The World Bank Report No: ISR7726 Implementation Status & Results Moldova Strengthening the Effectiveness of the Social Safety Net Results-Based Financing Specific Investment Loan (P120913) Public Disclosure Copy Operation Name: Strengthening the Effectiveness of the Social Safety Net Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 07-Aug-2012 Results-Based Financing Specific Investment Loan (P120913) Country: Moldova Approval FY: 2011 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Labor, Social Protection and Family Key Dates Board Approval Date 09-Jun-2011 Original Closing Date 30-Jun-2016 Planned Mid Term Review Date 02-Jun-2014 Last Archived ISR Date 03-Mar-2012 Effectiveness Date 26-Oct-2011 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed project is to improve the efficiency and equity of Moldova's safety net through a fiscally sustainable expansion and strengthening of the Ajutor Social Program. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1. Results Area 1. Improved equity by increasing the Ajutor Social Program coverage 13.00 while keeping it well targeted. Component 1. Results Area 2. Increased allocative efficiency to achieve fiscal consolidation and 11.00 sustainability for Moldova's social safety net. Component 1. Results Area 3. Enhanced administrative efficiency, governance, and transparency of 7.00 Public Disclosure Copy the social assistance system. Component 2. Institutional Strengthening for Benefits Administration 6.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Page 1 of 5 The World Bank Report No: ISR7726 Implementation Status Overview The Moldova Strengthening the Effectiveness of the Social Safety Net Project became effective on October 26, 2011. Since then, the Project has demonstrated satisfactory performance. During the implementation support visit of June 25-29, the Ministry of Labor, Social Protection and Family (MLSPF) presented the evidence of achieving two Disbursement-Linked Indicators (DLIs) which both account to US$4 million. These are the DLI 2 that supports the expansion of the Ajutor Social Program and DLI 14 which marks Public Disclosure Copy creation of the Social Inspectorate. Once withdrawn, these two DLIs will bring total project disbursement to US$13 million. Soon after the visit, the Parliament approved elimination of Nominative Compensation program which allows the Government of Moldova to disburse another US$3 million against DLI 7. The coverage of the Ajutor Social Program has been expanding, reaching almost 52,000 households in February-March 2012. This is very much in line with the target number of Program beneficiaries for 2012. The coverage of the accompanying Heating Allowance Program reached about 80,000 households. In late 2011, the GoM created the Social Inspectorate and completed its staffing. Overall, the start of Social Inspectorate s activity was quite impressive. Six months after being operational, it carried out inspections of Ajutor Social and Heating Allowance Programs in 14 raions. The Inspectorate plans on covering all raions with on-site compliance reviews by the end of 2012. Creation of this institution seem to have already influenced the governance in the social assistance by improving accountability of local Social Assistance Departments and strengthening deterrence of applicants and beneficiaries to abuse the system. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Beneficiaries of Safety Nets programs Number Value 126700.00 350000.00 (number) Date 31-Aug-2010 31-Mar-2012 Comments The beneficiary unit of Ajutor Social Program is household and so the program registry records households. Therefore, the numbers provided for individual beneficiaries are estimates made based on the the total Public Disclosure Copy number of households which have received Ajutor Social benefit at least once from the start of the program, an average size of the recipient household for this period, and gender composition of the recipient households, available for adult members only. Page 2 of 5 The World Bank Report No: ISR7726 Beneficiaries of Safety Nets programs - Female Number Value 60180.00 175000.00 (number) Sub Type Date 31-Aug-2010 31-Mar-2012 Breakdown Comments Public Disclosure Copy Beneficiaries of Safety Nets programs - Other Number Value 126700.00 350000.00 social assistance programs (number) Sub Type Date 31-Aug-2010 31-Mar-2012 Breakdown Comments Project Development Indicator 5: Governance Percentage Value 0.00 30.00 ­ Losses from irregularities in the Ajutor Social Date 01-Jan-2011 11-Jan-2012 30-Jun-2015 benefits reduced by 30% of 6,600 mn (baseline Comments The baseline was simulated This indicator will be estimate). based on MLSPF data on measured after social suspicious applications which inspection function is is the best approximation operational and is able to possible in the absence of generate this information, routine social inspection presumably after 2013. function. Project Development Indicator 6. Transparency Percentage Value 78.00 84.20 93.00 Increased number of Moldova citizens is aware Date 01-Jan-2011 11-Jan-2012 30-Jun-2016 of Ajutor Social Program Comments Citizens awareness of Ajutor awareness increased by 6.2% Social was measured by 2010 in 2011, as measured by HBS HBS and stood at 78%. Project Development Indicator 4. Days Value 30.00 30.00 15.00 Administrative efficiency ­ Turnaround time for Date 01-Jul-2011 30-Jun-2012 30-Jun-2016 Ajutor Social application processing, including Comments In 2010 turn around time was verification and eligibility decisions, is reduced to 15 days. over 30 days Project Develoment Indicator 1: Coverage: Percentage Value 14.30 14.90 20.00 20% of population in the poorest quintile Date 01-Jul-2011 30-Jun-2012 30-Jun-2016 receive AS benefits Comments as measured by 2010 HBS as measured by 2011 HBS Project Development Indicator 2. Targeting Yes/No Value Yes Yes Yes Public Disclosure Copy Accuracy:The share of Ajutor Social transfers Date 01-Jul-2011 30-Jun-2012 30-Jun-2016 that reach the poorest population Comments In 2010, the targeting In 2011, the targeting quintileremains above 65% accuracy was at 86.4% accuracy was at 77.6% (above the "floor" of 65%) as (above the "floor" of 65%) as measured by HBS measured by HBS Number of Ajutor Social Program beneficiary Number Value 32000.00 51947.00 60000.00 households reaches 60,000 Sub Type Supplemental Page 3 of 5 The World Bank Report No: ISR7726 Project Development Indicator 3. Consolidation Percentage Value 0.00 7.00 30.00 of categorical benefits--Spending on Date 01-Jan-2011 11-Jan-2012 30-Jun-2016 categorical benefits reduced by 30% of the Comments The state budget for 2012 is pre-reform level of MDL771 bn in 2010 Public Disclosure Copy adopted with MDL719 bn allocations for categorical benefits. Reduction of spending on Nominative Percentage Value 0.00 59.00 60.00 Compensation benefits by 60% of pre-reform Sub Type Date 01-Jan-2011 30-Jun-2012 30-Jun-2016 level of MDL354,394.9 mil Breakdown Comments The state budget for 2012 is adopted with MDL186 bn allocations for NC benefits. Of these, MDL142 bn were spent before the benefitswere abolished in July 2012. Disability and child benefits are consolidated Yes/No Value No No Yes Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Heating Allowance, as a top up to the Ajutor Yes/No Value No Yes Yes Social, is in place Date 31-Oct-2010 30-Jun-2012 31-Mar-2012 Comments Heating Allowance program Heating Allowance program not yet launched reached 80,000 beneficiary households Social Inspectorate is established and Yes/No Value No Yes Yes functional Date 31-Oct-2010 29-Feb-2012 31-Oct-2012 Comments The Inspectorate was established in late 2011 and Public Disclosure Copy began operations in 2012 Data on Financial Performance (as of 04-May-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120913 IDA-50010 Effective 09-Jun-2011 01-Jul-2011 26-Oct-2011 30-Jun-2016 30-Jun-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 4 of 5 The World Bank Report No: ISR7726 P120913 IDA-50010 Effective XDR 22.90 22.90 0.00 5.73 17.17 25.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Ministry of Labor, Social Protection and Family should maintain good progress in Project implementation and work on policies to support achievement of Project results. In September 2012, the World Bank team will review with the Ministry of Labor, Social Protection and Family and the Ministry of Finance the main parameters of the social assistance policy for 2013. The World Bank will assist the Ministry to estimate the impact of the proposed policy parameters and to ensure their consistency with the Project objectives. Restructuring History There has been no restructuring to date. Related Projects Public Disclosure Copy There are no related projects. Page 5 of 5