The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Local Governance and Services Improvement Program (P148896) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Urban, Resilience and Land Global Practice | Requesting Unit: MNC04 | Responsible Unit: SMNUR Special Financing | Program-for-Results Financing | FY 2016 | Team Leader(s): Christopher T. Pablo Seq No: 8 | ARCHIVED on 10-Dec-2019 | ISR39653 | Created by: Dana Mohammad Luai M. Almubaied on 28-Nov-2019 | Modified by: Christopher T. Pablo on 10-Dec-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The development objective of the proposed program is to strengthen the local government financing system and improve local servicedelivery in Program villages. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Satisfactory ►Satisfactory Overall Implementation Progress (IP) ►Satisfactory ►Satisfactory Implementation Status and Key Decisions The Local Governance and Services Improvement Program (LGSIP) continues to show progress in meeting its Project Development Objective. The Program is contributing to institutionalizing the transfer of grants to Village councils in order to implement investment subprojects and strengthen service delivery at the local level. In terms of strengthening local government financing, the program has initiated predictable and timely announcement and transfer of grants to Village Councils VCs. For three (3) consecutive years, the Ministry of Finance and Planning issued a directive announcing the amounts to be allocated to VCs and completed the transfer of these grants. In FY 2019, 74.5% of the VCs received their Annual Capital Investment Grants (ACIG), surpassing the target of 60%. In terms of improving local service delivery in program villages, the project benefited a total of 338,157 people, surpassing the Mid-Term Review target of 230,000. The results of the Beneficiary Impact Assessment showed that 90 percent of beneficiaries feel that Program investments reflected their community needs exceeding the target of 65 percent. To ensure that the program sustains the momentum in achieving the Disbursement-linked Indicators (DLIs), the Ministry of Local Government (MOLG), the Ministry of Finance and Planning and the Municipal Development and Lending Fund (MDLF) need to execute the final action relating to the reform of the Transportation Fee allocation and disbursement mechanism, i.e., that at least 25% of the allocation for Local Government Units (LGUs) is disbursed according to the allocation formula introduced by the LGSIP-supported reform program). Also, MDLF needs to intensify the efforts of implementation of the approved joint projects. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P148896 TF-A1039 Effective USD 5.00 5.00 0.00 4.86 0.14 97% 12/10/2019 Page 1 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) P148896 TF-A4511 Effective USD 13.00 13.00 0.00 6.74 6.26 52% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P148896 TF-A1039 Effective 14-Mar-2016 14-Mar-2016 02-Jun-2016 31-Dec-2020 31-Dec-2020 P148896 TF-A4511 Effective 14-Mar-2017 14-Mar-2017 23-May-2017 31-Dec-2020 31-Dec-2020 Program Action Plan Action Description Decree for disbursement of grant to larger VC bank account issued Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Nov-2015 Completed Completion Measurement Decree issued and transfers are executed to large VCs annually Comments Decree was issued and disbursement of annual capital grants are being transferred from MOLG to large VCs annually. Action Description Development of program Environmental and Social Management Manual (ESSM) Source DLI# Responsibility Timing Timing Value Status Client Due Date 15-Jun-2016 Completed Completion Measurement Comments Action Description Development of the Program Operation Manual Source DLI# Responsibility Timing Timing Value Status Client Due Date 26-May-2016 Completed Completion Measurement Comments Action Description Annual Capital Investment Plans (ACIPs) prepared according to prescribed format 12/10/2019 Page 2 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Source DLI# Responsibility Timing Timing Value Status Client Due Date 01-Oct-2016 Completed Completion Measurement Comments Action Description Draft proposal prepared for revised LGU functional assignments Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 01-Mar-2018 Delayed Completion Measurement uncompleted This DLI requires more consultations with government and LGUs. A draft proposal prepared by consultants is under review by the team Comments and will be discussed Q1 of FY20. Action Description Establish Program Committee to ensure effective inter-ministerial coordination Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2015 Completed Completion Measurement Comments Action Description Allocation of the transportation fee to VCs reformed Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Jun-2018 Completed Completion Measurement Transportation Fee reform directive was approved by the Minister of Local Government Comments Action Description Design and implement a comprehensive VC/JSC monitoring system Source DLI# Responsibility Timing Timing Value Status 12/10/2019 Page 3 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Client Due Date 31-Dec-2016 Completed Completion Measurement Comments Action Description Assessment and ranking of JSCs carried out in accordance with Program schedule Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2016 Completed Completion Measurement Comments Regular training to be provided on FM, procurement, social and environment systems and participatory monitoring and evaluation Action Description focusing on women and youth, at the village council, directorate, and central levels (MDLF and MoLG) Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments Action Description All VCs to submit their budgets, annual plans, annual financial statements and audit reports to the MoLG on a regular and timely basis Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement Comments Action Description VCs to prepare annual action plan to address audit findings within a period of six months after the receipt of the audit report Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due 12/10/2019 Page 4 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Completion Measurement Comments Action Description Qualified VCs, JSCs, MDLF and MoLG post their procurement and contract award notices on single procurement portal Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due Completion Measurement Comments Action Description Procurement complaint handling mechanism and Dispute Review Unit operational Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Delayed Completion Measurement Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- -- ►High Macroeconomic -- -- ►High Sector Strategies and Policies -- -- ►High Technical Design of Project or Program -- -- ►Substantial Institutional Capacity for Implementation and Sustainability -- -- ►Substantial Fiduciary -- -- ►Substantial Environment and Social -- -- ►Moderate Stakeholders -- -- ►Substantial Other -- -- -- 12/10/2019 Page 5 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Overall -- -- ►High Results PDO Indicators by Objectives / Outcomes Strengthen local government financing system and improve local service delivery in Program villages. IN00776669 ►PDO indicator 1: VCs receiving transparent and predictable Annual Capital Grants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 74.50 74.50 70.00 Date 16-Sep-2015 16-Apr-2019 16-Apr-2019 31-Dec-2020 Exceeded the target for current year. Comments IN00776670 ►PDO indicator 2: Timely communication to VCs of the formula based Annual Capital Investment Grant (ACIG) allocations and timely transfer of ACIGs to eligible VCs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Sep-2015 16-Apr-2019 16-Apr-2019 31-Dec-2020 Achieved target for current year Comments IN00776701 ►PDO indicator 3: People benefiting from improved service delivery in Program villages (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 338,157.00 338,157.00 350,000.00 Date 16-Sep-2015 16-Apr-2019 16-Apr-2019 31-Dec-2020 Achieved MTR target. Comments IN00776702 ►PDO indicator 4: Beneficiaries that feel Program investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 90.00 75.00 Date 16-Sep-2015 20-Sep-2018 11-Jun-2019 31-Dec-2020 The findings of the Beneficiary Impact Assessment (BIA), that was submitted to the Bank in June 2019, showed that 90 percent of the Key Informants (KIs) of the sample believed that the interventions carried out by the Program are relevant to Comments the needs of the community. 12/10/2019 Page 6 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Intermediate Results Indicators by Results Areas Results area 1: Strengthening local government financing system IN00776703 ►One: Annual Capital Grant Allocation Formula approved by MoLG (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Sep-2015 16-Apr-2019 16-Apr-2019 31-Dec-2020 2019 allocation formula is approved by MoLG Comments IN00776705 ►Two: Steps to improve transparency and predictability of Transportation Fee adopted by MoLG (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target By FY 18, at least 25% of Annual Capital Grants allocation to VCs is Value Not available Delayed Delayed disbursed annually per capita and on time in line with LGSIP Annual Capital Grant Flow Chart. Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 Partially achieved. Transportation Fee reform directive was submitted for approval to Cabinet of Ministers. However, end Comments target remains to be achieved. IN00776707 ►Three: Percentage of VCs submitting their annual budget to MoLG electronically on time and have disclosed budgets publicly (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 74.50 74.50 60.00 Date 16-Sep-2015 16-Apr-2019 16-Apr-2019 31-Dec-2020 Achieved target for current year of 40% Comments Results area 2: Strengthening institutional systems for improved service delivery IN00776704 ►Four: Percentage of VCs that have implemented at least 60% of their ACIPs (in terms of expenditure) by the end of each FY (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/10/2019 Page 7 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Value 0.00 0.00 0.00 70.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 No data yet. MOLG raised issues in measuring achievement of target for this indicator. After MTR, it was agreed with MOLG to refine this indicator to become “Percentage of VCs that have initiated the implementation of their ACIPs in the Comments same fiscal year” IN00776706 ►Five: Cumulative number of joint projects approved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 14.00 18.00 Date 16-Sep-2015 20-Sep-2018 11-Jul-2018 31-Dec-2020 On track. Achieved target for current year Comments IN00776708 ►Six: Number of JSCs qualifying for financing under the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.00 19.00 19.00 22.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 On track. Achieved target for current year Comments IN00776709 ►Seven: Share of vulnerable groups who participated in ACIP consultations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 No data yet. MDLF and MOLG to identify and qualify “vulnerable groups”. Comments IN00776710 ►Eight: Direct beneficiaries (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 338,157.00 338,157.00 350,000.00 Date 16-Sep-2015 16-Apr-2019 16-Apr-2019 31-Dec-2020 On track. Achieved target for current year Comments IN00776711 ►Direct beneficiaries of which female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 12/10/2019 Page 8 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Value 0.00 49.00 49.00 50.00 Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 DLI 1: Enabling steps to strengthen local governance by MoLG (Output, 1,800,000.00, 56%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes -- Date 16-Sep-2015 31-Jul-2017 31-Jul-2017 -- 20-Sep-2018 Comments ►DLI 2 DLI 3: Percentage of VCs meeting the Program eligibility criteria annually (Process, 5,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 74.50 74.50 70.00 Date 16-Sep-2015 31-May-2019 31-May-2019 -- Comments ►DLI 3 DLI 2: Timely communication to VCs of the formula-based Annual Capital Investment Grant (ACIG) allocations and timely transfer of ACIGs to eligible VCs (Process, 3,200,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes Yes Date 16-Sep-2015 31-May-2019 31-May-2019 -- Achieved Comments ►DLI 4 DLI 4: Cumulative number of Joint Projects approved (Output, 4,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 10.00 14.00 18.00 Date 16-Sep-2015 20-Sep-2018 11-Jul-2019 -- The project achieved the current target for FY2018 Comments 12/10/2019 Page 9 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) ►DLI 5 DLI5: Aggregated expenditure percentage of approved Joint Projects (Process, 1,500,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 0.00 0.00 50.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 -- MDLF just approved 10 joint projects for FY2018. Preparation of and procurement for joint projects is ongoing Comments ►DLI 6 DLI 6: Steps to improve transparency and predictability in the allocation of Transportation Fee adopted by MoLG (Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value no No No -- Date 20-Jan-2016 20-Sep-2018 20-Sep-2018 -- Not achieved Comments ►DLI 7 DLI 7: Capacity Building Activities delivered by MoLG based on their Annual Capacity Development Plan (Process, 1,500,000.00, 13%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes -- Date 16-Sep-2015 31-May-2019 31-May-2019 -- Achieved Comments 12/10/2019 Page 10 of 10