Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD1584 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF SDR 16.3 MILLION (US$22.5 MILLION EQUIVALENT) AND A PROPOSED GRANT FROM THE ADAPTIVE SOCIAL PROTECTION TRUST FUND IN THE AMOUNT OF US$8.5 MILLION TO THE REPUBLIC OF NIGER FOR AN ADAPTIVE SOCIAL SAFETY NETS PROJECT March 17, 2016 Social Protection and Labor Global Practice 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 January 31, 2016) Currency Unit = Franc CFA US$1 = FCFA 600 0.7244 US$ = XDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing ASPP Adaptive Social Protection Program CFS Safety Nets Unit (Cellule Filets Sociaux) CFW Cash for Work CP Steering Committee (Comité de Pilotage) DA Designated Account DFID Department for International Development DNPGCCA The National Institution for the Prevention and Management of Catastrophes and Food Crisis (Dispositif National de Prevention et de Gestion des Catastrophes et des Crises Alimentaires) DRM Disaster Risk Management ESMF Environmental and Social Management Framework EWU Early Warning Unit FCFA Franc CFA FM Financial Management GDP Gross Domestic Product GoN Government of Niger GPN General Procurement Notice GRS Grievance Redress Service IDA International Development Association IFR Interim Financial Reports IPMP Integrated Pest Management Plan NCB National Competitive Bidding MIS Management Information System NGO Nongovernmental Organization PDO Project Development Objective RPF Resettlement Policy Framework SNP Safety Nets Project SP Social Protection SOE Statement of Expenditures TF Trust Fund TOR Terms of Reference UNDB United Nations Development Business UNICEF United Nations Children’s Fund USR Unified Social Registry Regional Vice President: Makhtar Diop Country Director: Paul Noumba Um Senior Global Practice Director: Xiaoqing Yu Practice Manager: Stefano Paternostro Task Team Leader: Carlo del Ninno and Fanta Touré REPUBLIC OF NIGER ADAPTIVE SOCIAL SAFETY NETS PROJECT TABLE OF CONTENTS Page I.  Introduction ...........................................................................................................................1  II.  Background and Rationale for Additional Financing .....................................................1  III.  Proposed Changes .................................................................................................................6  IV.  Appraisal Summary ............................................................................................................21  V.  Institutional and Implementation Arrangements ............................................................23  VI.  Safeguards ...........................................................................................................................33  VII.  World Bank Grievance Redress ........................................................................................33  Annex I: Results Framework and Monitoring ..........................................................................34  Annex II: Description of Activities Supported by the Additional Financing .........................46  Annex III MAP .............................................................................................................................52  LIST OF TABLES Table 1. Financing by Project Components (in US$, thousands) ................................................. 25  Table 2.a: Categories of Expenditures .......................................................................................... 28  Table 2.b: Categories of Expenditures for the MDTF Grant ........................................................ 28  Table 3. Procurement Thresholds ................................................................................................. 31  Table 4: Prior Review Thresholds for Substantial Risk................................................................ 32  ADDITIONAL FINANCING DATA SHEET Niger Adaptive Social Safety Nets Project ( P155846 ) AFRICA . Basic Information – Parent Parent Project ID: P123399 Original EA Category: B - Partial Assessment Current Closing Date: 30-Jun-2017 Basic Information – Additional Financing (AF) Additional Financing Project ID: P155846 Scale Up Type (from AUS): Regional Vice President: Makhtar Diop Proposed EA Category: Expected Effectiveness Country Director: Paul Noumba Um 30-May-2016 Date: Senior Global Practice Xiaoqing Yu Expected Closing Date: 30-Jun-2019 Director: Practice Stefano Paternostro Report No: PAD1584 Manager/Manager: Carlo Del Ninno, Fanta Team Leader(s): Toure Borrower Organization Name Contact Title Telephone Email Ministry of Economy and Yakoubou General yakoubousani@yahoo +227 96 96 66 13 Finance Mahaman Sani Director .fr Project Financing Data - Parent ( Niger Safety Net Project-P123399 ) (in USD Million) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date Effectiv P123399 IDA-49200 19-May-2011 14-Jul-2011 11-Oct-2011 30-Jun-2017 30-Jun-2019 e Disbursements % Disburse Undisbu Project Ln/Cr/TF Status Currency Original Revised Cancelled Disburse d rsed d Effectiv P123399 IDA-49200 XDR 44.50 44.50 0.00 31.03 13.47 69.72 e i Project Financing Data - Additional Financing Adaptive Social Safety Nets Project (P155846)(in USD Million) [ ] Loan [X] Grant [X] IDA Grant [ ] Credit [ ] Guarantee [ ] Other Total Project Cost: 31.00 Total Bank Financing: 22.50 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount BORROWER/RECIPIENT 0.00 IDA Grant 22.50 Free-standing TFs AFR Human Development 8.50 Total 31.00 Policy Waivers Does the project depart from the CAS in content or in other significant No respects? Explanation Does the project require any policy waiver(s)? No Explanation Team Composition Bank Staff Name Role Title Specialization Unit Carlo Del Ninno Team Leader Senior Economist GSP07 (ADM Responsible) Fanta Toure Team Leader Social Protection GSP07 Specialist Ibrah Rahamane Procurement Senior Procurement GGO07 Sanoussi Specialist (ADM Specialist Responsible) Josue Akre Financial Financial GGO13 Management Management Specialist Specialist Aissatou Diallo Team Member Senior Finance WFALA Officer Andre Zombre Team Member Consultant GGODR ii Arthur Alik Lagrange Team Member Consultant GSPDR Barry Patrick Maher Team Member Senior Financial Disaster Risk GFM3A Sector Specialist Financing Chantal Lewis Team Member Consultant GSP07 Cheikh A. T. Sagna Safeguards Senior Social GSU01 Specialist Development Specialist Dahlia Lotayef Safeguards Lead Environmental GEN07 Specialist Specialist Francoise Brunet Team Member Consultant GSPDR Ibrahim Salaou Team Member AFMNE Barmou Issa Thiam Team Member Finance Analyst WFALA Lydie Anne Billey Team Member Program Assistant GSP07 Mahamane Maliki Team Member E T Consultant GSP07 Amadou Nathalie S. Munzberg Team Member Senior Counsel LEGEN Pascale Schnitzer Team Member Economist GSPDR Patrick Premand Team Member Senior Economist GSP07 Ruxandra Costache Counsel Senior Counsel LEGAM Locations Country First Administrative Location Planned Actual Comments Division Niger Zinder Zinder X Niger Tahoua Tahoua X Niger Maradi Maradi X Niger Dosso Dosso Region X Niger Diffa Diffa X Niger Agadez Agadez X Niger Tillaberi Tillaberi Region X Niger Niamey Niamey X Institutional Data Parent ( Niger Safety Net Project-P123399 ) Practice Area (Lead) Social Protection & Labor iii Contributing Practice Areas Cross Cutting Topics [ ] Climate Change [ ] Fragile, Conflict & Violence [ ] Gender [X] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Health and other social services Other social services 89 Public Administration, Law, and Public administration- 11 Justice Other social services Total 100 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Social Safety Nets/Social Assistance & 70 Social Care Services Human development Nutrition and food security 30 Total 100 Additional Financing Adaptive Social Safety Nets Project ( P155846 ) Practice Area (Lead) Social Protection & Labor Contributing Practice Areas Climate Change, Environment & Natural Resources, Health, Nutrition & Population, Social, Urban, Rural and Resilience Global Practice Cross Cutting Topics [X] Climate Change [ ] Fragile, Conflict & Violence iv [ ] Gender [X] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Health and other social services Other social services 80 100 Agriculture, fishing, and forestry General agriculture, 10 100 fishing and forestry sector Water, sanitation and flood protection General water, 10 100 sanitation and flood protection sector Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Social Safety Nets/Social Assistance & 70 Social Care Services Human development Nutrition and food security 15 Environment and natural resources Climate change 15 management Total 100 Consultants (Will be disclosed in the Monthly Operational Summary) Consultants Required ?Consultants will be required v I. Introduction 1. This project paper seeks the approval of the Executive Directors to provide Additional Financing (AF) in an amount of US$31 million to the Republic of Niger’s flagship Social Safety Nets Project (SNP) (IDA 49200). This will bring the total budget envelope to US$101.0 million. 2. As of December 10, 2015, the SNP has a disbursement rate of 63.6 percent. Its performance toward meeting its development objective has been satisfactory since the project became effective in 2011. The proposed AF was formulated during the midterm review of the parent project held in December 2014, in response to the Government’s request for additional resources to (a) strengthen the impact of the project on resilience; (b) cover a financing gap of US$3.7 million; and (c) expand the geographical scope of the project to address vulnerability in the regions of Niamey (the country’s administrative capital), as well as in the regions of Diffa and Agadez where the volatile security situation continues to contribute to poverty and vulnerability. 3. As part of the proposed AF, the parent project will be restructured to make the safety net system more adaptive, efficient, and responsive to strengthen the ability of poor and vulnerable households to respond to shocks and build their resilience. The Project Development Objective (PDO) and component titles will be updated accordingly. The results framework will be modified to adjust target values and include indicators on capacity building, vulnerability, adaptation, and resilience. The closing date will be extended by two years until June 2019, thus allowing time to achieve all target indicators. The World Bank Safeguard Policy on Pest Management (OP 4.09) has been triggered to reflect the activities that proposed to link selected safety nets beneficiaries with the IDA-Funded Climate Smart Agriculture Support Project (P153420). 4. The proposed AF will be supported by a US$22.5 million IDA grant and a US$8.5 million grant from the Adaptive Social Protection Program (ASPP), financed by a multi-donor Trust Fund (TF).1 The ASPP supports a regional initiative in six countries of the Sahel (Burkina Faso, Chad, Mali, Mauritania, Niger, and Senegal) to identify adaptive approaches that can help address the challenges of climate and other shocks. In addition, the TF supports a regional research agenda focusing on topics such as vulnerability and targeting, the linkages between adaptive social protection and disaster risk management, and the linkages between productive employment, safety nets, price formation, and transmission. II. Background and Rationale for Additional Financing in the amount of US$22.5 million Background 5. Niger is one of the poorest countries in the world. The poverty headcount ratio is estimated at 48 percent in 2011 and the country ranked last on the United Nations Development Programme’s 2013 Human Development Index. Poverty is associated with low levels of food consumption and high levels of chronic and temporary food insecurity. This deep food insecurity 1 The TF is currently supported by the Department for International Development (DFID). 1 results from the interaction between (a) low agricultural productivity; (b) a hostile climatic environment; (c) the country’s high vulnerability to shocks; (d) one of the highest fertility and population growth rates in the world (7.6 children per woman and 3.9 percent growth in 2012); (e) limited economic access to food because of low incomes relative to market prices; (f) poor health and nutritional status of the population; and (g) poor nutrition, sanitation, and health practices. Vulnerability to food insecurity has been exacerbated by the recent food crises of 2001, 2005, 2008, and 2010 that were caused by recurrent droughts, high international food prices, and waves of political instability in the region. Key development challenges contributing to this persistent food insecurity include demography, climate change and variability, inappropriate farming practices, water scarcity, land degradation, and soil erosion. 6. Hence, over the years, food security has remained a key priority for the Government and social protection has gained relevance in the national strategy for vulnerability and poverty reduction. The National Institution for the Prevention and Management of Food Crisis (le Dispositif National de Prévention et de Gestion des Catastrophes et des Crises Alimentaires, DNPGCCA or DN) was created in 1998 and anchored in the Prime Minister’s Office to establish an institutional architecture to address the recurrent crises. The DN has evolved since its creation and now comprises a food crisis unit, an Early Warning Unit (EWU) a humanitarian response unit, and a safety nets unit (Cellule Filets Sociaux, CFS). However, in practice, the overall focus of the DN remains reactive and based on emergency response, which requires a large amount of resources without addressing the root causes of food insecurity or building resilience. 7. Since 2006, the European Union has invested Euro (€) 54.7 million in the DN for food crisis response.2 In 2012 and 2013 alone, Niger received €108 million for emergency crisis response, equivalent to almost one percent of the Gross Domestic Product (GDP) per year. The projects implemented include short-term cash-based transfers, food aid, school feeding, vouchers, subsidized sales or free distributions of products, health-related assistance, and Cash For Work (CFW) and have covered up to 100,000 households (in response to the 2011 food crisis). Without considering emergency programs, the average expenditure for safety nets between 2004 and 2008 was 0.68 percent of GDP. Coverage of safety nets projects (including emergency assistance) is limited compared to the needs, targeting is not necessarily geared toward reaching the chronically poor, and most of this assistance is channeled toward ad hoc short-term interventions. Within the DN (and particularly its monitoring and evaluation unit, as well as its EWU), capacity issues remain, with a direct impact on the effectiveness of the Government’s attempts to anticipate and respond to shocks effectively, and to prevent an escalation of predictable events into a full-blown humanitarian crises. 8. In 2011, a US$70 million parent Safety Nets Project (SNP) was approved by the World Bank to provide a more permanent and predictable safety net. The PDO is to “establish and support a safety nets system which will increase access of poor and food-insecure households to cash transfer and CFW programs”. The SNP became effective on October 11, 2011, with a closing date of June 30, 2017. It was designed to target 140,000 beneficiary households (or 1,050,000 people) through four components: (a) the establishment of a safety nets system with integrated targeting, registration, payment mechanisms, and a Management Information System (MIS); (b) cash transfers to poor and food-insecure households with accompanying measures to 2 Social Protection and Resilience in Niger (World Bank and UNICEF), November 2013. 2 invest in human capital; (c) CFW to provide short-term income support to individuals affected by temporary acute food insecurity; and (d) project management. The cash transfer component was designed based on lessons learned from a pilot government intervention implemented in 2010 with technical assistance from the Bank. Findings of the impact evaluation of the pilot project document the impact of cash transfers and promotion of women’s savings groups 18 months after beneficiaries have exited from the program. The study finds that participation in the cash transfer program had sustainable impacts on household investments. Specifically, the study found lasting impacts on livestock, savings, as well as agricultural productivity. The results from the evaluation highlight the relevance of implementing cash transfer programs with accompanying measures that seek to promote household resilience. 9. The SNP has been rated Satisfactory in implementation progress and in progress toward achieving the PDO continuously for the last 12 months. There has been substantial compliance with the legal covenants, audits, and Financial Management (FM) reporting requirements. There are no overdue audits. Considerable achievements have been reached in all project components as highlighted during the midterm review held in December 2014. The following paragraphs describe the project’s achievements and results as of the end of December, 2015. 10. Component 1: Effective Safety Nets System. Overall, this component has financed the necessary activities to target, register, and pay 73,634 beneficiary households (out of 140,000 households planned for the project duration). A functional MIS has been established to help manage the database of all potential and actual beneficiaries and monitor all processes related to targeting, registering, and payment. Support to the implementation of the program through local field operators is also provided by this component. In addition, activities related to the impact evaluation of the project (including recruiting consultants, purchasing equipment, conducting surveys and analyzing key findings, training staff) have been conducted. This evaluation seeks to (a) assess the impact of the transfers on the overall well-being of the targeted households and (b) determine the value (with regard to outcome) of the behavioral accompanying measures. A long- term impact evaluation of the pilot project that informed the design and implementation of the SNP was also completed. Finally, this component has supported policy dialogue for the implementation of a social protection policy. 11. Component 2: Cash Transfers for Food Security. This component has contributed to the objective of increasing revenues for 44,888 poor and food-insecure households by US$20 per month, successfully completing the first cycle of the cash transfers. Two types of accompanying measures were rolled out: (a) activities to encourage investment in income generating and productive activities and (b) activities designed and implemented in partnership with United Nations Children’s Fund (UNICEF) to encourage the promotion of practices that are geared toward stimulating early childhood development and better health, sanitation, and nutrition outcomes. While the former facilitated the creation of 1,773 savings groups among beneficiaries, the latter achieved encouraging results in promoting the adoption of positive parenting practices related to nutrition, health, sanitation, and psychosocial stimulation. Participation in the behavioral change activities is estimated at 93.3 percent among beneficiaries, with many non- beneficiaries participating as well. The number of households targeted exceeds projections for the period covered by 4,888 households because the project extended cash transfers to Nigerien populations fleeing political instability in neighboring countries at the Government’s request. A total of 2,518 beneficiary households received US$20 per month for 12 months in the region of 3 Tahoua, proving the capacity of the CFS to scale up cash transfers to respond to emergency needs. The number of beneficiaries of the first phase was also increased to take into account the larger than expected number of potential beneficiaries in some regions of the country. 12. Component 3: Cash for Work. This component has provided income support to 28,746 people affected by temporary food insecurity in exchange for their work on microprojects. A total number of 345 microprojects had been completed at the time of the midterm review. The majority of these projects include land restoration interventions (188). Other microprojects also fall in the category of natural resource management and environmental protection, and seek to protect the environment and local livelihoods. These include firebreaks, half-moons, desilting of ponds, dunes stabilization, and pasture protection against invasive weeds. A very small number of socioeconomic community infrastructures have also been built or rehabilitated. 13. Component 4: Project Management. The CFS as an implementing agency, is fully operational in five of the eight regions in the country. Activities related to project management have been satisfactorily completed. They include setting up an implementation unit in Niamey and operational offices in five regions, recruiting and paying experts to provide technical and operational input, facilitating the procurement of goods, works, and services to ensure effective program implementation, and coordinating and supervising operations. Financial Management, Procurement, and Social and Environmental Safeguards 14. The procurement rating of the parent operation has been recorded as Moderately Satisfactory in the most recent Implementation Status and Results Report (ISR) and for the last 12 months. The FM performance was also rated Moderately Satisfactory following the last supervision mission of August 2015. The action plan derived from the last supervision mission is being implemented, along with the majority of the procurement and FM recommendations consists of strengthening fiduciary controls. 15. Performance on environmental and social safeguards is also rated Moderately Satisfactory. Recommendations have been formulated during the midterm review to increase these ratings to Satisfactory and these are being implemented. For safeguards, they are specific to (a) strengthening the capacity of the Non-Governmental Organizations (NGOs) to carry out environmental screening and document questions related to land tenure; (b) clarifying the roles and responsibilities of the national agency for environmental protection, which is supposed to support the project to ensure safeguards compliance; (c) simplifying the tools used to ensure safeguards compliance; and (d) strengthening the capacity of the CFS to provide oversight, possibly through the recruitment of a safeguards specialist to be based in the unit. Rationale 16. Despite the SNP’s achievements to date, the overall context remains that of high vulnerability to food insecurity and shocks. The main challenges affecting the Government’s ability to build resilience among vulnerable populations include (a) the lack of up-to-date knowledge on the scope of vulnerability and poverty; (b) limited capacity within the DN to anticipate effectively and respond promptly to shocks; (c) the need to introduce more innovative approaches and tools that can more effectively address the structural causes of food insecurity; and (d) poor coordination between numerous actors and multiple interventions in social 4 protection, disaster risk management, and climate resilience. With regards to best practices to promote resilience and reduce vulnerability in food-insecure contexts, the use of a permanent, flexible safety net is now acknowledged as a critical contribution to disaster risk management and climate risk resilience, both ex ante to prevent and mitigate the impact of disasters for current beneficiaries and ex post, to be scaled up to help poor and vulnerable populations to cope with the impacts. 17. The proposed AF aims to establish an effective and adaptive safety nets system that will increase the access of the poor and vulnerable to CFW and cash transfer programs. The proposed AF is consistent with objective 1 (promoting sustainable growth) and objective 2 (reducing vulnerability) of the World Bank Group’s Country Partnership Strategy for Niger (FY13–16) (Report 76232-NE). Under objective 2 in particular, outcome 5 (increasing access of poor and food-insecure people to safety net programs), outcome 6 (increased adoption of climate resilience policies and actions in targeted communes), and outcome 7 (improved education and employment skills for youth) apply. The proposed AF, like the parent project, contributes directly to the World Bank Group's twin goals of reducing extreme poverty and boosting shared prosperity. The proposed AF is also consistent with the Government of Niger’s National Poverty Reduction Strategy (2012–2015), particularly with strategic axis 3 which focuses on promoting food security by improving resilience and adaptation mechanisms of populations affected by shocks, and by improving nutrition. Finally, the proposed AF will also complement Bank-executed activities supported by the ASPP, to provide a comprehensive package of knowledge activities, technical assistance, and capacity building that are geared toward exploring synergies between Climate Adaptation and Resilience, Disaster Risk Management and Social Protection and Labor. The purpose is to make the existing social protection system more adaptive and responsive to shocks while building households’ resilience. 18. Adaptive social protection is an integrated approach to help countries address the challenges of climate change and disaster risk for its poor and vulnerable populations. Adaptive social protection programs are flexible programs that can protect poor households from climate and other shocks before they occur (through predictable transfers, building community assets, and other programs that help them cope) and by scaling up to respond to extreme events when they hit. Adaptive social protection systems can help protect the poor when affected by shocks, build long-term resilience to climate-related shocks and other risks, reduce extreme poverty, and contribute to achieving shared prosperity. 19. Scaling up. The proposed AF will primarily cover the costs associated with scaling up activities to enhance the impact of a well-performing operation. To this end, the proposed AF will (a) continue ongoing activities in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder, and expand the geographical coverage of the project to the regions of Diffa, Agadez, and Niamey where populations are vulnerable to economic, political, social, climate and security- related shocks; (b) introduce accompanying measures to further strengthen the impact of cash transfers and CFW on adaptation and resilience; (c) strengthen national capacity for crisis prevention and response; and (d) increase the efficiency of the safety nets system, including its ability to be rapidly scaled up in times of crisis. 20. Cost overrun. The proposed AF will also address a cost overrun of US$3.7 million, which has arisen due to (a) an increase in the number of cash transfer beneficiaries by 2,512, to 5 accommodate a request from the Government to support an emergency response to a food crisis and the large number of Nigeriens fleeing political instability in Libya and Côte d’Ivoire (a restructuring was approved in 2012); (b) an increase in the daily wages of CFW beneficiaries when the Government harmonized all wages to be paid under such programs after project approval; (c) an underestimation in the original budget of the costs associated with establishing an MIS and identification of potential beneficiaries; and (d) an underestimation in the overall operational costs (including consultant salaries, office locations, purchase and maintenance of equipment). The AF for these activities will contribute to meeting targets identified under the well-performing parent project. 21. Restructuring. The parent project will continue to support the establishment of a safety net system, a cash transfer with accompanying measures, CFW, and project management in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder. However, it will be restructured to ensure full alignment with the focus of the proposed AF on adaptation and resilience as follows: (a) the name of the operation will be changed to ‘Adaptive Social Safety Nets Project’; (b) the PDO will be slightly modified to drop ‘food security’ with no impact on what the project intends to achieve. The name of the components will also drop ‘food security’, which is difficult to measure, and include ‘adaptive’ and ‘vulnerable’; (c) additional indicators on resilience and vulnerability will be included in the results framework indicators and target values will be adjusted; and (d) the closing date of the parent project will be extended by two years until June 2019, thus allowing time for all target indicators to be reached. The World Bank Safeguard Policy on Pest Management (OP 4.09) has been triggered to reflect the activities that proposed to link selected safety nets beneficiaries with the IDA-Funded Climate Smart Agriculture Support Project (P153420). 22. The Bank team believes there is a strong justification to support the SNP further with an AF, including the good performance of the SNP to date, the need to ensure full completion of existing activities, and the opportunity to integrate adaptive elements in the existing social protection systems and help communities become more resilient to shocks. III. Proposed Changes Summary of Proposed Changes The names of the components will be changed as below:  Component 1 was titled ‘Safety Nets System’. Under the AF, it is changed to ‘Building an Adaptive and Scalable Safety Nets System’.  Component 2 was titled ‘Cash Transfers for Food Security’. Under the AF, it is changed to ‘Cash Transfers and Accompanying Measures’.  Component 3 was titled ‘Cash for Work’. Under the AF it is changed to ‘ Cash for Work for Resilience’.  Component 4 retains the same title, which is ‘Project Management’. 6 The parent operation will continue to finance the following under each component: Component 1. The costs related to (a) improving the efficiency of the safety net system; (b) further developing the MIS including the introduction of electronic payment cards; (c) supporting the salary of operators (and related costs) in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder; (d) designing and conducting the impact evaluation of activities financed by the parent operation; and (e) supporting policy dialogue on social protection. Component 2. The costs of targeting, registering, and paying beneficiaries in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder. The parent operation will also continue to cover the costs of delivering the package of accompanying measures designed under the parent operation in these regions. Component 3. The cost of managing microprojects, targeting, registering and paying beneficiaries in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder. Component 4. The costs of supporting project management. The proposed AF will cover the costs overrun of US$3.7 million and new costs associated with scaling up activities to enhance the impact of a well-performing operation. More specifically, the proposed AF will finance the following under each component: Component 1. Strengthening capacity for more efficient and timely targeting, identification, registration and payment of beneficiaries; developing new modules to include the accompanying measures on resilience in the MIS; elaboration of a Unified Social Registry (USR) to provide a common database on potential and actual beneficiaries; supporting the recruitment, salary, and deployment of the operators who will be based in the new project regions of Diffa, Agadez, and Niamey and other supporting costs; strengthening capacity for crisis prevention and response (support to the DN through recruitment of consultants, provision of logistical and material support, organization of workshops and policy dialogue); supporting communication activities on Adaptive Social Protection; covering the costs associated with building Government capacity to scale up cash transfers in response to shocks; supporting the impact evaluation and monitoring of the CFW activities and productive accompanying measures to the cash transfer. Component 2. Identification, targeting, registering, and payment of cash transfer beneficiaries, who can no longer be supported by the parent project due to the cost overrun; expansion of the geographical coverage of the cash transfers and accompanying measures to the regions of Agadez, Diffa, and Niamey where populations are vulnerable to economic, political, social, and security- related shocks; introducing new accompanying measures to strengthen the impact of the cash transfers on resilience to benefit all households; pilot additional innovative accompanying measures to maximize the impact on resilience to benefit 3,000 households; and rapidly scaling up cash transfers in response to shocks through a disaster risk financing mechanism to target 5,000 beneficiaries for 12 months. Component 3. Cover the costs of identifying, targeting, registering, and paying beneficiaries who can no longer be supported by the parent project due to the cost overrun; increase the number of 7 CFW beneficiaries; and support the costs of implementing accompanying measures designed to strengthen the impact of CFW on resilience. Both the IDA and the TF will contribute to this component. Component 4. Supporting project management costs to cover the cost overrun and project extension; procure goods, consultants, services, and works; and establish a representation in the new geographical areas of the operation. The parent project will be restructured to ensure full alignment with the focus of the proposed AF on adaptation and resilience as follows: (a) the name of the operation will be changed to ‘Adaptive Social Safety Nets Project’; (b) the PDO will be slightly modified to drop ‘food security’, with no impact on what the project intends to achieve, and the name of the components will also drop ‘food security’ to include ‘adaptive’ and ‘vulnerable’; (c) additional indicators on resilience and vulnerability will be included in the results framework indicators and target values will be adjusted; and (d) the closing date will be extended by two years until June 2019, thus allowing time for all target indicators to be reached. The World Bank Safeguard Policy on Pest Management (OP 4.09) has been triggered to reflect the activities that proposed to link selected safety nets beneficiaries with the IDA-Funded Climate Smart Agriculture Support Project (P153420). There will be no change in the project implementation arrangements as detailed below. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ X ] No [ ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ X ] No [ ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ X ] No [ ] Reallocation between Disbursement Categories Yes [ ] No [ X ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ X ] No [ ] Change in Procurement Yes [ X ] No [ ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] 8 Development Objective/Results PHHHDO Project’s Development Objectives Original PDO The PDO is to establish and support a safety nets system which will increase access of poor and food insecure households to cash transfer and Cash for Work programs. Change in Project's Development Objectives PHHCPDO Explanation: The word ‘adaptive’ was included in the revised PDO to reflect the expected impact of the proposed AF on resilience. For the purpose of this project, efficient adaptive safety net systems are defined as systems that are capable of protecting poor and vulnerable households from climate- related and other shocks before they occur, or helping them cope with the impact of these shocks by building resilience. It will be measured by an outcome indicator on the number of households with access to productive and behavioral accompanying measures, and by an intermediate indicator on the number of adaptive CFW microprojects executed. The ‘food-insecure’ qualifier, which captures both a chronic and transient dimension, was removed from the PDO with no impact on the project’s commitment to contribute to food security. Vulnerability for the purpose of this project is defined as ‘vulnerability to food insecurity due to exposure to risks and shocks’, and aims to capture the transient dimension of poverty. The proposed modification does not change the substance of the PDO, in the sense that the proposed combination of the terminologies ‘poor’ and ‘vulnerable’ in the revised PDO is expected to more accurately reflect the explicit program intention of targeting both the chronic (poor) and the transient (vulnerable) in response to shocks. Regarding the latter group, it will be measured by an outcome indicator on the percentage of ‘Cash for work and cash transfer scale up beneficiaries in departments identified as vulnerable by the DN”. Particularly, this indicator will rely on the number and location of program beneficiaries together with the geographical areas deemed to be vulnerable to food insecurity by the EWU of the DN on a yearly basis. Proposed New PDO - Additional Financing (AF) The PDO is to establish and support an effective and adaptive safety net system that will increase access of poor and vulnerable people to cash transfer and cash for work programs. Change in Results Framework PHHCRF Explanation: The results framework will be slightly modified to capture the strengthened focus of the project on resilience. More specifically, the following changes will apply to the outcome indicators:  All targets of indicators related to the number of beneficiaries will be adjusted to reflect the AF.  Indicators to measure the effect of the project on (a) Government capacity to implement adaptive Social Protection ( SP) programs and (b) vulnerability and resilience to shocks will be included. 9 The following changes are proposed for the intermediary indicators:  Update the target value of the indicators relative to the number of beneficiaries;  Remove indicators that are redundant or do not adequately capture progress in setting up an effective safety nets system;  Revise the formulation of the indicators measuring participation in the behavioral change component to more accurately capture the package of measures that were designed; and  Add an indicator to assess the impact of CFW on resilience. Compliance PHHHCompl Change in Safeguard Policies Triggered PHHCSPT Explanation: The project remains under environmental category B, primarily because of the limited and localized, potential negative impact of CFW. The potential risk of involuntary temporary resettlement also remains. The Bank policy on Environmental Assessment (OP 4.01) and on Involuntary Resettlement (OP 4.12) were triggered under the parent operation. The Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) of the parent project have been updated to reflect the AF, consulted upon by the Borrower and publicly disclosed in country on February 22, 2016 and at InfoShop on February 17 and 18, 2016. In addition, OP 4.09 on Pest Management has been triggered to reflect the support that will be provided for productive accompanying measures to increase agricultural productivity in partnership with the Climate Smart Agriculture Program. As part of these measures, the project may support, albeit on a small scale, the use of improved agricultural inputs including fertilizers, improved seeds, irrigation agriculture, and pesticides that will require environmental assessment to ensure potential adverse effects are mitigated. An Integrated Pest Management Plan (IPMP) was prepared, consulted upon by the Borrower, and publicly disclosed in country on February 22, 2016 and at InfoShop on February 17, 2016. The project is expected to be beneficial to the environment given its aim to ensure that the impact of climate change is mitigated, adaptation measures implemented and resilience is built into the production landscape. The project will ensure that modern efficient utilization of pesticide and fertilizer will be introduced and farmers trained in their applications that will have a positive impact on the environment compared to the status quo. Furthermore, a strict control mechanism will be put in place to avoid potential adverse impacts such as pollution from agricultural runoffs. Current and Proposed Safeguard Policies Current(from Current Proposed(from Triggered: Parent ISDS) Additional Financing ISDS) Environmental Assessment (OP) (BP 4.01) Yes Yes Natural Habitats (OP) (BP 4.04) No No 10 Forests (OP) (BP 4.36) No No Pest Management (OP 4.09) No Yes Physical Cultural Resources (OP) (BP 4.11) No No Indigenous Peoples (OP) (BP 4.10) No No Involuntary Resettlement (OP) (BP 4.12) Yes Yes Safety of Dams (OP) (BP 4.37) No No Projects on International Waterways (OP) (BP No No 7.50) Projects in Disputed Areas (OP) (BP 7.60) No No Covenants - Parent ( Niger Safety Net Project - P123399 ) PHHCAFPPrj Finance Ln/Cr/ Description of Recurren Agreement Date Due Status Frequency Action TF Covenants t Reference The Recipient has (i) established or designated an account in CFA Francs Finance (the "Project Agreement Account), in a IDA- Complied :Section bank 12-Oct-2011 No Change 49200 with 5.01 | acceptable to the Association, on terms and conditions satisfactory to the Association; The Recipient has provided CFS with the Finance resources and IDA- Agreement capacities Complied 12-Oct-2011 No Change 49200 :Section described in with 5.01 Schedule 3 to the Appraisal mission's Aide memoire 11 signed between the Recipient and the Association on March 18, 2011 The Recipient has prepared and adopted the Project Implementatio n Manual and Finance the Manual of IDA- Agreement Administrative Complied 12-Oct-2011 No Change 49200 :Section , Financial and with 5.01 Accounting Procedures, each in form and substance satisfactory to the Association The Recipient has recruited a coordinator, an administrative and financial Finance officer and a IDA- Agreement Complied procurement 12-Oct-2011 No Change 49200 :Section with officer, each 5.01 selected on the basis of terms of reference, qualifications and experience Recruitment of a cash transfer Finance manager, cash Agreement for work IDA- Complied :Schedule manager, 12-Jan-2012 No Change 49200 with 2, Section accompanying I.A.3.(B) | measures manager, internal 12 auditor, and monitoring and evaluation officer. Independent assessment of Finance the first phase Agreement IDA- of the cash 31-Dec- Complied :Schedule No Change 49200 transfer 2012 with 2, Section program II.A.2(a) (Subcomponen t 2.1). Recruitment of an independent Finance auditor for the Agreement IDA- assessment of 30-Nov- Complied :Schedule No Change 49200 the first phase 2012 with 2, Section of the cash II.A.2(b) transfer program. | Recruitment of Finance the Agreement IDA- independent 15-Dec- Complied :Schedule No Change 49200 financial 2012 with 2, Section management II.B.4 auditor. Recurrent audit of Finance payment Agreement IDA- system Complied :Schedule Quarterly Revised 49200 throughout the with 2, Section implementatio II.B.5 n of the Project. Finance Agreement Recurrent :Schedule audit of 2, Section payment IDA- II.B.5 system Complied Annual Proposed 49200 throughout the with This will implementatio be n of the integrated Project. with the 13 annual external audit exercise Recruitment of an Finance Independent Agreement IDA- Technical 01-Mar- Complied :Schedule Revised 49200 Auditor for 2013 with 2, Section recurrent audit II.B.6 of the payment system. Finance Agreement :Schedule 2, Section Recruitment of II.B.6 | an Independent IDA- This will Technical 01-Mar- Complied Proposed 49200 be Auditor for 2013 with integrated recurrent audit with the of the payment annual system. | external audit exercise Retroactive financing up to Finance an amount not After Agreement to exceed SDR IDA- 31-Aug- delay :Schedule 650,000 for No Change 49200 2011 complied 2, Section payments with IV.B.1(a) | made on or after January 1, 2011. Recruitment of a targeting Finance firm and Agreement completion of IDA- 12-Apr- Complied :Schedule targeting of No Change 49200 2012 with 2, Section beneficiaries; IV.B.1(b) | and entering into a contractual 14 agreement with a payment agency satisfactory in substance and form to the Bank. The Recipient has started disbursing under Category 2 and has carried Finance out the Agreement independent IDA- Complied :Schedule assessment 31-Jan-2013 No Change 49200 with 2, Section demonstrating IV.B.1(c) that the outcome is globally satisfactory and issues, if any, have been remedied Conditions HCondTbl Source Of Fund Name Type IDAT Condition of Effectiveness Effectiveness Description of Condition The Additional Condition of Effectiveness consists of the following, namely that the Co- financing Agreement has been executed and delivered and all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled. Source Of Fund Name Type Free-standing TFs Human Condition of Effectiveness Effectiveness Development Description of Condition The Additional Condition of Effectiveness consists of the following, namely that the Co-financing Agreement has been executed and delivered and all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled. 15 Risk PHHHRISKS Risk Category Rating (H, S, M, L) 1. Political and Governance Substantial 2. Macroeconomic Substantial 3. Sector Strategies and Policies Low 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Moderate 6. Fiduciary Substantial 7. Environment and Social Low 8. Stakeholders Low 9. Other OVERALL Substantial Finance PHHHFin Loan Closing Date - Additional Financing ( Adaptive Social Safety Nets Project - P155846 ) Source of Funds Proposed Additional Financing Loan Closing Date Adaptation Fund 30-Jun-2019 International Development Association 30-Jun-2019 (IDA) IDA Grant 30-Jun-2019 Loan Closing Date(s) - Parent ( Niger Safety Net Project - P123399 ) PHHCLCD Explanation: The closing date of the parent project will be extended by two years to ensure that all target indicators are met. As detailed in the project paper, the cost overrun of US$3.7 million experienced by the project during its first phase is impeding its ability to reach 30 percent of the number of beneficiaries planned under the CFW. The proposed AF will provide the resources and time extension needed to reach and exceed this target as the project expands to new areas. Status Original Closing Current Proposed Previous Ln/Cr/TF Date Closing Date Closing Date Closing Date(s) IDA- Effective 30-Jun-2017 30-Jun-2017 30-Jun-2019 49200 Change in Disbursement PHHCDA Arrangements Explanation: While all disbursement arrangements will be maintained, the client will be requested to open a 16 second Designated Account (DA) for the additional IDA resources, and a third DA for the ASPP TF. The disbursement table in section IV of Schedule 2 of each legal agreement details the percentage allocation based on which resources will be spent. Change in Disbursement (including all sources of Financing)PHHCDE Estimates Explanation: The additional resources would have some implications for the disbursement estimates which will be updated after the package has been approved as per World Bank procedure. Expected Disbursements (in USD Million)(including all Sources of Financing) Fiscal Year 2016 2017 2018 2019 Annual 3.00 9.00 15.00 4.00 Cumulative 3.00 12.00 27.00 31.00 Allocations - Additional Financing ( Adaptive Social Safety Nets Project - P155846 ) Disbursement %(Type Source of Category of Allocation Currency Total) Fund Expenditure Proposed Proposed (1a) Operating Costs, goods, works, non- ADPT USD consulting services and 0.00 consultants’ services and training under the Project 0 (1b) Goods, works, consultants’ services, ADPT USD Training and Operating 34.00 Costs under Part 1.2 and Part 2.2 of the Project 1.50 (2) Cash Transfers under ADPT USD 0.00 Part 2.1 of the Project 0 (3) Goods, consultants’ services, non-consulting ADPT USD services and Disaster Risk 100.00 Cash Transfers under Part 2.3 of the Project 1.25 (4) Cash for Work under 68.00 ADPT USD Part 3 of the Project 5.75 Total: 8.50 17 (1a) Operating Costs, goods, works, non- consulting services and IDAT XDR 7.40 100.00 consultants’ services and training under the Project (1b) Goods, works, consultants’ services, IDAT XDR Training and Operating 2.10 66.00 Costs under Part 1.2 and Part 2.2 of the Project (2) Cash Transfers under IDAT XDR 4.90 100.00 Part 2.1 of the Project (3) Goods, consultants’ services, non-consulting services and Disaster IDAT XDR 0.00 0.00 Risk Cash Transfers under Part 2.3 of the Project (4) Cash for Work under 1.90 32.00 IDAT XDR Part 3 of the Project Total: 16.30 Components PHHHCompo Change to Components and PHHCCC Cost Explanation: A detailed description of changes to the project components, including a financing table are included in annex 2. The following summarizes the changes proposed: Component 1. Building an Adaptive and Scalable Safety Net System (Original US$3.2 million; AF US$5.35 million; Total US$8.55 million). The proposed AF will improve the efficiency of the safety net system that was established under the parent project to promote better monitoring and coordination and to ensure that this system can be rapidly scaled up to respond to crises. Technical assistance will be provided to improve the capacity of the MIS for more efficient and timely targeting, identification, registration, and payment of beneficiaries. A Unified Social Registry (USR) will be elaborated to provide a common database on potential and actual beneficiaries. The support for the local field implementation and monitoring will continue and will be expanded (to the new regions of Agadez, Diffa, and Niamey) as needed. Support to the DN will also be provided at the technical and institutional level to (a) strengthen the capacity to monitor, coordinate, and plan safety nets interventions better and (b) improve the ability to scale up the safety net programs by anticipating the impact and occurrence of hazards and coordinating response to shocks. An impact evaluation of the productive accompanying measures introduced in the cash transfer component 18 will assess their effectiveness in improving household resilience. An impact evaluation of the public works component will be conducted to assess its effect on resilience, after additional measures to foster ownership, maintenance, and sustainability are put in place. An impact evaluation of the productivity accompanying measures to the cash transfer component will also be put in place. Policy dialogue for social protection will continue to be supported, with an emphasis on adaptive social protection. Component 2. Cash Transfers and Accompanying Measures (Original US$48.6 million; AF US$11.1 million; Total US$59.7 million). The proposed AF will continue implementation of regular cash transfers to poor households for 24 months, based on the parameters defined in the parent project and will help reach approximately 40,000 beneficiary households in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder. Activities will be extended to the regions of Diffa, Agadez, and Niamey where an additional estimated number of 8,500 beneficiary households will be reached. The existing package of accompanying measures will continue being offered to all cash transfer beneficiaries. However, a more extensive package of productive accompanying measures will also be developed and gradually introduced through this proposed AF to further strengthen the intervention on adaptation and resilience. An approximate number of 3,000 beneficiary households will be selected in a few regions and departments to pilot these additional integrated interventions. Finally, an estimated 5,000 households (distinct from the beneficiaries of the regular transfers) will receive cash transfers for 12 months through a disaster risk financing mechanism (DRF) in response to potential shocks. In total, this component will target an additional estimated 16,500 beneficiaries through the proposed AF. Component 3. Cash for Work for Resilience (Original US$10.5 million; AF US$8.4 million; Total US$18.9 million). The basic parameters of the interventions for this subcomponent will remain unchanged. The main difference is that the same villages and beneficiaries will be covered for two years in a row to increase resilience. The proposed AF will help the parent project reach its target of an estimated 60,000 beneficiaries by reaching an estimated 15,000 beneficiaries in 2016, who could not be reached because of the cost overrun of US$3.7 million experienced under the parent project. In addition, an estimated 30,000 beneficiaries (15,000 per year) will be targeted. A set of accompanying measures will be developed under the proposed AF to contribute to the sustainability of the microprojects and maximize their impact on resilience. First, the technical capacity of the NGOs will be strengthened to take into consideration issues related to land and property rights, land degradation, and resilience during implementation. Second, training and inputs will be provided to community-based committees to manage the microprojects and ensure their sustainability. Finally, when possible, training packages will be provided for program beneficiaries. Microprojects that can directly contribute to food security (for instance, nutritional crops and trees, composting, improved seeds, naturally assisted regeneration, zai, etc.) will be introduced where feasible. Exchange visits will be organized to facilitate learning and cross-fertilization of knowledge. Component 4. Project Management (Original US$7.7 million; AF US$6.150 million; Total US$13.850 million). This component will continue to cover expenditures related to the procurement of goods, works, services, and consultants and the costs of expanding the project to new areas. 19 Proposed Current Component Proposed Component Current Cost Action Name Name Cost (US$M) (US$M) Building an Adaptive Safety Net System and Scalable Safety Nets 3.20 8.50 Revised System Cash Transfers and Cash Transfers for Accompanying 48.60 59.70 Revised Food Security Measures Cash for Work for Cash for Work 10.50 18.90 Revised Resilience Project Management Project Management 7.70 13.85 Revised Total: 70.00 101.00 Other Change(s) PHHHOthC PHImplemeDel Implementing Agency Name Type Action Cellule Filets Sociaux, Cabinet du Implementing Agency No Change Premier Ministre Change in Financial PHHCFM Management Explanation: Detailed information on FM arrangements, reporting, audit and disbursement arrangements are presented starting in paragraph 25 of the present project paper. There are no significant changes to the FM arrangements of the project. The CFS will continue to be responsible for FM of the operation. The overall FM risk rating remains unchanged as Substantial following the risk assessment conducted which considered mainly (a) the design of the project which includes transfers of cash to a large number of beneficiaries located in geographically dispersed areas and (b) the accounting system currently in place that does not facilitate the monitoring of the effective utilization of the funds transferred to various beneficiaries at central and decentralized levels. To mitigate these risks, the staffing arrangement will be strengthened with the appointment of one assistant to complement the internal auditor. Furthermore, the mandate and frequency of meetings of the steering committee (Comité de Pilotage, CP) will be improved, as well as the participation of the beneficiaries to mitigate the risks identified. The configuration of the current accounting software ‘TOM2PRO’ will be updated. The existing FM procedures manual which was prepared during the original phase of the project will be used for the purpose of this proposed AF following minor updates to reflect the aspects of the proposed AF. All these actions and measures are dated covenants (to be implemented within three months following the proposed AF effectiveness date). 20 Change in Procurement PH Explanation: Detailed information on procurement arrangements are included starting in paragraph 27 of the present project paper. Procurement activities for this proposed AF will continue to be carried out by the CFS and procurement arrangements will remain the same. The procurement performance for the original project has been rated Moderately Satisfactory during implementation thus far and the procurement risk is Substantial. As a mitigation measure proposed for the proposed AF, the manual of administrative, financial and accounting procedures of the initial project shall be updated to take into account the proposed AF. Change in Implementation PHHCISch Schedule Explanation: Project closing date will be extended by two years to allow for the completion of all activities. IV. Appraisal Summary Economic and Financial Analysis PHHASEFA Explanation: The updated economic and financial analysis of the cash transfer component continues to show that the level of transfer is (a) within the guidelines of the international experience (15 percent of the poverty line and between 10 and 20 percent of households expenditure levels); (b) likely to make an impact on food consumption, assets, and level of other social expenditures; and (c) efficient compared to other safety nets, in particular direct food aid. The Cash for Work component is also cost-effective (estimated cost-effectiveness of wage transfer in Niger is 0.45) and compares well with other international projects. This is due to its high labor intensity of activities, the effective geographical and household level targeting, and the low foregone income from participation. The needs of the chronic poor and food-insecure people in Niger are significant. A transfer of CFAF 10,000 per month to 20 percent of the population (the chronically food-insecure) would cost approximately CFAF 50 billion, equivalent to 1.3 percent of GDP and may be difficult to sustain in the current budget environment. In any given year, the proposed AF will cover 51,000 extremely poor households (16,000 for direct transfers and 45,000 for CFW) representing almost 10 percent of the chronically poor population in Niger, and will cost approximately CFAF 6.7 billion (including 10 percent of administrative costs), equivalent to 0.2 percent of GDP and 0.5 percent safety nets programs of Government expenditures. This will not increase the current Government annual expenditure for safety net programs by a significant portion, but will provide the needed coverage during years of non-crisis and reduce the need for less efficient emergency measures after crisis. Technical Analysis PHHASTA Explanation: All changes proposed are detailed in the section titled "Proposed Changes" of the project paper. 21 Social Analysis PHHASSA Explanation: No change Environmental Analysis PHHASEnvA Explanation: Safeguard policy 4.09 on Pest Management has been triggered to reflect the productive accompanying measures that will seek to increase agricultural productivity. An IPMP has been developed and disclosed in-country on February 22, 2016 and at InfoShop on February 17, 2016, before appraisal. Other safeguards instruments developed for the parent operation (the ESMF and the RPF) have been updated to reflect the AF, and re-disclosed in-country on February 22, 2016 and at InfoShop on February 17 and 18, 2016 before appraisal. Climate Risk Assessment. The original parent project and the proposed AF have been screened for climate risks. In fact, the project design is intended to improve the resilience of the Nigerien population to risks, including climate risks. The safety net system is being built and strengthened to ensure that it can be scaled up rapidly to respond to crises, including climate-induced crises, by providing increased support to existing clients and/or by extending coverage to new beneficiaries in the event of a shock. Some of the cash transfers and CFW interventions will be supplemented by an expanded package of accompanying measures under the proposed AF. These measures are designed to make beneficiaries more resilient to shocks and could include alternative livelihood options that are less weather-dependent or improvements to agricultural productivity through partnership with the Climate Smart Agriculture program. In addition to CFW, NGOs will be trained to take into consideration issues related, among others, to land degradation and resilience. Microprojects that can directly contribute to food security (for instance, nutritional crops and trees, composting, improved seeds, naturally assisted regeneration and water catchments) will be introduced where feasible. Risk PHHASRisk Explanation: Since approval of the parent operation, project-related risks have been downgraded to reflect lessons learned and improvement in the capacity of the implementing agency over the past years. The risk related to technical design was reduced from Moderate to Low: whenever possible, operational plans and technical design have been simplified. For instance, rather than working with banks or mobile companies to facilitate beneficiary payments, the project has opted for partnering with micro-finance institutions who have a strong coverage and network in the country. The risk related to Institutional Capacity for Implementation and Sustainability was reduced from Substantial to Moderate: The CFS has developed strong familiarity with WB policies and guidelines. At the project level, the AF proposes changes to improve the quality of the micro- projects and build community capacity to effectively manage these micro-projects and enhance 22 their long-term impact on resilience. At an institutional level, the government has maintained its commitment to food security and resilience by continuously improving the mandate of the DNPGCCA. The AF is proposing to invest resources in strengthening the DNGPCCA, which will contribute towards sustainability. The Fiduciary Risk is downgraded from High to Substantial: The mid-term review has formulated some recommendations that are being implemented to strengthen fiduciary controls within the CFS. The project implementation team has developed strong familiarity with WB policies and Guidelines on fiduciary management. The Environmental and Social Risk is reduced from Moderate to Low: The Grievance and Management Redress System has promoted effective communication with the beneficiaries. Targeting mechanisms are technically sound and minimize political interference in the beneficiary selection process. A full-time environmental and social specialist has been recruited to assist the project in effectively anticipating and addressing risks related to compliance with environmental safeguards. Stakeholders Risks have been reduced from Moderate to Low: 3 years of successful program implementation has ensured key stakeholders buy in of the project. Policy dialogue is ongoing with development partners to help the government identify the most effective targeting approach. However, the overall implementation risk remains Substantial to reflect the political, macroeconomic, fiduciary and social fragility and low capacity context. V. Institutional and Implementation Arrangements 23. There are no changes to the institutional and implementation arrangements of the project. The CFS, which was established under the Office of the Prime Minister on December 16, 2010 through arrêté no. 0236 will continue to be responsible for project implementation. The objective of this unit continues to be the management of funds made available by the Government of Niger (GoN) and other partners for safety nets project. This unit maintains good governance principles and best practices in designing appropriate institutional arrangements to implement Safety net projects. The CFS still consists of three subunits: (a) Comité de Pilotage (steering committee), (b) Technical Management Unit (Unité de Gestion Technique, UGT), and (c) CFS regional offices for each region where the project operates (Antennes Régionales, AR). The key staff of the CFS include a coordinator, a specialist in cash transfers, a specialist in CFW, an administrative and financial officer, an internal auditor, a monitoring and evaluation expert, a specialist in communications, a specialist in safeguards, an information management specialist, and a procurement officer. Two specialists are assigned to work on the behavioral change accompanying measures with support from UNICEF. The CFS performance in project management is satisfactory continuously for the last 12 months. A social development specialist will be recruited to provide strong technical oversight for the design and implementation of the accompanying measures on resilience. The CFS will continue to recruit contractors (including NGOs and firms) to carry out the activities planned under each component in compliance with the project implementation manual. Capacity of both the CFS and its contractors will be built 23 with funds provided through Component 4 of the Adaptive Safety Nets Project, and with technical assistance from the Bank (financed by the Bank-executed portion of the ASPP). Regional authorities and technical services of the Government will continue to be involved in targeting, activity identification and supervision according to principles and guidelines that are specified in the project implementation manual. Financing 24. The project is supported by two main sources of funds: (a) an additional IDA grant of US$22.5 million and (b) a Department for International Development (DFID) TF grant of US$8.5 million to be managed through a recipient-executed TF. Table 1 below provides a breakdown of estimated current and proposed costs by component for the whole project including IDA 49200, the proposed AF IDA grant and the proposed TF grant from the ASPP. 24 Table 1. Financing by Project Components (in US$, thousands) Parent MDTF IDA Total AF Total operation Component 1: Setting up adaptive and scalable safety nets systems 3,200 500 4,850 5,350 8,550 1.1 a Making the functioning of the Safety Net System more efficient 450 450 1.1 b Elaborating a USR 300 300 1.1 c Supporting the functioning of the System (Field Operators) 1,450 1,450 1.2 Building national capacity to coordinate safety nets interventions and respond more 500 1,700 2,200 effectively to crisis 1.3 Establishing mechanisms to monitor and evaluate interventions to promote resilience 950 950 0 Component 2: Cash Transfers and Accompanying Measures 48,600 2,250 8,850 11,100 59,700 2.1 Cash transfers Extension (8,500+3,000) - Payment 6,700 6,700 2.1 Cash transfers Extension (8,500+3,000) - Admin Cost 1,000 1,000 2.2 Accompanying measures 1,000 1,150 2,150 2.3 Disaster risk financing of cash transfers (5,000) – Transfers 1,000 1,000 2.3 Disaster risk financing of cash transfers (5,000) – Admin costs 250 250 0 Component 3: Cash For Work and accompanying measures 10,500 5,750 2,650 8,400 18,900 3.1 Cash For Work microprojects 4,250 1,950 6,200 3.2 Accompanying measures 1,500 700 2,200 Component 4: Project Management 7,700 6,150 6,150 13,850 Not allocated Total 70,000 8,500 22,500 31,000 101,000 25 FM Reporting, Auditing and Disbursement Arrangements 25. The FM arrangements and the FM performance of the CFS, the implementing agency, under the parent project are acceptable to IDA. The CFS will continue to be responsible for FM of the proposed AF and remains the Bank focal point. The CFS is familiar with the Bank FM requirements and is currently managing the first phase of this IDA-financed project. The FM of the AF will follow the same approach as the implementation arrangements in place for the ongoing project managed by the CFS. The current FM staffing including the appointment to the project of one FM manager, one accountant and one assistant accountant at central level, and one regional accountant in each of the five regions is adequate. The FM team is supported by an internal auditor whose performance has been assessed to be acceptable although some capacity strengthening is needed. The overall FM risk rating remains unchanged as Substantial following the risk assessment conducted which took into account mainly (a) the design of the project which includes transfers of cash to a large number of beneficiaries located in geographically dispersed areas and (b) the accounting system currently in place does not facilitate the monitoring of the effective utilization of the funds transferred to various beneficiaries at central and decentralized levels.  To mitigate these risks, the staffing arrangement will be strengthened with the appointment of one assistant to complement the internal auditor. Furthermore, the mandate and frequency of meetings of the CP will be improved as well as the participation of the beneficiaries to mitigate the risks identified. The configuration of the current accounting software ‘TOM2PRO’ will be updated. The existing FM procedures manual which was prepared during the original phase of the project will be used for the purpose of this proposed AF following minor updates to reflect the aspects of the proposed AF. All these actions and measures are dated covenants (to be implemented within three months following the proposed AF effectiveness date).  The unaudited Interim Financial Reports (IFR) are prepared every quarter and submitted to the Bank regularly ( 45 days after the end of each quarter) on time. The frequency of the preparation and submission of IFR as well as the format and content will remain unchanged.  The internal audit function contracted to an individual consultant will be strengthened. The team will be strengthened with the appointment of one assistant internal auditor. The Terms of Reference (TOR) of the current internal auditor will be updated to cover the AF activities as well as the reporting line including communication of internal audit reports. The internal audit reports will be communicated to the coordinator and directly to the CP with copy to the Bank team. The finding of internal audit reports will be presented and discussed during the CP meetings.  There is no overdue audit report in the project and the sector at the time of preparation of the AF. The audit report of the project managed by the CFS covering the period ending on December 31, 2014 was submitted on time; the external auditor expressed an unqualified opinion. The next audit report of IDA- financed projects in the sector in Niger is due on June 30, 2016. The accounts of the 26 proposed AF will be audited on an annual basis and the external audit report will be submitted to IDA not later than six months after the end of each calendar year; as it is happening to the ongoing phase 1 of the project. The TOR of the current external auditing firm will be updated to reflect the scope of the proposed AF. The project will comply with the Bank disclosure policy of audit reports and place the information provided on the official website within one month of the report being accepted as final by the team.  Upon grant effectiveness, transaction-based disbursements will be used. The grant will finance 100 percent of eligible expenditures inclusive of taxes. Two new DA (DA-B and DA-C) will be opened in a commercial bank under terms and conditions acceptable to IDA. The ceiling of the DA-B and DA-C will be established at CFAF 500 million and CFAF 200 million respectively which represents four months of forecasted project expenditures expected to be paid from each DA. An initial advance up to the ceiling of each DA will be made and subsequent disbursements will be made against submission of Statements of Expenditures (SOE) reporting on the use of the initial/previous advance. The option to disburse against submission of quarterly unaudited interim financial report (also known as the report-based disbursements) could be considered, as soon as the project meets the criteria. The other methods of disbursing the funds (reimbursement, direct payment, and special commitment) will also be available to the project. The minimum value of applications for these methods is 20 percent of the DA ceiling. The project will sign and submit withdrawal applications electronically using the eSignatures module accessible from the Bank’s Client Connection website. Funds will be disbursed as is happening in the current ongoing phase, on the basis of budget depicted under a work plan.  Based on the current overall residual FM risk which is substantial, the project will be supervised at least twice a year to ensure that project FM arrangements still operate well and funds are used for the intended purposes and in an efficient way. 27 Categories of Expenditure Table 2.a: Categories of Expenditures Amount of the Financing Percentage of Expenditures Category Allocated (expressed in to be Financed US$ million) (inclusive of Taxes) (1a) Operating Costs, goods, works, non- consulting services and consultants’ 10.30 100% services and training under the Project (1b) Goods, works, consultants’ services, Training and Operating Costs under Part 2.85  66% 1.2 and Part 2.2 of the Project (2) Cash Transfers under Part 2.1 of the 6.70  100% Project (3) Goods, consultants’ services, non- consulting services and Disaster Risk Cash Transfers under Part 2.3 of the 0.00  0% Project (4) Cash for Work under Part 3 of the 2.65  32% Project TOTAL AMOUNT 22.50 73% Table 3.b: Categories of Expenditures for the MDTF Grant Percentage of Category Amount of the Grant Expenditures to be Allocated Financed (expressed in US$) (inclusive of Taxes) (1a) Operating Costs, goods, works, non- consulting services and consultants’ services and training under the Project 0 0% (1b) Goods, works, consultants’ services, Training and Operating Costs under Part 1.2 and Part 2.2 of the Project 1,500,000 34% (2) Cash Transfers under Part 2.1 of the Project 0 0% (3) Goods, consultants’ services, non- consulting services and Disaster Risk Cash Transfers under Part 2.3 of the Project 1,250,000 100% (4) Cash for Work under Part 3 of the Project 5,750,000 68% TOTAL AMOUNT 8,500,000 28 Procurement Capacity Assessment and Remedial Actions 26. Procurement activities for this proposed AF will be carried out by the unit which is managing the parent project (the CFS) and procurement arrangements will remain the same, based on findings from an updated capacity assessment that was carried out in October 2015. The procurement performance for the original project has been rated Moderately Satisfactory during implementation thus far and the procurement risk is Substantial. As a mitigation measure proposed for the AF, the manual of administrative, financial and accounting procedures of the initial project shall be updated to take into account the proposed AF. Management of Procurement Process for the proposed AF 27. Procurement arrangements. The institutional procurement arrangement for the proposed AF will remain the same as the initial financing. The CFS will continue to manage procurement activities according to the approved procurement plan. Procurement for the proposed project will be carried out in accordance with general Bank guidelines for procurement,3 and the provisions stipulated in the Legal Agreement. The Borrower will prepare and submit to the Bank a General Procurement Notice (GPN) which will be in addition to the GPN of the SNP. The Borrower will publish this additional GPN in United Nations Development Business (UNDB) online and in local newspapers of wide national circulation. The Bank will arrange for its publication in UNDB online and on the Bank’s external website. 28. Shortlists for consultancy services for contracts estimated to cost less than US$200,000 for civil works supervision, and less than US$100,000 for others equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 29. Requirement for National Competitive Bidding (NCB). Works, goods, and non- consulting services contracts will use NCB procurement methods in accordance with national procedures using standard bidding documents acceptable to IDA and subject the additional requirements:  Each bidding document and contract financed out of the proceeds of the financing shall provide that (a) the bidders, suppliers, contractors and their subcontractors, agents, personnel, consultants, service providers, or suppliers shall permit the Association, at its request, to inspect all accounts, records and other documents relating to the submission of bids and contract performance, and to have said accounts and records audited by auditors appointed by the Association and (b) the deliberate and material violation of such provision may amount to an obstructive practice as defined in paragraph 1.16 (a)(v) of the Procurement Guidelines. 3 ‘Guidelines Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers’ dated January 2011 revised July 2014 ‘Guidelines Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers’ dated January 2011, revised July 2014, and the ‘Guidelines On Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants,’ dated October 15, 2006 and revised in January 2011. 29  Invitations to bid shall be advertised in national newspapers with wide circulation.  The bid evaluation, qualification of bidders and contract award criteria shall be clearly indicated in the bidding documents.  Bidders shall be given adequate response time (at least four weeks) to submit bids from the date of the invitation to bid or the date of availability of bidding documents, whichever is later.  Eligible bidders, including foreign bidders, shall be allowed to participate.  No domestic preference shall be given to domestic contractors and to domestically manufactured goods.  Bids are awarded to the bidder with the lowest bid evaluated, provided this bidder is qualified.  Fees charged for the bidding documents shall be reasonable and reflect only the cost of their printing and delivery to prospective bidders, and shall not be so high as to discourage qualified bidders. 30. Procurement plan. The Borrower has developed an initial procurement plan (dated February 26, 2016) for project implementation which provides the basis for the procurement methods. It will also be available in the project’s database and in the Bank’s external website. The procurement plan will be updated in agreement with the CFS annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. All subsequent updates will be disclosed once they are approved by the Bank. 31. Procurement and consultant selection method. Table 3 summarizes the procurement methods and consultant selection methods for this proposed AF 30 Table 4. Procurement Thresholds Contract Value No Expenditure category Procurement Method Threshold**(US$) 1 Works C ≥ 5 000,000 ICB 50,000 ≤C < 5 000,000 NCB C < 50,000 Shopping All values Direct contracting Goods and services (other than 2 C ≥ 500,000 ICB consultant services) 50,000 ≤ C < 500,000 NCB C < 50,000 Shopping All values≤ Direct contracting 3 Consultant services ( firms) C ≥ 200,000 firms QCBS, QBS <200,000 firms QCBS, FBS, CQS, LCS All values SSS Individual consultant All values IC All values SSS Note: ICB – International Competitive Bidding, QBS – Quality Based Selection, NCB – National Competitive Bidding, FBS – Fixed Budget Selection, QCBS – Quality and Cost-Based Selection method, CQS – Consultants’ Qualification Selection( for Contracts below 100 000 US$) IC – Individual Selection method, LCS – Least Cost Selection, SSS – Single Source Selection 32. Procurement prior review. The procurement risk is rated Substantial. Table 4 summarizes the procurement prior review thresholds for ‘Substantial risk’. These prior review thresholds can evolve according to the variation of procurement risk during the life of the proposed AF. All terms of references, regardless of the value of the contract and the selection method, are subject to prior review. 31 Table 5: Prior Review Thresholds for Substantial Risk Amount in S.No Expenditure Category Amount in US$ Equivalent CFAF 1 Works ≥10 000 000 ≥5 000 000 000 Goods and non- 2 ≥1 000 000 ≥500 000 000 consulting services 3 Consultant services ≥500 000 ≥250 000 000 All direct contracting and single source 4 Works ≥100 000 ≥50 000 000 contracts with consultant (firms) Goods ≥100 000 ≥50 000 000 Consultants ≥100 000 ≥50 000 000 services Individual consultants 5 ≥100 000 ≥50 000 000 (Single source contracts) Individual consultants 6 (based on comparison of ≥200 000 ≥100 000 000 CVs) 33. Operational costs. Operating costs financed by the project are incremental expenses arising under the project, and are based on annual work plans and budgets approved by the association. Such costs may include office rent and maintenance, utilities (including electricity, water, and gas), communications (including telephone and internet charges), equipment rent, operation and maintenance; office materials and supplies (stationary and other consumables, but not the purchase of equipment), lease of vehicles, operation, maintenance and repair, and travel and transport cost of the staff associated with project implementation. These items will be procured using the procedures detailed in the manual of procedures, which was reviewed and found acceptable to the Bank. 34. Frequency of procurement supervision. In addition to the prior review supervision to be carried out by Bank offices, the capacity assessment of the implementing agencies has recommended two field supervision missions and at least one post-procurement review per year. The standard post-procurement reviews by Bank staff should cover at least 10 percent of contracts subject to post review. Post reviews include reviewing technical, financial and procurement reports on project procurement actions by Bank staff or consultants selected and hired by the Bank according to procedures acceptable to the Bank. Project supervision missions shall include a Bank Procurement Specialist or a specialized consultant. 35. Fraud, coercion, and corruption. The implementing agencies as well as bidders and service providers (suppliers, contractors, and consultants) shall observe the highest standards of ethics during the procurement and execution of contracts financed under the project in 32 accordance with paragraphs 1.16 and 1.17 of the Procurement Guidelines and paragraphs 1.23 and 1.24 of the Consultant Guidelines, in addition to the relevant articles of the Niger Public Procurement Code which refers to corrupt practices. Project procurement activities will be carried out in accordance with the ‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’ dated 15 October 2006 and updated in January 2011. VI. SAFEGUARDS 36. The proposed project is building on the footprint of its parent project with the aim to expand in three new regions. Since the same type of activities will be kept and given the scope, nature and scale of foreseen activities under both Components 2 and 3, the proposed project will remain category B, trigger the same safeguards policies and use the same instruments slightly updated to capture both lessons learnt from the parent project and specific characteristics of the additional three regions. The Borrower has updated the existing two safeguards instruments, namely an ESMF and a RPF. A pest and pesticide management plan has been elaborated to take into consideration the activities that will be conducted to increase agricultural productivity. All safeguard instruments have been publicly disclosed both in-country and at Infoshop prior to project appraisal. 37. These frameworks provide strategic steps to be used to comply with the core requirements of policies once details of the physical footprint are known prior to project implementation. The Borrower will thus build upon these to prepare additional site-specific environmental and social safeguards instruments, such as environmental and social impacts assessment/management plan and/or resettlement action plan wherever deemed necessary. 38. The project is socially sound and gender inclusive since most of the project activities under Components 2 and 3 have a great focus on gender and vulnerable groups aiming at improving the livelihood of project beneficiaries, in both the short and longer term. Moreover, both the civil works and food-for-work activities embed a great deal of capacity building which overtime are expected to strengthen the capacity of beneficiaries to sustain their livelihood and living conditions. VII. World Bank Grievance Redress 39. Communities and individuals who believe that they are adversely affected by a Bank- supported project may submit complaints to existing project-level grievance redress mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address project-related concerns. Project- affected communities and individuals may submit their complaint to the Bank’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of the Bank’s noncompliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s corporate GRS, please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank Inspection Panel, please visit www.inspectionpanel.org. 33 ANNEX I: Results Framework and Monitoring Niger Adaptive Social Safety Nets Project . Project Development Objectives Original Project Development Objective - Parent: The project development objective (PDO) is to establish and support an effective safety net system which will increase access of poor and food insecure people to cash transfer and cash for work programs. Proposed Project Development Objective - Additional Financing (AF): The project development objective is to establish and support an effective and adaptive safety net system that will increase access of poor and vulnerable people to cash transfer and cash for work programs 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 Households with access to the Number Value 0 73,634 126,500 safety net programs established by the Project Date 31-Dec-2011 31-May-2015 30-Jun-2019 Comment All households benefiting from Cash transfers and cash for work programs New Households with access to the Number Value 44,888 44,888 96,500 cash transfer programs Sub Type Date 14-Dec-2015 30-Jun-2019 Breakdown Comment This includes 34 the number of households receiving the scaled up cash transfers New Households receiving scaled up Number Value 0.00 0.00 5,000 cash transfer assistance through the disaster risk financing Sub Type Date 25-Feb-2016 30-Jun-2019 mechanism Breakdown Comment New Households with access to the Number Value 0.00 10,000 30,000 cash for work programs Sub Type Date 14-Dec-2015 31-May-2015 30-Jun-2019 Breakdown Comment Number of individuals targeted by the cash for work programs divided by 2, with the assumption being that the program may target up to 2 people per households New Households benefiting from Number Value 0.00 107,100 accompanying measures Sub Type Date 25-Feb-2016 30-Jun-2019 Breakdown Comment The target represents 90% of cash for work households and all households benefiting from 35 the regular cash transfers (excluding beneficiaries from emergency and disaster risk financing interventions) Revised Direct project beneficiaries Number Value 0.00 540,748 759,000 Date 29-Jun-2011 31-May-2015 30-Jun-2019 Comment Total number of households benefiting from cash transfers and cash for work programs multiplied by 6 No Change Female beneficiaries Percentage Value 0.00 50.22 50.00 Sub Type Supplemental Marked for Individuals with access to the Number Value 0.00 28,746 60,000 Deletion cash for work program Date 31-Dec-2011 31-May-2015 31-Dec-2017 Comment cumulative per year Revised Percentage of villages Percentage Value 0.00 98.50 85.00 receiving payments based on the frequency specified in the Date 31-Dec-2011 31-May-2015 30-Jun-2019 implementation manual Comment Revised Targeted cash transfer Percentage Value 0.00 79.00 70.00 households who are poor Date 29-Jun-2011 31-May-2015 30-Jun-2019 36 Comment The target indicator does not include beneficiaries from scaled up intervention, and may be affected by the study on targeting New Unified Social Registry is Number Value 1.00 2.00 established Date 25-Feb-2016 30-Jun-2019 Comment Four milestones will be listed as sub-indicators and will help assess progress towards achieving the final target. The milestones will be included in the list of sub- indicators, and will each be rated on a yes/no basis (0 for no, 1 for in progress, and 2 for yes). The final target of the main 37 indicator will tally the grade attributed to all sub-indicators, and a text will rate the success in achieving the target. New A common database is Number Value 1.00 2.00 functional and shared with at least 3 partners Sub Type Date 25-Feb-2016 30-Dec-2016 Breakdown Comment New The institution identified to Number Value 0.00 2.00 manage the database is functional Sub Type Date 25-Feb-2016 30-Jun-2018 Breakdown Comment New The Government legally Number Value 0.00 2.00 identifies the institutional anchorage of the national Sub Type Date 25-Feb-2016 30-Jun-2017 database Breakdown Comment Sub Type Date 25-Feb-2016 30-Jun-2019 Breakdown Comment New Cash for work and DRF cash Percentage Value 0.00 70.00 transfer beneficiaries in departments identified as Date 25-Feb-2016 25-Jun-2019 vulnerable by the DN Comment New Effectiveness of national SP Number Value 1 4 systems to address CA and DRM Date 25-Feb-2016 30-Jun-2019 Comment Composite A rating of 4 indicator with corresponds to 38 ratings from 1 the following: to 6 [see the Government results has an overall framework of strategy for ASP the adaptive and a set of social programs, which protection TF aim to improve for details on resilience the rating through clear system and links to CCA scales]. A and DRM. rating of 1 corresponds to the following: the SP system has no clear links with CCA and DRM and Government has no plans for such links. No existing SP strategy with CCA and DRM aspects included. New Capacity of Niger’s social Number Value 3.00 5.00 protection systems to implement adaptive social Date 25-Feb-2016 30-Jun-2019 protection programs Comment Composite A rating of 5 indicator with corresponds to ratings from 1 the following: to 6 [see All elements of results the core SP 39 framework of system are the adaptive operational, but social are not used protection TF correctly/efficie for details on ntly the rating system]. A country system will include a set of programs and following elements (available for certain programs or system wide): (i)Dedicated institutions and staff; (ii) Targeting system – Criteria established, list of potential beneficiaries available; (iii) MIS functioning – Capable of storing potential and actual beneficiaries, generate lists for 40 registration, payment and follow-up; (iv) Existence and effectiveness of payment system; (v) Existence and effectiveness of the grievance mechanisms; (vi) Existence and effectiveness of monitoring and evaluation. A rating of 3 corresponds to the following: Some elements of the core SP system have been developed and are operational, but are not used correctly/effici ently Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target New Micro-projects that are Percentage Value 0.00 80.00 41 functional at the end of each Date 25-Feb-2016 30-Jun-2019 calendar year Comment New The monitoring and Yes/No Value No Yes evaluation mechanism of the DNPGCCA is fully operational Date 25-Feb-2016 30-Jun-2018 and processing the data of all Comment the units of the DNPGCCA. Marked for Community works Percentage Value 0.00 100.00 95.00 Deletion implemented in accordance with the PIM guidelines Date 31-May-2015 Comment Marked for People (broken down by Number Value 0.00 28,746 60,000 Deletion gender) participating in cash for work activities Date 31-May-2015 Comment Marked for Targeted households having Percentage Value 0.00 0.00 60.00 Deletion adopted the 5 out of 8 essential family practices by the end of Date 31-Dec-2011 31-May-2015 31-Dec-2017 the cycle Comment Marked for Localities that have completed Percentage Value 0.00 100.00 95.00 Deletion the trainings Date 31-Dec-2011 31-May-2015 31-Dec-2017 Comment Marked for Beneficiaries paid annually Number Value 0.00 44,867 55,000 Deletion through the established payment system Date 31-Dec-2011 31-May-2015 31-Dec-2017 Comment Marked for Beneficiaries selected through Number Value 0.00 42,634 80,000 Deletion the PMT system Date 31-Dec-2011 31-May-2015 31-Dec-2017 Comment 42 Marked for MIS system generates regular Text Value No No Yes Deletion reports of adequate quality Date 31-Dec-2011 31-May-2015 31-Dec-2017 Comment Revised A management information Text Value No Yes Yes system is developed and functional Date 31-Dec-2011 31-May-2015 30-Jun-2019 Comment Revised The impact evaluation is Text Value No NA Yes generating lessons Date 31-Dec-2011 31-May-2015 30-Jun-2019 Comment Revised Beneficiary households that Number Value 0.00 42,634 89,100 have been identified and registered to receive monthly Date 31-Dec-2011 31-May-2015 30-Jun-2019 transfers for a 24-month period Comment Does not include beneficiaries of emergency and DRF interventions Revised Households participating in the Percentage Value 0.00 93.07 90.00 accompanying measures (participation rate) Date 31-Dec-2011 31-May-2015 30-Jun-2019 Comment Revised Registered families who are Percentage Value 0.00 99.38 95.00 receiving the transfers Date 31-Dec-2011 31-May-2015 30-Jun-2019 Comment Revised Days of temporary employment Number Value 0.00 1,462,036 3,600,000 (broken down by gender) Date 31-Dec-2011 31-May-2015 30-Jun-2019 43 Comment Revised Number of days of work Number Value 0.00 433,176 1,800,000 created for women Sub Type Date 31-Dec-2011 31-May-2015 30-Jun-2019 Breakdown Comment Revised Number of days of work Number Value 0.00 1028860 1800000 created for men Sub Type Date 31-Dec-2011 31-May-2015 30-Jun-2019 Breakdown Comment Revised Community infrastructures Number Value 0.00 23.00 600 created/ rehabilitated Date 31-Dec-2011 31-May-2015 30-Jun-2019 Comment New Microprojects that are Percentage Value 0.00 80.00 functional 12 months after the Sub Type end of each calendar year Supplemental Revised (a) land rehabilitated Number Value 0.00 121,850.56 250,000 Sub Type Date 31-Dec-2011 31-May-2015 30-Jun-2019 Breakdown Comment Marked for (b) Rural roads rehabilitated Number Value 0.00 0.00 Deletion Sub Type Date 31-May-2015 Breakdown Comment Revised Project management expenses Text (inferior or Value 10.00 Yes (7.13%) Yes ratio equal to 10 percent) Date 31-Dec-2011 30-Nov-2014 30-Jun-2019 Comment 44 New A Grievance Redress Text Value Yes Yes Yes Mechanisms is in place in all communities targeted Date 31-Dec-2011 30-Nov-2014 30-Jun-2019 Comment 45 ANNEX II: Description of Activities Supported by the Additional Financing Component 1: Building an Adaptive and Scalable Safety Nets System (Original US$3.2 million; AF 5.350 million; Total US$8.55 million) 1. The proposed AF will improve the efficiency of the safety net system that was established under the parent project to promote better monitoring and coordination and to ensure that this system can be rapidly scaled up to respond to crises. The following subcomponents will be implemented:  Subcomponent 1.1: Strengthening the functioning of the safety net system. Efforts will be made to improve the capacity of the system for more efficient and timely targeting, identification, registration, and payment to beneficiaries. The Management Information System (MIS) will be further developed to support the use of electronic identification cards for cash payments, tested, and eventually scaled up. Additional modules will be developed to monitor the implementation of all project activities, including the accompanying measures being introduced to strengthen the impact of the project on resilience (Subcomponents 2.2 and 3.2). Support will also be provided for the elaboration of a Unified Social Registry (USR) to provide a common database on potential and actual beneficiaries of selected social programs. Policy dialogue involving the participation of key stakeholders (including Government and technical and financial partners) is currently ongoing with support from the Bank-executed Trust Fund (TF) for Adaptive Social Protection in the Sahel. Activities will also include supporting the design of the USR, identifying its institutional anchorage, and agreeing on key operational principles. Resources will be allocated through the proposed AF to finance the implementation of the USR, namely hardware, software, database management, and communication technologies. The proposed AF will also help elaborate rules for data management and sharing. Finally, the support for local field implementation and monitoring will be continued and expanded as needed.  Subcomponent 1.2: Building national capacity to coordinate safety net interventions and respond more effectively to crisis. Support will be provided at the technical and institutional levels to anticipate the impact and occurrence of hazards and coordinate response to shocks. This will be pursued through two subcomponents: (a) strengthen the Government capacity to better monitor and coordinate safety nets interventions and (b) Ensure the scalability of the safety net system.  Subcomponent 1.2.a: Monitoring, coordination, and planning support. With regard to monitoring and planning, the technical assistance provided will consist of a review of the capacity of the Government to (a) monitor recent, ongoing, and planned interventions; (b) mobilize resources; and (c) disseminate up-to-date information on shocks. The quality and range of information systems on food prices, food security, vulnerability, and shocks will ultimately provide the backbone to conduct programmatic analysis and plan interventions. 2. The proposed AF will build the capacity of the monitoring and evaluation unit to review and synthesize data collected, share this information with policymakers and development partners, thereby informing effective policy and program response, and ensure complementarity with existing crisis response activities. The proposed AF will also support the Early Warning Unit (EWU) of The National Institution for the Prevention and Management of Catastrophes and 46 Food Crisis (Dispositif National de Prevention et de Gestion des Catastrophes et des Crises Alimentaires DNPGCCA or DN) to identify key indicators and sources of data that can accurately identify crises in the target geographic regions. The currently available data sources can be expanded by integrating missing relevant information, such as detailed price information, and using additional data sources to complement the satellite data. High quality data will enable the Government and the CFS to respond to crisis in a rapid, transparent, and accountable manner. The project will closely collaborate with other disaster risk management projects that are setting up systems and procedures to review, analyze, and disseminate vulnerability data within the EWU. 3. A centralized database of Cash for Work (CFW) activities will be set up in close collaboration with Bank-funded projects and other partners of the DN. It will include all available information to ensure the monitoring and programming of the response (stakeholders in each commune, ongoing interventions and/or those carried out, the type of intervention, duration of the intervention, the resources used, the number potential, and real beneficiaries). The database will first document CFW activities of Bank-funded projects with links to resilience, and will gradually be extended to include microprojects implemented by other partners. This will enhance the coordination and synergies between all the actors involved in the development and humanitarian sector. 4. Support provided will include consultant and non-consultant services to share information about the project with the public and with key stakeholders. Adaptive Social Protection will be better reflected in the project’s communication plan, and support will be provided to the DN to use communication as a tool for more effective prevention and response to shocks. 5. Subcomponent 1.2b: Ensuring the scalability of the safety nets system. This subcomponent will help the Government strengthen existing systems and the institutional framework to support the cash transfer program’s ability to scale-up assistance to poor and vulnerable households during a crisis. Such a mechanism would allow the Government to provide assistance more rapidly, supporting vulnerable households’ consumption during a crisis, thereby protecting livelihoods and assets. To develop the scalable cash transfer system, the project will strengthen the Government’s capacity to (a) establish an institutional framework for the scale-up, including establishment of a triggering mechanism and decision-making framework; (b) present the information that is required by policy-makers to drive decisions about costs of alternative scenarios; and (c) identify and select key indicators to analyze and identify when a crisis is unfolding (and thus when a scale-up is needed). The project team will work with key national and local institutions to develop these functions, focusing on key agencies in the permanent secretariat, in addition to other critical ministries such as the Ministry of Finance. 6. The scalability of the system will be piloted in selected districts to generate adequate evidence and operational capacity in the Government on which to base the design of a possible extension of the program. If a crisis is identified, funds managed by the CFS through Subcomponent 2.3 (on disaster risk financing) would be rapidly disbursed to scale-up the cash transfer activities temporarily and provide support to core clients and/or to extend coverage to new beneficiaries in the identified region. The exact details of what would trigger the scale-up 47 and which expenditures would be eligible in the event of a scale-up will be detailed clearly in the Operations Manual. 7. In addition, the support provided by this subcomponent will complement ongoing policy dialogue that is funded by the Bank-executed portion of the ASPP to achieve the institutional reform needed to improve coordination, accountability, and decision making within the DN. To achieve the above objectives, the following activities will be conducted:  Provide the permanent secretariat and its decentralized structures with sufficient resources (material and support for the recruitment of consultants) to ensure coordination function of the DN activities, including effective monitoring  Provide training for key agencies in the permanent secretariat, as well as other key ministries, on a range of topics related to Subcomponent 1.2b including data analysis and selection and designing the rules governing the scaling-up process  Support the development of analytical tools that can be used by policy makers to drive decisions about costs of alternative scenarios  Define institutional collaborative mechanisms for the management and sharing of information between different stakeholders (for example, humanitarians, civil society, and donors) and the rules of access to information  Promote internal dialogue between the units by the establishment of a regular dialogue and exchange framework  Conduct advocacy to the Government and its financial and technical partners for the establishment of a budget line for the benefit of the DN to ensure the sustainability of the coordination activity beyond the project life cycle. 8. Resources will be allocated to this subcomponent for the purchase of equipment, the elaboration of operation guidelines and procedures, the organization of collaborative events, the recruitment of consultants, and the establishment of offices. 9. Subcomponent 1.3: Establishing mechanisms to monitor and evaluate interventions to promote resilience. A randomized impact evaluation of the cash for work component will be conducted to assess its impact on resilience, after additional accompanying measures to foster ownership, maintenance, and sustainability of the infrastructures produced under the scheme are put in place. This prospective evaluation will focus on the determinants of microprojects completion, maintenance, and sustainability, and on microprojects’ appropriation by communities. These may include (a) communities’ capacity to manage the microprojects, (b) technical knowledge on land restoration, and (c) intensity of subproject monitoring. The evaluation will provide evidence not only on projects and community-level impacts but also on how they translate into households’ increased resilience. Resources will be allocated to training activities and workshops, purchase of tools and equipment, and recruitment of consultants to develop and administer surveys, monitor the CFW interventions, and review and analyze data collected. A randomized impact evaluation of the productive accompanying measures introduced 48 in the cash transfer component will assess their effectiveness in improving household resilience. Alternative productive accompanying measures will be implemented, including testing the mix of training and cash that is most effective in facilitating livelihood diversification, raising productivity and earnings, as well as fostering household resilience. Component 2: Cash Transfers and Accompanying Measures (Original US$48.6 million; AF US$11.10 million; Total US$59.7 million) 10. Subcomponent 2.1: Cash transfers. The proposed AF will continue implementation of cash transfers based on the parameters defined in the parent project and will help reach 8,500 beneficiary households in the regions of Dosso, Maradi, Tahoua, Tillabéry, and Zinder. Activities will be extended to the regions of Diffa and Agadez, and to the administrative capital of Niamey. An additional 3,000 beneficiary households will be selected in a few regions and departments to pilot specific integrated interventions. The project will continue to identify the poorest households to receive FCFA 10,000 (equivalent to US$20) per month for 24 months. 11. Subcomponent 2.2: Accompanying measures. In addition to the existing package of accompanying measures, which will continue to be offered to all cash transfer beneficiaries, a more extensive package of assistance will be developed and gradually introduced to all beneficiaries through this proposed AF to further strengthen the impact of the intervention on resilience. A specific combination of integrated accompanying measures will be piloted for the additional 3,000 beneficiary households mentioned above. The expanded accompanying measures to be introduced are described below. 12. Subcomponent 2.2.a: Productive measures to support the promotion of resilient livelihoods. The Bank-executed TF on Adaptive Social Protection will facilitate the recruitment of a consultant to design a package of assistance geared toward fostering resilient livelihoods among beneficiaries. The proposed AF will finance the delivery of this assistance which may include part of the following:  Strengthening the operation of the community savings promotion activities through trainings on financial education. These activities were originally introduced to complement the cash transfers by mobilizing beneficiaries to save through a community-based group methodology (tontines).  Promotion of resilient livelihoods. Alternative livelihood options with a high income generating potential will be introduced and relevant technical training will be provided to the beneficiaries. Small grants to test these livelihoods and finance income diversification and assets building will be provided.  Linking beneficiaries with microfinance institutions and/or banks to gain access to credit  Support to improve agricultural productivity through partnership with the Bank- funded Climate Smart Agriculture Program. The project may support, albeit on a small scale, the use of improved agricultural inputs, including fertilizers, improved 49 seeds, irrigation, and pesticides. Trainings on alternative livelihoods and financial education will also be developed. 13. Subcomponent 2.2b: Promoting behavioral change to contribute to resilience. The accompanying behavioral measures on which training is currently provided primarily focus on nutrition, sanitation, and early childhood development. Its scope and delivery will be further adjusted based on the results of the ongoing impact evaluation, including to ensure effectiveness and quality implementation during scale-up. 14. Subcomponent 2.3: Disaster risk financing for cash transfers. This subcomponent will provide resources to scale up the existing cash transfer program to provide assistance to poor and vulnerable households in response to shocks. It is envisioned that up to 5,000 beneficiaries will receive FCFA 100,000 (equivalent to US$20) per month for 12 months in the event of a disaster. The mechanisms and systems developed through Subcomponent 1.4 will help the Government identify triggers that will determine when to activate the scale-up. Component 3: Cash for Work for Resilience (Original US$10.5 million; AF US$8.4 million; Total US$18.9 million) 15. The basic parameters of the interventions for this subcomponent will remain unchanged. Implementation arrangements will be slightly modified based on lessons learned during the midterm review of the parent project with no impact on the implementation arrangements described in the existing legal documents. Participants will continue to receive a cash benefit of FCFA 1,300 equivalent to (equivalent to US$2.5) per day for 60 days of work. The benefit has been set by the Government as a standard to be applied by all such programs and has been calibrated to be low enough to attract only those participants with no other more attractive livelihood alternatives or employment opportunities. In addition, the microprojects will be implemented in the same villages for two years to maximize their impact on resilience. Microprojects that can directly contribute to food security (for instance, nutritional crops and trees, composting, improved seeds, naturally assisted regeneration, and zai4 ) will be introduced where feasible. Exchange visits will be organized to facilitate learning and cross-fertilization of knowledge. 16. Subcomponent 3.1: Cash for work microprojects. The proposed AF will help the parent project reach its target of 60,000 beneficiaries (15,000 per year) by reaching 15,000 beneficiaries in 2016, who currently cannot be reached because of the cost overrun of US$3.7 million experienced under the parent project. In addition, an estimated 30,000 beneficiaries (15,000 per year) will be targeted. 17. Subcomponent 3.2: Accompanying measures. A set of accompanying measures will be developed under the proposed AF to contribute to the sustainability of the microprojects and maximize their impact on resilience. 18. First, the technical capacity of the NGOs will be improved to consider issues related to land and property rights, land degradation, and resilience in the implementation of microprojects. 4 External water catchments 50 19. Second, a set of training and inputs will be provided to community-based committees which may include (a) community capacity to manage the microprojects and ensure their sustainability; (b) management of land and/or property rights; (c) microprojects monitoring; and (d) small grants. The content of these accompanying measures will be defined in a way that communities can learn from successful experiences in neighboring/similar villages in community assets management. The CFS will implement these accompanying measures in a way that facilitates the impact evaluation planned under Component 1. 20. The third set of accompanying measures targeting individual beneficiaries may include some of the elements of the revised productive measures planned under Subcomponent 2.2.a. Component 4: Project Management (Original US$7.7 million; AF US$6.150 million; Total US$13.850 million) 21. This component will continue to cover expenditures related to the procurement of goods, works, services, and consultants. A small regional office will be opened in the region of Agadez, while a liaison office will be opened in the region of Diffa. This component will also continue to support activities to improve accountability and transparency in the use of project resources, which include the following:  Field-based sampling verifications/spot checks. These field-based verifications are conducted on a random sample of program communities and seek to assess the program’s operational processes particularly with a view toward ensuring adherence to design and improving operational efficiency and information flows.  Audits. Regular audits including financial, technical, and procurement. 51 MAP 52