62736 INTERNATIONAL RECONSTRUCTION FUND FACILITY FOR IRAQ WORLD BANK IRAQ TRUST FUND PROGRESS REPORT IRFFI DONOR COMMITTEE MEETING BAGHDAD, IRAQ - DECEMBER 6, 2010 WORLD BANK IRAQ TRUST FUND Progress Report IRFFI Donor Committee Meeting Baghdad, Iraq – December 6, 2010 STATUS OF THE WORLD BANK IRAQ TRUST FUND 1. The World Bank, as Administrator of the World Bank Iraq Trust Fund (ITF), has agreed to furnish an annual status report describing the contributions, disbursements, and implementation progress of financed operations to the contributing donors of the ITF. This report provides an interim update for the IRFFI Donor Committee Meeting in Baghdad (December 2010), covering the period from January through October 2010. 2. There have been no changes in the donor contributions to the ITF since the Status Report to Donors dated December 31, 2009 – 17 donors have deposited US$494.4 million into the ITF. Table 1 (Annex 1) shows the status of donor pledges, commitments, and deposits as of October 31, 2010. 3. As of October 31, 2010, the ITF had financed 24 projects valued at US$524.5 million, exceeding donor contributions by US$30.1 million and committing 106% of donor deposits to projects. Investment income provided the incremental funding needed to finance additional project grants. 4. ITF projects focus on helping the Government of Iraq (GOI) strengthen its institutional capacity to deliver services, utilize its resources in an efficient and transparent manner, and implement key reforms. ITF grants finance textbooks, schools, pharmaceuticals and health clinics, improved safety nets, water supply and sanitation, irrigation and drainage, electricity, environmental management, private sector development, and banking and public finance management reform efforts. The ITF also finances technical assistance to help strengthen Iraqi institutions, develop baseline poverty data, and improve social safety net targeting mechanisms. 5. Five out of 24 ITF-financed projects have been successfully completed. The First Capacity Building Project (US$2.5 million) which closed in August 2004 financed various workshops and training for Iraqi authorities to equip them to implement international programs of support and to play a leading role in the reconstruction process. The Textbook Provision Project (US$38.8 million) closed in December 2006. It delivered 82 million textbooks against a target of 69 million. The Community Infrastructure Project (US$19 million) closed in December 2008, after financing 22 subprojects which improved 89,000 hectares of irrigated land, benefitted over 150,000 farmers, and created over 172,000 days of employment. The Marshlands School Construction Project (US$5.2 million) which closed in June 2009 financed the construction of 30 new small schools in the Southern Marshlands area of Iraq. The Emergency Health Rehabilitation Project, which closed in February 2010, financed the rehabilitation of 9 emergency units, construction of a drug storage warehouse in Baghdad, procurement of pharmaceuticals worth US$1.7 million, training of 48 doctors and 60 nurses in acute trauma care, and training of 22 MOH doctors in emergency preparedness management. 6. The current portfolio comprises 19 active projects, valued at US$435.1 million, of which five are Technical Assistance (TA) projects executed by the World Bank at Government request (totaling US$22.6 million) and 14 are recipient-executed operations (amounting to US$412.5 million). The following chart illustrates the distribution of projects by sector. Annex 2 1 includes the Quarterly Project Summary Sheets, which provide status updates on the individual projects as of September, 2010. 7. Overall, the ITF is valued at US$575 million – US$494.4 million in donor deposits plus US$80.6 million of investment income. Of this total, US$524.5 million have been committed through grant agreements with Iraqi agencies. US$41.2 million were allocated to cover costs for project preparation and supervision, trust fund management, and administration fees over the life of the ITF through December 31, 2013. US$1.3 million were refunded to the European Commission (EC) due to unused fund balances from the First Capacity Building Project which closed in August 2004. As of October 31, 2010, US$8.1 million is available from investment income and has been committed to provide additional financing for (i) the Second Capacity Building Project (US$2 million), and (ii) the Integrated Energy Strategy Technical Assistance Project (US$1.9 million), and to finance two new projects, (iii) the Rationalization of the Universal Public Distribution System Technical Assistance Project (US$3 million), and (iv) the Second Emergency Assistance Program for Primary Health Care in the Southern Iraqi Marshlands (US$1.2 million). Table 2 summarizes the sources and use of available funds as of end-October 2010. 8. With regard to recipient-executed projects, commitments (the value of signed contracts) and disbursements (actual expenditures for goods, services, etc.) continue to increase. Between December 31, 2009 and October 31, 2010, project commitments increased by US$10.8 million, and project disbursements by US$59.6 million. As of October 31, 2010, commitments totaled US$415.4 million (about 83 percent of the grant amount), and disbursements totaled US$353.7 million (about 71 percent of the grant amount). Table 3 provides the progress over time of procurement and disbursement of projects implemented by Iraqi agencies while Table 4 provides the status of grant commitments by project. 9. As of October 31, 2010, total costs for management of the trust fund, administration fees, and external audits were about US$4 million. Projections indicate that cost recovery charges for project preparation, appraisal and supervision, trust fund administration and fees over the life of the ITF will total about US$41.2 million, or about 8% of the value of the fund. 2 PORTFOLIO IMPLEMENTATION HIGHLIGHTS 10. Important training activities were financed in 2010, aimed particularly at enhancing sustainable government capacity for project implementation and to facilitate implementation of the ITF portfolio. These included a procurement training workshop in Baghdad in August for 22 government officials; an intensive multi-sector capacity building program for Iraqi public officials to enhance their knowledge and skills for more effective implementation of development projects (with special focus on developing monitoring and evaluation systems projects); and training (in Beirut from November 30-December 3, 2010) for all PMTs in e-disbursements, operation of designated accounts, and financial management. 11. For much of 2010, portfolio improvement ranked high on the agenda and was pursued through stepped up supervision, heightened focus on the portfolio by World Bank senior management, meetings of the Joint Portfolio Oversight Committee (created following the May 2009 CPPR), and intensified Government-World Bank dialogue. The fourth meeting of the JPOC held on 17 June 2010 focused, among other things, on implementation constraints facing the IDA-funded Third Emergency Education Project (TEEP), and audit issues affecting the Iraq portfolio, in general. The fifth JPOC meeting held to coincide with the World Bank Country Director’s visit to Baghdad in October 2010 discussed at length action plans for stepping up implementation of the following projects -- the Emergency Electricity Project and the Emergency Roads Rehabilitation Project. SELECTED OUTCOMES OF THE ITF PORTFOLIO IN IRAQ 12. Below are some of the outcomes of ITF-financed projects in Iraq. The Quarterly Project Summary Sheets in Annex 2 provide additional information on project results and outcomes. • Completion of the first nationwide household income and expenditure survey since 1998, covering 18,000 households. The survey results enabled Iraq to design a robust National Strategy for Poverty Reduction for 2010-2014, which aims to reduce poverty by 30%, among other goals. The Strategy was launched in Baghdad on January 14, 2010. • Installation of the telecommunications network, which is operational at 56 sites. The inter-banking network, which connects the Central Bank of Iraq and commercial banks with high capacity telecommunications capabilities, is operational in 29 sites. • Rehabilitation of two water treatment plants and supply systems, serving about 300,000 people. • Completion of 22 labor-intensive rural water supply projects, improving 89,000 hectares of irrigated lands and benefitting about 150,000 end beneficiaries. • Rehabilitation of nine hospital emergency units, procurement of pharmaceuticals with a value of US$1.7 million and supply of essential equipment and drugs to 12 emergency units, provision of training to 48 doctors and 60 nurses in Advanced Trauma Life Support and 22 doctors in Emergency Preparedness and Response. • Construction of five rehabilitation centers, provision of training to 82 medical personnel in physical therapy and 35 staff in the production and fitting of prostheses/orthoses. • Rehabilitation of 133 schools and construction of 80 schools, benefitting about 48,000 students. • Organization of 22 workshops for 600 Iraqi officials to provide essential project implementation tools and to help Iraqi officials develop professional networks with regional neighbors. • Organization of 66 workshops for over 1,480 Iraqi officials in economic management monitoring and evaluation, public sector management and social safety nets. 3 • Support through the PFM project to preparation of the Budget Strategy for 2011 and to improved budget execution. PROJECT DEVELOPMENTS 13. Implementation of the Emergency Water Supply, Sanitation and Urban Reconstruction Project (US$110 million) has improved although it is still slow overall largely on account of lack of institutional capacity, low capacity for decision-making and weak follow-up of contracts. The rehabilitation and upgrading of Karbala Water Supply and Sewerage System is about 60% complete. The upgrading of water supply in Beiji has started, while the tender documents for the rehabilitation and upgrading of the Kena’an Water Supply Systems are being completed by the PMT. The upgrading of the Al Hussainia Water Supply System is in progress. 14. Under the Emergency Baghdad Water Supply and Sanitation Project (US$65 million), all works contracts in Al Zafaraniyeh Water Supply and Sadr City sewer systems have been completed. In Al Zafaraniyeh district, 45 km of water pipes are now in place and the water system is operational. In Sadr city, 85 km of sewers have been replaced and 9000 houses connected to the main system in five sectors. 15. Good progress has been made to date by the Banking Sector Reform Project (US$10 million) towards the objectives laid out by the GOI in its comprehensive five-year Banking Reform Strategy. On organizational structure and capacity building, consultant proposals were received and evaluated and contract negotiation started in April 2010. On internal audit and compliance, although technical and financial proposals were received, they were all destroyed following the recent attack on CBI and PMU. On IT Training, Expressions of Interest were solicited and Requests for Proposals sent to the short listed firms but due to the attack the closing dates have had to be extended. The financial restructuring of Rasheed Bank and Rafidain Bank will be accelerated through the establishment of a Financial Restructuring Reconciliation Committee. CBI is currently working on its regulatory and supervisory authority. The contract with the selected consultant was signed on April 2010 and the consultant commenced work at CBI, Baghdad on May 30, 2010. The project is in the midst of procuring training for branch managers of the two targeted state-owned banks. Unstable security conditions, including the attack on the CBI, which led to damage of the PMU office (furniture, documents and equipments), impacted this project in 2010, hence the need for a project extension to June 30, 2013 to ensure full implementation of the project’s key components. 16. Despite a slow start, implementation of the Public Finance Management Project (US$18 million) has accelerated since the beginning of 2010. Technical proposals for the four major consultant contracts have been received. The project continues to provide the platform for sustained engagement with the GOI on PFM reform, as evidenced by the recent (May 2010) consultative workshops in Istanbul, which resulted in the Draft Budget Strategy for 2011, as well as a draft of a new Accounting Manual. 17. With support from the Emergency Private Sector Project (US$65 million) both the Iraqi Inter-Banking Network (IIBN) and Microwave Network have been installed and are operational. However, the attack on CBI in June 2010 damaged the IIBN site at CBI. IIBN consists of 35 sites altogether of which the CBI site is one of the two core sites. IIBN is currently still operational and a plan to rehabilitate the CBI site is being prepared in consultation with the Project Management Team. 18. The number of schools to be constructed by the Emergency School Construction and Rehabilitation Project (US$60 million) was reduced from 117 to 48 because of price escalation, the appreciation of the Iraqi Dinar, unavailability of land, and security constraints. 32 schools have been constructed and 16 are currently under construction. Due to the reduction in the number of schools to be 4 built, the project was restructured in September 2010 to: (i) update project targets; (ii) use the uncommitted amount of US$8.8 million to finance the construction of additional six-classroom blocks in 20 selected schools in the Baghdad area; (iii) re-allocate funds within disbursement categories to align with actual project costs and to take account of the additional construction activities; and (iv) extend the project closing date to June 30, 2012. 19. An investigation by the World Bank’s Integrity Vice-Presidency (INT) in 2010 concluded that total ineligible expenditures incurred by the project in 2009 were actually higher (at US$61,519) than the US$27,224 already reimbursed by the Government. The World Bank is currently pursuing reimbursement of the additional US$34,295. 20. There was a supervision mission of the Institutional Strengthening and Capacity Building for the Education Sector Project (US$2.7 million) from June 12-13, 2010 to provide feedback on the draft of the Situation Analysis of the education sector and to discuss the details of the forthcoming capacity building activities. Under Pillar II of the TA: (i) a training course on Strategic Choices for Educational Reform (SCER), will be delivered by the World Bank Institute (WBI) in Beirut from December 6-17, 2010. 21. The MOPDC has requested another extension of the Second Capacity Building Project (US$7 million) from December 31, 2010 to June 30, 2013. To date, the project has financed about 66 activities, reaching about 1,480 participants from various private and public sector entities and has proven to be a valuable and effective tool for capacity building in Iraq. Thus far in 2010 activities financed have included: (i) Access to Public Lands for Housing and Private Sector Development workshop; (ii) a workshop on Enhancing Economic Participation of Iraqi Women; (iii) a workshop for Kurdish Regional Government officials on Consultative Development; (iv) a capacity-building workshop and study tour for KRG Officials of the Shura Council and the Ministry of Justice; (v) a workshop for assessing the 2007 Poverty Reduction Strategy IHSES survey and developing an action-plan based on these evaluations; (v) a Public Procurement Beginners Workshop for World Bank-Financed Projects; (vi) an intensive two-day workshop on Enhancing Justice Service Delivery to the Poor, which included about 20 Iraqi officials and civil servants from the Higher Judicial Council and Ministry of Justice, among others; and (vii) a capacity building workshop in Monitoring and Evaluation. 22. Thus far the Household Survey and Policies for Poverty Reduction Project (US$12.1 million) has financed (i) the first nation-wide expenditure survey since 1988; (ii) the development of an official poverty line and analysis of the causes and consequences of poverty; and (iii) the development of an official Poverty Reduction Strategy. During the coming period, the project will finance (i) capacity building and technical assistance for implementation of the Poverty Reduction Strategy; (ii) capacity building and technical assistance for monitoring progress of the Poverty Reduction Strategy; and (iii) financial, capacity building and technical assistance for poverty measurement (including a second round of the survey). The project has provided 2,464 person days of training on design and implementation of survey, 992 person days of training on poverty analysis and 828 person days of training on strategy development. Additional financing of US$3 million was granted to this well- performing project in June 2010 in order to complete the scale-up activities described above. 23. With the suspension of Law 18 for the Disengagement of Social Affairs Directorates from MOLSA, the uncertainties facing the future of the Emergency Social Protection Project (US$8 million) have lifted. Because of the new law, all procurement activities had been put on hold as of February 2010. These activities have now resumed but an extension of the grant closing date beyond February 28, 2011 may be required. 5 24. Following the launch of the Pension Reform Implementation Support Technical Assistance (PRISTA) (US$5.8 million) in February 2010, a number of workshops have been held with Iraqi counterparts from the Ministry of Finance, the National Board of Pensions, the State Pensions Fund, and the Social Security Department, and the Central Bank of Iraq to kick off implementation of the different components of PRISTA. Significant progress has been made under Component 1, which includes producing a policy note on an agreed business model, organizational structure, and governance system for the State Pensions Fund. 25. The Emergency Disabilities Project (US$16.8 million), restructured in March 2009 to focus on six sites rather than 14, in line with Ministry of Health (MOH) capacity, closes at the end of December 2010. Construction is now completed at all six sites, and these sites have now been handed over to the MOH. However, although medical aids procured have been delivered to the Directorate level stores, distribution of these aids to the disabled is not yet completed. The contract for the rehabilitation center and workshop equipment has been signed and the required items delivered to the project sites. All originally planned training for rehabilitation physicians, physiotherapists and workshop technicians has been completed. 26. The total grant amount of the Regional Emergency Health Response Project is now US$13.2 million of which US$4.5 million is additional financing. This amount was approved in June 2010 to cover the cost of establishing an up-to-date emergency telecommunications system and expanding the technical training of emergency medical and paramedical staff to maximize efficiency and yield of the emergency medical system. 27. The successor (through a supplemental grant of US$25.5 million) to the closed Emergency Community Infrastructure Project is on track. Out of 16 civil works contracts, 13 are completed, and three are ongoing and are expected to be completed by summer 2011. The remaining three contracts are currently being prepared. All the goods required under the project have now been procured. The internal training component is on track with nine training courses having been provided thus far. Support from MOWR’s high level management has been sought to further strengthen the Project Management Team. 28. The Integrated National Energy Strategy Technical Assistance Project (US$5 million) has now finalized procurement of a strategy/energy consultant to assist with the development of the integrated energy strategy (INES), and the consultant recently submitted the Inception Report. Consultations with energy sector stakeholders will commence after completion of the INES. 29. The Emergency Electricity Reconstruction (US$6 million) finances support services for the IDA project of the same name and technical assistance for policy and institutional reform. However, progress has been slow and so far focus has been only on the support services, with little effective traction for TA for policy and institutional reform. Approximately US$2 million of this US$6 million component remains uncommitted. There is little scope for restructuring of this project since the IDA Credit is almost fully committed through a single lump-sum contract. The World Bank team has identified critical milestones against which future progress will be monitored. To avoid cancellation it will be critical for the project to meet these milestones. 30. Recent progress by the Emergency Environmental Management Project (US$5 million) includes preparation of TORs for evaluating the cost of environmental degradation and delivery of most of the necessary air quality equipment. The bidding document for the new air quality monitoring package (US$1 million) has been prepared. The project recently recruited a water quality specialist and an environmental awareness specialist. 6 ITF PROJECT PIPELINE 31. Additional Financing. The following projects have been approved to receive additional financing: (i) the Capacity Building II Project (US$2 million) to enable it to continue financing important capacity building activities important to realizing the Government of Iraq’s development priorities; and (ii) the Integrated National Energy Strategy Technical Assistance (US$1.9 million) to meet the higher than anticipated costs of the consultant to be recruited for preparation of the Integrated Energy Sector Strategy. Processing of the additional financing packages is currently underway. 32. The Second Emergency Assistance Program for Primary Health Care in the Southern Iraqi Marshlands (US$1.2 million) will build on the closed Emergency Assistance Program for Primary Health Care funded through the Post-conflict Fund. The follow-on project will scale up the project activities, including expanding them to Babil Governorate to the north, with a focus on vulnerable groups such as pregnant women and children as well as those suffering from the growing tuberculosis disease. It would seek to further strengthen the primary care network in the southern Marshlands and to extend this support to Babil Governorate as well. The primary care services would be supplemented by outreach activities responsive to the needs of the under-served. 33. The Rationalization of the Universal Public Distribution System Technical Assistance Project (US$3 million) responds to the Public Distribution System (PDS) High Committee ‘s request for ITF financing and technical assistance to support the GOI in the rationalization of the universal public distribution system. The requested TA project will seek to strengthen GOI technical and institutional capacity to implement the rationalization of the PDS. In the short and medium term, the project aims to support: (i) the implementation of the initial phases of the PDS reform, with special emphasis on targeting and good coordination with the Social Safety Net (SSN); (ii) the elaboration of the PDS public information campaign; (iii) and the design of robust monitoring and evaluation systems. The TA will also lay the foundations for the achievement of longer term objectives, including achieving convergence between the PDS and SSN, and, more broadly, ensuring that Iraqi safety net programs evolve towards being adequate, equitable, cost-effective, financially sustainable and dynamic. 7 Annex 1 Table 1: Donor Pledges, Commitments and Deposits to ITF October 31, 2010 Pledges in Donor Currency 1/ Commitments Donors Pledges 1/ 2/ Deposits Currency Currency (million) Australia AUD 22.0 16.1 16.1 16.1 Canada CAD 35.0 26.7 26.7 26.7 EC EUR 143.0 179.3 179.8 179.7 Finland EUR 2.0 2.6 2.6 2.6 Iceland USD 1.0 1.0 1.0 1.0 India USD 5.0 5.0 5.0 5.0 Japan USD 130.6 130.6 130.6 130.6 Korea USD 4.0 9.0 9.0 9.0 Kuwait USD 5.0 5.0 5.0 5.0 Netherlands EUR 5.0 6.2 6.2 6.2 Norway NOK 45.0 6.7 6.7 6.7 Qatar USD 5.0 5.0 5.0 2.5 Spain USD 20.0 20.0 20.0 20.0 Sweden SEK 40.0 5.8 5.8 5.8 Turkey USD 1.0 1.0 1.0 1.0 United Kingdo GBP 40.0 71.4 71.4 71.4 United States USD 5.0 5.0 5.0 5.0 Total 496.4 496.9 494.4 1/ Includes pledges made at the 2003 M adrid Conference, plus additional contributions provided later. 2/ Commitments made in currencies other than US$ are converted at the exchange rate as of the date of the administration agreement prior to their deposit into the fund, and are for indicative purposes only. 8 Table 2: S ources and Uses of Funds (US $ Million) October 31, 2010 Current Receipts/ S ources and Uses of Funds Program Expenditures S ources of Funds Donor Deposits 494.4 494.4 Investment Income 80.6 80.6 Total S ources of Funds 575.0 575.0 Uses of Funds Project Financing Completed Projects Capacity Building I 2.5 2.5 Textbook Provision 38.8 38.8 Community Infrastructure 19.0 19.0 M arshland Schools Sup p lemental Grant 5.2 5.2 Health Rehabilitation 23.8 23.8 Subtotal Completed Projects 89.4 89.4 Active Projects Capacity Building II 7.0 6.6 School Rehabilitation & Construction 60.0 41.4 Disabilities 16.8 15.5 Regional Health Emergency Response 13.2 7.3 Water Supp ly , Sanitation & Urban Reconstruction 110.0 68.7 Baghdad Water Sup ply 65.0 46.6 Community Infrastructure Supp lemental Grant 25.5 15.5 Private Sector Develop ment 65.0 57.2 Electricity Reconstruction 6.0 0.6 Household Survey & Policies for Poverty Reduction 7.0 5.4 Household Survey & Policies (Technical Assistance) 5.1 3.6 Social Protection 8.0 4.6 Environmental M anagement 5.0 2.5 Banking Sector Reform 10.0 0.6 Public Financial M anagement 16.0 0.1 Public Financial M anagement (Technical Assistance) 2.0 0.1 Education Sector (Technical Assistance) 2.7 0.1 Pension Reform (Technical Assistance) 5.8 0.6 Integrated Energy Strategy 5.0 0.8 Subtotal Active Projects 435.1 277.9 Total Project Financing 524.5 367.3 Cost Recovery 1/ Project Ap praisal and Supervision 35.8 24.7 Trust Fund M anagement and Administration 5.4 4.0 Total Cost Recovery 41.2 28.7 2/ Refund 1.3 1.3 Total Use of Funds 566.9 397.2 Available Resources 8.1 177.8 1/ Includes projected requirements for p roject ap praisal & sup ervision of the current portfolio, Fiduciary M onitoring Agent (FM A), trust fund management and administration fees over the life of the ITF (through December 31, 2013). 2/ Refund to the EC-RRM on June 28, 2009 for unused fund balances from the Cap acity Building I activity (a 6-month activity ) which was comp leted and closed in August 2004. 9 Table 3: Procurement and Disbursement Progress over Time US $ Million October 31, 2010 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Current Granted 355.0 355.0 374.5 374.5 398.6 424.6 424.6 458.5 468.5 490.8 490.0 499.4 Tendered 22.2 68.1 121.0 193.2 278.2 316.8 319.6 382.0 400.9 408.8 418.6 434.4 Committed 16.5 37.6 65.0 133.2 170.3 231.7 273.7 310.2 352.6 366.6 404.6 415.4 Disbursed 5.5 19.2 37.4 51.4 69.9 88.5 115.8 149.0 206.5 248.7 294.1 353.7 As % of Grant Amount Tendered 6% 19% 32% 52% 70% 75% 75% 83% 86% 83% 85% 87% Committed 5% 11% 17% 36% 43% 55% 64% 68% 75% 75% 83% 83% Disbursed 2% 5% 10% 14% 18% 21% 27% 32% 44% 51% 60% 71% Table 4: S tatus of Grant Commitments by Project (US $ Million) October 31, 2010 Amount Under Total Procurement Grant or Already Amount 1/ Recipient-Executed Project Amount Committed Committed 2/ Disbursements US $m US $m US $m US $m Textbook Provision (closed) 38.8 38.8 38.8 38.8 School Construction & Rehabilitation 60.0 51.6 51.2 41.4 Baghdad Water Supply & Sanitation 65.0 56.4 56.2 46.6 Health Rehabilitation (closed) 23.8 24.0 23.8 23.8 Private Sector Development 65.0 61.0 58.5 57.2 Water Supply, Sanitation, Urban Reconstr. 110.0 94.8 95.0 68.7 Community Infrastructure (closed) 19.0 19.0 19.0 19.0 Disabilities 16.8 16.7 16.7 15.5 Social Protection 8.0 5.9 5.2 4.6 Household Survey & Policies 7.0 5.5 5.5 5.4 Marshlands School Supp. Grant (closed) 5.2 5.2 5.2 5.2 Environmental Management 5.0 4.6 3.4 2.5 Electricity Reconstruction 6.0 3.2 3.2 0.6 Community Infrastructure Supplemental Grant 25.5 22.1 21.6 15.5 Regional Health Emergency Response 13.2 5.5 6.0 7.3 Banking Sector Reform 10.0 9.4 1.4 0.6 Public Finance Management 16.0 6.2 0.2 0.1 Integrated National Energy Strategy 5.0 4.5 4.5 0.8 Total 499.4 434.4 415.4 353.7 As % of Grant Amount 87% 83% 71% 1/ Value of grant for which procurement is underway (e.g. tenders or Requests for Proposals have been issued), as reported by the FMA. 2/ The value of signed contracts plus amounts already disbursed as operating costs, as reported by the FMA. 10 Annex 2 WORLD BANK IRAQ TRUST FUND QUARTERLY PROJECT SUMMARY SHEETS SEPTEMBER 2010 11 World Bank Iraq Trust Fund First Capacity Building Project (TF053196) September 2010 Project Summary Sheet Title First Capacity Building Project (Completed) Implementing World Bank Agency Location N/A – Institutional Support Sector code 15110 Economic and development policy / planning (OECD DAC) Compact 4.2.3.1 Adopt and implement policies, legislation, regulations, procedures and build Priority institutions of public service management Project Cost US$3.6 million Duration 6 months Approval Date January 2004 Effective Date February 2004 Closing Date August 2004 The project aimed to build the capacity of the Iraqi authorities to enable them to define, Project prioritize, and implement international programs of support, and to play a leading role in the Description reconstruction process. The project focused on the immediate need for Iraqi ministries to upgrade project planning and Beneficiaries management skills. More than 580 officials from various ministries and local institutions benefitted from the project. Near Term Employment N/A Creation Strategic Context and Donor Coordination The project aimed to build the capacity of the Iraqi authorities to enable them to participate in the definition, prioritization, and implementation of international support, and to play a lead role in the reconstruction process. The project was designed to respond to the immediate and most urgent training needs of the Iraqi public sector staff. The specific activities undertaken were agreed upon by the Ministry of Planning and Development Cooperation and the various ministries concerned, and focused on priority areas for Iraq’s development agenda and the preparation and implementation of the World Bank Iraq Trust Fund-financed projects. The European Commission’s Rapid Response Mechanism (EC-RRM) provided €3 million for a six-month implementation period, with no extension of the closing date. Project Development Objective • Assist Iraqi officials to design and implement projects and start developing sector strategies • Develop professional networks between Iraqi officials and counterparts in other ministries and neighboring countries Outputs, Key Activities and Procurement Outputs • Workshops and training for key staff from relevant agencies (581 staff from 19 ministries) • Training on managing the project cycle (procurement, financial management, project management, and safeguards) Activities • Sector-specific training for line ministries • Training for private sector capacity enhancement. Procurement N/A 12 Financial Data Funds Committed US$2.5 million % approved 69% Funds Disbursed US$2.5 million % approved 69% Closing Date Closed August 2004 Delay (months) Progress against Indicators Number of training 22 training activities conducted benefiting 581 workshops held and Iraqi % of planned N/A Iraqi officials from 19 ministries officials trained Qualitative Assessment of Project Performance Representatives from the Central Bank, the Mayoralty of Baghdad, the Board of Supreme Audit, universities, private banks, Chambers of Commerce and Business Associations participated in workshops and training in three areas: (i) Managing the project cycle, including procurement, financial management; (ii) Strategic and technical skills in education, health, and infrastructure sectors; and (iii) Enhance private sector capacity to support sustainable growth and job creations. The program enabled the Iraqi officials to design and implement projects and start developing sector strategies towards longer-term development. Iraqi officials develop professional networks with counterparts in other ministries and neighboring countries. Major Implementation Obstacles N/A – The project is completed and closed. 13 World Bank Iraq Trust Fund Second Capacity Building Project (TF054373/P088247) September 2010 Project Summary Sheet Title Second Capacity Building Project Implementing World Bank Agency Location N/A – Institutional Support Sector code 15110 Economic and development policy / planning (OECD DAC) Compact 4.2.3.1 Adopt and implement policies, legislation, regulations, procedures and build Priority institutions of public service management Project Cost US$7 million Duration 73 months Approval Date November 2004 Effective Date November 2004 Closing Date December 2010 The project aims to strengthen economic management and build institutional capacity to enable Project Iraq to shift to a diversified, market-driven economy; effectively use public resources, including Description Iraq’s own resources as well as international aid; and improve the efficiency, effectiveness, and quality of public services. The project directly benefits Iraqi officials, and helps introduce crucial institutional Beneficiaries strengthening and reform initiatives. Participants include staff of various ministries and local institutions as well as the private sector. Near Term Employment N/A Creation Strategic Context and Donor Coordination The Second Capacity Building Project (CB2) builds on the First Capacity Building Project, with a focus on helping Iraq build the institutional capacity to use public resources transparently and effectively. CB2 finances specific technical assistance and training activities designed to help the authorities tackle medium-term economic reforms. Many activities are carried out jointly with other donors, including the IMF, UN, and DFID. Project Development Objective • Strengthen economic management • Build institutional capacity to enable Iraq to shift to a diversified market-driven economy • Improve the efficiency and quality of public services Outputs, Key Activities and Procurement • Assist in client policy / program implementation Outputs • Develop / strengthen institutions • Facilitate knowledge exchange • Workshops conducted under 4 broad themes: Economic reform and transition Activities Poverty, social protection, and social development Public sector management Managing the project cycle Procurement N/A 14 Financial Data Funds Committed US$6.5 million % approved 93 Funds Disbursed US$6.5 million % approved 93 Forecast Closing Date December 2010 Delay (months) n/a Progress against Indicators Number of Policy Seminars (35 seminars conducted) n/a Number of Technical Workshops (29 workshops conducted) % of planned n/a Number of Study Tours (2 study tours conducted) n/a Qualitative Assessment of Project Performance The Second Capacity Building Project has financed about 66 activities, reaching about 1,480 participants from various private and public sector entities. Thus far in 2010 activities financed have included: (i) Access to Public Lands for Housing and Private Sector Development workshop; (ii) a workshop on Enhancing Economic Participation of Iraqi Women; (iii) a workshop for Kurdish Regional Government officials on Consultative Development; (iv) a capacity-building workshop and study tour for KRG Officials of the Shura Council and the Ministry of Justice; (v) a workshop for assessing the 2007 Poverty Reduction Strategy IHSES survey and developing an action-plan based on these evaluations; (v) a Public Procurement Beginners Workshop for World Bank-Financed Projects; (vi) an intensive two-day workshop on Enhancing Justice Service Delivery to the Poor, which included about 20 Iraqi officials and civil servants from the Higher Judicial Council and Ministry of Justice, among others; and (vii) a capacity building workshop in Monitoring and Evaluation. Major Implementation Obstacles While CB2 has financed some workshops in Baghdad and Erbil, it remains difficult to gather a large number of participants in one place in Iraq for extended, intensive work. Potential locations for each proposed activity are evaluated based on the timing, level of participation, length of workshop, and cost, in order to balance the competing priorities and ensure that the workshop meets its objective in a cost effective manner. 15 World Bank Iraq Trust Fund Textbook Provision Project (TF051095/P088945) September 2010 Project Summary Sheet Title Textbook Provision Project (Completed) Implementing Ministry of Education (MOE) Agency Location Nationwide (all 18 Governorates) Sector code 11120 Education facilities and training (OECD DAC) Compact 4.4.2.3.1 Achieve universal access to basic education Priority Project Cost US$40 million Duration 31 months Approval Date May 2004 Effective Date May 2004 Closing Date December 2006 Project The project aimed to provide urgently needed textbooks in order to keep schools open, and to Description improve learning conditions in primary and secondary schools. The project benefited all 6 million primary and secondary school pupils, who received 11 books Beneficiaries each on average. The project was designed to maximize local content and employment by contracting local Near Term printers to the maximum extent possible, taking into consideration the quantity of paper Employment available in Iraq. Contracts to Iraqi printers amounted to US$14 million; and an estimated Creation US$7.5 million was spent on local labor costs. Strategic Context and Donor Coordination The US and UN (UNESCO and UNICEF) undertook emergency efforts to provide textbooks for the 2003/2004 school year, typically contracting the printing and distribution of textbooks with primarily international firms. For the 2004/2005 school year, the MOE requested the World Bank to help it undertake the printing and distribution of textbooks. Since 2006, MOE has used its own resources to finance textbook provision. The project provided a platform for the World Bank to support the Ministry in developing a strategic framework and a donor coordination strategy for education in Iraq. Project Development Objective Provide textbooks to Iraqi school children on an urgent basis to ensure continued and improved education service delivery Outputs, Key Activities and Procurement Outputs • Textbook supplies to students and schools functioning • Textbook Provision Activities • Project Management Goods (Textbooks): US$37.3 million Other Goods: US$ 0.2 million Procurement Consulting Services: US$ 0.4 million Operating Costs: US$ 0.1 million Unallocated: US$ 2.0 million 16 Financial Data Funds Committed US$38.8 million % approved 97 Funds Disbursed US$38.8 million % approved 97 Closing Date December 2006 Delay (months) Progress against Indicators Percentage of textbooks 82 million textbooks were delivered, against a % of planned 119 delivered to schools target of 69 million textbooks Qualitative Assessment of Project Performance The project closed on December 31, 2006. Competitive bidding procedures led to cost savings of about US$9 million which were used to print and distribute an additional 13.5 million textbooks for the 2005/2006 school year, exceeding its main development objective. Major Implementation Obstacles N/A – The project is completed and closed. 17 World Bank Iraq Trust Fund School Construction and Rehabilitation Project (TF053545/P087907) September 2010 Project Summary Sheet Title School Construction and Rehabilitation Project Implementing Ministry of Education (MOE) Agency Location Nationwide (all 18 governorates) Sector code 11120 Educational facilities and training (OECD DAC) 4.4.1.1 Design and carry out specific policy reforms and investments towards achieving the Millennium Development Goals Compact 4.4.1.2.1 Undertake specific measures to promote continuous education for competitive skills Priority and equal opportunities in the labor market 4.4.1.3.1 Achieve universal access to basic education Project Cost US$60 million Duration 98 months Approval Date October 2004 Effective Date October 2004 Closing Date June 2012 Project The project will finance the rehabilitation of 133 schools, the construction of 48 new schools, Description and the extension of 20 existing schools. About 45,000 students will benefit from improved quality of learning in rehabilitated schools, Beneficiaries while 23,000 students will benefit from new schools, and 4,800 students will benefit from extension of existing school buildings. Near Term The project maximizes local content by using Iraqi firms for design, construction, and Employment construction supervision. The project expects to generate over 6,000 job opportunities, over half Creation of which are underway through ongoing reconstruction work. Strategic Context and Donor Coordination The MOE Situation Analysis, building on the UN/World Bank Joint Needs Assessment, identified almost US$700 million in urgent repair and reconstruction needs over three years. Over 12,000 schools (more than 80%) require repair, 2,300 require minor repair, 9,400 require major repair, and around 1,300 need to be demolished and rebuilt. A gap of more than 3,000 schools causes schools to hold double and triple shifts. The World Bank, the UN, and the US are the main donors supporting education, and continue to coordinate their efforts. The US focused initially on minor rehabilitation; the UN supports both minor and major rehabilitation. The World Bank is the only donor working through Iraq’s MOE and the only donor financing major new school construction in a significant manner. Project Development Objective • The objective of the project is to improve the conditions of learning of students in primary and secondary schools in Iraq through the construction of new schools, the extension of existing schools, and the rehabilitation of schools in need of urgent repairs. Outputs, Key Activities and Procurement • 133 schools rehabilitated (reduced from 140 originally) Outputs • 48 new schools constructed (reduced from 117 originally) • 20 extensions of existing school buildings (6-classroom blocks) Activities • Various design, construction and supervision activities related to outputs Civil Works: US$53.0 million Procurement Goods: US$ 0.2 million 18 Consulting Services: US$ 4.8 million (95 % local consultants) Training: US$ 0.5 million Operating Costs: US$ 1.5 million Financial Data Funds Committed US$51.3 million % approved 85 Funds Disbursed US$41.0 million % approved 68 Forecast Closing Date June 2012 Delay (months) 7 Progress against Indicators The school rehabilitation subcomponent has been completed. The PMT was requested to carry out an 133 schools rehabilitated assessment of all 133 schools to review their status 100 and outcomes, including enrollment, to be reported to the World Bank. % of planned 32 schools have been completed, and 16 are currently under construction. 48 new schools 66 constructed 48 new schools are planned to be built by the closing date of June 2012. 20 6-classroom blocks Bidding documents are being prepared extensions constructed Qualitative Assessment of Project Performance Major rehabilitation of 133 schools is complete, at an average cost of US$181 per student, benefiting 45,000 pupils and creating 3,000 construction jobs. The number of new schools to be financed under the project was reduced from 117 to 48 because of price escalation, the appreciation of the Iraqi Dinar, unavailability of land, and security constraints. 32 schools have been constructed and, 16 schools are currently under construction. Only 48 schools will be built because six schools (in Anbar, Diyala and Karbala Governorates) encountered problems with land availability and security. Due to the drastic reduction in the number of schools to be built under the project, the project has been restructured to: (i) update project targets (schools rehabilitated and new school construction); (ii) use the uncommitted amount of US$8.8 million to finance the construction of additional six-classroom blocks in 20 selected schools in the Baghdad area; (iii) re-allocate funds within disbursement categories to align with actual project costs and to take account of the additional construction activities; and (iv) extend the closing date to June 30, 2012 to allow sufficient time to complete all project activities. Major Implementation Obstacles Institutional capacity issues have delayed project decision-making and implementation. Several ITF-financed projects, including this project, suffered from IQD payment delays due to uncertainties relating to the World Bank's previous Iraqi banking partner. The World Bank addressed the situation by temporarily channeling payments through the Central Bank of Iraq. New banking arrangements are being finalized involving local banks. In addition, all Iraq projects can now opt to have designated accounts. Finally, the PMT’s oversight and internal controls have revealed deficiencies resulting in quality concerns, mistakes and the payment of ineligible expenditures. The MOE needs to continue to take action to remedy these issues. 19 World Bank Iraq Trust Fund School Construction Supplement for Marshland Schools (TF057366/P100726) September 2010 Project Summary Sheet Title School Construction Supplement for Marshland Schools Implementing Ministry of Education (MOE) Agency Location Al Basra, Thi Qar, Missan Sector code 11120 Education facilities and training (OECD DAC) 15150 Strengthening civil society 4.4.1.1 Design and carry out specific policy reforms and investments towards achieving the Millennium Development Goals Compact 4.4.1.2.1 Undertake specific measures to promote continuous education for competitive skills Priority and equal opportunities in the labor market 4.4.1.3.1 Achieve universal access to basic education 4.2.1.1 Adopt and carry out policies to stimulate civil society engagement in reforms Project Cost US$6.0 million Duration 32 months Approval Date October 2006 Effective Date October 2006 Closing Date June 2009 Project The grant provides additional funding for the Emergency School Construction and Description Rehabilitation Project to construct approximately 33 new schools in the Marshland areas. The construction of approximately 33 small schools will benefit 6,000 - 8,000 children and help Beneficiaries stabilize the resettlement of about 30 communities in existing villages. Near Term Employment The project will create over 90,000 man-days of construction work. Creation Strategic Context and Donor Coordination The supplemental financing for Marshlands Schools emphasizes local stakeholder involvement, using NGOs to mobilize and train local school/community committees to undertake small site improvement works in each school site. The project is implemented by the three governorates concerned, under the overall guidance of the Project Management Team in Baghdad. The World Bank, the UN, and the US are the main donors supporting education and are coordinating their efforts. The Marshlands areas are particularly deprived in terms of basic educational facilities. Project Development Objective • Improve educational environment for improved quality of education • Increase local stakeholder participation Outputs, Key Activities and Procurement • 33 schools constructed Outputs • Stakeholder groups created • School construction Activities • Capacity building for local stakeholders Civil Works: US$5.2 million Small Works and Incidental Services: US$0.2 million Procurement Consulting Services: US$0.5 million Training: US$0.1 million Operating Costs: US$0.08 million 20 Financial Data Funds Committed US$5.2 million % approved 86 Funds Disbursed US$5.2 million % approved 86 Forecast Closing Date June 2009 Delay (months) Progress against Indicators Number of new schools 30 out of 33 6-classroom schools were built; 3 90 constructed schools were cancelled due to lack of funding. Local stakeholder % of planned participation (number of NGOs played a role in solving the property dispute, 100 site improvement and committees have been created. committees created) Qualitative Assessment of Project Performance Project implementation was completed on schedule, and 30 schools were built out of the planned 33. Thirty committees were constituted at the local community level, and were involved in site improvement works done by local NGOs. The 30 schools will host about 7,000 primary school students. A beneficiary survey was carried out in December 2009. At the time of the survey, 27out of 30 schools were in operation. Three remaining schools (two in Basra, and one in Missan) are expected to be in operation this year. About 3,500 students were enrolled of which 1,300 are girls. Major Implementation Obstacles The project is completed and closed. 21 World Bank Iraq Trust Fund Health Rehabilitation Project (TF054404/P091305) September 2010 Project Summary Sheet Title Health Rehabilitation Project Implementing Ministry of Health (MOH) Agency Hospital Emergency Units: Baghdad/Risafu, Amara/Maysan, Salaheddin, Karbala, Kirkuk, Location Baghdad, Erbil, Baghdad/Karkh, Suleimaniyah Drug Warehouse: Baghdad 12110 Health policy and administrative management Sector code 12220 Basic health care (OECD DAC) 12230 Basic health infrastructure 12281 Health personnel development 4.4.1.1 Design and carry out specific policy reforms and investments towards achieving the Compact Millennium Development Goals Priority 4.4.1.4.2 Improve administration and emergency management in the health care system Project Cost US$25 million Duration 62 months Approval Date November 2004 Effective Date December 2004 Closing Date February 2010 Project The project aims to improve access to quality emergency services in selected health facilities in Description order to serve the urgent needs of the Iraqi population. About 13 million Iraqis live within the areas serviced by the emergency health units to be Beneficiaries rehabilitated. From this population, an estimated 100,000 people will use the emergency health services per year. Near Term While creating immediate employment is not a direct project objective, the project will create an Employment estimated 1,000 short-term jobs through civil works undertaken by local construction Creation companies. Strategic Context and Donor Coordination The estimated reconstruction needs of the health sector range from US$3 to US$4.6 billion. The US and Japan are the largest donors to the health sector, focusing on major construction and reconstruction of hospitals and health centers. Donor coordination at the policy level is carried out by WHO. Project Development Objective • Emergency medical care is available at key health facilities • Increased capacity to manage and plan health administration at the central and governorate level Outputs, Key Activities and Procurement • 9 emergency units rehabilitated Outputs • 3-6 month supply of 37 key emergency drugs • Improved planning and management of health administrations • Construction works Activities • Procurement of drugs • Technical assistance Civil Works: US$13.3 million Goods: US$ 8.6 million Procurement Consulting Services: US$ 1.8 million Training: US$ 0.9 million Operating Costs: US$ 0.4 million 22 Financial Data Funds Committed US23.8 million % approved 95 Funds Disbursed US$23.8 million % approved 95 Forecast Closing Date February 2010 Delay (months) Progress against Indicators 9 emergency units All 9 emergency units have been rehabilitated and rehabilitated and are receiving patients. A drug warehouse has been 100 providing quality rehabilitated and provides temporary storage for emergency services equipment, materials and pharmaceuticals. All medical equipment has been delivered to the 12 hospitals with new project sites and installed, and staff have been emergency equipment in trained. Savings of US$1 million have been used to 100 use procure additional needed medical equipment for 27 hospitals throughout the country. Basic emergency % of planned All pharmaceutical drugs have been delivered to the pharmaceutical packages 100 12 emergency units. procured and distributed. Staff trained in emergency medical Training for 48 doctors and 60 nurses on acute 100 services applying new trauma care is complete. skills Training on EMS management and ER 22 MOH doctors trained in emergency preparedness 100 planning and management. management Qualitative Assessment of Project Performance The project closed on February 28, 2010 and an assessment of the impact of the project is ongoing to be finalized by November 2010. Total amount disbursed to date is about US$23.8 million. Civil work activities at all nine planned hospital emergency units have been completed and are fully operational. However, there is still a significant balance to be paid to the contractor for work completed before the closing date. The MOH PMT has informed the World Bank that payments against several contractor invoices are in progress. Civil works also included construction of a warehouse in Baghdad to provide temporary storage for equipment, materials and pharmaceuticals. Pharmaceuticals, with a value of US$1.7 million, have been procured. All equipment and furniture have been delivered to the project sites. Savings realized towards the end of the project are financing additional needed medical equipment to 27 hospitals throughout the country. All training under the project has been completed. Training of emergency medical staff was satisfactorily delivered and most of the trained staff are assigned to the completed facilities. The US$1.2 million undisbursed funds will be cancelled from the project. Major Implementation Obstacles The project is completed and closed. 23 World Bank Iraq Trust Fund Disabilities Project (TF054052/P096774) September 2010 Project Summary Sheet Title Disabilities Project Implementing Ministry of Health (MOH) Agency Amara, Basra, Samawa, Karbala, Dewaniyah, Kut Location Sector code 12191 Medical services (OECD DAC) 15150 Strengthening civil society 4.4.1.1 Design and carry out specific policies including reforms and investments towards Compact achieving the Millennium Development Goals Priority 4.2.1.1 Adopt and carry out policies to stimulate civil society engagement in reforms Project Cost US$16.8 million (reduced from US$19.5 million) Duration 61 months Approval Date November 2005 Effective Date November 2005 Closing Date December 2010 The project aims to improve access of the disabled population to rehabilitation and prosthetic Project services, in the targeted areas. Specifically, the project supports: (i) upgrading the infrastructure Description and equipment of selected rehabilitation and prosthetic centers throughout Iraq; and (ii) specialized training to improve the rehabilitation services. The project will provide (i) access to 500 disabled clients per month per facility; and (ii) medical Beneficiaries aids to 39,500 disabled clients. Near Term Although creating immediate employment is not a project objective, the project will generate Employment short-term jobs through civil works undertaken by local construction companies. Creation Strategic Context and Donor Coordination Iraq has a growing population of disabled people, yet social and rehabilitation services for this group have declined. Given the country’s high unemployment rates and poor community services, becoming disabled poses a serious risk of an entire family falling into poverty. Improving services to the disabled is a government priority that requires increased attention of the government and the donor community. Project Development Objective Improve access of the disabled population in the targeted areas in Iraq to rehabilitation and prosthetic services Outputs, Key Activities and Procurement • Construct and equip 6 new rehabilitation centers (4 rehabilitation centers and 2 rehabilitation plus workshops) Outputs • Deliver specialized training to increase capacity of MOH and partners to provide services to the disabled • Rehabilitation works to ensure delivery of services to the disabled • Supply of prosthetics Activities • Training of rehabilitation center managers, physiotherapists, physicians, and prosthesis and orthosis technicians. 24 Civil Works: US$ 6.1 million Goods: US$ 7.9 million Procurement Consulting Services: US$ 0.7 million Training: US$ 1.8 million Operating Costs: US$ 0.3 million Financial Data Funds Committed US$16.7 million % approved 99 Funds Disbursed US$15.5 million % approved 92 Forecast Closing Date December 2010 Delay (months) 6 Progress against indicators Number of disabled who All 6 project site facilities are now operational. 230 have used the newly patients a day, on average, are being served by the 65 constructed and project facilities. equipped facilities Number of disabled who have received medical 25,000 74 aids through the project Number of new basic rehabilitation centers Civil works completed 100 constructed Number of new prosthetic workshops Civil works completed 100 constructed Number of staff trained 66 physiotherapists and 16 physicians have been in the area of physical 100 trained rehabilitation % of planned Number of staff trained in the area of production 35 staff have been trained 100 and fitting of prostheses and orthoses Number of facility managers trained in the 15 facility managers have been trained 100 area of facility management Number of medical aids (wheelchairs, crutches, walking sticks, walking 38,000 items procured 100 frames, walking rollators, tripods) procured Number of quarterly progress monitoring 17 reports completed 95 reports Qualitative Assessment of Project Performance The project was restructured and scaled back in March 2009 from 14 sites to six sites for security reasons and changed MOH priorities. Construction is now completed at all six sites, and these sites have now been handed over to the MOH. The medical aids have been delivered to the Directorate level stores; however, distribution of these aids to the disabled is not completed. The contract for the rehabilitation center and workshop equipment has been signed and the items have been delivered to the project sites. An assessment will be carried out to determine if all 25 the items have been distributed to the end users. All originally planned training for rehabilitation physicians, physiotherapists and workshop technicians has been completed, and additional training is being carried out under the restructured project. The project was restructured again in June 2010 to (i) extend the project closing date from June 30, 2010 to December 31, 2010, thus providing the opportunity for the MOH to apply uncommitted funds in the amount of US$520,000 to procure an additional 138 electric wheelchairs in high demand and urgently needed for individuals with disabilities, as well as to give sufficient time for detailed data collection and analysis of project outputs and outcomes; and (ii) to reallocate funding to adjust the disbursement categories to the actual costs and expected final expenditures. Major Implementation Obstacles Overall implementation of the project has been moderately satisfactory since the project was restructured. However, the project could still benefit from increased monitoring and evaluation by the MOH/PMT to effectively track the results of the project. The prosthetic workshops in Kut and Dewaniyah are functioning with limited capacity at present due to a shortage of raw materials for the prostheses. There is a lag in the supply of these materials because the contracts need to go through complex procedures of KIMADIA, the procurement agency of the MOH. 26 World Bank Iraq Trust Fund Regional Emergency Health Response Project (TF092237/P107698) September 2010 Project Summary Sheet Title Regional Emergency Health Response Project Implementing Ministry of Health of Kurdistan Regional Government of the Republic of Iraq (KRG MOH) Agency Location Erbil, Sulaymaniyah and Dahuk 12110 Health policy and administrative management 12181 Medical education and training Sector code 12191 Medical services (OECD DAC) 12220 Basic health care 12230 Basic health infrastructure 12281 Health personnel development 4.4.1.1 Design and carry out specific policy reforms and investments towards achieving the Compact Millennium Development Goals Priority 4.4.1.4.2 Improve administration and emergency management in the health care system Project Cost US$13.2 million Duration 40 months Approval Date June 2008 Effective Date July 2008 Closing Date December 2011 The project aims to assist the KRG to establish rapid, coordinated and effective response Project services to health emergencies. The project will: (i) establish and equip 3 Emergency Description Coordination Centers; (ii) train approximately 290 medical and paramedical staff in pre-hospital emergency services; and (iii) construct or rehabilitate 3 blood banks. Population of the three governorates, including internally displaced people totals around 5 Beneficiaries million Near Term While generating local employment is not a direct objective of the project, the project will utilize Employment local contractors. Creation Strategic Context and Donor Coordination The World Bank has considerable experience in the health sector in Iraq, with: (i) two ITF-financed projects implemented by the central Ministry of Health in Baghdad; and (ii) two Post-Conflict Fund projects implemented at the sub-national level. This project, with a regional implementation approach, targets interventions in a decentralized context. A number of UN agencies are currently active in the health sector in the Kurdish Region, including UNOPS, UNFPA, WHO, and UNICEF. In addition, the US, Korea and Japan provide bilateral support to the health sector in the form of reconstruction and/or rehabilitation of several hospitals and primary care centers. Project Development Objective The project aims to assist the KRG to build its capacity to respond to health emergencies in a rapid, coordinated and effective manner. Outputs, Key Activities and Procurement • Establish 3 Emergency Coordination Centers (ECCs) • Establish an emergency communication system Outputs • Provide 12 ambulances • Train of technical staff (emergency physicians, nurses, paramedics, ambulance drivers) • Construction/rehabilitate of 3 blood banks Activities • Construction, rehabilitation, training of technical staff, procurement of goods and 27 equipment. Civil Works: US$1.3 million Goods: US$7.5 million Consulting Services: US$0.4 million Procurement Training: US$0.7 million Project Management : US$2.5 million Unallocated: US$0.8 million Financial Data Funds Committed US$5.5 million % approved 41 Funds Disbursed US$7.3 million % approved 55 Forecast Closing Date December 2011 Delay (months) Progress against Indicators Civil works contracts signed for 3 Emergency Three functional Emergency Coordination Centers, and work underway in all 50 Coordination Centers of them. Technical staff trained in Initial training plan has been discussed, and an % of planned pre-hospital emergency International NGO has been selected and 15 services contracted to carry out the training activities. Three blood banks Civil works contracts for Blood Banks signed constructed or rehabilitated 50 and work already underway at all three sites. and equipped Qualitative Assessment of Project Performance All contracts for the three Emergency Communications Centers (ECCs) and the three Blood Banks have been signed, and construction is underway in all sites. 12 ambulances have been procured. The consultancy contract to plan and carry out the emergency response training program for medical and paramedical staff has been signed. The contract for the procurement of consultants to design and implement the emergency telecommunications system has been signed. All bids for the laboratory equipment for the three Blood Banks have been rejected as bid prices were substantially higher than the existing budget. Rebidding has been completed and the contract has been signed with the lowest evaluated bidder. Major Implementation Obstacles The main challenges include: (i) improving collaboration between KRG MOH and UNOPS (implementing agency for the KRG MOH) in project oversight and management; (ii) keeping the activities on schedule according to the detailed implementation plan; and (iii) preparing the requisite bidding documents and other procurement documents in a timely fashion and according to the implementation schedule. 28 World Bank Iraq Trust Fund Water Supply, Sanitation and Urban Reconstruction Project (TF054455/P087910) September 2010 Project Summary Sheet Title Water Supply, Sanitation and Urban Reconstruction Project Implementing Ministry of Municipalities and Public Works (MMPW) Agency Water Supply / Sanitation • Arbil, Majar, Kena’an, Beiji Al-Hussainia, Al Muthanna Location Urban Reconstruction • Arbil, Karbala Sector code 14020 Water supply and sanitation (large systems) (OECD DAC) 43030 Urban development and management Compact 4.4.1.5.2 Undertake specific measures to ensure universal access to services (water / sanitation) Priority Project Cost US$110 million Duration 84 months Approval Date December 2004 Effective Date December 2004 Closing Date December 2011 The project aims to upgrade and rehabilitate basic water supply and sanitation services in 7 Project cities, and conduct urban reconstruction in the poorest areas of 2 cities, choosing subprojects Description that will have high impact. The project will strengthen Iraq's capacity to manage large-scale reconstruction projects. The rehabilitation financed under the project will bring significant health and welfare benefits to approximately 1 million people in five municipalities. The resulting improvement in water Beneficiaries supply and sanitation services will also help reduce the incidence of waterborne diseases, which are a major contributor to infant and child mortality. Near Term The project will create vitally-needed short-term employment; civil works will be conducted by Employment local firms, creating an estimated 3,000 short-term construction sector jobs. Creation Strategic Context and Donor Coordination The Joint UN-World Bank Needs Assessment estimated total needs for rehabilitation and reconstruction of water supply and sanitation facilities to be about US$6.8 billion. The World Bank worked closely with the MMPW to identify project components, which were coordinated with the work of the US, DFID (in the south), and UN agencies (in the north). World Bank-administered financing is implemented by the MMPW to help ensure Iraqi ownership and build Iraqi institutional capacity. The World Bank’s interventions are carefully designed for sustainability (e.g. new water treatment units are accompanied when necessary by distribution network rehabilitation). The World Bank meets regularly with other major donors, and collaborates closely with the Japan Bank for International Cooperation, including launching joint missions, to identify joint and complementary financing opportunities for future projects. Project Development Objective Restore basic water supply, sanitation and urban services for urban areas outside Baghdad through: • the reconstruction and rehabilitation of existing facilities; and • support to capacity building through training and technical assistance 29 Outputs, Key Activities and Procurement • Priority water networks and treatment facilities rehabilitated • Urban infrastructure rehabilitated Outputs • Increased capacity of MMPW to manage rehabilitation works • 20 million cubic meters (MCM) per year of additional water made available to approximately 1 million people. • Rehabilitation and upgrade of sewerage systems in Saif Saad area of the City of Karbala • Rehabilitation and upgrade of water supply systems in Majar, Beiji, Kena’an, Al Samawa, Activities Al-Hussainia, and Badawa. • Urban rehabilitation works in Badawa • Capacity building activities Civil Works: US$ 97.1 million Goods: US$ 0.2 million Procurement Consulting Services: US$ 8.7 million Operating Costs: US$ 1.5 million Unallocated: US$ 2.5 million Financial Data Funds Committed US$95.0 million % approved 86 Funds Disbursed US$68.3 million % approved 62 Forecast Closing Date December 2011 Delay (months) Progress against Indicators Increase in the quantity of water produced in the project cities Component under implementation (ex-post N/A (million cubic meter of treated assessment) water per day) Improvement in the % of water % of planned samples meeting the WHO Component under implementation (ex-post biological and chemical N/A assessment) standards in the areas affected by the project Rehabilitation and upgrade of In progress, most of the sewers pipes laid, sewerage systems in Saif Saad pumps are expected to be delivered to the 65 area of the City of Karbala site by July 2010 Rehabilitation and upgrade of Completed and providing 25,000 people 100 water supply systems in Majar with clean water Rehabilitation and upgrade of Bidding process 10 water supply systems in Beiji Rehabilitation and upgrade of water supply systems in Bidding process 10 Kena’an Rehabilitation and upgrade of Completed and providing more than water supply systems in Al 100 250,000 people with clean water Samawa Rehabilitation and upgrade of Package I stands at 10%, and Package III water supply systems in Al- 35 completed Hussainia 30 90% of the concrete and asphalt roads are Rehabilitation and upgrade of nearly completed. Water supply systems water supply systems and completed. The ground and elevated 80 Urban rehabilitation works in reservoirs are near completion. The water Badawa supply system is currently supplied from groundwater wells in the area. Training for more than 70 MMPW staff on procurement, financial management, Time for procurement of works environmental and safeguard in addition to 70 and services reduced training on Administration and Contract management is complete. Qualitative Assessment of Project Performance Progress of implementation is slow and continues to experience delays for different reasons, such as the March 7 parliamentary elections, religious holidays, security issues, weather, etc. The rehabilitation and upgrading of Karbala Water Supply and Sewerage System is about 60% complete (Component 1). The upgrading of water supply in Beiji (Component 3) has started while the tender documents for the rehabilitation and upgrading of the Kena’an Water Supply Systems are being completed by the PMT (Component 4). The upgrading of the Al Hussainia Water Supply System, Package 1 is in progress, and Package III was completed in June 2010 and is operational. Package II is being implemented using GOI funds (Component 6). Remaining works under the urban rehabilitation and upgrading of the Badawa Water Supply System, including water systems and storm water, roads and concrete pavements, were completed in September 2010. Only the elevated tank is 80% complete (Component 7). Major Implementation Obstacles While security remains an issue, the lack of institutional capacity has had a greater impact on project implementation and progress. The pace of implementation has improved as many of the long-standing obstacles have been resolved. Progress was less than planned. The lack of continuous and close follow-up by the PMT Director and core staff and low capacity for decision making led to delays in implementation of the ongoing contracts. This was clearly observed during the September 2010 mission. Frequent missions are important to help solve problems and provide needed advice. The World Bank team continues to provide all support possible through training workshops. In order to build technical and managerial capacity of the PMT and Ministry staff, each supervision mission includes targeted training workshops in order to enhance PMT capacity. 31 World Bank Iraq Trust Fund Baghdad Water Supply and Sanitation Project (TF054435/P087912) September 2010 Project Summary Sheet Title Baghdad Water Supply and Sanitation Project Implementing Mayoralty of Baghdad (MOB) Agency Location Baghdad Sector code 14020 Water supply and sanitation (large systems) (OECD DAC) Compact 4.4.1.5.2 Undertake specific measures to ensure universal access to services (water / sanitation, Priority housing) Project Cost US$65 million Duration 84 months Approval Date December 2004 Effective Date December 2004 Closing Date December 2011 The project aims to help restore basic water supply and sanitation services for Baghdad through the reconstruction and rehabilitation of existing water supply and sewerage collection facilities. Project The project will rehabilitate water pumping stations and water treatment plants, and replace the Description water supply network in Al Zafaraniyeh district and the sewer system in Sadr City. The project includes the preparation of Phase I for a Comprehensive City Development Plan. The project will help build Iraq’s capacity to manage large-scale reconstruction programs. The project is expected to improve the quality of life of about one million residents of Baghdad Beneficiaries by improving the supply of potable water, eliminating sewerage backup in streets and homes, and contribute to reduction of the incidence of waterborne diseases. Near Term The project will also create vitally-needed short-term employment; civil works will be Employment conducted by local firms creating an estimated 2,000 short-term construction sector jobs. Creation Strategic Context and Donor Coordination The project was designed to complement US-funded water supply and sanitation rehabilitation. The project supports network rehabilitation linked to the US-financed rehabilitation of the Baghdad sewerage treatment plant. The World Bank meets regularly with major donors and collaborates closely with the Japan Bank for International Cooperation, including holding joint missions. Project Development Objective Assist MOB to restore basic water supply and sanitation services to the capital city of Baghdad Outputs, Key Activities and Procurement • Priority networks and treatment facilities restored Outputs • Increased local capacity to manage rehabilitation of sector • Rehabilitation of raw and clean water pumping stations and chlorine/chemical units • Replacement of sewer pipes in Sadr City • Rehabilitation of drinking water pipes in Zafaraniyeh Activities • Capacity building activities including system design, conducting feasibility studies, and audits • Development of a Comprehensive City Development Plan for Baghdad Phase I 32 Civil Works: US$42.85 million Goods: US$12.85 million Procurement Consulting Services: US$ 4.0 million Operating Costs: US$ 0.85 million Unallocated: US$ 4.45 million Financial Data Funds Committed US$55.9 million % approved 86 Funds Disbursed US$46.5 million % approved 72 Forecast Closing Date December 2011 Delay (months) Progress against Indicators Increase in the quantity of water produced under the Component under implementation (ex-post project (500,000 cubic meter assessment) of treated water per day). Improvement in the % of water samples meeting the Component under implementation (ex-post WHO biological and chemical assessment) standards in the areas affected by the project Quantity of sewage collected Component under implementation (ex-post and transported to treatment assessment) plant (m3/day). Chlorine and chemical process units at Al-Karkh WTP Rebidding rehabilitated 2B Pumping station Completed and operational 100 rehabilitated Abu Nuwas raw water Completed and operational 100 pumping station rehabilitated 45 km of old water network All works for 45 km of water pipes in renewed and expanded in completed and the water system is 100 Zafaraania district operational 100 km of sewers laid and Replacement of 85 km of sewer and about 8,000 new house connections 9,000 house connections are complete and 100 rehabilitated in 6 identified connected to the main system in five sectors. sectors in Sadr City Training for more than 60 MOB staff on procurement, financial management, Time for procurement of environmental and safeguard in addition to 90 works and services reduced training on Administration and Contract management is complete. Qualitative Assessment of Project Performance All works contracts in Al Zafaraniyeh Water Supply and Sadr City sewer systems have been completed except for one contract in Sector 48-Sadr City. 33 Major Implementation Obstacles The World Bank team continues to provide all support possible through training workshops. In order to build technical and managerial capacity of the PMT and MOB staff, each supervision mission includes targeted training workshops in order to enhance PMT capacity. The World Bank team will continue to provide the required training as part of upcoming missions. 34 World Bank Iraq Trust Fund Social Protection Project (TF056808/P099295) September 2010 Project Summary Sheet Title Social Protection Project Implementing Ministry of Labor and Social Affairs (MOLSA) Agency Ministry of Finance (MOF) Location N/A – Institutional Support Sector code 16010 Social / Welfare Services (OECD DAC) Compact 4.4.2.1 Undertake specific measures to strengthen the targeted safety net Priority 4.4.2.2 Design and implement a reform strategy for the pension system Project Cost US$8 million Duration 56 months Approval Date June 2006 Effective Date June 2006 Closing Date February 2011 The project aims to strengthen the policy, management, and administrative capacity in MOLSA and MOF to develop, manage, and monitor pension and social safety net reforms. This project will: (i) establish a basic information system within MOLSA to record and process information on safety nets, to provide a foundation for policy design; (ii) consolidate and expand the Project information base for the social safety net (SSN) program to develop effective targeting Description strategies; (iii) design and implement monitoring and evaluation systems for the expanded social safety net program; (iv) develop an updated digitized database on beneficiaries, contributors and employers in the pension system; (v) build technical capacity within MOLSA and MOF for policy analysis and design in the area of safety net and pensions; and (vi) develop a draft pension reform strategy. The beneficiary agencies are MOLSA, MOF, and the State Pension System (SPS). Ultimate beneficiaries include needy households (those receiving services through MOLSA, either as Beneficiaries cash transfer or other social services), as well as state employees and pensioners. MOLSA currently provides benefits to over 1 million households. Near Term While creating local employment is not a project objective, the project will indirectly support Employment services to the unemployed, through training and job placement, at the level of MOLSA’s social Creation welfare offices. Strategic Context and Donor Coordination The MOLSA requested World Bank support in social safety net and pension reform to help Iraq provide vulnerable populations with the support they need to sustain themselves. The project complements the Household Survey and Policies for Poverty Reduction Project. The main donor partner, USAID, has provided policy advice on pensions and safety net systems, and supported the design of the revised Social Safety Net Program. While USAID supports MOLSA in developing a pilot Social Safety Net Information System and its national roll-out, the ITF Social Protection Project finances the infrastructure required for the pilot and for scaling up the information system nationwide. USAID/BearingPoint participated in the World Bank’s appraisal mission, project launch workshop, and subsequent supervision missions. USAID/Bearing Point stopped their support to Social Safety Net and Pensions in May 2009. However, USAID continues to be involved through its financing of the Tawteer program, which provides capacity building to Iraqi institutions and complements the training program that can be financed from the ITF Social Protection Project. Tawteer representatives participate in project supervision missions to ensure continued collaboration and complementarity. 35 Project Development Objective • Improve the targeting and effectiveness of social safety • Improve the management of the pensions system Outputs, Key Activities and Procurement • Management Information System Outputs • Targeting strategies and monitoring and evaluation systems • Pensions database and reform strategy • Develop and establish a management information system for Social Safety Nets • Design safety net targeting and monitoring procedures Activities • Create a pensions database • Provide capacity building activities Goods: US$5.7 million Consultant’s Services: US$1.0 million Procurement Training: US$0.45 million Operating Costs: US$0.85 million Financial Data Funds Committed US$5.1 million % approved 64 Funds Disbursed US$4.6 million % approved 58 Forecast Closing Date February 2011 Delay (months) 2 Progress against Indicators MIS in place, • SSN system under development with the MIS operational and funded by USAID. providing useful data for MOLSA. Policy-makers • Pilot (phase I) conducted in Baghdad; National roll-out (phase II) under preparation. 80 in the areas of Baghdad, Erbil, Basra and Najaf • IT training provided to 21 staff at MOLSA. use newly generate • Workshops for senior staff held in Amman and system reports Istanbul. • Categorical targeting undertaken by MOLSA reaching 1.25 million households, disbursing close to IQD1.6 trillion. Targeting strategies % of planned introduced by MOLSA • Discussion underway for improved targeting 100 (proxy-means testing) with additional TA planned as part of future World Bank support to GOI. • Survey instrument finalized, baseline survey Effective M&E system completed, and data entry and tabulation is 70 operational underway. Preparation for process study is underway. Pension’s database completed. Policy- • Survey and database completed, MOF/NBP 80 makers use newly staff trained in India. Data entry to start soon. generated system reports 36 Pensions related • Training provided to 21 State Pension Fund activities funded by staff (MOF). project completed with • Equipment contracted and supplied. 85 evaluations where • Workshops on pension reform implementation appropriate held in August 2006 and January 2008. Qualitative Assessment of Project Performance While good progress has also been made in procuring equipment for the SSN sites, there continues to be a delay in having these sites ready. The National SSN Information System was formally launched in May 2009, and the Beneficiary Assessment baseline survey has been completed. Progress has also been made in the implementation of the Pension Survey. The Pension Reform Implementation Support Technical Assistance (PRISTA) was approved by the World Bank in December 2009 and became effective in January 2010, and implementation is well underway. The Project Management Office (PMO) will need to dedicate sufficient human resources to complete project implementation and meet the development objectives in the remaining time period. The PMO, working closely with the SSN Department, finalized the SSN Site Readiness Implementation Plan, and the World Bank team will closely monitor implementation of the plan. The deployment of the SSN information system financed by USAID started in August 2010, and the national roll-out will continue through October 2010 and will be implemented by the project. Major Implementation Obstacles With the ending of USAID’s Economic Governance II program, MOLSA will need to assume responsibility for managing the SSN Information System development. MOLSA will need to contract a Support and Services Contract with a firm capable that can provide support as well as system development and improvement. Given the uncertainties facing the future of the project because of the new law (Law 18) for the Disengagement of Social Affairs Directorates from MOLSA, all procurement activities were put on hold in February 2010. However, Law 18 was suspended in June 2010 by the Federal Supreme Court, and therefore all pending procurement activities can be resumed. Since these activities had been put on hold for six months, an extension of the Grant closing date beyond February 28, 2011 may be required. 37 World Bank Iraq Trust Fund Household Survey and Policies for Poverty Reduction Project (TF056441/P098979 and TF056442/P121754, P099084) September 2010 Project Summary Sheet Title Household Survey and Policies for Poverty Reduction Project Implementing Ministry of Planning and Development Co-operation (MOPDC) Agency World Bank Location Nationwide (all 18 Governorates) Sector code 13010 Population policy and administrative management (OECD DAC) 16062 Statistical capacity building 4.4.1.1 Design and carry out specific policies including reforms and investments toward Compact achieving the Millennium Development Goals Priority 4.4.2.1 Undertake specific measures to strengthen the targeted safety net US$12.1 million: Project Cost US$7.0 million MOPDC-implemented grant US$5.1 million Bank-executed technical assistance Duration 74 months Approval Date July 2006 Effective Date July 2006 Closing Date September 2012 The project financed (i) the first nation-wide expenditure survey since 1988; (ii) the development of an official poverty line and analysis of the causes and consequences of poverty; and (iii) the development of an official Poverty Reduction Strategy. During the coming period, Project the project will finance (i) capacity building and technical assistance for implementation of the Description Poverty Reduction Strategy; (ii) capacity building and technical assistance for monitoring progress of the Poverty Reduction Strategy; and (iii) financial, capacity building and technical assistance for poverty measurement (including a second round of the survey). The project supports the improvement of government services and programs aimed at reducing Beneficiaries poverty, increasing employment and improving safety nets. The intended beneficiaries therefore are the poor, vulnerable and unemployed Iraqis. Near Term To supplement the existing MOPDC staff, 324 Iraqi consultants were engaged to conduct the Employment survey and analyze data. A similar number will be engaged in the second round of the survey. Creation Strategic Context and Donor Coordination The project directly supports helping Iraq build efficient, inclusive, transparent, and accountable institutions. The project is closely coordinated with other donors working in similar areas including USAID, DfiD, UNDP, WFP and UNICEF. Project Development Objective Strengthen the ability of the GOI to make and implement informed policies regarding poverty reduction, job creation and improvement of safety nets. 38 Outputs, Key Activities and Procurement • Comprehensive household survey data for 2007 and 2011 (raw data and tabulation report) • Official poverty line • Poverty analysis report Outputs • Official Poverty Reduction Strategy • Improved capacity in central (and KRG) ministries for policy making • Improved capacity in central ministries, KRG and governorates for implementing poverty reducing policies and programs. • Household survey data collection • Poverty analysis (including agreement on poverty line) • Development of Poverty Reduction Strategy Activities • Support to line ministries and governorates for implementation of PRS • Monitoring of PRS • Relevant technical assistance and capacity building (executed by the World Bank) Goods: US$1.2 million Consulting Services: US$3.6 million Procurement Operating Costs: US$2.1 million Technical Assistance: US$5.1 million Unallocated: US$0.1 million Financial Data Funds Committed US$8.9 million % approved 74 Funds Disbursed US$8.9 million % approved 74 Forecast Closing Date September 2012 Delay (months) Progress against Indicators Collect and analyze high quality data on Data collected for 12 months in all governorates. household income, Remarkably few areas (parts of governorates) are 100 expenditure and living inaccessible due to the security situation. Quality of standards for all fieldwork and data found to be good. governorates. Data sets and tabulation The Tabulation Report was released in Baghdad on 100 reports. January 12, 2009. On November 24, 2009, the GOI formally adopted the Poverty Reduction Strategy. % of planned Analysis of the Iraq Household Socio- The 2010 budget has taken on several of the Economic Survey recommendations of the draft Poverty Reduction 100 (IHSES) appears in Strategy (PRS), including increasing allocations for government reports and basic education and health. The new National impacts budget decisions Development Plan similarly incorporates the priorities of the PRS. Strengthen capacity of Iraqi Government About 4,300 person days of training. 400 agencies (1,000 person days of training planned) 39 Qualitative Assessment of Project Performance On November 24, 2009, the Council of Ministers formally adopted a Poverty Reduction Strategy (PRS) based on the analysis of the Iraq Household Socio-Economic Survey (IHSES) data. The Poverty Assessment report is being finalized. The PRS was publically launched on January 14, 2010 and was presented to the Council of Representatives on January 19, 2010. Many of the recommendations and priorities of the PRS have been incorporated into the 2010 budget and the draft Five Year National Development Plan. The project has provided 2,464 person days of training on design and implementation of survey, 992 person days of training on poverty analysis and 828 person days of training on strategy development. Major Implementation Obstacles Currently, the project is not facing any major implementation obstacles. 40 World Bank Iraq Trust Fund Private Sector Development Project (TF054462/P091344/P112064) September 2010 Project Summary Sheet Title Private Sector Development Project Implementing Ministry of Planning and Development Cooperation (MOPDC) Agencies Iraqi Telecommunications and Post Company (ITPC) Private Sector Development: Erbil Location Telecommunications: Nationwide Sector code 25010 Business support services and institutions (OECD DAC) Compact 4.3.2.1Undertake specific measures to design and implement private sector development Priority policies Project Cost US$65 million Duration 87 months Approval Date November 2004 Effective Date December 2004 Closing Date March 2012 The project aims to help Iraq strengthen its institutional capacity and build essential communications infrastructure to help foster the development of the private and financial Project sectors, and increase investment and economic growth. Communications infrastructure will be Description improved through the installation of a national high capacity telecommunications network and a communications platform to link the Central Bank of Iraq (CBI) to commercial banks in the country. The project has national coverage, benefiting every Iraqi and business by financing Iraq’s Beneficiaries national communications backbone, and by building institutional capacity of key private sector institutions. Installation of telecommunications infrastructure will create at least 1,000 short-term jobs. More importantly, the national communications backbone will create thousands of jobs through Near Term downstream communications companies, and will help enable private sector development. There Employment will also be medium term employment generation following the development of industrial Creation estates supported under the project as well as increased business activity through institutional strengthening. Strategic Context and Donor Coordination The telecommunication components of the project were designed to complement assistance provided by Japan and the US on the payment system. The private sector components were conceived in consultation with the Iraqi private sector and the main donor agencies. The private sector agenda continues to be coordinated with USAID, DFID, the EC, and UNIDO. Project Development Objective • Lay the foundation by addressing certain key priorities in institutional capacity building and essential communications infrastructure to help foster the development of the private and financial sectors • Generate job creation through the development of the private sector Outputs, Key Activities and Procurement • Telecommunications network constructed • Payment system developed Outputs • Industrial estates master plans and related documents created for Basra and Erbil • Capacity for private sector development (Exports/Investment Promotion) developed 41 • Construction of telecommunications network • Development of payment network Activities • Preparation of industrial estates master plan • Private Sector Capacity Building activities Goods and Civil Works: US$46.08 million Procurement Consulting Services: US$17.87 million Operating Costs: US$ 1.05 million Financial Data Funds Committed US$58.5 million % approved 90 Funds Disbursed US$56.9 million % approved 88 Forecast Closing Date March 2012 Delay (months) Progress against Indicators Capacity-building with the Economic Development Export Promotion Fund (EDF) strengthened EDF to enable it to Agency, Economic resume lending to SMEs. 80 Development Fund Capacity building with the Export Promotion capacity strengthened. Agency has been limited by the unavailability of some Ministry of Trade staff. 100 private enterprises 77 feasibility studies and 51 export plans have been develop export plans completed, exceeding the 75 feasibility studies and and/or feasibility studies 100 50 export plans agreed during contract for new funding from modification. financial institutions Central Bank of Iraq % of planned (CBI) connected with Government-owned The inter-banking network has been installed and banks and the commissioned at 35 sites. The network has been headquarters of private tested and applications for payment, real-time gross 100 banks with high capacity settlement, and check-enabled systems are being and reliable launched. communications infrastructure The microwave network has been installed and Rehabilitation and commissioned at 56 sites in the northern, southern upgrading of 56 national and western regions, and 11 towers in the three 100 background microwave regions have been set-up. All three routes have been routes. tested. Qualitative Assessment of Project Performance The feasibility studies and development plans for Basra and Erbil Industrial Zones contracts were extended at no cost for three months in late September 2010, when final reports were presented to the GOI and the KRG. Both Iraqi Inter-Banking Network (IIBN) and Microwave Network have been installed and are operational. On June 13, 2010, an attack on CBI damaged the IIBN site at CBI. IIBN consists of 35 sites altogether of which CBI site is one of the two core sites. IIBN is currently still operational. A plan to rehabilitate the CBI site is being prepared in consultation with the PMT. Major Implementation Obstacles The PSD component was affected by the lack of participation of the Export Promotion Fund, which delayed completion of this contract by three months, to end-June 2009. 42 World Bank Iraq Trust Fund Environment Management Project (TF057359/P099809) September 2010 Project Summary Sheet Title Environment Management Project Implementing Ministry of Environment (MOEn) Agency Location Baghdad, Basra, Ninawa Sector code 41010 Environmental policy and administrative management (OECD DAC) Compact 4.4.1.5.1 Improve institutional capacity to administer environment and natural resources Priority conservation programs Project Cost US$5 million Duration 66 months Approval Date November 2006 Effective Date December 2006 Closing Date June 2012 The objective of the project is to strengthen key institutional and regulatory functions of MOEn Project to enable it to undertake environmental policy analysis and coordination, formulate laws and Description regulations, monitor environmental quality, promote environmental awareness, and conduct technical studies. Over time, Iraqi citizens will benefit from the public health and environmental improvements that result from improved air and water quality, as the government is better able to manage Beneficiaries environmental risks, target pollution control investments, and address municipal and healthcare waste management issues. Near Term Employment N/A Creation Strategic Context and Donor Coordination The project supports Iraq’s efforts to improve management of its natural resources and the environment, and is the first environmental operation in Iraq. Project Development Objective Increase the ability of the MOEn to monitor and manage environmental quality Outputs, Key Activities and Procurement • Rapid Environmental Action Plan to systematically analyze environmental issues and propose priorities for intervention in the next 3-5 years Outputs • Revised environmental guidelines and increased capacity for Environmental Impact Assessment • Solid waste management in Baghdad and health care waste management master plans • Develop Rapid Environmental Action Plan • Revise Environmental Guidelines Activities • Install air quality monitoring stations • Prepare solid waste & health care waste management master plans • Capacity building Goods: US$2.64 million Procurement Consulting Services: US$2.14 million Operating Costs: US$0.22 million 43 Financial Data Funds Committed US$3.4 million % approved 68 Funds Disbursed US$2.3 million % approved 46 Forecast Closing Date June 2012 Delay (months) 14 Progress against Indicators • The TOR for the cost of environmental degradation has been prepared. • Delivery of the majority of air quality MOEn to undertake policy equipment was completed and shipping of the analysis, revise its remaining equipment is underway but not environmental law and installed yet. The installation civil work has regulations, acquire been suspended due to the problem in capacity to monitor air transferring IQD (see below for detail). % of planned 50 quality in 3 cities, and • The bidding document for the new air quality successfully launch monitoring package of US$1 million (2 fixed awareness campaigns in and 1 mobile) has been prepared. selected schools • The water quality specialist has been hired for conducting data analysis. • Environmental Awareness Specialist has been hired for conducting an awareness campaign. Qualitative Assessment of Project Performance Disbursement remains at 46% of project fund. However, this is due to the blockages in receiving funds as mentioned below. All the next steps that were agreed on during the last mission in March have been completed. The next mission will be conducted from October 3-8, 2010. Major Implementation Obstacles The rate of disbursement has not improved recently due to problems in transferring funds in Iraqi Dinar (IQD) since June 2010. The World has since made considerable progress toward resolving the issue. The World Bank has also opened new accounts in three commercial banks to prevent a recurrence of the IQD problem, and Iraq projects will henceforth be able to open designated accounts. 44 World Bank Iraq Trust Fund Electricity Reconstruction Project (TF057818/P087734) September 2010 Project Summary Sheet Title Electricity Reconstruction Project Implementing Ministry of Electricity (MOEl) Agency Location Al Basrah Sector code 23010 Energy Policy and administrative management (OECD DAC) Compact 4.2.3.1 Adopt and implement policies, legislation, regulations, procedures and build Priority institutions of public service management Project Cost US$6 million Duration 74 months Approval Date April 2007 Effective Date April 2007 Closing Date June 2013 The project aims to help Iraq restore and improve electricity supply. The project includes an IDA Credit (US$124 million) that finances the rehabilitation of the Hartha power plant, and a companion Iraq Trust Fund (ITF) grant (US$6 million) that finances the technical assistance components of the project. The objectives of the project are to: (i) alleviate the power supply Project shortfall by restoring the base load generation capacity of the Hartha Power Station Units 2 and Description 3 to 400 MW; and (ii) strengthen in-house capacity for improved power sector development in Iraq. The ITF-grant finances consultant support and training of Iraqi MOEl officials in the preparation of least cost reconstruction and expansion plans, feasibility studies and advisory services for future projects. The project aims to provide electricity to approximately 1 million households and grid- connected industrial consumers for a period of 20 years. The direct beneficiaries of the ITF grant are MOEl staff, whose skills will be upgraded in technical areas of operations, maintenance and Beneficiaries planning, environment and general project management, as well as in financial, legal and general management aspects of power utilities. Indirectly, all power consumers will benefit from improved efficiency and more stable power supply. Near Term Employment N/A Creation Strategic Context and Donor Coordination The 2003 Joint Needs Assessment estimated Iraq’s electricity reconstruction needs at US$35.8 billion. The US, Japan, UK, and UNDP have pledged substantial contributions. The electricity sector is a priority sector of Iraq’s National Development Strategy and the International Compact with Iraq, which includes elements of MOEl’s Master Plan for 2006-2015. Donor coordination among UNDP, CIDA, DFID, Japan, US, UK and other development partners, and the World Bank takes place on an informal basis as required. Project Development Objective Provide technical assistance to MOEl staff to facilitate project implementation and build capacity for energy sector rehabilitation planning Outputs, Key Activities and Procurement • Successful project implementation Outputs • Increase capacity for sector planning Activities • Institutional Support and Technical Assistance 45 Goods: US$0.5 million Consulting Services: US$3.5 million Procurement Operating Costs: US$1.0 million Contingencies: US$1.0 million Financial Data Funds Committed US$3.2 million % approved 53 Funds Disbursed US$0.6 million % approved 10 Forecast Closing Date June 2013 Delay (months) Progress against Indicators • MOEl has issued a Request for Proposal to Consultants to assist with capacity development for power generation expansion. It now expects to have a Consultant hired by early 2011 to undertake the remainder of technical assistance funded by this project. • The project will also fund direct training of Ministry of Electricity staff that will enable them to better manage the Hartha Power Station. The Ministry of Electricity will Capacity building % of planned 40 submit a training plan to the World Bank by end November 2010, and then undertake the training funded by this project. • The project also funds the Owner’s Engineer for the Hartha Rehabilitation Contract. Now that the Contractor that will undertake rehabilitation of the Hartha Power Station is mobilizing, this Owner’s Engineer contract will begin to disburse. • Qualitative Assessment of Project Performance About US$3 million has been committed for services related to the Hartha plant rehabilitation. After a number of years of procrastination, the MOEl requested that remaining funds be used for technical assistance to support the development of power generation and is close to finalizing procurement of consultants for this work. Major Implementation Obstacles The major implementation impediments have been security issues and price increases, which delayed the signing of the rehabilitation contract (financed by IDA) and, therefore, the associated technical assistance (financed by the ITF). 46 World Bank Iraq Trust Fund Community Infrastructure Rehabilitation Project (TF053546/P087881) September 2010 Project Summary Sheet Title Community Infrastructure Rehabilitation Project Implementing Ministry of Water Resources (MOWR) Agency Erbil, Baghdad, Dahuk, Dhi Qar, Diyala, Karbala, Al-Muthanna, An Najaf, Al Qadisiyah, Salah Location Ad Din, As Sulaymaniyah, Wasit, Babylon, Ninawa Sector code 14030 Basic drinking water supply and basic sanitation (OECD DAC) 31140 Agricultural water resources Compact 4.6.5 Carry out investment plans (Agriculture & Water Management) Priority 4.4.1.5.2 Undertake specific measures to ensure universal access to services Project Cost US$20 million Duration 48 months Approval Date December 2004 Effective Date December 2004 Closing Date December 2008 The project aimed to address urgent rural water needs through a flexible program of labor- Project intensive civil works to improve rural water supply and sanitation, and irrigation and drainage; Description generate near-term local employment; and strengthen the institutional capacity of MOWR and its regional directorates. The project intended to benefit around 153,500 rural inhabitants by improving irrigation, Beneficiaries drainage, and water supply, and targeting improvement to about 89,000 hectares of irrigated areas. Near Term Job creation is a specific project objective. The project aimed to create more than 20,000 job Employment opportunities (about 181,000 work days in total). Creation Strategic Context and Donor Coordination The project employed a flexible programmatic approach that allows interventions to adapt to the changing realities on the ground and to the interventions of other donors. While the project focuses on job creation and local impact, it aims to help lay the groundwork for larger-scale irrigation and drainage sector rehabilitation and reform. Project Development Objective • Improve rural water supply • Improve irrigation and drainage • Generate rural employment opportunities • Increase capacity at Ministry of Water Resources Planned Outputs, Key Activities and Procurement • Water supply and sanitation infrastructure constructed • Irrigation and drainage canals constructed Outputs • 20,400 jobs created • Improved capacity to manage rural water at MOWR • 22 subprojects (in 14 governorates) addressing rural water needs Activities • Capacity building Civil works: US$16.2 million Procurement Goods: US$ 2.2 million Consulting Services & Institutional Strengthening: US$ 0.6 million 47 Financial Data Funds Committed US$19.0 million % approved 95 Funds Disbursed US$19.0 million % approved 95 Closing Date December 2008 Delay (months) Progress against Indicators Employment creation 172,000 man days of employment created 100 Beneficiaries of rural 146,000 beneficiaries % of planned 103 water projects Improved irrigated areas 88,000 hectares 101 Qualitative Assessment of Project Performance Twenty-two subprojects in 14 governorates have been completed. The project created an estimated 172,000 man-days of local employment, improved approximately 89,000 hectares of irrigated areas, and benefited about 150,000 end beneficiaries. In addition, an average of 6-7 bidders per contract indicates that the project benefited from a competitive procurement environment. To expand the scope and impact of this successful project, an additional grant of US$26 million was approved in June 2008 and is currently under implementation. Major Implementation Obstacles The project is completed and closed. 48 World Bank Iraq Trust Fund Community Infrastructure Rehabilitation Supplement (TF091663/P109296) September 2010 Project Summary Sheet Title Community Infrastructure Rehabilitation – Supplement Implementing Ministry of Water Resources (MOWR) Agency Erbil, Baghdad, Dahuk, Dhi Qar, Karbala, Al-Muthanna, An Najaf, Salah Ad Din, As Location Sulaymaniyah, Babylon, Ninuya Sector code 14030 Basic drinking water supply and basic sanitation (OECD DAC) 31140 Agricultural water resources Compact 4.6.5 Carry out investment plans (Agriculture & Water Management) Priority 4.4.1.5.2 Undertake specific measures to ensure universal access to services Project Cost US$25.5 million Duration 44 months Approval Date April 2008 Effective Date April 2008 Closing Date December 2011 The project aims to address urgent rural water needs through a flexible program of labor- intensive civil works to improve rural water supply and sanitation, and irrigation and drainage; generate near-term local employment; and strengthen the institutional capacity of MOWR and its regional directorates. Project The Community Infrastructure Rehabilitation Supplemental Grant finances additional labor- Description intensive civil works to improve rural water supply and sanitation, and irrigation and drainage in order to expand the impact of the original project. The grant finances the rehabilitation of rural- water infrastructure, creates additional local employment, and introduces changes to improve project implementation by: (i) further decentralizing bid evaluation; (ii) enhancing community participation by engaging the end-beneficiaries in project preparation; and (iii) building the capacity of MOWR and its regional directorates. The project will benefit more than 32,080 rural inhabitants by improving irrigation, drainage, Beneficiaries and water supply, targeting improvements to about 23,277 hectares of irrigated areas. Near Term Job creation is a specific project objective — the project will create about 14,000 job Employment opportunities (about 107,700 work days in total). Creation Strategic Context and Donor Coordination The project employs a flexible and programmatic approach that allows interventions to adapt to the changing realities on the ground and to the interventions of other donors. While the project focuses on job creation and local impact, it aims to help lay the groundwork for larger-scale irrigation and drainage sector rehabilitation and reform. Project Development Objective • Improve rural water supply • Improve irrigation and drainage • Generate rural employment opportunities • Increase capacity at Ministry of Water Resources 49 Outputs, Key Activities and Procurement • Water supply and sanitation infrastructure constructed • Irrigation and drainage canals constructed Outputs • 10,000 jobs created • Improved capacity to manage rural water at MOWR • 16 subprojects (in 11 governorates) addressing rural water needs Activities • Capacity building Civil works and Goods: US$24.1 million Procurement Operational Costs: US$ 0.7 million Unallocated: US$ 0.7 million Financial Data Funds Committed US$22.2 million % approved 87 Funds Disbursed US$15.4 million % approved 60 Forecast Closing Date December 2011 Delay (months) 0 Progress against Indicators 105,025 man-days created or • Employment created (man-days) around 7,000 new job 100 opportunities % of planned • Number of water-user end- Currently, 31,000 beneficiaries 89 beneficiaries. Qualitative Assessment of Project Performance Overall, the project is on track. Out of 16 civil works contracts, 13 are completed, and three are ongoing and is expected to be completed by Summer 2011. The remaining three contracts are currently being prepared. Equipment procured through one of the two major equipment contracts has been delivered to Iraq. All the goods required under the project have now been procured. The internal training component is on track. It began in April 2009 and so far nine training courses have been conducted (six technical and three financial/economical). 180 trainees have so far benefited. . Major Implementation Obstacles The project benefits from being located in rural areas, which are less affected by security “hot spots”. While the PMT is experienced, committed, and stable, it has recently become quite overloaded with work, which could potentially result in a deterioration of procurement management. Support from MOWR’s high level management has been sought to further strengthen the PMT. 50 World Bank Iraq Trust Fund Banking Sector Reform Project (TF094193/P113337) September 2010 Project Summary Sheet Title Banking Sector Reform Project Implementing Central Bank of Iraq (CBI) Agency Location N/A – Institutional Support/Nationwide Sector code 24010 Financial Policy and Administrative Management (OECD DAC) 24020 Monetary Institutions Compact 4.3.3.1 Undertake specific measures to restructuring State-Owned Banks Priority 4.3.3.2 Undertake specific measures to promote private banking Project Cost US$10 million Duration 50 months Approval Date April 2009 Effective Date April 2009 Closing Date June 30, 2013 The project aims to support the Iraqi authorities in the implementation of Phase I of the “Iraq Banking Reform Strategy” (2008-2012) and its Action Plan, focusing on four main components: Project (i) institutional and operational restructuring of the two state-owned commercial banks; (ii) Description financial restructuring of the two state-owned commercial banks; (iii) strengthening the regulatory and supervisory functions of the Central Bank of Iraq; and (iv) project management, monitoring and evaluation. The project supports the Iraqi government to build a sound banking system, able to provide efficient financial services competitively. The immediate direct beneficiaries would be the two largest state-owned commercial banks—Rafidain Bank and Rasheed Bank—which account for Beneficiaries more than 70 percent of the banking system. Ultimately, all Iraqi businesses and citizens will benefit from an improved banking system that can provide the resources needed for Iraq’s growth and offer good deposit and payment systems for businesses and households. Near Term Employment N/A Creation Strategic Context and Donor Coordination The donor community has been active in helping Iraq in restructuring the banking sector. The World Bank has been coordinating with all development partners involved in the banking reform, including the IMF, EU, US Treasury, and Financial Services Volunteer Corps (FSVC). The IMF has taken the lead in monetary activities and rebuilding the capacity of CBI. The US has focused mainly on the restructuring and financial audits of the state-owned banks, and helping Iraq draft an operational restructuring plan. FSVC provides technical assistance to CBI to strengthen its internal operations. The World Bank chairs an “Iraq Banking Reform Donors Group”, to coordinate efforts, promote complementarity, and avoid overlap. Project Development Objective • Support Iraq’s implementation of Phase I of the Iraq Banking Sector Reform Strategy • Strengthen the supervisory framework for financial intermediation Outputs, Key Activities and Procurement • New organizational structures for the two state-owned banks are adopted Outputs • Number of staff trained in each bank would reach at least 100 staff members • Compliance supervisory and regulatory framework (Basle Code Principles) Activities • 51 Goods: US$0.35 million Consultants’ Services and Training: US$8.90million Procurement Incremental Operating Expenses: US$0.25 million Unallocated: US$0.50 million Financial Data Funds Committed US$1.3 million % approved 13 Funds Disbursed US$0.4 million % approved 4 Forecast Closing Date June 2013 Delay (months) Progress against Indicators Improvement in functioning of the two state-owned commercial banks, evident in Loan-to-GDP ratios increased the increase in loan-to-GDP ratios from to reach 5% in 2009 4% in June 2006 to 6% in October 2010. Build-up in provision levels at the two state-owned commercial banks for new The reserves-to-NPL ratios loans, reflected in the reserves-to-NPLs raised from 10% in June 2006 ratios, rising from 10% in June 2006 to to reach 15% in 2009 % of planned 20% in October 2010. Capital adequacy ratio in line with Capital adequacy ratio reached prudential regulations, reaching up to 4% 2% in 2009 by October 2010. Number of staff trained to do Number of staff trained to do bank bank operations reached 4 in operation 2009 52 Qualitative Assessment of Project Performance Considerable progress has been made over the past months in the implementation of the banking sector reform program. The World Bank has been providing technical support and advisory services to the Iraqi authorities. This has led to the development of a comprehensive, action-specific Banking Reform Strategy-Action plan (2008–2012), which was done in consultations with CBI, BSA, and the senior management of the two state-owned banks, which was led by the World Bank in November 2008. As a result, consensus was reached among all counterparts on a unified strategy, which became the binding document for banking reform in Iraq, and has allowed Iraqi authorities to meet the benchmark set forth by the IMF stand-by Agreement (SBA). Good progress has been made to date towards the objectives laid out by the GOI in its comprehensive five-year Banking Reform Strategy. Despite delays in the speed of implementation and slower than anticipated disbursement due to the complex situation on the ground, the PMU has made progress in the implementation of the four components of the project. Some achievements have been made in the organizational structure and the IT infrastructure of the two state-owned banks. On organizational structure and capacity building, proposals had been received and evaluated and negotiation started in April 2010. On internal audit and compliance, technical and financial proposals were received, however all proposals were damaged because of the recent attack on CBI and PMU. On risk management, timing to publish EOI will be decided upon based on the recommendations of the organizational restructuring. On IT Training, EOI was advertised and RFP were sent to the short listed firms but due to the attack the closing dates were extended. On training of the Branch Mangers and training of Human Resources contracts, technical proposals were evaluated and World Bank’s No Objection was granted but the proposals were damaged because of the attack. On financial restructuring, the Ministry of Finance, in coordination with CBI has been working on addressing the problem of non-performing loans (NPLs). NPLs for the two state-owned banks had declined to reach ID110 billion in December 2009 (a reduction by 23 percent as of June 2007). The financial restructuring of Rasheed Bank and Rafidain Bank would be accelerated through the establishment of a Financial Restructuring Reconciliation Committee, which would be chaired by a representative from the Ministry of Finance (as the owner of state-owned banks), and comprising management of the two state-owned banks. CBI and BSA agreed to be observers, while Ernst and Young (E&Y) would be active members to guide on audit issues. This Committee would work under Restructuring Oversight Committee (ROC), and would focus on addressing the problem of external debt rather than NPLs of SOEs, which is quite negligible as opposed to the former. CBI is currently working on its regulatory and supervisory authority. The contract with the selected consultant was signed on April 2010 and the consultant commenced his task at CBI, Baghdad on May 30, 2010. On Banking Supervision training, three institutions were short-listed but only the Central Bank of Egypt submitted their proposals before the closing date. The project is in the midst of procuring training for branch managers of the two targeted state-owned banks (estimated cost US$630,000); training services for Human Resources; training services for the development of computer skills for staff of the two state-owned banks (estimated cost US$1.0 million); and training for risk management and internal and audit compliance (estimated cost US$1.6 million). Recently, no-objection was provided for the contract signing of the advisory and training services to the supervision department of the CBI (cost US$685,000) and hiring of an external auditor. It is expected that disbursement will increase significantly in the coming months. 53 Major Implementation Obstacles Although significant progress has been made to date by the PMU in the implementation of the four components of the project, the unsettled political environment in Iraq has contributed to delays in the speed of project implementation. Disbursement has been very slow due to implementation capacity bottlenecks in Iraq, which impose long procedures in preparing and analyzing contracts, the assignment of needed consultants and training institutes, negotiation periods, and receipt of approvals from the stakeholders. Good progress has been made in signing consultancy contracts, issuing RFPs, and receiving proposals, however the June attack caused serious delays that affect the progress in implementation. The PMU had reallocated themselves to a temporary location but cannot function efficiently because of the tight security around that alternative location. The PMU will need to reallocate again to a new location within the Rafidain Bank—HQ close to the CBI location. The June 13, 2010 attacks led to the destruction of all records, including procurement and financial management records, as well as PMU equipment. The World Bank explored areas in which further support can be provided to CBI in procurement of office equipment and furniture for the PMU, to resume working in an efficient business environment, replacing the destroyed assets. Furthermore, capacity-building activities such as technical training are behind schedule and the lack of interest by international consulting firms and individuals to work in Iraq remains a challenge. However, we are anticipating the signing of a number of contracts during the coming period but most of these contracts have six month duration which will not be fulfilled by the original closing date of October 31, 2010. Hence, the World Bank cannot provide its no objection to these contracts as they go beyond the closing date. Moreover, the unstable security conditions have also impacted the project, including the attacks on the CBI on June 13, 2010 which led to damage of the PMU office (furniture, documents and equipments), hence the need for a project extension to June 30, 2013 to ensure full implementation of the project’s key components. 54 World Bank Iraq Trust Fund Public Finance Management (TF094552/TF094654 – P110862) September 2010 Project Summary Sheet Title Public Finance Management Project Implementing Ministry of Finance (MOF) Agency World Bank Location N/A – Institutional Support/Nationwide Sector code 15120 Public Sector Financial Management (OECD DAC) 4.1.2.B1 Develop and implement legislation and build institutions to improve Public Financial Management 4.1.2.B2 Achieve an integrated and comprehensive budget and increase strategic content Compact 4.1.2.B3 Establish and implement procedures and regulations to improve budget reliability and Priority accountability 4.1.2.C1 Pass and implement legislation and regulations, build and operationalize institutions for public procurement US$18 million: Project Cost US$16 million MOF-implemented grant US$2 million World Bank-executed technical assistance Duration 47 months Approval Date June 2009 Effective Date July 2009 Closing Date June 2013 The project supports the ongoing public financial management (PFM) reform process, including Project strengthening budget management, improving public financial reporting and control, Description strengthening public procurement, and establishing the tools, systems and institutions required for effective PFM capacity development. The main direct beneficiaries are the Ministries of Finance, and Oil, as well as some of the Beneficiaries spending units which are involved in piloting new processes. By improving the performance of public finances, the project has the potential of broad national benefit. Near Term Employment N/A Creation Strategic Context and Donor Coordination The project is closely coordinated with other donors in the country who are active in the area of PFM, particularly the IMF, DfID and the US Department of the Treasury. As part of project implementation, the MOF will convene regular donor coordination meetings to track progress toward the implementation of the PFM Action Plan, and solicit inputs from other donors. Project Development Objective • Support the Government of Iraq’s efforts to develop a more effective, accountable and transparent public financial management Outputs, Key Activities and Procurement • Detailed sector strategies • Investment preparation procedure Outputs • Budget call circular design • Budget preparation manual and procedures • Sector specific standard bidding documents 55 • Procurement information monitoring system • Cash release system design • Commitment control system design • Financial reporting procedures improvements • Internal MOF Network • Training curricula • Technical assistance and on-the-job capacity building to the staffs of the budget, accounting and economic directorates of MOF, the procurement department of the MOPDC, and the Activities finance and investment departments of the spending units involved • Workshops, seminars, training courses and conferences Goods: US$ 0.1 million Consultants’ Services and Training: US$14.0million Procurement Incremental Operating Expenses: US$ 0.3 million Technical Assistance: US$ 2.0 million Unallocated: US$ 1.6 million Financial Data Funds Committed US$0.2 million % approved 1 Funds Disbursed US$0.2 million % approved 1 Forecast Closing Date June 2013 Delay (months) Progress against Indicators Budget execution improved significantly from Capital budget execution up just over 50% at the beginning of the project 100 by 10% to over 70% The Ministry completed a review of outstanding cash balances in spending units in Outstanding cash balances at September 2010, which led to re-classification spending units as share of of a large portion. Data provided is still under budget down by 30% review. • Cash release system design Work completed on the Accounting Manual • Commitment control system which would significantly improve accuracy 15 design and timeliness of Government financial • Financial reporting reports. procedures improvements Equipment which will contribute to the • Internal MOF Network (IT) establishment of MOF network was delivered as part of the response to the recent terrorist attacks. % of planned The Ministry has been implementing new procurement regulations for over a year which would lead to a significant number of 50% of contracts above contracts being awarded competitively. threshold awarded However, no data on those is available at the competitively moment. • Sector specific standard 20 bidding documents Consultant’s contract for the Component II of • Procurement information the project is about to be signed. monitoring system Procurement Law is awaiting for the new Parliament to convene to be adopted Request for Proposals have been sent to a MO F training institute shortlist of companies interested in carrying operational out this work. 56 • Training curricula developed Qualitative Assessment of Project Performance Since the first formal Supervision mission in February 2010, the project performance has accelerated. Technical proposals for the four major consultant contracts have been received. For the major consultancy on procurement reform support, a contract is expected to be signed by end-October 2010; contracting expected by end-2010. The project continues to provide the platform for sustained engagement with the GOI on PFM reform, as evidenced by the recent (May 2010) consultative workshops in Istanbul, which resulted in Draft Budget Strategy for 2011, as well as a draft of a new Accounting Manual. Project implementation arrangements are acceptable at present. Major Implementation Obstacles The only implementation obstacle at present is a relative lack of capacity in the PMT procurement function, but this will be strengthened shortly through VC-based training for PMT staff – conducted by the project’s fiduciary experts – to ensure that the next steps on the major contracts are carried out as efficiently as possible. 57 World Bank Iraq Trust Fund Integrated National Energy Strategy Technical Assistance (INESTA) (TF095802 – P111074) September 2010 Project Summary Sheet Title Integrated National Energy Strategy Technical Assistance (INESTA) Implementing Prime Minister’s Advisory Commission (PMAC) Agency Location N/A Sector code 23010 Energy Policy and administrative management (OECD DAC) Compact 4.5 Energy (Oil, Gas and Electricity) Priority Project Cost US$5 million Duration 29 months Approval Date December 2009 Effective Date January 2010 Closing Date June 2012 The INESTA project, and resulting Integrated National Energy Strategy (INES), is a response to requests from the GOI, through the Prime Minister’s Advisory Commission (PMAC), a part of the Prime Minister’s Office (PMO). Project Development of coordinated policy and strategy in the energy sector is a key part of the Description country’s recovery strategy. The World Bank will provide the funding and independent quality control needed by the GOI to procure the high quality consultants needed to formulate an INES. Use of highly qualified international consultants to develop the INES is necessary to reinforce inadequate capacity in the country, to address the importance and magnitude of the Iraqi energy sector, and to provide the necessary independent and global perspective. The beneficiaries are the GOI (funding), and the Iraqi population in terms of the broader project Beneficiaries outcomes and an improved energy sector. Near Term Employment N/A Creation Strategic Context and Donor Coordination The international dimensions of Iraq’s energy sector policies are particularly important. Iraq is one of the world’s largest holders of low cost oil and gas resources, and it interacts closely with global energy markets, and the world economy. Project Development Objective To improve the ability of the GOI to develop an energy strategy that is designed to increase the contribution of the sector to sustainable development Outputs, Key Activities and Procurement • The production and dissemination of an Integrated National Energy Strategy (INES) incorporating the analysis of the energy sector, assessment of strategic options, and Outputs recommendations for key policies and actions to review and implement the proposed strategy. • The GOI’s adoption and execution of the Implementation Plan produced within the INES. • Funding of technical assistance for the development of an integrated energy strategy for Activities Iraq’s oil, gas and power sectors (the INES) • Support the PMT in project management, monitoring and evaluation through training, 58 consultant services, including project audit and financing of operating costs Consultants’ Services and Training: US$ 4.50 million Procurement Incremental Operating Expenses: US$ 0.25 million Unallocated: US$ 0.25 million Financial Data Funds Committed US$4.5 million % approved 90 Funds Disbursed US$0.8 million % approved 16 Forecast Closing Date June 2012 Delay (months) Progress against Indicators The PMT has now finalized procurement of a strategy/energy consultant to assist with the Development of INES 10 development of the INES. The consultant has recently submitted its Inception Report. % of planned Consultation with energy sector Will commence after completion of the INES. stakeholders Qualitative Assessment of Project Performance The PMT has moved quickly with procurement of a consultant and the consultant has now commenced work and recently submitted its Inception Report. The cost of the consultant is substantially higher than the project grant (US$5 million), with the project cost now at US$8 million. The Government Steering Committee has agreed to co- finance US$1.5 million of the required additional funding, with ITF providing an additional US$1.9 million. The World Bank is now negotiating this additional financing with the GOI. Major Implementation Obstacles Formation of a new Iraqi government could affect implementation progress, particularly due to the need for Government of Iraq co-finance, and strong Government engagement in the project. 59 World Bank Iraq Trust Fund Pension Reform Implementation Support Technical Assistance (PRISTA) (TF095639 – P114647) September 2010 Project Summary Sheet Title Pension Reform Implementation Support Technical Assistance (PRISTA) Implementing World Bank Agency Location N/A Sector code 16010 Social / Welfare Services (OECD DAC) Compact 4.4.2.3 Undertake specific measures to strengthen the targeted safety net Priority Design and implement a reform strategy for the pension system Project Cost US$5.8 million Duration 42 months Approval Date December 2009 Effective Date January 2010 Closing Date June 2013 PRISTA responds to the GOI’s request for assistance so support implementation of the new Project Pension Law. While the Pension Law presents a significant improvement, there remain Description substantial challenges in terms of GOI’s capacity to implement the law, thereby ensuring a sustainable old-age income protection mechanism for Iraq. Beneficiaries Government employees, contributors to the private pensions scheme, as well as existing retirees. Near Term Employment N/A Creation Strategic Context and Donor Coordination Efforts to reform Iraq’s pension system started soon after April 2003. This culminated in the passing of Law 27/2006 in January 2006. Implementation of Law 27/2006 was suspended as it was widely deemed to be unsustainable and did not benefit from significant international experience. Subsequently, GOI amended the law in December 2007 (referred to as the Unified Pension Law in the text of the Law), with support from the World Bank, the IMF, and USAID, to improve financial sustainability and alter the design of public sector pensions in line with good international practices. The amendments to Law 27/2006 also mandated the unification of the currently public and private sector pension schemes. Project Development Objective • In the short-term, to support the GOI in implementing the provisions of the new Pension Law • In the medium-term, to support the unification of the public and private pension schemes; and • In the long-term, to support the development of long-term old-age income strategy for Iraq Outputs, Key Activities and Procurement • The National Board of Pension (NBP) will have built up its capacity to implement the provisions of the new Pension Law • The NBP will have the capacity to undertake actuarial analysis of the pension scheme, and to conduct periodic actuarial analysis as required by the new Pension Law • The NBP, and related offices, will be housed in quality physical infrastructure, facilitating Outputs the delivery of services to the beneficiaries in a safe and accessible environment • The Social Security System is merged with the State Pension Fund (SPF), in terms of policies and benefits, and is administered by the NBP • Strategy developed detailing a plan to increase coverage beyond the existing 25 percent of population 60 • Develop capacity to implement the new Pension Law • Support the development of actuarial and pension policy analysis capacity for the SPF Activities • Contribute to the improvement of the physical infrastructure of the NBP • Support the unification of the mandatory pension provisions in Iraq • Facilitate the development of long-term national old-age income protection strategy for Iraq Procurement Consultants’ Services and Training: US$5.8 million Financial Data Funds Committed US$0.2 million % approved 3 Funds Disbursed US$0.4 million % approved 7 Forecast Closing Date June 2013 Delay (months) Progress against Indicators: Options for SPF business operations model, The NBP and the SPF organizational structure and management system have been structured to were developed and discussed during a series of respond to implementing implementation support events. Subsequently, the the new Pension Law. GOI has taken up and contextualized the options and The by-laws, developed draft instructions that describes and regulations, and key 20 codifies the future SPF Institution System functional terms of accordingly. The instructions will be presented for reference will have been formal approval in November. The SPF Board completed and endorsed Governance System was also developed and by the Council of discussed in-depth with the Board of Administrators Ministers; which is expected to be endorsed shortly. A contribution management process Options for SPF instructions on client registration, % of planned and system is in place, contribution collection, and penalties were presented to ensure proper and discussed with the Iraqi team. Upon feedback, collection and 10 the design of the Contribution Management System management of will be finalized and translated into instructions to contributions from civil frame and guide the work of the CMS. servants and public agencies into the SPF; The first implementation support event on Investment Management has taken place in July The SPF will have in 2010, where policy issues on SPF reserves and place policies, investment management were examined and procedures, and human 15 discussed with key members from the NBP and SPF resource for prudent Board of Administrators. A policy note was investment of reserves; produced and further discussions will take place in the next event in November 2010 The basic Pension Reform Options Simulation A functional unit is Toolkit (PROST) training was delivered to a core established within the team from the NBP/SPF and PSSD, and data SPF responsible for 10 collection for the analysis to begin is underway. The pension policy and TORs for the actuarial unit were developed and will actuarial analysis; be refined in the next workshop. A strategic plan for The preliminary assessment of the existing physical infrastructure infrastructure of the NBP and its branch offices was renewal and conducted in July/August 2010, results were 10 rehabilitation is discussed in a workshop and work is ongoing to completed and informs collect more data across the country. 61 construction decisions The preliminary policy discussions/dialogue on the merger of the public and private pension schemes in Polices on contributions Iraq has taken place in July 2010 and a policy note and benefits are was produced outlining the main policy issues, 10 harmonized across the international best practices/experiences and two pension schemes; customized options for GOI to consider. The policy note will be discussed and studied in depth prior to any decisions on the way forward Long-Term National Old-Age Income Protection Strategy for Long-term objective, scheduled to start end-2011 Iraq developed and informs policy making Qualitative Assessment of Project Performance Following the launch in February 2010, a number of workshops/implementation support events were held with the Iraqi counterparts from the MOF, NBP, SPF, the PSSD, and the CBI to kick-off implementation of the different components of PRISTA. Significant progress has been particularly made in Component 1 of PRISTA, which focuses on the short-term objective of supporting pension administration and the implementation of the new Pension Law. This progress includes producing a policy note capturing an agreed upon business model, organizational structure and governance system for the State Pension Fund (SPF), which was developed further to legal instructions by the SPF and will be submitted for formal approval to the MOF and the Shura Council for subsequent publication in the Official Gazette. In addition, progress was also made in Components 2, 3 and 4, as indicated in the table above. Major Implementation Obstacles None identified currently. 62 World Bank Iraq Trust Fund Institutional Strengthening and Capacity Building for the Education Sector Technical Assistance (TF095659 – P114523) September 2010 Project Summary Sheet Title Institutional Strengthening and Capacity Building for the Education Sector Implementing World Bank Agency Location N/A Sector code 11110 Education Policy and Administrative Management (OECD DAC) 4.4.1.1 Design and carry out specific policy reforms and investments towards achieving the Millennium Development Goals 4.4.1.2.1 Undertake specific measures to promote continuous education for competitive skills Compact and equal opportunities in the labor market Priority 4.4.1.3.1 Achieve universal access to basic education 4.4.1.3.2 Carry out specific activities to promote adult literacy and skills training, early childhood development and life skills training Project Cost US$2.7 million Duration 21 months December Approval Date Effective Date January 2010 Closing Date September 2011 2009 Education reform efforts in Iraq are hampered by the lack of a sectoral strategy and the weak institutional capacity. The GOI currently lacks one comprehensive National Education Strategy that would constitute the framework for system reform and guide resource allocation and international assistance to the sector. There is also recognition of the need to develop the human Project and institutional resources in order to allow line ministries to plan strategically, and to design Description and implement system reforms. Almost all sector assessments underlined the need to build internal capacity within the education and higher education sectors to support the transition. The TA consists of two main pillars: (i) Support to the National Education Strategy for Iraq (NESI); and (ii) Capacity building in strategic planning and policy design. The Technical Assistance will benefit the GOI including but not limited to: (i) GOI officials from 4 ministries in both Baghdad and KRG (Ministry of Education-Baghdad and KRG; and Ministry of Higher Education and Scientific Research-Baghdad and KRG); (ii) high-level Beneficiaries officials from the Prime Minister Office, key related ministries and members of Parliament; (iii) selected officials from the Directorates of Education; and (iv) selected officials from universities/academia across all 18 governorates. Near Term Employment N/A Creation Strategic Context and Donor Coordination The Technical Assistance is a response, for the education sector, to the GOI’s request for international support for ‘institutional strengthening and capacity building’, and part of the World Bank’s assistance strategy under the third ISN (FY09-FY11). The GOI has engaged in the preparation of a National Education Strategy for Iraq (NESI), and requested support from the World Bank, UNICEF and UNESCO. At the request of the GOI, the TA is executed by the World Bank, and is implemented in collaboration with UNESCO and UNICEF. 63 Project Development Objective The main objective of the TA is to support the GOI’s effort to develop a sector strategy for education and higher education in Iraq. This will be achieved through: (i) specific support to the work of the High Committee, the education strategy coordinator, the group of experts and the ministerial technical committees in charge of the preparation of a strategy document; and (ii) strengthening the capacity of the line ministries and other stakeholders in order to ensure an active and effective contribution to the preparation of subsectorals and sectoral strategies. Outputs, Key Activities and Procurement • Subsector strategy and policy framework reports consolidated and endorsed by the High Committee • Regional and National consultations on the education sector strategy organized • 45 GOI officials will be trained in tools for institutional development and analysis of reforms in general and vocational education, and be able to discuss strategic choices for Iraq’s education reform and formulate recommendations for input into Iraq’s National Education Strategy. Outputs • A report reflecting a common understanding of the main challenges and opportunities for preparing Iraq’s education sector for a knowledge-based economy is produced and a dissemination/restitution workshop for sharing the findings with a larger audience of Iraqi stakeholders is organized • Strategic plans for Iraqi universities drafted • Strategic planning units established in participating institutions • 2-3 professionals from each line ministry will receive specialized and certified training in educational planning and management from an internationally recognized institution I. Pillar I: Support to the National Education Strategy for Iraq (NESI) A. A series of training workshops for the technical committees to assist with the preparation of a draft strategy document B. Technical training to assist in the development of a simulation model for the country C. Distance technical backstopping to local teams Activities D. Support to consultation workshops with stakeholders II. Pillar II: Capacity Building in Strategic Planning and Policy Design A. Training course on Strategic Choices for Educational Reform B. Study tour(s) and seminar(s) on Education Reform for the Knowledge Economy C. Training on strategic planning in higher education at the institutional level D. Fellowships for executive programs in educational policy analysis and planning Consultants’ Services and Training: US$ 2.55 million Procurement Unallocated: US$ 0.15 million Financial Data Funds Committed US$0.3 million % approved 10 Funds Disbursed US$0.05 million % approved 2 Forecast Closing Date September 2011 Delay (months) Progress against Indicators: Not measurable yet. The project recently became effective. % of planned 64 Qualitative Assessment of Project Performance Following the TA launch workshop in February 2010, the World Bank team contributed to the workshop on the preparation of the NESI, which brought together 40 Iraqi officials, and was organized by UNICEF and facilitated by IIEP. During both these workshops, the status of the NESI formulation was assessed and coordination arrangements were discussed with the partners UNICEF and UNESCO. A supervision mission took place from June 12-13, 2010 to provide feedback on the draft of the Situation Analysis under Pillar I of the TA and to discuss the details of the capacity building activities under Pillar II. The Iraqi delegation presented three chapters of the Situation Analysis and agreed to send a complete report to the World Bank, UNICEF and UNESCO by July 22, 2010. Shortly after, the GOI sent the full Situation Analysis report covering General Education, Higher Education and Technical and Vocational Education to the partner organizations and the three organizations submitted consolidated comments back to the GOI. The next technical workshop for the NESI will take place from October 15-21, 2010 in Beirut, Lebanon. The GOI team will consist of 28 members to work together with the 12 World Bank experts and members of UNESCO and UNICEF on subject areas relevant to the development of the strategy and its associated simulation model. Under Pillar II of the TA: (i) the training course on Strategic Choices for Educational Reform (SCER), to be delivered by the World Bank Institute (WBI) is planned to take place in Beirut, December 6-17, 2010; (ii) the Study tour and seminar on Education Reform for the Knowledge Economy is planned for February 2011 in Malaysia and South Korea; (iii) the fellowships for executive programs in educational policy analysis and planning were suggested to be a tailored 4-6 week course held in 2011; and (iv) preparation for the training course on strategic planning in higher education will begin once the SCER course is completed. The Iraqi delegation also selected two focal points for Pillar II activities of the TA to ensure a timely and effective implementation. Major Implementation Obstacles N/A 65 MAP OF ITF FINANCED PROJECTS IN IRAQ BY GOVERNORATE 66