ISDS Integrated Safeguards Data Sheet (Updated) 51336 Section I - Basic Information Date ISDS Prepared/Updated: 02/20/2003 A. Basic Project Data (from PDS) I.A. 1. Project Statistics Country: ETHIOPIA Project ID: P074020 Project: Public Service Delivery Capacity Building Task Team Leader: Navin Girishankar Program (PSCAP) Authorized to Appraise Date: April 16, 2003 IBRD Amount ($m): Bank Approval: July 15, 2003 IDA Amount ($m): 150.00 Managing Unit: AFTPR Sector: Sub-national government administration Lending Instrument: Adaptable Program Loan (APL) (40%); Central government administration (30%); Status: Lending General public administration sector (30%) Theme: Other public sector governance (P) I.A.2. Project Objectives (From PDS): PSCAP seeks to build capacity for improved public service delivery at the federal, regional, and local levels by implementing civil service reforms, deepening district-level decentralization, improving urban management, and reinvigorating justice sector institutions. Capacity building support under PSCAP will entail the development of working systems, improvements in organizational effectiveness, and provision of bulk in-service training in a demand-driven manner to support the above-mentioned NCBP sub-programs and thereby improve service delivery performance across sectors. PSCAP also aims to enhance the supply response of training institutions and increase access to those information and communication technologies that will facilitate the efficient provision of capacity building for public service delivery. I.A.3. Project Description (From PDS): It is envisaged that PSCAP will help build capacity for public service delivery by implementing civil service reforms, deepening district-level decentralization, improving urban management, and reinvigorating justice sector institutions. In facilitating the rapid, yet focused provision of capacity building support, the Program will include measures to stimulate the supply-side response of training institutions and increase access to appropriate information and communication technologies. Design Principles. Critical to the design of PSCAP is the Government's intention to wholesale capacity building support in focused, yetdemand-driven manner across the NCBP. Accordingly, assistance would be channeled through a limited number of components (or financing windows), each of which would support a menu of activities governed by corresponding operational manuals (see figure 4). According to the operational manuals governing the various components of PSCAP, assistance would be made available to beneficiary institutions (applicants) that meet clearly defined eligibility criteria. Such rules of access would enable beneficiary institutions to demonstrate their ownership of relevant capacity building agendas, and their readiness to absorb assistance in a sustainable and monitorable manner. Applications for assistance would be assessed by appropriate Technical Appraisal Committees (TAC) and PSCAP funds would be committed and disbursed in efficiently and transparently. An additional aspect of design is to provide performance-based replenishments to PSCAP components (and relevant capacity sub-components) that are implemented rapidly in line with the Government's 2 ISDS timetable. Accordingly, components (or financing windows) that are disbursed and implemented fastest will be replenished with unallocated (and if necessary, reallocated) resources. Components (Financing Windows).As discussed in section B3, the capacity building sub-programs covered under PSCAP essentially seek to strengthen the enabling environment within which public institutions operate, and also empower MABs and local governments to undertake the performance improvement measures necessary to enhance frontline service delivery. In addition, appropriate use of ICTs is viewed as necessary to improve institutional performance at various levels of government. PSCAP will therefore include following four components or financing windows (see figure 4): (1) Public Sector Enabling Environment (PSEE); (2) Empowerment, Restructuring, and Performance Improvement (ERPI); (3) ICT for Public Service Delivery; and (4) Performance-based Replenishment (PR) These are described in detail below and depicted in figure 4. Figure 4: Components or Financing Windows Under PSCAP 1. Public Sector Enabling Environment (PSEE) Component Eligible institutions: 3. Information, Communication, Technology *Federal govemment (ICT) Component Regional goverments Eligible institutions: *Federal, regional, and local govemments Menu of activities to be financed: Trinn institution *Resource Management and Control (CSRP) *Accountability and Transparency (CSRP) Menu of activities to be financed: * Enabling legislation and intergovemmental Facilities improvement systems (Urban and DLDP) Connectivity (including Gov-Net) *Legal and policy framework for tax, justice, and Applications developnmnt ICT sectors (Tax Reformn, Justice, and ICT) Specialized training 2. Empowerment, Restructuring, and Performance Improvement (ERPI) Component Eligible institutions: *Ministries, Agencies, and Bureaus (MABs) * Woredas and Municipalities *Justice sector institutions ent Menu of activities to be financed: *Functional reviews, role restructuring, institutional charters, and performance improvements (CSRP) *Restructuring and functional decentralization (Urban and DLDP) Component 1. Public Sector Enabling Environment (PSEE) The PSEE Component aims to strengthen the enabling environment within which public institutions (for example, MABs, woredas, municipalities, revenue authorities, and justice institutions) function. It is envisaged that this component would support a broad menu of activities or prototypes (described in detailed in section A 2.1) covering the following areas: 3 ISDS Expenditure, revenue, and personnel management systemsPrototypes for expenditure and personnel management have been developed under the Resource Management and Control Sub-Program of the CSRP. Those for enhancing revenue performance will be supported under the Tax Reform Sub-Program of NCBP; * Accountability, transparency, and anti-corruption:Prototypes for strengthening both fiduciary and operational accountability are being developed under the Urban Management and District-level Decentralization Sub-programs with support from the Bank and other donors; * Enabling legislation and intergovernmentalfiscal systems.Prototypes for establishing a robust intergovernmental system-including the expenditure and revenue assignments-are being developed under the CBDSD Project and will be included the menu of activities financed under this component; · Legal and policy framework for Justice, Tax, and ICT sect0wring PSCAP preparation, prototypes for strengthening the incentive and accountability framework in each of these sectors will be identified and incorporated. The federal and all regional governments will be eligible to apply for capacity building support in one or more of the areas under the PSEE Component, although the first phase of the program will involve the initial implementation in three regions, selected on a demand-driven basis. The PSEE menu and operational manual will be developed over the course of PSCAP preparation. Component 2. Empowerment, Restructuring, and Performance Improvement (ERPI) The ERPI Component aims to empower MABs, local governments, and justice sector institutions to review their legislative mandates, functions, institutional capacity, structures and systems, as well as demand-responsiveness; develop performance improvement plans to be implemented with PSCAP funds; and then implement the measures (for example, restructuring, development of institutional charters, performance benchmarking) necessary to realize frontline performance gains. Overall, this Component will offer a demand-driven modality to channel support to the restructuring and performance improvement of a broad array of institutions participating in NCBP (for example, functional decentralization under the DLDP, restructuring under Urban Management, and the PSIP under the CSRP. Operational manuals, which were developed for PSIP and local government restructuring under the CBDSD Project, will be appropriately refined and harmonized for the purposes of the ERPI Component. Depending on its type (MAB, local government, justice sector institution), a beneficiary institution would need to meet clearly defined eligibility criteria (including the submission of performance improvement plans) before receiving support. Upon receiving PSCAP funds, the implementation of performance improvement plans would be rigorously monitored. All MABs, local governments, and relevant justice sector institutions (for example, courts) will be eligible for support under the ERPI component, although the first phase of the program will likely involve the participation of 10% of MABs, 15% of woredas, 10% of municipalities, and 10% ofjustice sector institutions, selected on a demand-driven basis. During PSCAP preparation, the Bank and the Government will review options for allowing private and public training institutions to apply for ERPI resources. Under ERPI, training institutions could undertake restructuring (including review of legal status and governance arrangements), specialized training for staff, and various performance improvement measures. A key output for training institutions would be their ability to meet pre-qualification requirements to bid for bulk training contracts under PSCAP. Allowing training institutions to participate in ERPI will depend on the national training strategy currently being developed under the CBDSD Project. 4 ISDS Component 3. Information, Communication, Technology for Public Service Delivery (ICT) This ICT Component aims to achieve rapid, yet sustainable ICT penetration in federal, regional, local, and civil society institutions for the purposes of improving public service delivery at all levels. While support for the policy and legal framework for effective ICT penetration is to be financed under the PSEE Component, there is considerable demand for specific investment and capacity building in the nuts and bolts of ICT development in public institutions. Such investments in principle cover a wide array of activities from the implementation of Government-wide information systems to improve core public management functions to the use of distance learning technologies to facilitate public sector training. Taken together, it is envisaged that the ICT Component could support a menu of activities that includes facilities improvement, connectivity, applications development, and specialized training. Access rules would place a premium on institutional arrangements that promote financial sustainability, indigenous capacity building, strong linkages to the market, and an applications-driven approach to investments in ICT. Further work on identifying eligible institutions as well as access rules will be carried out during PSCAP preparation. Component 4. Performance-based Replenishment (PR) The PR Component is designed to provide greater flexibility and reward implementation progress across the PSEE, ERPI, and ICT Components PSCAP. Specifically, resources under this Component will be used to replenish Components 1-3 based on their disbursement and implementation performance. It is expected that the Monitoring and Evaluation Department of MCB will undertake rigorous and quarterly performance reviews of each Component. These performance reviews will be submitted to the PSCAP Steering Committee and provide a basis for awarding performance-based replenishments (PR) or allocating resources away from poor performance Components on an annual basis. Components: 1. Public Sector Enabling Environment (PSEE) 2. Empowerment, Restructuring, and Performance Improvement (ERPI) 3. ICT for Public Service Delivery (ICT) 4. Performance-based Replenishment (PR) I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) Nation-wide. B. Check Environmental Classification: C (Not Required) Comments: The project preparation process has revealed that there is no need for an investment/rehab component in PSCAP since the Government has decide to "course" fiscal support for investment at the local level through the intergovernmental fiscal system within regions. PSCAP is a federal level specific purpose grant for capacity building (NOT fiscal support for investment in rehab). C. Safeguard Policies Triggered (from PDS) 5 ISDS (click on E for a detailed desciption or click on the policy number for a brief description) Policy Triggered Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) (,-)Yes * No TBD Natural Habitats (OP 4.04, BP 4.04, GP 4.04) Yes * No TBD Forestry (OP 4.36, GP 4.36) Yes *No TBD Pest Management (OP 4.09) iYes *No TBD Cultural Property (OPN 11.03)