The World Bank Report No: ISR5643 Implementation Status & Results Indonesia Third National Program for Community Empowerment in Rural Areas (PNPM-Rural (P115052) Public Disclosure Copy Operation Name: Third National Program for Community Empowerment in Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 13-Apr-2012 Rural Areas (PNPM-Rural (P115052) Country: Indonesia Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Directorate General for Community and Village Empowerment Key Dates Board Approval Date 30-Mar-2010 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date 15-Oct-2012 Last Archived ISR Date 30-May-2011 Effectiveness Date 08-Jul-2010 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Third National Program for Community Empowerment in Rural Areas (PNPM-Rural (P115052) Project Development Objective (from Project Appraisal Document) PNPM#s overall objective is to reduce poverty and improve local-level governance in Indonesia through the provision of investment resources to support productive proposals developed by communities, using a participatory planning process. PNPM-Rural#s project development objective is for villagers in PNPM-Rural locations to benefit from improved socio-economic and local governance conditions. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Component(s) Component Name Component Cost Kecamatan Grants 1186.82 Facilitation Support 78.47 Implementation Support and Technical Assistance 41.75 Public Disclosure Copy Project Management Support 29.96 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Page 1 of 8 The World Bank Report No: ISR5643 PNPM-Mandiri is the GOI’s flagship poverty alleviation program established in 2006 as the umbrella program for all projects using a community driven development (CDD) approach, under the cluster 2 of the overall government poverty alleviation programs. In 2009 GoI formally included PNPM in the Medium Term Plan which confirmed its continuation of this program until 2014. After the success of its first full national scale up in 2009, GoI requested the Bank to continue its support for funding and technical assistance through PNPM Rural III, which financing the implementation of the program during the period of 2010 - 2011. At this third phase, the GOI and local governments finance about 35% of PNPM-Rural. Public Disclosure Copy PNPM-Rural remained as the largest project under the cluster 2 of GoI’s poverty program, with number of kecamatan coverage increased form 4334 to 4736 kecamatans in 2010. The program also continued to include a number of sub-program/ pilot projects focused on specific issues or goals and utilizing same CDD approaches; i.e. PNPM Generasi, PNPM Post Disaster and PNPM Post Crisis. PNPM-Rural III has made good progress and the IBRD portion of the program has fully disbursed. The fourth project in the program series, PNPM-Rural IV, is already disbursing, and a separate implementation status overview is available to the public. PNPM-Rural benefits about 39 million people in 57,000 villages throughout Indonesia. The project’s model of giving communities direct control of decision making and resources is continuing to help improve socio-economic conditions and strengthen governance and accountability at the local level. PNPM is the world’s largest community driven development program with huge scale and scope. The Government, World Bank and other development partners continue to utilize PNPM’s multi sector platform to test innovative pilots and channel resources in emergency situations to further poverty reduction in Indonesia. Three PNPM Support Facility (PSF) grant financed projects linked to PNPM-Rural are: (a) PNPM Generasi. This pilot project is an incentivized grant program targeting three Millennium Development Goals, which are lagging in Indonesia: achievement of universal basic education, reduction in child mortality, and improvement in maternal health. Through the existing PNPM-Rural platform and community driven developmenmt approach, PNPM Generasi uses community planning and incentivized block grants to reach twelve priority health and education indicators. Communities, with assistance from PNPM-Rural facilitators, work with health and education service providers to identify locally appropriate ways to improve access to and uptake of health and education services. Kecamatan grants are used to address either small-scale supply or demand constraints, depending on where the need is the greatest. The Government piloted PNPM Generasi in 164 kecamatan in five provinces beginning in 2007. The accompanying impact evaluation, which incorporated randomization in the selection of treatment and control locations, showed that over the period 2007 to 2010 the Project was successful in achieving its target outcomes for immunization coverage, prenatal care visits and assisted deliveries with increases reaching from 10-11 percent. PNPM Generasi had a statistically significant positive impact on the twelve target health and education indicators, with greatest impacts observed in areas with low baseline health and education indicators. (b) Disaster Management Support. In addition to the core PNPM-Rural project, which allows for the redistribution of available project funds to be used for disaster response, the Government requested US$14.1 million in additional grant financing to respond to two natural disasters which struck Indonesia at the end of 2010. The volcanic eruption of Mount Merapi and a tsunami off West Sumatra, which took place within days of one another, resulted in hundreds of deaths, displaced thousands from their homes, and caused severe loss of productive capital and incomes. Grant funding for post-disaster work for Central Java and Yogyakarta, which impact by the Mt. Merapi eruption, was distributed to 18 sub-districts in 5 districts. US$ 3.3 million has been fully utilized for cash-for-work programs in 14 sub-districts and approximately 196 villages. About US$3 million was utilized for disaster related sub-projects and generated about 750,000 work days. Implementation of disaster response activities in Mentawai (West Sumatra) have been hampered by construction site issues, including environmental safeguards issues and difficulties in transporting construction materials because Mentawai remote location. Discussions are ongoing to use materials for reconstruction from the state-owned forestry firm, Perhutani. Public Disclosure Copy (c) Additional Financing. The Global Financial Crisis Supplement (GFCS) grant was just approved in June 2011 with funding from USAID and therefore still in the phase of implementation. These funds were allocated as on tops to the regular PNPM Rural blockgrant to 433 sub-districts in 7 targeted provinces, which were selected based o n Bappenas mapping on global crisis affected districts; to assist vulnerable populations who were potentially affected by the Global Financial Crisis. In 2010, GoI also provided post crisis grants to several Kabupatens with funding from its own resource. The Government received US$32.7 million in additional grant financing through PNPM-Rural. The funds are being used through PNPM block grants for investment activities in social and economic infrastructure identified through community development planning. This is expected to increase the impact of the program in these areas. The seven provinces are: Bengkulu, Gorontalo, Jawa Tengah, Jawa Timur, Maluku, Nusa Tenggara Timur, and Sulawesi Tengah. Over US$12 million have already been disbursed to community accounts in 354 sub-districts in the 7 target provinces. The remainder of the allocation for kecamatan grants will be fully disbursed in 2012. Allocations for each province vary based on needs, with block grants ranging from Rp 500 to 800 million (US$56,000 to US$89,000). Data on funded sub-projects is currently available for 4 provinces out of the 7 targeted. In these 4 provinces alone, 2,854 sub-projects have been selected by communities to receive financing under this Project - the vast Page 2 of 8 The World Bank Report No: ISR5643 majority of these involve the construction of basic village infrastructure (e.g., roads, bridges, irrigation and water supply, and markets), followed by health and education activities (e. g., construction of schools and health posts, procurement of equipment, scholarships and incentives). Locations Public Disclosure Copy Country First Administrative Division Location Planned Actual Indonesia North Sumatra Provinsi Sumatera Utara ✔ ✔ Indonesia Aceh Provinsi Nanggroe Aceh Darussalam ✔ ✔ Indonesia Daerah Istimewa Yogyakarta Daerah Istimewa Yogyakarta ✔ ✔ Indonesia South Sumatra Provinsi Sumatera Selatan ✔ ✔ Indonesia West Sumatra Provinsi Sumatera Barat ✔ ✔ Indonesia North Sulawesi Provinsi Sulawesi Utara ✔ ✔ Indonesia Propinsi Sulawesi Tenggara Provinsi Sulawesi Tenggara ✔ ✔ Indonesia Central Sulawesi Provinsi Sulawesi Tengah ✔ ✔ Indonesia South Sulawesi Provinsi Sulawesi Selatan ✔ ✔ Indonesia Provinsi Riau Provinsi Riau ✔ ✔ Indonesia East Nusa Tenggara Provinsi Nusa Tenggara Timur ✔ ✔ Indonesia Propinsi Nusa Tenggara Barat Propinsi Nusa Tenggara Barat ✔ ✔ Indonesia Propinsi Maluku Provinsi Maluku ✔ ✔ Indonesia Propinsi Lampung Provinsi Lampung ✔ ✔ Indonesia East Kalimantan Provinsi Kalimantan Timur ✔ ✔ Indonesia Propinsi Kalimantan Tengah Provinsi Kalimantan Tengah ✔ ✔ Public Disclosure Copy Indonesia South Kalimantan Provinsi Kalimantan Selatan ✔ ✔ Indonesia West Kalimantan Provinsi Kalimantan Barat ✔ ✔ Indonesia East Java Provinsi Jawa Timur ✔ ✔ Indonesia Central Java Provinsi Jawa Tengah ✔ ✔ Indonesia West Java Provinsi Jawa Barat ✔ ✔ Indonesia Propinsi Jambi Provinsi Jambi ✔ ✔ Indonesia Provinsi Papua Provinsi Papua ✔ ✔ Page 3 of 8 The World Bank Report No: ISR5643 Country First Administrative Division Location Planned Actual Indonesia Propinsi Bengkulu Propinsi Bengkulu ✔ ✔ Public Disclosure Copy Indonesia Bali Provinsi Bali ✔ ✔ Indonesia Propinsi Banten Provinsi Banten ✔ ✔ Indonesia Propinsi Gorontalo Propinsi Gorontalo ✔ ✔ Indonesia Bangka-Belitung Provinsi Kepulauan Bangka Belitung ✔ ✔ Indonesia Propinsi Maluku Utara Provinsi Maluku Utara ✔ ✔ Indonesia Provinsi Irian Jaya Barat Provinsi Papua Barat ✔ ✔ Indonesia Provinsi Sulawesi Barat Provinsi Sulawesi Barat ✔ ✔ Indonesia Riau Islands Provinsi Kepulauan Riau ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Through the MDG/CCT 'Generasi' pilot: Percentage Value 67.00 78.00 77.00 Deliveries assisted by trained professionals Date 01-Jul-2010 31-Dec-2010 31-Dec-2012 increase by at least 10% points from 40% in Comments Note that baseline data has 2005to 50% in 2010 been updated following recent availability of 2007 CCT data, rather than Susenas data. Through the MDG/CCT 'Generasi' pilot: Percentage Value 72.00 82.00 82.00 Prenatal care visits increase by at least 10% Date 01-Jul-2010 31-Dec-2010 31-Dec-2012 points from 56% in 2005 to 66% in 2010 Comments Note that baseline data has Public Disclosure Copy been updated following recent availability of 2007 CCT data, rather than Susenas data. Through the MDG/CCT 'Generasi' pilot, Percentage Value 65.00 76.00 75.00 improved health indicators: immunization Date 01-Jul-2010 31-Dec-2010 31-Dec-2012 coverage for 12-23 month olds increases by at Comments Note that baseline data has least10% points from3 8% in 2005 to 48% in 2010 been updated following recent availability of 2007 CCT data, rather than Susenas data. Page 4 of 8 The World Bank Report No: ISR5643 >80% satisfaction levels from beneficiaries Percentage Value 80.00 80.00 80.00 regarding improved services and local level Date 01-Dec-2011 31-Dec-2012 governance Comments Previous satisfaction levels > Data from KDP2. New data Public Disclosure Copy 80% for KDP 2 will be available soon from Infrastructure Census and Technical Evaluation EIRRs >30 % for major rural infrastructure Percentage Value 30.00 39.00 30.00 types. Date 14-Jun-2011 01-Dec-2011 31-Dec-2012 Comments EIRR between 32-68% for Data from 2005. New study to KDP 2 be launched soon Improved HH expenditure rates and improved Number Value 2.00 2.00 2.00 access to economic and social services in Date 14-Jun-2011 01-Dec-2011 31-Dec-2012 aminimum o f 4,100 sub-districts in 2010 Comments The impact evaluation was See comment on baseline intended to cover the PNPM data engagement from 2007-2012 and not only the one cycle of block grants which will be financed by PNPM-Rural IV. However results for this indicator are available only for 2007-2010 due to the loss of the control group which occurred when the program went to national scale in 2009/2010. While no additional analysis will be generated for the period 2011-2013, the previous results are considered representative of expected project impact Public Disclosure Copy Intermediate Results Indicators Page 5 of 8 The World Bank Report No: ISR5643 Indicator Name Core Unit of Measure Baseline Current End Target >90% of planned consultant positions are filled Percentage Value 90.00 86.00 90.00 and consultants are trained by the time the Date 01-Jul-2010 31-Dec-2011 31-Dec-2012 Public Disclosure Copy project begins its 2010 socialization and Comments As of 4 March 2010 Generasi -- Only 70% of planning cycle Generasi planned facilitator and computer operator positions filled and among those, 65% of program facilitators in district and sub- district have received training on participatory planning methods and health- education topics By 2011, >70% of local government councils Percentage Value 70.00 90.00 70.00 provide funds and/or oversee PNPM Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Comments Data from 4 March 2010 Block grants disbursed and accounted for Percentage Value 75.00 72.00 85.00 Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Comments Disbursement percentage for annual block grant Facilitators managed and paid monthly Percentage Value 80.00 99.00 80.00 Date 01-Jul-2010 31-Jan-2011 31-Dec-2012 Comments Number of project management unit Percentage Value 350.00 379.00 375.00 established on time Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Comments 2009. Note, this is an annual Data for March 2011 target, to be achieved by April 1 of each year. >70% of sampled villages receive socialization Percentage Value 70.00 0.00 70.00 Public Disclosure Copy material packages for PNPM in 2010 Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Comments Data not available By 2011, audit sample size increases to min. of Percentage Value 12.00 19.70 20.00 20% of all PNPM-Rural sub-districts and audit Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 results are made public Comments 2009 data O&M arrangements are in place and/ or Percentage Value 85.00 85.00 85.00 functioning for >85% of infrastructure works Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Page 6 of 8 The World Bank Report No: ISR5643 Comments As at 4 March 2010 From previous survey. New survey currently underway >70% of infrastructure works are evaluated as Percentage Value 65.00 65.00 70.00 Public Disclosure Copy of high quality Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Comments PNPM Rural 2008 report PNPM Rural annual report showed 65% evaluated as 2009. New survey currently high quality underway. >85% of agreed work plans completed each Percentage Value 95.00 67.00 85.00 year Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 Comments Data from 2006 Min. 45% participation rate of women and Percentage Value 48.00 50.00 45.00 poorest community members in planning and Date 01-Jul-2010 01-Dec-2011 31-Dec-2012 decision-making meetings Comments Data from 2008 KDP2 shows 48% participation for women, and 56% for poorest community members Data on Financial Performance (as of 19-Mar-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P115052 IBRD-78670 Effective 30-Mar-2010 09-Apr-2010 08-Jul-2010 31-Dec-2012 P122032 TF-97410 Effective 16-Aug-2010 16-Aug-2010 16-Aug-2010 31-Dec-2012 P125600 TF-98819 Effective 23-Mar-2011 23-Mar-2011 23-Mar-2011 31-Dec-2012 P125600 TF-98862 Effective 23-Mar-2011 23-Mar-2011 23-Mar-2011 31-Dec-2012 P126423 TF-99616 Effective 06-Jun-2011 06-Jun-2011 06-Jun-2011 31-Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P115052 IBRD-78670 Effective USD 785.00 785.00 0.00 785.00 0.00 100.00 P122032 TF-97410 Effective USD 10.20 10.20 0.00 32.84 5.48 322.00 P125600 TF-98819 Effective USD 13.90 13.90 0.00 6.04 7.86 43.00 P125600 TF-98862 Effective USD 0.20 0.20 0.00 0.00 0.20 0.00 P126423 TF-99616 Effective USD 32.70 32.70 0.00 32.70 0.00 100.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR5643 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects P122032-ID-TF ADDITIONAL FINANCING OF PNPM RURAL III FOR GENERASI (COMM.CCT) SCALING-UP PROGRAM, P125600-Third National Program for Community Empowerment in Rural Areas - Disaster Management Support, P126423-Indonesia - Third National Program for Community Empowerment in Rural Areas - Additional Financing Public Disclosure Copy Page 8 of 8