FIIAL 8OGUWNT8 Supplemental Letter No. 3 REPUBLIC OF AZERBAIJAN SOCIAL FUND FOR DEVELOPMENT OF IDPs June 23, 2016 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 8627-AZ (Additional Financing for IDP Living Standards and Livelihood Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to Section II.A of Schedule 2 to the Project Agreement of even date herewith between the International Bank for Reconstruction and Development (the Bank) and Republic of Azerbaijan Social Fund for Development of IDPs (Project Implementing Entity). The Project Implementing Entity hereby confirms to the Bank that the indicators set out in the attachment to this letter shall serve as a basis for the Project Implementing Entity to monitor and evaluate the progress of the Project and the achievement of the objectives. Very truly yours, REPUBLIC OF AZERBAIJAN SOCIAL FUND FOR DEVELOPMENT OF IDPs By__________ Authorized Representative Attachment Attachment to the Supplemental Letter No. 3 Performance Monitoring Indicators Project Name: (Additional Financing for IDP Living Standards and Livelihood Project) Project Development Objectives Original Project Development Objective - Parent: The objective of the Project is to improve living conditions and increase the economic self-reliance of targeted internally displaced persons. Proposed Project Development Objective - Additional Financing (AF): No change Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised Direct project beneficiaries X Number Value 0.00 199601 371000.00 Date 09-Feb-2012 15-Oct-2015 31-Dec-2020 Comment End target and date modified to reflect AF No Change Female beneficiaries X Percentage Value 0.00 50.10 50.00 Sub Type Supplemental New Percentage of households with Percentage Value 77.00 95.60 30.00 increased access to basic rural Date 15-Apr-20 11 15-Oct-2015 31 -Dec-2020 infrastructure Comment Improvement in relation to the new baseline to be established as part of the 2 impact evaluation Revised % of HH who are satisfied with Percentage Value 3.60 92.70 30.00 the quality of basic rural Date 15-Apr-2011 15-Oct-2015 31-Dec-2020 infrastructure Comment Improvement in relation to the new baseline to be established as part of the impact evaluation Marked for % increase in access to all Percentage Value 59.90 96.40 75.00 Deletion weather rural roads Sub Type Date 15-Apr-2015 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded Marked for % with access to 24 hour water Percentage Value 83.20 92.50 75.00 Deletion Sub Type Date 15-Apr-2015 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded Marked for % with access to 24 hour Percentage Value 89.10 97.20 75.00 Deletion electricity Sub Type Date 15-Apr-2015 15-Apr-2015 30-Jun-2014 Breakdown Comment Original target exceeded Marked for % with access to community Percentage Value 82.00 94.00 75.00 Deletion centers Sub Type Date 25-Sep-2014 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded Revised Percentage Value 33.00 96.00 75.00 Date 25-Sep-2014 15-Oct-2015 31-Dec-2020 3 Changes in housing Comment Original target deficiencies: satisfaction with exceeded housing condition Marked for % of households suffering from Percentage Value 93.50 15.20 25.00 Deletion dampness Sub Type Date 25-Sep-2014 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded Marked for % of households with energy Percentage Value 2.30 98.40 75.00 Deletion efficient doors and windows Sub Type Date 25-Sep-2014 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded Marked for % with access to 24 hour water Percentage Value 44.30 89.60 75.00 Deletion Sub Type Date 25-Sep-2014 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded Marked for % with access to 24 hour Percentage Value 69.60 99.90 75.00 Deletion electricity Sub Type Date 25-Sep-2014 15-Apr-2015 30-Jun-2016 Breakdown Comment Original target exceeded New Improvement in the quality and Percentage Value 0.00 43.00 20.00 sustainability of IDP Date 15-Oct-2015 31-Dec-2020 livelihoods Comment Improvement in relation to the new baseline to be established as part of the impact evaluation Percentage Value 19.60 52.60 25.00 4 Marked for Targeted beneficiaries whose Date 15-Apr-2015 15-Apr-2015 30-Jun-2016 Deletion main source of household income is self generated Comment Original target exceeded Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised Number of completed Number Value 0.00 196.00 490.00 subprojects (disaggregated by Date 09-Feb-2012 15-Oct-2015 31-Dec-2020 type) Comment Revised Number of people benefitting Number Value 0.00 153512.00 313000.00 from access to improved Date 09-Feb-2012 15-Oct-2015 31-Dec-2020 infrastructure (disaggregated by type; also disaggregated by Comment direct and indirect) Revised Number of collective centers Number Value 0.00 87.00 103.00 having renovation Date 09-Feb-2012 11-Jan-2016 31-Dec-2020 Comment New Grievances registered related to X Percentage Value 100.00 100.00 delivery of project benefits Date 15-Oct-20 addressed (%) Comment New Grievances related to delivery X Number Value 0.00 15.00 60.00 of project benefits that are Sub Type addressed-(number) Supplemental Revised Increase in income of direct Percentage Value 0.00 43.00 20.00 project beneficiary households Date 15-Apr-2015 31-Dec-2020 Comment New Increase in income of direct Number Value project beneficiary households Date 31-Dec-2020 5 Comment TBD TBD+20% (in AZN) Revised Number of targeted Number Value 0.00 3906.00 9600.00 beneficiaries who gain Date 15-Apr-2011 15-Apr-2015 31 -Dec-2020 employment Comment New Number of targeted Number Value 0.00 2661.00 5400.00 beneficiaries who gain Sub Type Date 15-Apr-2011 15-Oct-2015 31-Dec-2020 employment - female Breakdown Comment Revised Increased value of assets Number Value 0.00 3237.00 owned by direct beneficiaries Date 09-Feb-2012 15-Apr-2015 31-Dec-2020 Comment TBD+10% New Percentage increase in profit of Percentage Value 0.00 20.00 microloan beneficiary Date 15-Apr-2011 31-Dec-2020 businesses Comment Revised No of active loan accounts - Number Value 0.00 1608.00 3300.00 Micro finance Date 09-Feb-2012 15-Apr-2015 31 -Dec-2020 Comment New Percentage of active loan Percentage Value 30.00 30.00 50.00 accounts held by vulnerable Sub Type IDPs Supplemental New Percentage of active loan Percentage Value 20.00 accounts held by women Sub Type Supplemental Revised Percentage of project- X Percentage Value 0.00 100.00 100.00 supported institutions that are Sub Type reporting on this indicator Supplemental 6 Marked for Community contribution in the X Percentage Value 0.00 1.44 3.00 Deletion total project costs (percentage) Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 Comment Revised Total community contribution X Amount(USD) Value 0.00 531546.66 500000.00 (US$) Sub Type Supplemental Marked for Conflict affected people Number Value 0.00 34285.00 25000.00 Deletion receiving benefits in Ist year of Date 17-Apr-2014 17-Apr-2014 project effectiveness Comment No Change Conflict affected ppl receiving X Number Value 0.00 16663.00 12500.00 benefits in 1st yr of proj. Sub Type Date 17-Apr-2014 17-Apr-2014 effectiveness-female Breakdown Comment Marked for % active loans to women - X Percentage Value 0.00 41.00 35.00 Deletion Microfinance Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 Comment Revised Percentage of project- X Percentage Value 100.00 100.00 100.00 supported institutions that are Sub Type reporting on this indicator Supplemental Marked for Number of active micro- X Number Value 0.00 163.00 200.00 Deletion savings accounts Date 09-Feb-2012 15-Apr-2015 30-Jun-2017 Comment Revised Percentage of project- X Percentage Value 0.00 100.00 100.00 supported institutions that are Sub Type reporting on this indicator Supplemental Marked for No of active loan accounts-- Number Value 0.00 1608.00 1500.00 Deletion Microfinance Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 7 Comment Marked for Increase in targeted Percentage Value 15.00 75.50 40.00 Deletion beneficiaries rating housing Deletion as goui Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 conditions as good. Comment Marked for % active loans to women- Percentage Value 0.00 41.00 35.00 Deletion Microfinance Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 Comment Marked for # of new social institutions Number Value 0.00 539.00 400.00 Deletion formed under the project Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 Comment Marked for % of targeted beneficiaries who Percentage Value 94.00 97.50 75.00 Deletion feel able to influence Date 11-Apr-2014 15-Apr-2015 30-Jun-2016 development decisions. Comment Marked for # of new businesses and micro- Number Value 0.00 2178.00 1500.00 Deletion enterprises created under the Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 project, which are generating profit after one year. Comment Marked for % of targeted beneficiaries who Percentage Value 6.10 2.10 Deletion feel socially excluded in the Date 1 I-Apr-2014 15-Apr-2015 30-Jun-2016 wider society. Comment Marked for # of members of social Number Value 0.00 3944.00 4500.00 Deletion institutions Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 Comment Marked for Beneficiaries rating access to Percentage Value 2.70 95.90 30.00 Deletion goodr as Date 1 1-Apr-2014 15-Apr-2015 30-Jun-2016 good Comment 8 Marked for beneficiaries rating quality of Percentage Value 3.60 93.80 30.00 Deletion service/utility/infrastructure as Date 11-Apr-2014 15-Apr-2015 30-Jun-2016 good Comment Moved into PDO indicator section Marked for % of targeted beneficiaries Percentage Value 89.70 90.80 80.00 Deletion whose social map of trusted Date I IA2014 I5Ap2015 3J relations includes IDPs as well as non IDPs Comment Marked for Amount of monthly household Amount(USD) Value 0.00 1558.00 1000.00 Deletion income Date 09-Feb-2012 15-Apr-2015 30-Jun-2016 Comment 9 ct Development Objective (PDO): rprove living conditions and increase the economic self-reliance of targeted internally displaced persons Baseline Cumulative Target Values' U Origina Pogre RI YR2 YR3 YR4 Responsibility Level Results Indicators' 0 1 ss To Frequency Data furce/ or Data Comments Project Date Methodology S M Start (2015)C (2011) # of direct project Quarterly and Quarterly and eficiaries # 0 158915 220,000 260,000 325,000 371,000 annual project Project MIS annual project reports reports ). of which female Quarterly and Quarterly and 0 % NA 50.1 50 50 50 50 annual project Project MIS annual project reports reports ?ercentage of households Change from original wording th increased access to basic 30% 30% 30% 30% which stated: Change in access ral infrastructure improve- improve- improve- to improved quality of improve- .Randomized mprto- ment on ment on ment on 3 times during Ra i services, infrastructure and mnonimpact Consulting firm E % 77 95.6 nen new new new project (baseline, utilities. Definition of basic new evaluation, ex- (to be hired) IE baseline IE IE IE mid-term, final) poste evaluation rural infrastructure will include baseline baseline baseline water supply, roads, utilities, health centers, schools, and irrigation. Percentage of households 30% 30% 30% 30% New. During the additional rho are satisfied with the improve- improve- improve- Randomized financing, this information will improve- 3 times durmng uality of basic rural i % 3.6 92.7 ment on ment on ment on ment on project (baseline, impact Consulting firm be collected by a consulting nfrastructure new new new m evaluation; ex- (to be hired) firm as part of the impact new mid-term, final) IE baseline IE IE IE poste evaluation evaluation, and not by the baseline baseline baseline project team. 9. Changes in housing deficiencies: satisfaction with This indicator has been housing condition Randomized modified. In the AF, only 75% 75% 75% 75% 3 times during impact Consulting firm maintenance of housing will be O % 33 96 project (baseline, impat Conutfirm carried out. The indicator will evaluation; ex- (to be hired) mid-term, final) therefore measure the satisfaction with housing improvements and maintenance I Please indicate whether the indicator is a Core Sector Indicator (for additional guidance - please see http://coreindicators). 2 UOM = Unit of Measurement. For new indicators introduced as part of the additional financing, the progress to date column is used to reflect the baseline value. 4 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets refer to annual values, please indicate this in the indicator name and in the "Comments" column. 10 Originally, the indicator read: Changes in housing deficiencies - % decrease in hh suffering from dampness; - % increase in hh with energy; efficient doors and windows; -% increase in access to 24 hr; water; - % increase in access to 24 hr improvement in the quality New. Original PDO level IDP livelihoods 20% indicator for livelihoods Improve- activities (% of targeted ment in 20% 20% 20% beneficiaries whose main relation to improve- improve- improve- Randomized source of household income is the new ment from ment from ment from 3 times during impact Consulting fi self-generated) will be tracked % 0 43 baseline to new new new project (baseline, evaluation; ex- (to be hired) as an Intermediate Results be IE IE IE mid-term, final) mevaluation indicator. Quality and established baseline baseline baseline sustainability of IDP as part of livelihoods will be measured the impact through an index including evaluation IDP increased incomes, assets, access to services. Intermediate Results and Indicators Baseline Pr Target Values Intermediate Results Original Progre TRget Vae Data Source/ Responsibility In dicaters Unit of Measurement Project stso YR1 YR2 YR3 YR4 Frequency o for Data Comments Star Collection o(2015) (2011) ntermediate Result 1: Improved IDP living standards 1. # of completed Quarterly Type = water supply, subprojects Number 0 196 270 340 410 490 and annual Project MIS SFDI electricity, irrigation, road, (disaggregated by project health centers, schools, etc. for type) reports component A and B. Changed wording. Original 2. # of people reads: # of people provided benefitting from Quarterly as to sevie utiit acest mrvdand annual access to services/ utility access to improved Number 0 129,512 170,000 230,000 270,000 313,000 and Project MIS SFDI /infrastructure. Type = water infrastructure project supply, electricity, irrigation, (disaggregated by reports road, health centers, schools, type; alsoetc. 11 긱 12 ayment - female (baseline, ex-poste Ficiaries mid-term, evaluation final) creased value of assets 3 times Randomized A by direct beneficiaries during impact Change in wording from: Number TBD TBD+I TBD+I TBD+I TBD+I project evaluation; Consulting firm and type of assets acquired by 0% 0% 0% 0% (baseline, ex-poste (to be hired) IDP as a result of the project" mid-term, evaluation final) ercentage increase in profit 3 times Randomized iicroloan beneficiary during impact messes 0 Percentage 0 20 20 20 20 project evaluation-, Consulting firm New (baseline, ex-poste (to be hired) mid-term, evaluation final) provement in the This wHI be measured ;tainability of IDP livelihoods through an index including IDP risk and dependency on state assistance, number of successive months in which beneficiaries' income exceeds state assistance )a. No of active loan accounts- Quarterly ficrofinance Number 0 2100 2500 2900 3300 and annual Project MIS SFDI 1608 project reports Oa. Percentage of active loan Quarterly New. Vulnerable IDPs will be mounts held by vulnerable and annual defined as IDPs living in DPs Cl Percentage 0 30 30 40 50 so project Project MIS SFDI remote rural communities or reports those living under the poverty line. I Ob. Percentage of active loan Quarterly imounts held by women Percentage 0 10 10 15 20 and annual Project MIS SFDI New 0 project reports I Oc. Percentage of project- Quarterly supported institutions that are Percent 0 100 100 100 100 and annual Project MIS SFDI reporting on this indicator 0 project reports 13