Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD898 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 6.5 MILLION (US$10 MILLION EQUIVALENT) TO THE REPUBLIC OF MADAGASCAR FOR AN EMERGENCY SUPPORT TO CRITICAL EDUCATION, HEALTH AND NUTRITION SERVICES PROJECT February 12, 2014 Africa Health Nutrition and Population (AFTHE) Country Department AFCS4 Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2014) Currency Unit = Malagasy Ariary 2,248 MGA = US$1 US$ 1.541 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing CNA Community Nutrition Agent ESSAF Environmental & Social Safeguards Assistance Framework FAO Food and Agriculture Organization FM Financial Management ISDS Integrated Safeguards Data Sheet ISN Interim Strategy Note MDG Millennium Development Goals ONN National Office of Nutrition (Office National de Nutrition) PAD Project Appraisal Document PIU Project Implementation Unit PSN Prevention and Nutrition Security (Prévention et Sécurisation Nutritionnelle) Vice President: Makhtar Diop Country Director: Haleh Bridi Acting Sector Director Tawhid Nawaz Sector Manager: Olusoji O. Adeyi Task Team Leader: Jumana Qamruddin REPUBLIC OF MADAGASCAR ADDITIONAL FINANCING TO THE EMERGENCY SUPPORT TO CRITICAL EDUCATION, HEALTH AND NUTRITION SERVICES PROJECT CONTENTS Contents I. Introduction ............................................................................................................................................ 1  II. Background and Rationale ..................................................................................................................... 1  III. Proposed Changes ................................................................................................................................. 6  Annex 1: Results Framework and Monitoring......................................................................................... 13  Annex 2: Operational Risk Assessment Framework (ORAF) .................................................................. 21  Annex 3: Detailed Description of Activities ............................................................................................. 31  Annex 4: Procurement Arrangements ....................................................................................................... 32  Annex 5: Disbursement Table .................................................................................................................. 39  ADDITIONAL FINANCING DATA SHEET Madagascar AF-Emergency Support Critical Education Health and Nutrition Services ( P148749 ) AFRICA AFTHE . Basic Information – Parent Parent Project ID: P131945 Original EA Category: B - Partial Assessment Current Closing Date: 31-Jul-2016 Basic Information – Additional Financing (AF) Additional Financing Project ID: P148749 Scale Up Type (from AUS): Regional Vice President: Makhtar Diop Proposed EA Category: B - Partial Assessment Expected Effectiveness Country Director: Haleh Z. Bridi 27-May-2014 Date: Sector Director: Tawhid Nawaz Expected Closing Date: 31-Jul-2016 Sector Manager: Olusoji O. Adeyi Report No: PAD898 Team Leader: Jumana N. Qamruddin Borrower Organization Name Contact Title Telephone Email Ministry of Finance and Budget Project Financing Data – Parent ( Madagascar Emergency Support to Critical Education, Health and Nutrition Services Project-P131945 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date Effectiv P131945 IDA-51860 29-Nov-2012 03-Dec-2012 25-Apr-2013 31-Jul-2016 31-Jul-2016 e Disbursements % Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Original Revised Disburse d d sed d Effectiv P131945 IDA-51860 XDR 42.20 42.20 0.00 10.44 31.76 24.74 e Project Financing Data – Additional Financing AF-Emergency Support Critical Education Health and Nutrition Services ( P148749 ) [ ] Loan [ ] Grant [ ] IDA Grant [X] Credit [ ] Guarantee [ ] Other Total Project Cost: 10.00 Total Bank Financing: 10.00 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 9.76 IDA recommitted as a credit 0.24 Total 10.00 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 Title Specialization Unit Evelyn Anna Kennedy Senior Operations Senior Operations AFTHE Officer Officer Hassine Hedda Senior Finance Officer Senior Finance Officer CTRLA Fanny Barrett Consultant Consultant TWITR Sylvain Auguste Senior Procurement Senior Procurement AFTPE Rambeloson Specialist Specialist Jumana N. Qamruddin Senior Health Specialist Team Lead AFTHE Helene Bertaud Senior Counsel Senior Counsel LEGAM Shilpa Challa Consultant Consultant AFTEE Louis Jean De Marigny Finance Analyst Finance Analyst CTRLA Sariette Jene M. C. Jippe Program Assistant Program Assistant AFTHW Paul-Jean Feno Senior Environmental AFTN1 Specialist Fadila Caillaud Sr Education Econ. AFTEE ii Joseph Byamugisha Financial Management AFTME Specialist Harisoa Danielle Education Spec. Education Spec. AFTEE Rasolonjatovo Andriamihamina Voahirana Hanitriniala Health Specialist AFTHE Rajoela Faranoro Edmondine E T Temporary E T Temporary AFMMG Patri Razafimboahangy Non Bank Staff Name Title Office Phone City Locations Country First Administrative Location Planned Actual Comments Division Madagascar Amoron'i Mania Amoron'i Mania X Region Madagascar Upper Matsiatra Haute Matsiatra X Region Madagascar Vatovavy Vatovavy Fitovinany X Fitovinany Region Madagascar Atsimo-Atsinanana Atsimo-Atsinanana X Region Region Madagascar Androy Androy Region X Institutional Data Parent ( Madagascar Emergency Support to Critical Education, Health and Nutrition Services Project-P131945 ) Sector Board Education 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 Health 60 Education Primary education 40 iii Total 100 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Human development Education for all 40 Human development Nutrition and food security 17 Human development Child health 17 Human development Health system performance 16 Human development Population and reproductive health 10 Total 100 Additional Financing AF-Emergency Support Critical Education Health and Nutrition Services ( P148749 ) Sector Board Health, Nutrition and Population 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 Health 100 Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Human development Nutrition and food security 70 Human development Child health 20 Human development Population and reproductive health 5 Human development Health system performance 5 Total 100 iv I. INTRODUCTION 1. This Project Paper seeks the approval of the Executive Directors to provide an additional credit in the amount of US$10 million to scale-up the Republic of Madagascar Emergency Support to Critical Education, Health and Nutrition Services Project (Original Financing: P131945, Cr. 5186-MG). 2. A multi-sector approach to address emergency needs in food security and nutrition through the agriculture, nutrition, social protection and environment sectors is proposed through two coordinated financing mechanisms. In this context, the proposed US$10 million Additional Financing (AF-P148749) to the existing Emergency Support to Critical Education, Health and Nutrition Services Project (P131945) is being prepared concurrently with the proposed US$65 million Emergency Food Security and Social Protection Project (“Food Security Project” - P147514) to address the rising risks of food insecurity in the country and its impacts on the well-being of the population. 3. The proposed AF will finance the costs associated with the geographic scale-up of activities under the nutrition component of the original Project (P131945). Specifically, the AF will support community nutrition sites in delivering a set of “nutrition-specific” or “direct” nutrition interventions to address child malnutrition as well as a set of food security activities supported at community and household levels including home gardens, short-cycle farming and agriculture, and food conservation. These activities are complementary, in terms of geographical targeting and types of activities, with the Food Security Project which is focusing on: a) improving food security through restoring agricultural production in severely locust-affected areas as well as preserving production in the country’s functioning rice- baskets and delivering “nutrition-sensitive” interventions through the agriculture sector; and b) strengthening linkages primarily to cash-for-work activities that can be beneficial to improving nutrition outcomes. The AF will scale-up activities in four of the same regions as the Food Security Project as well as two districts in a fifth region severely affected by the on- going locust infestation. Two of these regions are already financed under the Parent Project so those regions will receive incremental financing to implement the package of food security activities. 4. The original project development objective (PDO) is “to preserve critical education, health and nutrition service delivery in targeted vulnerable areas in the recipient’s territory”. There will be no change in the PDO under the proposed AF. The proposed closing date of the AF is July 31, 2016, the same date as the original project. II. BACKGROUND AND RATIONALE (i) Country Context 5. Madagascar’s economic potential has been hindered by periods of political fragility. Over the past 15 years, the country has experienced 5 years of political crisis on two distinct occasions. The beginning of this most recent crisis was marked by the unconstitutional regime change in March 2009 resulting in devastating effects on the economy, poverty and social outcomes. Socio-economic development has suffered from growing insecurity, stalled 1 progress on already weak governance, a reduced ability to deal with exogenous shocks and deteriorating infrastructure. Recent progress in resolving the political stalemate was made, most notably the second and final round of elections were successfully held on December 20, 2013. This important step forward has garnered support from the international community. Despite these positive developments, the political climate remains fragile with the final election results having just been announced on January 17, 2014. 6. Following the political events in early 2009, preparation and approval of new lending under the Madagascar portfolio was put on hold in March 2009 in accordance with OP/BP 7.30, dealing with De Facto Governments. At the end of 2009, disbursements for the existing portfolio resumed progressively to preserve human, physical and institutional assets. The full resumption of disbursements in April 2011 allowed for a major portfolio restructuring completed in 2012. On the basis of a case by case consideration under OP 7.30, two emergency projects were prepared and approved by the Board in November 2012.1 7. The effects of the crisis have been further exacerbated by exogenous shocks at the household level. More than half of Malagasy households overcame a catastrophic event that adversely affected their economic well-being, and the majority have never recovered. While households vary in their probability of recovering from a shock, poor households that lack the necessary physical and human capital are less likely to recover. In 2010, 6 out of 10 extremely poor households suffered a catastrophic event. 8. The economic cost of the crisis has been substantial, and the fiscal policy response has resulted in drastic cuts in the national budget for the social sectors and public infrastructure. Overall, economic growth was flat over 2009–12, and with high population growth (2.9 percent), income per capita in 2012 returned to its 2003 level. The economic and social effects of the crisis were intensified by the suspension of many donor activities, which, in a country where international aid represents at least 50 percent of the government budget, led to significant cuts in investments and a sharp decline in the delivery of services. 9. Poverty has continued to rise and is now among the highest in the world. Madagascar ranks 151 in the world according to the 2011 United Nations’ Human Development Index. Income per capita barely reached US$400 in 2011 and in 2012, returned to its 2003 level. Preliminary estimates suggest that from 2008 to 2013, the proportion of the population living under the poverty line, already high before the crisis, may have increased by 10 percentage points, with the larger effects over 2011-13, as the crisis has continued to deepen. Recent estimates2 show that about 80 percent of Madagascar’s 22 million people areliving on less than US$1.25 a day, the highest rate in Africa, and approximately 90% of the population is living on less than US$2.00 a day. Factoring in population growth, it is estimated that some 4 million more Malagasies are in poverty than there were in 2008. 1 The two Emergency Protection of Lifeline Infrastructure and Food Security Project (P132101); Emergency Support to Critical Education Health and Nutrition Services Project (P131945). Both Projects became effective on April 25, 2013. 2 Madagascar- Poverty, Gender and Inequality Assessment, PREM World Bank, 2013. 2 (ii) Sectoral Context 10. From 2002 to 2008, Madagascar made considerable progress on the social Millennium Development Goals (MDGs). For example, Madagascar seemed likely to achieve the fourth MDG: Under-five mortality had declined from 94 in 2002 to 71 in 2008. The country was starting to tackle persistent challenges, such as improving maternal health and reducing stunting among children caused by chronic malnutrition. Significant progress had also been achieved in expanding universal access to primary education and reaching gender parity. 11. The crisis reversed a decade of progress in the nutrition, health and education sectors. Full immunization coverage with DPT, Hep B3, BCG3 and measles rapidly decreased from an average of 90 percent in 2006 to 70 percent in 2011. Acute malnutrition rose from 4.7 percent in 2008 to 7.4 percent in 2011 in some of the poorest districts. Enrolment growth in primary education halted abruptly in 2009 with only 0.1 percent (compared to 5 percent annual growth on average over almost a decade) and actually declined in 2010, for the first time in a decade, despite a 2.8 percent growth in the primary school age population. 12. In response, a US$65 million multi-sector IDA operation was approved in November 2012 to deliver the most critical health, nutrition and education services directly to mothers and children. The Emergency Support to Critical Education, Health and Nutrition Services Project (P131945) targets five of the poorest regions in the country with some of the worst human development outcomes. The operation prioritizes activities that facilitate access to basic social services through a reduction of private (out-of-pocket) costs and the easing of supply-side constraints. The activities aim to maintain the resilience of service delivery systems through a focus on providers at the community and primary care level and on targeted activities to strengthen governance and accountability in the delivery of social services. 13. The impacts of the political crisis coupled with the devastating effects of recurrent natural disasters - including cyclones, floods, and droughts – continue to exacerbate already worsening nutrition outcomes. Areas at risk of food insecurity are seeing rises in acute malnutrition at a faster rate than the rest of the country, further exacerbating a decline in key nutrition indicators. Madagascar has one of the highest rates of chronic malnutrition (stunting) among young children (53%) in the world, an issue that has persisted over several years compromising human capital, and resulting in long-term impacts on productivity and resilience because children malnourished in these early years suffer from irreparable cognitive and physical deficits. Superimposed on this chronic under nutrition problem, are the impacts of the crises that have increased acute malnutrition (as measured by wasting = weight for height). For example, in some of the most food insecure regions in the southeast, southwest, and central parts of the country, the rates of acute malnutrition have risen by over 50% since 2012. 3 DPT (also DTP and DTwP) refers to a class of combination vaccines against three infectious diseases in humans: diphtheria, pertussis (whooping cough) and tetanus. Hep B3vaccinates against Hepatitis B and vaccinates for Bacillus Calmette–Guérin. 3 14. Market prices for staple foods in urban consumption centers have significantly increased. The agriculture sector is in crisis. Reduced access to food and insecure land rights are causing intense hardship among the Malagasy population in urban and rural areas alike. If not mitigated, a severe food insecurity threat is developing that will affect the country’s most densely populated rural and urban areas. The ongoing locust infestation since May 2013 now covers over 50% of the country, primarily in regions that are not supported by the two on- going emergency operations. The Food and Agriculture Organization (FAO) estimates that 60% of staple crops may have been damaged in southern and western regions, including key breadbasket areas, and that 21% of the total 2013 rice crop has been lost. Food prices in densely populated areas have doubled compared to the same time last year and FAO reports food insecurity now affects 4 million people with 28% of households affected in rural areas. (iii) Project Status 15. The Emergency Support to Critical Education, Health and Nutrition Services was approved on November 29, 2012 and became effective on April 25, 2013. The original credit amount is SDR 42.2 million (US$65 million equivalent) with a closing date of July 31, 2016. The original project development objective (PDO) is to preserve critical education, health and nutrition service delivery in targeted vulnerable areas in the recipient’s territory. The original project design was kept simple and built on existing activities that could be either continued or scaled-up to efficiently deliver key social sector interventions to the target populations. 16. The project is performing well and is currently rated Satisfactory. As of February 2, 2014, US$16.0 million out of US$65 million (25% of the total Project amount) has been disbursed: a) Component 1 (Education): $9.5 million out of $23.5 million: disbursement rate of 40%, b) Component 2 (Health): $4.4 million out of $25 million: disbursement rate of 18%, and c) Component 3 (Nutrition): $2.1 million out of $10.5 million: disbursement rate of 20%). Given the political situation in the country and the number of critical activities to be undertaken within the next few months, the Bank’s team is working closely with the client to ensure all activities continue to progress satisfactorily. Progress towards the PDO indicators will be assessed during the next supervision mission planned for the second quarter of 2014. There are no overdue audits under the Parent Project. 17. Component 2 of the Parent Project triggered OP BP 4.01 and a dated covenant was added for an update of the National Medical Waste Management Plan (NMWMP) as the safeguards instrument. The original target date in the Parent Project was to have an updated NMWMP (2013-2016) reviewed by the Bank and disclosed by February 13, 2013. Initially, there were some delays in updating the National Policy. The Bank team has been working with the client over the past several months on updating the NMWMP which is now being reviewed by the Bank for No Objection and will be subsequently disclosed. The health facilities supported by the Parent Project are the same as those supported under the on-going Second Multisectoral STI/HIV/AIDS Prevention Project (SMSPP- P090615). The SMSPP supports a number of key activities including maintenance of incinerators and periodic training of health facility staff. Therefore, the safeguards activities supported by the SMSPP benefit the health facilities targeted under the Parent Project. Safeguards performance under the SMSPP continues to be rated Satisfactory. 4 18. Under Component 3 of the Parent Project, the proposed Additional Financing is scaling-up interventions, and there are no safeguard policies triggered. Therefore, the risks outlined in the Integrated Safeguards Data Sheet (ISDS) and the Environmental & Social Safeguards Assistance Framework (ESSAF) for the Parent Project are not relevant for the activities being scaled-up under the proposed AF. The updated ISDS was approved on January 8, 2014 and has been disclosed in the InfoShop. (iv) Rationale for Bank Financing 19. Given the potential humanitarian consequences of a deteriorating food security situation that is unfolding, affecting densely populated areas where little or no external support is currently provided, a dedicated food security and nutrition intervention is essential. Current emergency efforts focus on addressing poverty, health, and infrastructure in areas affected by previous natural disasters and the impacts of the on-going crisis, mostly in the South/Southeast. Regions which used to produce surplus food for densely populated areas in the central and northern parts of the country are receiving minimal donor support and government resources for critical agriculture and nutrition activities. 20. The rationale for additional Bank financing of this operation is strong for the following reasons: (i) it is in line with the Interim Strategy Note (ISN) for Madagascar discussed at the Board in February 2012, the recommendations of the 2011 World Development Report on Conflict and Security, and the World Bank’s Africa Strategy. The ISN identifies education, health and nutrition and the impact of external shocks on the poor (e.g., food crises and natural disasters requiring rehabilitation/repairs, safety nets, agricultural support) as key focus areas for justifying new operations. The ISN proposes that the Bank intervenes in a few areas in which it is demonstrated that the failure of Government and other partners to get involved is exacerbating the already fragile state of human capital. In this context, health and nutrition have been identified as priority sectors for the country’s short-and long-term objectives and; (ii) the Bank has extensive experience in supporting the social sectors in the country and can therefore rapidly make financing available to meet local emergency needs though modes of service delivery that have proven effective in Madagascar. 21. The proposed Additional Financing credit will primarily finance the costs associated with a geographical scale-up of activities under the nutrition component (Component 3) of the current Emergency Support to Critical Education, Health and Nutrition Services Project. Financing will support an additional 837 community nutrition sites in the most food insecure areas of the country. The main objective of the nutrition sites is to deliver a package of direct nutrition services to pregnant/lactating women and children under-five years of age. The proposed AF will also support food security interventions at community and household levels which will be implemented in the same areas as the community nutrition sites supported by the Parent Project. Therefore, the development impact of the Project will be enhanced through reaching a larger number of beneficiaries. These activities are complementary, in terms of geographical targeting and types of activities, with the Food Security Project which is focusing on: (a) improving food security through restoring agricultural production in severely locust-affected areas as well as preserving production in the country’s functioning rice-baskets and delivering “nutrition-sensitive” interventions through the agriculture sector 5 and (b) strengthening linkages primarily to cash-for-work activities that can be beneficial to improving nutrition outcomes through the social protection sector.4 22. Additional Financing is the preferred mechanism. Initially, nutrition activities were planned as a subcomponent under the proposed multi-sector Emergency Food Security and Social Protection Project (Food Security Project - P147514). However, given the technical scope and the implementation arrangements for the nutrition activities financed under the already operational Emergency Support to Critical Education, Health and Nutrition Services (P131945), an AF was considered the most efficient financing and delivery mechanism for the interventions proposed. As noted above, coordination with the Food Security Project has been maintained through scale-up of direct nutrition interventions and community and household level food security activities primarily in the same regions as the Food Security Project. III. PROPOSED CHANGES 23. Target Population and Geographic Scope: There will be no change in the PDO under the proposed AF. Overall, the design of the nutrition component of the Project will remain the same; however, the geographical scope will be scaled up in areas most at risk of food insecurity and worsening nutrition outcomes. The selected areas are not supported by other development partners in the agriculture and/or nutrition sectors. The proposed activities to be supported by the AF will primarily be implemented in the four regions targeted by the Food Security Project delineated as “Area 1- Locust Affected Zones” under the operation. These regions rank among the poorest in the country with a 70 to 90 percent poverty count: Vakinankaratra, Itasy, Haute Matsiatra and Amoron‘i Mania (Haute Matsiatra and Amoron‘i Mania are already targeted in the Parent Project and therefore will benefit from the incremental scale-up of the food security activities at community and household levels). These are some of the most densely populated regions in the country. In addition, two districts (Betioky and Ampanihy) in the region of Atsimo Andrefana will benefit from the support of the AF, as these areas are the origin of the on-going locust infestation and are at a particularity high risk for worsening nutrition outcomes. 24. As with the Parent Project, the interventions will largely be delivered through community nutrition sites. The AF will scale-up support to 837 community nutrition sites in the proposed target areas for a total of 2,837 supported under the Project. The PSN activities will be scaled-up in the areas where the community nutrition sites are being supported. Figure 1. Scale-up of Nutrition Activities under the Project Parent Project (Nutrition Component • Support 2,000 community nutrition sites US$10.5 million) Proposed Additional Financing • Support to 837 community nutrition sites. (Nutrition Component • Together with the original project and proposed additional financng, a total of US$10.0 million) 2,837 nutrition sites will receive support. 4 The social protection component of the Food Security Project will also be piloting a Conditional Cash Transfer (CCT) linked to HD outcomes. The results from this pilot will inform future IDA financing in the country. 6 25. The total number of expected beneficiaries under the Project (original financing and AF) is approximately 2.6 million people. Out of this 2.6 million, the AF will target approximately 687,000 pregnant/lactating women and children under five over the next two years. In total, the project (original financing and AF) will increase access to direct nutrition interventions to approximately 299,000 pregnant/lactating women and 1,290,000 children under-five. Table 1 summarizes the expected number of beneficiaries of nutrition interventions under the Project. Table 1: Estimated Nutrition Beneficiaries under the Parent Project and Additional Financing Additional Total Beneficiary Parent Project Financing Pregnant women 169, 561 129,189 298,750 Children under 5 years 731,965 557,688 1,289,653 Total number of beneficiaries 901,526 686,877 1,588,403 26. Procurement: The procurement capacity assessment for the PIU has been carried out and found Satisfactory under the Parent Project and remains relevant. Therefore, procurements under the proposed AF will continue to be undertaken using the same arrangements as the Parent Project. Detailed procurement arrangements can be found in Annex 4. 27. Financial Management and Disbursements: The staffing at the PIU is adequate and the financial management personnel are adequately experienced with an understanding of the Bank’s FM requirements. Withdrawal applications and all the financial reports under the Parent Project have been submitted on a timely basis and are satisfactory. The first external audit for the year ending 31 December 2013 will be carried out in early 2014. 28. The new designated account will be created for the AF at the Bank of Africa. The designated account will receive an initial advance equivalent to USD 1,300,000 upon project effectiveness. In addition to advances to the designated account, other disbursement methods will be available for use under the project, such as the direct payment, reimbursement, and special commitment methods. Further instructions on the withdrawal of proceeds are outlines in the disbursement letter. The disbursement table can be found in Annex 5. Necessary supporting documents will be sent to the Bank in connection with contacts that are above the SOE thresholds, except for expenditures under Contracts with an estimated value of: (a) US$ 500,000 or less for works. (b) US$ 200,000 or less for goods; (c) US$ 200,000 or less for Consulting Firms; (d) US$ 100,000 or less for Individual Consultants which will be claimed on the basis of SOEs. The documentation supporting expenditures will be retained at the Project Implementation Unit and will be readily accessible for review by the external auditors and periods Bank supervision missions. 29. Costs by Component: Table 3 outlines the revised costs by component. Given the scope of the AF, only component 3 will change to a revised amount of US$20.5 million. The unallocated amount of US$6.0 million under the Parent Project will be used for unforeseen activities that have recently been identified. This includes two key activities: (a) under the 7 Education component (Component 1) the project will purchase additional school kits and (b) under the Health component (Component 2), the Project will purchase additional malaria control bednets to respond to outbreaks in some areas of the country. The total estimated amounts for these activities is approximately US$4.5 million dollars and the requests will be processed in the coming few months. Table 2: Costs by Component (IDA US$ millions) Component Original cost Changes with AF Revised cost 1: Preserving Critical Education 23.50 -- 23.50 Services 2: Preserving Critical Health Services 25.00 -- 25.00 3: Preserving Critical Nutrition Services 10.50 10.00 20.50 4: Unallocated 6.00 -- 6.00 Total 65.00 10.00 75.00 30. Retroactive financing: Withdrawals of up to an aggregate amount not to exceed SDR 1.3 million (US$2 million equivalent) may be made for payments made on or after December 1, 2013 to cover Eligible Expenditures as identified under the Project. Summary of Proposed Changes The AF will finance the scale-up of Component 3 under the Parent Project and given the focus on food security, will also support a set of new activities undertaken by the “Prévention et Sécurisation Nutritionelle” (PSN) which is one of the operational units of the “Office National de Nutrition” (ONN). The PSN officers (one in each region) are tasked to support agriculture and food security interventions at community and household levels including home gardens and short-cycle farming aimed at introducing sustainable local sources of food. These officers work closely with and are the link between the CNAs and agriculture extension agents in promoting food security activities. Specifically, the project will support the inputs required to carry out relevant food security interventions with a focus on providing kits and training at the household level for short-cycle farming as well as the operational costs of the PSN officers to carry out their activities. Specific new activities will be supported under subcomponents 3a and 3b. A more detailed description of the activities can be found in Annex 3. The AF will scale-up activities in four of the same regions as the Food Security Project as well as two districts in a fifth region severely affected by the on-going locust infestation. Two of these regions are already financed under the Parent Project so these regions will receive incremental financing to implement the package of food security activities. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] 8 Change in Loan Closing Date(s) Yes [ ] No [ X ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ ] No [ X ] Change in Disbursement Estimates Yes [ ] No [ X ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ X ] No [ ] Development Objective/Results PHHHDO Project’s Development Objectives Original PDO The Project Development Objective (PDO) is to preserve critical education, health and nutrition service delivery in targeted vulnerable areas in the recipient’s territory. Change in Results Framework PHHCRF Explanation: The Project Outcome Indicators will not change, but targets related to relevant nutrition indicators at outcome and intermediate levels will be increased starting year 2 through the end of the project to reflect the results from the scale-up proposed under this AF. Relevant baseline values will be adjusted and one intermediate indicator will also be added to measure the PSN activities. Compliance Covenants - Additional Financing ( AF-Emergency Support Critical Education Health and Nutrition Services - P148749 ) Source of Finance Description of Funds Agreement Date Due Recurrent Frequency Action Covenants Reference Finance Loan Closing Date - Additional Financing ( AF-Emergency Support Critical Education Health and Nutrition Services - P148749 ) 9 Source of Funds Proposed Additional Financing Loan Closing Date Allocations - Additional Financing ( AF-Emergency Support Critical Education Health and Nutrition Services - P148749 ) Disbursement %(Type Source of Category of Allocation Currency Total) Fund Expenditure Proposed Proposed IDA XDR 0.00 0.00 Total: 0.00 Components Change to Components and Cost PHHCCC Explanation: There will be no changes to the Project Components. The proposed AF will scale-up Component 3 of the original Project. Therefore, the US$10 million will be added to this Component 3 resulting in a total component amount of US$20.5 million Current Component Proposed Component Current Cost Proposed Action Name Name (US$M) Cost (US$M) Component 1: Component 1: Preserving Critical Preserving Critical 23.50 23.50 No Change Education Services Education Services Component 2: Component 2: Preserving Critical Preserving Critical 25.00 25.00 No Change Health Services Health Services Component 3: Component 3: Preserving Critical Preserving Critical 10.50 20.50 Revised Nutrition Services Nutrition Services Unallocated 6.00 Total: 65.00 75.00 Other Change(s) Other Change(s) Explanation: There will be no change to the implementation arrangements. As with the Parent Project, the 10 implementation of the scaled-up activities under the AF will be executed by the existing and well- functioning PIU that will continue to work closely with the ONN and the PSN unit on relevant activities. The PIU is responsible for day-to-day project implementation and monitoring. The Terms of Reference of the original Project’s Technical Steering Committee and Project Coordination Committee as well as that of the Nutrition PIU staff and the auditors will be reviewed and expanded as relevant to accommodate the implementation of resources under the AF. Appraisal Summary Economic and Financial Analysis PHHASEFA Explanation: The additional credit will not require any changes in the economic and financial analysis included in the original Project Appraisal Document (PAD) dated November 13, 2012, since the activities for the AF were already included in the original project. Given that increased coverage for a set of direct nutrition interventions will be achieved through the AF, the overall economic impact is expected to be as great as or greater than the original project. According to the latest evidence, nutrition interventions are more effective when they target the poorest segments of the population. The parent project and the AF together focus on the most vulnerable regions in Madagascar, also home to the poorest. This group is often unable to articulate demand for services as well as bear the economic costs associated with those services, hence justifying the public sector’s involvement. In 2008, the Copenhagen consensus ranked nutrition interventions as providing some of the most effective returns of all development interventions. Moreover, The Lancet, one of the world’s most highly respected medical journals, examined evidence from hundreds of studies in a variety of country settings and identified 13 highly cost-effective direct interventions such as vitamin A, and zinc supplements. Iodized salt, and the promotion of healthy behavior including hand- washing, exclusive breastfeeding, and complementary and therapeutic feeding practices. In line with these findings, the AF is scaling-up a subset of interventions in the Parent Project to additional regions for which there are existing delivery mechanisms as advised in the publication, “Scaling-Up Nutrition, What Will it Cost?” Namely, (i) micronutrient supplementation programs (at less than US$50 per Disability-Adjusted Life Years or DALYs gained) and (ii) food supplementation targeted to children under-two and pregnant women to yield higher benefits at lesser cost. As with the Parent Project, the estimated cost of the package is approximately US$7 per capita, which is consistent with the global estimate of US$8-15. The nutritional interventions valued at USD $10 million for the duration of the project, will support interventions to increase access to direct nutrition interventions to approximately 299,000 pregnant/lactating women and 1,290,000 children under-five. Technical Analysis PHHASTA Explanation: There will be no significant changes from the basic technical design in the original PAD. The interventions envisaged are all based on well-known approaches and will not add to the overall complexity of the Project. The interventions will be delivered largely through community nutrition sites. In Madagascar, the community based nutrition approach has proven to be very effective in reducing rates of acute malnutrition. Results from the multi-round anthropometric studies conducted on the Project in 1998, 2004, 2007, and 2011 show that acute malnutrition progressively declined by more than half in the under 3 age group (from 36.1% to 17.8%) among children who were enrolled in the National Community Nutrition Program as 11 compared to insignificant changes among communities where children were not enrolled in the Program. The proposed AF will scale up coverage for sites in the targeted regions which have some of the fastest rising rates of acute malnutrition. In addition, a subset of activities will be implemented to promote food security at community and household levels. Social Analysis PHHASSA Explanation: The AF will have no adverse effect on the environmental and social aspects of the project. Rather, the AF is expected to contribute to increased access to nutrition services in the communities by scaling-up support to community nutrition sites that have been gradually scaled-up in the country since 1992. Activities to be supported by the project are expected to have minimal and site-specific adverse environmental and social impacts that would be easily manageable. The 14-year multi-round impact evaluation of the Project indicated that the community nutrition sites in Madagascar reach the poorest percentile of the population. In addition, recent surveys show a very high level of community ownership and support of the sites as they provide a venue for mothers to meet and learn from the nutrition agents and each other. Analysis of operational data shows that despite long delays in receiving the operational resources to run the sites, communities have largely continued to fund activities through pooling of local resources. Environmental Analysis Explanation: Management of environmental and social safeguards under the Parent Project is Satisfactory overall. Activities proposed for the AF are similar to those already completed under the Parent Project and the safeguards Category B thus remains unchanged. No new environmental risks are expected to arise under the additional financing and the proposed activities will not trigger any new safeguard policies. The AF will have no adverse effect on the environmental and social aspects of the project. Rather, the AF is expected to contribute to increased access to nutrition services in the communities by scaling-up support to community nutrition sites. Activities to be supported by the project are expected to have minimal and site- specific adverse environmental and social impacts that would be easily manageable. Risk Explanation: Given that this proposed financing will be processed in a circumstance in which the country portfolio is functioning, there remain certain risks associated with the ongoing political situation and the complex country context. Therefore, the risk is rated as Substantial during implementation; same as the Parent Project. In order to ensure that the proposed AF resources continue to be protected in the current country context, measures to strengthen governance and accountability mechanisms under the Parent Project will also benefit the AF resources. Additional risks and mitigation measures specific to the AF have been added to the ORAF (annex 2). 12 ANNEX 1: RESULTS FRAMEWORK AND MONITORING COUNTRY: Madagascar Results Framework Revisions to the Results Framework Comments/ Rationale for Change PDO Current (PAD) Proposed No Change PDO indicators Current (PAD) Proposed change* Number of direct project Change in Project Target Value Geographic scale-up of beneficiaries (of which % interventions under AF female) People with access to a basic Change in Project Target Value Geographic scale-up of package of health, nutrition, interventions under AF or reproductive health services(number) Children under the age of 24 Change in Project Target Value Geographic scale-up of months benefiting from interventions under AF improved infant and young child feeding (IYCF) practices Intermediate Results indicators Current (PAD) Proposed change* Number of children under 2 Change in Project Target Value Geographic scale-up of years enrolled in the growth interventions under AF monitoring program 5 Number of children enrolled in Change in Project Target Value Geographic scale-up of the MUAC6 program between interventions under AF 2-5 Years of Age Number of Community Change in Project Target Value Geographic scale-up of Nutrition Agents trained to interventions under AF provide health and nutrition education New Indicator: Number of households Addition of new indicator to reflect receiving support kits (inputs and the proposed food security equipment) for short cycle agriculture and interventions under the AF. This livestock activities indicator will measure the number of (i) equipment for food conservation and transformation; (ii) short cycle agriculture kits; (iii) short cycle livestock kits and training provided at the household level. * Indicate if the indicator is Dropped, Continued, New, Revised, or if there is a change in the end of project target value 5 To evaluate the coverage of the growth monitoring and the efficacy of project nutrition sites promotion activities 6 Quarterly monitoring of the nutritional status of children 2-5 years community nutrition sites by measuring the Mid-Upper Arm Circumference (MUAC) 13 Project AF-Emergency Support Critical Education Health and Project Additional Financing Status: FINAL Name: Nutrition Services (P148749) Stage: Team Requesting Jumana N. Qamruddin AFMMG Created by: Jumana N. Qamruddin on 06-Dec-2013 Leader: Unit: Product Responsible IBRD/IDA AFTHE Modified by: Jumana N. Qamruddin on 11-Feb-2014 Line: Unit: Country: Madagascar Approval FY: 2014 Lending Region: AFRICA Investment Project Financing Instrument: Parent Project Parent Project Madagascar Emergency Support to Critical Education, Health and Nutrition Services P131945 ID: Name: Project (P131945) . Project Development Objectives Original Project Development Objective - Parent: The Project Development Objective (PDO) is to preserve critical education, health and nutrition service delivery in targeted vulnerable areas in the recipient’s territory. Proposed Project Development Objective - Additional Financing (AF): no change to Development Objective. 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 Direct project beneficiaries Number Value 0.00 1018947.00 2603603.00 Date 31-Jul-2012 31-Jul-2013 31-Jul-2016 Comment Data available for Cumulative Education only (difference for 2013 increase year 1 14 to year 3) No Change Female beneficiaries Percentage Value 0.00 50.2 55.00 Sub Type Supplemental No Change Students enrolled in primary Number Value 974300.00 1018947.00 974300.00 schools in targeted regions Date 31-Jul-2012 31-Jul-2013 31-Jul-2016 Comment Non-cumulative No Change Female beneficiaries Percentage Value 49.00 49.00 Sub Type Supplemental No Change Total number of schools Number Value 0.00 6407.00 6050.00 receiving school grants funded Date 31-Jul-2012 31-Jul-2013 31-Jul-2016 by the project Comment Non-cumulative Revised People with access to a basic Number Value 0.00 523854.00 1619303.00 package of health, nutrition, or Date 31-Jul-2012 31-Dec-2013 31-Jul-2016 reproductive health services (number) Comment Revised Pregnant/lactating women Number Value 0.00 101740.00 311350.00 Sub Type Date 31-Jul-2012 31-Dec-2013 31-Jul-2016 Breakdown Comment Yearly number, cumulative (difference increase year 1 to year 2) Revised Children under 5 Number Value 0.00 422114.00 1307953.00 Sub Type Date 31-Jul-2012 31-Dec-2013 31-Jul-2016 Breakdown Comment Yearly number, 15 cumulative (difference increase year 1 to year 2) No Change Births (deliveries) attended by Number Value 0.00 12600.00 skilled health personnel Date 31-Jul-2012 31-Jul-2016 (number) Comment Data collection cumulative and analysis (difference currently increase year 1 underway and to year 2) will be reported through interim ISR No Change Children immunized (number) Number Value 0.00 18300.00 Date 31-Jul-2012 31-Jul-2016 Comment Data collection and analysis currently underway and will be reported through interim ISR No Change Children immunized - under 12 Number Value 0.00 18300.00 months against DTP3 (number) Sub Type Date 31-Jul-2012 31-Jul-2016 Breakdown Comment Data collection and analysis currently underway and will be reported through interim ISR Revised Children under the age of 24 Number Value 70160.00 289340.00 16 months benefiting from Date 31-Jul-2012 31-Jul-2016 improved infant and young Comment Data collection Cumulative, child feeding (IYCF) practices and analysis difference currently increase year 1 underway and to year 3 will be reported through interim ISR Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target No Change Number of community teachers Number Value 0.00 8659.00 10000.00 certified to be in service paid Date 31-Jul-2012 06-Dec-2013 31-Jul-2016 Comment Non-cumulative No Change of which % of female Percentage Value 49.00 50.00 Sub Type Supplemental No Change School grants paid by the Percentage Value 0.00 98.44 95.00 project on time Date 31-May-2012 12-Dec-2013 31-Jul-2016 Comment Non-cumulative No Change Number of children receiving Number Value 0.00 355247.00 667944.00 anti-helminth treatment (school Date 31-Jul-2012 06-Dec-2013 31-Jul-2016 age children) Comment Cumulative (difference increase year 1 to year 3) No Change Number of parents' Number Value 0.00 4805.00 6050.00 associations/school Date 31-Jul-2012 06-Dec-2013 31-Jul-2016 management committees trained on teacher Comment Cumulative 17 accountability process and use of school grants year No Change Number of teachers trained in Number Value 0.00 1342.00 3750.00 school health and nutrition Date 31-Jul-2012 06-Dec-2013 31-Jul-2016 activities Comment Cumulative (difference increase year 1 to year 3) No Change Pregnant women receiving Number Value 0.00 18283.00 antenatal care during a visit to Date 31-Jul-2012 31-Jul-2016 a health provider (number) Comment Data collection Cumulative and analysis (difference currently increase year 1 underway and to year 3) will be reported through interim ISR No Change Health facilities constructed, Number Value 0.00 150.00 347.00 renovated, and/or equipped Date 31-Jul-2012 15-Dec-2013 31-Jul-2016 (number) Comment Cumulative No Change Number of syphilis treatment Number Value 0.00 927.00 2650.00 distributed to pregnant women Date 31-Jul-2012 31-Dec-2013 31-Jul-2016 in public health centers in project areas Comment Cumulative (difference increase year 1 to year 3) No Change Percentage of facilities visited Percentage Value 0.00 100.00 95.00 by the district technical Date 31-Jul-2012 31-Dec-2013 31-Jul-2016 assistants Comment Cumulative 18 Revised Number of children under 2 Number Value 247228.00 137636.00 413343.00 years enrolled in the growth Date 29-Nov-2013 30-Dec-2013 31-Jul-2016 monitoring program Comment Cumulative (difference increase year 1 to year 3) Revised Number of children enrolled in Number Value 365363.00 229798.00 600810.00 the MUAC program between Date 29-Nov-2013 30-Dec-2013 31-Jul-2016 2-5 years of age Comment Cumulative (difference increase year 1 to year 3) Revised Number of Community Number Value 1484.00 1922.00 2837.00 Nutrition Agents trained to Date 31-Jul-2012 29-Nov-2013 31-Jul-2016 provide health and nutrition education Comment Cumulative No Change percentage of Nutrition sites Percentage Value 65.00 95.00 Monthly Report submitted Date 31-Jul-2012 31-Jul-2016 within +5 days of the end of the month through mobile phones Comment New system Cumulative being put in place for reporting. Indicator will be updated during interim ISR. No Change Number of schools supported Number Value 0.00 5812.00 2500.00 by ACN during de-worming Date 31-Jul-2012 29-Nov-2013 31-Jul-2016 Comment Cumulative (difference increase year 1 to year 3) 19 New Number of households Number Value 0.00 23114.00 receiving support kits (inputs Date 29-Nov-2013 31-Jul-2016 and equipment) for short cycle agriculture and livestock Comment activities . 20 ANNEX 2: OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF) Madagascar: AF-Emergency Support Critical Education Health and Nutrition Services (P148749) . . Project Stakeholder Risks Stakeholder Risk Rating Substantial Risk Description: Risk Management: Overall: Overall: • Clear and transparent selection criteria for the geographic targeting were applied The focus on select geographical regions may cause a based on ongoing IDA interventions, poverty levels and low social outcome indicators. complaint in the non-selected regions and prompt a • Complementarity to other donor interventions in education, health and backlash from civil society organizations. This would pose nutrition (e.g. EU, UNICEF, AFD) who are focusing on other regions. a reputational risk. • The design ensures interventions address the most urgent needs and avoid any duplication of future funding that may become available for the sector. Fragile political context may discourage donor • Discussions with donors were conducted during project preparation to assess the participation and active dialogue with the government. degree of their involvement in the short-and medium term. Education: Education: Poor parents may have low capacity and high opportunity costs to effectively participate in decision making of the • The parent project design includes activities to strengthen accountability local school management committees (FRAM). This may mechanism at school level, e.g. school reports cards, budget transparency thus pose a risk to accountability and effective use of school reinforcing the role of school-based management committees (which include parents). grants, and to achieving the PDO. • Updating of policy documents and strategies for reform is ongoing, namely: The Health & nutrition: National Health Policy (PNS), the Development Plan of the Health Sector (PDSS) and Prioritization of activities may be an issue in the health the Medium Term Expenditure Framework (MTEF). Pending the strategy and and nutrition sectors. framework, the health sector has an Interim Operational Plan 2012-2013, which includes partner interventions and is embarking on the development of a new strategy. • The project design and objectives to be achieved are aligned with the existing strategic plan and with the national MDGs targets, namely the MDG 1b, 4 and 5. Moreover, priority interventions implemented under the Parent Project are being scaled- up under the AF. Resp: Status: Stage: Recurrent: Due Date: Frequency: 21 Both In Progress Both Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Moderate Risk Description: Risk Management: • Kept project design, results framework and M&E arrangements as simple as Overall relatively weak accountability mechanisms and possible. limited capacity for implementation at the decentralized • Three PIUs are already staffed with the relevant experts and have extensive levels, especially for monitoring and evaluation. experience with IDA and other donor-financed projects and a good track record with regards to fiduciary and M&E aspects as well as overall project management. Procurement capacity and potential delays may delay the delivery of critical education and health interventions. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Both Risk Management: Procurement capacity: • Education: Component 1 does not have large scale procurement of goods or services. The transfer of community teacher salaries and school grants will not involve NGOs. • Health/nutrition under the AF: Preparations for initiating the recruitment process for NGOs started in advance but there were delays related to agreement in how the NGOs would be selected. This process has now been clearly defined between the client and the Bank and the same process will be used for the AF so these delays will be avoided. Selection of NGOs will be based on quality and cost-based procurement methods and will be performance-based contracts with tranche payments linked to receipt of key deliverables. Both PIUs will ensure the process is efficient, as these units have extensive experience with procuring NGOs and strong overall fiduciary capacity, and have been consistently been rated Satisfactory under the previous and ongoing operations. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Both Risk Management: The AF Implementing Agency will remain the same as with the Parent Project and is 22 already staffed with the relevant fiduciary and technical experts and has extensive experience managing IDA projects. The PIU has a good track record in fiduciary and M&E aspects as well as overall project management. Additionally, the PIU has extensive experience with procuring NGOs (most recently under the Parent Project) and preparation for initiating the recruitment process for NGOS will start well in advance of effectiveness to avoid delays. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Implementation 28-Nov-2014 Governance Rating Substantial Risk Description: Risk Management: Potential political interference in project management: The Project will operate under a newly elected Government going forward after a long period of crisis. • Overall: IDA will continue to support intensive technical dialogue. Resumption This environment could increase governance risks for the of governance activities will also contribute to address key issues on governance. The project, e.g. potential political interference in project existing PIUs, while created under the Government Decree, will continue to maintain management. their autonomy and are subject to the Bank’s oversight given its obligation to follow Bank’s procedures and guidelines. Funds will benefit target communities and the There is a considerable risk that the implementation of all decentralized levels, but not central government. components will be stalled if one PIU/component is • Education: Each of the proposed activities under component 1 of the Parent encountering implementation delays or governance issues. Project will include governance aspects and tools in the design aimed at strengthening accountability and transparency. For example, this will include school report cards Potential lack of coordination across the three different shared with the community, budget transparency of school grants through public display PIUs is a risk which could affect project performance. etc. • Health/nutrition: In addition to the governance and social accountability tools which are being integrated in all components including for example, community scorecards, use of mobile phone technologies for data collection etc. NGOs will be contracted to (i) to help ensure service delivery of critical interventions directly to beneficiaries and (ii) carry-out external verification functions. The PIUs are working together on several crosscutting areas and have successfully completed the roll-out of the school health and nutrition campaign which required coordination of all three PIUs. This type of coordination is reinforced in a number of areas of the portfolio. Resp: Status: Stage: Recurrent: Due Date: Frequency: 23 Both Not Yet Due Implementation Risk Management: The existing three PIUs will continue to maintain their individual autonomy and regularly report to their supervising entities as well as the Bank. • A person responsible for ensuring coordination and communication across the three PIUs has been hired as part of the implementation arrangements. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Implementation Risk Management: The governance and social accountability tools being strengthened under the Parent Project including community scorecards, use of mobile phone technologies for data collection etc will be scaled-up to the target areas in the AF. As with the Parent Project, NGOs will be contracted to (i) to help ensure service delivery of critical interventions directly to beneficiaries and (ii) carry-out external verification functions to ensure interventions reach the intended populations. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Implementation CONTINUO US Risk Management: • The Bank will continue to support the country through intensive dialogue at the technical level. Resumption of the Governance project will also help address key issues on governance and public sector capacity. • The current PIUs have considerable experience and a good track record of IDA project implementation and no major risks are foreseen in this regard. Well-qualified fiduciary staff is already in place, as are the necessary procedures manuals and software. For example, the education PIU was previously implemented the Bank-supervised EFA- FTI and fiduciary management has been rated Satisfactory. This PIU is now used by other donors (UNICEF and Norway) for channeling their funds to beneficiaries. Equally, for the nutrition project and under the ongoing health project, which is implemented by the same health PIU, fiduciary management has been largely Satisfactory (except for 24 identified ineligible expenditures under the original project which are being repaid by the Government under a repayment plan accepted by the Bank with appropriate accountability in place to protect funds. • Supervision and spot checks by local school inspectors, technical health coordinators at regional level and nutrition regional focal points will continue to/be implemented be involved in monitoring and supervision at decentralized levels. • There will be 3rd party verification of results by an independent agency. Regional and district health and nutrition focal points will continue their monitoring and supervision roles. NGOs will reinforce supervision and support functions of the public sector to health facilities and community nutrition sites, The PBF model at health facility level will have several internal and external verification modalities to confirm results before release of payments. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Not Yet Due Implementation Project Risks Design Rating Moderate Risk Description: Risk Management: • The project design has been kept simple by: (i) only including a very limited Risk Description: number of priority activities for each sector; and (ii) providing support mostly to existing interventions (e.g. school grants, community nutrition sites, package of MCH The project is multi-sectoral and thus more complex by services) for which implementation mechanisms are well established and functioning. nature, since it involves many different activities and • Consultation of all relevant stakeholders took place at the design stage and there coordination among a multitude of stakeholders. was clear assignment of roles and responsibilities for implementation. • Capacity building activities are being undertaken on a continuous basis for If one component of this multisectoral project is not regional and local education health and nutrition personnel, and to communities to performing on project implementation and PDO ensure effective delivery and use of services. The design of the project builds on past achievement etc., this would negatively affect the experiences and reflects lessons learned from past education, nutrition and health performance and rating of the entire project, even if other programs. components are performing well, given that the success of • The choice of indicators ensures that the overall rating is not dependent on just the project is dependent on all three sectors being able to one aspect of the project. In addition, a coordination mechanism was put in place move forward in a parallel manner. between the various components and sub-sectors to ensure progress is made along the various dimensions of the project. 25 The project focuses on geographical regions with high poverty and low nutrition, health and education outcomes • Target areas of the Parent Project ensure clear focus of resource allocation to to benefit the most vulnerable populations. However, this high risk areas. A clear set of criteria on identifying focus on communities, schools and could also imply a higher risk of these communities and health facilities was defined to ensure adequate minimum implementation capacity of local agents not having adequate capacity to implement activities. At regional and district levels, implementation capacity is adequate due to activities. support from other donors on operational costs that are complementing Government resources. The project also covers additional incremental supervision costs of central Education: and regional offices to ensure adequate monitoring of activities. The AF project design The EU and UNICEF have been financing similar is kept very simple and target areas were confirmed during preparation to ensure that activities in other regions. Approaches might be different resource allocation would focus clearly on food insecure and high malnutrition areas. A resulting in possible confusion and coordination issues clear set of criteria for identifying communities was defined to ensure adequate capacity among teachers/education officials at local level. to implement activities under the Parent Project and these same criteria were used under the AF. Resp: Status: Stage: Recurrent: Due Date: Frequency: Health/nutrition: Use of national drug procurement agency may hamper Both Both efficient distribution of standard drugs and medical supplies in the short-term. Risk Management: Education: • Close coordination with EU and UNICEF to ensure coherence of approaches and avoid miscommunication. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both Both Risk Management: The AF project design has been kept very simple. In addition target areas were confirmed during preparation to ensure that resource allocation would focus clearly on food insecure areas. A clear set of criteria for identifying communities was defined to ensure adequate capacity to implement activities under the Parent Project and these same criteria will be used under the AF. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Preparation 15-Jan-2014 Risk Management: Health/Nutrition: A cash on delivery arrangement has been introduced in contracting 26 rather than on commitment prior to delivery with the aim to ensure drugs are delivered in a timely manner down to health facility levels. Resp: Status: Stage: Recurrent: Due Date: Frequency: Social and Environmental Rating Low Risk Description: Risk Management: • Under the Parent Project (Component 2), resources will contribute to The potential environmental risks associated with medical implementation of the Medical Waste Management Plan (MWMP). The implementation waste management apply given that the activities support to date has been rated Satisfactory by the Bank. The Integrated Safeguards Data Sheet provision of inputs such as medical equipment and has been updated based on implementation progress of the MWMP and has been re- materials. However, the risk is N/A for the AF as there are disclosed. no activities that would trigger safeguard issues given that the AF is only scaling-up component 3 of the Parent Resp: Status: Stage: Recurrent: Due Date: Frequency: Project. Client Not Yet Due Implementation Risk Management: Activities to be supported by the AF have been assessed and are expected to have minimal and site-specific adverse environmental and social impact that would be easily manageable. No additional Safeguards have been triggered given the AF is only scaling- up Component 3 of the Parent Project. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank Completed Preparation 10-Dec-2013 Program and Donor Rating Substantial Risk Description: Risk Management: Over the past four years, several external donors withdrew • Throughout the crisis, IDA continued to participate in the technical dialogue in their support due to the political situation, which had a each of the three sectors as part of the regularly occurring consultations with other negative impact on the health, nutrition and schooling donors to ensure interventions address the most urgent needs; and to ensure status of the population; given that Madagascar largely complementarity of interventions with other external partners such as the EU, USAID, depends on external resources for these sectors (e.g. 70% Norway, UNICEF and AFD etc. For example, in education, IDA has been very engaged of health and 80% of education spending was financed by in the technical dialogue with the government as part of the dynamic Local Education donors). Group led by UNICEF and has led the technical support to the government for the preparation of its education sector plan which culminated in the Global Partnership for 27 Education Grant being approved in 2013. The project has the potential to act as a catalyst for attracting other donors (AFD, EU) to support the social sectors in the short and medium-term. In health and nutrition, discussions with other donors were conducted to assess the degree of their involvement in the short and medium term; ensure interventions address the utmost needs; and to avoid any duplication of future funding that may become available for the sector. At the technical level, the PTF for health and nutrition remains in place, and active coordination through this mechanism has started to be revitalized. The Bank is a lead donor in the health sector and these resources have the potential to further catalyze other donors (AFD, EU) to support the health sector in the short and medium-term. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank Both Delivery Monitoring and Sustainability Rating Substantial Risk Description: Risk Management: Delivery monitoring: Delivery monitoring: • Realistic PDO and appropriate selection of project performance indicators, Weak capacity for M&E at the local level. Data based on availability of existing administrative data. availability and quality still present a problem in some • Use of innovative data collection/verification methods, e.g. via mobile phone; instances. In particular in health, given the weak Health spot checks by NGOs or community-based organizations. Management Information Systems, reliability of data collected may become an issue. • Overall: IDA will continue to support intensive technical dialogue. Resumption of governance activities will also contribute to address key issues on governance. With the political crisis, there is a weakening of • Education: Each of the proposed activities under component 1 integrates accountability and supervision mechanisms. governance aspects and tools into its design and mechanisms for implementation aimed at strengthening accountability and transparency. For example, this will include school report cards shared with the community, budget transparency of school grants through public display etc. • Health/nutrition: As under the Parent Project, NGOs will continue to play a critical role in implementation, specifically (i) to ensure service delivery of critical Sustainability: interventions directly to beneficiaries and (ii) external verification functions by an The government is highly dependent on external resources independent verification agency. but funding needs are unmet due to unpredictability in funding. While the proposed project, in combination with Resp: Status: Stage: Recurrent: Due Date: Frequency: other donor and IDA support, such as the GPE for Bank 28 education and the IDA-supported AF in health will help Risk Management: improve the situation for a small segment, sustainability Sustainability: cannot be guaranteed until the situation in the country • This project is intended to protect as much as possible basic social service normalizes. provision to the most vulnerable people in the short term, but cannot, on its own, address systemic sustainability issues. The question of sustainability will be addressed in the dialogue with the Government on longer term priorities as the political situation starts to normalize but should not be seen as one of the objectives for this period of financing. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank Other (Optional) Rating Risk Description: Risk Management: The preparation time frame for the multi-sectoral parent • Extensive consultations with the different stakeholders from the early stages of project required more coordination across sectors and a project preparation to be able to address any concerns early on with regards to project larger number of stakeholders. In this context, the design and implementation arrangements. preparation timeline was quite tight. This risk was • The project design was kept as simple as possible by utilizing existing interventions for amplified by the need to coordinate preparation and align which delivery mechanisms are already in place. milestones with the other multisector project that was • Use of existing, well-functioning PIUs instead of developing new, untested under preparation with the Parent Project. institutional arrangements which would have required a considerable start-up period to become functional. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank Preparation Other (Optional) Rating Risk Description: Risk Management: Natural Disasters • The multi-sector sustainable development project under implementation and the multi-sector food security project under preparation includes a number of activities Due to its geographic location, and weather patterns, support to basic community-based infrastructure, agriculture, social protection among Madagascar is vulnerable to frequent cyclones which other activities, and could thus provide a rapid response to a natural disaster. result in flooding etc. in various regions. This may Resp: Status: Stage: Recurrent: Due Date: Frequency: compromise the project's development effectiveness. Implementation Overall Risk 29 Overall Implementation Risk: Rating Substantial Risk Description: The overall implementation risk remains substantial due to the current country context and the multisector aspects of the Parent Project. 30 ANNEX 3: DETAILED DESCRIPTION OF ACTIVITIES The proposed AF will support the scale up of activities to enhance the development impact of the Project by reaching a larger number of vulnerable and at-risk groups in the context of a limited budget envelope. In this context, the AF will finance the scale-up of Component 3 under the Parent Project. This includes:  Delivery of direct nutrition interventions through supporting community nutrition sites in targeted areas (subcomponent 3a). Specifically, this subcomponent will continue to finance operational costs for the community nutrition sites. Financing will geographically scale-up support to delivery of the package under the Parent Project outlined in Table 1 below. In addition, the component will finance training community nutrition agents (CNAs); providing nutrition inputs; building capacity for community nutrition workers in community education, counseling services, referrals, regular weighing, and culinary demonstrations; and recruitment of Non-Governmental Organizations to support capacity building and supervision for CNAs.  Project management and monitoring and evaluation (Component 3b) associated with the scale-up of activities as outlined in the Parent Project. Specifically, this subcomponent will finance operational costs for the Project Implementation Unit (PIU) as well as supervision costs by the PIU and management costs other relevant entities (including the CCT) related to project activities, including the National Nutrition Office (ONN) and each Regional Nutrition Office (Office Régional de Nutrition) in the targeted areas including scaling up the use of mobile phones for data collection and information sharing.  “Prévention et Sécurisation Nutritionelle” (PSN) which is one of the operational units of the “Office National de Nutrition” (ONN). Given the focus on food security, support will also be given to this existing unit. The PSN officers (one in each region) are tasked to support agriculture and food security interventions at community and household levels including home gardens, short-cycle farming and agriculture, food conservation and transformation, aimed at introducing sustainable local sources of food. These officers work closely with and are the link between the CNAs and agriculture extension agents in promoting food security activities. Specifically, the project will support the inputs required to carry out relevant food security interventions with a focus on providing kits and training at the household level for short-cycle farming as well as the operational costs of the PSN officers to carry out their activities. Specific activities will be supported under subcomponents 3a and 3b. Table 1. Nutrition Interventions for children aged 0–5 and Pregnant/Lactating Women Support to Children 0–2 Years of Age Support to Children 2–5 Years of Age (First Thousand Days)  Home visits for children 0–2 years  Quarterly monitoring of the nutritional status of children 2–5 years at community nutrition sites through mid- upper arm circumference measurements (MUAC)  Monthly weighing of every child followed by  Biannual deworming for all children between 2 and 5 counseling for the mother; monitoring the integral years (psychomotor) development of young children  Biannual deworming for children 12–23 months  Fortified food supplementation for children 6–23 months  Vitamin A and/or zinc supplementation for lactating women and children 6–23 months  Measuring the height of each child (biannual)  Refer sick and/or severely malnourished children to health centers for treatment  Sensitization activities and cooking demonstrations, menu tasting sessions for mothers by the support group during the provision of services to all the children by the community nutrition agents 31 ANNEX 4: PROCUREMENT ARRANGEMENTS A. General Procurements under the proposed AF will continue to be undertaken using the same arrangements as the Parent Project. B. Use of guidelines 1. Procurement will be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated January 2011 and “Guidelines Selection and Employment of Consultants by the World Bank Borrowers” dated January 2011, and in accordance with provisions stipulated in the Legal Agreement. An assessment was conducted to confirm that the PIU has the capacity to carry out procurement activities. 2. For each contract to be financed by the Credit, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 3. Procurement of Works: No procurement of works is expected for this AF 4. Procurement of Goods: Goods procured under this project would include: delivering a package of direct nutrition services to pregnant/lactating women and children under five years of age, computer hardware and software, and vehicle as well as office equipment and furniture. Contracts for goods estimated to cost US$500,000 equivalent and above will be procured through ICB and those below US$500,000 but above US$50,000 through NCB as set forth in the conditions to use NCB7. For contracts below US$50,000, prudent shopping may be used. The procurement will be done using the Bank’s SBD for all ICB and National SBD agreed with or satisfactory to the Bank. Goods of similar nature, to the extent possible, should be grouped in much larger packages to enable wider competition. With prior approval of the Bank, Goods may also be procured through United Nations agencies, and/or by the use of the services of Procurement Agents. All Procurement for goods and services will follow IDA Procurement Guidelines 5. Procurement of non-consulting services: Procurement of non-consulting services will be procured using acceptable SBD consistent with IDA guidelines. And will include various services related to the deployment of information technology systems 6. Selection of Consultants: Consultancy services required for the project would cover consultancies to: technical and financial audits, hiring of NGOs, and training. All consulting services contracts costing more than US$200,000 equivalent for firms will be awarded through Quality and Cost Based Selection (QCBS) method. Contract for specialized assignments to cost less than US$100,000 equivalent may be contracted through Consultant’s Qualifications (CQS) Selection method. Contracts for standards accounting audits and for missions of routine nature may be awarded under Least Cost Selection (LCS). Single Source Selection (SSS) may be employed with prior approval of the Bank and will be in accordance with paragraphs 3.9 to 3.12 of Consultant Guidelines. All services of individual consultants will be procured under individual contracts in accordance with the provisions of paragraphs 5.1 to 5.4 of Consultant Guidelines. Short lists of consultants for services 32 estimated to cost less than $50,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 7. Operating Costs: The operating costs for this project will include expenses related to management of the project by the PCU. These expenses shall consist of some staff salary costs and employment benefits of support staff, office supplies, travel expenses and subsistence expenditures, operation, repair and maintenance costs for vehicles and equipment, office rental and maintenance, materials, supplies and utilities and media information campaigns and communication expenses. Procurement will follow PIU’s administrative procedures which were reviewed and found acceptable to the Bank. 8. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, are presented in the Project Implementation Manual. Table 1: Thresholds for Procurement Methods and Prior Review Contract Value Contracts Subject to Prior Review Expenditure Category Threshold Procurement Method (US$) (US$) 1. Goods >500,000 ICB All 50,000-500,000 NCB Two first contracts <50,000 Shopping None 2. Services Firms >200,000 QCBS All Above US$200,000 <100,000 QCBS , CQ and LCS Two First contract Individual Cons. >50,000 IC All <50,000 IC None, except key project staff Firms and Individuals All amount SSS All B. Assessment of the agency’s capacity to implement procurement 9. Procurement activities will be carried out by U-PNNC. 10. The overall project risk for procurement is Moderate. C. Procurement Plan 11. The Borrower, at appraisal, developed a procurement plan for project implementation which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team on January 8, 2014 and is available at U-PNNC. 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 Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. D. Frequency of Procurement Supervision 12. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended Annual supervision missions to visit the field to carry out post review of procurement actions. 33 E. Details of the Procurement Arrangements Involving International Competition 1. Goods, Works, and Non Consulting Services (a) List of contract packages to be procured following ICB and direct contracting: 1 2 3 4 5 6 7 8 9 Ref. Contract Estimated Procurement P-Q Domestic Review Expected Comments No. (Description) Cost Method Preference by Bank Bid- X $1,000 (yes/no) (Prior / Post) Opening Date Component 3a : Fonctionnement sites Balances UN Agency N N Prior 25 Juil 2014 UNICEF salter avec 64,350 culottes MUAC UN Agency N N Prior 25 Juil 2014 (mid-upper UNICEF arm 4,500 circumferenc e) Pack de 50 UN Agency N N Prior 25 Juil 2014 Toises 193,050 UNICEF Component 3b : Dotation d'outils pour évaluation communautaire Ajout sites 10,000 SSS N N Prior Janv 2014 logiciel SOFTWELL Tomonotorin g (b) ICB contracts estimated to cost above $5,000,000 for works and $500,000 for goods per contract and direct contracting will be subject to prior review by the Bank. 2. Consulting Services (a) List of Consulting Assignments with short-list of international firms. 2.1 Firms 1 2 3 4 5 6 7 8 9 Prior Submission Financial Estimated Contract Ref Selection and and Proposal Description* Amount $ Signature Comments No. Method Post Opening Opening '000 Date Review Date (T) Date Component 3a : Fonctionnement sites 34 Component 3b : Conception du système de collecte des données et des données et de la creation de l'IVR avec HNI Frais du consultant pour la 45,000 SSS Prior N June Aug 2014 conception du systeme de 2014 collecte des données et de la creation de l'IVR Coût Algorithme IVR et 18,832 SSS Prior N Aug 2014 Oct 2014 SMS Coût Algorithme IVR et 20,925 SSS Prior N Aug 2015 Oct 2015 SMS Coût Algorithme IVR et 25,614 SSS Prior N Aug 2016 Oct 2016 SMS 2.2. Individual Consultants Contract 1 2 3 4 5 6 7 8 9 Prior Submission Financial Estimated Contract Ref Selection and and Proposal Description* Amount $ Signature Comments No. Method Post Opening Opening '000 Date Review Date (T) Date Component 3b : Conception du système de collecte des données et des données et de la creation de l'IVR avec HNI Enquêtes et études 75,000 ICS Prior N Janv Apr2016 2016 (b) Prior review: (a) each contract estimated to cost more than US$200,000 per contract for Firms and US$50,000 per contract for individuals consultants; (b) all single source selection; (c) all training; and (d) all amendments of contracts raising the initial contract value by more than 15 percent of original amount or above the prior review thresholds will be subject to IDA prior review mandatory in paragraphs 2 and 3 of Annex 1 of the Bank’s Consultants selection Guidelines. (c) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$100,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. (d) Post review: For each contracts for services not submitted to the prior review, the procurement documents will be submitted to IDA post review in accordance with the provisions of paragraph 4 of Annex 1 of the Bank’s Consultant selection Guidelines. The post review will be based on a ratio of at least 1 to 5 contracts. 35 Madagascar NCB Exceptions (Based on the Procurement Guidelines as revised January 2011) 1. General The procedures to be followed for National Competitive Bidding (NCB) shall be those set forth in “Law no. 2004-009 of July 2004 portant Code des Marchés Publics”(the PPL), with the modifications described in the following paragraphs. 2. Eligibility The eligibility of bidders shall be as defined under Section I of the Procurement Guidelines; accordingly, no bidder or potential bidder shall be declared ineligible for contracts financed by the Association for reasons other than those provided in Section I of the Procurement Guidelines. The requirement of producing a registration number (Numéro d’Immatriculation) for any bidder to participate in the bidding process, shall not be interpreted as a prior any sort of local registration, license or authorization. Government-owned enterprises or institutions of the Republic of Madagascar shall be eligible to participate in the bidding process, only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not dependent agencies of the Borrower or Sub-Borrower. 3. Bidding Documents Standard bidding documents acceptable to the Association shall be used so as to ensure economy, efficiency, transparency and consistency with the provisions of Section I of the Procurement Guidelines. 4. Participation by Joint Ventures Participation shall be allowed from joint ventures on condition that such joint venture partners will be jointly and severally liable for their obligations under the Contract. Therefore, the “Groupement Conjoint”, as set forth in the PPL, shall not be allowed under NCB. 5. Preferences No domestic/regional preference, or any other kind of preferential treatment, shall be given for domestic/regional bidders, and/or for domestically/regionally manufactured goods, and/or for domestically/regionally originated related services. 6. Applicable Procurement Method Subject to these provisions, procurement shall be carried out in accordance with the “Open Competitive Bidding” method (Appel d’offres ouvert) set forth in the PPL. 7. Qualification Qualification criteria shall entirely concern the bidder’s capability and resources to perform the contract taking into account objective and measurable factors. The qualification criteria shall be clearly specified in the bidding documents, and all criteria so specified, and only such criteria so specified shall be used to determine whether a bidder is qualified. Qualification criteria shall be assessed on a “pass or fail” basis, and merit points shall not be used. Bidders’ qualifications shall be assessed by post-qualification. 8. Fees for Bidding Documents In case a fee is charged for the bidding documents, it shall be reasonable and reflect only the cost of their typing, printing or publishing, and delivery to prospective bidders, and it shall not be so high as to discourage bidders’ participation in the bidding process. 36 Bids may be submitted by electronic means only provided that the Association is satisfied with the adequacy of the system, including inter-alia that the system is secure, maintains the integrity, confidentiality, and authenticity of the bids submitted, and uses an electronic signature system or equivalent to keep bidders bound to their bids. 9. Bid validity and Extension of Bid Validity The bid validity period required by the bidding documents shall be sufficient to complete the evaluation of bids and obtain any approval that may be required. If justified by exceptional circumstances, an extension of the bid validity may be requested in writing from all bidders before the original bid validity expiration date, and it shall cover only the minimum period required to complete the evaluation and award of the contract. The extension of the bid validity requires the Association’s no objection for those contracts subject to prior review, if it is longer than four (4) weeks, and for all subsequent requests for extension, irrespective of the period. 10. Bid Evaluation (a) Evaluation of bids shall be made in strict adherence to the evaluation criteria declared in the bidding documents. Evaluation criteria other than price shall be quantified in monetary terms and the manner in which they will be applied for the purpose of determining the lowest evaluated bid shall be established in the bidding documents. A weighting/scoring system shall not be used. (b) A contract shall be awarded to the qualified bidder offering the lowest-evaluated and substantially responsive bid. No negotiations shall be permitted. (c) Bidders shall not be eliminated on the basis of minor, non-substantial deviations. (d) In case of requests for clarifications, bidders shall not be asked or permitted to alter or complete their bids. 11. Rejection of All Bids and Re-bidding All bids shall not be rejected, the procurement process shall not be cancelled, and new bids shall not be solicited without the Association’s prior concurrence. 12. Securities Securities shall be in the format included in the bidding documents. No advance payment shall be made without a suitable advance payment security. 13. Publication of Contract Award Information on contract award shall be published at least in a national newspaper of wide circulation within two (2) weeks of receiving the Association’s no objection to the award recommendation for contracts subject to prior review, and within two (2) weeks from the award decision for contracts subject to post review. Publication shall include the following information: (a) the name of each bidder which submitted a bid; (b) bid prices as read out at bid opening; (c) evaluated prices of each bid that was evaluated; (d) the names of bidders whose bids were rejected and the reasons for their rejection, and (e) the name of the winning bidder, the final total contract price, and the duration and summary scope of the contract. 14. Contract Modifications In the case of contracts subject to prior review, the Association’s no objection shall be obtained before agreeing to: (a) a material extension of the stipulated time for performance of a contract; (b) any substantial modification of the scope of services or other significant changes to the terms and conditions of the contract; (c) any variation order or amendment (except in cases of extreme urgency) which, singly or combined with all variation orders or amendments previously issued, increases the original contract amount by more than 15 37 percent ; or (d) the proposed termination of the contract. A copy of all contract amendments shall be furnished to the Association for its record. 15. Right to Inspect/Audit In accordance with the Procurement Guidelines, each bidding document and contract financed from the proceeds of the Financing shall provide that bidders, suppliers, and contractors, and their subcontractors, agents, personnel, consultants, service providers or suppliers, shall permit the Association, at its request, to inspect their accounts, records and other documents relating to the submission of bids and contract performance, and to have them audited by auditors appointed by the Association. Acts intended to materially impede the exercise of the Association’s inspection and audit rights constitute an obstructive practice as defined in the Procurement Guidelines. 16. Fraud and Corruption Each bidding document and contract financed from the proceeds of the Financing, and as deemed acceptable by the Association, shall include provisions stating the Bank’s policy to sanction firms or individuals found to have engaged in fraud and corruption as defined in the Procurement Guidelines. 17. Debarment under National System The Association may recognize, if requested by the Borrower, exclusion from participation as a result of debarment under the national system, provided that the debarment is for offenses involving fraud, corruption or similar misconduct, and further provided that the Association confirms that the particular debarment process afforded due process and the debarment decision is final. 38 ANNEX 5: DISBURSEMENT TABLE Category Amount of the Percentage of Financing Expenditures to be Allocated Financed (expressed in SDR) (inclusive of Taxes) (1) Minor Works, goods, consultants 6,500,000 100% services, non-consulting services including Operating Costs and Training under Component 3 of the Project TOTAL AMOUNT 6,500,000 39