Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/28/2011 Report No.: 61651 1. Basic Project Data Country: Maldives Project ID: P104743 Project Name: Pension and Social Protection Administration Task Team Leader: Oleksiy A. Sluchynskyy Estimated Appraisal Date: March 4, 2009 Estimated Board Date: May 12, 2009 Managing Unit: SASSP Lending Instrument: Specific Investment Loan Sector: Public administration- Other social services (51%);Central government administration (49%) Theme: Social risk mitigation (51%);Administrative and civil service reform (49%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 3.80 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 0.00 Environmental Category: C - Not Required Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The Project Development Objective would be to support the implementation of the National Pension Act, to strengthen institutional capacity of key involved agencies: Maldives Pensions Administration Office (MPAO), Ministry of Health and Family (MOHF), Capital Market Development Authority (CMDA) and Ministry of Finance and Treasury (MOFT), and to develop the processes and platforms required for the delivery of social protection programs. 3. Project Description The proposed Additional Financing would provide additional support to the original project Components A and B and would support three additional project components (C, D and E of which C is originally sub-component A3), as follows: Component A. Technical Assistance and Capacity Building for implementation of the new pension program Component B. Public Awareness Campaign Component C. Implementation of the Public Accounting System Page 2 Component D. Systems of Administration of Health Insurance, Disability, and Targeted Assistance Component E. Redemption of Recognition Bonds Component A: Technical Assistance and Capacity building for implementation of the new pension program. This component is renamed (from Strengthening Capacity) to denote more precisely the nature of capacity building and the agencies being strengthened. The experience over the first two years of the project has revealed the need for additional technical assistance in several areas that would further contribute to the original development objectives. The proposed AF would support additional technical assistance activities in two areas. (i) Strengthening the Capital Market Development Authority (CMDA), the entity entrusted with developing and implementing regulations for pension fund investment and reporting. This will range from having a legal assistance in drafting rules and regulations pertaining to supervision of the pension sector to formulating a strategy for developing new and longer term instruments in the country that would better match objectives of diversification and the time horizon of pension fund investments. (ii) Defining and implementing the process of annuitization of the pension balances of the MPAO. The objective would be to explore the practical feasibility (especially in terms of cost and administrative complexity) of contracting out the payout period for the Maldives Retirement Pension Scheme (MRPS) to an insurer and provide support to building the regulatory framework for licensing and supervision of annuity provisions. Assistance would also be required to support development of options of disability insurance under the MRPS. Component B: Public Awareness Campaign. Additional funds would be provided to supplement the existing funding for the component. Component C: Public Accounting System. The proposal is to convert the original sub- component of Component A to this separate component. This is considered useful due to the fact that it is administered exclusively by the MOFT and because it requires renewed focus given lagging performance during the first two years of the project. No additional financing is allocated under this component. Component D: Administration of Health Insurance, Disability, and Targeted Assistance. This would be a new component of the project and would address three areas that have taken on importance in the last few years and involve system design, capacity building and IT infrastructure. (i) An important development during the last two years is the Government's initiative to develop a targeting system that could be used by various government-sponsored programs (e.g., cash transfers to the poor) to focus limited resources on the poor. This sub-component of the Project would support the initial piloting of a new targeting method and help develop database management specifications, set-up for data collection, standard operation procedures, manuals, training plans for the scale up of the program, associated outreach campaign and appeals, etc. It would also include training and capacity building as well as program evaluation. Page 3 (ii) Additional Technical Assistance (TA) would be provided in the area of disability coding and benefit administration. This includes disability coding, standard operating procedures, design of registry of disability, administration of cash benefits, etc. The output would support the implementation of the new Disability Bill. (iii) The development of systems to deliver health insurance. This program did not exist during the preparation of the project and during the first 18 months only covered public sector employees. Recently, the Government has requested support for the development of more efficient systems to deliver health insurance. The proposed support would facilitate claims processing, transaction monitoring, fraud control and general information systems along with capacity building at the Ministry of Health and Family (MOHF). It would also finance surveys of health insurance beneficiaries. One advantage of doing this in the context of the project would be to harmonize MIS across the pension, social assistance and health insurance sectors and allow for a more holistic view of how social spending affects the population. This should also help minimize duplication of costs. Component E: Redemption of Recognition Bonds. This component would finance the payment of transfers into individual retirement savings accounts in order to redeem the 'recognition bonds' that are to be paid to retiring cohorts under the new pension scheme during a two and a half year project period (FY11-FY14). 4. Project Location and salient physical characteristics relevant to the safeguard analysis Male, Maldives. 5. Environmental and Social Safeguards Specialists 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: None Page 4 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: None. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. n.a. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. n.a. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. n.a. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. Page 5 If in-country disclosure of any of the above documents is not expected, please explain why: It does not. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? N/A Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? N/A All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? N/A Have costs related to safeguard policy measures been included in the project cost? N/A Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? N/A Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? N/A D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Robert J. Palacios 04/28/2011 Environmental Specialist: Social Development Specialist Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Ms Mansoora Rashid 04/28/2011 Comments: Cleared