and the increased availability of weapons resulting from that conflict. However, Mali has faced several rebellions since independence in 1960 and multiple drivers of fragility and instability have fuelled the cyclical nature of violence over the years. The limited presence of the state, particularly in the Northern provinces, its weak capacity to guarantee that services are delivered, the collapse of the security sector, and the mounting tensions and prejudice that exists between social groups, pose a challenge to long term peace and the territorial integrity of the country. 6. The recent political crisis is also perceived by many as having resulted from the deterioration of governance and the weak capacity of institutions to respond to popular expectations. While important reforms have been implemented over the past five years to improve macro-economic management, governance indicators during the same period show a marked decline in the ability of government to control corruption, enforce the rule of law, and ensure government effectiveness. Ethnic and social tensions have also weakened social cohesion, all the more so with the limited ability of national institutions to mediate. To improve governance at the local level, successive administrations have embarked on a process of decentralization 4 since 1992. However, local governments and deconcentrated services at the regional and local levels remain weak; the definition of roles and responsibilities as well as the transfer of skills and resources has not yet been achieved. Lack of progress in the decentralization process has contributed to the weak performance of local governments and a deficit of trust has grown in recent years between public institutions and the population. 7. The proposed emergency project 5 aims to fund the rehabilitation of public infrastructure and productive activities to allow for the economic recovery and the delivery of services in the crisis affected areas in Mali while supporting the participation of local governments (LGs) and communities in the identification and validation of investments. Its design is informed by some of the drivers of fragility described above. The 4 A Commune (or Local Government) is the third level administrative unit in Mali. Mali is divided into eight regions and one capital district (Bamako). These subdivisions bear the name of their principal city. The regions are divided into 49 cercles. The Cercles and the district are divided into 703 Communes. Commune affairs are directed by a Commune Council (conseil communal) of elected members and a Commune executive (bureau communal) of the elected Mayor and three deputies. 5 The project is being processed under OP10.00, paragraph 11 – Projects in Situations of Urgent Need of Assistance or Capacity Constraints – with Condensed Procedures. 2 project will promote engagement, dialogue and coordination among key stakeholders especially at the community level in the planning and implementation oversight of investments, and in the process laying the foundations for greater social cohesion and local governance. By promoting local government engagement and responsiveness towards communities, as well as greater transparency and accountability in their functioning, the project seeks to contribute to principles of good governance and restoring people’s trust in government authority. To avoid the deepening of resentment of Southern populations towards a perceived disproportionate attention to the North, the project will also finance infrastructure needs of local governments in the South that are host to internally displaced populations (IDPs) and were affected by the crisis. C. Sectoral and Institutional Context 8. The recovery and reconstruction process in Mali has started, but it remains constrained by insecurity and the limited access to the North. The crisis in Mali has inflicted widespread damage to local infrastructure, services and productive activities in the North and strained the capacity of infrastructure and services to cope with the displaced populations in the South. Infrastructure and services disrupted by the crisis range from health centers and schools to productive assets in agriculture, livestock, fishery and craft industry. It is estimated that the water supply networks in Timbuktu, Gao and Kidal have become unstable as a result of the lack of fuel, electricity, spare parts, water treatment chemicals, and personnel. In rural areas water supply systems have been vandalized, with solar panels and pumps stolen. Schools have been damaged, pillaged and occupied, with the loss of materials and furniture. Transport and trade facilities have also been impacted, with much of the equipment and vehicles stolen or destroyed. The crisis has also had a severe impact on agricultural production with the disruption of farming activities, marketing channels, inputs and financing. Most public buildings in the North are also reported as having been vandalized during radical group occupation, constraining the return of security forces, services personnel, government officials as well as of the civilian administration. 9. The conflict in the North also resulted in a large displacement of populations. It is estimated that more than 176,000 people are currently displaced in neighboring countries, and more than 300,000 people have taken refuge in the South, including more than 35,000 students, resulting in the overcrowding of social services in to the Southern provinces. 6 The total number of people displaced by the conflict is equivalent to about one third of the population of the three Northern provinces of Timbuktu, Gao and Kidal. 10. Preliminary evidence suggests that a majority of the internally displaced population (IDP) intends to return to the North in the coming months if security does not deteriorate. 7 To that end, humanitarian aid agencies are already planning to transfer their operations to the North (primarily, Timbuktu and Gao) to support the reinsertion and reintegration of the returning populations after the completion of the harvest season at the end of 2013. The relatively short duration of the crisis (most displaced persons fled during the first half of 2012 following the radical group occupation of the North) may facilitate the rapid return of the IDPs. The redeployment of security forces (MINUSMA, French and Malian), the return of the civilian 6 Local governments with the highest percentage of displaced populations of the local population (between 15 and 6 percent) include: Mopti, Sebougou, Segou, Socoura, Pelengana, Niono, Kalanbancoro, Bamako (Commune III), and Moribabougou. 7 Consultations were held with displaced populations in Bamako (Commune VI), Niamara, Segou, Sebougou, and Pelengana. 3 administration currently underway, the transfer of humanitarian assistance from the South to the North, and the implementation of recovery programs are likely to be key pull factors to promote the return of displaced populations. The return of refugees is also being planned, although this could take longer due to fear of retaliation against some groups by security forces and other groups. 11. The government with the support of the international community has initiated the assessment of damages inflicted by the crisis and has taken the lead in rehabilitating some infrastructure in the North. Sectoral needs assessments have taken place focusing on the social sectors (education, health), public infrastructure (roads, transportation, etc.), civilian administration (buildings, personnel, equipment, etc.), and public services (water, sanitation, etc.). With the support of the European Union (EU) and MINUSMA, the government has started the rehabilitation of equipment and public buildings necessary for the redeployment of the civilian administration and security forces, especially at the Regional and Cercle levels. The United Nations Children’s Fund (UNICEF) is undertaking a detailed assessment of education needs, building on government’s initial assessment, and will finance school kits and equipment for the schools in the North. The government is financing the redeployment of social workers, and some agencies such as the World Health Organization (WHO) are paying financial incentives to health workers to return to the Northern areas. The United Nations High Commissioner for Refugees (UNHCR) as well as humanitarian agencies and local non- governmental organizations (NGOs) are supporting IDPs and are planning programs to support their reinsertion into their communities of origin. The government has allocated an estimated US$50 million equivalent to finance its recovery plan, which could include the financing of transportation costs associated with the return of IDPs. A Stabilization Fund is being set up to pool donor resources in support of government’s recovery efforts, and could finance recurrent and staffing costs associated with the investments to be financed by the project. 12. The proposed project complements other Bank operations that have been approved in response to the crisis. The Emergency Education project, approved in 2012, seeks to increase access and improve the learning environment at the national level including the North. It will finance construction of new schools while the proposed project will focus on the rehabilitation of existing facilities. Both projects will adopt a similar approach to promote community participation and engagement regarding the identification of priorities. The Emergency Social Safety Nets project, approved by the World Bank Board in April 2013, will provide cash transfers to targeted vulnerable households. While the social safety nets project and the proposed project may intervene in some common areas, the types of activities financed under the two projects will be complementary to restore services, livelihoods and income. The Recovery and Reform Support credit, approved in June 2013, supports pro-poor growth and improved public financial management reforms, which will enhance the ability of the government to deliver services and promote the economic recovery of crisis-affected areas, complementing the objectives of the proposed project. 13. The project design takes into consideration on-going reconstruction efforts by the government and other partners and is guided by three main principles – flexibility, 4 coordination, 8 and involvement of local government and communities. The flexibility in its approach will enable the project to respond to an evolving situation. The environment in which the project will operate will change rapidly over the coming months with the expected return of displaced populations and the implementation of an array of new activities by humanitarian and development agencies. The project therefore adopts a flexible approach, so that activities can be phased to allow for the return of security and the civilian administration to project areas. In case insecurity persists in some parts of the country, the project proposes alternative implementation arrangements. Close coordination of project activities with other reconstruction programs at the national and local levels will promote coherence of approaches and avoid crowding of efforts. Involvement of local (and regional) governments and communities in all activities will promote transparency and accountability and ensure relevance of interventions. The project will work side by side with local and regional governments in all activities and will seek to strengthen their capacity. Local governments and communities will also validate priority investments and identify subsequent ones, and they will be involved in the monitoring of all activities. D. Higher Level Objectives to which the Project Contributes 14. The project will contribute directly to the recovery objectives set by the government in the 2013-14 Plan for the Sustainable Recovery of Mali (Plan pour la Relance Durable du Mali, PRED). The PRED was presented to the international community during the Consultative Group meeting for Mali, held in Brussels in May 2013. In particular, the project will support two of PRED’s twelve themes – responses to humanitarian needs and the consequences of the crisis; and economic recovery through support to private sector, strengthening of agriculture, investing in infrastructure and youth employment. 15. The project is fully aligned with the Bank’s Interim Strategy Note (ISN), Fiscal Year 2014-2015. It will contribute to the three priority areas of the ISN, namely (i) laying the foundations for long term accountability and stability, (ii) protecting human capital and building resilience, and (iii) preparing the conditions for economic recovery. The project is also aligned with the Bank’s Africa Strategy - in particular with the second pillar, Vulnerability and Resiliency - in its emphasis on rehabilitating local infrastructure, restoring productive activities, and providing targeted support to service delivery that will allow the population to overcome the loss of productive assets and improve access to public infrastructure and services. By doing so, the project will contribute towards reducing the vulnerability of the target population to the multiple impacts of the crisis. The project is central to the Sahel Initiative and its support to efforts of governments, regional organizations and partners in the region to address the long standing drivers of fragility in the sub-region. 16. The project is also aligned with the World Bank Group global objectives of reducing extreme poverty and boosting shared prosperity. The crisis in Mali has deprived already poor people of productive assets and has reduced their access to services and local infrastructure. The 8 At the national level, donor coordination for post-conflict recovery in Mali is ensured through the Commission Réhabilitation Zones Post-Conflict (Commission for the Rehabilitation of Post-Conflict Zones), through which the Bank continues to seek feedback and enhanced coordination for the design and implementation of the proposed operation. The project will support coordination of activities at the regional, cercle and local government level through the existing development committees (see Component 3). 5 project will aim to redress the negative impacts of the crises on the poor and to lay groundwork for the resumption of poverty reduction reforms and programs. II. PROJECT DEVELOPMENT OBJECTIVES A. PDO 17. The objective of the proposed project is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. B. Project Beneficiaries 18. The primary beneficiaries will be the communities affected by the crisis in Mali in the areas targeted by the project; these communities will benefit from the rehabilitation of local infrastructure, the restoration of productive activities, and the resumption of social services. Preliminary estimates indicate that the crisis in Mali has resulted in large welfare losses for the Northern population, whether people have been displaced or not. 9 While precise estimates are not yet available, the negative welfare impacts of the crisis are associated with loss of assets and revenues, as well as future earning potential, and the health and educational consequences of the crisis on the welfare of all households in the North. The vulnerability of host communities in the South is also estimated to have increased as a result of the presence of IDPs and the economic uncertainties associated with the crisis. 19. Beneficiaries under Component 1 will be the people living or returning to the three regions in the North, as well as selected communities in the South. The target areas are those that were the most affected by the crisis, based on the preliminary assessment of damages and number of displaced people. More specifically, Component 1 will intervene in the regions of Timbuktu, Gao and Kidal (Northern regions), as well as four cercles in the Mopti region (Mopti, Douentza, Tenenkou and Youwarou) and one cercle in the Ségou region (Niono) which were occupied during the conflict. Component 1 will also benefit communities in the South that host large numbers of IDPs from the North, specifically communes in Bamako District as well as in the regions of Mopti, Koulikoro and Segou. Those communities will directly benefit from rehabilitation of local infrastructure and resumption of social services. 20. The primary beneficiaries of the support provided to productive activities under Component 2 will be households and community groups deemed the most vulnerable, including returnees, in the Northern regions - Timbuktu, Gao and Kidal. Component 2 will benefit displaced people upon their return to their communities of origin, as well as other groups in the North based on agreed vulnerability criteria. 21. Other project beneficiaries include local governments and deconcentrated technical services in the areas of intervention under Components 1 and 2, which are expected to benefit 9 Eozenou, Patrick, Madani, Dorsati, Swinkels, Rob, (2013) Poverty, Malnutrition and Vulnerability in Mali, Policy Research Working Paper, 6561, World Bank, Washington DC. 6 in terms of improved capacity through the technical assistance and capacity building activities supported under Component 3. C. PDO Level Results Indicators i. Direct project beneficiaries (number), of which female (percentage) ii. Local public infrastructure rehabilitated under the project functioning one year post rehabilitation (percentage) iii. Productive assets rehabilitated under the project utilized for economic activities one year post rehabilitation (percentage) iv. People benefitting from rehabilitated local infrastructure (number) v. People benefitting from rehabilitated productive assets (number) III. PROJECT DESCRIPTION 22. The proposed emergency project aims to fund the rehabilitation of local public infrastructure and productive activities to allow for the economic recovery and the delivery of services in the crisis affected areas in Mali. The project will also facilitate and strengthen the engagement of communities and the Participating Local Governments (PLGs) in the planning, prioritization and oversight of local development activities, thus laying the foundation for social inclusion and better governance. A Priority Investment Program comprising public infrastructure rehabilitation and restoration of productive assets of vulnerable households will be financed to meet urgent needs following a quick validation by communities and PLGs. The project will use an inclusive and conflict sensitive process for the identification of additional investments corresponding to community priorities, during implementation. Component 1 (Rehabilitation of Local Public Infrastructure) will allow for the resumption of services and economic activities. Component 2 (Support to Productive Investments) will jump-start economic activities of communities and households. Component 3 (Community Engagement and Local Governance) will ensure that the social and productive infrastructure rehabilitated under Components 1 and 2 respond to community needs and address conflict risks. A. Project Components Component 1: Rehabilitation of local public infrastructure (US$50 million equivalent) 23. This component aims to rehabilitate local public infrastructure to allow for the resumption of services and economic activity in the areas of Mali affected by the crisis. The component will support the rehabilitation and equipment needed for the functioning of schools, health centers, water and sanitation systems, transport and trade facilities, energy and other local public infrastructure. The infrastructure being rehabilitated under this component will be that under the purview of LGs, which was the infrastructure the most affected by the crisis. This component will intervene in the North and in selected areas in the South in a total of 149 LGs. Local governments, deconcentrated technical services, and communities will be fully involved in the planning, prioritization and oversight of activities to be carried out under Component 3. In addition, the works will be implemented using as much as possible a labor-intensive approach in order to provide revenues to the local population. 7 24. This component will be executed in two parallel tracks. Track One will finance the Priority Investment Program, estimated at about US$12 million, to allow for quick rehabilitation of infrastructure and other related needs (see Table 2.2 in Annex 2). The activities in the Priority Investment Program include, inter alia, rehabilitation and equipment of classrooms, school feeding, rehabilitation and equipment of health centers, rehabilitation of water supply systems, and rehabilitation and cleaning of drainage structures. Track Two will finance infrastructure needs as identified by the communities through a review of the existing Social, Economic and Cultural Development Plans (Plans de développement socio-économique et culturel, PDSECs). The review of PDSECs, based on a consultation process with communities to be supported under Component 3, will provide the basis for the identification of additional investments to be funded under Component 1. The roll out of activities and investments under Component 1 will be phased to accompany the return of security and the civilian administration to the LGs. In line with LGs priorities, the project could also support innovative approaches to social services delivery. Table 2.1 in Annex 2 summarizes the types of activity per sector that could be financed under Component 1, as well as the estimated associated costs. 25. An indicative per capita allocation sets the maximum amount each LG will receive under Component 1. This indicative maximum per capita amount will ensure transparency in the allocation of resource across LGs; it is based on the estimated population and number of displaced people in the targeted LGs. Based on preliminary estimates, the targeted LGs in both the North and South will receive a maximum per capita funding of approximately US$18 10 for Component 1 during the duration of the project, including resources allocated for the Priority Investment Program and for subsequent priorities identified in PDSECs. Component 1 will be implemented by at least two Delegated Contract Management Agencies (Maîtres d’Ouvrage Délégué, MODs) to be supervised by the Project Coordination Unit (PCU) as well as by local authorities and local communities. The Agency for the Execution of Public Works and Job Creation (Agence d’Exécution des Travaux d’Intérêt Public pour l’Emploi, AGETIPE) will be in charge of rehabilitating infrastructure, and the Agency for the Execution of Road Maintenance Works (Agence d’Exécution des Travaux d’Entretien Routier, AGEROUTE) will be in charge of rehabilitating roads. Other agencies, including AGETIER, may be selected as MODs, on the basis of appropriate selection methods in line with the emergency nature of the project, and subject to meeting eligibility and performance criteria, and fiduciary requirements. Component 2: Support to productive investments (US$35 million equivalent) 26. Component 2 will provide support for productive investments in the North to redress the impacts of the crisis on communities and households. The objective of the component is to jump-start economic activities by (i) helping rural households that were adversely affected by the conflict to restore their productive assets and reduce food insecurity, and (ii) helping rural community-based organizations (CBOs) that were adversely affected by the crisis to re-launch productive activities, with the goal of increasing their income by addressing priority investment needs. This component will build on experience gained through the Rural 10 This per capita amount is indicative only and is calculated based on the total amount of funds available for investments under Component 1 divided by the population of the targeted LGs. For LGs in the South, the total maximum amount per LG will be calculated based on the number of displaced people. 8 Communities Support Project (Projet d’appui aux communautés rurales, PACR) and will utilize a similar approach. The implementation of the component will rely on NGOs (or MODs). Working in close collaboration with deconcentrated agencies of the national government, the MODs will provide advice and support to CBOs and households, with the goal of helping them identify and implement productive investments. Activities financed under Component 2 will provide a combination of emergency assistance and medium-term recovery support under two sub-components: Sub-component 2.1 - Immediate restoration of household productive assets; and Sub-component 2.2 - Collective productive activities. Sub-component 2.1 – Immediate restoration of household productive assets (US$3 million equivalent) 27. This sub-component is aimed at restoring the productive assets of targeted vulnerable households in the zones most affected by the crisis by (a) increasing access to improved seed and animal feed, and (b) recapitalizing livestock. Activities of this sub-component will complement activities 11 being financed in the North under the West Africa Agricultural Productivity Program (WAAPP). Taking into account the ongoing interventions of the government and donors to mitigate the crisis, this sub-component will support the purchase of seeds and animal feed for distribution to farmers/herders to enhance domestic food production capacity. The recapitalization of livestock will be undertaken through the provision of kits. Sub-component 2.2 – Collective productive activities (US$32 million equivalent) 28. The sub-component will support legally established CBOs by financing productive investments proposed by them. CBOs will be selected to ensure that women, youth and vulnerable minorities are well represented, both in terms of primary membership and in terms of leadership. The sub-component will cover the following types of investment: (i) rehabilitation or construction of infrastructure for agricultural production activities, such as small irrigation perimeters, storage facilities, and small processing units; (ii) re-launching of livestock and fisheries activities, including restocking, animal feed provision, vaccination and marketing facilities; and (iii) support to income generating artisanal activities, including construction of small shops and facilities for manufacturing handicrafts. Support to productive investments will be complemented by capacity building activities designed to improve the productivity and profitability of those investments. The trainings and capacity building activities will be delivered by relevant public agencies, private service providers, and NGOs. 29. An indicative per capita allocation sets the maximum amount that can be allocated to productive activities in a specific LG under Component 2. This indicative per capita amount will ensure transparency in the allocation of resources as it is calculated based on the population of the targeted LGs. Based on preliminary calculations, the targeted LGs in the North will receive a maximum per capita funding of approximately US$13 12 (this figure includes the resources allocated for both sub-components). Component 2 will be implemented by at least two NGOs (or MODs) - CARE Mali and SOS Sahel – to be supervised by the PCU. The two NGOs 11 The WAAPP supports the generation, dissemination and adoption of improved technologies in the participating countries’ priority agricultural commodity areas. 12 This per capita amount is calculated based on the total amount of funds available for investments under Component 2 divided by the population of the targeted LGs. 9 have extensive experience in the North of Mali in working with communities to restore productive activities and livelihoods. Other NGOs may be selected as needed, subject to meeting eligibility and performance criteria. Component 3: Community engagement and local governance (US$10 million equivalent) 30. This component aims to strengthen the engagement of communities and PLGs in the planning, prioritization and oversight of local development activities, and to put in place elements of local governance. Community mobilization efforts will focus particularly on vulnerable social groups, including women, youth, disabled persons, displaced persons, returnees, and minority ethnic groups. The project will also support active involvement of PLGs and communities elected bodies at facility level in all project activities, to enhance their interaction with communities, ensure transparency and respect for community priorities, closely monitor project implementation, and respond to community feedback and grievances in a timely manner. The planning and prioritization process will take into consideration existing tensions, security issues and problems with elite capture and appropriate mitigation measures in order not to exacerbate local conflicts. It is expected that the planning and deliberation process at the community level will contribute to strengthening the social fabric, supporting community dialogue, promoting the resolution of community level disputes, and by delivering quick and visible results, establishing the legitimacy and credibility of the PLGs. 31. Activities supported under this component will include: (a) a well-targeted communication and outreach effort that effectively publicizes the project objectives, investments and processes to ensure meaningful participation of community and PLGs; (b) an inclusive and conflict-sensitive consultation process at the village/fraction level that promotes agreement about the priority social and economic infrastructure to be rehabilitated and that based on predetermined criteria identifies community-based associations/organizations and individual vulnerable households to be supported for productive investments (details in Annex 2); (c) a facilitated and fair process for finalization of priority infrastructure for rehabilitation under Component 1 at the LG level that feeds into the review of the PDSECs and the identification of beneficiary CBOs and vulnerable households to be supported under Component 2; (d) a transparent validation process of the reviewed PDSECs by the representatives from the PLGs, civilian administration, civil society and community groups especially of women and youth; and (e) active participation of PLGs and community in the monitoring and oversight of implementation of infrastructure rehabilitation and productive investments, to ensure timeliness and quality of infrastructure implementation, and to track the utilization of productive inputs provided to CBOs and individual beneficiaries; (f) regular dissemination of project progress and achievements to all stakeholders, especially communities through various traditional and modern means; and (g) a functional and accessible feedback and grievance mechanism that contributes towards the integrity of the process and principles of accountability and governance. 32. Components 2 and 3 will be executed by the same two NGOs - CARE Mali and SOS Sahel and/or any other entity to be selected by the PCU, as needed, subject to meeting eligibility and performance criteria as described in the PIM. The PCU will contract these NGOs, which will be responsible for designing the modalities of the community engagement approach to support both Component 1 and 2, incorporating the peculiarities of operating in the North and South, and facilitating implementation with necessary regional level arrangements. 10 These two NGOs have proven experience and demonstrated capacity to operate at scale and in partnership with civilian administration and PLGs, especially in the North of Mali, and come equipped with a keen understanding of the social and institutional dynamics that will influence implementation. Component 4: Project management, monitoring and evaluation (US$5 million equivalent) 33. This component will support project management, including coordination of activities, communication, procurement, financial management and safeguard functions, as well as monitoring and evaluation. The component will finance the PCU to carry out day-to-day project management responsibilities. Project management functions will include recruitment of MODs for Components 1, 2 and 3, preparation of work plans and budgets, preparation of regular progress reports, monitoring and evaluation, communications and outreach, and overall oversight of project activities. The PCU will ensure that the recruited MODs adhere to procurement and safeguards requirements and that they comply with financial management and reporting procedures. In particular, the PCU will ensure that the MODs execute activities according to the agreed terms of contract. This component will rely on three regional implementation units (regional antennas, RAs) for coordinating project activities, working closely with government entities at regional, cercle and local government (commune) levels within their regional boundaries. The PCU will also recruit a Third Party Monitoring (TPM) agency to support the monitoring of the implementation of Components 1, 2, and 3, including safeguards implementation, with the active involvement of communities and PLGs. The TPM could take on larger responsibilities, should security deteriorate or access to project sites remains limited. Component 5: Contingent emergency response 34. This component, known as the Contingent Emergency Response Component (CERC), will be available should the need arise to redirect project resources freed up by a future restructuring of the project or other Bank projects in the Mali portfolio. Such resources would be made available to finance emergency response activities and to address crisis and emergency needs. An Immediate Response Mechanism Coordinating Agency and expenditure management procedures will be defined in an Immediate Response Mechanism Operational Manual (IRM/OM), to be prepared separately and approved by the Bank, in line with guidance provided under OP 10.00, paragraph 11. In case this component is utilized, the project will be restructured to allocate financing, revise the PDO and indicators, and detail implementation arrangements. B. Project Financing 35. The project will be implemented through an Investment Project Financing (IPF) financed by a US$100 million equivalent IDA Grant over five years. The project is being processed under OP10.00, paragraph 11 – Project in Situations of Urgent Need of Assistance or Capacity Constraints – with Condensed Procedures. Mali is a fragile state and the project intervenes in a situation of urgent need of assistance, meeting the requirements under paragraph 11. Retroactive financing of approximately US$4.5 million has been requested by the government to expedite project implementation and to allow for the financing of urgent needs. 11 Project Cost and Financing IBRD or IDA Project cost Project Components Financing % Financing (US$m) (US$m) 1. Rehabilitation of local public infrastructure 50 50 100% 2. Support to productive Investments 35 35 100% 3. Community engagement and local 10 10 100% governance 4. Project management, monitoring and 5 5 100% evaluation 5. Contingent emergency response 0 0 Total Costs Total Project Costs 100 100 Front-End Fees Total Financing Required 100 100 C. Lessons Learned and Reflected in the Project Design 36. Key lessons learned from previous Bank-financed reconstruction projects in situations of crisis are reflected in the project design as outlined below.  In post-conflict environments it is critical to balance the need for quick and early results with the strengthening of institutions. In fact, the crisis in Mali is rooted in a perceived deterioration of institutions. The project’s approach is aimed at demonstrating rapid results while at laying the foundations for improved governance in the medium term.  Participatory needs assessment have shown that communities have a good understanding of their needs but often fail to include the priorities of the most vulnerable groups. The validation of existing needs assessments carried out by communities (Component 1) will include an initial mapping of vulnerable groups (returnees, female headed households, youth) in project areas to ensure their priorities are taken into consideration. The targeting of beneficiaries in Component 2 will adopt a similar approach.  Community-based identification and oversight of implementation ensures greater ownership and sustainability of project investments. In light of limited data and administrative capacity especially at the local government level, an inclusive and transparent infrastructure prioritization and beneficiary targeting will ensure greater involvement in the planning and oversight of investments as well as sustainability through greater attention to operations and maintenance.  In polarized communities, opportunities for dialogue among community leaders can help address conflicts between groups. Project preparation activities will include a quick social assessment to map drivers of polarization and conflict resulting from project activities and in project sites. Component 3 will seek to sensitize community stakeholders to potential sources of conflict and the benefits of community dialogue. 12 IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 37. The Ministry of Economy and Finance (MEF) will be the government entity responsible for overall coordination and supervision of project activities. A Project Steering Committee (Comité d’Orientation et de Pilotage, COP) will be established and chaired by the Minister of Economy and Finance. A Project Coordination Unit (PCU) will be established within the MEF to assist with day to day project management responsibilities, including recruitment of MODs for Components 1, 2 and 3, preparation of work plans and budgets, preparation of regular progress reports, monitoring and evaluation, communications and outreach, and overall oversight of project activities. The PCU will have the overall financial management responsibility for project implementation. The PCU will oversee adherence to procurement and safeguards requirements. In particular, it will ensure that the MODs execute activities according to the agreed terms of contract. The PCU will rely on three regional implementation units (regional antennas, RAs) for coordinating project activities, working closely with government entities at regional, cercle and local government (commune) levels. Until the PCU is fully established and to help expedite project implementation, project management responsibilities will be carried out by the PCU of the on-going Governance and Budget Decentralization Project. 38. Component 1 will be implemented by at least two MODs – AGETIPE, for rehabilitation of infrastructure, and the AGEROUTE for rehabilitation of roads. These two first MODs were selected based on their expertise and experience, following a technical and fiduciary assessment. Two delegated management contracts will be signed between MEF and AGETIPE and AGEROUTE to clarify roles and responsibilities, and performance criteria, describe financial management and disbursements arrangements, and prepare detailed action plans and budgets covering outputs and outcomes to be achieved over the duration of the contract. Other agencies, including AGETIER, may be selected as MODs for the Component 1 subject to meeting eligibility and performance criteria, and fiduciary requirements. The MODs will ensure that the project is implemented according to the priorities identified by PLGs in consultation with communities, including the Priority Investment Program, in the areas of interventions of the project. A review of MODs performance will be undertaken after a period of time to be aligned with the implementation of the activities included in the Priority Investment Program. 39. Components 2 and 3 will be implemented by at least two MODs – CARE Mali and SOS Sahel are the first two NGOs selected. Working in coordination with PLGs, the MODs will be responsible for planning and implementation of activities supported under Components 2 and 3. Nevertheless, MODs will rely on appropriate participatory approaches for the revisions of PDSECs and their endorsement by the relevant coordination committees at the local government, cercle and regional level (see detailed description of Component 3 in Annex 2). In the event access to some targeted areas remains constrained for security reasons, alternative implementation arrangements will be put in place, which might include the assignment of increased responsibilities to MDOs under Components 2 and 3. Contractual arrangements with the proposed MODs will clearly state their responsibilities, timeframe for implementation of activities and reporting mechanisms. Performance criteria will also be included in the agreements to be signed with MODs, and a review of MODs performance will be undertaken after a period of time to be aligned with the implementation of the Priority Investment Program. CARE Mali 13 and SOS Sahel have been selected following a technical and fiduciary assessment of other NGOs with similar expertise. The two selected NGOs have extensive knowledge of the targeted regions. Both have regional antennas in Mopti, and both have experience implementing similar activities in the targeted regions. Two delegated management contracts will be signed between MEF and the two NGOs. Other NGOs may be selected as MODs for the Components 2 and 3 subject to meeting eligibility and performance criteria. 40. Component 4 will be implemented by the PCU (see description of PCU responsibilities above). The PCU will contract a TPM agency to undertake monitoring and evaluation of Components 1, 2, and 3, with the active involvement of communities and PLGs. The TPM agency could take on larger responsibilities regarding monitoring and evaluation of project activities, should security deteriorate or access to project sites remain limited. 41. The Coordinating agency for Component 5 as well as expenditure management procedures and institutional arrangements will be defined in an Immediate Response Mechanism Operational Manual (IRM/OM), to be prepared separately and approved by the Bank, in line with the flexibility provided in OP 10.00, paragraph 11. B. Results Monitoring and Evaluation 42. The project monitoring and evaluation (M&E) framework will rely on specific arrangements at three different layers – national level, regional level, and community monitoring. At the national level, the PCU will be responsible for consolidation of data, monitoring of indicators and reporting on Components 1, 2 and 3, as provided by the Regional Antennas (RA) and the different implementing agencies. The Regional Antennas (RAs) will follow a specific framework for monitoring activities of Components 1, 2 and 3, working in close coordination with implementing agencies, and regional, cercle and local government coordination mechanisms. The MODs will be responsible for data collection and monitoring of indicators. Dedicated staff within the PCU will assure the quality and timeliness of data and reporting. The Steering Committee will monitor the semi-annual reports, which will be disclosed to the public. Baseline data will be collected by MODs as part of project preparation. 43. Community monitoring and public information dissemination will also be a key element of the project’s M&E. Community monitoring will be facilitated under Component 3 which seeks to ensure that the social and productive infrastructure rehabilitated under Components 1 and 2 respond to community needs and take into consideration conflict risks. Communities and PLGs will monitor the use of project resources at the grassroots level including the timeliness and quality of infrastructure rehabilitation, and the utilization of project inputs by associations and individual beneficiaries in jump-starting productive activities. Information will be made available at the community-level through multiple channels including periodic local meetings, notice boards, and vernacular radio. The feedback and grievance redress mechanism, to be set up and supported under Component 3, will provide an independent avenue to address grievances relating to the project. 44. In addition, the TPM will monitor project processes and describe impacts and results based on inputs from communities and other stakeholders. Should security deteriorate and 14 prevent Bank teams from accessing certain areas, the responsibilities of the TPM will be scaled up to include additional M&E responsibilities to complement those being undertaken by MODs. Project information will also be available through website postings, reports and studies. C. Sustainability 45. The project development objective focuses on rehabilitating local infrastructure and productive activities affected by the crisis in Mali. Under Component 1, the project will seek to rehabilitate local infrastructure that had been functioning before the crisis and for which accompanying Operations and Maintenance (O&M) costs had been budgeted and staff had been allocated (before and in the aftermath of the crisis). The rehabilitation of specific infrastructure will be preceded by an initial process of validation with local communities, local governments and deconcentrated technical services to ensure relevance and viability of works. Implementation of Component 1 will require close coordination between the PCU and local governments, to ensure that the latter are actively involved in planning infrastructure rehabilitation activities and maintaining the infrastructure once it has been rehabilitated. Community monitoring will be an additional tool used to promote the sustainability of investments during project implementation. 46. The restoration of productive activities under Component 2 will be carried out by NGOs with experience in the areas of intervention. Working in close collaboration with CBOs, local communities, deconcentrated technical services, and local governments, and taking into account their previous experience, the NGOs will target the beneficiaries (households and groups). The use of NGOs will ensure that the equipment and other goods made available under the component will benefit the same households and communities that that were involved in these activities before the outbreak of the conflict. The NGOs will work closely with deconcentrated technical agencies to build capacity among beneficiaries. V. KEY RISKS AND MITIGATION MEASURES A. Risk Ratings Summary Table Risk Category Rating Stakeholder Risk Substantial Implementing Agency Risk - Capacity Substantial - Governance Substantial Project Risk - Design Substantial - Social and Environmental Substantial - Program and Donor Moderate - Delivery Monitoring and Sustainability High Overall Implementation Risk High 15 B. Overall Risk Rating Explanation 47. The overall project risk rating is High based on the assessment of the impact of several high or substantial risks, including delivery, stakeholder, project design, and implementation capacity. The delivery risk is rated High because of persistent insecurity in some areas of project intervention, potentially undermining project implementation and accessibility of project teams to some project areas in the North. Alternative implementation arrangements are proposed to circumvent the constraints imposed by a potential deteriorating security situation but security concerns remain a key challenge to the achievement of the project’s development objective. Also, the delivery risk is compounded by the need to closely coordinate project activities with a variety of stakeholders in an evolving and fast moving environment. The stakeholder risk is rated Substantial due to the potentially tense social environment in which the project will operate and the risk of exclusion of some groups from project benefits. Suitable targeting of beneficiaries and screening criteria of project activities will be pivotal to avoid the risk of exclusion (or perception of it) from project activities by some groups. The project design risk is assessed as Substantial since it adopts a multisectoral approach while attempting to respond to emergency needs. IV. APPRAISAL SUMMARY A. Economic Analysis 48. The proposed emergency project is intended to support the government rehabilitate local infrastructure and restore productive activities in the areas affected by the crisis. Because of its emergency nature and since it is not possible to identify a comprehensive list of investments to be supported under Components 1 and 2, the economic analysis of the types of investments that are likely to be financed under the project has not yet been carried out. The project investments are likely to include schools, health facilities, water supply systems, and roads as well as infrastructure for productive activities, storage facilities and other small scale productive investments. The list of investments will be finalized during the early stages of project implementation, following consultations with communities, deconcentrated technical agencies, and local governments to ensure the relevance and feasibility of investments. The difficulty of anticipating the investments to be supported is compounded by the fact that the project will need to coordinate activities closely with those by other agencies. An economic analysis of a range of investments will be carried out during the first year of project implementation. This analysis will serve as a tool to ensure that investments made in subsequent years of the project and also in future similar operations deliver value for money. Investments to be subjected to economic analysis are likely to include both investments in infrastructure rehabilitation and investments in restoration of productive activities. Feasibility analyses, technical feasibility and cost- effectiveness will also be assessed prior to reconstruction. 49. Evidence from similar projects in the region suggests that the rates of return to similar social and economic infrastructure rehabilitation investments are likely to be substantial or high. Component 1 will support the rehabilitation of infrastructure and equipment that has been damaged during the crisis and that is needed for recovery in the North of Mali and areas in the South where services and infrastructure have been strained by the displaced populations. This includes: (i) rehabilitation of water supply systems; (ii) rehabilitation of roads and transport 16 facilities; (iii) rehabilitation and equipment of schools; (iv) rehabilitation and equipment of health centers; (v) rehabilitation of schools and health centers; (vi) rehabilitation and cleaning of drainage structures, including collection of garbage likely to clog such structures; (vii) rehabilitation of electricity facilities. The analysis will focus on economic benefits from improved health conditions, improved water quality, and time savings due to rehabilitated transport infrastructure. Examples of expected benefits include: (a) For school rehabilitation: increased enrolment of students; improved learning environment; improved health and nutrition status; improved community cohesions; (b) For road rehabilitation: increased mobility; improved access to transportation; improved access to markets, schools, and health care facilities; and encouragement to communities to begin small-scale productive activities; (c) For water systems rehabilitation: availability of clean, potable water; reduced time and costs of accessing water; reduced morbidity especially among children; reduced health care expenditures; and reduced time away from livelihood activities due to illness. 50. Component 2 will support the rehabilitation of productive activities in the North, with the goal of redressing the impacts of the crisis on rural households and rural community-based organizations. This component will support, among other things: (i) distribution of agricultural inputs and animal feed; (ii) rehabilitation or construction of infrastructure for agricultural production activities, such as small irrigation perimeters, storage facilities, and small processing units; (iii) re-launching of livestock and fishery activities, including restocking, animal feed provision, vaccination and marketing facilities; and (iv) income generating artisanal activities, including small shops, facilities for manufacturing handicrafts, and facilities for eco-tourism. Some of the expected economic benefits include improved agricultural productivity, increased agricultural production, and more productive use of rehabilitated infrastructure. B. Technical 51. The project’s technical approach reflects the challenges associated with reconstruction and recovery efforts in post-crisis environments where security may constrain project activities. 52. Identification of priorities. Project preparation was informed by early needs assessments undertaken by the government in collaboration with international agencies and NGOs. However, because those needs have not yet been verified, security constraints to access project sites, and the expected movement of people from and to project sites, priority investments (detailed in the Priority Investment Program) will be submitted for rapid validation by communities to ensure the relevance of project-supported activities. Also, investments will be screened to assess their technical feasibility and to confirm the availability of staff and budget to cover operating costs. PDSECs and community consultations will be used to identify investments additional to those included in the Priority Investment Program. 53. Selection of project sites and resource allocation. The selection of project sites has been informed by early estimates of infrastructure damage inflicted by the conflict and by data on displacement (both community of origin and hosting communities). However, the selection of areas of project intervention (or local governments) will need to be confirmed once more data are available and access to the North is possible. Also, the proposed maximum per capita funding allocation per LG of approximately US$18 for Component 1 and US$13 for Component 2 is 17 indicative; these numbers will be adjusted to reflect the intensity of damages in specific project sites, as well as the final number of PLGs. 54. Phasing of activities. Project activities will be phased in response to future improvements in the security situation and the redeployment of security forces (Malian and MINUSMA) and the civilian administration, particularly in the North. As such, project activities are likely to begin initially in the South and in the two main Northern towns (Timbuktu and Gao) and surrounding areas. 55. Implementation arrangements. The project will rely on MODs to allow for a timely execution of activities. While PLGs and communities will be involved in all project activities, the use of MODs in Component 1 will expedite procurement processes and infrastructure rehabilitation. For Component 2, the use of MODs (NGOs) with technical expertise and presence in the North will facilitate the targeting of beneficiary households and community groups. The use of NGOs may also facilitate access to some project sites where security may be a concern. C. Financial Management 56. A financial management assessment was carried out of MEF, which is responsible for the overall coordination and implementation of the project. The objective of the assessment was to determine: (a) whether the MEF has adequate FM arrangements in place to ensure that the funds will be used for the purposes intended in an efficient and economical manner and whether the entity is capable of correctly and completely recording all transactions and balances related to the project; (b) whether the project’s financial reports are likely to be prepared in an accurate, reliable and timely manner; (c) whether project assets can be kept secure; and (d) whether the project will be subjected to auditing arrangements acceptable to the Bank. In addition, the FM capacity of the first two MODs selected for Component 1 (AGETIPE and AGEROUTE) and two MODs for Component 2 and 3 (CARE Mali and SOS Sahel) was assessed to determine whether these entities meet the Bank’s minimum requirements to manage infrastructure rehabilitation and productive investments. Other agencies, including AGETIER, may be selected as MODs, on the basis of appropriate selection methods in line with the emergency nature of the project, and subject to meeting eligibility and performance criteria, and fiduciary requirements. 57. A Project Coordination Unit (PCU) and up to three regional implementation units will be established within the MEF and will have the overall financial management responsibility for the project implementation. Given the context of emergency and the need to ensure readiness for implementation, the lack of functionality of some LGs, and the weak capacity at local level, (i) the activities of Component 1 related to infrastructure rehabilitation will be executed by construction managers acting with delegation of the implementation responsibility and (ii) project management responsibilities including financial management will be carried out by the PCU of the on-going Governance and Budget Decentralization Project that has satisfactory FM performance until the PCU of the proposed project is fully established and operational. Two delegated management contracts will be signed between MEF and the two first construction managers (AGETIPE and AGEROUTE) to clarify roles and responsibilities, describe financial management and disbursements arrangements, and prepare detailed action plans and budgets covering outputs and outcomes. 18 58. Two MODs (CARE Mali and SOS Sahel) having extensive knowledge of the targeted regions will execute Components 2 and 3. Both of these MODs have regional antennas in Mopti, and both have experience implementing similar activities in the targeted regions. Two delegated management contracts will be signed between MEF and the two MODs. The PLGs will play a critical role in ensuring that high priority requests from communities are financed, improving service delivery through the oversight of activities on the ground, and building support and ownership for the project. 59. Adequate numbers of FM staff and functioning FM systems are not yet in place within the PCU. Construction managers (AGETIPE and AGEROUTE) have executed similar activities for previous Bank-financed operations and are familiar with IDA procedures. However, some weaknesses were revealed during the execution of previous Bank-financed projects, namely the inadequate management of contracts and the lack of quality review and internal or external audit functions. CARE Mali and SOS Sahel have appropriate capacities and experience in supporting similar activities. They have adequate numbers of FM staff, but these staffs are not always familiar with Bank-financed project procedures. To address the FM capacity constraints, the following actions need to be completed to ensure that the implementing units have adequate FM arrangements to take over from the PCU of the on-going Governance and Budget Decentralization Project and handle the activities under the proposed project: (i) recruit a Financial Management Specialist for the PCU no later than three months after effectiveness; and (ii) elaborate the project FM procedures including internal controls, budget process, assets safeguards, and description of roles and responsibilities of all stakeholders no later than two months after effectiveness. 60. As additional dated covenants, the MEF will: (i) recruit a qualified accountant to complete the FM staffing of the PCU and put in place the FM units (no later than three months after effectiveness); (ii) set a multi-sites accounting software to ensure timely recording of financial information as well as timely production of quarterly and annual financial statements at the PCU (no later than four months after effectiveness); (iii) recruit an internal auditor to carry out quarterly internal control reviews and physical verifications; and (iv) recruit an external auditor (no later than four months after effectiveness). 61. Disbursements to each MOD under the Components 1, 2 and 3 will be subject to: (i) for the initial payment, the MOD has set up adequate staff team comprising, inter alia, a financial management specialist, a procurement specialist, an infrastructure specialist and an environmental and social development specialist; and has opened a dedicated account, all in accordance with the Delegated Contract Management Agreement; and (ii) for all subsequent payments, the PCU has approved a report to the Association stating that the staff team described above has been maintained by the MOD and the activities have been executed in accordance with the Delegated Contract Management Agreement. 62. It is expected there will be retroactive financing of payments made by the recipient prior to the legal agreement date. The government will pre-finance eligible expenditures under Components 1, 2, 3 and 4 to be procured in line with Bank procurement guidelines. The recipient 19 will seek reimbursement payments up to US$4.5 million made in this context upon project effectiveness. 63. Inefficient service delivery is still perceived as the manifestation of corruption and poor governance. Corruption is acknowledged as an issue in the public sector in Mali and more specifically with decentralized operations. The following measures are incorporated into the project design to minimize the above risk and reinforce citizen oversight: • Social accountability: the project will support the functionality of the institutional framework at the local and regional levels to implement activities aimed at strengthening social accountability in the targeted regions and supporting citizen oversight. The PLGs will ensure coherence of proposed activities with development priorities at each level of government. The PCU and RAs will make all the information related to the project widely available through the local committees (CCOCSAD, CLOCSAD and CROCSAD) in addition to an information campaign to promote transparency and accountability to local communities throughout project implementation. A GRM will also be set up under Component 3 that will help respond on case of improper service delivery; • Internal control: the Bank has been supporting the General Finance Inspectorate (Inspection Générale des Finances, IGF) within the MEF and the General Control of Public Services (Contrôle Général des Services Publics, CGSP) to build their capacities through training on audit methodology, preparing work programs based on risk assessment and the adoption of risk based approach to perform regular ex-post audits in addition to the proposed internal auditor who will be dedicated to the project; • Physical verifications: field visits will be conducted regularly to collect information and monitor implementation progress of various components. 64. The overall risk for the project is rated High due mainly to the complexity of the operation related to the number of stakeholders involved, the context of emergency, the lack of functionality of some local committees, and the limited capacity at the local level. Given that the FM activities will be carried out by the PCU of the ongoing Governance and Budget Decentralization TA Project during the initial months of project implementation, the overall FM residual risk for the project is rated Substantial. It is expected, however, that the financial management arrangements will satisfy the Bank’s minimum requirements under OP/BP 10.00, once the mitigation measures set out in the financial management action plan provided in Annex 3 have been implemented. D. Procurement 65. Procurement for the proposed project will be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works and Non Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011, “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011 and the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and 20 Grants”, dated October 15, 2006 and revised in January 2011. National Competitive Bidding (NCB) shall be in accordance with procedures acceptable to the Bank. In line with the ISN, procurement under the proposed project would operate under OP/BP 10.00 on Projects in Situations of Urgent Need of Assistance or Capacity Constraints and would therefore benefit from the flexibility on procurement methods and applicable thresholds among others. 66. The World Bank team undertook a rapid procurement assessment of the five entities involved in implementation of the procurement activities (MEF/DFM, AGETIPE, AGEROUTE, SOS Sahel and CARE Mali) in line with the Simplified Procurement Procedures under OP10.00 – Guidance to World Bank Staff in Situations of Urgent Need of Assistance or Capacity Constraints, dated April 2013. In addition to AGETIPE and AGEROUTE for Component 1, other agencies, including AGETIER, may be selected as MODs, on the basis of appropriate selection methods in alignment with the emergency nature of the project, and subject to meeting eligibility and performance criteria, and fiduciary requirements. Also, in addition to CARE Mali and SOS Sahel, other NGOs may be selected as MODs, on the basis of appropriate selection methods in alignment with the emergency nature of the project, and subject to meeting eligibility and performance criteria, and fiduciary requirements. Procurement under the project will be conducted with the support of the PCU, which will include contracted agencies and NGOs as MOD with technical and fiduciary skills necessary for managing project implementation. 67. World Bank procurement experience in Mali has shown that: (a) significant delays are experienced in procurement processing, with a significant part of the time spent on preparation of tender specifications, Terms of References (TORs); and (b) procurement documents tend to be of poor quality. These experiences have been factored into the design of procurement arrangements. 68. The overall procurement risk for the proposed project is considered Substantial. In order to mitigate the risks identified in the fiduciary assessment, an action plan was prepared, in consultation with the client (see Annex 3). With the implementation of the proposed measures of the action plan and the support of World Bank team, the overall procurement risk rated Moderate. E. Social (including Safeguards) 69. Mali is facing a complex set of constraints post-crisis: conflict and insecurity in the North with large number of IDPs and refugees, absent or strained essential public services, disrupted production systems in the North and competition for scarce resources in the South especially in host communities, and increasing social tensions taking on ethnic hues. The project interventions for rehabilitating priority infrastructure to enable service delivery and for allowing the resumption of productive activities are aimed at addressing these key constraints. In order to address fraying social cohesion and poor government credibility, the community engagement approach brings PLGs and communities to work together. The approach entails the inclusion of vulnerable groups including women, youth, displaced, female headed households, and ethnic minorities and their informal groups to overcome social and cultural barriers to participate in priority setting for infrastructure rehabilitation. Careful screening of conflict risks while prioritizing project investments (for both Component 1 and 2) will be undertaken to address 21 conflict issues like avoid elite capture, reduce conflict between pastoralists and agriculturists over land and water, and avoid exclusion of social groups from accessing social services (detailed implementation will be described in the Project Implementation Manual). 70. A Community Committee (CC), with representation from LGs, community association, vulnerable groups and civil servants, will lead the identification of CBOs and individual households that will benefit from productive inputs from the project, based on predetermined criteria. The selection of CBOs will aim at reaching a large deserving population in reengaging with agriculture, animal husbandry and allied activities. Individual resource and asset-poor households especially landless, artisans, crafts persons and petty traders, will be supported to restore their assets and restart productive activities. Women, who are key actors in agriculture and basic commodity trade, and are responsible for family nutrition, health and children’s education, will be an important focus of the project to not only enhance the resilience of their families but also the community as a whole. 71. In the context of trust and governance deficits in Mali, and an environment that is rife with elite capture, non-responsiveness and impunity of both administration and elected representatives, the project seeks to engage the PLGs, deconcentrated technical services of the central government, and communities in project processes. Greater engagement of PLGs with communities, transparent processes of infrastructure prioritization and rehabilitation, regular dissemination of information and responsiveness to feedback and grievances from communities is expected to put in place basic elements of improved local governance. These demand-side inputs would potentially reinforce the supply-side capacity building efforts and decentralization that has been underway in Mali. F. Safeguards 72. The activity selection under the project will follow a participatory approach, so negative social impacts of these activities are expected to be limited. However, to address potential negative social and environmental impacts generated as a result of project interventions, a project Environmental and Social Screening and Assessment Framework (ESSAF) has been prepared (see Annex 6) and will be disclosed after Board approval. The Environment and Social Management Plans (ESMPs) prepared for portfolio of projects based on the ESSAF, will guide implementation. 73. OP 4.12 on Involuntary Resettlement is triggered. The project will be implemented following a crisis that resulted in large-scale movement of populations between the North and South. Given the tenuous security situation and the capacity deficit in PLG and civilian administration, the ownership and use of productive land resources could be contentious. Further, project supported activities could potentially impact livelihoods, restrict access and may involve the taking of land, though none of these potential activities are expected to be large or on a vast scale. Given the emergency nature of the project, a Resettlement Policy Framework (RPF) in accordance with OP 4.12 will be drafted, consulted, finalized and disclosed within four months following project effectiveness. The RPF will outline measures to avoid or reduce impacts through appropriate mitigation measures such as compensation and livelihood restoration, where applicable. Resettlement Action Plans (RAPs) will be prepared during activity 22 implementation when required. In the meantime, when necessary and as soon as activity sites are selected and designs of civil works completed, a RAP will be prepared, consulted upon, disclosed and executed prior the commencement of works. G. Environment (including Safeguards) 74. The project is classified category B in regard of the activities to be supported essentially under Components 1 and 2 which will support the investments such as rehabilitation of local infrastructures and development of socio-economic activities. No large scale, significant or irreversible negative impact is foreseen to be induced by the project activities. The negative impacts would be minor and manageable with a minimum of efforts in place. To this end, six safeguard policies have been triggered: OP 4.01 on Environmental Assessment; OP 4.04 on Natural Habitats; OP 4.09 on Pest Management; OP 4.11 on Physical Cultural resources; and OP 4.12 on Involuntary Resettlement; and OP 4.36 on Forests. Since the project is processed under OP 10.00, paragraph 11, the preparation of the environmental and social assessment documents has been deferred. However, an Environmental and Social Screening and Assessment Framework (ESSAF) has been prepared and will be disclosed after Board approval of the project, and a Pest Management Plan (PMP) was developed, approved and disclosed in country and at the InfoShop prior to negotiations. They will serve as the tool for the identification and mitigation of the environmental and social impacts and risks at the early stage of the project implementation. But, the Resettlement Policy Framework (RPF) will be prepared, consulted upon and disclosed publicly both in-country and at the InfoShop within four months following the effectiveness date. Notwithstanding, when necessary and as soon as activity sites are selected and designs of civil work completed, Environmental and Social Impact Assessment (ESIA) or Environmental and Social Management Plan (ESMP) and/or a Resettlement Action Plan (RAP) will be prepared, consulted upon and disclosed prior the commencement of works. In the specific case where a RAP is needed it will be prepared, approved and executed prior the commencement of works. 75. The PCU will be responsible for the preparation and implementation of safeguards instruments under the project. The safeguards specialist of the PCU may seek the collaboration of the national entity in charge of the enforcement of the environmental impact assessment policy and procedures, the National Directorate for Sanitation and Control of Polluters (Direction Nationale de l’Assainissement, du Controle des Pollutions et des Nuisances, DNACPN), for the screening of activities. Local stakeholders (authorities, CSO, beneficiaries and affected groups, etc.) will participate in any consultation throughout the project lifecycle. The PCU recruited Safeguards Specialist will ensure proper implementation, documentation, follow up and reporting of the mitigation measures (screening, execution of specific ESMPs, RAPs) recommended through the instruments (ESSAF, PMP, RPF). A provision of a total amount about US$250,000 is earmarked in the project budget for the implementation of the mitigation measures. The TPM agency responsible for monitoring the implementation progress of Components 1, 2 and 3 will also focus on safeguards implementation and provide feedback to the PCU for necessary action. 23 Annex 1: Results Framework and Monitoring . MALI Reconstruction and Economic Recovery Project (P144442) . Results Framework . Project Development Objectives . PDO Statement: The objective of the project is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. Project Development Objective Indicators Responsibility Cumulative Target Values Data Source/ for Unit of End Methodology Data Indicator Name Core Baseline YR1 YR2 YR3 YR4 Frequency Measure Target Collection Number and Direct project Percentage beneficiaries, of 0 80750 167000 254500 344250 380000 Annually MOD PCU/RA Sub-Type which female Supplemental Local infrastructure rehabilitated under the project Percentage 0 40% 50% 60% 70% 80% Annually MOD PCU/RA functioning one year post rehabilitation 24 Productive assets rehabilitated under the project utilized for Percentage 0 30% 30% 30% 50% 70% Annually MOD PCU/RA economic activities one year post rehabilitation People benefitting from rehabilitated Number 0 77750 155500 234500 317250 350000 Annually MOD PCU/RA local infrastructure People benefitting from rehabilitated Number 0 3000 11500 20000 27000 30000 Annually MOD PCU/RA productive assets . Intermediate Results Indicators Responsibility Cumulative Target Values Data Source/ for Unit of End Methodology Data Indicator Name Core Baseline YR1 YR2 YR3 YR4 Frequency Measure Target Collection Component 1: Rehabilitation of local public infrastructure 1.1.Classrooms rehabilitated and Semi- functional as a Number 0 600 1200 1700 2400 2500 MOD, CPS PCU/RA annually result of project intervention 1.2.Health facilities Semi- Number 0 50 100 150 200 215 MOD, CPS PCU/RA rehabilitated and annually functional as a 25 result of project intervention 1.3.Water supply systems rehabilitated and Semi- Number 0 75 150 250 325 350 MOD PCU/RA functional as a annually result of project intervention 1.4.Temporary Semi- Person days 0 TBC TBC TBC TBC TBC MOD PCU/RA jobs created annually 1.5.Local governments Semi- benefitting from Number 0 30 50 75 90 100 MOD PCU/RA annually rehabilitated local infrastructure Component 2: Support to Productive Investments 2.1.Seeds Semi- procured and Tons 0 50 125 200 275 350 MOD, CPS PCU/RA annually distributed 2.2.Animal feed Semi- procured and Tons 0 750 1200 3000 3800 4230 MOD, CPS PCU/RA annually distributed 2.3.Micro- projects on Semi- Number 0 75 200 400 550 680 MOD, CPS PCU/RA productive assets annually financed 2.4.Micro- projects for Semi- women’s Number 0 30 75 150 200 250 MOD, CPS PCU/RA annually organization financed 2.5.Rehabilitated Hectares 0 300 750 1200 1700 2150 Annually MOD, CPS PCU/RA 26 farm land 2.6.Beneficiaries receiving Semi- Number 0 5000 12500 12500 12500 12500 MOD, CPS PCU/RA emergency annually assistance Componenet 3: Community Engagement and Local Governance 3.1.Participants in consultation activities during Number 0 TBC TBC TBC TBC TBC Annually MOD PCU project implementation 3.2.Participating MOD LGs with revised Percentage 0 NA 75% 80% 80% 80% Annually PCU/RA PDSECs 3.3.Grievance redress NGO mechanism are Percentage 0 NA 50% 60% 65% 70% Annually PCU (TPM) functional at the commune level 27 Table A1. Description of Key Indicators . Project Development Objective Indicators Indicator Name Description (indicator definition etc.) Direct project beneficiaries (number), of which female % Core beneficiaries indicator. The number of people directly benefitting from project activities can be estimated by adding (i) the actual number of local infrastructures rehabilitated multiplied by an estimate of the number of direct beneficiaries per type of infrastructure; and (ii) the number of collective productive assets rehabilitated multiplied by an estimate of the number of people directly benefitting per activity. Local infrastructure rehabilitated under the project The percentage of local infrastructure that was rehabilitated and is functioning one functioning one year post rehabilitation year after rehabilitation. Productive assets rehabilitated under the project utilized The percentage of productive assets that was rehabilitated under the project and is for economic activities one year post rehabilitation being utilized for economic activities one year after rehabilitation. People benefitting from rehabilitated local infrastructure The number of people benefitting from rehabilitated infrastructure can be estimated by multiplying the actual number of local infrastructures rehabilitated by an estimate of the number of people benefitting per type of infrastructure. People benefitting from rehabilitated productive assets The number of people benefitting from rehabilitated productive assets can be estimated from (i) the number of collective productive assets rehabilitated by an estimate of the number of people per activity; and (ii) the number of households benefitting from restored productive assets by an estimate of number of people per household. Intermediate Results Indicators Classrooms rehabilitated and functional as a result of The number of classrooms rehabilitated and functional as a result of project project intervention intervention. Health facilities rehabilitated and functional as a result of The number of health facilities rehabilitated and functional as a result of project project intervention intervention. Water supply systems rehabilitated and functional as a The number of water supply systems rehabilitated and functional as a result of project result of project intervention intervention. Temporary jobs created The number of days and persons directly employed in the rehabilitation of local 28 infrastructure and productive assets – targets will be calculated based on estimates of person days that will be employed per type of infrastructure. Local governments benefitting from rehabilitated local The number of local governments benefitting from rehabilitated local infrastructure, infrastructure disaggregated by type and local government. Seeds procured and distributed Tons of seeds procured and distributed under the project. Animal feed procured and distributed Tons of animal feed procured and distributed under the project. Micro-projects on productive assets financed Number of micro-projects on productive assets financed under the project. Micro-projects for women’s organizations financed Number of micro-projects for women’s organizations financed under the project. Rehabilitated farm land improved Hectares of farm land rehabilitated under the project. Beneficiaries receiving emergency assistance The number of beneficiaries can be estimated by multiplying the number of households receiving emergency assistance by an estimate of the number of people per household. Participants in consultation activities during project The number of participants is calculated by estimating participation based on implementation population of LGs to be targeted in different years, and disaggregated by gender. Participating LGs with revised PDSECs Percentage of PLGs with revised PDSECs that reflect community priorities. Grievance redress mechanism are functional at the Percentage of project communes in which Focal Points are identified, trained and commune level maintain grievance registers. 29 Annex 2: Detailed Project Description MALI: Reconstruction and Economic Recovery Project Component 1: Rehabilitation of local public infrastructure (US$50 million) 1. This component aims to rehabilitate local public infrastructure in targeted areas to allow for the resumption of services and economic activity in the areas of Mali affected by the crisis. These local public infrastructures existed before the crisis and were in service. However, they were either damaged or being over utilized as a result of the crisis. In order to restore or improve the pre-crisis accessibility to basic services, the component will support the rehabilitation and goods needed for the functioning of schools, health centers, water and sanitation systems, transport and trade facilities, energy and other local public infrastructure. Local governments, deconcentrated agencies, and local communities will be fully implicated in the identification and implementation of the infrastructure rehabilitation (to be supported under Component 3). The infrastructure benefiting from rehabilitation under this component will be that under the purview of local governments to respond to the immediate needs of communities in the targeted areas. In addition, the works will be implemented using as much as possible a labor-intensive approach in order to provide revenues to the local population. 2. The rehabilitation of local public infrastructure will also allow for the return of the displaced populations to their communities of origin. Moreover, it will halt deterioration of service delivery and social indicators, and provide an approach to support community needs while promoting better governance at commune level (to be supported under Component 3). By implementing activities under Component 1, the expected results are as follows: • The basic services are available to the local population; • Markets are accessible to the local population; and • Temporary jobs and revenues are provided to the local population in order to better improve their life conditions and stimulate the local economy. Targeted areas and resource allocation 3. Component 1 will intervene in both North and South areas of the country in a total of 149 local governments. The North is understood as areas of the country that had been occupied during the conflict while the South encompasses hosting communities of displaced people from the North as a result of the conflict. The component will intervene to rehabilitate infrastructure that is under the purview of local governments, both urban and rural, which has been the primary target of destruction and pillage during the crisis. Hence, based on the assessments available, 149 LGs could potentially benefit from the project, including 134 in the North and 15 in the South. 4. The 134 beneficiary LGs in the North are as follows: • Region of Timbuktu (52 LGs in five cercles), Gao (24 LGs in four cercles), and Kidal (11 LGs in four cercles); • Cercles of Douentza (15 LGs), Tenenkou (10 LGs), Youwarou (7 LGs) and Mopti (3) in the region of Mopti, hence a total of 35 LGs; and 30 • Cercle of Niono (12 LGs) in the region of Segou. 5. The 15 beneficiary LGs in the South are those having received from the North displaced populations amounting to at least 5,000 people (size of small town based on human settlements classification in Mali) or 5% of their own population (underlying potential pressure on existing services and employment opportunities as result of hosting concentrations of displaced from the North). These criteria have been set to foster concentration of project interventions and increase the potential for impact in Southern targeted areas. Hence, fifteen (15) LGs have been identified in the South as potential project beneficiaries including: • Regions of Koulikoro (2 LGs); Segou (5 LGs) and Mopti (2 LGs); • Bamako District (6 LGs). 6. Given the scope of the needs and the fact that other donors are planning to intervene in the regions, the project will coordinate activities closely with other similar interventions through the Coordination Committees at LG, cercle and regional levels that are supported under Component 3 to avoid duplication and crowding of activities. The implementation of infrastructure rehabilitation activities in specific LGs will take into consideration the following criteria: • The presence of the civilian administration and services personnel, including teachers, health workers, etc., so that the infrastructure being rehabilitated results in tangible benefits to the local populations; • The level of security and accessibility of the area. 7. In addition, the project will use a comprehensive approach to support the rehabilitation process by providing resources (in the form of goods) for school, health centers, water and sanitation, transport facilities rehabilitation, so that infrastructure facilities can be fully operational. 8. An indicative per capita allocation sets the maximum amount each LG will receive under Component 1. This indicative maximum per capita amount will ensure transparency in the allocation of resource across LGs under Component 1 as it is based on the estimated population and number of displaced people in the targeted LGs. Based on preliminary estimates, the targeted LGs in both the North and South will receive a maximum per capita funding of approximately US$18 13 for Component 1 during the duration of the project, including resources allocated for the Priority Investment Program and for subsequent priorities identified in PDSECs. Assessment and validation of needs 9. Post crisis assessments conducted by the government and international aid agencies indicate that local public infrastructures have been systematically damaged or destroyed in the northern part of Mali, as well as in some areas of the Segou and Mopti regions. Local public infrastructures affected include schools, health centers, water and sanitation systems, and 13 This per capita amount is indicative only and reflects the maximum amount to be allocated to a LG during the lifetime of the project. It is calculated based on the total amount of funds available for investments under Component 1 divided by the population of the targeted LGs. For LGs in the South, the total maximum amount per LG will calculated based on the number of displaced people. 31 electricity, transport and trade facilities. The crisis has also destabilized basic services and production means in the South where IDPs have strained the ability of existing infrastructure to cope with an increased demand even though without discontinuity in service delivery. Activities eligible to project financing 10. Hence, project activities will include (i) rehabilitation and equipment of schools; (ii) rehabilitation and equipment of health centers; (iii) targeted support to operation of schools and health centers; (iv) rehabilitation of water supply systems; (v) rehabilitation and cleaning of drainage structures, including collection of garbage likely to clog such structures; (vi) rehabilitation of electricity facilities; and (vii) rehabilitation of roads and transport facilities. The table below summarizes per sector the types of activity that could be financed under the project as well as the estimated costs. Table 2.1: Typology of activities and initial cost estimates per sector Total cost Sector Activities (US$m) Rehabilitation and equipment of primary and secondary Education 16.7 schools and support to operation Rehabilitation and equipment of health centers and Health 14.3 provision of essential medicines. Rehabilitation of road structures (small bridges, culverts, Transport etc.) and spot improvements; rehabilitation of transport 9.5 equipment including river wharves. Rehabilitation of water supply systems, including wells Water 2.4 and drills equipped with hand-pumps Energy Rehabilitation of local electricity facilities 3.7 Rehabilitation and cleaning of drainage canals and Sanitation 3.4 collection of garbage Total 50.0 11. The total cost of Component 1 is about US$50 million of which about US$12 million is expected to be allocated to the Priority Investment Program. Priority investment program 12. Before completion of a comprehensive needs assessment, an early priority investment program has been identified by the government based on the existing needs assessments with the aim of yielding rapid results on ground at very early stage of project implementation. The early priority investment program will need to be validated at the community level with a quick participatory approach to ensure relevance and pertinence of investments, and will need to respond to a number of criteria. 32 Table 2.2: Priority Investment Program – Needs and costs estimate Estimated Sector Activities Cost (US$m) Rehabilitation and equipment of 2,400 classrooms; 400 blocks of Education 2.7 latrines; 332 wells; school canteens / food for 25,000 students. Rehabilitation and equipment of 15 CSRef and 199 CSCOMs and Health 5.2 provision of essential medicines. Rehabilitation of 175 wells and 177 drills equipped with hand- Water 2.6 pumps throughout the regions of Timbuktu, Gao and Kidal. Rehabilitation and cleaning of km drains and collection of Sanitation 1.5 garbage in cities in both North and South areas. Total 12.0 13. During project implementation, the confirmation of priority investments will be based on the following criteria: • Security has been restored, and civilian administration has returned to the commune; • The investment has been confirmed as a priority by the community through an inclusive validation process; • In the case of infrastructure for service delivery, staff has been allocated to the facility. Implementation Arrangements and Approach 14. Component 1 will be implemented by Delegated Contract Management Agencies (Maîtres d’Ouvrage Délégué, MODs) that will be supervised by local authorities and the project administration. AGETIPE will be in charge of the infrastructure other than roads and AGEROUTE will be in charge of roads. Other agencies, including AGETIER, may be selected as MODs, on the basis of appropriate selection methods in line with the emergency nature of the project, and subject to meeting eligibility and performance criteria, and fiduciary requirements. 15. Execution of activities under this component will be in two parallel tracks: The first track will finance costs associated with the Priority Investment Program to allow for quick rehabilitation of infrastructure and other related needs. It will cover investments such as, but not limited to, school rehabilitation and equipment to meet the opening of school set for November, health centers equipment, urgent needs on water and sanitation. Activities for this phase are expected to be ruled out over the next 18 months, subject to improved security conditions in all project sites. The second track will be based on PDSECs, which will be updated to take into account the consultation process and the urgent needs of the population. Key requirement for launching these activities include accessibility by implementation agency based on the security situation and the readiness of the elected body of the LG. Each LG in the targeted areas will undergo the planning process (under Component 3) subject to have an elected body in place with the required capacity. 33 Component 2: Support to Productive Investments (US$35 million) 16. Component 2 will provide support for productive investments in the North to redress the impacts of the crisis on communities and households. The objective of the component is to jump- start economic activities and help (i) rural households affected by the conflict to restore their productive assets and reduce food insecurity, and (ii) rural community-based organizations affected by the conflict to re-launch productive activities, with the goal of increasing their income by addressing priority investment needs. Approach 17. This component will build on experience gained through the Rural Community Support Project (Projet d’appui aux communautés rurales, PACR) and will utilize a similar approach. The implementation of the component’s activities will rely on NGOs (or MODs) - CARE Mali and SOS Sahel – to be supervised by the PCU. Working in close collaboration with the deconcentrated agencies of the national government, the MODs will provide advice and support to community-based organizations (CBOs) and households for the identification and implementation of investments. 18. Project activities will be designed to provide a combination of emergency relief and medium-term recovery through support to collective productive activities and restoration of household productive assets. Support will be provided under two sub-components: Sub- component 2.1 – Immediate restoration of household productive assets; and Sub-component 2.2 - Collective productive activities. 19. The resource envelope per local government in Component 2 will also be made based on a per capita funding formula. Based on preliminary calculation, the targeted LGs in the North will receive a maximum per capita funding of approximately US$13 14, including resources allocated for both sub-components. Target beneficiaries 20. For the activities to be financed under sub-component 2.1, selection of beneficiaries will be based on a community-based consultation process led by the NGOs (or MODs) that have a proven record of their capacity to deliver large scale service on a timely manner, with input provided by government technical agencies, producer organizations, and local producer organizations Beneficiaries will be selected on the basis of three key criteria (i) household size and gender of household head, deemed the most vulnerable; (ii) land area cultivated; and (iii) wealth as reflected in livestock holdings (poultry, small ruminants, cattle). The targeting criteria and selection method will be spelled out in detail in the project implementation manual (PIM). 21. In Sub-component 2.2, financing for collective productive activities will be made available to eligible producer organizations, and women’s groups and youth groups in the 14 This per capita amount is calculated based on the total amount of funds available for investments under Component 2 divided by the population of the targeted LGs. 34 targeted communities. Eligibility will be based on well-defined criteria (e.g., existence for a minimum number of years, organizational capacity, governance arrangements, participation of women and youth, demonstrated history of providing services to members, assets) using a participatory targeting process that will be led by the NGOs to be engaged under Component 3. This process consists in: (i) convening village assemblies to identify local development priorities; and (ii) selecting beneficiaries to participate in the project (producer organizations and women’s groups) based on well-defined criteria complemented by the villagers own rankings and perceived needs. The targeting criteria and selection method will be spelled out in detail in the PIM. Sub-component 2.1 – Immediate restoration of household productive assets (US$5 million) 22. This sub-component is aimed at restoring the productive assets of targeted vulnerable households through improving access to seeds, fertilizers, animal feed, small ruminants and small equipment procured by the MOD in consultation with communities. Taking into account the ongoing interventions of the government and donors to mitigate the crisis, in the first year of implementation this component will include support for the purchase of seeds and animal feed for distribution to farmers/herders to enhance domestic food production capacity. Free distribution of agricultural inputs in the 2013-14 growing season will be sufficient to plant approximately 220 hectares, including 200 hectares of planted rice and 20 hectares of planted vegetables. Assuming normal implementation conditions, this is expected to lead to production of an additional 1,000 tons of rice. The animal feed to be distributed in the first year of implementation will be sufficient to keep alive approximately 13,000 heads of animals (sheep, goats, and cattle). To ensure that the productive assets can be distributed in a timely manner, a range of standard inputs, procured by the MOD, will be offered to beneficiary households. This component will also support the provision of training and extension services, as beneficiaries will receive instruction in the proper use of the inputs. The training and extension services will be delivered by public agencies and NGOs. Sub-component 2.2 – Collective productive activities (US$30 million) 23. The sub-component will support existing local Community-Based Organizations (CBOs) with legal status to finance productive investments proposed by them. CBOs will be selected to ensure that women, youth and vulnerable minorities are well represented both in their primary membership and in leadership roles. The sub-component will cover the following types of investment: (i) rehabilitation or construction of infrastructure for agricultural production activities, such as village small irrigation systems (petite irrigation villageoise), of about 1,500 hectares, village vegetable systems (petits perimetres maraichers) of about 120 hectares, and 100 hectares of oasis, 20 storage facilities, and small processing units; (ii) re-launching of livestock and fishery activities, including restocking through the provision of 6,000 livestock kits, and about 4,320 MT of animal feed; rehabilitation of 30 water points, regeneration of 1,000 hectares of pasture land and 100 vaccination and marketing facilities, 16 livestock sales points and 100 milk collection centers; and (iii) income generating artisanal activities, including small shops and craft facilities with the provision of kits. 35 24. To complement the investments above, enhance sustainable management of land and water resources and support protection of vulnerable ecosystems, this sub-component will also rehabilitate 1,500 hectares of tree plantation and the planting of 300,000 trees for live fence. Implementation arrangements 25. Both Sub-component 2.1 and Sub-component 2.2 will be implemented under delegated management contracts by experienced NGOs (MODs) - CARE Mali and SOS Sahel. In addition to facilitating community engagement and local governance, the MODs will also (i) lead community-based consultations to identify the beneficiary households under Sub-component 2.1 and the beneficiary CBOs under Sub-component 2.2, (ii) establish through a participatory process the investments to be financed under each Sub-component, and (iii) procure and deliver the agreed goods and works. In addition, the MODs will complement physical investments with capacity building activities designed to improve the effectiveness of producer organizations. Component 3: Community Engagement and Local Governance (US$10 million) 26. This component aims to facilitate and strengthen the engagement of communities and the Participating Local Governments (PLGs) in the planning, prioritization and oversight of local development activities, and putting in place elements of local governance. The component will therefore support more inclusive and participatory needs identification, prioritization, implementation oversight and accountability processes so as to support elements of social cohesion and local governance. The process of community mobilization will have a particular focus on vulnerable social groups (including women, youth, disabled, displaced, returnees, and minority ethnic groups) and potential benefits to them. 27. Key elements that will facilitate and encourage key stakeholders participation in the project are clearly defined project processes, assignment of roles and responsibilities, transparency and accountability arrangements, and periodic monitoring. The PIM will detail these aspects including guidelines for community and PLG engagement. Commune Implementation Cycle 28. An information campaign, designed and led by the PCU will facilitate the dissemination of key features of the project and the processes to all stakeholders at the national, regional and commune levels to engender participation of relevant stakeholders. At the community-level, the MODs will play a major role in ensuring regular information flow. 29. The process of identification and prioritization of essential infrastructure for rehabilitation at the commune level is a key activity in mobilizing communities – both those that remained and returnees with a particular focus on the more vulnerable groups like women, youth and ethnic minorities in reaching information and participating in meetings. The process will take on board elements of intra-community divergences/tensions, leadership structure, potential drivers and mitigation measures for local level conflict, as well as vectors of marginalization and vulnerability. In addition, this process is expected to increase sensitivity among all stakeholders of needs and vulnerability, and potential conflict drivers; so as to promote greater social cohesion with facilitated dialogue. 36 30. This will involve a careful assessment of the crisis related damage to infrastructure, the demographic characteristics and development priorities of the resident and returning households at the village level. Potential sources of conflict and opportunities for mitigation will also be important considerations in the identification process. Careful screening of conflict risks while prioritizing project investments (for both Component 1 and 2) will be undertaken to address conflict issues like avoid elite capture, reduce conflict between pastoralists and agriculturists over land and water, and avoid exclusion of social groups from accessing social services (details in PIM). The village-specific priorities will be discussed at the commune level while revising the PDSEC and prioritizing activities. At the CCOCSAD meeting, the validation of the PDSEC will entail an alignment with the sector administration plans, and other agencies’ plans and sources of funding; in order to avoid any duplication or double dipping. 31. The process of identifying Community-Based Organizations (CBOs) Livelihood Associations for support as also vulnerable households for individual benefits will be based on the arrangements proposed under the Mali Emergency Safety Nets Project. The proposed project will constitute a Community Committee not just of civil servants but also elected representatives and community to include women, youth and the displaced, for the identification of (i) inclusive and functional livelihood associations and (ii) individual vulnerable households for livelihood support. The eligibility criteria for producer associations/organizations and women and youth’s groups in the targeted communities will be based on well-defined criteria namely existence for a minimum number of years, organizational capacity, governance arrangements, participation of women and youth, demonstrated history of providing services to members, and asset holding. The identification of individual households to be supported with productive assets will be based on a set of criteria like female headed households with large families, landless, and poor craft and artisan households. More details will be provided in the PIM. Key activities envisaged under the component are set in Table 2.3. Table 2.3: Community Engagement Activities Phase Activities Participants Responsibility Prerequisites Outcomes Information Regional and Administration RA with MOD Communicatio Stakeholders aware dissemination Commune level staff, elected n strategy and of key messages, meetings representatives, material project objectives, processes, sector finalized respective roles and department Regional responsibilities, staff, Social expected project CROCSAD, Development outcomes Officers and CLOCSAD and Commune CCOCSAD Facilitators representatives, recruited and civil society, oriented/traine community d by MOD Village/Fraction MOD – Community aware level meetings Community Commune Village of project processes, Resource their role, criteria including Coordinator Persons for investment women, youth, (CC) and 37 Phase Activities Participants Responsibility Prerequisites Outcomes displaced, Village identified and decisions ethnic Resource oriented minorities, Person (VRP) Village Council Village-level Village meeting to All households MOD – CC Methodology Demographics of identification enumerate in a village and VRP and formats the village including of demographic especially for school age children, infrastructure details including women, youth, information Displaced and for returnees, CBOs ethnic minority recording returnees, rehabilitation presence and households and finalized by Incidences of intra- infrastructure status IDPs MOD village conflict, post crisis Status and functionality of Infrastructure -- crisis-related damage, presence of service providers, Priority infrastructure for rehabilitation, and Status and functionality of CBOs and livelihood associations Revision of Orientation of Commune MOD Criteria for Revised PDSEC PDSEC Commune Council Council prioritization to the process and members, of investments criteria for community finalized and prioritization and members from issued aggregation the villages Finalization of Commune level priorities based on village-level information. Revision of 38 Phase Activities Participants Responsibility Prerequisites Outcomes PDSEC reflecting post-crisis priorities Validation of Alignment of CCOCSAD MOD – CC, Commune List of infrastructure PDSEC proposed priorities members Regional allocation for rehabilitation with sectoral representing Social defined with arrangements investment plans PLGs, Development for utilization, Assurance from Administration, Officer MOD operations and concerned sectoral Sector contracted maintenance agreed departments on departments, with community and staff assignment civil society and Commune and recurring other Administration. expenditure community Final list of representatives infrastructure for rehabilitation under the project Finalization Identification of CBOs, Sector MOD Eligibility List of CBOs to be of CBOs and CBOs at the staff, Commune criteria for supported finalized. action plans commune level, Council and Livelihood for based on village CCOCSAD Associations Validated Action productive level data. finalized and plan for inputs for investments disseminated. each CBOs agreed Ensure inclusive and provided to membership with Number to be concerned agency. inclusion of poor supported per Validation of and vulnerable Commune action plans members; clarify decided by CCOCSD Management responsibility; List of ensure legal Status productive by registration with inputs for appropriate different authority livelihoods finalized. Finalize action plan for type and quantity of inputs for each CBO Finalization Constitution of Sector staff, MOD Eligibility List of Vulnerable of Vulnerable Community Commune criteria for Households for Households Committees and Council and beneficiaries Individual benefits and proposal, orientation to CCOCSAD finalized and Validated Commune for individual members communicated proposal for benefits Finalization of Number of productive inputs 39 Phase Activities Participants Responsibility Prerequisites Outcomes eligible households beneficiaries for each of the Validation by based on village- per commune beneficiary CCOCSAD wise information clarified households, for Proposal with Productive implementation by agreed inputs to inputs for identified agency each of the different identified trades/crafts household identified Implementati Constitution of a 5 Commune MOD Information on Infrastructure on oversight member Council, MOD, Design rehabilitation of project Community Communities and completed on Oversight interventions Implementatio schedule Committee with representatives n schedule and activities Productive inputs from Commune Council, women, available distributed in a and youth timely and equitable Action plan manner to members and of CBOs, and these implementatio are utilized by the n schedule for beneficiaries Productive inputs for Individual CBOs and beneficiaries have individual accessed productive beneficiaries inputs, have utilized available productive inputs and have started economic activities 32. The institutional and administration arrangements at the various levels in the context of Component 3 are described below (Figure 1). 40 Figure 1: Relevant institutions for community engagement 33. At the local government (commune) level, the Community Council will play an active role in prioritizing investments at the commune level based on village-level proposals, and will be open to interested residents. This will then feed into the revisions to the PDSECs. The validation of these PDSECs by the CCOCSAD will help bring together the PLGs, administration, sector departments, civil society and communities, and will facilitate an alignment of project investments with government, donors and NGO planned/implemented activities. The PDSEC is also expected to provide the framework for activities by government, NGOs and donor agencies operating in particular regions and communes. Similar approach will be followed for the identification of Livelihood Associations and individual households, and provision of productive inputs. 34. Component 3 will be executed by two NGOs - CARE Mali and SOS Sahel under a Delegated Contract Management (Maître d’Ouvrage Délégué, MOD). The PCU will contract these NGOs who will be responsible for designing the modalities of the community engagement approach to support both Component 1 and 2, incorporating the peculiarities of operating in the North and South, and facilitating implementation with necessary regional level arrangements. The NGOs have proven relevant Malian experience especially of the North, capacity to operate at scale and in partnership with the civilian administration and local governments, and a keen understanding of the inherent social, conflict and institutional dynamics that will underpin implementation. Community monitoring and oversight 35. PLGs and community will be supported to play an important role in the monitoring and oversight of implementation of infrastructure rehabilitation and productive investments, to ensure timeliness and quality of infrastructure implementation, and to track the utilization of 41 productive inputs provided to CBOs and individual beneficiaries. For this purpose, commune level stakeholders especially community will be provided information on the implementation arrangements for all investments, the design and schedule for infrastructure rehabilitation, nature, quantum and schedule for provision of productive inputs to associations and individual households. In addition, a five (5) member Community Oversight Committee will be established at the Commune level specifically tasked to periodically monitor project implementation and provide observations to the Commune Council and Communities. This will help establish accountability mechanisms between PLGs, citizenry and administration. In addition, an accessible and responsive feedback and grievance mechanism will provide an independent avenue to address grievances relating to the project to ensure the integrity and responsiveness of decision-making and resource management. Figure 2 provides a schematic of the GRM. 36. Another key aspect under community based monitoring is ensuring regular dissemination of project progress and achievements to all stakeholders, especially communities through various traditional and modern means, in addition to scheduled forums and meeting. The PCU will contract a separate NGO to provide Third Party Monitoring (TPM) of critical activities, processes and results under both Component 1, 2, and 3, with the active involvement of communities and PLGs. Periodic reports on key lessons learnt, systemic issues in project implementation, suggestions for potential changes in project processes, etc. would be provided to the PCU for necessary action. 37. In the event of deteriorating security in the North that will constrain the ability of project staff to oversee implementation, the MODs contract could be suitably restructured to allow for a greater role for them in implementation of investments. A greater reliance will be put on TPM to ascertain the implementation progress. 42 Figure 2: Key elements of a Grievance Redress Mechanism Component 4: Project management, monitoring and evaluation (US$5 million) 38. This component will support project management, including coordination of activities, communication, procurement, financial management and safeguard functions, as well as monitoring and evaluation. The component will finance the Project Coordination Unit (PCU) to assist with its day to day project management responsibilities. Project management will include consolidation of work plans and budgets, progress reports, monitoring and evaluation, communications and outreach, and overall oversight of project activities. It will oversee adherence to procurement and safeguards requirements as well as financial management and reporting. In particular, the PCU will ensure that the Delegated Contract Management Agencies (Maîtres d’Ouvrage Délégués, MODs) for Components 1, 2 and 3 execute activities according to the agreed terms of contract. This component will rely on three (3) regional implementation units (regional antennas, RAs) for coordinating project activities, working closely with government entities at regional, cercle and local government (commune) levels within their regional boundaries. The component may also contract an independent agency (an NGO) to support the monitoring of the implementation of Components 1, 2, and 3, including safeguards 43 implementation, with the active involvement of communities and PLGs. The TPM could take on larger responsibilities, should security deteriorate in some project sites. Component 5: Contingent Emergency Response 39. This component, known as the Contingent Emergency Response Component (CERC), will be available should the need arise to redirect project resources freed up by a future restructuring of the project or other Bank projects in the Mali portfolio. Such resources would be made available to finance emergency response activities and to address crisis and emergency needs. An Immediate Response Mechanism Coordinating Agency and expenditure management procedures will be defined in an Immediate Response Mechanism Operational Manual (IRM/OM), to be prepared separately and approved by the Bank, in line with the flexibility provided in OP 10.00, paragraph 11. In case this component is utilized, the project will be restructured to allocate financing, complete the PDO and related indicators, and detail implementation arrangements. 44 Annex 3: Implementation Arrangements MALI: Reconstruction and Economic Recovery Project Project Institutional and Implementation Arrangements Arrangements at national level 1. The Ministry of Economy and Finance (MEF) will be the government entity directly responsible for project implementation. In particular, MEF will be responsible for overall coordination and supervision of project activities. A Project Steering Committee (Comité d’Orientation et de Pilotage, COP) will be established and chaired by the Minister of Economy and Finance, seconded by the Minister of Local Government as vice-chair. The COP’s principal functions are to: (a) provide the project with overall guidance, (b) facilitate coordination of project operations, and (c) ensure coherence between the project, other Government of Mali (GoM) and similar donor-supported programs in support of reconstruction and economic recovery. Other members of the COP will comprise representatives of, inter alia, Ministry of National Education, Ministry of Health, Ministry of Environment and Sanitation, Ministry of Rural Development, the Ministry of National Reconciliation and Development of the Northern Regions, local governments (LGs), and civil society. 2. A Project Coordination Unit (PCU) is to be established within the MEF to assist with its day to day project management responsibilities. It will assure the secretariat for the COP. It will be responsible for following up on the implementation of COP recommendations and decisions. The PCU will be led by a Project Coordinator and will be staffed by (i) a financial management specialist, (ii) a procurement specialist, (iii) an infrastructure specialist, (iv) a monitoring and evaluation (M&E) specialist, (v) a community mobilization and conflict prevention specialist, and (vi) a safeguards specialist. Its management responsibilities will include recruitment of MODs, consolidation of work plans and budgets, progress reports, monitoring and evaluation, communications and outreach, and overall oversight of project activities. The PCU will have the overall financial management responsibility for project implementation. It will oversee adherence to procurement and safeguards requirements. It will have primary responsibility for implementing the project as a whole. In particular, it will ensure that the Delegated Contract Management Agencies (Maîtres d’Ouvrage Délégués, MODs) for Components 1, 2 and 3 execute activities according to the agreed terms of contract. Until the PCU is fully established and to help expedite project implementation, project management responsibilities will be carried out by the PCU of the on-going Governance and Budget Decentralization Project. Transfer of responsibilities between the two PCUs will be managed carefully to avoid disruption of activities and potential delays. 3. The PCU will be relying on three (3) regional implementation units (regional antennas, RAs) for coordinating project activities, working closely with government entities at regional, cercle and local government (commune) levels within their regional boundaries. Specifically, the RAs will consolidate regional level work plans, budgets and progress reports to be made available to the PCU. Each RA will be staffed by (i) an infrastructure/local development specialist; (ii) a specialist in local governance and capacity building; and (iii) an accountant. To that end, the PCU/RAs will work closely with the MODs for Component 3 (the same as for Component 2) to support the strengthening of capacities of various stakeholders, including 45 Participating Local Governments (PLGs), community-based organizations (CBOs) and deconcentrated technical services of the central government to engage in the activities being undertaken under the Components 1 and 2. Eventually, PCU/RAs will support the PLGs and CBOs for validation of implementation reports and subsequent requests of final payment issued by the MODs. Implementation Arrangements for Component 1 4. Component 1 will be executed by at least two MODs which will ensure that the project is implemented according to the priorities identified and validated by PLGs in consultation with communities, including the Priority Investment Program, in the areas of interventions of the project. Because of the emergency nature of this project and the requirements for rapid results in a context of weak capacities at both central and local levels, PLGs will delegate the implementation of project activities to MODs. Nevertheless, each PLG in consultation with communities will be responsible for annual planning and oversight of investments related to local public infrastructure (Component 1). Planning will involve community and public participation to identify priorities for the project. PLG councils, with support from RAs and MODs under Components 2 and 3, will revise their existing PDSECs and have them validated by the respective committees for oversight, monitoring and coordination of development programs. These committees bring together local government officials, civil society and representatives of the deconcentrated technical services of the central government and are a core element of Mali’s decentralization institutional framework. They are established at the local government level (CCOCSAD), at the cercle level (CLOCSAD) and at regional level (CROCSAD) to ensure coherence of proposed investments with sector policies at each level of government. 5. The following two agencies have been initially proposed as MODs for the Component 1: AGETIPE for infrastructure investments, and AGEROUTE for road investments. The two MODs were selected based on their expertise and experience, following a technical and fiduciary assessment. Other agencies, including AGETIER, may be selected as MODs for the Component 1 subject to meeting eligibility and performance criteria, and fiduciary requirements. The MODs to be contracted under Component 2 and 3 in coordination with RAs will support PLGs, CCOCSADs, CLOCSADs, and CROCSADs to effectively fulfill their mandates in support of Component 1 and in line with the laws and regulations as set forth in the decentralization framework. Two delegated management contracts will be signed between MEF and AGETIPE and AGEROUTE to clarify roles and responsibilities, and performance criteria, describe financial management and disbursements arrangements, and prepare detailed action plans and budgets covering outputs and outcomes to be achieved over the duration of the contract. The MODs will ensure that the project is implemented according to the priorities identified and validated by PLGs in consultation with communities, including the Priority Investment Program, in the areas of interventions of the project. 6. In the event access to some targeted areas remains constrained for security reasons, alternative implementation arrangements will be put in place which might include the recruitment of a dedicated MOD to undertake infrastructure rehabilitation as well as community participation and capacity building activities in those areas. 46 Implementation arrangements for Component 2 7. Two first NGOs have been proposed as MDOs for implementation of Component 2 – CARE Mali and SOS Sahel. Other NGOs may be selected as MODs for the Components 2 and 3 subject to meeting eligibility and performance criteria. In support of project implementation, the MODs will work closely with PCU/RAs to support CBOs which will receive targeted support. With regard to support to productive activities (Component 2), MODs will be responsible for planning and implementation of activities in coordination with PLGs in project areas. Because of the emergency nature of this project and the need for rapid results in a context of weak capacities at community level, PLGs will delegate the implementation of project activities to MODs. Nevertheless, planning of activities will be relying on appropriate participatory approaches and will provide inputs to inform, as needed, revisions of PDSECs at local government level and further endorsement of such revised PDSECs by the relevant coordination committees (CCOCSADs, CLOCSADs and CROCSADs). Delegation of procurement and implementation functions will be spelled out in clear conventions to be signed between the PCU and two MODs. 8. In the event access to some targeted areas remains constrained for security reasons, alternative implementation arrangements will be put in place which might include the revision and expansion of MODs responsibilities under Component 2. Implementation Arrangements for Component 3 9. The two MODs initially hired by the PCU to implement Component 2 – CARE Mali and SOS Sahel - and any other NGO that may be further selected will also support implementation of Component 3. The MODs will support PLGs and coordination committees to perform their assigned responsibilities (under Mali’s decentralization framework) and to ensure community participation and engagement Component 3 throughout project implementation. They will be in charge of strengthening capacities of local development actors, including the PLGs, the diverse committees mentioned above as well as CBOs involved in project activities. This will entail, as needed, timely revisions of PDSECs and identification of priority activities for both Components 1 and 2. 10. The contractual arrangements with the proposed MODs will clearly state their responsibilities, timeframe for implementation of activities and reporting mechanisms. Performance criteria will also be included in the agreements to be signed with MODs, and a review of MODs performance will be undertaken, to be aligned with implementation of the Priority Investment Program. Implementation Arrangements for Component 4 11. Component 4 will be executed by the PCU (see description of PCU responsibilities above). The PCU will contract an independent agency (an NGO) to undertake Third Party Monitoring (TPM) of Components 1, 2, and 3, with the active involvement of communities and PLGs. The TPM of different processes and results will be undertaken on a quarterly basis to (i) ensure transparency and compliance with principles of inclusion and capacity; (ii) gather feedback from communities and beneficiaries on their experiences; and (iii) provide additional regular data on project performance and areas for improvements. The TPM agency could take 47 on larger responsibilities regarding overall monitoring and evaluation of project activities, should security deteriorate or access to project sites remain limited. 12. The Coordinating agency for Component 5 as well as expenditure management procedures and institutional arrangements will be defined in an Immediate Response Mechanism Operational Manual (IRM/OM), to be prepared separately and approved by the Bank, in line with the flexibility provided in OP 10.00, paragraph 11. Other arrangements 13. For project Component 1, the MODs will be relying on consultants for technical studies and on contractors for works to be implemented as part of the project. For project Component 2, the MODs will be relying on NGOs for contracting out studies and works in support of project implementation. Conventions will be signed between the MODs and the PCU. The conventions will clearly set forth the performance criteria under which the MODs’ mandates will be fulfilled for effective project implementation. Based on area of intervention, contracts will be signed between the MODs and the concerned NGOs and CBOs. Such contracts, to be acceptable to the Bank, will clearly set forth the performance criteria under which the NGOs and CBOs will operate to contribute to effective project implementation. A review of MODs performance will be undertaken after a period of time to be aligned with the implementation of the activities included in the Priority Investment Program. Project Implementation Manual 14. A Project Implementation Manual (PIM), acceptable to the Bank, and describing all implementation and monitoring and evaluation arrangements, the sequence of project activities and expected implementation schedule and financial management procedures, investment funding mechanism, and procurement procedures for the PCU and under MOD arrangements will be completed before the beginning of activities. The PIM will provide the PCU, MODs, PLGs, NGOs and CBOs with clear guidelines and procedures for planning, budgeting, procurement, contract management, and financial management arrangements. Financial Management, Disbursements and Procurement Financial Management 15. A financial management assessment of the Ministry of Economy and Finance (MEF) which is responsible for the overall coordination and implementation of the project was conducted. The objective of the assessment was to determine: (a) whether the MEF has adequate FM arrangements in place to ensure that the funds will be used for the purposes intended in an efficient and economical manner and the entity is capable of correctly and completely recording all transactions and balances related to the Project; (b) the project’s financial reports will be prepared in an accurate, reliable and timely manner; (c) the entity’s assets will be safely guarded; and (d) the Project will be subjected to auditing arrangements acceptable to the Bank. The assessment complied with the Financial Management Manual for World Bank-Financed Investment Operations that became effective on March 1, 2010 and AFTFM Financial Management Assessment and Risk Rating Principles. 48 16. A financial management assessment was carried out of MEF, which is responsible for the overall coordination and implementation of the project. The objective of the assessment was to determine: (a) whether the MEF has adequate FM arrangements in place to ensure that the funds will be used for the purposes intended in an efficient and economical manner and whether the entity is capable of correctly and completely recording all transactions and balances related to the project; (b) whether the project’s financial reports are likely to be prepared in an accurate, reliable and timely manner; (c) whether project assets can be kept secure; and (d) whether the project will be subjected to auditing arrangements acceptable to the Bank. In addition, the FM capacity of the initially targeted MODs i.e. two agencies (AGETIPE and AGEROUTE) and two NGOs (CARE Mali and SOS Sahel) was assessed to determine whether these entities meet the Bank’s minimum requirements to manage infrastructure rehabilitation and productive investments. In addition to these MODs, other agencies, including AGETIER, as well as other NGOs may be selected as MODs, on the basis of appropriate selection methods in line with the emergency nature of the project, and subject to meeting eligibility and performance criteria, and fiduciary requirements. 17. A PCU and three regional implementation units (RAs) will be established within the MEF and will have the overall financial management responsibility for the project implementation. Given the context of emergency and the need to ensure readiness for implementation, the lack of functionality of some LGs, and the weak capacity at local level, (i) the activities of Component 1 related to infrastructure rehabilitation will be executed by construction managers acting with delegation of the implementation responsibility and (ii) project management responsibilities including financial management will be carried out by the PCU of the on-going Governance and Budget Decentralization Project that has satisfactory FM performance until the PCU of the emergency reconstruction project is fully established and operational. Two delegated management contracts will be signed between MEF and construction managers (initially AGETIPE and AGEROUTE) to clarify roles and responsibilities, describe financial management and disbursements arrangements, and prepare detailed action plans and budgets covering outputs and outcomes to be achieved over the five- year life of the project. 18. Two NGOs (CARE Mali and SOS Sahel) having extensive knowledge of the targeted regions will execute Components 2 and 3 (financing productive investments) and Component 3 (strengthening capacities of local development players and improving the functionality of PLGs). Both of these NGOs have regional antennas in Mopti, and both have experience implementing similar activities in the targeted regions. Two delegated management contracts will be signed between MEF and the two NGOs. The PLGs will play a critical role in ensuring that high priority requests from communities are financed, improving service delivery through the oversight of activities on the ground, and building support and ownership for the project. 19. Adequate numbers of FM staff and functioning FM systems are not yet in place within the PCU. The construction managers initially selected (AGETIPE and AGEROUTE) have executed similar activities for previous Bank-financed operations and are familiar with IDA procedures. However, some weaknesses were revealed during the execution of previous Bank- financed projects, namely the inadequate management of contracts and the lack of quality review and internal or external audit functions. CARE Mali and SOS Sahel have appropriate 49 capacities and experience in supporting similar activities. They have adequate numbers of FM staff, but these staffs are not always familiar with Bank-financed project procedures. To address the FM capacity constraints, the following actions need to be completed to ensure that the implementing units have adequate FM arrangements to take over from the PCU of the on-going Governance and Budget Decentralization Project and handle the activities under the proposed project: (i) recruit a Financial Management Specialist for the PCU no later than three months after effectiveness; and (ii) elaborate the project FM procedures including internal controls, budget process, assets safeguards, and description of roles and responsibilities of all stakeholders no later than two months after effectiveness. 20. As additional dated covenants, the MEF will: (i) recruit a qualified accountant to complete the FM staffing of the PCU (no later than three months after effectiveness); (ii) set a multi-sites accounting software to ensure timely recording of financial information as well as timely production of quarterly and annual financial statements at the PCU (no later than four months after effectiveness); (iii) recruit an internal auditor to carry out quarterly internal control reviews and physical verifications (no later than four months after effectiveness); and (iv) recruit an external auditor (no later than four months after effectiveness). 21. Inefficient service delivery is still perceived as the manifestation of corruption and poor governance. Corruption is acknowledged as an issue in the public sector in Mali and more specifically with decentralized operations. The following measures are incorporated into the project design to minimize the above risk and reinforce citizen oversight: • Social accountability: the project will support the functionality of the institutional framework at the local and regional levels to implement activities aimed at strengthening social accountability in the targeted regions and supporting citizen oversight. The PLGs will ensure coherence of proposed activities with development priorities at each level of government. The PCU and RAs will make all the information related to the project widely available through the local committees (CCOCSAD, CLOCSAD and CROCSAD) in addition to an information campaign to promote transparency and accountability to local communities throughout project implementation. A feedback mechanism will also be set up under the oversight of local governments that would help surround case of improper service delivery; • Internal control: the Bank has been supporting the General Finance Inspectorate (Inspection Générale des Finances, IGF) within the MEF and the General Control of Public Services (Contrôle Général des Services Publics, CGSP) to build their capacities through training on audit methodology, preparing work programs based on risk assessment and the adoption of risk based approach to perform regular ex-post audits in addition to the proposed internal auditor who will be dedicated to the project; • Physical verifications: field visits will be conducted regularly to collect information and monitor implementation progress of various components. 22. The overall risk for the project is rated High due mainly to the complexity of the operation related to the number of stakeholders involved, the context of emergency, the lack of 50 functionality of some local committees, and the limited capacity at the local level. Given that the FM activities will be carried out by the PCU of the ongoing Governance and Budget Decentralization TA Project during the initial months of project implementation, the overall FM residual risk for the project is rated Substantial. It is expected, however, that the financial management arrangements will satisfy the Bank’s minimum requirements under OP/BP 10.00, once the mitigation measures set out in the financial management action plan provided in Annex 3 have been implemented. Financial Management Risk Assessment and Mitigation Country Issues 23. Recent assessments performed by or at the request of the authorities have identified a range of shortcomings in Mali’s Public Financial Management (PFM) system. The 2011 PEFA highlighted significant progress made in comparison with the situation reflected in the 2007 PEFA report. 19 indicators have been upgraded in particular in the areas of budget credibility, comprehensiveness and transparency, policy-based budgeting and predictability in budget execution. Despite these improvements, there are number of critical shortcomings in budget execution processes as well as internal and external controls, which still need to be tackled. 24. In addition, given the findings of the PETS in Education and Health sectors, strengthening service delivery should be a priority to enhance access to services of a minimum quality standard. Several key problems in the area of financial management and control in the sector may contribute to poor service delivery. For instance, the systems of governance, financial control, risk management and performance management are underdeveloped to address key financial management requirements and risks in the social sectors. 25. The table below summarizes the inherent and control risks and mitigation measures proposed. Table 3.1: Financial management risks and mitigation measures (2) Risk Mitigation (3) Residu (1) Risk Risk Rating Measure al Risk Rating Inherent Risks: H S Country: Poor governance The strengthening of public PFM system is weakened by financial management through several key problems in the area of the Governance and Budget financial management and control Decentralization Project is of the decentralized operations that expected to enhance the PFM’s S S may contribute to poor service system to provide timely and delivery. reliable information and improve central and local governance. 51 Entity: Risk remains in terms of A Project Steering Committee coordination due to the will be established and co- involvement of many stakeholders chaired by the main ministers (to facilitate coordination of project operations. Delays on project implementation In support of community related to the complex institutional H participation and engagement, S framework at the local government an experienced NGO will be (commune), cercle and regional hired to strengthen capacities for levels with several committees the local development players. (CCOCSAD, CLOCSAD and CROCSAD). Project: The combination of several Delegated management activities under the responsibility of contracts clarifying roles and different structures and dispersed responsibilities will be spending units increases the concluded before effectiveness. complexity of the project. H S The PLGs will monitor service Lack of adequate oversight of delivery through feedback MODs mechanisms and wide dissemination of project’s information. Control Risks: S M Budgeting: The budget process will be Deviations in budget execution of clarified in the Financial and some components not captured by Administrative manual with a S M the reports clear description of preparation, Variations from budgets not approval, authorization and authorized monitoring processes Accounting: A “multi sites” accounting Delays on the consolidation of software will be purchased and financial information and set up in the PCU and RAs to M M submission of Annual Financial generate useful information and Statements financial statements. Staffing: MEF will appoint a FM officer Lack of adequate FM staff and to be fully dedicated to the relevant experience on Bank management of this project and procedures at the decentralized facilitate coordination and level S financial reporting with MODs. M The RAs will be staffed by three accountants to ensure adequate bookkeeping and cash management at the district level Internal Control and audit: S An external consultant will be S 52 Improper use of the project funds appointed to carry out quarterly due to lack of internal audit internal control reviews and function and weak internal control physical verifications environment at the district level Funds Flow: A Designated Account into Funds may be diverted or used for which funds will be deposited non project eligible purposes. will be opened and managed by the PCU. Delays on the transfer of funds at Bank accounts will be opened the district level by delegated execution agencies S and NGOs. Quarterly M replenishment will be required accompanied by the disbursement and procurement plans and the relevant supporting documents Reporting and Monitoring: Delays on the consolidation of The software will be set up at regional transactions, and on the the PCU and RAs levels and S S submission of agreed IFRs and customized to facilitate annual project financial statements. compilation of accounting information. Auditing: Recruitment of qualified, Inadequate institutional experienced and independent arrangements in place for the M external auditors with TORs M appointment of external auditors acceptable to IDA. Overall Risk: H S H – High S – Substantial M – Modest L – Low Weaknesses of the Financial Management System 26. The project financial management is weakened by the following salient features: • Poor local governance : the local committees are not fully operational; • Lack of adequate FM staff at the PCU and RAs; • Weak capacity at the decentralized level: delays on implementation of activities; • Lack of internal quality review within MODs and inadequate management of contracts that created delays on service delivery; and • Weak internal control environment and lack of internal audit function. Financial Management Arrangements 27. Budgeting arrangements: The budgeting process will be clearly defined in the FM Manual and the budget will be reviewed and adopted by the Steering Committee before the beginning of the year. Annual draft budgets will be submitted to the Bank’s no objection before adoption and implementation. 53 28. Accounting arrangements: The current accounting standards in use in Mali for on- going Bank-financed projects will be applicable. SYSCOHADA is the assigned accounting system in West African Francophone countries. Project accounts will be maintained on a cash basis, supported with appropriate records and procedures to track commitments and to safeguard assets. Annual financial statements will be prepared by the PCU in accordance with the SYSCOHADA. The ROSC Accounting and Auditing identified some differences with the International Accounting Standards but they are not expected to impact the project. Accounting and control procedures will be documented in the updated FM Manual. Internal control and internal auditing arrangements: - Internal Auditing: A consultant will be recruited to perform quarterly ex-post audits. - Internal Control Systems: A FM manual will be elaborated to document the financial management arrangements including internal controls, budget process, assets safeguards, and clarify roles and responsibilities of all the stakeholders. Funds Flow and Disbursement Arrangements Disbursement Methods 29. Disbursements for this project will be transaction based and the disbursement procedures arrangements will be detailed in the manual of accounting, administrative and financial procedures. Replenishments to the Designated Account Reimbursements, based on SOE (Statement of Expenditures), Direct Payments and special commitments will therefore be acceptable payment methods which will be explained in the disbursement letter during negotiations. 30. It is expected the retroactive financing of payments made by the recipient prior to the legal agreement date. The Government of Mali will pre-finance eligible expenditures under Components 1, 2, 3 and 4 to be procured in line with Bank procurement guidelines. The recipient will seek reimbursement payments up to US$4.5 million made in this context upon project effectiveness. Designated Account 31. A Designated Account (DA) will be opened at an acceptable commercial bank to facilitate payment for eligible expenditures. The DA will be managed according to the disbursement procedures described in the Administrative, Accounting and Financial Manual and Disbursement Letter which will be discussed in detail with the relevant government officials during negotiations. The DA would be managed by the PCU in coordination with the General Secretary of the Ministry in charge of the project. 32. Construction managers and NGOs will open bank accounts in order to manage separately funds received from the project. The account will be managed according to the disbursement procedures described in the Administrative, Accounting and Financial Manual and fiduciary arrangements included in agreed delegated management contracts. 54 33. Disbursements to each MOD under the Components 1, 2 and 3 will be subject to: (i) for the initial payment, the MOD has set up adequate staff team comprising, inter alia, a financial management specialist, a procurement specialist, an infrastructure specialist and an environmental and social development specialist; and has opened a dedicated account, all in accordance with the Delegated Contract Management Agreement; and (ii) for all subsequent payments, the PCU has approved a report to the Association stating that the staff team described above has been maintained by the MOD and the activities have been executed in accordance with the Delegated Contract Management Agreement. 34. The first allocation of the Designated Account will cover approximately six months of expenditures. The minimum value of direct payment and special commitment is 20 percent of outstanding advance made to the DA. Funds flow diagram is presented in Annex Financial Reporting Arrangements 35. The PCU will produce quarterly unaudited Interim Financial Reports (IFRs) for the designated account and the related sub-accounts. The IFRs are to be produced on a quarterly basis and submitted to the Bank within 45 days after the end of the calendar quarterly period. The PCU will prepare and agree with the Bank on the format of the IFRs by negotiations. 36. The PCU will also produce the projects Annual Financial Statements and these statements will comply with SYSCOHADA and World Bank requirements. These Financial Statements will be comprised of: • A Statement of Sources and Uses of Funds which recognizes all cash receipts, cash payments and cash balances controlled by the PCU including transactions from regions, and execution agencies and NGOs; • A Statement of Commitments; • Accounting Policies Adopted and Explanatory Notes; and • A Management Assertion that project funds have been expended for the intended purposes as specified in the relevant financing agreements. Auditing Arrangements 37. The Financing Agreement (FA) will require the submission of Audited Financial Statements for the project to IDA within six months after year-end. External auditor with qualification and experience satisfactory to the World Bank will be appointed to conduct an annual audit of the project’s financial statements. A single opinion on the Audited Project Financial Statements in compliance with International Federation of Accountant (IFAC) will be required. The external auditors will prepare a Management Letter giving observations and comments, and providing recommendations for improvements in accounting records, systems, controls and compliance with financial covenants in the grant Agreement. In addition, Audited financial statements of AGETIPE will be required within six months after year end and stated as 55 such in the delegated management contract with AGETIPE. The table below summarizes the auditing requirements. Table 3.2: Audit Requirements Audit Report Due Date Annual audited financial statements and Management Letter for the Within six months after the end project (including reconciliation of the Designated Accounts with of each fiscal/financial year. appropriate notes and disclosures). Annual audited financial statements of AGETIPE Within six months after the end of each fiscal/financial year. 38. The following actions need to be taken in order to enhance the financial management arrangements for the Project: Table 3.3: Financial Management Action Plan Action Date due by Responsible 1 Recruit a FM officer to be fully dedicated Three months after PCU /MEF to the management of the project effectiveness 2 Elaborate a FM manual including internal Two months after PCU/MEF controls, budget process, assets effectiveness safeguards, and roles and responsibilities of the stakeholders 3 Recruit an accountant for the PCU Three months after PCU effectiveness 4 Set up multi-sites accounting software Four months after PCU within the PCU effectiveness 5 Recruit an external auditor Not later than four PCU/MEF months after effectiveness Recruit an internal auditor to perform Not later than four PCU/MEF quarterly ex-post audits months after effectiveness Financial Covenants 39. The Recipient shall establish and maintain a financial management system including records, accounts and preparation of related financial statements in accordance with accounting standards acceptable to the Bank. The Financial Statements will be audited in accordance with international auditing standards. The Audited Financial Statements for each period shall be furnished to the Association not later than six (6) months after the end of the project fiscal year. The Recipient shall prepare and furnish to the Association not later than 45 days after the end of each calendar quarter, interim un-audited financial reports for the Project, in form and substance satisfactory to the Association. The Recipient will be compliant with all the rules and procedures required for withdrawals from the Designated Accounts of the project. 56 Implementation Support Plan 40. Based on the outcome of the FM risk assessment, the following implementation support plan is proposed. The objective of the implementation support plan is to ensure the project maintains a satisfactory financial management system throughout the project’s life. FM Activity Frequency Desk reviews Interim financial reports review Quarterly Audit report review of the project Annually Review of other relevant information such as interim Continuous as they become internal control systems reports. available On site visits Review of overall operation of the FM system Semi-annual for MEF (Implementation Support Mission) Monitoring of actions taken on issues highlighted in As needed audit reports, auditors’ management letters, internal audit and other reports Transaction reviews (if needed) As needed Capacity building support FM training sessions During implementation and as and when needed. Conclusion of the assessment 41. The conclusion of the assessment is that the financial management arrangements will meet the Bank’s minimum requirements under OP/BP10.00 once the mitigation measures implemented. The overall residual risk rating is Substantial. 57 IDA Grant Designated Account PCU/MEF RAs Sub Accounts Delegated management Contracts Suppliers & Providers 58 Procurement Procurement Environment 42. Procurement arrangements for the project have been designed with consideration for the country’s post-crisis situation, the weakness of national procurement rules and procedures, past experience in procurement carried out under other Bank financed projects, and the classification of the Republic of Mali as a high risk country and also fragile state since July 1st, 2013. Reference to National Procurement Regulatory Framework 43. A Country Procurement Assessment Review (CPAR) for Mali was carried out in 2007 and an evaluation of the national procurement system based on OECD/DAC methodology was done in September 2011 under EU funding. The assessment of the procurement regulation highlighted that the existing procurement principles and most of the procedures needed to be strengthened. The current regulation on Public Procurement in Mali is the Decree No. 08-045/P- RM dated August 11, 2008. The focus has progressively shifted from reforming the legal and regulatory framework to focusing on strengthening the procurement capacity and the transparency of the national procurement system. In this regard, the Government has taken the following steps: (i) adopted an action plan based on the finding of the CPAR; (ii) set up a new legal and regulatory framework under the new Procurement Code; (iii) issued procurement regulations and standard bidding documents; and (iv) created a Regulatory body for public procurement and established procurement units in regions and technical ministries, including the ministry of finance. 44. The National Competitive Bidding (NCB) will be acceptable to the Bank subject to the procedures below and as reflected in the Financing Agreement. (a) Using of competitive method: Even though the National Procurement Code does not apply to some small contracts, the procedures will require that for such contracts, a competitive method be used; (b) Advertising: The General Procurement Notice would be advertised in the United Nations Development Business (UNDB) online and on the Bank’s external website, specific invitation to bids would be advertised in at least one national widely circulated newspapers or on a widely used website or electronic portal of the Recipient with free national and international access; (c) Standard Bidding Documents: All standard bidding documents to be used for the Project shall be found acceptable to the Association before their use during the implementation of the Project; (d) Eligibility: No restriction based on nationality of bidder and/or origin of goods shall apply. Foreign bidders shall be allowed to participate in NCB without restriction and shall not be subject to any unjustified requirement which will affect their ability to participate in the bidding process. Recipient’s government-owned enterprises or institutions shall be eligible to participate in the bidding process only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not dependent agencies of the Recipient; 59 (e) Bid preparation: Bidders shall be given at least thirty (30) days from the date of the invitation to bid or the date of availability of bidding documents, whichever is later, to prepare and submit bids; except in cases of emergency declared by the Recipient, and provided that such emergency is recognized by the Association and the Association has given its approval for less time for the bids submission; (f) Bid Evaluation and Contract Award: the evaluation and contract award process of alternative bids would be revised according to Bank’s Procurement guidelines. The criteria for bid evaluation and contract award conditions shall be clearly specified in the bidding documents; (g) Preferences: No domestic preference shall be given to domestic/ West African Economic and Monetary Union the West African Economic and Monetary Union (WAEMU) countries bidders; to domestically/WAEMU area manufactured goods; and to bidders forming a joint venture with a national firm or proposing national sub-contractors or carrying out economic activities in the territory of the Recipient; (h) Fraud and Corruption: In accordance with the Procurement Guidelines, each bidding document and contract shall include provisions stating the World Bank’s policy to sanction firms or individuals found to have engaged in fraud and corruption as set forth in the paragraph 1.16 (a) of the Procurement Guidelines; and (i) Right to Inspect and Audit: In accordance with paragraph 1.16 (a) of the Procurement Guidelines, each bidding document and contract financed from the proceeds of the financing shall provide that: (i) the bidders, suppliers, and contractor and their subcontractors, agents personnel, consultants, service providers or suppliers, shall permit the Association, at its request, to inspect their accounts, records and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the Association; and (ii) the deliberate and material violation by the bidder, supplier, contractor or subcontractor of such provision may amount to obstructive practice as defined in paragraph 1.16 (a) (v) of the Procurement Guidelines. (j) Suspension and debarment: The cases of suspension/debarment under the Recipient system shall result from fraud and corruption as set forth in paragraph 1.16 (a) of the Procurement Guidelines and approved by the Association provided that the particular suspension/debarment procedure afforded due process and that the suspension/debarment decision is final. Use of Bank Guidelines 45. Procurement for the proposed Project would be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated January 2011; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated January 2011, and the provisions stipulated in the Legal Agreement. In addition to complying with IDA’s Guidelines, procurement will also comply with the new procurement Decree. However, in the event of a conflict between IDA Guidelines and the Procurement Law, the regulations of the World Bank will prevail. The various items under different expenditure 60 categories are described in general below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan that will be prepared and agreed during Negotiations. The Procurement Plan will be updated at least annually, or as required, to reflect the actual project implementation needs and institutional capacity. The implementation entities, as well as contractors, suppliers and consultants will observe the highest standard of ethics during procurement and execution of contracts financed under this project. “Guidelines on preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA and Grants” dated October 15, 2006 and revised in January 2011 (the Anti-Corruption Guidelines) shall apply to the project. 46. Institutional procurement arrangements and procedures have been designed in line with the emergency nature of the project according to the OP/BP 10.00 Rapid Response to Crisis and Emergencies. Also the need has been recognized for simple mechanisms to facilitate the procurement or contracting of all activities of the project. The procurement arrangements for the Reconstruction and Economic Recovery Project have been designed in consideration of the country’s fragile and conflict situation therefore, the procurement arrangement below are aimed at maximizing efficiency and flexibility in order to get quick results on the ground, while keeping the risk to an acceptable level. Advertising 47. A General Procurement Notice (GPN) will be prepared and published in United Nations Development Business (UNDB) online and on the Bank’s external website and in at least one national widely circulated newspapers or on a widely used website or electronic portal of the Recipient with free national and international access after the project is approved by the Bank Board, and/or before effectiveness. The GPN will show all International Competitive Bidding for works and goods contracts and all consulting services involving international firms. Specific Procurement Notices for all goods and works to be procured under ICB and Expressions of Interest (EOI) for all consulting services to cost the equivalent of US$200,000 and above would also be published in the same manner that the GPN. Procurement methods 48. Procurement of Civil Works. Civil works procured under this project will include: (i) rehabilitation of schools and health centers; road rehabilitation works; (ii) construction of local markets; and (iii) construction and rehabilitation of basic infrastructure service delivery. Procurement will be done under NCB using National Standard Bidding Documents agreed with or satisfactory to the Bank. Small value works may be procured under shopping procedures. Direct contracting may be used where necessary if agreed in the procurement plan in accordance with the provisions of paragraph 3.7 to 3.8 of the Procurement Guidelines. Direct contracting may be used for the procurement of services of qualified United Nation Agencies, and NGOs. 49. Procurement of Goods. Goods procured under this project will include: schools and health center equipment; furniture; procurement of commodities and small equipment etc. Procurement will be done under ICB or NCB using the Bank’s Standard Bidding Documents for 61 all ICB and National Standard Bidding, or Documents agreed with or satisfactory to the Bank. Shopping in accordance with paragraph 3.5 of the Procurement Guidelines will be used for procuring readily available off-the-shelf goods of values less than US$100,000 or simple civil works of values less than US$200,000. Direct contracting may be used where necessary if agreed in the procurement plan in accordance with the provisions of paragraph 3.7 to 3.8 of the Procurement Guidelines and Force account in accordance with the provisions of paragraph 3.9 of the Procurement Guidelines. 50. Other methods may include: (i) Community Participation in procurement; (ii) Community Force Account (community may implement a sub project using its own resources, skilled or unskilled labor, materials, equipment). 51. Selection and employment of Consultants: Consultancy services would include advisory services, feasibility studies, and environmental and social impact studies. The selection method will be Quality and Cost Based Selection (QCBS) method whenever possible. Contracts for specialized assignments estimated to cost the equivalent of US$500,000 and less may be contracted through Consultant Qualification (CQ). The following additional methods may be used where appropriate: Quality and Cost Based Selection (QCBS); Selection under a Fixed Budget (FB); and Least-Cost Selection (LCS). 52. Short lists of consultants for services estimated to cost less than the equivalent of US$400,000 per contract for engineering and contract supervision and US$200,000 per contract for other consultancy assignments may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. However, if foreign firms express interest, they will not be excluded from consideration. For assignments that are estimated to cost less than US$100,000, advertisement will not be mandatory as long as a shortlist of at least three qualified firms is established. 53. Single Source Selection (SSS) may be employed with prior approval of the Bank and will be in accordance with paragraphs 3.8 to 3.11 of the Consultant Guidelines. All services of Individual Consultants (IC) will be procured under contracts in accordance with the provisions of paragraphs 5.1 to 5.6 of the Guidelines. Procurement Implementation Arrangement 54. Tentatively, it is expected that the following main agencies will be responsible for the implementation of the various components of the project, including procurement activities for each component (or subcomponent) to ensure smooth implementation. (i) A Project Coordination Unit (PCU) within the Ministry of Economy and Finance (MEF) will be responsible for the overall coordination of the project and the day to day implementation of the project’s activities. However, the PCU may need to delegate some of their responsibilities; (ii) Also, it was agreed that during the preparation stage, the coordination and oversight of the procurement activities of the emergency project will be done by the procurement specialist recruited under the current Bank–financed Governance and Budget Decentralization Technical Assistance Project. The procurement specialist 62 will have his workload adjusted to accommodate the demands of the new project and allow sufficient time for him to devote to procurement activities; (iii) Delegated Contract Management Agencies (MOD). (a) AGETIPE and AGEROUTE for Component 1; (b) CARE Mali and SOS Sahel International, based on their prior field operations, capacity to implement Component 2 and 3; and (c) NGOs to be selected from a positive list of NGOs based on relevant Malian experience especially of the North for Component 4. For Component 1, in addition to AGETIPE and AGEROUTE, AGETIER and other firms may be selected as MODs, on the basis of appropriate selection methods in line with the emergency nature of the project and subject to meeting eligibility and performance criteria and fiduciary requirements; and (iv) Given the emergency nature of the project and in order to facilitate the procurement of rehabilitation of small local infrastructure, it was agreed with the government, that the selected entities will be responsible for the implementation of their respective component (or subcomponent) for the first two years of the project. The size of the staff will be adapted to the new volume of activity to be executed. The MOD will use simple and rapid procedures for bidding process, contract award and payment. The justification of the Single Source Selection (SSS) of the MODs within the framework of the OP/BP 10 is as follow: • Given the emergency nature of the project and the need for rapid results on the ground, the project has been designed to rely on implementation arrangements which are already in place and have been successfully tested under previous Bank-financed activities; • The proposed entities has demonstrated track record in delivering under very tight time constraints; • Immediate availability to undertake the assignment; and • The fact that the proposed MODs are already in the field with representation in the Northern Region. 55. NGOs, contracted as Implementing Partners by the PCU for Component 3 will be responsible for ensuring participation of communities and PLGs in the prioritization and oversight of project activities and overall technical implementation and supervision of the public works activities and would (i) facilitate awareness creation, community mobilization, community-based targeting, beneficiary identification, and prioritization of infrastructure for rehabilitation; (ii) ensure proper implementation of the rehabilitation, as outlined in the Project Implementation Manual (PIM); (iii) provide technical inputs for finalizing designs for Component 2 activities, and oversee the timely and equitable distribution of materials and equipment, to beneficiary Livelihood Associations and individual households; and (iv) ensure inclusion and transparency, conflict-sensitiveness, information disclosure and display. Procurement arrangements for Training and Workshops 56. For all training activities, the PCU shall prepare and submit for Bank approval, annual training plans and budgets including the objectives of the training, the target participants, format of delivery and the qualifications of the resource person(s) as well as the expected impact of the training before the training can be undertaken. In case the training is to be outsourced, the procurement of the Trainer or the training institution shall be integrated into the project 63 procurement plan and agreed with the Bank. Similarly, the procurement of venues for workshops and training materials would be done by comparing at least three quotations. Procurement arrangements for Training and Workshops 57. For all training activities, the PCU shall prepare and submit for Bank approval, annual training plans and budgets including the objectives of the training, the target participants, format of delivery and the qualifications of the resource person(s) as well as the expected impact of the training before the training can be undertaken. In case the training is to be outsourced, the procurement of the Trainer or of the training institution shall be integrated into the project procurement plan and agreed with the Bank. Similarly, the procurement of venues for workshops and training materials would be done by comparing at least three quotations. Assessment of the agencies’ capacity to implement procurement 58. Procurement capacity assessments of the implementing agencies were carried out to determine the institutional and management arrangements that would ensure proper execution of the project. Streamlined procedures were used in line with the Simplified Procurement Procedures under OP10.00 – Guidance to World Bank Staff in Situations of Urgent Need of Assistance or Capacity Constraints, dated April 2013. It mainly focuses on the capacity and internal arrangements of the recipient and the executing agencies to carry out by themselves procurement planning and implementation, or otherwise proposed alternative arrangements to ensure transparent and efficient implementation. 59. Assessment of the Ministry of Economy and Finance: A procurement assessment has been carried out on October 11, 2013 in the relevant central unit for finance and procurement of the Ministry of Economy and Finance: the Direction of Finances and Material (DFM). Procurement issues and risks for the implementation of the project which have been identified include: (i) absence of manual of procedures within DFM; (ii) lack of proficient procurement personnel to implement procurement actions in line with Bank procedures; (iii) the staff responsible for process control and approval are not familiar with Bank procurement procedures despite the existence of internal control mechanism; (iv) delays in procurement process (mainly at award stage); and (v) lack of adequate record keeping system. 60. For the above considerations, the procurement risk is estimated High. 61. Assessment of AGETIPE: An evaluation of the capacity of AGETIPE was carried out by the procurement specialist in Mali, on September 28, 2012 and August 29, 2013. AGETIPE is currently one the two construction managers of an emergency project in education funded by the Bank. Procurement issues and risks for the implementation of the project which have been identified include: (i) lack of adequate procurement staff due to the new volume of activities to be implemented; and (ii) delays in the procurement processes due to the workload generated by the assignment. 62. The strengths of AGETIPE include: (i) AGETIPE has relevant procurement experience in Bank’s operations; (ii) very familiar with Bank procurement procedures and have experience of procurement planning; (iii) the Bank financed Education project is being implemented by AGETIPE. 64 63. The procurement risk is estimated Moderate. 64. Assessment of AGEROUTE: An evaluation of the capacity of AGEROUTE was carried out by the procurement specialist in Mali, on October 4, 2013. AGEROUTE is executing now two delegated contracts management in transport projects and are familiar with IDA procedures similar activities for previous Bank-financed operations and it is familiar with IDA procedures. However, some weaknesses have been revealed during the execution of Second Transport Sector project namely a poor contract management and the lack of quality review within the agency. Procurement issues and risks for implementation of the project which have been identified include: (i) lack of adequate procurement staff due to the new volume of activities to be implemented; (ii) delays in the procurement processes due to the workload generated by the assignment; and (iii) Shortage of space and lack of adequate record keeping equipment. 65. The strengths of AGEROUTE include: (i) AGEROUTE has relevant procurement experience in Bank’s operations; (ii) very familiar with Bank procurement procedures and have experience of procurement planning. 66. The procurement risk is estimated Moderate. 67. Assessment of SOS Sahel: The evaluation of the capacity of SOS Sahel was carried out by the procurement specialist in Mali, on October 7, 2013. SOS Sahel has experienced in supporting similar activities with other donors. The key risks identified for implementing procurement activities under the project by SOS Sahel are: (i) the procurement manual is not detailed and doesn’t meet IDA minimum requirements; (ii) lack of proficient procurement personnel to implement procurement actions under Bank procedures; (iii) shortage of space and lack of adequate record keeping system. 68. The strengths of SOS Sahel include: (i) key staff of SOS Sahel include specialized engineers with relevant technical skills for similar operations; (ii) similar projects activities are being implemented in a satisfaction manner by the NGO, according to the feedback received by other partners. 69. The procurement risk is estimated Substantial. 70. Assessment of CARE Mali: The evaluation of the capacity of Care Mali was carried out by the procurement specialist in Mali, on October 10, 2013 Care Mali has a large experience in supporting similar activities. The key risks identified for implementing procurement activities under the project by CARE Mali are: (i) the procurement manual is not in line with IDA procedures; (ii) lack of proficient procurement personnel to implement procurement actions under Bank procedures; (iii) Shortage of space and lack of adequate record keeping equipment; and (iv) lack of adequate record keeping system. 71. The strengths of CARE Mali include: (i) CARE-Mali has implemented similar activities under Bank financed Agriculture sub-project in a satisfactory manner; (ii) extensive relevant experience in the implementation of the types of activities under the Components 2 and 3. 65 72. The procurement risk is estimated Substantial. 73. The overall unmitigated risk for procurement is “Substantial”. The action plan is set to address the risks identified during the assessment and includes the following main actions in the following table: Action Plan for Strengthening Procurement Capacity Risk Action Responsibility Due date MEF-DFM 1-Absence of a manual of Prepare a Procurement Implementation PCU/MEF No later than procedures within DFM Manual in line with World Bank two months procurement procedures and Public Procurement Act 2- Lack of proficient Recruitment of an experienced procurement PCU/MEF No later than procurement personnel to specialist within the PCU through a two months implement procurement competitive process to review the quality of actions in line with Bank all procurement documents prior to procedures submission to the World Bank Hands-on training of identified staff within PCU/IDA Once the PCU the DFM on Bank procurement procedures identified by the PCU which will implement the Project Preparation Advance Provision of closely support by IDA IDA Immediately Procurement team 3- Staff responsible for Training of staff of the DFM (at least three) PCU/MEF No later than process control and on World Bank procurement procedures in six months approval are not familiar specialized institution (ISADE or CESAG) with Bank procurement Dakar, Senegal. procedures despite the existence of internal The DGMP-DS and the ARMDS will have DGMP- Throughout the control mechanism to play their role to ensure good governance DS/ARM-DS project life and limit the opportunities for undue influence by anyone 4-Delays in procurement Identify the root cause of procurement MEF During process delays at National level and propose Negotiations appropriate solutions 5-Lack of adequate record Set up the project filing system in order to PCU/MEF No later than 3 keeping system better keep procurement documents and months within reports and identify a staff responsible for the project this task. Train staff in data management. implementation AGETIPE 1-Lack of adequate Recruitment of a procurement specialist and AGETIPE At any time procurement staff due to technical experts during the first two years after the the new volume of of the project for regular short-term support effectiveness activities to be missions during the assignment to speed implemented procurement processes and to provide the required expertise 2-Delays in the Setting up a dedicated team within AGETIPE During the procurement processes due AGETIPE to process procurement activities negotiations of to the workload generated of the project delegated 66 by the assignment contract management AGEROUTE 1-Lack of adequate Recruitment of a procurement specialist and AGEROUTE At any time procurement staff due to technical experts during the first two years after the the new volume of of the project for regular short-term support effectiveness activities to be missions during the assignment to speed implemented procurement processes and to provide the required expertise 2-Delays in the Setting up a dedicated team within AGEROUTE During the procurement processes due AGETIPE to process procurement activities negotiations of to the workload generated of the project delegated by the assignment contract management 3- Shortage of space and Provision of equipment and adequate space AGEROUTE No later than 3 lack of adequate record for filing and archiving months within keeping equipment the project implementation SOS Sahel 1-Procurement manual is Mandatory use of the manual of SOS Sahel Within project not detailed and doesn’t procurement procedures of the project implementation meet Bank minimum approved by the Bank requirements 2- Lack of proficient Hands-on training of identified staff within PCU/SOS Sahel Within project procurement personnel to the NGO on Bank procurement procedures implementation implement procurement in order to improve the quality at entry of actions under Bank procurement documentation and processes; procedures 3- Shortage of space and Provision of equipment and adequate space SOS Sahel No later than 3 lack of adequate record for filing and archiving months within keeping system the project implementation CARE Mali 1-Procurement manual is Mandatory use of the manual of CARE Mali Within project not in accordance with IDA procurement procedures of the project implementation procedures approved by the Bank 2- Lack of proficient Hands-on training of identified staff within PCU/CARE Within project procurement personnel to the NGO on Bank procurement procedures Mali implementation implement procurement in order to improve the quality at entry of actions under Bank procurement documentation and processes procedures 3- Shortage of space and Provision of equipment and adequate space CARE Mali No later than 3 lack of adequate record for filing and archiving months within keeping equipment project implementation 74. Operating Costs: Operational costs would include project implementation-related expenditures such as in-country travel, office materials and supplies (stationary and other consumables, but not the purchase of equipment), office rentals and maintenance, utilities (including electricity and water), communication costs (including telephone and internet charges), equipment rental, operation maintenance and repair, travel and transport cost of the staff associated in the project implementation, (including, per diem for project supervision 67 activities in the field. These items will be procured using the procedures detailed in the Manual of procedures, which was reviewed and found acceptable to the Bank. 75. Procurement Plans. Simplified Procurement Plan: The Borrower has developed a simplified procurement plan as per requirement of OP/OB 10.00 indicating procurements to be carried out over the first 12 months of the project. The procurement plan consists of the procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements and shall be agreed between the borrower and the World Bank at negotiations. The procurement plan would be updated at least annually, or more frequently as required, to reflect the actual project implementation needs and improvements in institutional capacity. 76. Prior-Review Thresholds: The Procurement Plan shall set forth those contracts which shall be subject to the World Bank’s Prior Review. All other contracts shall be subject to Post Review by the World Bank. However, relevant contracts below prior review thresholds listed below which are deemed complex and/or have significant risk levels will be prior-reviewed. Such contracts will also be identified in the procurement plans. A summary of prior-review and procurement method thresholds for the project are indicated in the table 3.4 below. All terms of reference for consultants’ services, regardless of contract value, shall also be subject to the World Bank’s prior review. Table 3.4: Thresholds for Procurement Methods Contract Value Expenditure (Threshold) Procurement Contract Subject to Prior Category (US$ 000) Method Review (US$ 000) 1. Works 10,000 or more ICB All Below 10,000 NCB First contract per entity Below or equal 200 Shopping None unless contract specified in the PP No threshold Direct Contracting All 2. Goods 1,000 or more ICB All Below 1,000 NCB First contract per entity Below or equal to 100 Shopping None unless contract specified in the PP No threshold Direct Contracting All 3.Consultancy Firms QCBS,LCS,FBS, All contracts of 200 and more QBS Individual IC (at least 3 CVs) All contract of 200 and more No threshold Single Source All NB: All terms of reference for consulting services will be subject to IDA’s prior review. 68 Frequency of Procurement Supervision 77. In addition to the prior review, supervision which is to be carried out by the Bank, the procurement capacity assessment recommends at least two supervision missions each year and also one visit to the field to carry out post-review of procurement actions. 78. Post Review Procurement: Post-reviews can be done either by IDA’s specialists or by independent consultants hired under the IDA project according to procedures acceptable to the Bank to ascertain compliance with the procurement procedures as defined in the legal documents. The procurement post-reviews should cover at least 15 percent of contracts subject to post-review. Post review consists of reviewing technical, financial and procurement reports carried out by the Recipient’s executing agencies and/or consultants selected. Procurement performance will be assessed on an annual basis (in the form of procurement audits by an external agency). The threshold levels for various methods of procurement may be revised based on the assessment results. Environmental and Social (including safeguards) Environmental 79. The project is classified category B. With respect to activities under Component 1 which will support the investments such as rehabilitation of local infrastructures, and Component 2 which will support development investments into productive socio-economic activities, six safeguard policies are triggered: OP 4.01 on Environmental Assessment; OP 4.04 on Natural Habitats; OP 4.09 on Pest Management; OP 4.11 on Physical Cultural resources; OP 4.12 on Involuntary Resettlement; and OP 4.36 on Forests. No large scale, significant or irreversible negative impact is foreseen to be induced by the project activities. The negative impacts would be minor and manageable with a minimum of efforts in place. Also, given the significant displacement of populations as a result of the crisis, and the likely breakdown of community leadership and conflict resolution structures in the Northern regions, returning households could face difficulty with claiming land in the absence of documentation and/or community verification mechanisms. The guidelines and procedures laid out in the RPF will therefore facilitate compensation and rehabilitation in a likely event of land take, or loss of asset or livelihood. 80. Consistent with the Bank operational policies and procedures OP/BP 10.00 special considerations 11.(a) for Projects in Situations of Urgent Need of Assistance or Capacity Constraints (FCCE), and the guidance note on crisis and emergency operations for application of Bank safeguard and disclosure policies, the approval and disclosure of the RPF prior to appraisal was deferred. An Environmental and Social Screening and Assessment Framework (ESSAF) has been prepared and will be disclosed in country and at Infoshop after Board approval of the project. The Pest Management Plan (PMP), to manage eventual environmental and social issues, was prepared, approved and disclosed in country and at Infoshop prior to negotiations. Then, when necessary and as soon as activity sites are selected and designs of civil work completed, Environmental Impact Assessment (EIA) or Environmental and Social Management Plan (ESMP) and/or a Resettlement Action Plan (RAP) will be prepared, consulted upon and disclosed prior the commencement of works. In the specific case where a RAP is needed it will be prepared, approved and executed prior the commencement of works. 69 The ESSAF provides general policies, guidelines, codes of practice and procedures to be integrated into the implementation of the proposed project (details in Annex 6). 81. The ESSAF was prepared specifically for the proposed project to ensure due diligence, to avoid causing harm, and to ensure consistent treatment of social and environmental issues at the early stage of the project implementation by the Government of Mali, and until all the remaining mandatory safeguard instruments are completed within the four months following the effectiveness. The purpose is also to assist the PCU to ensure that all the activities are properly screened for their social and environmental impacts, and that mitigation measures are adequately incorporated into bidding documents, contracts, and construction work plans. 82. The PCU will be responsible for the preparation and implementation of safeguards instruments under the project. The safeguards specialist of the PCU may seek the collaboration of the National Directorate for Sanitation and Control of Polluters (Direction Nationale de l’Assainissement et du Controle des Pollutions et Nuisances, DNACPN), the national institution in charge of the environmental safeguard procedures, for screening of activities. Local governments and communities will participate in consultations during the preparation of safeguard instruments as well as monitor the implementation of mitigation/compensation measures. Agencies and individual beneficiaries will be responsible for applying the mitigation requirements proposed by the safeguards instruments to the activities they will undertake. 83. As part of the capacity-building to be provided for an environmentally-friendly implementation of the proposed project, a Safeguards Specialist will be recruited by the PCU and trained on the Bank’s safeguard policies implementation requirements and in the ESSAF’s application. The World Bank environmental and social safeguard specialists in the project task team will provide guidance to the PCU. During implementation support missions to the project, the Bank team will assess the implementation of the ESSAF, and recommend additional strengthening, if required. Further, the TPM agency, responsible for monitoring the implementation progress of Components 1, 2 and 3, will also focus on safeguards implementation and provide feedback to the PCU for necessary action. 84. This ESSAF along with the requisite attachments will be shared with the directly involved ministries (Environment, Economy and Finance, and Humanitarian Assistance), participating local governments, concerned nongovernmental organizations and development partners of Mali involved in the Reconstruction and Economic Recovery Project. It will be disclosed in country and at the World Bank’s Infoshop after Board approval of the project. The RPF to be prepared four months following the effectiveness will also be disclosed in accordance with the Bank procedures. 85. At any time, when necessary, the PCU, RA and the NGOs will consult project-affected groups and local governments on the project's environmental and social aspects, and will take their views into account. The PCU will initiate these consultations as early as possible, and for meaningful consultations, will provide relevant material in a timely manner prior to consultation, in a form and language (s) that are understandable and accessible to the groups being consulted. 70 Social 86. The key social risks that the project faces are from the insecurity in the North due to the rebellion, the underlying long-term grievances with implications for some returnees; an urgency of putting in place basic service delivery mechanisms in the North to facilitate the return of IDPs and refugees as well as easing pressures in the South; and jump-starting economic activities to ensure food security and well-being of communities in the North. The project also faces severe governance deficit perceptions stemming from poor accountability of government to its citizens, large scale patronage, elite capture, impunity, and corruption; all undermining the credibility and relevance of government and a growing alienation of the citizenry. Against this background, the proposed project while acknowledging these constraints, aims to put in place basic elements of community and PLG engagement and interphase through participation, consultation, collective decision making with a focus on the vulnerable groups and sensitive facilitation. The project is also putting in place elements of governance reflected in information dissemination, social accountability, transparency, monitoring, and an accessible grievance redress mechanism. It is expected that in the medium to long term these efforts will help greater social cohesion and local governance to take root. 87. The activity selection under the project will follow a participatory approach and the social impacts of these activities are expected to be limited. However, in order to address potential negative social and environmental impacts generated as a result of project interventions, a project Environmental and Social Screening and Assessment Framework (ESSAF) has been prepared (see Annex 6) and will be disclosed in Infoshop after Board approval of the project. The Environment and Social Management Plans (ESMPs) prepared for portfolio of projects based on the ESSAF, will guide implementation. 88. OP 4.12 on Involuntary Resettlement is triggered. The project will be implemented in crisis affected communes in both North and South. However, given the significant displacement of populations as a result of the crisis, and the likely breakdown of community leadership and conflict resolution structures in the Northern regions, returning households could face difficulty with claiming land in the absence of documentation and/or community verification mechanisms. Also, given the tenuous security situation and the capacity deficit in PLG and civilian administration, the ownership and use of productive land resources could be contentious especially in a context where project supported activities could potentially impact livelihoods, restrict access and may involve land take; however, any involuntary resettlement is not expected to be large or on a vast scale. Given the emergency nature of the project, a Resettlement Policy Framework (RPF) in accordance with OP 4.12, was deferred and will be prepared, consulted upon, approved and disclosed within four months of project effectiveness. In the meantime, when necessary and when activity sites are selected and designs of civil work completed, Resettlement Action Plan (RAP) will be prepared, consulted upon, disclosed and fully executed prior the commencement of works. The RPF will outline measures to avoid or reduce impacts through appropriate mitigation measures like compensation and livelihood restoration, where applicable. Resettlement Action Plans will be prepared during activity implementation when required. 71 Monitoring & Evaluation 89. The project monitoring and evaluation framework will rely on specific M&E arrangements at three different layers – national level, regional level, and community monitoring. This approach is critical to ensure close monitoring of activities and real-time evaluation of progress achieved, and to promote the relevance of project activities in a changing environment. At the national level, the Project Coordination Unit (PCU) will be responsible for data collection and consolidated reporting on Components 1, 2 and 3 as provided by the different implementing agencies for the respective components. A dedicated staff within the PCU will assure the quality and timeliness of data and reporting. The Steering Committee will monitor the semi-annual reports that will be disclosed to the public. Baseline data will be collected by implementing agencies as part of project preparation. The Regional Antennas (RAs) will follow a specific framework for monitoring activities of Components 1, 2 and 3 in close coordination with regional, cercle and local government coordination mechanisms. 90. Participatory monitoring and public information dissemination will also be a key element of the project’s M&E. Communities and PLGs will monitor the use of project resources at the grassroots level including the timeliness and quality of infrastructure rehabilitation, and the utilization of project inputs by associations and individual beneficiaries in jump-starting productive activities. Regular supervision by PCU and RAs, with community inputs, will also contribute to project implementation monitoring at the field level. An NGO may be contracted by the PCU to support communities and PLGs in these efforts and will also provide periodic reports to the PCU for necessary action. Information will be made available at the community- level through multiple channels including periodic local meetings, notice boards, and vernacular radio. The feedback and grievance redress mechanism will provide important information on the project process and impacts from the community perspective. Project information will also be available at different levels through website postings, reports and sponsored studies. 91. Component 3 aims to facilitate and strengthen the engagement of communities and the PLGs in the planning, prioritization and oversight of local development activities, thus laying the foundation for the implementation and expected outcomes of Components 1 and 2. It seeks to ensure that the social and productive infrastructure rehabilitated under Components 1 and 2 respond to community needs and address conflict risks, therefore ensuring that they will be used and maintained, rendering them functional beyond one-year of their rehabilitation. The careful identification of vulnerable households that will be supported with productive assets under Component 3, will also ensure that the micro-projects for which productive assets have been financed, are functional. The project may retain an independent agency to carry out Third Party Monitoring of project activities, including supplemental M&E responsibilities to those undertaken by MODs. Such Third Party Monitoring will rely on inputs by local groups and individual beneficiaries. Should continuing security concerns prevent Bank teams from accessing certain areas, the project will rely on Third Party Monitoring of project activities, including supplemental M&E responsibilities to complement those being undertaken by MODs. 72 Annex 4: Operational Risk Assessment Framework (ORAF) MALI: Reconstruction and Economic Recovery Project (P144442) . Risks . Project Stakeholder Risks Stakeholder Risk Rating Substantial Risk Description: Risk Management: The project will adopt a participatory and consultative approach in the identification of priorities and Key stakeholders (different ethnic beneficiaries. The project will be guided by an initial mapping of social groups in project areas to ensure their participation in groups, local authorities, displaced the identification of priorities. Transparent criteria for targeting beneficiaries and groups receiving support for socio-economic persons, women, youth) may fail to activities (Component 2) will be developed. Social accountability mechanisms including grievances redress and M&E engage in project activities or feel arrangements, including community monitoring will help monitor project performance in engaging key stakeholders. excluded due to capture of project activities by some groups, accessibility factors, weak targeting, cultural norms, etc. Resp: Status: Stage: Recurrent: Due Frequency: Client Not yet Implementation Yes Date: Not yet due and due NA PCU Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Substantial Risk Description: Risk Management: A strong PCU will be established to ensure implementation of various components. Weak capacity of implementing The division of roles and responsibilities between LGs and the respective MODs will be clarified through delegated agencies at all levels may cause management contracts. Component 3 will support LGs and deconcentrated entities of central government to monitor delays in implementation and dilute implementation of corresponding investments by MODs. the project’s emergency nature. The use of delegated contract The LGs will monitor service delivery through feedback mechanisms and wide dissemination of project’s information. management agencies (MOD) may undermine the role and accountability of local governments in investment processes. Weak capacity of CSOs may The project will support strengthening of CSOs for community consultation and mobilization, participation, identification, 73 undermine their participation and implementation and oversight of project activities. Experienced NGOs will be engaged by the project to expedite the process of engagement in project activities and community mobilization and engagement and ensure speedy and effective implementation. potentially affecting negatively transparency regarding project investments and activities. Resp: Client Status: Not Stage: Recurrent: Due Frequency: and yet Implementation Yes Date: On-going Bank due NA Governance Rating Substantial Risk Description: Risk Management: Bi-monthly management meetings involving all key stakeholders under the leadership of the oversight Weak project management capacity Ministry at central level, and monthly management meetings under the leadership of governors at regional level will be in the country and the multi-sector established. nature of project activities may further undermine project Adequate financial management will be put in place before implementation starts, including fund flow arrangements, and implementation. auditing and reporting requirements will be made clear. Complementary training will be given to staff on Bank procedures and Interim Financial Report (IFR) preparation. Resp: Status: Stage: Recurrent: Due Frequency: Client, Not yet Preparation and Yes Date: On-going PCU due Implementation Upon and approval Bank Project Risks Design Rating Substantial Risk Description: The multi Risk Management: Clear implementation arrangements will be developed for the different components; social accountability sectoral nature of the project may mechanisms will guide project implementation and adjustments in implementation arrangements will be made as needed. cause implementation delays or Sufficient resources will be allocated to ensure sound implementation and monitoring of activities. dilute the impact of results. Limited funding per commune (local government) may also dilute impact as perceived by communities. Project activities cover many types The project implementation processes will be closely monitored, assessed and strengthened mostly based on existing of infrastructure investments, institutional arrangements at both central and local levels. adding to the project’s complexity. Resp: Status: Stage: Recurrent: Due Frequency: Client, Not yet Implementation Yes Date: On- PCU, due going 74 and Upon Bank approval Social and Environmental Rating Substantial Risk Description: Risk Management: A communications campaign (Component 3) will set realistic expectations about project timeframe and Stakeholders and beneficiaries may planned results on the ground. This will also help different stakeholders understand their roles and responsibilities, address key withdraw support and active constraints, and contribute to project implementation. engagement if project activities are delayed or do not support priorities A participatory process of needs and project identification will be supported by experienced NGOs with a particular focus on as identified by beneficiaries. women, youth and marginalized ethnic groups to prevent capture by the elite and marginalization of the disempowered. Careful screening of conflict risks while prioritizing project investments (for both component 1 and 2) will be undertaken to Elite capture in planning and address conflict issues like avoid elite capture, reduce conflict between pastoralists and agriculturists over land and water, and prioritization, and marginalization avoid exclusion of social groups from accessing social services (details in PIM). of the vulnerable groups may be major constraints to project An ESSAF has been prepared and will be disclosed in country and at Infoshop after Board approval of the project. The PMP effective implementation. has been prepared, finalized and disclosed before negotiations. During implementation RPF will be prepared, consulted, finalized and disclosed by four months of effectiveness. In the meantime, when necessary and when activity sites are selected and designs of civil work completed, RAP will be prepared based on the ESSAF guidance, consulted upon, disclosed and fully Safeguards procedures are executed prior to the commencement of works. ESMPs or EIAs will be prepared, consulted and disclosed during overlooked due to the pressure to implementation. RAPs may be prepared as and when necessary during project implementation. Most environmental impacts deliver quick results on the ground. are mitigated through good construction practices and carefully incorporated mitigation measures. Application of safeguards procedures will be monitored closely by PCU and Bank implementation support team. An accessible and responsive Grievance Redress Mechanism will ensure timely feedback from communities in case of oversight or noncompliance with safeguard requirements. The Third Party Monitoring agency will also monitor safeguards implementation. Additional capacity will be retained to strengthen implementation team if needed. Resp: Status: Stage: Recurrent: Due Frequency: On- Client, Not yet Preparation and Yes Date: going PCU, due implementation Upon MODs. approval Program and Donor Rating Moderate Risk Description: Risk Management: The project team will work closely with donors engaged in similar activities to harmonize approaches as Weak donor coordination could lead well as explore opportunities for co-financing. Coordination mechanisms at regional, cercle, and commune level (CCOCSADs, to overlap of activities, duplication CLOCSADs, CROCSADs) will be supported by the project (Component 3) to ensure relevance of project activities. and contradictory approaches in support of communities, particularly in the North. Resp: Status: On- Stage: Preparation Recurrent: Due Frequency: On- going and Yes going Client Date: 75 and implementation On-going Bank Delivery Monitoring and Rating High Sustainability Risk Description: Security may Risk Management: The use of MODs to implement project activities allows for additional flexibility, should security deteriorate and undermine access to deteriorate. In the case of increased insecurity, alternative implementation modalities will be discussed and agreed with MODs. some project areas. Some The use of MODs will also improve access by project teams to areas where there might be reluctance by some project stakeholders may be reluctant to stakeholders to participate in activities. participate in project activities and may oppose access by project teams to some project areas. Poor participation of communities An implementing agency with extensive knowledge of social characteristics of areas of project intervention will be retained to in the validation process of implement Component 3 and will support community mobilization activities to ensure relevance of project activities. priorities may result in the rehabilitation of infrastructure that is not deemed relevant by communities. Support to productive activities may Social accountability mechanisms including Grievance Redress will help in identifying and addressing mis-targeting. Also the fail to reach the targeted third-party monitoring will help capture these aspects. populations due to CSOs failure to reach out to specific groups. Resp: Status: Stage: Recurrent: Due Frequency: On- Client, Not yet Implementation Yes Date: going PCU, due NA MODs Overall Risk Overall Implementation Risk: High Risk Description: The overall project risk rating is High based on concerns related to accessibility of project teams to some project areas in the North and the overall risk of insecurity that may affect project implementation. As such, the delivery risk is considered High. The delivery risk is compounded by the need to closely coordinate activities with a variety of stakeholders in an evolving and fast moving environment. The stakeholder risk is rated Substantial due to the potentially tense social environment in which the project will operate. The project’s multisectoral approach while attempting to respond to emergency needs also presents a Substantial risk. 76 Annex 5: Implementation Support Plan MALI: Reconstruction and Economic Recovery Project 1. The Implementation Support Plan (ISP) takes into account the emergency nature of the project approach, which focuses on timely and phased support to conflict-affected populations, and the risks associated, as outlined in the ORAF. Strategy and Approach for Implementation Support 2. During project implementation, the Bank will be supporting improved partnerships between the key project stakeholders at both central and local levels. The Bank will also be working closely with other donors involved in post-conflict reconstruction and economic recovery in Mali for effective coordination and coherence of interventions. However, the implementation of the project per se will depend on strong implementation support to make sure the project approach enables the delivery of rapid results to benefit conflict-affected populations while promoting the foundations for good governance and renewed trust amongst government and citizens, particularly at commune (local government) level. The ISP lays out the necessary activities for the Bank to meet its fiduciary and operational obligations in such context. Specific elements of the implementation support strategy are: • Field-based supervision. The Task Team Leader (TTL) and co-TTLs, as well as fiduciary, education, rural development and transport specialists are based in the Country Office (CO). Any change to this would necessitate revisiting the ISP; • Fiduciary risks are limited in terms of management of funds as delegated contract management arrangements will be in place with the use of solid implementing agencies, but support to the PCU, Local Governments (LGs) and concerned de-concentrated structures in the diverse sectors covered by the project will be necessary throughout project implementation; • The Bank’s fiduciary responsibility in relation to the use of funds by delegated contract management agencies (maîtres d’ouvrage délégués, MODs) will be assured through implementation support missions to project twice a year, including a procurement specialist, to support the full implementation and respect of the project manual, and to verify the continued relevance of support measures in place (training of staff, project filing system, inclusion of procurement system with project computerized financial management system, etc.). As the risk of fraud and corruption is estimated to be high in the country, the procurement specialist will also play a central role in early warning of bad practices. All sector-related specialists (rural investment, transport etc.) will also play a role in assuring quality of works contracted by MODs; and • The project is designed to foster more inclusive and participatory needs identification, prioritization, implementation oversight and accountability processes, but the Bank will need to play a role in supporting actual establishment and implementation of a grievance redress mechanism to contribute to improving trust between public authorities and citizens in project areas. 77 Implementation Support Plan 3. Based on the above strategy, the ISP builds on the following elements to ensure adequate technical support and due diligence: • The procurement specialist will play a central role in supporting MODs to complying with the Bank’s fiduciary obligations through keeping a sound approach to procurement. Twice yearly implementation support missions will be carried out, with at least the TTL and Procurement Specialist. This will continue until the MTR or until the Bank is reassured that sound practices are grounded in project management. Following this, implementation support missions covering project areas will be yearly for the remainder of the project; • Support to respect of environmental and social safeguards will need staffed missions to all project areas. Specifically, the Bank social development staff will provide support for activities aimed at inducing incremental development of capacity of government bodies involved in project activities, community participation and engagement, and social accountability mechanisms. Implementation support missions will then be undertaken twice a year to support early rehabilitation and recovery efforts in each project area and will be further reduced to a yearly frequency for the remainder of the project; • The initial project phase will also require support to strengthen M&E as well as attention to the existing mechanisms of coordination between local governments, de-concentrated agencies and the PCU and between the aforementioned stakeholders and the MODs. The successive Bank implementation support missions will pay particular attention to those aspects of project implementation, including by relying on HQ staff; and • The MTR mission will require participation of the entire spectrum of specialists having participated in appraisal. 4. The following skills mix and resources needs are estimated: Time Focus Skills Needed Resource Partner Role Estimate First twelve Start-up phase, Procurement, financial 200k Coordination with months implementation management, works EU, MINUSMA. of priority supervision, social program of development, sector activities to specialists. support rehabilitation and economic recovery. Until MTR Incremental Procurement, financial 150k Continued (yr. 2) development of management, social coordination with community development, works EU, MINUSMA participation and supervision, sector and GiZ. engagement. specialists. MTR MTR Procurement, financial 100k Participation of management, social EU, MINUSMA development, M&E, and GiZ. 78 sector specialists Following Consolidation of Procurement, financial 75k/yr Continued MTR (yr.3-5) institutional management, citizen 225k total coordination with partnerships in participation & local EU, MINUSMA support of governance. and GiZ. improved local governance. Total (5 years) 675k Skills Mix Required Skills Needed Number of Staff Number of Comments Weeks (for duration Trips of Project) Procurement 16 CO-based Twice yearly missions for start-up phase, then yearly Procurement 2 1 (HQ-based) To support CO-based procurement specialist during MTR Financial management 10 CO-based Participate to yearly supervision missions M&E 6 2 (first year and Start-up phase, MTR, MTR) ongoing support Social development 6 3 (Two trips Staff/consultant as available. first year, MTR) Program Assistant 12 CO-based Ongoing team support Language Program 7 HQ-based Ongoing team support Assistant Environmental 12 CO-based Participate in yearly safeguards specialist supervision missions and MTR Social safeguards 12 6 Participate in yearly specialist supervision missions and MTR Legal 1 0 Staff weeks for any restructuring Disbursement 1 0 Local infrastructure 16 CO-based To participate in yearly specialist supervision missions and supervise works in Bamako Rural investment 16 CO-based To participate in yearly specialist supervision missions and supervise works in Bamako TTL 80 CO-based Ongoing implementation support to the client, frequent supervision missions for the first years, yearly thereafter Total 197 79 Annex 6: Environmental and Social Screening and Assessment Framework (ESSAF) MALI: Reconstruction and Economic Recovery Project I. Objectives 1. The Environmental and Social Screening and Assessment Framework (ESSAF) is consistent with Bank operational policies and procedures, investment operations subject to OP/BP 10.00, Investment Project Financing (IPF), for Situations of Urgent Need of Assistance or Capacity Constraints (FCCE) and the guidance note for crises and emergency operations for application of Bank safeguard and disclosure policies. This ESSAF provides general policies, guidelines, code of practice and procedures to be integrated into the implementation of the proposed project. This Framework has been developed to ensure compliance with the World Bank’s safeguard policies at the beginning of the implementation of the project. Environmental and Social Management Plans will be developed for project supported investments with potential adverse social and environmental impacts. A Resettlement Policy Framework (RPF) will be drafted, consulted, finalized and disclosed within four months after the effectiveness of the project. 2. The Framework outlines an approach to deal with environmental and social impact of project supported interventions under Component 1 for the rehabilitation and equipping of school buildings and health clinics; rehabilitation of feeder roads, water and power supply, irrigation and drainage, and sanitation facilities. Under Component 2, the potential adverse social and environmental impacts are with respect to inputs to livelihood associations for agriculture – seeds, pesticides and fertilizers; livestock rearing – feed and fodder; aquaculture – seed and feed; etc. Inputs will also be provided to individual vulnerable households including equipment and raw material for artisans and craft persons. 3. The ESSAF is to ensure that the implementation of the proposed project will:  avoid environmental degradation, including natural habitats, forests and water resources, as a result of either individual activity or cumulative effect of several activities;  not threaten human health;  prevent land acquisition or compensate appropriately any loss of asset and/or livelihood; and  enhance positive environmental and social outcomes. II. General Principles 4. Recognizing the emergency nature of the proposed project and the related need for providing immediate assistance, while at the same time ensuring due diligence in managing potential environmental and social risks, the ESSAF is based on the following principles: 80 • The proposed operation will finance multiple infrastructure and livelihood support activities, the detailed designs/details and locations of which will be known only during implementation. Therefore, to ensure effective application of the World Bank’s safeguard policies, any eligible activity will be screened based on the guidance of this ESSAF; category A activity will not be eligible for funding; • If during the preparation of an activity any land expropriation or restriction to access could occur, Resettlement Action Plans (RAPs), for the specific subproject will be prepared following the guidelines of the project’s Resettlement Policy Framework; • The proposed project will finance preparation of Environmental and Social Management Plans (ESMPs) based on feasibility and detailed design studies, and where required Environmental Impact Assessments, based on the ESSAF in accordance with World Bank safeguard policies; • Employment opportunities as part of infrastructure rehabilitation activities will be made available to the extent possible at the affected communities and households that lost their assets and livelihoods due to the crisis; • Prioritization and planning for all investments will involve communities and Participating Local Governments, with specific focus on the vulnerable sections like women, youth, displaced and ethnic minorities; and • Consultation and disclosure requirements will be simplified to meet the special needs of this project. The full ESSAF will be disclosed in the concerned sector ministries and other public places in Mali and at the World Bank InfoShop after Board approval of the project. III. Environmental and Social Screening and Assessment Framework (ESSAF) 5. This ESSAF has been developed specifically for the proposed project to ensure due diligence, to avoid causing harm, and to ensure consistent treatment of social and environmental issues during the implementation of project activities by the Government of Mali. The purpose of this Framework is also to assist the Project Coordination Unit (PCU) housed under the Ministry of Economy and Finance (MEF), to ensure that all the activities are screened for their likely social and environmental impacts, mitigation measures are incorporated into final designs, and that implementation compliance is met. 6. OP 4.01 Environmental Assessment. Activities under Component 1 will focus on the rehabilitation and equipping of school buildings and health clinics; rehabilitation of feeder roads, water and power supply, irrigation and drainage, and sanitation facilities. The work will be conducted in compliance with OP 4.01, OP 4.04, OP 4.09, OP 4.36 and OP 4.12. The creation of production storage structures and other livelihood related rehabilitation under Component 2 may also have potential adverse social and environmental impacts, triggering OP 4.01. 81 7. Considering the nature and magnitude of potential environmental impacts from relatively limited scale and magnitude of rehabilitation and improvement works, the proposed works are likely to be classified as category ‘B’. During implementation, for activities with potential adverse impacts, an Environmental and Social Impact Assessment (ESIA) and/or Environmental and Social Management Plan (ESMP) will be prepared. At the same time, prior to activity design appraisal, the implementing team (MEF) will agree to apply the following minimum standards during implementation: inclusion of standard environmental codes of practice (ECOP): (i) in the rehabilitation, improvement and construction bid documents of all activities; (ii) review and oversight of any major reconstruction works by specialists; (iii) implementation of environmentally and socially sound options for disposal of debris or drain spoils; (iv) avoidance of any option which threaten natural habitats, forest ecosystem conservation, and water resources sustainable management; (v) and provisions for adequate budget and satisfactory institutional arrangements for monitoring effective implementation of the mitigation measures. 8. OP 4.04 Natural Habitat. This policy is triggered to prevent those activities which could induce direct or indirect significant impacts on natural habitat, fauna, flora or biodiversity be selected and financed by the project. Also, the opening/exploitation of new borrowing pits will have to be done out of sensitive natural habitat areas. The ESMPs will include measures for avoiding or, if unavoidable, mitigating, impacts on natural habitats. The project will not affect or involve critical natural habitats. The bidding documentation, of any activity which has such a requirement, will set clear guidance for the sustainable management of borrowing pit. 9. OP 4.09 Pest Management. Support to agriculture and livestock under Component 2 will entail the direct financing of pesticide and fertilizers, and/or indirect increase of chemical inputs in the agricultural areas. A pest management plan (PMP) was prepared, consulted upon and disclosed prior to negotiations. 10. OP 4.10 Indigenous Peoples. The proposed project will not trigger this safeguard policy as there are no Indigenous Peoples in the project area. 11. OP 4.11 Physical Cultural Resources. The proposed project is not expected to threaten cultural property. Nevertheless, clear procedures will be required for identification, protection of cultural property from theft, and treatment of discovered artifacts, and will be included in standard bidding documents. 12. OP 4.12 Involuntary Resettlement. The need for involuntary resettlement or land acquisition in specific activity areas will only be known during project implementation, when site-specific plans are available. Therefore all activities will be screened for applicability of the resettlement policy and any activity involving involuntary resettlement or land acquisition will only be approved after preparation of a resettlement plan acceptable to the Bank. Several issues increase the complexity of land acquisition - the lack of reliable land record systems, and the inability of people losing land to either document ownership or be physically present to make their claims for eligibility. The safeguards framework will therefore include procedures for identifying eligible project-affected people, calculating and delivering compensation, and mechanisms for land dispute grievance redress. A Resettlement Policy Framework will be 82 prepared, consulted, finalized and disclosed within four months after the effectiveness of the project. 13. OP 4.36 Forests. The proposed project does not include any activities related to forest exploitation. However, as with OP 4.04, this policy is triggered to prevent those activities which could induce direct or indirect significant impacts on forest conservation or sustainable management to be selected and financed by the project. The ESMPs will include measures for avoiding or, if unavoidable, mitigating impacts. 14. OP 4.37 Safety of Dams. The proposed project does not include construction of any dams and therefore this policy would not be triggered. 15. OP 7.50 Projects on International Waterways. The proposed project does not include any activity that would trigger this OP. 16. OP 7.60 Projects on Disputed Areas. The proposed project does not include any activity that would trigger this policy. IV. Safeguard Screening and Mitigation 17. The selection, design, contracting, monitoring and evaluation of activities will be consistent with the following guidelines, code of practices and requirements. The safeguard screening and mitigation process will include: • A list of negative characteristics rendering a proposed activity ineligible for support (see Attachment 1); • A proposed checklist of likely environment and social impacts to be filled out for each subproject or group of activities (see Attachment 2); • Guidelines for land and asset acquisition, entitlements and compensation (see Attachment 3); • Procedures for the protection of cultural property, including the chance discovery of archaeological artifacts, unrecorded graveyards and burial sites, etc. (see Attachment 4); • Relevant elements of the code of practices for the prevention and mitigation of potential environmental impacts (see Attachment 5); and • A sample Environmental Safeguards procedures for Inclusion in the Technical Specifications of Contracts (see Attachment 6). V. Responsibilities for Safeguard Screening and Mitigation 18. The PCU will be responsible for the preparation and implementation of safeguards instruments under the project. The safeguards specialist of the PCU may seek the collaboration of the national entity in charge of the enforcement of the environmental impact assessment policy and procedures, the National Directorate for Sanitation and Control of Polluters 83 (Direction Nationale de l’Assainissement, du Controle des Pollutions et des Nuisances, DNACPN), for the screening of activities. Local governments and Communities will participate in consultations, as case arises, during the preparation of safeguard instruments as well as in monitoring implementation of mitigation/compensation measures. Agencies and Individual Beneficiaries will be responsible for applying the mitigation requirements proposed by the safeguards instruments to each activity they will undertake. VI. Capacity-Building and Monitoring of Safeguard Framework Implementation 19. As part of the capacity-building to be provided for an environmentally-friendly implementation of the proposed project, a Safeguards Specialist will be recruited by the PCU and will be trained on the Bank’s safeguard policies implementation requirements and in the ESSAF’s application. 20. The World Bank environmental and social safeguard specialists in the project task team will provide guidance to the PCU. During implementation support missions to the project, the Bank team will assess the implementation of the ESSAF, and recommend additional strengthening, if required. The Third Party Monitoring agency responsible for monitoring the implementation progress of Components 1, 2 and 3 will also focus on safeguards implementation and provide feedback to the PCU for necessary action. VII. Consultation and Disclosure 21. This ESSAF will be shared with the directly involved ministries (Environment, Economy and Finance, and Humanitarian Assistance), Participating Local Governments, concerned nongovernmental organizations and development partners of Mali involved in the Reconstruction and Economic Recovery Project. Communities will be consulted on the ESSAF during project implementation. It will be disclosed in country and at the World Bank’s Infoshop after Board approval of the project. The PMP was disclosed in country and at Infoshop prior to negotiations. The RPF to be prepared four months following the effectiveness will also be disclosed in accordance with the Bank procedures. 22. At any time, when necessary, the PCU, Regional Authorities (RA) and NGOs will consult project-affected groups and local governments on the project's environmental and social aspects, and will take their views into account. The PCU will initiate these consultations as early as possible, and for meaningful consultations, will provide relevant material in a timely manner prior to consultation, in a form and language(s) that are understandable and accessible to the groups being consulted. 84 Attachment 1 List of Negative Activity Attributes Activities with any of the attributes listed below will be ineligible for support under the proposed project. Attributes of Ineligible Activities GENERAL CHARACTERISTICS Natural habitats and Forest Concerning significant conversion or degradation of critical natural habitats (protected areas, wetlands, etc.) and forest ecosystems. Damages cultural property, including but not limited to, any activities that affect the following sites: • Archaeological and historical sites; and • Religious monuments, structures and cemeteries. Pesticides and Chemicals Requiring pesticides that fall in WHO classes IA, IB, or II. Drinking Water Supply New or expanded of piped water schemes to serve 10,000 or more households. Sanitation New wastewater treatment plants to serve 10,000 or more households. Solid Waste New disposal site or significant expansion of an existing disposal site. Irrigation New significant irrigation and drainage schemes. Dams Construction of dams more than 5 meters high. Rehabilitation of dams more than 15 meters high. Power New power generating capacity of more than 10 MW. Income Generating Activities Activities involving the use of fuelwood, including trees and bush. Activities involving the use of hazardous substances. 85 Attachment 2 Checklist of Possible Environmental and Social Impacts of Activities I. Activity Related Issues No ISSUES YES NO Comments A. Zoning and Land Use Planning 1. Will the subproject affect land use zoning and planning or conflict with prevalent land use patterns? 2. Will the subproject involve significant land disturbance or site clearance including deforestation? 3. Will the subproject land be subject to potential encroachment by urban or industrial use or located in an area intended for urban or industrial development? B. Utilities and Facilities 4. Will the activity require the setting up of ancillary production facilities? 5. Will the activity require significant levels of accommodation or service amenities to support the workforce during construction (e.g., contractor will need more than 20 workers)? C Water and Soil Contamination 6. Will the activity require large amounts of raw materials or construction materials? 7. Will the activity generate large amounts of residual wastes, construction material waste or cause soil erosion? 8. Will the activity result in potential soil or water contamination (e.g., from oil, grease and fuel from equipment yards)? 9. Will the activity lead to contamination of ground and surface waters by herbicides for vegetation control and chemicals (e.g., calcium chloride) for dust control? 10. Will the activity lead to an increase in suspended sediments in streams affected by road cut erosion, decline in water quality and increased sedimentation downstream? 11. Will the activity involve the use of chemicals or solvents? 12. Will the activity lead to the destruction of vegetation and soil in the right-of-way, borrow pits, waste dumps, and equipment yards? 86 13. Will the activity lead to the creation of stagnant water bodies in borrow pits, quarries, etc., encouraging for mosquito breeding and other disease vectors? D. Noise and Air Pollution Hazardous Substances 14. Will the activity increase the levels of harmful air emissions? 15. Will the subproject increase ambient noise levels? 16. Will the activity involve the storage, handling or transport of hazardous substances? E. Fauna and Flora 18. Will the activity involve the disturbance or modification of existing drainage channels (rivers, canals) or surface water bodies (wetlands, marshes)? 19. Will the activity lead to the destruction or damage of terrestrial or aquatic ecosystems or endangered species directly or by induced development? 20. Will the activity lead to the disruption/destruction of wildlife through interruption of migratory routes, disturbance of wildlife habitats, and noise-related problems? F. Destruction/Disruption of Land and Vegetation 21. Will the activity lead to unplanned use of the infrastructure being developed? 22. Will the activity lead to long-term or semi-permanent destruction of soils in cleared areas not suited for agriculture? 23. Will the activity lead to the interruption of subsoil and overland drainage patterns (in areas of cuts and fills)? 24. Will the activity lead to landslides, slumps, slips and other mass movements in road cuts? 25. Will the activity lead to erosion of lands below the roadbed receiving concentrated outflow carried by covered or open drains? 26. Will the activity lead to long-term or semi-permanent destruction of soils in cleared areas not suited for agriculture? 27. Will the activity lead to health hazards and interference of plant growth adjacent to roads by dust raised and blown by vehicles? G. Cultural Property 28. Will the activity have an impact on archaeological or historical sites, including historic urban areas? 29. Will the activity have an impact on religious monuments, structures and/or cemeteries? 30. Have Chance Finds procedures been prepared for use 87 in the activity? H. Expropriation and Social Disturbance 31. Will the activity involve land expropriation or demolition of existing structures? 32. Will the activity lead to induced settlements by workers and others causing social and economic disruption? 33. Will the activity lead to environmental and social disturbance by construction camps? II. Site Characteristics No. ISSUES YES NO Comments 1. Is the activity located in an area with designated natural reserves? 2. Is the activity located in an area with unique natural features? 3. Is the activity located in an area with endangered or conservation-worthy ecosystems, fauna or flora? 4. Is the activity located in an area falling within 500 meters of national forests, protected areas, wilderness areas, wetlands, biodiversity, critical habitats, or sites of historical or cultural importance? 5. Is the activity located in an area which would create a barrier for the movement of conservation-worthy wildlife or livestock? 6. Is the activity located close to groundwater sources, surface water bodies, water courses or wetlands? 7. Is the activity located in an area with designated cultural properties such as archaeological, historical and/or religious sites? 8. Is the activity in an area with religious monuments, structures and/or cemeteries? 9. Is the activity in a polluted or contaminated area? 10. Is the activity located in an area of high visual and landscape quality? 11. Is the activity located in an area susceptible to landslides or erosion? 12. Is the activity located in an area of seismic faults? 13. Is the activity located in a densely populated area? 14. Is the activity located on prime agricultural land? 15. Is the activity located in an area of tourist importance? 16. Is the activity located near a waste dump? 17. Does the activity have access to potable water? 18. Is the activity located far (1-2 km) from accessible 88 roads? 19. Is the activity located in an area with a wastewater network? 20. Is the activity located in the urban plan of the city? 21. Is the activity located outside the land use plan? Recommendation: • Ineligible activity: • Change activity site: • Conduct a simple ESIA (category B): • No ESIA required. Apply following measures: o xxxx (measure, period/timeline, who ?) o yyyy (measure, period/timeline, who ?) o zzzz (measure, period/timeline, who ?) Signed by (PCU designated person): Name: _____________________________ Title: _______________________________ Date: _______________________________ Signed by Project Manager: Name: _______________________________ Title: _______________________________ Date: _______________________________ Approved by the PCU Coordinator on (date and signature) Copied to: • xx • yy 89 Attachment 3 Guidelines for Land and Asset Acquisition, Entitlements and Compensation I. Objectives 1. Resettlement and private land acquisition will be avoided or kept to a minimum, and will be carried out in accordance with these guidelines. Activity proposals that would require demolishing houses or acquiring productive land should be carefully reviewed to minimize or avoid their impacts through alternative alignments. Proposals that require more than minor expansion along rights of way should be carefully reviewed. No land or asset acquisition may take place outside of these guidelines. A format for Land Acquisition Assessment Data Sheet is attached as Attachment 3(i). 2. These guidelines provide principles and instructions to compensate negatively affected persons to ensure that they will be assisted to improve, or at least to restore, their living standards, income earning or production capacity to pre-project levels regardless of their land tenure status. II. Categorization 3. Based on the number of persons that may be affected by the activity, Project Affected People (PAPs) and the magnitude of impacts, activities will be categorized as follows: (a) activities that will affect more than 200 PAPs due to land acquisition and/or physical relocation and where a full Resettlement Action Plan (RAP) must be produced. These will be prepared prior to activity implementation; (b) activities that will affect less than 200 persons require the following documentation: (i) a land acquisition assessment, (ii) the minutes or record of consultations which assess the compensation claimed and agreement reached, and (iii) a record of the receipt of the compensation, or voluntary donation, by those affected (see below); and (c) activities that are not expected to have any land acquisition or any other significant adverse social impacts; on the contrary, significant positive social impact and improved livelihoods are expected from such interventions. III. Eligibility 4. PAPs are identified as persons whose livelihood is directly affected by the project due to acquisition of the land owned or used by them. PAPs deemed eligible for compensation are: (a) those who have formal legal rights to land, water resources or structures/buildings, including recognized customary and traditional rights; 90 (b) those who do not have such formal legal rights but have a claim to usufruct rights rooted in customary law; and (c) those whose claim to land and water resources or building/structures do not fall within (a) and (b) above, are eligible to resettlement assistance to restore their livelihood. IV. Compensation Principles 5. The project implementation agencies will ensure timely provision of the following means of compensation to affected peoples: (a) Project affected peoples losing access to a portion of their land or other productive assets with the remaining assets being economically viable are entitled to compensation at a replacement cost for that portion of land or assets lost to them. Compensation for the lost assets will be made according to the following principles: (i) replacement land with an equally productive plot, cash or other equivalent productive assets; (ii) materials and assistance to fully replace solid structures that will be demolished; (iii) replacement of damaged or lost crops and trees, at market value; (iv) other acceptable in-kind compensation; (v) in case of cash compensation, the delivery of compensation should be made in public, i.e., at the Community Meeting; and (vi) in case of physical relocation, provision of civic infrastructure at the resettlement sites. (b) Project affected peoples losing access to a portion of their land or other economic assets rendering the remainder economically non-viable will have the options of compensation for the entire asset by provision of alternative land, cash or equivalent productive asset, according to the principles in (a) i-iv above. V. Consultation Process 6. The PCU (MEF) will ensure that all occupants of land and owners of assets located in a proposed activity area are consulted. Community meetings will be held in each affected district and village to inform the local population of their rights to compensation and options available in accordance with these Guidelines. The Minutes of the community meetings shall reflect the discussions held; agreements reached, and include details of the agreement, based on the format provided in Attachment 3(ii). 7. The PCU shall provide a copy of the Minutes to affected people and confirm in discussions with each of them, their requests and preferences for compensation, agreements reached, and any eventual complaint. Copies will be recorded in the posted project documentation and be available for inspection during supervision. 91 VI. Activity Approval 8. In the event that an activity involves acquisition against compensation, the PCU shall: (a) not approve the activity unless satisfactory compensation has been agreed with the affected person; and (b) not allow works to start until the compensation has been delivered in a satisfactory manner to the affected persons. VII. Complaints and Grievances 9. Initially, all complaints should be registered by the PCU, which shall establish a register of resettlement/compensation related grievances and disputes mechanism. The Grievance Redress Mechanism being established for the project will facilitate this. The existence and conditions of access to this register (where, when, how) shall be widely disseminated within the community/town as part of the consultation undertaken for the activity in general. A committee of knowledgeable persons, experienced in the subject area, shall be constituted at a local level as a Committee to handle first instance dispute/grievances. This group of mediators attempting amicable mediation/litigation in first instance will consist of the following members: (i) Mayor; (ii) Legal advisor; (iii) Local Representative within the elected Council; (iv) Head of Community Based Organization; and (v) Community leaders. This mediation committee will be set up at local level by the implementation agency on an “as-needed” (i.e. it will be established when a dispute arises in a given community). 10. When a grievance/dispute is recorded as per above-mentioned registration procedures, the mediation committee will be established, and mediation meetings will be organized with interested parties. Minutes of meetings will be recorded. The existence of this first instance mechanism will be widely disseminated to the affected people as part of the consultation undertaken for the sub-project in general. It is important that these mediation committees be set up as soon as RAP preparation starts. Disputes documented e.g. through socio-economic surveys should be dealt with by appropriate mediation mechanisms which must be available to cater for claims, disputes and grievances at this early stage. A template form for claims should be developed and these forms be collated on a quarterly basis into a database held at project level. VIII. Verification 11. The Mediation Meeting Minutes, including agreements of compensation and evidence of compensation made shall be provided to the Municipality/district, to the supervising engineers, who will maintain a record hereof, and to auditors and socio-economic monitors when they undertake reviews and post-project assessment. This process shall be specified in all relevant project documents, including details of the relevant authority for complaints at the municipal/district or implementing agency level. 92 Attachment 3(i) Land Acquisition Assessment Data Sheet (To be used to record information on all land to be acquired) 1. Quantities of land/structures/other assets required: 2. Date to be acquired: 3. Locations: 4. Owners: 5. Current uses: 6. Users: • Number of Customary Claimants: • Number of Squatters: • Number of Encroachers: • Number of Owners: • Number of Tenants: • Others (specify): ______________________ Number: ___________________ 7. How land/structures/other assets will be acquired (identify one): • Donation • Purchase 8. Transfer of Title: • Ensure these lands/structures/other assets are free of claims or encumbrances. • Written proof must be obtained (notarized or witnessed statements) for the voluntary donation, or acceptance of the prices paid from those affected, together with proof of title being vested in the community, or guarantee of public access, by the title-holder. 9. Describe grievance mechanisms available: 93 Schedule of Compensation of Asset Requisition Summary of Units to be Compensated Agreed Compensation Affected Unit/Item a. Agricultural land (m2): ___________________ ___________________ b. Houses/structures to be demolished (units/m2): _____________________ ___________________ c. Type of structure to be demolished (e.g. mud, brick, cement block, etc.,) _____________________ Not Applicable. d. Trees or crops affected: _____________________ ___________________ e. Water sources affected: _____________________ ___________________ Signatures of local community representatives, Sheikh/Head of Tribe: Include record of any complaints raised by affected persons: Map attached (showing affected areas and replacement areas): 94 Attachment 4 Protection of Cultural Property 1. Cultural property include monuments, structures, works of art, or sites of significance points of view, and are defined as sites and structures having archaeological, historical, architectural, or religious significance, and natural sites with cultural values. This includes cemeteries, graveyards and graves. 2. The initial phase of the proposed project poses limited risks of damaging cultural property since activities will largely consist of rehabilitation of existing roads across and along wadis, and minor public works for rehabilitation of school and hospital buildings, irrigation systems, water and power supply. Further, the list of negative activity attributes, which would make an activity ineligible for support (Attachment 1), includes any activity that would adversely impact cultural property. Nevertheless, the following procedures for identification, protection from theft, and treatment of discovered artifacts should be followed and included in standard bidding documents as provided in Attachment 6. Chance Find Procedures 3. Chance find procedures will be used as follows: (a) Stop the construction activities in the area of the chance find; (b) Delineate the discovered site or area; (c) Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the Ministry of Culture take over; (d) Notify the supervisory Engineer who in turn will notify the responsible local authorities and the Ministry of Culture immediately (within 24 hours or less); (e) Responsible local authorities and the Ministry of Culture would be in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the archeologists of the Ministry of Culture (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic values; (f) Decisions on how to handle the finding shall be taken by the responsible authorities and the Ministry in charge of Cultural Heritage and Archeology,. This could include changes in the layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage; (g) Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the Ministry of Cultural heritage; and (h) Construction work could resume only after permission is given from the responsible local authorities and the Ministry of Culture concerning safeguard of the heritage. 95 4. These procedures must be referred to as standard provisions in construction contracts, when applicable, and as proposed in section 1.5 of Attachment 6. During project supervision, the Site Engineer shall monitor the above regulations relating to the treatment of any chance find encountered are observed. 5. Relevant findings will be recorded in World Bank Project Supervision Reports (PSRs), and Implementation Completion Reports (ICRs) will assess the overall effectiveness of the project’s cultural property mitigation, management, and activities, as appropriate. 96 Attachment 5 Code of Practices for Prevention and Mitigation of Environmental Impacts Potential Impacts Prevention and Mitigation Measures Disruption of drainage: • Hampers free drainage, causes • Design to provide adequate drainage and to minimize stagnant pools of water. changes in flows, not limited to the road reserve. • Increased sediments into • Provision of energy dissipaters, cascades, steps, and ponds, streams and rivers due checks dams. to erosion from road tops and • Provision of sufficient number of cross drains. sides. • Balancing of cut and fill. • Increased run-off and flooding. • Re-vegetation to protect susceptible soil surfaces. • Rehabilitation of borrow areas. Erosion: • Erosion of land downhill from • Design to prevent soil erosion and maintain slope stability. the road bed, or in borrowing • Construction in the dry season. areas. • Protection of soil surfaces during construction. • Physical stabilization of erodible surfaces through turfing, • Landslides, slips or slumps. planting a wide range of vegetation, and creating slope breaks. • Bank failure of the borrow pit. • Rehabilitation and re-grading of borrow pits and material collection sites. Loss of vegetation. • Balancing of cut and fill. • Revegetation to protect susceptible soil surfaces. • Minimize loss of natural vegetation during construction. • Revegetation and replanting to compensate any loss of plant cover or tree felling. Loss of access. • Design to include accessibility to road sides in case roadbed is raised. • Alternative alignments to avoid bisecting villages by road widening. 97 Potential Impacts Prevention and Mitigation Measures Impacts during construction: • Fuelwood collection. • Provision of fuel at work camps to prevent cutting of firewood. • Disease due to lack of sanitation. • Provision of sanitation at work camps. • Introduction of hazardous • Removal of work camp waste, proper disposal of oil, wastes. bitumen and other hazardous wastes. • Groundwater contamination (oil, grease). • Accidents during • Management of construction period worker health and construction. safety. • Potential impacts to cultural • Use archaeological chance find procedures and coordinate property. with appropriate agencies. • Increased migration from • Provide comprehensive community participation in nearby cities. planning, and Migration issue to be resolved through local conflict resolution system. 98 Attachment 6 Safeguards Procedures for Inclusion in the Technical Specifications of Contracts I. General 1. The Contractor and his employees shall adhere to the mitigation measures set down and take all other measures required by the Engineer to prevent harm, and to minimize the impact of his operations on the environment. 2. The Contractor shall not be permitted to unnecessarily strip clear the right of way. The Contractor shall only clear the minimum width for construction and diversion roads should not be constructed alongside the existing road. 3. Remedial actions which cannot be effectively carried out during construction should be carried out on completion of each Section of the road (earthworks, pavement and drainage) and before issuance of the Taking Over Certificate: (a) these sections should be landscaped and any necessary remedial works should be undertaken without delay, including grassing and reforestation; (b) water courses should be cleared of debris and drains and culverts checked for clear flow paths; and (c) borrow pits should be dressed as fish ponds, or drained and made safe, as agreed with the land owner. 4. The Contractor shall limit construction works to between 6 am and 7 pm if it is to be carried out in or near residential areas. 5. The Contractor shall avoid the use of heavy or noisy equipment in specified areas at night, or in sensitive areas such as near a hospital. 6. To prevent dust pollution during dry periods, the Contractor shall carry out regular watering of earth and gravel haul roads and shall cover material haulage trucks with tarpaulins to prevent spillage. II. Transport 7. The Contractor shall use selected routes to the project site, as agreed with the Engineer, and appropriately sized vehicles suitable to the class of road, and shall restrict loads to prevent damage to roads and bridges used for transportation purposes. The Contractor shall be held responsible for any damage caused to the roads and bridges due to the transportation of excessive loads, and shall be required to repair such damage to the approval of the Engineer. 99 8. The Contractor shall not use any vehicles, either on or off road with grossly excessive, exhaust or noise emissions. In any built up areas, noise mufflers shall be installed and maintained in good condition on all motorized equipment under the control of the Contractor. 9. Adequate traffic control measures shall be maintained by the Contractor throughout the duration of the Contract and such measures shall be subject to prior approval of the Engineer. III. Workforce 10. The Contractor should whenever possible locally recruit the majority of the workforce and shall provide appropriate training as necessary. 11. The Contractor shall install and maintain a temporary septic tank system for any residential labor camp and without causing pollution of nearby watercourses. 12. The Contractor shall establish a method and system for storing and disposing of all solid wastes generated by the labor camp and/or base camp. 13. The Contractor shall not allow the use of fuel wood for cooking or heating in any labor camp or base camp and provide alternate facilities using other fuels. 14. The Contractor shall ensure that site offices, depots, asphalt plants and workshops are located in appropriate areas as approved by the Engineer and not within 500 meters of existing residential settlements and not within 1,000 meters for asphalt plants. 15. The Contractor shall ensure that site offices, depots and particularly storage areas for diesel fuel and bitumen and asphalt plants are not located within 500 meters of watercourses, and are operated so that no pollutants enter watercourses, either overland or through groundwater seepage, especially during periods of rain. This will require lubricants to be recycled and a ditch to be constructed around the area with an approved settling pond/oil trap at the outlet. 16. The contractor shall not use fuel wood as a means of heating during the processing or preparation of any materials forming part of the Works. IV. Quarries and Borrow Pits 17. Operation of a new borrows area, on land, in a river, or in an existing area, shall be subject to prior approval of the Engineer, and the operation shall cease if so instructed by the Engineer. Borrow pits shall be prohibited where they might interfere with the natural or designed drainage patterns. River locations shall be prohibited if they might undermine or damage the river banks, or carry too much fine material downstream. 18. The Contractor shall ensure that all borrow pits used are left in a trim and tidy condition with stable side slopes, and are drained ensuring that no stagnant water bodies are created which could breed mosquitoes. 100 19. Rock or gravel taken from a river shall be far enough removed to limit the depth of material removed to one-tenth of the width of the river at any one location, and not to disrupt the river flow, or damage or undermine the river banks. 20. The location of crushing plants shall be subject to the approval of the Engineer, and not be close to environmentally sensitive areas or to existing residential settlements, and shall be operated with approved fitted dust control devices. V. Earthworks 21. Earthworks shall be properly controlled, especially during the rainy season. 22. The Contractor shall maintain stable cut and fill slopes at all times and cause the least possible disturbance to areas outside the prescribed limits of the work. 23. The Contractor shall complete cut and fill operations to final cross-sections at any one location as soon as possible and preferably in one continuous operation to avoid partially completed earthworks, especially during the rainy season. 24. In order to protect any cut or fill slopes from erosion, in accordance with the drawings, cut off drains and toe-drains shall be provided at the top and bottom of slopes and be planted with grass or other plant cover. Cut off drains should be provided above high cuts to minimize water runoff and slope erosion. 25. Any excavated cut or unsuitable material shall be disposed of in designated tipping areas as agreed to by the Engineer. 26. Tips should not be located where they can cause future slides, interfere with agricultural land or any other properties, or cause soil from the dump to be washed into any watercourse. Drains may need to be dug within and around the tips, as directed by the Engineer. VI. Historical and Archeological Sites 27. If the Contractor discovers archeological sites, historical sites, remains and objects, including graveyards and/or individual graves during excavation or construction, the Contractor shall: a. Stop the construction activities in the area of the chance find; b. Delineate the discovered site or area; c. Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the Ministry of Culture take over; d. Notify the supervisory Engineer who in turn will notify the responsible local authorities and the Ministry of Culture immediately (less than 24 hours); e. Contact the responsible local authorities and the Ministry of Culture who would be in charge of protecting and preserving the site before deciding on the proper procedures 101 to be carried out. This would require a preliminary evaluation of the findings to be performed by the archeologists of the Ministry of Culture (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage, including the aesthetic, historic, scientific or research, social and economic values; f. Ensure that decisions on how to handle the finding be taken by the responsible authorities and the Ministry of Culture. This could include changes in the layout (such as when the finding is an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage; g. Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the Ministry of Culture; and h. Construction work will resume only after authorization is given by the responsible local authorities and the Ministry of Culture concerning the safeguard of the heritage. VII. Disposal of Construction and Vehicle Waste 28. Debris generated due to the dismantling of the existing structures shall be suitably reused, to the extent feasible, in the proposed construction (e.g. as fill materials for embankments). The disposal of remaining debris shall be carried out only at sites identified and approved by the project engineer. The contractor should ensure that these sites (a) are not located within designated forest areas; (b) do not impact natural drainage courses; and (c) do not impact endangered/rare flora. Under no circumstances shall the contractor dispose of any material in environmentally sensitive areas. 29. In the event any debris or silt from the sites is deposited on adjacent land, the Contractor shall immediately remove such, debris or silt and restore the affected area to its original state to the satisfaction of the Supervisor/Engineer. 30. Bentonite slurry or similar debris generated from pile driving or other construction activities shall be disposed of to avoid overflow into the surface water bodies or form mud puddles in the area. 31. All arrangements for transportation during construction including provision, maintenance, dismantling and clearing debris, where necessary, will be considered incidental to the work and should be planned and implemented by the contractor as approved and directed by the Engineer. 32. Vehicle/machinery and equipment operations, maintenance and refueling shall be carried out to avoid spillage of fuels and lubricants and ground contamination. An oil interceptor will be provided for wash down and refueling areas. Fuel storage shall be located in proper bounded areas. 33. All spills and collected petroleum products shall be disposed of in accordance with standard environmental procedures/guidelines. Fuel storage and refilling areas shall be located at least 300m from all cross drainage structures and important water bodies or as directed by the Engineer. 102 Annex 7: Map IBRD 33443 103 IBRD 33443R MALI SELECTED CITIES AND TOWNS MAIN ROADS PROVINCE CAPITALS RAILROADS NATIONAL CAPITAL REGION BOUNDARIES RIVERS INTERNATIONAL BOUNDARIES 5°W 0° 0 100 200 300 Kilometers To Chenachane 0 50 100 150 300 Miles 25°N MALI To El Mreîti S a h a r a D e s e r t ALGERIA To El Mreîti Taoudenni To Poste Maurice Cortier TOMBOUCTOU To Abalessa 20°N Tessalit 20°N M A U R I TA N I A KIDAL si Araouane du Tilem Kidal llée Va k Tombouctou Gourma ua Rharous o za (Timbuktu) GAO L’A Bourem r Nige de To Vallée To Ayun Lac Niangay Gao Kifa el ’Atrous Niafounke Menaka To Néma Hombori Lac Tondo (1,155 m) Ansongo Nara Nampala Débo Nioro To 15°N 15°N RO du Sahel Douentza Abala MOPTI To Niamey Mopti O Kayes Bandiagara Niono NIGER IK To K AY E S Goudiry Ba SÉGOU UL fin lé Kolokani To Baou Ségou Bani Ouahigouya O r g ge Ni K To San Kédougou Kita To niéba Kéni ba Kéniéba BAMAKO Koulikoro Nouna BURKINA Koutiala FASO To Siguiri Bougouni To DISTRICT Sikasso Bobo GUINEA DE BAMAKO SIKASSO Dioulasso To BENIN Kankan 10°N To 10°N Korhogo GHANA This map was produced by the Map Design Unit of The World Bank. The boundaries, TOGO SIERRA colors, denominations and any other information shown on this map do not imply, on LEONE CÔTE D’IVOIRE the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such 10°W 5°W 0° boundaries. MAY 2009