Report No. PID7324 Project Name Armenia-Social Investment Fund II (@) Region Europe and Central Asia Region Sector Social Funds & Social Assistance Project ID AMPE57952 Borrower(s) REPUBLIC OF ARMENIA Implementing Agency Address MINISTRY OF FINANCE AND ECONOMY Address: Ministry of Finance and Economy 1, Government House Republic Square Yerevan 375010 Armenia Contact Person: Mr. Levon Barkhudarian, Minister of Finance and Economy Tel: (374-2) 595-255 Fax: (374-2) 151-069 Environment Category F Date PID Prepared April 6, 2000 Projected Appraisal Date January 31, 2000 Projected Board Date May 11, 2000 1. Country and Sector Background The main sector issues in Armenia include:Social Protection: (i) widespread and severe poverty in Armenia with 55% of the population estimated to be living in poverty; (ii) extremely high and stagnant unemployment equivalent to 25% of the labor force; (iii) growing number of ethnic Armenian refugees currently estimated at 33,000 living in temporary dwellings with some 13,000 refugees living in very poor conditions; (iv) poor targeting of social assistance; and (v) the threat of the emergence of social exclusion as a result of long-term structural poverty.Social Sectors: serious under-funding of the social sectors, weak institutional structures and management capacity contributing to the deterioration of the quality and access to services.Public Sector: (i) lack of a comprehensive decentralized policy and in particular, the lack of a clear delineation of roles and rights of cities; (ii) institutionally weak local governments as a result of limited local capacity and resources for carrying out local government activities, especially at the village level; and (iii) lack of viable community based institutions for partnerships with local governments.Infrastructure: (i) limited public resources and tightening of public expenditures in Armenia which have contributed to deteriorating social and other infrastructure; and (ii) lack of attention given to financial and institutional arrangements for operation and maintenance of existing infrastructure.The current reform strategy of the Armenian Government is to consolidate economic growth, ensure the social sustainability of the reform process, and preserve Armenia's stock of highly-skilled human capital. The strategy will help reach the poor more effectively through: (i) improving targeting of social assistance; (ii) accelerating the development of the private sector to sustain growth and generate employment; (iii) supporting the social sector reforms; and (iv) promoting community outreach programs. 2. Objectives The aim of the proposed Armenia Social Investment Fund II Project (ASIF II) Project is to assist the Government of Armenia in its continuing endeavor to improve living standards of the lower income groups among the Armenian population and strengthen institutions at the local level. This will be achieved through the improvement of basic social and economic infrastructure, short-term employment opportunities, community outreach, and local capacity building. The ASIF II project will support the Government's decentralized initiatives through an integrated institutional approach to enhance community participation and empowerment at the local level. The specific objectives of the project are to:(i) Improve basic social and economic infrastructure that can result in immediate improvements of the living conditions of the poorest among the population.(ii) Develop partnerships at the local level between the local government authorities and communities through effective outreach programs to improve planning, coordination, management, and information dissemination activities.(iii) Enhance greater stakeholder participation and empowerment at the local level, through decentralization activities which will provide clearer roles, and greater accountability for the local governments and communities in the design, implementation, sustainability of microprojects, and the eventual transition to direct contracting of works.(iv) Promote institution building and social capital formation at the local level focusing on strengthening local government and communities in decentralized management of basic public services.(v) Promote private sector development by creating opportunities for the local construction industry, fostering competitive bidding processes, and by training small-scale contractors.The ASIF II Project will build upon the work carried out under the ASIF I Project which has generated a visible development impact in terms of social and economic benefits to the poorest communities of Armenia. The majority of microprojects proposed and carried out in the communities involved small-scale school rehabilitation, potable water supply and irrigation works. At a broader level, the project has given primacy to the active involvement of community members in decisions which affect the quality of their lives by putting in place a framework for greater stakeholder participation. It has promoted self-help mechanisms, increased the sense of community ownership, promoted greater cohesion among members, and has set the foundation for future social investment fund operations. Building on the experience of the previous project, a key feature of the ASIF II project will be to forge and strengthen institutions at the local level which can serve as effective vehicles for individual and community empowerment. 3. Rationale for Bank's Involvement The proposed ASIF II project is an integral part of the continuing effort in supporting the Government of Armenia in carrying out its poverty reduction strategy involving a number of sectoral policies. These policies are in line with the Bank's strategy in Armenia, the prime focus of which is on consolidating economic growth and ensuring social sustainability. In response to the poverty assessment conducted in Armenia in 1997, the ASIF II Project will focus on the need for higher priority to human resources in structural adjustment. The Project will have very strong linkages with the Government's health and education - 2- programs, where the Bank is actively involved. Specifically, the value added of Bank support will be: (a) enhanced microproject quality through better technical design, strict adherence specifications, improved procurement procedures, and better supervision; (b) poverty targeting based on an improved methodology for regional allocations of funds to reach the poor, and improved criteria for project selection; (c) ensuring cost effectiveness in the use of project funds by closer monitoring through an upgraded MIS, and a cost accounting system; (d) greater stakeholder participation at the local level through decentralization of activities, with clear roles for local government and communities in the preparation, design, implementation, and maintenance of microprojects; and (e) capacity building at the local level focusing on community participation, strengthening of local government in decentralized management and financing systems, greater transparency in local government programs, and reinforcing partnerships between central government, local government, and communities. Finally, this project will enhance the sense of empowerment of the poor whereby they gain an appreciation of their own ability and potential to act for their own self-improvement. 4. Description 1. Rehabilitation of Small-Scale Social and Economic Infrastructure: 1.1. Financing sub-projects for the rehabilitation or upgrading of schools, health clinics, water supply systems, sanitation works, and irrigation. 1.2 Financing sub-projects for the rehabilitation of school heating systems. 1.3 Financing of school furniture (desks, chairs, blackboards, etc.) as part of the construction of new schools. 1.4 Capacity building and technical assistance to local contractors and Implementing Agencies. 1.5 Financing of consultant services for microproject design and supervision. 2. Local-Level Institutional Strengthening 2.1 Capacity building and TA to local governments. 2.2 Capacity building and TA to community-based organizations. 3. Institutional Support to the ASIF: 3.1 Capacity building and technical assistance to ASIF staff. 3.2 Financing of special studies, assessments, and reviews. 3.3 Financing of vehicles and equipment. 3.4 Support to general administration and management of the project. 3.4 Financing of annual financial, procurement, and technical audits. 5. Financing Total ( US$m) Government 1.61 IBRD IDA 20 COMMUNITIES 2.19 MULTIPLE DONORS 3.18 OTHER 2.56 Total Project Cost 29.54 6. Implementation Experience of ASIF I Project: The ASIF II Project will benefit from the -3 - institutional and implementation arrangements already in place under the ASIF I Project. After close to four years in operation, the ASIF has gained valuable experience in all aspects of project management and administration, laying a solid foundation for the ASIF II Project. Several beneficiary assessments conducted on the ASIF I Project have revealed the high performance and dedication of the ASIF staff as perceived by the communities benefiting under the project. Close and frequent supervisions in the field together with special reviews, studies and assessments carried out under the ASIF I project covering technical and procurement issues, qualitative impact assessments of the benefits of the project, in-depth technical assessment of the impact of the project under a mid-term review, and annual audits, have greatly benefited the ASIF. I. Institutional Set-up and Administrative Structure of the ASIF II: In the course of preparing the ASIF II Project, the Government indicated their intention to grant the SIF a special status by establishing the ASIF II as a Fund, in accordance with Articles 123 - 124 of the Civil Code of the Republic of Armenia. The ASIF II as a Fund will administer its operations as an autonomous entity, and will be governed by its Board, with full authority to manage and administer its program under operating guidelines and procedures set out in the project's Operational Manual. The ASIF II will recruit office staff and technical consultants on a competitive basis according to qualifications and selection criteria set-out in the Finance and Personnel Administration Manual. The ASIF II will also have the authority to enter into consultant services and civil works contracts and to manage the project's financial accounts. The independent set-up of the ASIF will be critical to ensure that the ASIF will carry out its day-to-day operations in an efficient and effective manner. The organizational structure ( see Organizational Chart in Annex 11) of the ASIF II Project has been restructured to meet the institutional challenges and evolving needs under the enhanced scope of the project. The novel features of this structure is its focus on the enhancement of the quality of works and institutional support covering community outreach activities, training and technical assistance, microproject procurement, as well as monitoring and evaluation. The organization will be governed by a Board, chaired by the Prime Minister. The duties and responsibilities of the Board at the institutional level will be to appoint the Director of the ASIF and approve the recruitment of staff as Heads of Departments. At the administrative level the Board will guide and supervise the administration and operations of the ASIF program in accordance with the Decree and the Operational Manual. At the technical level, the Board will be responsible for reviewing and approving quarterly and annual reports, key studies on technical and procurement reviews, and ASIF microprojects when required by the Operational Manual. In addition to routine Board meetings, the participation and involvement of the Board will be enhanced under the ASIF II project by setting up periodic field visits for Board members to demonstration projects, and by organizing yearly workshops and seminars with key stakeholders on special project related themes. The review and approval of microprojects will remain the responsibility of the Executive Committee composed of the Executive Manager and the Heads of the ASIF's five Departments. It will have the responsibility for: (i) approval of microprojects of a size of US$100,000 or less; (ii) reviewing and approving the annual work plans and budgets; (iii) reviewing on a case by case basis proposed reductions for community contribution; and (iv) reviewing and approving revisions to the project's Operational Manual. The Executive Director will chair the committee -4 - meetings and will be responsible for coordinating, mediating and documenting the decisions of the committee meetings, and reporting to the Board and to the Bank on key issues addressed at Committee meetings. The ASIF II Project Implementation Unit (PIU) will be headed by the Executive Director and will comprise five Departments including Institutional Support, Microprojects, Procurement, Finance and Administration and Management Information (see Annex 11 for detailed description of roles and functions). A comprehensive technical assistance program has been developed to support the expanded scope of activities and to enhance the quality of output in the ASIF II PIU. In particular, this program will finance the services of foreign and local advisors/supervisors in quality of works, microproject procurement, MIS and cost accounting, and compliance with the Operational Manual. These services will initially respond to the intensive needs at the project start-up phase and will be provided thereafter on a periodic basis during project implementation. II. Implementation Arrangements: The project would be implemented over a period of five and half years (FY 2000-2005) in accordance with the Project Implementation Schedule. The timetable of activities draws from the valuable information and experience gained in the planning and implementation of activities under the ASIF I project. Implementation arrangements under the ASIF II Project will be governed by the guidelines and procedures set out in the Operational Manual (OM). The OM will be approved by the ASIF II Board and will be adopted as a legal document. The OM has been upgraded as a result of the lessons learned and the experience gained in the management and implementation of the first social investment program in Armenia. The refined and upgraded version of the OM defines the roles and responsibilities of the new institutional structure in the ASIF, processes, and procedures covering administrative arrangements for project implementation. A separate manual is also being developed on technical norms and standards for every type of works covered in the social investment programs. The key institutions in the ASIF II implementation, and their respective roles are described below.1) Project Implementation Unit (PIU): The PIU (also referred to as the ASIF Office) is responsible for the overall management and administration of the ASIF II project. Each of the Departments in the PIU will be managed by a Manager and comprise a number of specialized units. The Institutional Support Department, a newly created department, will consist of three sub-Units: a Community Outreach and Promotion Unit, a Training and Technical Assistance Unit, and a Monitoring and Evaluation Unit. The Microproject Department includes three Units covering Appraisal, Estimation and Follow-up. The Procurement Department consists of a Procurement Unit and a Legal Unit. The Finance and Administration Department consists of two Units on Accounting, and General Administration. The Management Information Department will consist of a Data Generation Unit and an Office Technology Unit. These Departments will provide technical and administrative support on ASIF operations under each stage of the Microproject cycle involving promotion, project identification and preparation, appraisal, approval and implementation, supervision and monitoring. 2) Implementing Agency (IA): The community-based organization, referred to as the local implementing agency (IA), is directly responsible for microproject implementation. The IAs will be responsible for the identification, prioritization of needs and consensus building on small-scale investment priorities which maximize public benefit projects for their communities. Lessons under the ASIF I have shown that effective participation at the community level comes from - 5 - the active participation of local governments and established community associations as members of the IA. These institutional entities are important, particularly for: (a) asset management, operations and maintenance of the facilities renovated or rehabilitated under the microprojects; and (b) improvement of programs and services provided at the local level. The composition of the IA under the ASIF II will therefore enforce this partnership by including representatives from the local government, established community associations (i.e. schools councils, WUAs, and condominium associations) and community members. The IA will be responsible for microproject proposal, design, up-front collection of a financial and in-kind contribution consisting of 10; of total project costs, and operation and maintenance of facilities. The IA will also take charge of procurement, implementation and reporting to the community on the progress of the microprojects. 3) Private Contractors: Private local contractors will compete for microproject contracts for design and rehabilitation works. Contractors will be supervised by the IA and a qualified local on-site supervisor. Experience under the ASIF I project has shown that the local supervisor selected by the IA, often times is not qualified to carry out adequate supervision of works. To counter this problem, under the ASIF II project, local supervisors will be recruited by the ASIF under a competitive basis. Contractors will be paid directly from the ASIF II PIU based on certified statements and accomplished works that meet quality standards.4) Local Government: Under the Armenian laws on Urban Development and on Local Self-Governments, local authorities are responsible for community planning. All the processes related to urban planning activities are to be undertaken at the local level and financed from the local budget. These activities cover key social assets/infrastructure frequently targeted by communities as a priority for rehabilitation through the SIF. The ASIF II project will address the capacity building needs of local governments in these areas through a comprehensive Action Plan for the Local-Level Institutional Strengthening component. In addition to the capacity building efforts at the local level focusing on decentralized planning and management systems, the Action Plan also focuses on: (i) developing partnerships at the local level between local government authorities and communities through effective outreach programs; and (ii) enhancing stakeholder participation at the local level, through decentralization activities.Procurement and Disbursement: Procurement and disbursement arrangements have been developed based on the experience and lessons learned under the ASIF I project. The PIU will open and maintain the Special Account for IDA disbursement purposes. The PIU will also open and maintain four additional accounts for: the Government's counterpart contribution; the communities' cofinancing of microprojects; microproject sponsors; and cofinanciers respectively. These accounts will be autonomous and will be audited annually by an accredited auditing firm. Procurement Arrangements under the project have been designed taking into account the capacity of the ASIF PIU to implement project procurement, which was assessed during the Appraisal mission. As a result of this assessment, a Procurement Action Plan was developed providing a list of recommendations to strengthen the procurement capacity of the ASIF. Based on these recommendations, technical assistance and training programs on procurement related activities have been incorporated as part of the financing under the project. Financial Management, Accounting and Auditing: The Finance and Personnel Administration Manual will set out procedures relating to financial management, accounting and auditing. This manual will provide - 6 - comprehensive source of information on the various aspects of the Entity's regulations, organization, activities, accounting and financial procedures, internal controls and flow of funds. The ASIF II will also benefit from the qualified and trained staff of the Finance and Administration Department under the ASIF I project. Staff in this Department have acquired substantial experience in carrying out the administrative, accounting and reporting functions needed to ensure accountability for the operations of the ASIF. Audit: The records, accounts and financial statements (balance sheets, statement of income, and expenses and related statements) for each fiscal year will be audited, in accordance with auditing standards acceptable to the Bank, consistently applied, by independent auditors acceptable to the Association. A certified copy of the audit report will be submitted to the Bank no later than six months after the end of each fiscal year. Monitoring and Evaluation: Project monitoring activities will the responsibility of the ASIF II PIU, contracting out these functions when appropriate. Monitoring activities under the project will entail a process for reviewing continuously and systematically different aspects of project implementation. The objectives of the monitoring and evaluation activities would be to: (a) ensure that procedures carried out for implementing microprojects, executing contracts and managing project accounts are in compliance with the Operational Manual; (b) provide information regularly on progress toward achieving desirable results and facilitating reporting to the Board of Directors, the Government and donors; (c) alert managers to actual or potential problems in implementation so that adjustments can be made; and (d) determine how the project is affecting the intended beneficiaries. The monitoring and evaluation framework of the ASIF II would comprise: (i) microproject monitoring by ASIF II staff and Implementing Agencies; (ii) the Management Information System (MIS), (iii) annual technical, procurement and audit reviews; (iv) annual beneficiary impact assessments; and (v) Bank supervision missions. A special Monitoring and Evaluation Unit will be set up under the newly created Institutional Development Department of the ASIF II to facilitate and coordinate monitoring and evaluation activities under the project. 7. Sustainability The ASIF II project will focus on enhancing institutional arrangements that can lead to social benefits for the project that are sustainable in the long-run. This will be achieved under a comprehensive institutional framework designed to support the wider process of developing, managing, operating and maintaining infrastructure facilities. Under this approach, sustainability will be achieved through the provision of the following incentives at the local level: (i) economic efficiency - the benefits of operating and maintaining facilities exceeding the full set of direct and indirect costs; (ii) accountability - local authorities being accountable to citizens concerning the development, use, operation and maintenance of a public facility; (iii) forming an effective partnership at the local level through the active involvement/participation of institutionally effective local governments and key local community groups in decentralized planning and management systems; (iv) client satisfaction with quality of works; and (v) generation of short-term employment at the local level. 8. Lessons learned from past operations in the country/sector - 7- The ASIF II Project will focus on the following critical areas, drawing from the lessons learned from the ASIF I Project:(i) Poverty Targeting: Experience of ASIF I has underlined the need to improve poverty targeting. The poverty targeting strategy under the ASIF II Project is designed to reach the poor more effectively and further refine the approval criteria and typology of microprojects. Elements of this strategy include: (a) a revised methodology for regional allocation using a formula based on two factors: the share of population and the degree of a region's poverty, as measured by the poverty score (computed from selected poverty indicators from each region and special needs of earthquake and border regions) -- using data from the 1996/97 Household Survey, pending the availability of more recent data; (b) revised approval criteria (see Annex 13) for microprojects based on need and conditions of infrastructure facilities, cost per beneficiary, and the capacity of the IAs; (c) changes in the typology to better reflect the emerging community demands (e.g. school heating systems to facilitate attendance during the winter months); and (d) a monitoring and evaluation system for assessing poverty targeting under the ASIF II.(ii) Sectoral Policies and Investment Priorities: ASIF I has made significant progress in ensuring its activities are consistent with social sector strategy priorities, government reform programs, and activities of municipal, NGO, UN, and other donor agencies. However, the Mid-Term Review carried out in April 1998, and subsequent missions have indicated the need for improving inter-sectoral and inter-agency coordination. Accordingly, the ASIF II Project will focus on greater coordination of social fund activities with relevant sectoral policies (i.e. health and education) and investment priorities. This will be achieved through: (a) the development of a more effective information, outreach, and communication strategy, and its implementation through a special Community Outreach and Promotion Unit within the ASIF office; and (b) regular working level contacts among the line ministries, NGOs, donor agencies, and Bank project management units. A handbook on information, outreach and inter-agency coordination has already been developed and will be distributed to local governments and communities during promotion. This handbook will be updated regularly, both at the sector-policy and operational levels, to assist ASIF in carrying out the above functions. (iii) Quality of Works. Since the start of ASIF I, the quality of microprojects has progressively improved due to the experience gained by the ASIF staff, improved quality of designs, microproject supervision by technical experts, and supervision by microproject designers for the more complex facilities. Building upon this experience, measures to improve the quality of works will be further intensified. These comprise improved procedures for ensuring: (a) the inclusion of detailed technical specifications for all microproject types; (b) the inclusion of technical specifications and delivery periods in bid documents; (c) selection of winning bids based on lowest price at the required quality; (d) the use of quality control monitoring techniques by ASIF staff at the follow-up stage; (e) training of ASIF staff on all aspects of quality enhancement and procurement; and (f) training of contractors on technical standards and ASIF procedures. These measures will be carried out under the Quality of Works Enhancement and Procurement Action Plans. (iv) Sustainability: The implementation of the ASIF I project has clearly demonstrated the critical need to improve project sustainability through a comprehensive framework encompassing strong institutional support from the ASIF office, effective systems and procedures, and greater involvement of the key stakeholders. Accordingly, - 8 - the ASIF II under a strengthened organizational structure focuses on institutional mechanisms to: (a) improve quality of works through compliance with technical standards and closer supervision; (b) develop the capacity of local authorities through training and technical assistance to help formulate budgets which provide adequate financing for operation and maintenance of completed microprojects; and (c) strengthen local government and community involvement in the design, implementation, and maintenance of microprojects. The ASIF II will put primacy on capacity-building and at improving the ability of community groups to progressively enhance their roles as active agents in their communities with a greater sense of commitment, ownership and accountability in service delivery on a sustainable basis. (v) Local Capacity Building: One of the objectives of ASIF I has been to build the capacity of local government staff and communities so that they can prepare and implement microprojects. While some progress in this direction has been achieved, the training efforts have been insufficient due to the lack of an effective, well staffed institutional unit within the ASIF and a lack of a well structured training program. The ASIF II will focus heavily on delivering the needed capacity building service by identifying the best resources available to assist with the development of this essential component. This will be achieved through: (a) the creation of a special Training and Technical Assistance Coordination Unit in ASIF, with trained staff who will be responsible for assessing, organizing, and coordinating training and technical assistance at the local level; (b) enhanced microproject training programs for local governments and communities in the preparation, design, implementation, and operation and maintenance of microprojects, as well as on ASIF procedures and methods of ensuring quality of works, though the services of qualified trainers, additional resources and better organization and management of training programs; (c) new training programs for local government officials in financial management, budgeting, taxation and asset management, building on the work of other donors in these areas; (d) sector specific training programs for community-based organizations and community members involved in microproject activities; and (e) special training to contractors on technical norms and standards, competitive bidding processes, and ASIF procedures.(vi) Monitoring and Evaluation: Based on the experience of ASIF I, emphasis will be placed on the continued use of monitoring mechanisms such as beneficiary assessments, client satisfaction surveys, and other more directly participatory methods of client involvement in monitoring and evaluation to monitor outcomes on the ground. The aim is to develop and set-up a systematic approach to monitoring and evaluating the impact of development activities and adjusting related policies and programs on a continuing basis. For this purpose, a special Monitoring and Evaluation Unit will be created within the ASIF Office to systematically collect data from other departments, analyze such data and prepare regular progress reports for review and decision making by ASIF Management. The ASIF II project will benefit from monitoring and evaluation carried out through procurement and technical reviews, the mid-term review, and supervision missions. In addition, provision has been made under the ASIF II project for: (a) five impact assessments, one at the end of each year; and (b) special studies to be selected from areas such as project sustainability, stakeholder participation, skill transfers, and institutional development. (vii) Cost Efficiency: The cost-effectiveness analysis of ASIF I microprojects, carried out recently, as well as findings of the pre-Appraisal mission have highlighted the need for: (a) information on -9- the full cost of microprojects, including ASIF overheads, on a more accurate and explicit basis; (b) continually monitoring the cost of microprojects through well designed progress reports; (c) developing a framework for implementing cost efficiency measures; and (d) a framework for formulating budgets for future years. These issues will be addressed through the design and implementation of a cost accounting system, as part of the upgraded MIS. The cost accounting system will provide ASIF Management, on a quarterly basis, with a well organized information system to ensure cost effective use of public funds in meeting the basic social infrastructure needs of the poor. Such information will also be transmitted in quarterly progress reports to the Bank to help assess the cost effectiveness in the use of IDA and public funds in meeting the social infrastructure needs of the poor.(viii) Community Contribution: One of the effective mechanisms for community participation and local resource mobilization adopted by the ASIF has been the mandatory community contribution (in cash and in kind). This local contribution requirement provides communities with incentives for choosing investments with high public good value as well as motivation for operation and maintenance of microprojects. The principal forms of monetary contributions will include: (a) monetary contributions including allocations from local authorities, contributions from community members, and contributions from alternate sources; (b) labor contributions from community members; and (c) in-kind contributions, mainly construction materials. The new operational manual reflects this change. 9. Program of Targeted Intervention (PTI) Y 10. Environment Aspects (including any public consultation) Issues : No major environmental issues are anticipated under the proposed ASIF II project given the relatively small size and rehabilitation nature of most microprojects. However, certain microproject types such as water supply rehabilitation schemes to be funded under the project may require special environmental mitigation measures to protect quality of the water source (in-situ and upstream). Environmental mitigation measures may also be needed in the case of sewage, sanitation systems and irrigation rehabilitation works sub-projects. Environmental concerns will be mitigated in the selection and implementation of sub-projects. The Operational Manual of the project includes procedures and implementation arrangements for ensuring full consideration of environmental safeguards, in accordance with the Bank environmental assessment guidelines and the 1995 Armenia Bill on Environmental Impact Assessment. In addition to the normal environmental checks for enhancing health safety and protecting the environment, the OM also provides concrete examples of best management practices, e.g. in areas where grazing is practiced, water spring fencing is an effective way to improve water quality by keeping livestock out of the water source. Each microproject will be individually screened and reviewed by the ASIF - by specific type - for any negative impacts, and mitigation measures will be proposed where necessary. The community proposal will incorporate an environmental review checklist, and the microproject appraisal documents will adapt type- specific analysis, costs, and mitigation measures, in part based on the proven practices in SIFs in the Latin American Region. Training will be provided to technical specialists in the ASIF to carry out implementation of sub-projects according to agreed environmental standards. - 10 - 11. Contact Point: Task Manager Caroline Mascarell The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: (202) 473-0059 Fax: (202) 477-3387 12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. This PID processed by the InfoShop week ending April 7, 2000. - 11 -