TH E WORLD PRATIBIMBA BANK GROUP Newsletter Volume 1 Issue 3 October 2012 Inside Message from the PRAN Team The PRAN team was extremely Expenditure and Financial Extension of PRAN and Additional encouraged by the comments Accountability (PEFA) Financing for it. -2 and feedback we received on Secretariat on this. A brief the first and second issues of report on the results of public Strengthening Civil Society Organizations'( CSOs’) Use of Social “PRATIBIMBA�. It is, therefore, hearing managed through Accountability to Improve Public Financial with much enthusiasm, that we the regional Social network Management (PFM) -3 bring to you this third issue. in Pohkhara and Biratnagar As the stories in the newsletter is also presented together Some Initial Results of Public Hearings by will explain, some very exciting with a brief introduction and SAP Nepal -4 events and activities have taken update on the Citizen Action Citizen Action for Results, Transparency place in the last few months. for Results, Transparency and Accountability (CARTA) -5 These include the approval of and Accountability (CARTA) Additional Financing of $ 925,000 project. Finally, the actual Case Studies of CECI Sub-Grantees -6 for PRAN extension from the field results of the Social State and Peace Building Fund Accountability Schools and Activities Planned for July- September (SPBF) until December 2013. More Grant Making are arriving and 2012 -7 importantly, a grant of $1.5m for a some case studies are included project called “Strengthening Civil here. Society Organizations use of Social Accountability to improve Public We strongly believe that you Our work is Financial Management (PFM)� from the Multi Donor Trust Fund will find the third issue of "PRATIBIMBA" as useful and challenging, but has been approved to work on the demand side of good governance in interesting as the first and second one. Your comments our mission is Nepal. PRAN will be working very closely with Government’s Public and suggestions, as always, are most welcome. simple. Extension of PRAN and Additional Financing for it A key purpose of PRAN’s grant- with government, deepen PRAN’s making is to provide pilot grants impact on SA practices across the to recipients of PRAN’s SA training Bank portfolio, and continue the so that they can put into practice coordination of PRAN. lessons they have learned. Since the training component was initially Finally, the extension and additional delayed, grant-making is currently financing will also leverage a recently scheduled to close (fully disbursed) approved US $ 1.5 million grant from before participants in the last round an MDTF on PFM. To date, the MDTF The Program for Accountability in of training (on SA in Public Service has only supported governance Nepal (PRAN) is a three year and 3 Delivery-PSD) are able to design “supply-side�activities—now million US dollar project financed their proposals. An additional US it wishes to support SA work in by the State and Peace Building $ 625,000 is therefore requested to this sector by contributing US $ Trust Fund (SPBTF) of the World enable a new (4th) round of grant- 1.5 million to PRAN, utilizing Bank. The project was signed in making, with a particular emphasis its established partnerships and September 2009. As a part of peace on supporting Social Accountability systems. This will help PRAN building process in Nepal, PRAN in Public Service Delivery (PSD). realize important economies of scale was designed to build the capacity of This (unscheduled) round of grants as well as increase its impact and civil society and government actors would also serve to deepen the Bank’s sustainability. For example, while to improve governance by promoting support for SA at an important time core PRAN coordination costs would social accountability (SA) tools. since: (a) the Prime Minister’s Office be charged to the SPF, the MDTF has recently launched a new GAC could cover a part of the supervision “While PRAN got off to a late start strategy that offers significant new budget that cannot be financed by (due to difficulty in contracting opportunities for SA; (b) the latest the SPF and finance new specialist PRAN’s four CSO partners), the indications are that SA in Nepal is skills needed for its focus on PFM project is now progressing very starting to yield results; and (c) the and communications. There would well with progress across all five recent dissolution of the CA has also be cross subsidization in terms of components. To illustrate PRAN’s left important gaps in governance training costs and grant management impact, the task team described how and oversight of public services costs as there are economies of scale beneficiaries in one of PRAN’s target which could, without civil society in grant management when the villages utilized social accountability engagement, prove damaging to overall grant envelope increases. training, mentoring, and the vulnerable groups. PRAN network to successfully The Country Management Unit push for improved public financial PRAN has made important (CMU) in Nepal acknowledged management (See case studies in contributions to SA beyond what PRAN as a key component of Kanda VDC of Bajhnang and lekh was envisaged in terms of: (a) Nepal’s current Interim Strategy Nath Municipality in Kaski). The helping GoN improve services and Note. The CMU is optimistic that team emphasized that PRAN is local governance (e.g. initiating PRAN will further scale up the producing unique results in Nepal, community score cards at health SA instruments across the broader which has suffered from lack of posts); (b) guiding donors on Bank portfolio. Committee members good governance, participation, opportunities for using SA to of State and Peace Building are inclusion and transparency during strengthen governance, especially satisfied with the results of the its protracted peace process. in PFM; and (c) advising the NCO project to date and the approaches on incorporating SA into Bank- PRAN has adopted so far to achieve Based on PRAN’s progress and financed operations through a JSDF it. Members also highlighted a January/February 2012 Mid- grant. A further US $ 300,000 is thus the importance of balancing Term review (including an external requested so that these activities between demand- and supply-side evaluation), the team requests can be continued and expanded to approaches to governance in Nepal an extension and supplemental reach a broader set of stakeholders, due to country’s transition period resources to implement additional promote constructive engagement and lack of elected bodies both at the and expanded activities over a further national and local level. Further, the 14 months, with a view to increasing Committee members called for the PRAN’s impact and sustainability. CMU and sector to provide adequate The extension and expansion will supervision/implementation also leverage a recently approved support to PRAN for the extended US$1.5 million grant from an MDTF grant period, More importantly, on PFM. SPBF secretariat is enthusiastic to learn from PRAN experience with The proposed additional financing Operational bottlenecks which and extension covers main two key might be a learning opportunity for areas: future projects. 2 Pratibimba Strengthening Civil Society Organizations'( CSOs’) Use of Social Accountability to Improve Public Financial Management (PFM) Program for Accountability in Nepal in Nepal. Four competitive grants of (PRAN) has been working to date in the about $50,000 each are expected to be three major themes of Municipal Good awarded to cover activities such as: Governance, Public Service Delivery (a) Capacity building and technical and Public Financial Management. assistance for Members of The Multi Donor Trust Fund (MDTF) Parliament on understanding the in Nepal has granted PRAN $1.5m for budget process, including financial a project called “Strengthening Civil reporting Society Organisations use of Social (b) Gender and pro-poor independent Accountability to improve Public budget analysis Financial Management (PFM)�. The (c) Budget demystification and grant is expected to scale up the work outreach through the media; and in PFM. The implementation period of (d) Revenue monitoring and analysis Luiza Nora, new PRAN and CARTA TTL. this project will be from August 2012 by independent think tanks. to June 2014 and is only for work on Social Accountability in PFM. The MDTF has been previously working on the “Supply side� with Social Accountability monitoring of procurement, the GoN and now wants, through in budget preparation, budget execution, and PRAN, to work on the “Demand side� dissemination, and analysis service performance at the with CSOs. It was attracted by the at the local level (district, Local level way that PRAN works with 4 partner This component will focus on organisations. municipal and village) This will focus on the local budget procurement monitoring, tracking of The Program Development Objective planning and preparation process in the local expenditures, and assessments of this project is “to strengthen 10 target districts of the project. About of the quality of sub-projects and the transparency, efficiency, and 10 small grants (of approximately service delivery at the local level in the inclusiveness of three specific areas of $15,000) will be awarded under this 10 target districts of the project. About public financial management (PFM) component. The competitive grants 20 small grants (of approximately in Nepal through fostering the use will cover activities such as: $15,000) will be awarded under this of different social accountability component. The competitive grants a. Supporting participatory planning will cover activities such as: approaches by Nepali CSOs�. and budgeting at the district and The three components of the project village development committee a. Procurement monitoring and are as follows: (VDC) and municipality level disclosure/dissemination of b. Capacity building support to VDC/ bid results and awards for local Social Accountability municipality members and district procurements in budget preparation, officials on budget planning and b. Participatory expenditure tracking dissemination, and analysis analysis of local funds c. Social audits of local service at the National level c. Preparation and dissemination of delivery or infrastructure sub- This will focus on expanding simplified district budget plans d. Community radio/media programs project investments transparency, awareness, and around district and local budget d. Community scorecards on participation around national issues performance (governance and budgeting and financial reporting service provision) of VDCs/ municipalities and district administrations An important element of the project is to develop a robust Impact Evaluation Strategy. The project wants to quantify the CSOs, the tools, and the delivery methodologies and compare the results with a geographically and demographically similar control group where such work was not implemented to see the real impact of the project later in scientific way. Pratibimba 3 Some Initial Results of Public Hearings by SAP Nepal Of the four partner organizations for the activities of the centers was to The National Centre for Social PRAN, the National Centre for Social organize Public Hearings for an Accountability (NCSA) has Accountability (NCSA) managed agreed common problem in the areas organized Public Hearings on the b SAP Nepal, is the one whose where the networks function. Such three themes of PRAN - Municipal purpose is knowledge sharing and Public Hearings are public events Good Governance (MGG), Public networking throughout the country. where the beneficiaries, usually Service Delivery (PSD) and Public To achieve this NCSA has five organized through CSOs, talk to Finance Management (PFM). All Regional Resource Centers in five government officials about issues five SA Regional Resource Centers regions of the country ( a separate which have become important to (RRC’s) have conducted these Public one at central level in Kathmandu) local residents and find out together Hearings at their respective regions which have supported the creation the problems and prospects for the successfully. Two examples follow: and support of networks. One of betterment of the whole society. Eastern Development Region (EDR) – Social Accountability (SA) Regional Resource Centre: Biratnagar The regional network members on Social authorities with information about the poor They said that a contract had not yet been Accountability in their series of meetings in state of roads and sanitation. The audience implemented for this work. As a result of Biratnagar identified the poor maintenance was composed of all communities affected by the Public Hearing, Biratnagar municipality of roads and management of sewage in the poor maintenance of roads and sanitation has currently completed the task of road and Biratnagar municipality as a burning issue in the municipality - including the network sewage management in Ward no: 1, 3, 5, 7 and that needed to be addressed by the local members. 15. The road and sewage construction contract authorities. Therefore, they collectively that had not been executed is now being decided to have a public hearing on the issue. The Government officials accepted the poor started on the initiation of the Chairperson. The eastern regional SA network organized state of the roads as their responsibility The staff members of EDR also went on a the public hearing and confronted the local and agreed to do something about it. random observation to Ward no 1, 3, 4, 7 and 15 to collect information and evidence from local people concerning the quality of the service. The locals expressed satisfaction regarding the road and sewage works being constructed after so many years. They did not have to complain any further, but were happy that finally they have access to roads and proper sewage facilities. Before After Western Development Region (WDR) – police were seen to be inspecting vehicles near the road of the Pokhara buspark, and regular Social Accountability (SA) Regional Resource Centre: Pokhara police inspection has been implemented in Pokhara to strengthen security. Another issue Before After that concerned the citizens was the situation of the public schools and this was also raised in the Public hearing. As a the High Schools have banned the use of mobile phones, motorbikes and short skirts The people in Pokhara were very dissatisfied District Officer, Police Officers and regional with the way that traffic was bring managed Traffic police including government dept in the town by the Police. Because of the about the situation. The Govt body accepted lack of supervision by the police the roads responsibility, and, as a result of the Public were dangerous for pedestrians. 24 CSOs hearing in Pokhara, has made major changes. Network members of Regional network held One of these was that the long route public the Public Hearing in front of 220 (105 female vehicles were no longer allowed to stop for and 115 male) audience, and spoke to Chief passengers once they are on the road. Traffic 4 Pratibimba Citizen Action for Results, Transparency and Accountability (CARTA) PRAN is also transparency and accountability, and Bank instrument for results and responsible for improve the results of development good governance.� implementing CARTA projects and public services. in Nepal – please see Selection and Funding a description of this by The World Bank’s Bangladesh and Bhuvan Bhatanagar, Nepal country teams are drawing Mechanism In the CARTA Program, the Bank Former TTL of PRAN on this experience to launch a new country offices and Task Team in World Bank Headquarters. program to enhance the development Leaders will identify up to 25 Washington DC effectiveness and results of Bank- ongoing Bank projects that would financed projects through greater be suitable for CSO monitoring, A Different Approach to Third citizen engagement in project and a dozen projects have already monitoring. Kicking off earlier this Party Monitoring month on February 9th, the Program been identified in Bangladesh and An innovation in citizen monitoring Nepal for this purpose. TTLs will entitled—Citizen Action for Results, of World Bank-financed projects at seek the agreement of government Transparency and Accountability the grassroots level is being field implementing agencies to participate (CARTA)—was designed based on tested in the South Asia Region. Last in the program, pointing out the consultations with local civil society summer, the Concerned Citizens of potential benefits of improved groups and the agreement of the Abra for Good Governance in the results, greater transparency, and governments in the two countries to Philippines were monitoring road increased public confidence. participate in the Program. construction on a 4.5 km highway in their district. The volunteer Working together in the spirit In CARTA, the funds are channeled to monitors were in a heated argument of “constructive engagement,� CSOs through an international non- with the contractor’s workers at the Bank staff, implementing agency profit organization, the Partnership plant. While the workers insisted representatives and PTF/local for Transparency Fund (PTF). Using there were 36 bags of cement, the partner staff will agree on the a $1.9 million grant from the Japanese volunteers only counted 26 citing activities to be monitored. The local Social Development Fund, the PTF a number of irregularities on the partners will issue a call for Concept and its local partners, the Monusher site. The Concerned Citizens group Notes, inviting CSOs to indicate Jonno Foundation in Bangladesh documented what they observed how they would carry out the and Helvetas in Nepal, will select for the Department of Public Works monitoring. The two organizations and advise CSOs monitoring and Highways, which sent a team to with the best Concept Notes will implementation progress and results investigate. They found numerous be invited to prepare full proposals. in Bank projects. quality issues including weak The winner will be chosen by the concrete mixture and longitudinal PTF and its local partner, who will “This is an innovative approach cracks in the roadbed. As a enter into an agreement with the to preserve independence of third consequences, the contractor was CSO and supervise its work. Each party monitoring of Bank projects,� forced to rebuild the road at his own subproject will typically last 12- noted Bhuvan Bhatnagar, Task Team expense and the engineer resigned 18 months to test and validate the Leader for the Program, “It is an due to the shame. approaches taken and cost between experiment with many challenges $25,000 and $150,000. The entire and unknowns, but if it succeeds, it In many countries, citizen groups are program will last three years as the can potentially contribute to a new taking action to increase public sector subproject grants are awarded in tranches. Capacity Building and Knowledge Sharing Besides the sub projects—which account for about 75 percent of the program’s budget—the CARTA Program will also include capacity building and knowledge sharing activities. Capacity strengthening will be carried out through on- the-job learning-by-doing, and by connecting CSOs with ongoing Pratibimba 5 capacity building programs like than 200 projects in good governance the results of our operations the PRAN in Nepal and the ANSA in 45 countries by providing grants by encouraging for example, in Bangladesh. CSOs will also be and capacity support to CSOs. appropriate real-time actions when provided with access to experienced irregularities are detected or when PTF Project Advisors, who are all According to Ellen Goldstein, the approaches prove unsuccessful. volunteers, for regular coaching and Country Director for Bangladesh Moreover, it will get us closer to mentoring. Created in 2000, the PTF and Nepal, “effective third party citizens who are the ultimate judges (www.ptfund.org) has funded more monitoring will help improve of our development impact CARTA Progress to date • the Rural Access Improvement and Decentralization Project (RAIDP), For PAF-II sub-project, three shortlisted CSOs are to submit full proposals within a • Poverty Alleviation Fund/2 (PAF-II), month, whereas the Concept Notes for the • Enhanced Vocational Training and EVENT sub-project are being evaluated. Education (EVENT) Project, Likewise, discussions are being held with • School Sector Reform Project (SSRP), the Department of Education for the SSRP • Emergency Peace Support Project (EPSP), sub-project, with the Ministry of Peace and • Emerging Towns Project (ETP), Reconstruction for the EPSP sub-project and • Social Safety Nets Project (SSNP), with the Department of Urban Development • Community Action for Nutrition Project and Building Construction for ETP sub- and project. The Terms of Reference for the • Health SWAP. EPSP sub-project has recently been updated, The Citizen Actions for Results, Transparency In response to the Requests for Concept Notes following the restructuring and extension of and Accountability (CARTA) program issued for RAIDP, PAF-II and EVENT, 17, 25 the project until June 2014, and a Request for is moving forward. The Partnership for and 8 CSOs, respectively, submitted Concept Concept Notes will be issued soon. Transparency Fund (PTF) is working with Notes. These Concept Notes went through a HELVETAS Swiss Intercooperation Nepal rigorous evaluation process. Two shortlisted (HELVETAS Nepal) in Nepal to carry out the CSOs in the case of RAIDP sub-project and project during 2011-2014. three CSOs in the case of PAF-II sub-project were invited to submit full proposals for So far, nine World Bank financed projects further evaluation. Final selection of a CSO for have been identified for possible support RAIDP sub-project has been completed, and a under the CARTA program. These include: tripartite agreement among the CSO, PTF and HELVETAS Nepal is to be signed very soon. Case Studies of CECI Sub-Grantees at July 2012 One part of PRAN’s work is the making of grants to CSOs which have been trained in the use of social accountability tools by Pro-Public. CECI has, to date, provided 30 grants (10 large and 20 small grants) to CSOs on a competitive basis through an independent Grant Making Committee. These grants focus on Public Service Delivery (10), Public Financial Management (14) and Municipal Good Governance (6) covering 30 districts in Nepal. Some of the grantees are doing an excellent job. The role of mentors was found very encouraging as expressed by the grantees. Some of the selected case studies are presented below. Misuse of VDC Budget information out by doing an independent budget analysis and a public expenditure Sahara Nepal ‘s work in Kanda tracking survey. They had learnt these social VDC in Bajhang District. accountability tools from Pro-Public also part of the PRAN program. Once they had carried As with most VDCs in Nepal, Kanda VDC out this work they found that Kanda VDC had a budget which allowed it to provide had allocated Rs 72,000 to senior citizens and services to senior citizens and women Rs. 192,000 to women’s empowerment, but through a number of government approved that money had never been delivered. Sahara Nepal then held a number of focus schemes. Unfortunately for the people of group discussions in Kanda to help the local Kanda VDC had never explained to them people to understand the ways that local their entitlement to this budget, nor indeed government budgeting worked emphasizing had they ever delivered to them the required transparency and accountability of the funds covered by this budget. VDC. People were very surprised and very interested to know what their entitlements Sahara Nepal, a CSO operating with a grant were and what had actually happened to from CECI as part of PRAN, found this them. 6 Pratibimba The CSO, after some difficulty, also set up a The community people of Kanda were and were very pleased that the District focus group discussion with Kanda VDC. very happy – particularly the women, Administration Office sent a letter to the It required some good people management Dalit, Janjatis, senior citizens and other government offices concerning entitlements. skills, but finally the meeting got the disadvantaged groups. They were happier Finally, allocated Rs 72,000 for senior citizens agreement of the VDC that this was the case, still when the VDC committed not to behave and Rs. 192,000 to women’s empowerment that it was irresponsible behavior and five like this in the future. were provided to them. days after the meeting the VDC refunded the Sahara Nepal made sure that the story was amounts in question. carried on the Saipal community FM radio, Reducing Suspicions between the local government and local community CCC work in Lekhnath Municipality, Kaski This is a case study or a ‘success story’ showed interest in the initiative because derived from the report submitted by they had realized the direct benefit to them Community Communication Centre (CCC), in terms of saving labor and did go ahead Kaski on their project under the ‘Small� Sub- by signing agreement with municipality. But, grant provided by CECI. the problem of serious irregularities came forth when the Community Communication Center (CCC), which had proposed the project on the use of a Social Accountability tool of Public Expenditure Tracking System (PETS) to look into the affairs of Lekhnath Municipality, especially in respect of women centric programs like building “dhikis� in all 15 wards of the municipality. Findings: Sample of “dhiki� In course of action taken by CCC under Achieved Results: PETS it was found that: 1. PETS used by CCC, Kaski revealed the • The total budget allocated for the program irregularity happening with “dhiki� was NRs 1.5 million for 15 wards making it program, equal distribution of 10,000 for each ward 2. Municipality realized its mistake of not but only NRs 7,200 was released per ward Lekhnath Municipality had planned to informing the local communities about the to all 15 wards, release the budget to build the “dhiki� � program on time and also not involving • In 10 out of 15 wards there were fake (Traditional Paddy Husker) in all 15 wards the beneficiary community, especially bills and documents submitted to the in the fiscal year 2068/69. However, it failed the Women’s Groups in planning and municipality by unscrupulous elements in to call the interested local communities budgeting exercise of the program, local communities, for agreement on time and when it finally 3. Municipality from now onwards will not • The “dhiki� program meant for saving called for the same the local farmers did not release money before it has the evidence labor for women were not known to respond with much enthusiasm. The notice of the completion of project, Women Groups since they were never came at the time when the farmers were 4. Women’s Groups had also pledged to take really directly contacted by responsible heavily involved in their agricultural fields. interest in budget allocated to programs authorities within the Municipality. Yet in some wards the women’s groups benefitting, or aimed at, women. Activities Planned for July- September 2012 • Finalization of PFM MDTF agreements with partners and start of initial work • Submission of proposal for extension and further funding to SPBF, its acceptance by SPBF, and the start of work. • Share major findings of Community Score Card Pilot Training with Government (MOHP), and Pro Public and persuade MOHP to mainstream CSC into its work in the future. • More focus on mentoring/coaching of the 30 CSOs (both batches) • Intensify joint field visits in September 2012 since all current grants activities will be closed by 3rd week of September. • Finalize Baseline Study • PRAN partners regular monthly meetings • Next issue of Newsletter of PRAN “PRATIBIMBA� with many case studies • Program of TOT for NASC master trainers in social accountability • Workshop on Social Accountability in Nepal organized by CUTs International 18-20 September 2012 (PRAN will sponsor six participants including one from government). Pratibimba 7 TH E WORLD BANK GROUP The World Bank Nepal Office For further information: P.O.Box: 798 Anjalee Thakali Yak & Yeti Hotel Complex Deputy Program Coordinator - PRAN Durbar Marg The World Bank Kathmandu, Nepal Nepal Country Office Tel: 4226792, 4226793 Email: athakali@worldbank.org Fax: 4225112 Tel. (office): 4226792, ext. 6347 Mobile: 9851104539 Website: www.worldbank.org.np www.worldbank.org/np/pran