Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2890 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF SDR 21.6 MILLION (US$30 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR THE RECONSTRUCTION AND ECONOMIC RECOVERY PROJECT October 9, 2018 Social, Urban, Rural And Resilience Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2018) Currency Unit = FCFA CFAF 566.43 = US$1 SDR 0.71671743 = US$ 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M.H. Ghanem Country Director: Soukeyna Kane Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager: Meskerem Brhane Task Team Leader: Zie Ibrahima Coulibaly ABBREVIATIONS AND ACRONYMS AF Additional Financing AFD French Development Agency (Agence Française de Développement) CPF Country Partnership Framework DA Designated Account ESAF Environmental and Social Assessment Framework ESCOP Environmental and Social Codes of Practice ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FAMAs Malian Defense and Security Forces (Forces Armées Maliennes) FM Financial Management GBV Gender Based Violence GPN General Procurement Notice IBM Iterative Beneficiary Monitoring M&E Monitoring and Evaluation MOD Delegated Management Agency (Maitrise d’ouvrage déléguée) NGO Non-Governmental Agency NIES Environmental and Social Impact Notice (Notice d’Impact Environnemental et Social) NPF New Procurement Framework PCU Project Coordination Unit PLG Participating Local Government PMP Pest Management Plan PRRE Reconstruction and Economic Recovery Project (Projet de reconstruction et de relance économique) PPSD Project Procurement Strategy for Development PSIRC Integrated Security Plan for the Center Region (Plan de Sécurisation Intégré des Régions du Centre) RAP Ressetlement Action Plan RETF Recipient-Executed Trust Fund RPF Resettlement Policy Framework SEA Sexual Exploitation and Abuse SOE Statement of Expenditures SPN Specific Procurement Notice STEP Procurement Planning and Tracking Tool UN United Nations UNOPS United Nations Office for Project Services The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) BASIC INFORMATION – PARENT (Mali Reconstruction and Economic Recovery - P144442) Country Product Line Team Leader(s) Mali IBRD/IDA Zie Ibrahima Coulibaly Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P144442 Investment Project GSU19 (9354) AFCW3 (278) Social, Urban, Rural and Financing Resilience Global Practice Implementing Agency: Project Coordination Unit ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Original Environmental Approval Date Closing Date Current EA Category Assessment Category 06-Dec-2013 01-Dec-2018 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) Page 1 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Development Objective(s) The objective of the proposed project is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 23-Dec-2015 26-Apr-2016 21-Dec-2016 30-Jun-2017 19-Dec-2017 27-Jun-2018 Progress towards achievement of MS MS MS MS MS MS PDO Overall Implementation S S MS MS S S Progress (IP) Overall Safeguards MS MS Rating Overall Risk H H H H H H BASIC INFORMATION – ADDITIONAL FINANCING (Additional Financing - Mali Reconstruction and Economic Recovery Project - P167396) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P167396 Additional Financing - Mali Restructuring, Scale Up No Reconstruction and Economic Recovery Project Financing instrument Product line Approval Date Investment Project IBRD/IDA 30-Oct-2018 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 01-Apr-2021 No Page 2 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 100.00 74.77 17.16 81 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Additional Financing - Mali Reconstruction and Economic Recovery Project - P167396) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 100.00 32.15 132.15 Total Financing 100.00 32.15 132.15 of which IBRD/IDA 100.00 30.00 130.00 Page 3 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 30.00 IDA Grant 30.00 Non-World Bank Group Financing Other Sources 2.15 FRANCE: Govt. of [MOFA and AFD (C2D)] 2.15 IDA Resources (in US$, Millions) Credit Amount Grant Amount Total Amount National PBA 0.00 30.00 30.00 Total 0.00 30.00 30.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Social, Urban, Rural and Resilience Global Practice Contributing Practice Areas Fragile, Conflict & Violence Page 4 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Zie Ibrahima Coulibaly GSU19 Responsible) Mahamadou Bambo Procurement Specialist (ADM GGOPF Sissoko Responsible) Boubacar Diallo Procurement Specialist GGOPF Financial Management Tahirou Kalam Financial management GGOAW Specialist (ADM Responsible) Environmental Specialist (ADM Bougadare Kone GEN07 Responsible) Social Specialist (ADM Kristyna Bishop GSU01 Responsible) Aissata Diop Diallo Team Member AFCW3 Alexandra C. Bezeredi Team Member GSU01 Andre Marie Taptue Team Member GPV07 Aoua Toure Sow Team Member AFCW3 Barbry R. Keller Team Member GSU19 Page 5 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Cheick Omar Tidiane Diallo Team Member GTR08 Emelyne Calimoutou Counsel LEGAM Ibrahim Malle Team Member GSU19 Luigi Giovine Team Member GTFOS Michel Rogy Team Member AFCW3 Nelly Gwenaelle Bachelot Team Member GTFSA Roderick M. Babijes Team Member GSU13 Sinaly Sidibe Team Member GCSGO Sung Heng C. Kok Shun Team Member GSU19 Extended Team Name Title Organization Location Page 6 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) MALI ADDITIONAL FINANCING - MALI RECONSTRUCTION AND ECONOMIC RECOVERY PROJECT TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 8 II. DESCRIPTION OF ADDITIONAL FINANCING .................................................................... 12 III. APPRAISAL SUMMARY .................................................................................................. 20 IV. SUMMARY TABLE OF CHANGES .................................................................................... 30 V. DETAILED CHANGE(S).................................................................................................... 30 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 34 ANNEX 1: IMPLEMENTATION ARRANGEMENTS .................................................................... 46 ANNEX 2: MAP IBRD 43909 .................................................................................................. 52 Sptember 25, 2018 Page 7 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING INTRODUCTION 1. This Project Paper seeks the approval of the Executive Directors for: (i) an Additional Financing (AF) IDA Grant of US$30 million to the Reconstruction and Economic Recovery Project (PRRE, P144442 – IDA H901-ML) which approved by the Board on December 6, 2013; (ii) an extension of the closing date of the PRRE from December 1, 2018 to December 1, 2020 in line with the proposed closing date for the AF; and (iii) an update in the results framework to reflect increased outcomes from the additional activities. 2. The safeguards category for the AF will remain ‘B’ as the direct project impacts are not expected to be significant or irreversible. The original project triggered 4.01, OP/BP 4.04, OP/BP 4.36, OP 4.09, OP/BP 4.11, and OP/BP 4.12. The Environmental and Social Management Framework (ESMF), Pest Management Plan (PMP) and Resettlement Planning Framework (RPF) that were prepared for the parent project will continue to guide the implementation of the AF, which will finance substantially similar small scale civil works and income support projects that have been selected by the beneficiary communities and which will be implemented by local companies using local labor. The Resettlement Action Plan (RAP) that was recently prepared for the 50 km of rural roads between Konna and Koana in Center Mali will be implemented under the AF. The PCU and the Delegated Management Agency (Maitrise d’Ouvrage Déléguée) hired under the parent project both have experience with the Bank’s safeguard policies and will provide training in the ESMF and RPF to any contractors to ensure that screening is adequately documented, and that appropriate mitigation measures are implemented. While Bank supervision missions to the North and Center of Mali are still restricted due to security concerns, some limited missions to Konna in the Center are possible with a security escort provided by the United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA). It is expected that the ability to conduct supervision missions in the future may increase with the recent deployment of security forces in the Konna area by the Government of Mali under the Integrated Security Plan for the Center Region (PSIRC). It should be noted that while safeguards impacts are moderate, the broader security and contextual risks such as GBV are substantial. Please see sections on Contextual Risks, Security and GBV for more analysis regarding these issues. 3. The Additional Financing will scale up existing activities in project areas focusing as with the parent project on local infrastructure rehabilitation and provision of productive assets. In addition, it will consolidate the project interventions in the Konna area, in Center Mali, a key economic center with a fishing port that was severely damaged by bombardment in 2013 and which remains fragile today. The rehabilitation of the Port of Konna is the anchor of a spatial and multi-sectorial approach (infrastructure, economic development, basic and social services, governance and civil society, and security) for a key economic zone in Center Mali (50,000 population). This AF will primarily finance integrated activities to complement the rehabilitation of the Port of Konna in Center Mali. 4. The Sahel Alliance was launched in July 2017 by France, Germany and the European Union (EU), with the World Bank Group (WBG), United Nations Development Program (UNDP) and African Development Bank (AfDB) as founding partners. Its intent is to strengthen the peace, security and development nexus by: a) speeding up delivery of development projects; b) crowding in resources, including from the private sector; and c) measuring results. The Sahel Alliance presents a new way of working in a more coordinated and focused manner. Founding partners, now joined by Italy, Spain, the United Kingdom (UK) and Luxembourg, have developed the so-called corpus which includes: (i) a pipeline of almost 500 projects totaling almost €7.5 billion in six thematic areas (Youth Employability Page 8 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) and Education; Rural Development, Agriculture and Food Security; Energy and Climate [WBG is thematic lead] ; Decentralization and Basic Services; Governance; Internal Security) ; (ii) a list of 30 key indicators against which the Sahel Alliance will report on an annual basis; and (iii) a selection of 12 flagship projects (including the rehabilitation of the Konna economic zone) aimed at showcasing the ability of the Sahel Alliance to deliver rapid results, including in vulnerable and insecure areas. The Government of Mali indicated that a success with Konna could allow similar rapid results approaches with important mid-size economic infrastructure in other areas of Center and North Mali, and all founding members of the Sahel Alliance are involved in the multisector multi-donor approach for Konna (see below). 5. Co-financing Grant from AFD. AFD will, under the Sahel Alliance initiative, provide a grant in the amount of €2 million to directly co-finance the activities of the additional financing with emphasis on support, under Component 1, for the planned rehabilitation of the identified 50km of rural roads between Konna and Koana for linking the Port of Konna to the national road network and to targeted villages throughout the commune of Konna. The Board of AFD approved the grant on September 26, 2018. The grant will be processed as a Single Purpose Recipient Executed Trust Fund (RETF) with a project co-financing agreement between the Bank and the Government. The grant administrative agreement required between the Bank and AFD is under preparation. The final amount of the grant in US$ will be known at the signing of the co-financing agreement between the Bank and the Government. The grant will be managed by the Bank and transferred to the Government (Project Coordination Unit - PCU) through a Page 9 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) dedicated project designated account to be opened in a commercial bank. The Bank will have the fiduciary responsibility for the funds provided by AFD. Hence, the Bank will ensure the necessary fiduciary oversight of resources utilization through financial reporting, auditing and additional project audit as per Bank policies. The co- financing deadline for the effectiveness of the co-financing agreement is January 31, 2019. Description of the Parent Project 6. The parent project was approved by the Board on December 6, 2013 for an amount of US$100.00 million and became effective on March 19, 2014. A mid-term review was held in May 2017. Based on the findings and recommendations of the MTR, the project was restructured in October 2017 to update project components 1, 2 and 4. 7. The Project Development Objective (PDO) of the PRRE is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. The project consists of three main components, plus a component on project management: 8. Component 1: Rehabilitation of Local Infrastructure (US$44.17 million) Component 1 supports rehabilitation of local public infrastructure to allow for the resumption of services and economic activity in the areas of Mali affected by the crisis, including rehabilitation and equipment needed for the functioning of schools, health centers, water and sanitation systems, transport and trade facilities, energy and other local public infrastructure under the purview of Local Governments and in consultation with community beneficiaries. Its scope was slightly reduced under the previous restructuring from US$50.0 million. 9. Component 2: Support to Productive Investments (US$40.20 million) Component 2 supports productive investments in the Center and the North of Mali to redress the impacts of the crisis on local communities and households, including: (i) helping rural households restore productive assets and reduce food insecurity, and (ii) helping rural community-based organizations (CBOs) re-launch productive activities. Its scope was increased under the previous restructuring from US$35.0 million. 10. Component 3: Community Engagement and Local Governance (US$10 million) Component 3 aims to strengthen the engagement of communities and Participating Local Governments (PLGs) in the planning, prioritization and oversight of local development activities, and to support the putting in place of elements of local governance. 11. Component 4: Project management, Monitoring and Evaluation (US$5.63 million) Component 4 supports project management, including coordination of activities, communication, procurement, financial management and safeguards functions, as well as monitoring and evaluation (M&E). Its scope has been increased with project restructuring from US$5.0 million. Project Implementation Status 12. The parent project faced start-up delays, including capacity, and geographic challenges in a rather volatile and insecure country environment. After about three years of implementation, the Mid Term Review recommended to Page 10 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) adjust the project approach to: (i) foster concentration of activities in targeted project areas for more visible impacts and integrated development as well as to limit exposure to security risks; and (ii) introduce enhanced M&E mechanisms for more effective supervision of project implementation in insecurity-prone and/or inaccessible areas. Hence, the project was restructured in October 2017 to adjust components, add the United Nations Office for Project Services (UNOPS) as delegated contract management agency, and update the results framework with delivery of the first mid-size economic infrastructure under the project for the rehabilitation of the fishing port of Konna. 13. Concentration of activities. Under implementation since March 2014, the PRRE has proven to be an adaptable instrument that is allowing the Malian government to respond quickly and effectively to an ever changing and fragile environment. For many communities affected by the conflict, it was one of the only mechanisms by which the Government could provide services such as health, education and food security. Through the close implementation support it provided to the PCU, the Bank team realized that the proliferation of small investments scattered across a wide territory affected by insecurity did not produce the anticipated impacts. The team therefore chose to focus on mid-size investments in strategic locations such as the bridge of Tassiga in North Mali or the fishing port in the city of Konna in Center Mali. The rehabilitation of the Port of Konna (where French forces managed to stop the advance of jihadist forces in 2013), located in the Mopti region about 65 Km North of the regional capital and along the Niger river, has now become a catalyst for multisectoral investment by a range of development partners and the Government under the Sahel Alliance initiative which is now visibly restoring and stabilizing a key economic zone in Center Mali. As a result, additional implementing partners were recruited such as UNOPS with a track record for mid-size infrastructure works in similar post-conflict environments. 14. Enhanced Monitoring and Evaluation. Over the last few years, supervision of operations supported by the WBG in Mali has been constrained by protracted insecurity particularly in project areas directly affected by the conflict that the country experienced in 2012. For the PRRE, the PCU has been able to make only limited field visits in support of its supervision efforts while the Bank team has been almost absent from the ground, relying on information / data received from the PCU and the diverse delegated contract management agencies used as project implementing partners. Recognizing this limitation to provide effective and timely support to the Government, the task team designed and successfully piloted in the Region of Gao in North Mali an enhanced monitoring and evaluation approach by which the risk to conduct field visits in insecure and remote areas and report on project activities is transferred to two third parties (a private firm and an Non-Governmental Organization). The private firm (Groupement d’Intérêts Scientifiques des Statisticiens Economiques - GISSE) is conducting a single visit on each site where activities were reported already completed before the launch of the Enhanced M&E test to confirm such information and check, inter alia, effective use of the infrastructure developed or material delivered as well as the level of satisfaction of beneficiaries. The NGO (Association Malienne de Recherche-Action pour le Développement - AMRAD) is tasked with ongoing activities not yet completed. It undertakes multiple field visits to check, inter alia, actual start of activities implementation on the ground, implementation of activities without or with delays, continued presence of contractors and supervision firms on works sites with the required personnel and material, efforts to enforce safeguards requirements, etc. All collected data on the ground by the private firm and by the NGO is geo-enabled and can be complemented using satellite imagery. The full task team proactively discusses the findings of the Enhanced M&E reports with the PCU to identify needed actions to be undertaken and improve the approach as appropriate. It results from this experience that the cost for one Enhanced M&E mission amounts to about 3% of the total cost of the project activities visited during the mission. This suggests that multiple field missions by the NGO to visit ongoing activities not yet completed are likely to induce commensurate increases in the Enhanced M&E costs. To overcome this constraint, the task team and the PCU closely involve the diverse delegated contract management agencies in the discussion of the Enhanced M&E reports and action plan to Page 11 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) improve their performance on the ground. In addition, some focused follow up enquiries on specific sites will be conducted using the less costly Iterative Beneficiary Monitoring (IBM) approach: IBM provides feedback to project teams through multiple rounds of smaller-scale phone-based data collection without the need for field visits (contact details for the phone-based collection are gathered during previous field visits by either the private firm or the NGO). 15. Overall, project implementation is now back firmly on track and disbursements are rapidly catching up. The project is rated Satisfactory for Implementation Performance and Moderately Satisfactory in terms of meeting its Development Objectives. Disbursement stands at US$73.7 million or 81 percent of the overall commitment value and performance has steadily improved since the May 2017 Mid-Term Review. 16. The project has already reached more than 1 million beneficiaries out of the overall 1.4 million targeted. It is on track to meeting outcomes targets for local infrastructure, including rehabilitated classrooms and clinics, street lighting, and seed distribution, among others. It lags somewhat behind in terms of meeting targets for water supply and transport infrastructure rehabilitation and micro projects for productive assets, but this work has accelerated over the past year. The rehabilitation of the fishing port of Konna also lags behind because of the delays encountered in completing the studies required by the delegated contract management agency UNOPS before the start of the civil works. The studies are now available and bidding process ready to be launched for hiring contractors. The port rehabilitation works are expected to start by early-November 2018 and be completed about six months thereafter. II. DESCRIPTION OF ADDITIONAL FINANCING 17. Background and Context. Mali is a sparsely populated, predominantly dry, landlocked Sahelian country with a highly undiversified economy. The country has a land area of 1,241,248 sq. km, representing 4.2 percent of the total area of Africa. Mali shares more than 7,000 km of land boundaries with seven bordering countries, including: Algeria to the north and northeast, Niger to the east, Burkina Faso to the southeast, Côte d’Ivoire to the south, Guinea to the southwest, and Senegal and Mauritania to the west. It has a total population estimated at 14.5 million people, with approximately 63 percent living in rural areas, and 12% in the capital city of Bamako. In addition to the capital city of Bamako, the country has ten administrative regions. The northern regions of Gao, Kidal, Menaka, Taoudeni and Timbuktu represent two-thirds of the entire country’s area, but host only 10 percent of the country’s population. The more populated areas are in the Southern part of the country, close to the Niger and Senegal Rivers. 18. In recent decades, Mali’s economy has experienced mostly steady growth in relation to GDP. However, the socio-political crisis in 2012 set the country back to fragile and highly vulnerable conditions. In 2012, there was a military coup leading to the occupation of the northern regions by rebel and criminal groups. In the context of the food, political and security crises, Mali’s economy contracted in 2012 with a negative growth rate of (-) 1.2 percent. The causes of the conflict are diverse and can be traced to a breakdown in the social contract, growing competition over resources (public funds as well as illicit rents), weak institutions, inequality and underlying social tensions. These drivers are exacerbated by climate change and population growth, which have put people’s livelihoods under stress, as well as increasing access to arms, and maintaining persistently-high levels of youth unemployment. In May and June 2015, a peace agreement was signed by the Government and two armed groups to end the conflict in the north of the country. The peace agreement has created the minimum conditions for the Malian authorities to address the challenges of poverty reduction, including in the North. However, implementation remains challenging as the security Page 12 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) situation in North Mali remains volatile – and has also spread to Center Mali. In a trip to Mopti region on February 11, 2018 the then recently appointed Prime Minister announced that Malian Defense and Security Forces (FAMAs) would progressively deploy 4,000 troops in the central regions of Mopti and Ségou to track down armed and violent extremist groups operating in the area. Since then, despite being targeted by multiple asymmetric attacks resulting in a dozen soldiers killed, FAMAs launched military operations throughout Central Mali and were successfully able to destroy an important established jihadist stronghold in Dialloubé in early March. These operations also aimed to allow the return of Malian Authorities in abandoned localities and the holding of the July 2018 Presidential elections in that part of the country. In parallel, the PSIRC, steered by the Ministry of Interior, is being slowly implemented in Mopti region and has permitted two localities – Kouakourou in Djenné Circle and Sendégué in Mopti Circle – to be re- administered. In addition, in late December–early January, MINUSMA increased its military presence in Mopti with the deployment of a Quick Reaction Force (QRF) to support its multidimensional operations in the region. Details of how measures have been integrated into the project design for coping with insecurity and particularly on the monitoring of the implementation, operations and maintenance of infrastructures and sustainability of project outcomes are addressed in paragraphs 12-14 above. 19. Economic growth in the country has been positive in aggregate terms. Two features of Mali’s growth merit highlighting: (1) the country’s high population growth rates have translated in low economic growth rates in per capita GDP terms, and (2) economic growth has not been accompanied by increases in the number of jobs in the formal sector. Poverty remains high, with over half (50.6 percent) of the population living on less than $1.90 a day and the country ranking 176th on the 2015 Human Development Index. About 90 percent of poor people live in rural areas, relying on rain-fed agriculture and agro-pastoralism to make a living. Such households are highly vulnerable to shocks such as drought, which can erode their productive assets and output (livestock, crop production, etc.). Successive droughts and conflicts in the country’s northern region have also contributed to the rapid expansion of Mali’s urban population, with urban growth rates of 4.7 percent (2010). 20. Alignment with Government Strategy and Country Partnership Framework (CPF). Both the PRRE and the AF support the Government’s Strategic Framework for Economic Recovery and Sustainable Development of Mali (2016-2018) in the Center and North of Mali, namely in two key areas: (i) infrastructure development; and (ii) rural development and food security. In addition, the PRRE and the proposed AF align with the World Bank Group’s CPF for Mali for the period of FY16-19 (Report No.94005-ML), in particular with CPF objective 2.1 Improve productive capacity and market integration of farmers and pastoralists; and CPF objective 2.3 “Improve infrastructure and connectivity to all Malians”. Finally, following the Alliance Secretariat visit on April 9-10, 2018 in Mali, the Government agreed that developing a multi-sectoral multi-donor approach for rapid results in the vulnerable area of Konna (Center Mali) is amongst the three priorities for the operationalization of the Sahel Alliance in the country. 21. Multi-Donor Effort with the Sahel Alliance. This AF will contribute to the operationalization of the Sahel Alliance (AS) in Mali. The AS was launched as a Regional program in July 2017 by France, Germany and the EU, with the WBG, the United Nations Development Program (UNDP) and the African Development Bank (ADB) as founding partners, now joined by Italy, Spain, United Kingdom (UK) and Luxembourg. The intent of the AS is to strengthen the peace, security and development nexus by a) speeding up delivery of development projects; b) crowding in resources, including from the private sector; and c) measuring results. The Alliance presents a new way of working in a more coordinated and focused manner. More precisely, this operation will contribute to multi-donor efforts for the reconstruction of the Konna economic area in Page 13 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Center Mali, which is among the 12 flagship projects of the AS aimed at showcasing the ability of the AS to deliver rapid results, including in vulnerable and insecure areas. This Additional Financing will be co- financed by the AFD. 22. Conflict and the Benefits of Peace. As noted above, the 2012 crisis has weakened citizen trust in government and its ability to maintain peace and deliver services. In addition, it has weakened social bonds between groups. One main effort of the Sahel Alliance and this AF is to look for approaches that help increase confidence between Government and citizens and amongst social groups, both by helping Government build its capacity to reconstruct infrastructure, resume service delivery, and help restore an economic base for livelihoods in conflict-prone areas, as well as demonstrating the benefits of peace. This approach has already shown success in North Mali through the activities of the PRRE and is now being scaled up in existing project areas and extended to Center Mali. 23. Climate Change Vulnerability. Mali’s physical conditions along with factors of social, economic, political, and environmental vulnerability leave the country at risk to several climate related hazards; most notably droughts, floods and locust invasion. Climate change is expected to exacerbate the impacts of flood and droughts, as these hazards are likely to become more intense and severe. And with more than 80 percent of Mali’s population dependent on predominantly rainfed agriculture for their livelihood, the country is extremely vulnerable to the impacts of climate change. 24. Climate change effects are increasingly felt in Mali, in the form of higher temperatures, reduced precipitation and a moving desertification front. Records from Mali Météo indicate that the country has become hotter and drier over the last several decades. Since 1960, temperatures have increased by 0.7°C across most of the country, with typical rates of warming greater than 0.15°C per decade[1]. Sahelian rainfall is characterized by high variability on inter-annual and inter-decadal timescales. Rainfall in Mali declined rapidly between 1950 and the mid-1980s, partially recovered in the 1990s, then declined slightly in the 2000s. While long-term trends may be difficult to identify within his type of variability, records from 1960- 2005 show that overall annual precipitation trends are decreasing slightly, with a significant reduction in the wettest months (July and August), and a slight increase at the beginning of the rainy season (May)[2]. 25. Projections in future climate change are expected to increase inter-annual variability and the occurrence of extreme climatic events. According to climate scenarios developed for Mali, the average annual temperature is likely to increase between 1.2 to 3.6°C by the 2060s, and between 1.8 to 5.9°C by the 2090s[3]. The number of hot days and hot nights are projected to increase across Mali by 23-40 percent by 2060, and this rate of increase is projected to be more rapid in the South[4]. Projected mean annual changes in rainfall are less certain; however, values tend to increase in the South of the country (indicating an increase in heavy rainfall events) and decrease in the North[5]. More frequent El Niño events could also increase the frequency and intensity of droughts across Mali. Mali has been and will continue to be exposed to an uncertain and inadequate rainfall; however, it simultaneously faces an increasing frequency of floods. [1] http://api.commissiemer.nl/docs/os/i71/i7152/climate_change_profile_mali.pdf [2] Butt TA, McCarl BA, Angerer J, Dyke PT, Stuth JW (2005) The economic and food security implications of climate change in Mali. Clim Chang 68:355–378 [3] http://api.commissiemer.nl/docs/os/i71/i7152/climate_change_profile_mali.pdf [4] http://sdwebx.worldbank.org/climateportalb/doc/GFDRRCountryProfiles/wb_gfdrr_climate_change_country_profile_for_MLI.pdf (Note that hot nights/days are defined by the temperature exceeded on 10% of days/ nights in current climate of that region and season.) [5] http://api.commissiemer.nl/docs/os/i71/i7152/climate_change_profile_mali.pdf Page 14 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Water resources and agriculture are among the most vulnerable sectors to climate change, with projected overall yields decline (maize, rice river, cotton, millet / sorghum), exacerbating concerns of food security in the country. By rehabilitating the fishing port of Konna, the parent project and this AF will help restore a vital mid-size economic infrastructure in climate change impacted areas. 26. Additional Financing Activities. There are no changes to the existing project framework or components. The Additional Financing activities fit into the existing project components 1, 2, 3 and 4 as follows: • Addition to Component 1: Rehabilitation of Local Infrastructure (SDR 10.69 million, US$15.91 million equivalent) Component 1 will scale up existing activities, including rehabilitation and equipment needed for the functioning of schools, health centers, water and sanitation systems, transport and trade facilities, energy and other local public infrastructure under the purview of Local Government. In addition, the AF will also finance integrated activities to consolidate the socio-economic impacts expected from the rehabilitation of the fishing port of Konna in Center Mali. These would include rehabilitation of (i) rural roads between Konna and Koana for linking the Port of Konna to the national road network and to targeted villages throughout the commune; and (ii) other targeted local public infrastructures (schools as the local preschool – rehabilitation and/or construction and equipment of a sport complex – youth center – market, etc.) to increase rapid recovery of this key economic zone of Center Mali. Moreover, the AF will finance rehabilitation of targeted public infrastructures out of the Konna area, mainly by filling financial gaps for investments planned under the parent project (in particular, water and sanitation schemes, rural roads and docks) and upgrading technical platforms for better use of infrastructures already delivered under the parent project (mainly health centers). All works will include labor-intensive methods, as under the original project design. All local infrastructure will take due consideration of climate change factors (e.g. increased possibility of flooding, temperature extremes, and weather events) and incorporate adaptation measures in the design. • Addition to Component 2: Support to Productive Investments (SDR 5.74 million, US$8.54 million equivalent) Component 2 will scale up existing activities in project areas, including productive investments in the Center and the North of Mali to redress the impacts of the crisis on local communities and households, including: (i) helping rural households restore productive assets and reduce food insecurity, and (ii) helping rural community-based organizations (CBOs) re-launch productive activities. In addition, the AF will also finance targeted infrastructure activities in the Konna area in support of fish production (fish pounds, floating cages, etc.) and fish commercialization (market). It will also finance other targeted productive investments, in particular development of agricultural land for increased productivity in the Konna area. In an area severely affected by inter-annual climate variability, which is worsening due to climate change, such investments in productive assets will support livelihood adaptation strategies. • Addition to Component 3: Community Engagement and Local Governance (SDR 2.70 million, US$4.02 million equivalent) Through component 3, the AF will finance activities to facilitate and strengthen the engagement of communities and the Participating Local Governments (PLGs) in the planning, prioritization and oversight of local development activities, and putting in place/consolidating elements of local governance. Page 15 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Therefore, it will support community mobilization and ownership through sports and cultural activities aimed to establish and sustain an enabling socio-economic environment for beneficiary communities. Communities and PLGs could be supported by activities aiming at digital literacy and inclusion as well as by an experienced NGO in youth mobilization around sports for better efficiency. Moreover, it will finance institutional strengthening in support of proper and effective operation and management of the fishing port of Konna. It will also finance the newly created Office of Fisheries and Acquaculture Development in the Inner Delta (Office de Développement de la Pêche et de l’Aquaculture dans le Delta Intérieur du Niger - ODPADIN) for starting its core activities as well as launching the operation of the fishing port of Konna following its rehabilitation. • Addition to Component 4: Project Management, Monitoring and Evaluation (SDR 2.47 million, US$3.68 million equivalent) Through component 4, the AF will finance the Project Coordination Unit (PCU) to undertake project management, including coordination of the additional activities and fulfilling of related communication, procurement, financial management and safeguards functions, as well as monitoring and evaluation as under the parent project. To improve supervision performance of its implementation, the AF will support scaling up of activities under the ongoing pilot of enhanced monitoring and evaluation, including Enhanced M&E, Geographic Positioning System (GPS) field tagging and monitoring, use of satellite imagery, interactive beneficiary feedback, and use of existing surveys. These Enhanced M&E techniques fully leveraging on digital technologies would allow the Bank to work more effectively in areas where direct supervision is not always possible due to insecurity and/or geographic inaccessibility. Implementation of the additional activities to the project components 1, 2 and 3 under the AF will result in increased outputs/outcomes as reflected in the results framework. 27. For all subproject works, once deemed necessary after thorough screening, additional site specific social and environmental safeguards instruments will be prepared building from existing Environmental and Social instruments that the Borrower has already prepared namely ESMF, ESMPs/NIESs, RAP and PMP for the original project. To allow full implementation of the proposed AF, it is proposed that the duration of the parent project will be extended from December 1st, 2018 to December 1st, 2020. KEY RISKS 28. Considering the fragility of the political and security situation, as well as the social and stakeholder risks in the Konna area, the Additional Financing is considered a High risk overall project. The parent project has been implemented satisfactorily, including in the Timbuktu and Gao regions in the North of Mali, and conditions and risk mitigation measures for the AF are described below. 29. Political and Governance Risk. Despite the Government’s commitment to the project PRRE, the Political and Governance risk is rated High. The project area includes the North and Center regions of Mali. Since January 2012, several insurgent groups including the National Movement for the Liberation of Azawad (MNLA) have been fighting a campaign against the Malian government for independence and/or greater autonomy for northern Mali, an area they refer to as Azawad. They have been successful in destabilizing the entire North of Mali and a United Nations Multidimensional Integrated Stabilization Mission in Mali (MINUSMA) was Page 16 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) established by the UN Security Council in April 2013 primarily to support the Government of Mali in their efforts to bring stability and protect civilians in this region. Recent attacks in the Center of Mali indicate that the conflict is not limited to the North of Mali. As recently as June 2018, conflicts between neighboring communities in Mopti that resulted in many fatalities are blamed on the existing instability in the region and the rise of multiple jihadist agendas. Various news media describe the situation as, “Mali is not experiencing a civil war in the conventional sense but a complex, multidimensional security crisis of interlinked micro- conflicts.” The UN Security Council has expressed concern that key provisions of the 2015 Agreement on Peace and Reconciliation in Mali remain unimplemented. Although the overall situation has improved since the original project was approved, risks of localized violence are expected to remain high. In addition, the country recently held two-round Presidential elections, which were expected to increase political and security tensions and the risk of violence throughout the election period. Both rounds’ results showed peaceful and successful election turnouts. These unexpectedly positive results are being attributed primarily to the special military security dispositions laid out by the Government through both its PSIRC of Mopti and Segou, as well as the layers of security forces provided by MINUSMA and the French Operation Barkhane, which had troops on stand-by (for example, the government deployed for the elections about 30,000 troops during the first round and 6,000 more troops during the second). 30. Project activities in some areas financed by the AF could attract increased or more targeted jihadist attacks (also attracted by fuel, construction materials, equipment that will be brought for example by UNOPS/subcontractors for the Konna port rehabilitation). This risk is mitigated through the combination of the following measures: (i) in insecure areas, media attention, communications and public information sharing during the works phase will be minimized to reduce public profile of the project; (ii) For the Konna area ,in particular a firm commitment by the Government to ensure adequate security in the general area of the project according to the measures outlined in the Mopti and Segou PSIRC that was approved on August 17, 2017. To date, the Government of Mali has committed to re-establishing one squadron of Gendarmes Mobile (Interior security forces in rural areas) and two sections of Malian Army soldiers will be based in Konna City. The Gendarmerie Mobile will be the core component of the forces and will be providing security to the broader locality of Konna, including the project site and firm workers as and when necessary, while the Malian Army will be performing random patrols and reconnaissance missions in the locality’s surroundings. Other Military units (FAMA and SAI) already present in the Mopti region are included in the security arrangements as additional layers of protection. (iii) Regular updates of the security assessments by the Bamako based Bank security specialist will continue to be provided to the CMU and the Task Team. (iv) Active monitoring of all local news sources and social media, regular meetings with humanitarian, UN and other development partners in order to gather information and monitor jihadist activity. (v) Active monitoring of the security situation in both the North and Center by the CMU-based Crisis Management Team that meets on a weekly basis. And (vi) rely on UNOPS, which is the delegated contract management agency for Konna and has extensive experience working in conflict and post-conflict environments. 31. Gender-Based Violence (GBV)/Sexual Exploitation and Abuse (SEA) risks. This is rated Substantial. Mali ranks 156 (of 159 countries) in the 2015 Gender Inequality Index not only reflecting inequalities in three dimensions – reproductive health, empowerment, and economic activity - but also placing Mali among the lower than average scores of Sub Saharan Africa (SSA) countries. In Mali, more than one woman in ten between 15 – 49 years of age report being a victim of sexual violence at some point in their lives. Among women in relationships, 44 percent have experienced physical, sexual or emotional violence by their current or most recent spouse and a quarter of women have been physically injured as a result of domestic violence, according to the most recent data in the 2012/2013 Demographic Health Survey (DHS). The AF will build on Page 17 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) the parent project to ensure that gender considerations are consistent and well-documented. Furthermore, it will continue to assess and manage project-related risks and adverse impacts on GBV/SEA of women and youth, especially the most vulnerable ones – such as the disabled – around project worksites. These key steps have been captured in the social risks and impacts assessment sections of the safeguards instruments and will further be accounted for in all key site-specific additional safeguards instruments during project implementation. As stated earlier, they will also be included in the bidding documents for the contracts. 32. While the direct GBV risk in the project might be moderate, the highly volatile and conflict affected environment described above could indirectly have a negative effect on the lives and safety of women and girls. The presence of military forces around the project area strengthens a dynamic of unequal power in which females, who have a weaker social position in Mali, could be even more vulnerable to abuse, exploitation or sexual violence. This risk is especially high for girls, considering the high rates of child marriage and adolescent birth rates. Taking part in the activities planned by the project (individually or as members of community-based organizations) also poses a risk of violence for women and girls from community members who might be supporting the extremists, support sharia law, and/or are opposed to females earning income. There is also the risk that the security situation could restrict the access of women to employment and social services, such as education, health, and social protection. To address this broader risk, several mitigation measures have been included in the AF. In the Konna area, in particular, training in GBV/SEA and civilian- military engagement will be provided for members of the Malian military assigned to the Konna area under the PSIRC. In addition, specific screening of those serving in the Konna area will be explored with the Ministry of Defense. 33. In addition, all bidding documents for civil works have social and environmental clauses (SEC) that include: a Code of Conduct that addresses GBV/SEA by contractors/employees; a GBV Accountability and Response Framework for dealing with incidents; and the GRM process described above. Finally, the project is engaging with designated government institutions (i.e. gendarmerie, police, military, social welfare/workers and municipalities, etc.) and local community/traditional leaders and local associations/NGOs to discuss the risks and impacts of GBV/SEA and encouraging them to immediately report, through the GRM, any potential GBV/SEA cases involving contractors, and any other actor on the project defined areas. 34. Environmental safeguards and other social safeguards risks. These are substantial. The project has prepared safeguards instruments: (Environmental and Social Management Framework (ESMF); Resettlement Policy Framework (RPF); Resettlement Action Plan (RAP), 12 Environmental and Social Impact Assessments (ESIAs), Pest management Plan (PMP), measures for addressing GBV/SEA and security risks; and the GRM. Under the parent project, the PCU has a dedicated social and environmental safeguards specialist who worked closely with the World Bank Safeguards specialists and attended several safeguards training sessions including the latest borrower capacity building on ESF. Like the parent project, the AF supports rural roads and other local infrastructure that include some very limited involuntary resettlement issues (i.e. 50 km Konna-Koana road rehabilitation). Implementation of safeguards in a conflict context may be problematic and compliance may be hard to verify. The following mitigation measures are considered in this AF: (i) Environmental and social impacts related to resettlement or destruction of homes and other community infrastructure are expected to be minimal due to the small scale of the AF financed activities; (ii) The Delegated Management Agency hired under the parent project has experience with the Bank’s safeguard policies and will provide training in the ESMF and RPF to any contractors to ensure that screening is adequately documented, and mitigation measures implemented; (iii) Some limited missions to Konna are possible with appropriate security escort provided by MINUMSA. The ability to conduct missions in the future is likely to increase with the deployment Page 18 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) of security forces in the Konna area. However, the ability of the Bank to conduct missions in the North, more generally, remains restricted. Therefore, in the context of an already fragile social, political and security situation, broader social risks will need to be carefully monitored. 35. Stakeholder risks. This rating remains High. Due to the multi-sectoral nature of the project and the context of protracted insecurity in which it is implemented, there are numerous stakeholders and development partners that require strengthened coordination efforts. The project will continue its strategy of mitigating political risks through working in local areas directly with stakeholders, including through third parties as needed. The PCU will continue to play an active role in assisting and facilitating dialogue between implementing partners, as well as building their capacity on technical and project management aspects. The PCU will also work with implementing partners to ensure specific attention to and inclusion of women, youth, elderly and other vulnerable groups in project intervention areas. As stated above, project sites are located in an area included in the PSIRC, which will be protected with the support of the mobile gendarmes, and military personnel, which will need to be managed appropriately as detailed above. There is also strong community mobilization around the peacebuilding effort in the Konna area, in particular – a region that depends on fishing activities. The youth of Konna have set up a community-led security brigade (estimated at over 400 young men) and women’s associations have been equally active through community sensitization and peace campaigns with the aim of protecting villagers and reducing crime. This youth-brigade and women associations are supported by the local government as well. 36. Institutional Capacity for Implementation and Sustainability. This rating remains Substantial, because the Bank team is limited in its ability to travel to some project areas to supervise, verify or provide technical assistance. Several mitigation measures have been included in this AF: (i) An Enhanced M&E strategy that includes the IBM and GRM has been successfully piloted in the Gao region and will be used for the AF as well. It will be adjusted to increase the attention to the active monitoring of all mitigation measures including the implementation of the communication strategy and the GRM. The strategy is implemented by AMRAD and GISSE, an NGO and private firm that have been contracted by the PIU to provide more project monitoring and on the ground presence; (ii) The AF will finance small scale works such as targeted rehabilitation and equipment of schools, health facilities, water supply systems and roads as well as basic infrastructure for productive activities and other small scale productive investments. These are expected to have minimal environmental and social impact and required provisions will be included in the bidding documents and works contracts. These contracts will be undertaken by national firms that are overseen by the Delegated Management Agency (Maitrise d’Ouvrage Déléguée) already hired under the parent project; and (iii) Some limited missions to Konna are possible with appropriate security escort provided by MINUSMA. The ability to conduct missions in the future is likely to increase with the deployment of security forces in the Konna area under the PSIRC. 37. Sector Strategies and Policies. This rating remains Substantial, since the Project adopts a multisectoral approach while attempting to respond to emergency needs. However, the success of the original project has shown that, with careful attention, and a strong coordinating entity, the Project can add value both at the local and national level and put in place a cohesive structure for sustaining investments. Suitable targeting of beneficiaries and screening criteria of project activities are also pivotal to avoid the risk of exclusion (or perception of it) from project activities by some groups. 38. Technical Design of Project or Program. This rating remains Substantial, as the security situation in North Mali remains volatile and has also spread to Center Mali. In line with the recommendations of the Mid Term Page 19 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Review conducted in 2017, both the original project and this AF are: (i) fostering concentration of activities in targeted project areas for more visible impacts and integrated development as well as to limit exposure to security risks, including through spatial and multi-sectorial approaches; (ii) introducing Enhanced Monitoring and Evaluation mechanisms (relying on national third parties to collect data for project activities on the ground which are geo-enabled and can be complemented by the use of satellite imagery) for more effective supervision of project implementation in insecurity-prone and/or inaccessible areas ; and (iii) relying on third party execution as appropriate. Moreover, as for the parent project the design of the AF remains guided by three main principles i.e. (i) flexibility so that activities can be phased based on security situation and presence of civilian administration in project areas; (ii) coordination of project activities with other reconstruction programs to promote coherence of approaches and avoid crowding of efforts; and (iii) involvement of local (and regional) governments and communities in all project activities to ensure relevance of interventions and promote transparency and accountability. 39. Fiduciary. This rating remains Substantial, based on experience from other IDA-funded projects executed in Mali. To mitigate this risk, a dedicated PCU with the appropriate experienced fiduciary experts has been established. III. APPRAISAL SUMMARY A. Economic and Financial Analysis 40. The proposed additional financing is intended to support activities around the rehabilitation of the Port of Konna in the Central of Mali, including improvement in local infrastructure, enhancement of rural transport connectivity in the surrounding area of Konna, and development of income generating activities through labor intensive works. A share of the AF will be allocated to the monitoring of activities in Gao, Timbuktu and Menaka. 41. Rehabilitation of Port of Konna. Because of the short period of time between the launch of activities in Konna and the preparation of this AF, it was not possible to conduct an economic analysis of all investments under Components 1 and 2. An ex-ante evaluation is foreseen early before the implementation to confirm the potential impact of the activities. However, it is possible to estimate the economic impact of investments. The rehabilitation of the Port of Konna is expected to generate employment for the local population in this area of Central Mali (source of income for 6,000 people) and has a positive spillover effect on the economic and business environment (Konna has about 50.000 inhabitants of which 15.000 are in Konna city). During the port rehabilitation phase (60 percent of productive and commercial buildings), unemployment is likely to decrease since workforce will mainly be hired from the local population. Port of Konna is a fishing port that will offer opportunities to local population to develop commercial fishing activities. It was operating before being partially destroyed in 2013 during the conflict. In support of the rehabilitation of the Port before 2013, its technical feasibility and cost-effectiveness had been assessed satisfactory in the evaluation report (December 2012) of the Project in Support of Fisheries Development (Projet d’Appui au Développement de la Pêche – PADEPECHE). The current rehabilitation is based on the previous analysis and the likely economic returns of the new fishing activities. 42. Rehabilitation of Productive Infrastructure. In the Konna area and the wider Mopti region, the project investments will include targeted rehabilitation and equipment of schools, health facilities, water supply systems, and roads as well as infrastructure for productive activities, and other small scale productive Page 20 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) investments. The comprehensive list of productive activities will be completed following consultations with communities and local authorities. In the aftermath of the conflict, the main challenge for population is the lack of economic and employment opportunities. Therefore, these new investments are expected to provide employment to the local population in Konna and people around Mopti. Positive spillover effects are expected in other sectors such as catering/restaurant and housing to accommodate workers during the works period. This will increase demand for housing and food commodities and further boost housing construction as well as agriculture and livestock. Some of the expected economic benefits include improved agricultural productivity, increased agricultural production, and more productive use of rehabilitated infrastructure with among other things: (i) distribution of agricultural inputs and animal feed; (ii) rehabilitation or construction of infrastructure for agricultural production activities, such as small irrigation perimeters, storage facilities, and small processing units; (iii) re-launching of livestock and fishery activities, including restocking, animal feed provision, vaccination and marketing facilities. 43. Rehabilitation of Rural Roads and Other Public Local Infrastructures. Before starting the activities, studies will be conducted to confirm the technical feasibility and cost-effectiveness of rural roads that will facilitate the mobility between the city of Konna, several villages and the main road in the area (RN 16 Sévaré – Gao). It is likely that investments will deliver value for money. Transport time will be reduced, and it will be easier for the local population to travel to sell their products and to procure inputs for their productive activities. Rehabilitation of infrastructure and equipment for water and electricity damaged during the conflict will help support creation of small and medium enterprises. Economic benefits will be gained from improved health conditions, improved water quality, and time savings due to rehabilitated transport infrastructure. Examples of expected benefits include: (a) For school rehabilitation: increased enrollment of students; improved learning environment; improved health and nutrition status; improved community cohesions; (b) For road rehabilitation: increased mobility; improved access to transportation; improved access to markets, schools, and health care facilities; and encouragement to communities to begin small scale productive activities; (c) For water systems rehabilitation: availability of clean, potable water; reduced time and costs of accessing water; reduced morbidity especially among children; reduced health care expenditures; and reduced time away from livelihood activities due to illness; and (d) For community mobilization enhancement: construction and equipment of a sport complex, eventually rehabilitation of playgrounds and activities to encourage citizenship, solidarity and leadership. All local infrastructure will take due consideration of climate change factors (e.g. increased possibility of flooding, temperature extremes, and weather events and incorporate mitigation measures in the design. 44. Evidence of the functioning of the Port of Konna before the conflict suggests that the rate of return to the Port is likely to be substantial or high. Also, evidence from similar rehabilitation of infrastructure and rural road projects in the sub-region confirms that investments in social and economic infrastructure rehabilitation are likely to have greater return in the economy. B. Technical 45. The technical approach for the AF builds on the experience gained during implementation of the parent project in considering the challenges associated with reconstruction and recovery efforts in post-crisis environments where security may constrain project activities. 46. Identification of priorities for the AF. The AF is designed to fit into the existing components of the parent project. It will focus on consolidating the achievements expected from the parent project in targeted zones, including financing targeted investments to expand the impact expected from operation of infrastructures Page 21 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) already completed and to leverage the potential of the concerned zones for integrated development. It will also allow for the completion of investments assessed as critical to specific zones but which cannot be completed within the remaining lifetime of the parent project. Finally, the AF will support scaling up of activities under the ongoing pilot in the Gao region of enhanced monitoring and evaluation to other regions of the Center and of the North of Mali, including third-party field visits, GPS field tagging and monitoring, satellite imagery, iterative beneficiary feedback, and use of existing surveys to support direct supervision in project areas difficult to be accessed because of insecurity and/or geographic constraints. However, priority investments (as proposed by the Client) that are not included in existing PDESCs will be submitted, as required, for rapid validation by communities to confirm their relevance. For investments that are not known yet, participative processes to establish priorities with required stakeholders will be conducted relying on the experience gained under the parent project. Moreover, all investments will be screened to assess their technical feasibility and to confirm the availability of staff and budget to cover operating costs of the expected infrastructures. 47. Selection of areas to benefit from the AF and resource allocation. The areas of the parent project expected to benefit from the AF are parts of the regions of Gao, Menaka, Mopti and Timbuktu. These have been targeted because of the potential they offer to consolidate the project achievements in terms of integrated development (for example, operation of the Port of Konna in relation to complementary activities in the surrounding areas), or opportunity to complete/scale up investments for increased impact and local ownership (mainly electrification in Gourma Rharous/Timbuktu region; water and sanitation systems in the Inner delta/Mopti regions; health centers in the Timbuktu and Gao regions; irrigated perimeters in the Ansongo area/Gao region). Selection of these areas also relies on likelihood of improvements in their security situation from redeployment of the security forces (Malian and MINUSMA, as well as G5 Sahel and French Barkhane) as well as the civilian administration for more effective potential with enhanced supervision. The costs associated with the activities to be financed under the AF have been estimated based on the experience gained under the parent project to implement similar activities. The required resources will be allocated accordingly. 48. The project design included screening for climate and disaster risks and integrating appropriate resilience measures where necessary. Mali is frequently exposed to floods and droughts, which are worsening due to the impacts of climate change. From 1980 to 2014, more than 7 million people were affected by 28 drought and flood events. On average, these result in an annual economic impact of approximately US$140 million. Such climate induced disasters pose serious constraints on development and food security. Crop failure is common and current food crop production is unable to adequately provide for local needs due to persistent threats from droughts and floods. Given this background, the activities under Component 2: Support to Productive Investments (support of fish production, fish commercialization, and development of agricultural land) will provide direct climate change adaptation co-benefits as they will support resilient livelihoods and contribute to improving food security. Similarly, Component 1: Rehabilitation of Local Infrastructure will generate climate co-benefits, as the design of infrastructure will take due consideration of climate change factors (e.g. increased possibility of flooding, temperature extremes, and weather events) and incorporate resilience measures in their design. 49. Implementation arrangements. The project will continue to rely on the existing MODs to benefit from their experience and allow for a timely execution of activities. While LGs and communities will be involved in all project activities, the use of MODs will allow for a more rapid procurement of goods and implementation of infrastructure rehabilitation (Component 1). For Components 2 and 3, the use of the existing NGOs as Page 22 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) MODs with relevant technical expertise will also continue to facilitate community mobilization in support of sustainability of infrastructures put in place and of services expected from. The PCU will continue to rely on the existing Regional Project Implementation Units (RPIU) for more effective regional level coordination of project activities, including preparation of regional works plans, related budgets, and progress reports for submission to the PCU. C. Financial Management 50. FM assessment. The FM system and performance of PCU under the original project are acceptable to IDA. The PCU will be responsible for FM of the AF and remains the Bank’s focal point. This PCU is familiar with the Bank’s FM requirements and is currently managing the parent project. The current FM staffing is adequate. The FM performance was rated Satisfactory following the last supervision mission completed in February 2018. For the purpose of this AF, the fiduciary risk has been assessed as Substantial following the primary risk assessment which took into account (a) the country overall public financial management risk level; and (b) the complexity of project involving several entities. 51. FM arrangements and Implementation Support Plan. The FM of the AF will follow the same approach as the implementation arrangements in place for the ongoing project. The configuration of the current accounting software ‘TOMPRO’ will be updated. The existing FM procedures manual that was prepared during the implementation of the parent project will be used for this AF. The implementation support plan will be the same as for ongoing project with the objective of ensuring the project maintains a satisfactory FM system. FM reporting (a) The unaudited interim financial reports (IFRs) are prepared every quarter and submitted to the Bank regularly (for example, 45 days after the end of each quarter) on time. The frequency of IFR preparation as well as its format and content will remain unchanged. (b) The internal audit function contracted to an individual consultant will remain unchanged. The internal auditor will be required to prepare and submit to the Bank and the Steering Committee, an annual audit plan. Furthermore, in addition to the project coordinator, the internal auditor will be required to provide copies of mission and quarterly reports to the Bank and the Steering Committee. The terms of reference of the current internal auditor will be updated to cover the AF activities, as well as the reporting line, including communication of internal audit reports. (c) There are no overdue audit reports in the project and the sector at the time of preparation of the AF. The audit report of the current project covering the period ending on December 31, 2017 was submitted on time; the external auditor expressed an unqualified opinion. The accounts of the AF will be audited on an annual basis and the external audit report will be submitted to IDA no later than six months after the end of each calendar year; like the ongoing project. The project will comply with the Bank disclosure policy for audit reports and will be disclosed on the official website within one month of issuing of the final report. 52. Disbursement arrangements. The AF will finance 100 percent of eligible expenditures inclusive of taxes. A new DA will be opened by the PIU in a commercial bank acceptable to IDA. Interest incomes generated from the DA will be credited in a sub-account to be opened in a commercial bank. Upon effectiveness, an initial advance up to the ceiling of the DA will be made and subsequent disbursements will be made against Page 23 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) submission of statements of expenditures (SOE) reporting on use of the initial/previous advance. The option to disburse against submission of quarterly unaudited Interim Financial Report (also known as the Report- based disbursements) could be considered, as soon as the project meets the criteria. Other methods of disbursing the funds (reimbursement, direct payment and special commitment) will also be available to the project. The minimum value of applications for these methods is 20 percent of the DA ceiling. The project will sign and submit Withdrawal Applications (WA) electronically using the [eDisbursement] module accessible from the Bank’s Client Connection website. D. Procurement 53. Use of Existing Arrangements. The procurement activities for this AF will be carried out by the unit that is managing the parent project. The procurement arrangements will include possible partnerships with UN agencies for supporting project implementation. These arrangements shall be reflected in the financing agreement, and the PIM will be updated accordingly. The World Bank has rated the procurement performance of the original project as Moderately Satisfactory during the last implementation support mission, and the procurement risk is Substantial. The manual on administrative, financial, and accounting procedures of the parent project will be updated not later than three months following effectiveness to include the new AF. 54. Continued Adherence to Bank’s Procurement Policy. Nevertheless, the Recipient will carry out procurement for the proposed project in accordance with the World Bank’s “Procurement Regulations for IPF Borrowers” (Procurement Regulations) dated July 2016 and revised in November 2017 under the “New Procurement Framework (NPF), and the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011 and as of July 1, 2016. 55. All goods, works and non-consulting services will be procured in accordance with the requirements set forth or referred to in the Section VI-Approved Methods: Goods, Works and Non-Consulting Services of the Procurement Regulations. The Consulting Services will be procured in accordance with the requirements set forth or referred to in the Section VII-Approved Selection Methods: Consulting Services of the Procurement Regulations, the Project Procurement Strategy for Development (PPSD), and Procurement Plan, approved by the World Bank. The Procurement Plan, including its updates, includes for each contract: (i) a brief description of the activities/contracts; (ii) selection methods to be applied; (iii) cost estimates; (iv) time schedules; (v) the Bank’s review requirements; and (vi) any other relevant procurement information. The Procurement Plan covering the first 18 months of the project implementation was prepared and approved before negotiations. Any update of the Procurement Plan will be submitted for the Bank’s approval. The Recipient shall use the Bank’s online procurement planning and tracking tools (STEP) to prepare, clear and update its Procurement Plans and conduct all procurement transactions. 56. All procuring entities as well as bidders, and service providers, i.e. suppliers, contractors and consultants shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project in accordance with paragraph 3.32 and Annex IV of the Procurement Regulations. Requirements and Actions for National Open Competitive Procurement. When procurement is done on the national market, as agreed in the Procurement Plan, the country’s own procurement procedures may be used with the requirements set forth or referred to in paragraphs 5.3 to 5.6 related to National Procurement Procedures. Page 24 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) 57. Project Procurement Strategy for Development (PPSD). As part of AF preparation, the Recipient (with support from the World Bank) has prepared its Project Procurement Strategy for Development (PPSD) which describes how fit-for-purpose procurement activities support project operations for the achievement of project development objectives and deliver Value for Money (VfM). The procurement strategy is linked to the project implementation strategy at country, regional and international levels ensuring proper sequencing of the activities. It considers institutional arrangements for procurement; roles and responsibilities; thresholds, procurement methods, and prior review, and the requirements for carrying out procurement. It also includes a detailed assessment and description of the PCU and the government capacities for carrying out procurement and managing contract implementation, within an acceptable governance structure and accountability framework. Other issues include behaviors, trends and capabilities of the market (i.e. Market Analysis) to inform the procurement plan. As the activities also require strong technical capability to prepare proper technical specifications in order to avert lack of, or inadequate, market response, a plan to enhance such capability is considered in the strategies. Moreover, special arrangements like direct contracting, use of SOEs, UN Agencies, third party monitors, local NGOs, MOD, Force Account, or civil servants needs, results-based arrangements, need for prequalification are considered. E. Social (including Safeguards) 58. Social Development: The project intends to implement small-scale civil works, as well as facilitate productive investments in the project intervention areas, including within the Konna commune, that would contribute to an enabling and forward-looking environment for beneficiaries. The investments to enhance local communities’ livelihoods will have a range of positive social and environmental impacts that can be maximized by effectively integrating key social principles into the design of the project (i.e. community mobilization, youth and women entrepreneurship/stewardship, income generating activities, etc.). Though the project’s environmental footprint is moderate and little resettlement is expected, the security and social risks are considered high and several measures to mitigate such risks have been integrated into project design (see the Risk section above). 59. The project has triggered six operational safeguards policies (OP/BP 4.01, OP/BP 4.36, OP/BP 4.04, OP 4.09, OP/BP 4.11 and OP/BP 4.12) and prepared 2 framework instruments (ESMF, RPF), and a PMP for the entire project and 12 sites-specific ESIAs/ESMPs and a RAP for the identified community—-driven investments. The documents were consulted on and stakeholders’ views taken into consideration in the final versions. They were disclosed in-country on August 13, 2018 and at the World Bank’s website on August 15, 2018. A project level GRM will help manage environmental and social impacts and is embedded to support the project implementation in managing likely risks and impacts. Additionally, to better support the project through implementation to manage foreseen and adverse risks and impacts, the Bank will undertake a comprehensive social audit during project implementation that includes a risk assessment and mitigation plan to deepen the grasp of tangible and intangible risks and impacts. The outcome of this endeavor will support the project while serving as a guidance for activities financed under this AF, as well as a baseline for future activities. 60. Recently, military forces (Corps of Engineers) dealt with unexploded ordinance at the Konna Port/Market. The effort was completed successfully. The military has been operating according to a Code of Conduct that clarified the tenure of appointments and restricted interaction with local communities. As stated above, a number of measures have been or are being undertaken to manage the substantial risks associated with civilian-military engagement. Page 25 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) 61. Employment: Under the parent project, more than 27,000 direct temporary jobs were created during implementation of the priority investment program, especially among youth, while about 130 productive micro-projects for women’s organizations have been so far financed throughout the project areas. To potentially contribute to capital accumulation and the restart of local small businesses, the project aims to continue to provide short-term income generation through both skilled and non-skilled labor, especially for youth, women and vulnerable groups 62. Gender: The project is designed to respond to basic needs of the affected communities particularly women and youth, including people with disabilities, by providing access to potable water and electricity, as well as restoring road access and bridges for enhanced mobility and interaction of people and trade of goods and services (formal and informal). The project will, more specifically: (i) promote more sustainable peacebuilding efforts through employment generation (temporary or permanent) for both men and women, including internally displaced households and disabled as a result of improved transport linkages namely the rehabilitated roads and bridges and productive infrastructures; (ii) prepare, as needed, supplemental sub-project safeguards instruments with specific attention on gender, cultural and stakeholders considerations; (iii) improve information outreach to and counselling of women, youth, IDPs and disabled on project productive investments and employment opportunities; (iv) ensure gender- sensitive messaging of peacebuilding efforts during community-awareness raising campaigns; and (v) ensure that hiring for implementation under the project is inclusive of women. GBV/SEA issues are addressed in paragraph 31 and 32 in the risk section above. 63. Stakeholders and Citizen Engagement: Consultations with and participation of stakeholders including sub- groups in impacted communities is key to the preparation of safeguards instruments. Ensuring that communities are informed before project activities commence and that their concerns are adequately taken into consideration and incorporated into the project’s safeguards instruments and design, constitutes, by itself a real signal of their consideration and engagement in the project lifespan. The project has put in place a mechanism for community participation and engagement in a gender informed manner by actively seeking input and feedback from community members (including through gender-separated consultations and focus groups) on the project’s performance through intermittent perception surveys, including through the GRM. The project design, particularly components 1, 2 and 3, provides good opportunities to engage continuously with local communities on the sustainability of peacebuilding efforts which the Government and its partners are working on and fostering. A local multilevel GRM has been set up and is functioning. The primary purpose of the project’s GRM is to provide a clear mechanism and accountable means for project-affected people to raise demands, grievances and/or complaints and seek remedies when they believe: (i) the project is not providing opportunities to fight poverty and share prosperity, and/or (ii) they have been wrongly harmed by the project instead of benefitting from it. As with the parent project, any adjustments to the GRM for the additional activities will be consulted upon as part of an iterative process, and a Results Framework will monitor percentages of received and/or addressed demands, grievances and complaints. The overall scope of the citizen and stakeholder engagement will be guided by a stakeholder and citizen engagement plan (SCEP) to be prepared and consulted upon at the beginning of project implementation to help foster an enabling and peaceful environment that is conducive of a long-lasting and sustainable development momentum. 64. Social Safeguards: Although it will be implemented in a high-risk security context, the AF introduces no changes in the project design or development objectives. Most of the anticipated risks and impacts are expected to be minimal, site-specific and manageable. Although the project activities are likely to generate Page 26 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) many positive impacts, they may also generate some adverse social (and environmental) impacts that will need to be managed throughout the project design and implementation stages. These include but are not limited to: (i) temporary relocation of shops and small businesses in areas earmarked for road and bridge reconstruction; and (ii) dust, noise, health and safety of workers and communities. The relevant safeguards instruments have been updated and prepared for investments and sites already known. The Borrower will prepare site specific safeguard instruments (ESIAs/ESMPs, RAPs, etc.) once new investments and sites are identified. They will be consulted upon and disclosed in-country and on the Bank’s website per the requirements of the policy. F. Environment (including Safeguards) 65. The AF project, like the parent project, is classified as a Category B operation mainly because of the foreseen investment types under Component 1 and 2 such as rehabilitation of local infrastructure and development of socio-economic productive activities. No large scale, significant or irreversible negative impacts are foreseen from the project activities. The negative impacts would be rather minor, small in scale and mostly site-specific, and thus manageable. The Social section above describes the safeguards policies triggered and environmental and social safeguards instruments prepared to date. 66. Safeguards Implementation Arrangement: The PCU has agreed to apply the following minimum environmental standards during implementation: (i) inclusion of standard Environmental and Social Codes of Practice (ESCOP) in the rehabilitation; (ii) improvement and construction bidding documents of all activities; review and oversight of any major reconstruction works by specialists; (iii) implementation of environmentally and socially sound options for the disposal of debris and wastes (liquid and/or solid); (iv) provisions for adequate budget, grievance redress mechanism, social inclusion and citizen engagement; and (v) satisfactory institutional arrangements for monitoring effective implementation of project activities. The PCU has an environmental and social safeguards specialist under the parent project who will continue to be responsible for all social and environmental safeguards concerns, ensuring that all safeguards screening and mitigation requirements for each subproject will be applied. The overall responsibility for the implementation of the above-described safeguards instruments and processes will rest with the project implementation unit Safeguards Specialist. Institutionally, the team under the Ministry of Environment and Sanitation (DNACPN) is responsible for compliance with environmental and social regulations and safeguards compliance. For the specific case of Konna, if deemed necessary to closely monitor safeguards risks and impacts, the project will reinforce the regional antenna of Mopti to enable it to provide the national PCU in Bamako with feedback on a regular basis. 67. The Government, particularly the PCU, will ensure that the safeguards instruments are timely shared with the main stakeholders, project affected-people (PAP), concerned nongovernmental organizations and development partners at all levels. Page 27 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Table 3: Safeguards Policies Triggered and Corresponding Mitigation Instruments No. Safeguards policies Reasons 1 OP/BP 4.01 The safeguards category for the AF will remain ‘B’ as the direct Environmental project impacts are not expected to be significant or irreversible. Assessment The original project triggered 4.01, OP/BP 4.04, OP/BP 4.36, OP 4.09, OP/BP 4.11, and OP/BP 4.12. The Environmental and Social Management Framework (ESMF), Pest Management Plan (PMP) and Resettlement Planning Framework (RPF) that were prepared for the parent project have been updated and will continue to guide the implementation of the AF, which will finance substantially similar small scale civil works and income support projects that have been selected by the beneficiary communities and which will be implemented by local companies using local labor. The Resettlement Action Plan (RAP) that was recently prepared for the 50 km of rural road between Konna and Koana in Center Mali will be implemented under the AF. Framework instruments are meant to guide the Borrower to prepare site specific safeguards instruments (ESIAs/ESMPs and/or RAPs) during project implementation once details of more sites are known. These will be consulted upon in a gender informed manner, and publicly disclosed both in-country and on the Bank website prior to the physical start of civil works. The PCU social and environmental safeguards special will work closely with DNACPN and the World Bank Safeguards Specialists to ensure proper management of social risks and adverse impacts. 2 OP/BP 4.04 The project activities involve works within a natural river channel Natural Habitats rehabilitation, management/rehabilitation of dykes for flood protection. The impacts associated with the works will be addressed within the ESIA studies to minimize the occurrence of pollution, siltation or alteration of the natural system through project activities. 3 OP/BP 4.36 This Policy is triggered because the project activities will take place Forests within some areas with scattered forest spots and/or legally designated national parks harboring endemic species. The issues related to this policy will be addressed through the ESMF and related sub-project ESIA studies. 4 OP 4.09 This policy is triggered due to the fact that under components 2 Pest Management and 3, the project will finance productive investments (horticulture, agriculture related income generating activities, etc.) that may use some pesticides and/or fertilizers to boost its productivity. Provision to properly manage the foreseen risks and impacts will be addressed under the updated Integrated Pest Management Plan (IPMP) from the parent project. Page 28 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) 5 OP/BP 4.11 The policy is triggered due to the physical infrastructure and Physical Cultural excavation works that will occur as part of project activities in all 3 Resources components. A chance-finds procedure has been incorporated in the updated ESMF and site-specific ESIA as part of the safeguards studies. 6 OP/BP 4.12 The policy is triggered because civil works under components 1, 2 Involuntary and 3 include the rehabilitation of public services (i.e. roads, Resettlement water, bridges, offices, market structure, playgrounds, sport and cultural facilities, etc.) that may cause economic or physical displacement and/or result in temporary disruption of access to homes, offices, markets, other livelihood related assets along the project's RoW, thereby affecting socio-economic activities, assets and livelihoods. In addition to the Resettlement Action Plan (RAP) for the 50km of road section between Koana and Konna, the Borrower has updated the Resettlement Policy Framework (RPF) prepared for the parent project and that the Borrower will follow during project implementation to prepare site specific RAPs. The preparation of the safeguards instruments included consultation with and participation of project stakeholders and PAPs. Like the ESMF, PMP, ESIA/ESMP, the RPF and RAP were reviewed and publicly disclosed both in-country (08/13/2018) and on the World Bank website (08/15/2018) prior to project appraisal. Climate Change co-Benefits 68. According to the climate change co-benefit analysis, the project will have some co-benefits, mainly as regards drainage, improved water points, and small holder agricultural practices. The co-benefits assessment will be completed by the time of Board presentation. World Bank Grievance Redress 69. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, because of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. Page 29 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) IV. SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Safeguard Policies Triggered ✔ Implementing Agency ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ V. DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Component 1: 44.17 Revised Component 1: 60.08 Rehabilitation of local public Rehabilitation of local infrastructure (US$50 public infrastructure million equivalent) Component 2: Support to 40.20 Revised Component 2: Support 48.74 productive investments to productive Page 30 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) investments Component 3: Community 10.00 Revised Component 3: 14.02 engagement and local Community engagement governance (US$10 million and local governance equivalent). Component 4: Project 5.63 Revised Component 4: Project 9.31 management, monitoring management, and evaluation (US$5 million monitoring and equivalent) evaluation Component 5: Contingent 0.00 Component 5: 0.00 emergency response Contingent emergency response TOTAL 100.00 132.15 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications IDA-H9010 Effective 01-Dec-2018 01-Dec-2018 01-Dec-2020 01-Apr-2021 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2014 103,208.00 103,208.00 2015 427,747.00 530,955.00 2016 579,291.00 1,110,246.00 2017 874,788.50 1,985,034.50 2018 1,288,551.50 3,273,586.00 2019 2,010,143.00 5,283,729.00 2020 2,493,588.50 7,777,317.50 2021 1,722,682.50 9,500,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance  Substantial  High Page 31 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Macroeconomic  Moderate  Moderate Sector Strategies and Policies  Substantial  Substantial Technical Design of Project or Program  Substantial  Substantial Institutional Capacity for Implementation and  Substantial  Substantial Sustainability Fiduciary  Substantial  Substantial Environment and Social  Substantial  Substantial Stakeholders  Substantial  High Other  High  High Overall  High  High Safguard_Table COMPLIANCE Change in Safeguard Policies Triggered Yes Safeguard Policies Triggered Current Proposed Environmental Assessment OP/BP Yes Yes 4.01 Performance Standards for Private No No Sector Activities OP/BP 4.03 Natural Habitats OP/BP 4.04 Yes Yes Forests OP/BP 4.36 Yes Yes Pest Management OP 4.09 Yes Yes Physical Cultural Resources OP/BP Yes Yes 4.11 Indigenous Peoples OP/BP 4.10 No No Involuntary Resettlement OP/BP 4.12 Yes Yes Safety of Dams OP/BP 4.37 No No Page 32 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Projects on International Waterways No No OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No No LEGAL COVENANTS2 LEGAL COVENANTS – Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Sections and Description Schedule 2, Section I.C.1. The Recipient shall, in accordance with terms of reference acceptable to the Association and no later than three (3) months after the Effective Date, update the Project Implementation Manual (“PIM”), containing detailed arrangements and procedures for: (a) institutional coordination and day-to-day execution of the Project; (b) Project budgeting, disbursement and financial management; (c) procurement; (d) monitoring, evaluation, reporting and communication; and (e) such other administrative, financial, technical and organizational arrangements and procedures as shall be required for the Project. Schedule 2, Section I.D.1. Not later than November 30 in each calendar year, the Recipient shall prepare, for the purpose of forwarding to the Association, an annual work plan and budget for the Project (including Training and Operating Costs) for the subsequent calendar year of Project implementation, of such scope and detail as the Association shall have reasonably requested. Schedule 2, Section II. The Recipient shall furnish to the Association each Project Report not later than forty-five (45) days after the end of each calendar quarter, covering the calendar quarter. Conditions Page 33 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) VI. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Mali Additional Financing - Mali Reconstruction and Economic Recovery Project Project Development Objective(s) The objective of the proposed project is to rehabilitate basic infrastructure and restore productive activities of communities impacted by the crisis in Mali. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Rehabilitate basic infrastructure (Action: This Objective is New) Local infrastructure rehabilitated under the project functioning one year post rehabilitation (Percentage) 0.00 90.00 Action: This indicator has been Revised People benefitting from rehabilitated local infrastructure 0.00 1,429,347.00 (Number) Action: This indicator has been Revised Direct project beneficiaries (Number) 0.00 1,516,534.00 Action: This indicator has been Revised Female beneficiaries (Percentage) 0.00 51.00 Page 34 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Action: This indicator has been Revised Restore productive activities of communities (Action: This Objective is New) Productive assets rehabilitated under the project utilized for 0.00 95.00 economic activities one year post rehabilitation (Percentage) Action: This indicator has been Revised People benefitting from rehabilitated productive assets 0.00 87,187.00 (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Component 1: Rehabilitation of local public infrastructure (Action: This Component is New) 1.1 Classrooms rehabilitated and functional 0.00 1,641.00 as a result of project intervention (Number) Action: This indicator has been Revised 1.2 Health facilities 0.00 280.00 rehabilitated and functional Page 35 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 as a result of project intervention (Number) Action: This indicator has been Revised 1.3 Water supply systems rehabilitated and functional 0.00 718.00 as a result of project intervention (Number) Action: This indicator has been Revised 1.4.1 Transport infrastructure rehabilitated and functional as a result of 0.00 17.00 the project intervention (Number) Action: This indicator has been Revised Roads rehablitated (CRI, 0.00 137.00 Kilometers) Rationale: Action: This indicator is Core Indicator proposed in addition to the Number of transport infrastructure rehabilitated to take into account need for rehabilitation of lengths of rural road New as envisaged under the Additional Financing with the Konna - Koana road. Roads rehabilitated - 0.00 137.00 rural (CRI, Kilometers) Action: This indicator is New 1.5 Street lighting globes in 0.00 714.00 place and in use as a result Page 36 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 of the project intervention (Number) Action: This indicator has been Revised 1.6 Temporary Jobs created 0.00 44,035.00 (Days) Action: This indicator has been Revised 1.7 Local governments benefitting from rehabilitated local 0.00 123.00 infrastructure (Number) Action: This indicator has been Revised Component 2: Support to productive investments (Action: This Component is New) 2.1.Seeds procured and distributed (Tones/year) 0.00 625.00 Action: This indicator has been Revised 2.2.Animal feed procured and distributed 0.00 4,231.00 (Tones/year) Action: This indicator has been Revised 2.3.Micro-projects on productive assets financed 0.00 636.00 (Number) Page 37 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised 2.4.Micro-projects for women’s organization 0.00 393.00 financed (Number) Action: This indicator has been Revised 2.5.Rehabilitated farm land 0.00 2,564.00 (Hectare(Ha)) Action: This indicator has been Revised 2.6.Beneficiaries receiving emergency assistance 0.00 50,539.00 (Number) Action: This indicator has been Revised 2.7 Spatial multi-sectoral approach in place as a 0.00 1.00 1.00 0.00 0.00 0.00 2.00 result of project intervention (Number) Action: This indicator has been Revised Component 3: Community engagement and local governance (Action: This Component is New) 3.1.Participants in consultation activities 0.00 296,256.00 during project implementation (Number) Page 38 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Revised 3.2.Participating LGs with revised PDSECs 0.00 100.00 (Percentage) Action: This indicator has been Revised 3.3.Grievance redress mechanism are functional 0.00 70.00 at the commune level (Percentage) Action: This indicator has been Revised IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection The percentage of local Local infrastructure rehabilitated under infrastructure that was Annually MOD MOD PCU/RA the project functioning one year post rehabilitated and is rehabilitation functioning one year after rehabilitation The number of people People benefitting from rehabilitated benefitting from Annually PCU/RA MOD local infrastructure rehabilitated infrastructure can be estimated by Page 39 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) multiplying the actual number of local infrastructures rehabilitated by an estimate of the number of people benefitting per type of infrastructure. Core beneficiaries indicator. The number of people directly benefitting from project activities can be estimated by adding (i) the actual number of local infrastructures rehabilitated multiplied by Annually MOD MOD PCU/RA Direct project beneficiaries an estimate of the number of direct beneficiaries per type of infrastructure; and (ii) the number of collective productive assets rehabilitated multiplied by an estimate of the number of people directly benefitting per activity. Female beneficiaries PCU/RA MOD Annual The percentage of Productive assets rehabilitated under the productive assets that was Annually MOD PCU/RA project utilized for economic activities rehabilitated under the MOD one year post rehabilitation project and is being utilized for economic activities one Page 40 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) year after rehabilitation. The number of people benefitting from rehabilitated productive assets can be estimated from (i) the number of collective productive assets People benefitting from rehabilitated rehabilitated by an Annually MOD PCU/RA MOD productive assets estimate of the number of people per activity; and (ii) the number of households benefitting from restored productive assets by an estimate of number of people per household. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection The number of classrooms 1.1 Classrooms rehabilitated and rehabilitated and Semi- MOD MOD PCU/RA functional as a result of project functional as a result of Annually intervention project intervention. The number of health 1.2 Health facilities rehabilitated and Semi- facilities rehabilitated and MOD MOD PCU/RA functional as a result of project Annually functional as a result of intervention project intervention Page 41 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) The number of water 1.3 Water supply systems rehabilitated supply systems Semi- MOD MOD PCU/RA and functional as a result of project rehabilitated and Annually intervention functional as a result of project intervention The number of road 1.4.1 Transport infrastructure structures and transport Semi- MOD MOD PCU/RA rehabilitated and functional as a result of equipment rehabilitated Annually the project intervention and in use as a result of project intervention Roads rehablitated Roads rehabilitated - rural MOD and CPS- 1.5 Street lighting globes in place and in Semestrial PCU/RA MinEnergy use as a result of the project intervention The number of days and persons directly employed in the rehabilitation of local infrastructure and Semi- MOD MOD PCU/RA 1.6 Temporary Jobs created productive assets - targets Annually will be calculated based on estimates of person days that will be employed per type of infrastructure. The number of local governments benefiting Semi- 1.7 Local governments benefitting from MOD PCU/RA from rehabilitated local Annually MOD rehabilitated local infrastructure infrastructure, disaggregated by type and Page 42 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) local government. Tons of seed procured and Semi- MOD MOD PCU/RA 2.1.Seeds procured and distributed distributed under the Annually project Tons of animal feed Semi- MOD MOD PCU/RA 2.2.Animal feed procured and distributed procured and distributed Annually under the project Number of micro-projects Semi- 2.3.Micro-projects on productive assets MOD MOD PCU/RA on productive assets Annually financed financed under the project Number of micro-projects Semi- 2.4.Micro-projects for women’s MOD MOD PCU/RA for women's organizations Annually organization financed financed under the project Hectares of farm land Semi- MOD MOD PCU/RA 2.5.Rehabilitated farm land rehabilitated under the Annually project The number of beneficiaries can be estimated by multiplying Semi- 2.6.Beneficiaries receiving emergency the number of households MOD MOD PCU/RA Annually assistance receiving emergency assistance by an estimate of the number of people per household. The rehabilitation of strategic mid-size MOD and CPS- MOD and CPS- 2.7 Spatial multi-sectoral approach in infrastructure such as the Annually PCU/RA MinFisheries MinFisheries place as a result of project intervention fishing Port of Konna under the Project is the anchor of a spatial and multi-sectorial Page 43 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) approach (infrastructure, economic development, basic and social services, governance and civil society, and security), that may involve other donors such as the members of the Sahel Alliance. The number of participants in calculated by estimating participation based on 3.1.Participants in consultation activities Annually MOD MOD PCU/RA population of LGs to be during project implementation targeted in different years, and disaggregated by gender. Percentage of PLGs with Annually MOD MOD PCU/RA 3.2.Participating LGs with revised PDSECs revised PDSECs that reflect community priorities. NGO / Percentage of project Enhanced NGO / Enhanced communes in which Focal Monitoring 3.3.Grievance redress mechanism are Annually Monitoring and PCU/RA Points are identified, and functional at the commune level Evaluation Agent trained and maintain Evaluation grievance registers. Agent ME IO Table SPACE Page 44 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Page 45 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) ANNEX 1: IMPLEMENTATION ARRANGEMENTS COUNTRY: Mali Reconstruction and Economic Recovery Project – Additional Financing Project Institutional and Implementation Arrangements Procurement 1. The Recipient will carry out procurement under the proposed project in accordance with the World Bank “Procurement Regulations for IPF Borrowers” (Procurement Regulations) dated July 2016 and revised in November 2017 under the “New Procurement Framework (NPF), and the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011 and as of July 1, 2016, and other provisions stipulated in the Financing Agreements. 2. All procuring entities as well as bidders, and service providers, i.e. suppliers, contractors and consultants shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project in accordance with paragraph 3.32 and Annex IV of the Procurement Regulations. All contracts must include the mandatory Code of Conduct and sanctions enforced for any violations. 3. The Recipient shall prepare and submit to the Bank a General Procurement Notice (GPN) and the Bank will arrange for publication of the GPN in United Nations Development Business (UNDB) online and on the Bank external website. The Recipient may also publish it in at least one newspaper of national circulation. 4. The Recipient shall publish the Specific Procurement Notices (SPN) for all goods, works, non-consulting services, and the Requests for Expressions of Interest (REOIs) on their free-access websites, if available, and in at least one newspaper of national circulation in the Borrower’s country, and in the official gazette. For open international procurement selection of consultants using an international shortlist, the Recipient shall also publish the SPN in UNDB online and, if possible, in an international newspaper of wide circulation; and the Bank arranges for the simultaneous publication of the SPN on its external website. Institutional Arrangements for Procurement: 5. The existing Project Coordination Unit will be responsible for the coordination and day-to-day management of the proposed project. The PCU will be responsible for the project planning, financial and procurement management, M&E, internal auditing and safeguards compliance. Technical coordination will involve the appropriate technical ministries. The Coordinator will be responsible for decision making during the procurement process. The PCU will also prepare, not later than three months following effectiveness, a Project Implementation Manual (PIM) including the section on procurement procedures, that will describe in detail the processes and procedures related to the implementation of the proposed activities. The project will Page 46 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) continue to rely on the existing MODs to benefit from their experience, while LGs and communities will be involved in all project activities. 6. Filing and record keeping: The Procurement Procedures Manual will set out detailed procedures not later than three months following effectiveness for maintaining and providing readily available access to project procurement records, in compliance with the Financing Agreement. Archiving room will be available and the PCU will assign one person responsible for maintaining the records. 7. UN agencies may be hired by the Government on a sole-source basis for contracts for which they offer unique qualifications in responding to emergency situations. Standard forms of agreement for UN agencies as acceptable to the Bank will be adopted. For those UN agencies, if such forms have not been agreed with the Bank, the Bank team will provide acceptable sample forms for use by the countries. For the UN agencies hired by the Government, certain quick-disbursing arrangements may be agreed upon to finance a positive list of imported or locally produced goods that are required for the project, further subject to the Bank’s prior agreement on the conditions for the release of the financial tranches and the required documentation and certifications, such as customs and tax certificates or invoices. 8. The recruitment of civil servants as individual consultants or as part of the team of consulting firms will abide by the provisions of paragraph 3.23 (d) of the Procurement Regulations. 9. Procurement Plan: The Recipient has prepared a detailed procurement plan for the first 18 months of project implementation and which was agreed on by the Government and the Bank during the Grant negotiations. Further, the Procurement Plan will be updated in agreement with the Bank Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 10. The PCU will carry out procurement for their needs to implement the Project necessary for the Project implementation. It procures goods, works, or services for the project as included in the Procurement Plan and agreed with the Bank. 11. Training, Workshops, Study Tours, and Conferences: Training activities would comprise workshops and training, based on individual needs, as well as group requirements, on-the-job training, and hiring consultants for developing training materials and conducting training. Selection of consultants for training services follows the requirements for selection of consultants above. All training and workshop activities (other than consulting services) would be carried out on the basis of approved Annual Work Plans/Training Plans that would identify the general framework of training activities for the year, including: (i) the type of training or workshop; (ii) the personnel to be trained; (iii) the institutions which would conduct the training and reason for selection of this particular institution; (iv) the justification for the training, how it would lead to effective performance and implementation of the project and or sector; (v) the duration of the proposed training; and (vi) the cost estimate of the training. Report by the trainee(s), including copy of certificate/diploma upon completion of training, shall be provided to the Project Coordinator and will be kept as parts of the records, and will be shared with the Bank if required. 12. A detailed training and workshops plan giving the nature of training/workshop, number of trainees/participants, duration, staff months, timing and the estimated cost will be submitted to IDA for review and approval prior to initiating the process. The selection methods will derive from the activity requirement, schedule and circumstance. After the training, the beneficiaries will be requested to submit a brief report Page 47 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) indicating what skill have been acquired and how these skills will contribute to enhancing their performance and attaining the project objective. Operational Costs: Operational costs financed by the Project would be incremental expenses, including office supplies, vehicles operation and maintenance cost, maintenance of equipment, communication costs, rental expenses, utilities expenses, consumables, transport and accommodation, per diem, supervision costs, and salaries of locally contracted support staff. Such services’ needs will be procured using the procurement procedures specified in the Project Implementation Manual (PIM) accepted and approved by the Bank. 13. Procurement Manual: Procurement arrangements, roles and responsibilities, methods and requirements for carrying out procurement shall be elaborated in detail in the Procurement Manual which will be a section of the PIM. The PIM shall be revised by the Recipient and agreed with the Bank not later than three months following effectiveness. 14. Procurement methods: The Recipient will use the procurement methods and market approach in accordance with the Procurement Regulations. 15. Open National Market Approach is a competitive bidding procedure normally used for public procurement in the country of the Recipient and may be used to procure goods, works, or non-consultant services provided it meets the requirements of paragraphs 5.3 to 5.6 of the Bank Procurement Regulations. Requirements and Actions for National Open Competitive Procurement N° Requirements Actions 1 Open advertising of the procurement The advertising must be extended to all contracts opportunity at the national level through the inclusion of all contracts in the Procurement Plan and its publication. 2 The procurement is open to eligible firms None. from any country 3 The request for bids/request for proposals Reinforce the related provisions (Public will require that Bidders/Proposers Procurement Code art. 29 / Code of ethics and submitting Bids/Proposals present signed professional conduct in Public Procurement (art. 8, acceptance at the time of bidding to be 11, 12, 13, 28, 38, 39, 40, 41, 42, 44 and 47) by incorporated in any resulting contracts, taking into account the aspects related to the Bank’s confirming application of, and compliance Anti-Corruption Guidelines (including without with, the Bank Anti-Corruption Guidelines, limitation the Bank’s right to sanction and the Bank’s including without limitation the Bank’s right inspection and audit rights). Introducing a template to sanction and the Bank’s inspection and of this acceptance in the bidding documents. audit WB approved template will be provided. 4 Contracts with appropriate allocation of Update and take into account the required new responsibilities, risks, and liabilities. elements (in particular to strengthen environmental and social performance, health and safety) 5 Publication of contract award information The advertising must be extended to all contracts (the field of application of the public procurement code or not). 6 Rights for the Bank to review procurement The requirement must be included in the bidding documents and activities. documents to grant rights to the Bank to review Page 48 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) procurement documentation and activities. The legal agreement may also allow this provision. 7 An effective complaints mechanism None. 8 Maintenance of records of the Procurement The requirement must be included in the bidding Process documents and in the legal agreement. The Recipient must spell out the practical modalities and the appropriate documentation to archive in the procurement procedures manual. 16. The thresholds for particular market approaches and procurement methods and the Bank’s prior review requirements are also provided are indicated in the table below: Thresholds for Procurement Methods and Prior Review Contract (C) Value Expenditure Contracts Subject to No Threshold* [eq. Procurement Method Category Prior Review /[eq. US$] USD] Open Competition International C ≥ 15,000,000 ≥ 10,000,000 Works Market Approach (including turnkey, Open Competition National supply & 1,000,000 < C < 1 Market Approach ≥ 10,000,000 installation of 15,000,000 plant and equipment, and PPP) C ≤ 1,000,000 RfQ None Open Competition International ≥ 2,000,000 C ≥ 3,000,000 Market Approach Goods, IT and non- All contracts at/or above USD 3 2 consulting Open Competition National million are subject to international services 500,000 < C < Market Approach advertising and the use of the 3,000,000 bidding documents agreed with the Bank. C ≤ 500,000 RfQ None National for C < 200,000 None shortlist for Consulting Services 3 selection of for consultant C ≤ 400,000 Engineering and Construction None firms Supervision Page 49 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) Contract (C) Value Expenditure Contracts Subject to No Threshold* [eq. Procurement Method Category Prior Review /[eq. US$] USD] International For ≥ 1,000,000 C ≥ 200,000 shortlist for Consulting Services 4 selection of for ≥ 1,000,000 consultant C > 400,000 Engineering and Construction firms Supervision Selection of ≥ 300,000 5 Individual All Values All Approaches consultants Direct 6 All Values As agreed in the Procurement Plan contracting Training, Based on approved Annual Work 7 Workshops, All Values Plan & Budgets (AWPB) Study Tours *These thresholds are for the purposes of the initial procurement plan for the first 18 months. The thresholds will be revised periodically based on re-assessment of risks. All contracts not subject to prior review will be post-reviewed. 17. Procurement Risk Rating: The project procurement risk prior to the mitigation measures is “Substantial”. The risk can be reduced to a residual rating of “Moderate” upon consideration of successful implementation of the mitigation measures contained in the action plan for strengthening procurement capacity provided in the table below. Action plan for strengthening procurement capacity No. Key Risks Mitigation actions By whom By when 1 Absence of a procurement Update the existing PIM with a section on PCU No later than 3 procedures manual based on procurement detailing all applicable months after “World Bank Procurement procedures, instructions, and guidance for Grant Regulations for IPF handling procurement, the standard bidding effectiveness Borrowers” dated July, 2016 documents, and other standard procurement documents to be used under the Procurement Regulations. The PIM will outline the interaction between the project stakeholders responsible for procurement 2 The procurement team and Train the Procurement Specialist and the PCU/WB No later than 3 technical staff involved in technical experts and the tender committee months after procurement processes have members on the Bank Procurement Grant not mastered the World Bank Regulations effectiveness New Procurement Framework and its tools 3 Lengthy delays in Closely monitor and exercise quality control Coordinator/ Throughout procurement process mainly on all aspects of the procurement process, Internal project due to the management of including evaluation, selection, and contract Audit/ implementation Page 50 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) No. Key Risks Mitigation actions By whom By when the evaluation committee and award in line with the provisions of the Tenders the contract award stage. procurement manual Committee 4 Lack of local qualified bidders Strengthen the capacity of Bidders PCU No later than 3 in certain regions faced with (Suppliers, Firms …) to increase their months after insecurity participation in procurement process for the beginning of better delivering. Simplify procedures to project enable a good execution of contract in the implementation context of urgency and insecurity 18. Procurement supervision. In addition to the prior review and implementation support mission carried out by the World Bank, it is recommended that at least two missions be carried out each year, with one visit to the field to carry out post review of procurement actions. 19. Post review procurement. Post reviews can be done either by World Bank staff or consultants hired by the World Bank. They may also be carried out by third parties such as supreme audit institutions, procurement regulatory authorities, consultancy firms, NGOs, and others, according to procedures acceptable to the World Bank to ascertain compliance with procurement procedures as defined in the legal documents. The procurement post reviews should cover at least 15 percent of contracts across the project that have not been prior reviewed in a financial year. The sampling is risk based and considers (i) the project procurement risk rating, with the riskier projects having a larger sample, and (ii) the contract risk rating, to ensure that riskier contracts constitute a higher proportion of the sample. Post reviews contribute to the overall procurement performance rating of the project based on the rating of the post procurement review and provide a basis for updating the project procurement risk and the risk mitigation plan. 20. Oversight and monitoring arrangements for procurement. A PIM will be prepared/updated based on the experience with the PIM of the parent project and submitted to the Bank for review not later than three months following effectiveness. It will define the project’s internal organization and its implementation procedures. It will include, among other things, all relevant procedures for calling for bids, selecting consultants, and awarding contracts. The project monitoring arrangements for procurement will be specified. Detailed procurement documentation (namely, the PPSD) may be referenced as such and retained in the project files. The detailed 18-month Procurement Plan, as already agreed with the Borrower, will be uploaded on the World Bank website. Page 51 of 52 The World Bank Additional Financing - Mali Reconstruction and Economic Recovery Project (P167396) ANNEX 2: MAP IBRD 43909 Page 52 of 52