FOR OFFICIAL USE ONLY Report No: PAD3602 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR43.4 MILLION (US$60 MILLION EQUIVALENT OF WHICH US$15 MILLION EQUIVALENT FROM THE REFUGEE SUB-WINDOW) TO THE REPUBLIC OF BURUNDI FOR THE INTEGRATED COMMUNITY DEVELOPMENT PROJECT FEBRUARY 6, 2020 Social Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2019) Currency Unit = Burundian Franc (BIF) 1,879 BIF = US$1 US$1.38 = SDR 1 FISCAL YEAR July 1 – June 30 Regional Vice President: Hafez M. H. Ghanem Country Director: Jean-Christophe Carret Regional Director: Ede Jorge Ijjasz-Vasquez Practice Manager: Robin Mearns Matthew Stephens, Amadou Alassane, Pierre Olivier Task Team Leader(s): Colleye ABBREVIATIONS AND ACRONYMS AIP Annual Investment Plan AWPB Annual Work Plan and Budget CC Commune Council CCDC Communal Community Development Committee CDD Community-Driven Development CDP Commune Development Plan CERC Contingent Emergency Response Component CoC Code of Conduct CPF Country Partnership Framework CRS Catholic Relief Services DA Designated Account DHS Demographic and Health Survey DRC Democratic Republic of Congo ENPV Economic Net Present Value ERR Economic Rate of Return ESCP Environmental and Social Commitment Plan ESF Environmental and Social Framework ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESRS Environmental and Social Review Summary EU European Union FM Financial Management FAO Food and Agriculture Organization FONIC National Investment Fund for Communes (Fonds National d’Investissement Communal) FP Facilitating Partner GBV Gender-Based Violence GDP Gross Domestic Product GHG Green House Gas GRM Grievance Redress Mechanism GRS Grievance Redress Service HCI Human Capital Index IBM Iterative Beneficiary Monitoring IBRD International Bank for Reconstruction and Development ICT Information and Communications Technology IDA International Development Association IDP Internally Displaced Person IFR Interim Financial Report IOM International Organization for Migration IPPF Indigenous Peoples Planning Framework IPV Intimate Partner Violence ITC Inter-agency Technical Committee LMP Labor Management Procedures M&E Monitoring and Evaluation MIS Management Information System MNP Micronutrient Powder NDP National Development Plan NPV Net Present Value ONPRA National Office of the Protection of Refugees and the Stateless (Office National de Protection des Réfugiés et Apatrides) OP Operational Policy OPCS Operations Policy and Country Services PAD Project Appraisal Document PDLE Local Development for Jobs Project (Projet de Développement Local pour l’Emploi) PDO Project Development Objective PFM Public Financial Management PIM Project Implementation Manual PIU Project Implementation Unit PPSD Project Procurement Strategy for Development PSC Project Steering Committee PWD People with Disabilities RAP Resettlement Action Plan RPF Resettlement Policy Framework RSW IDA 18 Sub-window for Refugees and Host Communities SCD Systematic Country Diagnostic SDG Sustainable Development Goal SEA Sexual Exploitation and Abuse SEP Stakeholder Engagement Plan SME Small and Medium Enterprise SORT Systematic Operations Risk-rating Tool SSA Sub-Saharan Africa STEP Systematic Tracking of Exchanges in Procurement SUN Scaling Up Nutrition UNCDF United Nations Capital Development Fund UNDP United Nations Development Programme UNFPA United Nations Population Fund UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund WB World Bank WBG World Bank Group WFP World Food Program WHO World Health Organization The World Bank Burundi Integrated Community Development Project (P169315) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 9 C. Relevance to Higher Level Objectives............................................................................................. 12 II. PROJECT DESCRIPTION.................................................................................................. 13 A. Project Development Objective ..................................................................................................... 13 B. Project Components ....................................................................................................................... 13 C. Project Beneficiaries ....................................................................................................................... 19 D. Results Chain .................................................................................................................................. 22 E. Rationale for Bank Involvement and Role of Partners ................................................................... 22 F. Lessons Learned and Reflected in the Project Design .................................................................... 24 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 25 A. Institutional and Implementation Arrangements .......................................................................... 25 B. Results Monitoring and Evaluation Arrangements......................................................................... 28 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 30 A. Technical, Economic and Financial Analysis ................................................................................... 30 B. Fiduciary.......................................................................................................................................... 31 C. Legal Operational Policies ............................................................................................................... 33 D. Environmental and Social ............................................................................................................... 33 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 34 VI. KEY RISKS ..................................................................................................................... 34 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 37 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 51 ANNEX 2: Project Approach to Supporting Nutrition ...................................................... 56 ANNEX 3: Procurement ................................................................................................. 58 ANNEX 4: Financial Management .................................................................................. 61 ANNEX 5: Economic and Financial Analysis .................................................................... 69 ANNEX 6: Greenhouse Gas Accounting .......................................................................... 78 ANNEX 7: Gender Analysis ............................................................................................ 80 ANNEX 8: Map .............................................................................................................. 86 The World Bank Burundi Integrated Community Development Project (P169315) The World Bank Burundi Integrated Community Development Project (P169315) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Burundi Burundi Integrated Community Development Project Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P169315 Substantial Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 28-Feb-2020 01-Mar-2026 Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective is to improve nutrition, access to basic services and economic opportunities in the targeted areas. Components Component Name Cost (US$, millions) Page 1 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Commune Socio-economic Development Grants 39.60 Livelihood, Food Security and Nutrition 13.00 Project Management, Monitoring & Evaluation and Capacity-Building 7.40 Contingent Emergency Response Component 0.00 Organizations Borrower: Republic of Burundi Implementing Agency: National Office of Protection of Refugees and Stateless Persons (ONPRA) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 60.00 Total Financing 60.00 of which IBRD/IDA 60.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 60.00 IDA Grant 60.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Burundi 0.00 60.00 0.00 60.00 National PBA 0.00 45.00 0.00 45.00 Refugee 0.00 15.00 0.00 15.00 Total 0.00 60.00 0.00 60.00 Page 2 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Expected Disbursements (in US$, Millions) WB Fiscal Year 2020 2021 2022 2023 2024 2025 Annual 0.67 6.13 11.51 14.30 15.33 12.07 Cumulative 0.67 6.80 18.31 32.61 47.94 60.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Agriculture and Food, Education, Fragile, Conflict & Violence, Social Health, Nutrition & Population Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ High 2. Macroeconomic ⚫ Substantial 3. Sector Strategies and Policies ⚫ Substantial 4. Technical Design of Project or Program ⚫ Moderate 5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial 6. Fiduciary ⚫ High 7. Environment and Social ⚫ Substantial 8. Stakeholders ⚫ Moderate 9. Other ⚫ Substantial 10. Overall ⚫ Substantial Page 3 of 86 The World Bank Burundi Integrated Community Development Project (P169315) COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities Cultural Heritage Relevant Financial Intermediaries Not Currently Relevant NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). Legal Covenants Sections and Description Page 4 of 86 The World Bank Burundi Integrated Community Development Project (P169315) The Recipient, through ONPRA, shall maintain at all times during the implementation of the Project within ONPRA, the Project Implementation Unit (“PIU”) with a composition, mandate, staffing and other resources satisfactory to the Association, all in accordance with the provisions of the Project Implementation Manual. To this end, the Recipient, through ONPRA shall no later than three (3) months after the Effective Date, recruit and maintain through project implementation, key staff; which shall include: a Project coordinator, a procurement specialist, financial management specialist, at least two accountants, social and environmental specialists, an engineer/infrastructure specialist and an internal auditor; all under terms of reference and with experience acceptable to the Association. (Section 1.A.2 of Schedule 2 to the FA). Sections and Description The Recipient shall not later than four (4) months after the Effective Date, establish (including holding the first meeting), and thereafter maintain, throughout the implementation of the Project, an inter-agency technical committee (Technical Committee) with functions, composition and resources satisfactory to the Association. (Section 1.C.1 of Schedule 2 to the FA). Sections and Description The Recipient shall, not later than four (4) months after the Effective Date, and thereafter maintain throughout the period of Project implementation, with terms of reference, mandate, composition and resources satisfactory to the Association, a steering committee. (Section 1.B.1 of Schedule 2 to the FA). Sections and Description In order to ensure the proper implementation of Part 4 of the Project (“CERC Part”), the Recipient shall adopt an operations manual for the CERC Part as shall have been approved by the Association (“CERC Operations Manual”) no later than six (6) months after the Effective Date. (Section 1.I.1 (c) of Schedule 2 to the FA). Sections and Description The Recipient, through ONPRA, shall no later than six (6) months after the Effective Date, recruit and thereafter maintain, a Facilitating Partner or more, as the need may be, in form and substance acceptable to the Association, for the implementation of certain activities to be carried out under the Project, in accordance with the Project Implementation Manual. (Section 1.D.1 of Schedule 2 to the FA). Conditions Type Description Effectiveness The Association is satisfied that the Recipient has an adequate refugee protection framework (Article IV, Section 4.01 (a) of the FA). Type Description Effectiveness The Recipient has prepared and adopted a Project Implementation Manual, with terms and conditions satisfactory to the Association (Article IV, Section 4.01 (b) of the FA). Type Description Disbursement No withdrawal shall be made for payments made prior to the Signature Date or under Category (3), unless and until the Association is satisfied, and has notified the Recipient of its Page 5 of 86 The World Bank Burundi Integrated Community Development Project (P169315) satisfaction, that all of the following conditions have been met in respect of said activities: (i) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the CERC Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (ii) the Recipient has prepared and disclosed all Environmental and Social Standards instruments required for said activities, and the Recipient has implemented any actions which are required to be taken under said instruments, all in accordance with the provisions of Section I.I of Schedule 2 to the Financing Agreement; (iii) the Recipient’s Coordinating Authority has adequate staff and resources, in accordance with the provisions of Section I.I of Schedule 2 to the Financing Agreement, for the purposes of said activities; and (iv) the Recipient has adopted a CERC Operations Manual in form, substance and manner acceptable to the Association and the provisions of the CERC Operations Manual remain or have been updated in accordance with the provisions of Section I.I of Schedule 2 to the Financing Agreement so as to be appropriate for the inclusion and implementation of said activities under the CERC Part. (Section III.B.1.(a) of Schedule 2 to the FA.) Page 6 of 86 The World Bank Burundi Integrated Community Development Project (P169315) I. STRATEGIC CONTEXT A. Country Context 1. Burundi is facing considerable development challenges. According to the Poverty Assessment of 2016 and the most recent national household survey, around 73 percent of the Burundian population is classified as poor.1 This is nearly double the average for Sub-Saharan Africa (SSA) and for low-income countries. In 2018, Burundi ranked 138 out of 157 countries on the Human Capital Index (HCI) and 185 out of 189 countries on the Human Development Index. Burundi suffers from the highest stunting rate in the world (56 percent)2 and dietary diversity is well below minimum acceptable levels.3 Despite having a formal legal system that ensures gender equality, women and girls face significant obstacles, including lower education and health outcomes. Women are also disadvantaged in the labor market where, especially in rural areas, they tend to be confined to lower paid employment. 2. The economy is slowly rebounding since the 2015 political crisis, but the recovery remains fragile . After two years of decline in 2015 and 2016, GDP returned to growth in 2017 and 2018. World Bank projections suggest a positive growth outlook, with moderate growth predicted for the 2019-2021 period. However, due to high population growth, the poverty rate is still expected to rise. Burundi’s recovery efforts have been affected by political instability and weak governance, which have constrained private investment and led to a reduction in international development assistance. 3. To emerge from its long-term, low-level equilibrium, Burundi will need to take parallel action to reduce poverty and address the drivers of fragility. During periods of stability, Burundi has demonstrated that it can achieve robust gains in human and economic capital.4 However, in light of the current socio-political context, the main imperative is to help meet basic human needs and sustain the building blocks of human capital – health, education and nutrition – to prevent the present economic challenges from having inter-generational impacts.5 At the same time, efforts are required to address the drivers of fragility to help promote stability and growth. The World Development Reports of 2011 and 2017 highlight that this can be done by strengthening state-society relations through increased social inclusion and by building legitimate institutions with technical capacity and accountability.6 4. Burundi’s northern and eastern regions are among the poorest parts of the country. The three poorest provinces – Ruyigi, Muyinga and Cankuzo – are located in the north-east and have poverty rates of 85.4, 83.5 and 79.5 percent respectively measured against the national poverty line, well above the national average of 64.9 percent. Suffering from degraded and scarce land resources, high population density and isolation from centers of economic activity, the north- eastern provinces face acute food security and nutrition challenges. Access to basic infrastructure and services is also limited in the country, but particularly in the north-east.7 1 ECVMB, Enquête sur les Conditions de Vie des Ménages Burundais (2017). 2 Demographic and Health Survey (DHS) 2016-2017. 3 About 10 percent of Burundian children under 2 years consume a minimum acceptable diet: Demographic and Health Survey 2016-17. 4 After the 2000 Arusha Peace Accords and democratic elections in 2005, Burundi’s growth accelerated to an average of 4.3 percent annually from 2007 to 2014. Moreover, its Human Capital Index (HCI) value went up from 0.35 to 0.38 between 2012 and 2017. 5 The World Bank Systematic Country Diagnostic identifies ‘ensuring basic needs are met’ as a priority for the coming years. Se e World Bank (2018) Republic of Burundi: Systematic Country Diagnostic. Report No. 122549-BI. 6 See World Bank (2011) World Development Report 2011: Conflict, Security and Development and World Bank (2017) World Development Report 2017: Governance and the Law. 7 Data from the United Nations INFORM vulnerability index shows: (a) on food security, Ruyigi ranks as the most vulnerable province, with Ngozi second and Cankuzo fifth; (b) on infrastructure, Ruyigi ranks number two and Cankuzo third; (c) on education, Muyinga ranks second most vulnerable, Ngozi forth, Ruyigi fifth and Cankuzo seventh; and (d) on access to health, Ruyigi ranks third and Cankuzo forth. Page 7 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 5. Forced displacement, including the presence of refugees, adds another dimension to Burundi’s development challenges. In September 2019, Burundi was host to 85,894 refugees and asylum seekers, nearly all of whom are from the Democratic Republic of the Congo (DRC). Of the refugee population, some of whom have been in the country since the 1990s, 48,269 live in one of the five refugee camps located in four north-eastern provinces (see Figure 1). The remaining 37,625 live outside the camps, mostly in Bujumbura. Eighty percent of the refugees are women and children.8 The refugee presence has had mixed impacts on host communities. On one hand, it has caused environmental damage and depopulation of livestock and fish resources, strained basic services and created competition over basic resources such as water and firewood.9 On the other hand, host communities have also benefited from increased business and trade opportunities.10 In addition to the refugee presence, as of July 2019, there were 109,000 internally displaced persons (IDPs) in the country. Assessments by the International Organization for Migration (IOM) highlight that IDPs face major challenges meeting basic needs and accessing basic services.11 Adding to the forced displacement challenge, large numbers of the more than 400,000 Burundians who fled the country after the 2015 political instability are now beginning to return. Since September 2017, over 79,311 Burundians have been assisted by the United Nations High Commissioner for Refugees (UNHCR) to return, mostly from Tanzania. A similar number is estimated to have come back of their own volition. Available data suggests that returnees face severe difficulties to restore their livelihood.12 Additional inflows of both refugees and returnees are expected in 2020.13 Figure 1: Location and population of refugees in Burundi and number of Burundian refugees in neighboring countries Source: UNHCR. Data as of September 30, 2019. 8 UNHCR (2018). Congolese Situation: Responding to the needs of displaced Congolese and Refugees. Annex – Burundi. Supplemental Appeal. http://reporting.unhcr.org/sites/default/files/2018%20congolese%20Situation%20SB%20-%20Burundi.pdf 9 Three of the four proposed project target provinces (Muyinga, Ruyigi and Cankuzo) are among the most heavily environmentally degraded in the country (World Bank, 2018). 10 Refugees sell food assistance products that are less common in the host community such as rice and oil, in return for fresh vegetables (cassava and beans) (WFP/UNHCR 2014). 11 See IOM May 2019, “Overview of the Humanitarian Situation of Internally Displaced Persons in Burundi.” 12 See UNHCR 31 October 2019. “Voluntary Repatriation of Burundian Refugees” at data2.unhcr.org/en/documents/download/72174 13 For instance, UNHCR contingency planning is for the refugee population to increase to up to 110,000 in 2020. Page 8 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 6. Against this context, the government has launched an ambitious National Development Plan 2018-2027 (NDP) to address the country’s development challenges. The NDP aims, among other things to modernize primary sector production, promote the agri-food industry, increase infrastructure investments, and protect the environment. The NDP also highlights the importance of strengthening local governance to bring service delivery closer to the people. At the heart of the NDP is a focus on rural areas, where more than nine million people live, and for which the government wishes to allocate 60 percent of all resources of the Plan over the next ten years. 7. In 2018, as part of the eligibility process for access to funds under the IDA18 sub-window for refugees and host communities (RSW), the government prepared a strategy for a development approach to support refugees and host communities.14 The key features of the strategy are: (a) support area-based development approaches that will benefit both refugees and host communities and, in so doing, foster peaceful interaction between the two groups; (b) support agricultural livelihood for all; and (c) promote refugee self-reliance. The strategy also includes a commitment to guarantee full freedom of movement for refugees, consistent with Law 1/32 of November 13, 2008 on Asylum and Protection of Refugees in Burundi. The strategy sets out two important points to guide government and international community action. Firstly, it recognizes that humanitarian assistance must be complemented by development responses to address instances of protracted forced displacement. Secondly, the strategy identifies that the development response should integrate the needs of refugees and host communities, both of whom face similar challenges of inadequate access to basic services and insufficient livelihood opportunities. 8. The legal and protection environment in Burundi is considered conducive for a development response to forced displacement. The country is a signatory to the 1951 Refugee Convention and 1967 Protocol. Law 1/32 of 2008 on Asylum and Protection of Refugees is consistent with international law. The World Bank, in consultation with UNHCR, has confirmed that Burundi’s refugee protection framework is adequate.15 B. Sectoral and Institutional Context 9. The proposed Integrated Community Development project (known in Kirundi and referred to hereafter in this document as “Turikumwe” or “we are together”) adopts a multi-sector, area-based approach to address key development challenges in the poorest areas of Burundi. The project will support the government’s existing commune development planning process to help communities – including refugees where present – to analyze development challenges and identify solutions. The approach seeks to strengthen the legitimacy of government institutions by building technical capacity for participatory development processes and engaging communities directly in planning and decision-making. Project financing will tackle the alarming rates of food insecurity and malnutrition while addressing service delivery and infrastructure gaps faced by the poor. Turikumwe will also help Burundi to formulate development responses to forced displacement by supporting the social and economic inclusion of refugees in the five camps in the country, while at the same time targeting areas that include a high concentration of IDPs and returnees. The section below describes some of the key challenges in the target sectors for the proposed project. Agriculture, Food Security and Malnutrition 10. Almost 90 percent of Burundians live in rural areas and depend largely on small-scale, rainfed subsistence farming. Land density is high, with the average land size being 0.4 ha per household. Productivity is low, due to 14Ministry of Finance, Budget and Privatization (2018) Stratégie du Burundi pour l’appui aux réfugiés et aux communautés hotes. 15The initial assessment is in the IDA18 refugee sub-window Board consultation Note on eligibility for Burundi (November 2018). The ongoing accuracy of this assessment was confirmed with UNHCR in January 2020. Page 9 of 86 The World Bank Burundi Integrated Community Development Project (P169315) inadequate levels of improved inputs/technology and mechanization, poor skills among farmers, outdated agricultural practices, and poor soils/land degradation. Along with limited possibilities for other income-generating activities, this leaves Burundian households highly exposed to agricultural and other risks. It also contributes to overall low levels of domestic food production, which together with the low incomes that constrain demand for imported food, limits food availability in the country. This challenge is exacerbated by high rates of population growth that will see the country’s current population of 11 million double as early as 2040. Women play a critical role in agriculture value chains in Burundi, dominating land preparation, planting, cultivation and harvest. Although women account for 62 percent of the work hours, women have weaker access to land, productive inputs, formal credit, inclusion in agricultural associations, as well as formal land inheritance rights.16 11. Malnutrition is high in the north-eastern provinces, where 52-66 percent of children under five are stunted.17 Only about 16 percent of Burundian children have access to a minimum acceptable level of dietary diversity. Similarly, the baseline survey for the Catholic Relief Services (CRS) Amashiga project showed that women of childbearing age had an average dietary diversity score of 3.7 food groups (out of 9 recommended by the World Health Organization). While acute malnutrition averages five percent in children under five, food insecurity in terms of inadequate access to sufficient kilocalories (kcal) is prevalent, especially as a result of seasonal variations in food availability and negative impacts of production risks. A 2016 report identified the main drivers of stunting in Burundi as directly or indirectly related to diet. Access to clean water and sanitation facilities, as well as biomass fuel use were also identified as important factors (see Figure 2). Furthermore, large households, with a fertility rate of 5.5 children per woman, contribute to food insecurity and malnutrition even before children are born.18 Figure 2: Stunting cases among two-year old attributable to individual risk factors in Burundi Teenage motherhood and short birth 3.8 intervals Maternal nutrition and infection 31.4 Child nutrition and infection 42.4 Water, sanitation and biomass fuel use 56.6 Fetal growth restriction and preterm birth 77.5 0 10 20 30 40 50 60 70 80 90 Attributable stunting cases (thousands) Source: Burundi case study for Danaei, et al. (2016). Risk factors for childhood stunting in 137 developing countries: a comparative risk assessment analysis at global, regional, and country levels. Access to basic services and socio-economic infrastructure 12. Burundi has made good progress in the health and education sectors over the last fifteen years, but gaps remain with respect to access to basic services and public infrastructure. Just nine percent of the population has access to 16 Victoria Rames, Clémence Bununagi, and Caritas Niyonzima (2017) USAID/Burundi Gender Analysis Report. Prepared by Banyan Global. 17 56 percent of children under 5 years of age in Burundi are stunted, with 61 percent in Ngozi, 66 percent in Muyinga, 59 percent in Cankuzo, and 52 percent in Ruyigi: DHS 2016-17 18 Data as of 2017. See https://data.worldbank.org/indicator/sp.dyn.tfrt.in Page 10 of 86 The World Bank Burundi Integrated Community Development Project (P169315) electricity, among the lowest in the world.19 Burundi is highly dependent on road transport, which carries 90 percent of goods in the country, yet the majority of roads are under community management and are in poor condition.20 Sixty- one percent of people have access to at least a basic drinking water source and 46 percent to at least a basic sanitation facility.21 Despite significant progress in the health sector, in the 2016-17 DHS under-five mortality was estimated at 78/1,000 (slightly higher than the SSA average) and maternal mortality at 392/100,000. Burundi has made important gains in the education sector since 2005, but elementary completion rates are still low – only 44 percent of children enrolled in grade 1 will reach grade 6. And while learning outcomes have improved, there is still room for improvement.22 Local Governance and Decentralization Figure 3: Burundi’s Administrative Structure23 13. Since 2005 the government of Burundi has embarked on a process of decentralization to strengthen social cohesion, improve local governance, and promote access to basic infrastructure and service delivery. The government’s National Decentralization Strategy positions citizens as active subjects in decision- making over their own development, including by promoting ‘participation of all the population in defining and implementing economic and social development policies in their localities.’24 14. The 2005 Commune Law established the commune as the main level of decentralized government. Communes are autonomous decentralized entities managed by an elected Commune Council. Among other things, communes have the power to prepare a Commune Development Plan (CDP) and annual budget. There are 119 communes and 2,908 collines (or “hills”) – including 97 urban neighborhoods in Bujumbura Marie – across Burundi’s 18 provinces. 15. Burundi’s decentralization experience has confronted a number of challenges. Assessments have identified the key issues as: (a) low mobilization of local resources and minimal central transfers; (b) ongoing centralized decision- making; (c) limited downward accountability of the commune leadership to the people; and (d) technical capacity limitations at the commune and colline levels. Greater efforts are also required to promote genuine citizen participation in planning, including for members of marginalized groups such as indigenous peoples (batwa), people with disabilities, women, youth, the elderly and those affected by forced displacement.25 19 Data estimate from Tracking SDG7: the Energy Progress Report 2018. 20 IDA (2015) Project Appraisal Document for Infrastructure Resilience Emergency Project. Report No: PAD1292 21 Data from the WHO/UNICEF Joint Monitoring Programme for Water Supply, Sanitation and Hygiene, accessed through the World Bank data bank at https://data.worldbank.org/country/burundi 22 For instance, only three percent of second grade children meet minimum reading fluency standards: ACER (March 2014). The Early Grade Reading Assessment (EGRA 2012): Assessing children's acquisition of basic literacy skills in developing countries. Assessment GEMs no.2. Melbourne: ACER 23 Extracted from Chemouni, B. (2016) The Politics of State Effectiveness in Burundi and Rwanda: Ruling Elite Legitimacy and the Imperative of State Performance. PhD Thesis, London School of Economics, April 2016. 24 This extract is from the 2009 policy and is cited in Gaynor, N. (2014) “Bringing the Citizen Back In: Supporting Decentralisa tion in Fragile States – A View from Burundi.” Development Policy Review, 2014, 32 (2): 203-218, 207. The policy was updated in 2019. 25 See World Bank (2014). Republic of Burundi Fiscal Decentralization and Local Governance . World Bank: Washington DC. Page 11 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 16. The government has identified the commune development planning process as the centerpiece of its area- based development approach to refugee inclusion. Despite the challenges, decentralization offers opportunities to strengthen local governance, enhance citizen engagement and promote refugee inclusion. Communes across the country – often with help from development partners – are preparing new CDPs to align with the NDP and the Sustainable Development Goals (SDGs). In recent years, the central government has also been increasing commune budgets for development through the National Fund for Communal Investment (FONIC).26 A 2014 World Bank assessment highlighted the importance of strengthening participatory local governance to build social cohesion and trust in the state in Burundi.27 C. Relevance to Higher Level Objectives 17. The proposed project is closely aligned with the Country Partnership Framework (CPF) for FY19-23.28 The CPF’s two pillars of ‘building human capital and inclusion’ and ‘strengthening foundations for economic and social resilience’ are built on a foundation of stronger governance, including citizen engagement and social inclusion. Turikumwe’s focus on agriculture, rural livelihood, food security and nutrition and basic services will support human capital development and community resilience. The project’s support for more inclusive local governance is intended to strengthen citizen engagement and the legitimacy of state institutions, an essential pre-condition for Burundi to escape its fragility trap. 18. Turikumwe would also directly contribute to the World Bank Group’s (WBG) twin goals of eliminating extreme poverty and boosting shared prosperity. Beneficiaries and target provinces will cover some of the poorest people and areas in the country. The proposed project will invest in basic services, livelihood and nutrition through a participatory approach that will bring together national and subnational authorities, host communities and refugees and aligns with the government’s decentralization policy and the National Development Plan 2018-2027. 19. By strengthening human capital, addressing drivers of fragility and promoting digital platforms, the proposed project is consistent with the World Bank Group Africa strategy. By combating malnutrition and stunting and enhancing access to health and education services, project activities align with the Africa strategy focus on human capital. The project will also promote gender equity by providing access to livelihood opportunities and finance to female entrepreneurs. The project’s participatory planning approach will give communities and the forcibly displaced a say in the use of development resources. Combined with objective, evidence-based geographic targeting, this aligns with CPF recommendations on addressing drivers of fragility, including “help reinforce trust between the government and the population” and “continue to provide the basic needs of the Burundi people, including the most vulnerable, the displaced and the returnees”.29 The proposed project will also support digital monitoring platforms and digital financial services, including electronic payment systems for grants under component two. 20. The proposed project supports the objectives of the IDA18 sub-window for refugees and host communities (RSW). Consultation with the World Bank Board of Directors, finalized in November 2018, has endorsed the WBG management opinion that Burundi meets the eligibility criteria for the RSW. The project design is consistent with the RSW objectives of: (a) mitigating the shocks caused by an influx of refugees and creating social and economic development opportunities for refugees and host communities; and (b) facilitating sustainable solutions to protracted refugee situations, including through the sustainable socio-economic inclusion of refugees in the host country. The 26 In 2019, the amount provided was 570 million Burundian francs (US$305,000). 27 See above, n. 18. 28 World Bank (2019) Country Partnership Framework for the Republic of Burundi FY2019-2023. Report No: 122878-BI. 29 Ibid, page 14. Page 12 of 86 The World Bank Burundi Integrated Community Development Project (P169315) proposed project will also be the main instrument for implementation of the government’s April 2018 strategy for refugee inclusion and development opportunities for host communities. II. PROJECT DESCRIPTION A. Project Development Objective PDO Statement The Project Development Objective is to improve nutrition, access to basic services and economic opportunities in the targeted areas. PDO Level Indicators 21. The following key indicators will be used to track progress toward the PDO. All data will be disaggregated by gender and status as refugee or host community member: • Dietary diversity among targeted beneficiaries (females of reproductive age and children 6-23 months) • Microenterprises still in business 12 months after receiving the last disbursement of project investment grant • Beneficiaries with improved access to social and economic services and infrastructure B. Project Components 22. Turikumwe is a local development project that supports access to services, rural livelihood and food security and nutrition in a context of poverty and forced displacement. The project will target communes in the four provinces which host refugee camps. While most beneficiaries will be Burundian nationals, including IDPs and returnees (who will benefit as members of the host community), the project’s multi-sector, area-based approach will support both host communities and refugees. 23. Recognizing that refugees and host communities face much the same development challenges, the main project strategy is to incorporate refugee concerns into the government’s regular commune development planning process . The project also offers livelihood opportunities to refugees and host community members, which include returnees and IDPs. The project’s integrative, area-based approach is consistent with the government’s April 2018 strategy on refugee inclusion and development opportunities for host communities. 24. Beneficiaries will be supported through investments in socio-economic infrastructure and agricultural and non- agricultural livelihood. Investments will be possible in and outside camps, however, consistent with the World Bank’s long-term development approach, there will be a preference to support economic activity and public services outside the camps that can be used by refugees and host communities. Subprojects will be identified through a community- driven, bottom-up planning process fully aligned with the CDP process. 25. The project will build government capacities on participatory development and long-term development approaches to forced displacement. Turikumwe will support the government’s decentralization policy by strengthening commune capacity for inclusive and participatory planning and procurement. At the same time, the project will build government skills and knowledge on long-term development approaches to forced displacement that incorporate the needs of refugees, IDPs and returnees. Page 13 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 26. The participatory development approach is expected to strengthen social cohesion in the target areas. Turikumwe will facilitate inclusive planning through the CDP process, working with Commune and Colline Councils. This will ensure active participation by marginalized groups in the formulation of CDPs. Consultations conducted during project preparation identified perceptions that refugees enjoy better access to humanitarian and development assistance as one of the main sources of tension between host communities and refugees. The project approach will address this by ensuring equitable access to project benefits for both groups and by supporting joint planning and decision-making on subprojects to be financed by the operation. 27. Consistent with the CPF, the project will be grounded on strong citizen engagement. Subprojects under component one and grants under component two will be identified through demand-driven processes. Facilitation will ensure that marginalized groups are engaged in the planning and decision-making steps. Government will present final CDPs and advise communities which subproject proposals will be financed under the project in order to close the feedback loop. Participatory monitoring will be a feature of the project, which will pilot Iterative Beneficiary Monitoring (IBM) in Burundi. IBM is an iterative monitoring tool that gathers regular data from beneficiaries at low cost to improve project efficiency and increase beneficiary engagement and satisfaction. 28. Gender/Gender-Based Violence (GBV). Burundi has a progressive legal and policy framework for gender equity, including the National Gender Policy 2012-2025. However, while a 2017 gender analysis highlighted a number of gains, several important gaps on gender equity were identified that will affect the project, including: (a) limited access to credit and better job opportunities for women; (b) exclusion of women from planning and decision-making for development; (c) inequitable access to assets (for instance, only 17 percent of landowners are women); and (d) more nutritious food is often allocated to male family members.30 The assessment recommended strengthening women’s participation in planning, enhancing financial inclusion for female entrepreneurs and broad-based awareness raising on the importance of nutrition for women. In the refugee camps, female refugees generally have lower educational attainment and fewer income-generating opportunities. Women and girls are vulnerable to GBV, which constrains their ability to improve household nutrition, health, participate in the labor market and engage in decision-making on development. Nearly half of Burundian women report having experienced physical or sexual intimate partner violence, higher than average for SSA. The project will adopt an integrated approach to address these concerns, focusing on economic empowerment, promoting participation in decision-making and GBV response and prevention. Some of the activities that will contribute to addressing gender gaps and GBV risks are: (a) dedicated roles for women in the planning and leadership of project activities, including consultations with women and girls throughout the span of the project, and including women within the community committees for component one; (b) equal access to economic opportunities for women and men through finance for entrepreneurs under component two; (c) expanded access to social services – health, education and water supply – the design of which will be informed by women and girls to consider ease and security of access; (d) targeted campaigns for men and women on good nutrition practices, including the provision of nutrition supplements to pregnant women; (e) raising awareness on GBV services through the project communications strategy; (f) capacity- building for project staff on gender equality, GBV prevention and response; (g) encouraging formation of associations of women entrepreneurs to enhance their collective voice and agency; and (h) ensure GBV requirements are incorporated into construction bid documents and contracts. 29. Climate change. The development challenges faced by refugees and host communities are likely to be compounded by climate change. Mean annual temperatures are expected to increase by 1.9 degrees Celsius by 2050. This is expected to lead to more prolonged and intense dry periods and more extreme rainfall events. The CPF has identified that climate change is likely to affect rural incomes in Burundi due to decreased agricultural output and food 30 Victoria Rames, Clémence Bununagi, and Caritas Niyonzima (2017) USAID/Burundi Gender Analysis Report. Prepared by Banyan Global. Page 14 of 86 The World Bank Burundi Integrated Community Development Project (P169315) security and reduced water availability. Climate change risks will be mitigated through the project by: (a) ensuring infrastructure is constructed in an energy-efficient manner; (b) providing access to water using climate-friendly technology, e.g., solar panels for water pumping; (c) considering landslide risks in the location of infrastructure; (d) supporting climate-smart agricultural practices; and (e) promoting non-farm livelihood options that reduce dependence on natural resources. Measures will be undertaken to reduce the energy consumption of education and health infrastructure financed by the project, through for instance: (a) thermal insulation of walls/ceilings; (b) efficiently- designed openings (windows and access doors), which allow better natural ventilation and reduce the need for artificial lighting; (c) energy-efficient lighting (e.g., use of LED bulbs); and (d) energy-efficient appliances and equipment. 30. The project will comprise four components, as follows. Component 1: Commune Socio-economic Development Grants (SDR28.7 million/US$39.6 million equivalent) 31. This component will strengthen the government’s commune development planning process. Support will be provided to communes and communities to develop participatory CDPs that include refugees and marginalized groups. Grants will be provided to finance subprojects at the commune level to improve access to services and socio-economic infrastructure. This will include investments in communes hosting refugee camps to address any negative impacts of the refugee presence. In line with the project development objective and to strengthen synergies between components one and two, subprojects supporting food security and nutrition will be prioritized (e.g., clean water systems, health facilities and equipment, warehouses for food storage). The demand-driven approach will provide the project with flexibility to adapt to changing conditions and to be tailored to the specific needs of the different target communes. The component comprises two-subcomponents. Sub-component 1.1: Facilitation and capacity-building (US$6.6 million equivalent) 32. Consistent with the government’s decentralization policy, this sub-component will support the CDP process in the target communes. Specifically, under this sub-component, the Project Implementation Unit (PIU) will hire a Facilitating Partner (FP), which will establish local facilitation teams to: (a) provide technical assistance to commune and colline councils to prepare new or update existing CDPs and associated Annual Investment Plans (AIPs); (b) mobilize communities, including refugees where present, to contribute meaningfully to the bottom-up planning process for the CDP through participatory assessments; (c) support communes on subproject implementation, including procurement and environmental and social screening; and (d) help to establish community management committees in each target colline to support subproject implementation, monitoring and operations and maintenance. 33. The FPs will work with Commune Councils to ensure that marginalized groups, including persons with disabilities (PWDs), batwa, youth, the elderly, women, people with albinism and the forcibly displaced – refugees, returnees and IDPs – are incorporated into the planning and decision-making processes and benefit equitably from project activities. Participation of these groups – and their perception of the inclusivity of the process – will be tracked through the project monitoring and evaluation system. Sub-component 1.2: Commune socio-economic development grants (US$33 million equivalent) 34. This sub-component will finance climate-resilient socio-economic infrastructure subprojects identified in the CDPs. The PIU will make a per capita allocation of funding available for use in each target commune.31 Population 31 The initial figure is $15/capita, based on the dual considerations of absorptive capacity and the need to generate impact. Page 15 of 86 The World Bank Burundi Integrated Community Development Project (P169315) numbers have been calculated including Burundian nationals and refugees. Financing will be provided over four annual funding cycles, commencing in year two of project implementation. It is expected that subprojects would comprise a mix of smaller colline-level and larger, commune level investments. Communes will identify subprojects through the CDP process and manage procurement, but the PIU will handle finances and make contractor payments. 35. Financing under this sub-component will be used to support access to services and socio-economic infrastructure, including: (a) construction, rehabilitation and/or upgrading of education and health facilities; (b) water supply and sanitation systems;32 (c) rehabilitation and/or upgrading of rural roads and bridges; (d) off-grid electrification; (e) construction or upgrading of market facilities; (f) activities to address the environmental impact of refugee camps, including watershed management; (g) production or storage facilities; and (h) sport and culture activities. Support for health and education facilities can include equipment and facilities such as furniture, teaching materials, medical equipment, etc. The project will have a preference for rehabilitation and upgrading of existing facilities over construction of new, but both will be possible depending on community priorities. All buildings will be designed to ensure accessibility for PWDs. Infrastructure works will incorporate measures to prevent sexual exploitation and abuse (SEA), such as Codes of Conduct with language on GBV/SEA, a gender-responsive grievance redress mechanism (GRM), and training for workers and community members. 36. Collines and communes will be permitted to pool resources to submit larger inter-colline or inter-commune proposals (e.g., inter-commune road upgrading, marshland redevelopment, etc.). 37. Consistent with the CDP process, commune councils will make the final decision on which subprojects will be financed by the project. These decisions will be guided by the selection criteria described in Table 1 below. Table 1: Selection Criteria for subproject selection under Component One Summary Eligibility criteria Consistent with CDP, based on The subproject has been identified by communities as included in the CDP. community priorities. The project will help communes to update their CDPs if necessary. Activities that support food security Investments that support food security and nutrition will be given priority. and nutrition. This could include support for health, clean water and sanitation, post- harvest facilities, food and seedlings storage, connective infrastructure, etc. Shared benefits for host community The subproject will benefit both the host and refugee communities (where and refugees (where present). present). Addresses gender concerns and Gender and GBV concerns to be mainstreamed through the project design supports marginalized groups. (e.g., provide lighting for public facilities, build markets with child care facilities to encourage women’s participation). Infrastructure to be accessible to PWDs and to meet needs of marginalized groups. Training to communes/groups on gender equality. Long term sustainability. The government – with support from humanitarian and development partners – guarantees operations and maintenance with budget provision and staffing to ensure subproject sustainability. No significant adverse social or The proposed subprojects do not have potential adverse social and environmental impacts. environmental impacts. Community committee formed/trained Communes and/or communities need to establish committees to oversee to oversee implementation and O&M. implementation and operations and maintenance. 32The project will support small-scale rural, community-based water systems, including either new systems or rehabilitation of existing systems. All systems will originate from Burundian watersheds and will not use water from or risk polluting international waterways. Page 16 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Preference to upgrade and/or While improving existing facilities is the preference, both rehabilitate existing facilities over upgrading/rehabilitation and new construction are permitted. construction of new. 38. Community labor. The project will encourage contractors to utilize local labor for infrastructure construction or rehabilitation wherever possible. Opportunities will be made available equally to men and women and refugees (where present) and host community members. Contractors should consult with women and refugees on risks related to participating in community labor as well as measures to mitigate these risks. 39. Line agency coordination. Given the multi-sector nature of the project, the project will coordinate closely with relevant line agencies (e.g., education, health, agriculture, energy, environment, etc.) to ensure investments align with national standards and that necessary human and financial resources will be made available to maximize infrastructure investments. Coordination will take place at the national level through the inter-agency Project Steering Committee (PSC). Crucially it will take place at the commune level, where deconcentrated line agency staff participate in the Communal Community Development Committee (CCDC), a consultative body which advises the Commune Council on commune development and provides technical expertise on development planning. Component Two: Livelihood, Food Security and Nutrition (SDR 9.4 million/US$13 million equivalent) 40. Component 2 will employ a multi-pronged approach to enhance food security and nutrition by generating income, increasing food production and supporting behavior change for better nutrition. The component will also support self-reliance for refugees and host communities by promoting livelihood opportunities. Sub-component 2.1: Support to income-earning opportunities (US$10 million equivalent) 41. This sub-component will support the government’s commitment to improve food security, reduce malnutrition and enhance self-reliance of refugees. It will support refugee-host community integration by facilitating joint enterprise activities in and around refugee camps, as well as associations of food producers throughout the project area. Sub- component activities will be organized around three windows: • Window A: Microenterprise development. Recognizing the particular challenges refugees have in accessing finance (e.g., lack of collateral), the window will be available to camp-based refugees. To ensure equity and prevent social jealousy, it will be available for host community members in the collines directly adjacent to the camps. A competitive system will award matching grants of up to US$2,000 to individual beneficiaries to start- up or scale-up priority businesses. The project will finance up to 80 percent of investment costs with the balance to be provided in-kind and/or cash by the proponent. Funding will be allocated equally to women and men (50- 50), with a target of 20 percent for youth. Additional incentives will be provided to proponents who are also able to access financing for their business proposal through a financial institution. The portfolio is expected to include a mix of trade (e.g., agricultural and non-agricultural products), services (e.g., food preparation, hair salons, phone charging stations, sewing), and small agriculture (e.g., small livestock, agriculture on lattice, water harvesting for irrigation). The process will be highly decentralized with the communities themselves identifying their priorities, selecting the beneficiaries and implementing the sub-projects with the help of the FP. • Window B: Support to associations and cooperatives. While Window A will only be implemented in collines either hosting or near the refugee camps, Window B will be open to applications from the entire project area. It will provide up to US$20,000 in matching grants to cooperatives or producer associations of ten members or more Page 17 of 86 The World Bank Burundi Integrated Community Development Project (P169315) and a minimum of two years of operation for income-generation activities and to increase the availability of nutritious food. Grant award decisions will be made by the PIU competitively at the commune level to ensure consistency with CDPs and synergies with component one investments, after review by the PIU for consistency with the Project Implementation Manual (PIM) and compliance with fiduciary and environmental and social standards. If demand for sub-project financing overwhelms the communes, a selection committee will be established at the national level for additional screening. As per Window A, additional funding will be made available for proposals that have also been able to secure loans from financial institutions.33 This will leverage scarce public resources and increase sustainability. In each province, 50 percent of beneficiaries should be women and/or youth. Twenty-five percent of associations that are supported in the communes hosting camps should have either a mixed membership of host communities and refugees or employ refugees. The PIM will define the required legal status of these associations. The project will finance up to 80 percent of the associations’ investments and costs, with small additional financing of up to five percent for groups that have mixed membership of host communities and refugees, a high participation of women, participation by other groups such as batwa, and/or projects that have a high positive impact on resilience, nutrition or the environment. The type of investments expected for this window include: introduction of high-nutritious food (including bio-fortified crops, fruit, vegetables and fungi), the organization of community gardens, fish ponds, hatcheries, nurseries, small post-harvest activities (drying, storage, transformation) or livestock, depending on community priorities. • Technical Assistance. Facilitating Partners (FPs) will be contracted to provide support to the implementation of this sub-component These FPs will, among others, help target communities with the identification of priorities for investments; provide training on and support to business plan preparation and sub-project implementation to beneficiaries; facilitate a fair, transparent and inclusive selection process; support the PIU with the supervision of sub-projects in terms of compliance with Environmental and Social Framework (ESF), fiduciary and monitoring and evaluation (M&E) aspects. FPs will also provide training to the beneficiaries on an array of topics, including basic accounting and governance (in the case of producer associations). Sub-component 2.2: Improving Nutrition (US$3 million equivalent) 42. This sub-component will support the government’s commitment to improve nutrition in the project areas. Specifically, the project will finance: (a) technical assistance and training for refugees and host communities, as well as the associations that are financed under sub-component 2.1, to promote improved diets and nutrition behaviors through nutrition, hygiene, and food safety knowledge, cooking and preservation demonstrations, and the training of Parents Lumieres (local lead parents trained to promote good nutrition practices in their communities); (b) inputs and technical assistance to set up kitchen gardens of high-nutritious food products in the camps and immediate host community areas; and (c) provision of micronutrient powder (MNP) and folic acid for pregnant women and children under two years of age. 43. Activities under this sub-component build on models that have been fully tested in Burundi and will, in part, replicate the community nutrition services packages planned under the World Bank-financed Investing in Early Years and Fertility in Burundi Project (P165253 - Nkuriza). Close operational coordination will be established with the Nkuriza project through regular meetings of the respective PIUs and through the participation of the government’s Scaling up Nutrition (SUN) secretariat in the steering and technical committees of each project. 33Microenterprises which secure funding from financial institutions will receive an additional dollar above the standard maximum of US$2,000 for each dollar borrowed up to $500, for a maximum matching grant of US$2,500. Similarly, under Window B, cooperatives or producer associations that secure funding from financial institutions will receive an additional dollar above the standard maximum of US$20,000 for each dollar borrowed for the sub-project, for up to US$5,000, for a total maximum matching grant of US$25,000. Page 18 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Component Three: Project Management, Monitoring and Evaluation and Capacity-Building (SDR5.3 million/US$7.4 million equivalent) 44. This component will strengthen the technical and administrative capacity of the government to manage the project. It will cover the costs of project management, implementation and supervision, including: (a) procurement and financial management (FM); (b) Monitoring and Evaluation (M&E); (c) progress reporting; and (d) compliance with environmental and social standards. It will also support the operational costs of the Project Steering Committee (PSC) and Technical Committee. 45. Stakeholder engagement. The component will support stakeholder engagement, including a grievance redress mechanism and a strategic communications plan. In addition to raising awareness of the project, the communications plan will: (a) ensure that communities hosting camps understand that the project is an effort by the government to explicitly address their concerns over the refugee presence; (b) raise awareness of refugees’ right to freedom of movement among stakeholders, including local authorities and refugees themselves; and (c) advocate for refugee inclusion and build understanding among key constituents of the contribution refugees make to the local economy. 46. Capacity-building. Funding will be allocated in this component for capacity-building for the implementing agencies and different committees involved in project management. This will include an allocation for technical assistance and knowledge exchange on development approaches to forced displacement and refugee inclusion. Possible activities include: (a) formulation of an economic inclusion strategy for refugees and host communities; and (b) support to government on how to integrate refugees into national health and education systems. The precise activities will be identified during implementation and incorporated into a capacity-building plan. Component 4: Contingent Emergency Response Component (CERC) 47. Under the CERC, in the event of an eligible crisis or emergency, funds may be reallocated from other components of the project. This component, if activated, would finance rapid response measures and early recovery activities to address disaster, emergency and/or catastrophic events at the community level. This would be achieved by providing community grants implemented following a set of simplified procedures set out in a special project Contingent Emergency Response (CER) Manual. Applicable national and World Bank emergency response procedures for procurement and disbursements would be applied. The acceptance by the World Bank of the CER Manual would be a condition of disbursement under this component. C. Project Beneficiaries 48. Turikumwe will operate in the four provinces that host the five refugee camps in Burundi. All 28 communes in the target provinces – Cankuzo, Muyinga, Ngozi and Ruyigi – were ranked using a composite needs index constructed with data on poverty, malnutrition and the impact of forced displacement.34 Figure 4 demonstrates that the four project provinces rank among the highest in the country against these three variables. 34Index data sources: (a) Poverty: RGPH 2008 and ECVMB 2014 (Burundi Poverty Assessment 2016); (b) Malnutrition: ISTEEBU/WFP/ UNICEF report 2019; and (c) Forced displacement: (i) IDPs - IOM-DTM (May 2019); (ii) Refugees – UNHCR (April 2019); and (iii) Returnees: UNHCR (July 2019). Population figures are from UNFPA/ISTEEEBU 2018. In line with the PDO, the index was weighted 40 percent for poverty and malnutrition and 20 percent for the impact of forced displacement. Page 19 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Figure 4: Poverty rate, impact of forced displacement and malnutrition per commune 49. Based on the available budget, Turikumwe will be implemented in the 21 highest ranked communes under the needs index, including the four communes that host the refugee camps. Using an area-based approach, the public goods under component one will benefit an estimated host community population of up to 2,130,430 and the camp- based refugee population of 48,269.35 Table 2 lists the target provinces and communes and the population in each, plus the camp-based refugee population that will be served by the project. Depending on project performance and government demand, the project could potentially be scaled up in the future to cover additional communes in the four provinces or new provinces. This would most likely require additional financing. Table 2: Target commune and refugee population Target Provinces Target Communes Population Refugee Population Camp(s) Population Cankuzo 1. Cankuzo 70,123 Kavumu 16,895 2. Mishiha 73,596 3. Gisagara 83,790 4. Cendajuru 47,445 Muyinga 5. Gasorwe 119,861 Kinama 7,805 6. Buhinyuza 79,639 7. Gashoho 96,632 8. Butihinda 141,629 9. Muyinga 202,054 10. Mwakiro 63,550 11. Giteranyi 221,061 Ngozi 12. Kiremba 136,434 Musasa 8,758 13. Nyamurenza 83,615 35The actual target beneficiary population in the results framework will be based on an estimated number of subprojects to be completed and collines to be covered by the project. Page 20 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 14. Mwumba 90,020 15. Tangara 110,567 Ruyigi 16. Butezi 57,268 Bwagariza 9,543 Nyankanda 5,268 17. Kinyinya 77,528 18. Bweru 54,819 19. Gisuru 145,387 20. Butaganzwa 92,632 21. Ruyigi 82,780 TOTAL 2,130,430 48,269 50. Component two activities will directly benefit approximately 25,000 individuals in the refugee camps and the host communities. Indirectly, the project will benefit over 100,000 people as the income-generation and nutrition activities will support their entire household. The general population is also expected to benefit from increased economic activities and jobs, and from the improved availability of nutritious and safe food. 51. Window A of sub-component 2.1 will support individuals in and around the camps with technical assistance and micro-grants to start or scale up income-generating activities. Priority will be given to the poor and to vulnerable groups (such as batwa, women and youth). Window B will benefit producer associations, primarily made up of smallholders with 0.4 ha on average who typically produce staple food crops such as beans, maize, sweet potatoes, cassava, banana and sorghum. Some of these smallholders also have small ruminants and poultry. They will receive direct support in the form of technical assistance and investment grants to start or scale up income generating activities. 52. Sub-component 2.2 will provide nutrition services (knowledge and MNPs) and investments (kitchen gardens) to an estimated 14,000 families with pregnant women and/or children under two years of age. Further, an estimated 20,000 women will receive folic acid supplements. 53. The benefits to host and refugee communities across the project components are presented in Table 3. Table 3: Beneficiaries of Project Investments Component Subcomponent Beneficiaries Component 1. Subcomponent 1.1 Commune councils and community committees will gain from Commune Socio- Facilitation and enhanced capacity for local planning, procurement, monitoring, and economic Capacity-building operations and maintenance for socio-economic infrastructure. Development Grants Subcomponent 1.2 People living in the target communes (including refugees) will Commune Socio- benefit from improved public infrastructure that will enhance economic access to and quality of basic services. Investments in culture and Development Grants sport will build social cohesion. Road rehabilitation/ upgrading will support access to economic opportunities. Market facilities will enhance trade. Community members will earn income from labor opportunities for infrastructure subprojects. Component 2. Subcomponent 2.1 Refugees and host communities adjacent to camps, and producer Livelihood, Food Support to income- groups throughout the target communes, will benefit from technical Security and Nutrition earning and investment support to enhance livelihood, increase the opportunities availability of local services and products, and of nutritious food. Subcomponent 2.2 Households in the camps and host communities with pregnant Improving Nutrition women and/or children under two will benefit from nutrition Page 21 of 86 The World Bank Burundi Integrated Community Development Project (P169315) training and inputs for kitchen gardens. Pregnant women and children under two will receive nutrition supplements. Beneficiaries of investment grants for food production/handling will benefit from nutrition and food safety training. Component 3. National and commune level agencies will benefit from integrated Project Management, planning, monitoring and evaluation. Capacity building and M&E and Capacity- technical assistance will also be provided on local planning and Building development responses to forced displacement. Component 4. CERC If triggered in case of an eligible emergency, the CERC component will benefit people in the project target areas by rapidly making funds available for emergency response. 54. The project’s institutional beneficiaries include officials at the national, commune and colline levels and line ministries and specialized agencies in Burundi supporting community development and refugee issues . Cooperatives, associations and enterprises will benefit from income-generating activities under component two. D. Results Chain E. Rationale for Bank Involvement and Role of Partners 55. As confirmed in the National Development Plan, the government sees the development challenges this project seeks to address – stunting and malnutrition, access to services and forced displacement impacts – as priorities for Burundi’s recovery. The main implementing mechanism to address these challenges builds on country systems through support for the decentralization policy. The World Bank can offer important financial and technical contributions to support these government priorities. First, the scale of the challenge requires the level of resources and medium-term Page 22 of 86 The World Bank Burundi Integrated Community Development Project (P169315) planning frameworks that the Bank is well-placed to help mobilize. The ability to finance and commit to a multi-year project allows the Bank to provide predictability in a volatile environment. This is particularly important for forced displacement, the majority of funding for which is mobilized on an annual basis for humanitarian responses rather than long-term development approaches. Second, the Bank’s approach to working with and through government systems and procedures strengthens state institutions. Thirdly, the Bank has extensive global expertise and knowledge on community development and local governance. Finally, through the IDA 18 RSW and earlier operations in Africa and globally, the World Bank brings to bear a solid foundation of experience on development approaches to forced displacement. 56. At the same time, as a local development project, Turikumwe will be able to maximize opportunities for synergies and complementarities with other development programs in the project areas, including those financed by the World Bank. As a multi-sectoral operation, the project will create operational linkages with sector line agencies and World Bank-financed operations. For instance, where beneficiaries under Turikumwe identify off-grid electrification or clean cook stoves as priority subprojects, these needs will be likely met by the pipeline Soleil renewable energy project (P164435). Support for the CDP process and community infrastructure draws from experience under the Local Development for Jobs Project (P155060). Cash payments for micro-grants under component 2 could mirror the approach used under the Social Safety Nets project (“Merankabandi – P151835). Turikumwe’s activities in support of nutrition align directly with the Investing in Early Years and Fertility in Burundi Project (“Nkuriza” – P165253). Connections made during project preparation will be maintained through the project’s inter-agency Project Steering Committee (PSC) and Inter-agency Technical Committee (ITC) to support the broader aims of inclusive commune development and the socio- economic inclusion of refugees and host communities. 57. Role of Partners. The project has been prepared in consultation with UNHCR to help formulate appropriate long- term development responses to forced displacement in Burundi. UNHCR will continue to monitor the ongoing adequacy of the refugee protection framework. One or more representatives of the UN system will also sit on the Project Steering Committee and Inter-agency Technical Committee in an observer capacity. 58. Detailed consultations, lessons learned workshops and site visits were conducted during preparation to development partner projects combating malnutrition.36 The Turikumwe design adapts existing good practices from these projects. 59. Turikumwe will collaborate with other initiatives in the project zone to allow beneficiaries to fully capture the benefits of complementary investments and services. This will include the Auxfin savings and financing platform, which mobilizes agricultural producers into groups and provide them with tablets for connectivity, savings accounts and access to credit, agricultural information, and streamed advisory services. Auxfin is funded in Burundi by the Embassy of the Netherlands. 60. Development partners with a long track record of supporting commune development and local governance in Burundi, including the United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF), were consulted during project preparation. The Turikumwe project will draw on operational manuals on CDP formulation prepared by these agencies with the Ministry of Decentralization. 61. Consultations were held during project preparation with development partners and NGOs active in the humanitarian-development nexus, plus those supporting local governance, food security/nutrition, rural livelihood, 36 These include Amashiga managed by CRS, PROACT from FAO, FSV and others. Page 23 of 86 The World Bank Burundi Integrated Community Development Project (P169315) forced displacement and gender/GBV. The World Bank task team will also meet with the Consultative Committee to ensure effective coordination as the project moves into the implementation phase. F. Lessons Learned and Reflected in the Project Design 62. Allocating development resources based on transparent, objective criteria builds government credibility. The design will build on the World Bank’s extensive experience with community-driven development (CDD) and local development projects, which highlights the importance of fair and transparent methods for allocating resources, particularly in countries where state-society relations have been affected by a legacy of mistrust borne of social conflict. By targeting communes based on objective data on poverty, malnutrition and the impact of forced displacement and allocating funds on a per capita basis, the government will demonstrate commitment to transparency and equity. 63. Lessons from community-based operations highlight the need to simultaneously support communities and local governments. Analyses of the impact of community-driven projects underscore the risk of creating parallel community structures for planning at the expense of building sustainable capacity for local governance. In fragile contexts, Bank experience suggests the need for a hybrid of community and local government institutions with adequate capacity, which are empowered to deliver effective and sustainable infrastructure and services. Turikumwe will support the capacity of communes to effectively engage with communities, including marginalized groups. It will also build commune capacity for planning, procurement and oversight of socio-economic infrastructure subprojects. 64. In contexts such as Burundi, community development projects need to take a gradual approach and be wary of elite capture. The Burundi Community and Social Development Project (P095211 – PRADECS), which ran from 2007- 2012 also supported the formulation of CDPs and funding of public and private goods through target communes. The Implementation Completion and Results Report (ICR) for the project concluded as follows: (a) sufficient time needs to be given to develop capacity at the community and commune for effective planning and maintenance of subproject investments; (b) elite capture of the planning process is a risk that cannot be fully mitigated but can be limited through broad-based participation and transparency, including through intensive support by Facilitating Partners; and (c) regular community-based monitoring of the participatory planning process can help to identify red flags and take corrective action.37 These lessons have been incorporated into the design of Turikumwe. 65. Early, multisectoral interventions are necessary to reduce stunting in children and involving both men and women works best in Burundi. International experience shows that multisectoral interventions focusing on the first 1,000 days from conception – i.e., throughout pregnancy and a child’s first two years – are crucial for reducing stunting among children. International evidence also shows that multi-sectoral nutrition programs that promote adequate food and nutrient intake, feeding, caregiving and parenting practices, and low burden of infectious diseases are the most effective.38 The nutrition activities under the project, therefore, primarily target pregnant women and children under two with a combined set of services and investments. In Burundi, experience with the Maman Lumière model has been good, but a lesson has been that it is important to include men in behavioral change communication. The project will, therefore, promote Parents Lumieres instead, in line with recommendations from donor partners who have long experience in promoting nutrition through this model in Burundi. 37 See World Bank (2013) Implementation and Completion Results Report: Burundi Community and Social Development Project. Report No. ICR2798. 38 Victoria et al. 2010; Black et al. 2013. Maternal and child undernutrition and overweight in low-income and middle-income countries. Lancet. 382(9890) Page 24 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 66. Efforts to address climate change and resilience are critical to address food security and nutrition. In addition to enhancing agricultural productivity, the introduction to good agriculture practices and resilience-focused support needs to be incorporated into investment and technical support to producers, particularly in countries where malnutrition is high, and the unreliability of food supply and income are particularly impactful. 67. Parallel service delivery in refugee-hosting areas is unsustainable and costly. Humanitarian responses to forced displacement often lead to parallel service delivery, with limited links into mainstream government services. This can lead to duplicate socio-economic investments and low quality of service provision. The project presents a development response through close collaboration with UNHCR, which will contribute to bridging this gap. It also seeks to integrate refugee concerns into the commune development planning process. 68. A multisector approach to livelihood is particularly important in the refugee context to address food security. Refugees often represent diverse backgrounds and set of skills and typically face land access constraints. Projects need to take this into consideration by providing support not only through agriculture, but also through non-agriculture rural income-generating activities (trade, small manufacturing, services). 69. Multi-sectoral projects implemented at the local level require clear coordination and communication processes. Project management can be complicated in situations where multiple government agencies are involved at the national and sub-national levels. Inadequate staffing and weak coordination can affect project management tasks such as procurement and contract management, expenditure tracking, and M&E. Learning from similar projects in Burundi and elsewhere, the project will include the following features: (i) inter-agency PSC and ITC comprising key agencies for local development, food security/nutrition and forced displacement; (ii) inception workshops involving all key agencies; and (iii) monthly coordination meetings with the participating provinces. III. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements 70. Institutional and implementation arrangements are based on the following principles: (a) build institutional capacity by supporting existing government planning systems; (b) support the government’s decentralization policy, which aims to enhance citizen engagement and strengthen trust in the state; and (c) ensure effective coordination of what will be a multi-sector operation by engaging relevant government agencies in project implementation and supervision. National Level 71. Project Steering Committee (PSC). A high-level inter-agency PSC will oversee the project, provide strategic guidance and ensure consistency of project activities with national policies. The PSC will be chaired by the Ministry of Interior, Local Development and Patriotic Formation, whose mandate includes oversight of local development and the subnational administration, non-government organizations and refugee affairs. Members of the PSC will include the ministries in charge of finance, decentralization, education, health and agriculture and the governors of the four project provinces. The UN system will be represented in an observer capacity. The PSC will meet at least twice per year. 72. Inter-agency technical committee (ITC). An inter-agency technical committee will be established, comprising technical level officials of the PSC members and other relevant line agencies, such as energy and social affairs. The ITC Page 25 of 86 The World Bank Burundi Integrated Community Development Project (P169315) will advise the PSC and the PIU to ensure that project investments are consistent with relevant government sector policies and practices. It will also support coordination with other relevant projects supporting commune development, food security/nutrition, livelihood and access to services and forced displacement. The ITC will meet at least quarterly. 73. Project Implementation Unit (PIU). Responsibility for project management will be vested in a PIU. Reporting to the Ministry of Interior, the PIU will lead project implementation, coordinating activities on the ground and progress reporting. This will include drafting annual Work and Financial Plans for the review of the ITC and approval of the PSC and the World Bank. It will provide technical, fiduciary, environmental and social reviews for all sub-projects. It will also manage the payments for sub-projects and transfer funds directly to beneficiaries under Component 2.1.A (microenterprises). 74. Facilitating Partners. Facilitating Partners (FPs) will be contracted to support project implementation. The market analysis undertaken for the Project Procurement Strategy for Development (PPSD) confirmed that there are a number of local and international organizations in Burundi capable of fulfilling the expected role of the project FPs. For component one, the FP will set up local facilitation teams to: (a) help commune councils in the project areas to prepare and/or update CDPs through inclusive community-based assessments; (b) help communes prepare subproject proposals for financing; (c) establish community committees at the colline level to oversee subproject implementation as well as operations and maintenance, pursuant to O&M plans to be prepared for each subproject; and (d) support the PIU with subproject environmental and social screening. In order to minimize gender disparity in their work with communities, all FPs will trained on prevention of SEA, Codes of Conduct, GRM, as well as gender/GBV in general. 75. For Window A of component 2.1, an FP will be hired to (a) support implementation of the project communication strategy to ensure equal and transparent access to funding opportunities; (b) support the refugee camps and the neighboring communities to identify priority needs for micro-enterprises (i.e., the type of activities these communities want to support); (c) support beneficiaries to prepare simple microenterprise business plans; (d) help facilitate a transparent, fair and efficient selection process for the communities to select the final microenterprise beneficiaries; (e) provide technical support to the beneficiaries during implementation of their investments; and (f) support the PIU with the fiduciary, ESF and monitoring and evaluation aspects of the Project. Under the agriculture producer group sub- component (2.1.B), the FP will support: (a) the project’s communication effort; (b) identify potential producer associations for participation (including coordination with complementary development partner projects to promote synergies); (c) help associations with a simple application process for pre-screening; (d) run the secretariat of the communes for the processing and selection of the proposals to ensure a transparent, fair and efficient process; (e) provide technical assistance to the selected producer groups to prepare a business plan for PIU review and approval; (f) provide support to the beneficiaries for the implementation of the sub-projects, including procurement-related activities; and (g) support the PIU with the fiduciary, ESF and monitoring and evaluation aspects of the Project. 76. Under the nutrition sub-component, the FP will mobilize refugee and host communities to: (a) nominate Parents Lumieres (three per colline and approximately 10 per camp depending on population size); (b) form groups of households with pregnant women and children under the age of two; and (c) assess the best models for kitchen gardens. The FP will support the Parents Lumieres by organizing an initial training and by providing regular mentoring. Further, the FP will train and provide technical support to Agricultural Monitors (Moniteurs Agricoles) at the colline level for the implementation of kitchen gardens in the refugee and host communities. Finally, the FP will provide training in nutrition and food safety for grants beneficiaries under sub-component 2.1 who are engaged in food production or food handling. MNPs and other supplements will be distributed by the Parents Lumieres via the Agence de Santé Communautaire (Community Health Center at colline level) and in collaboration with Community Health Workers. Page 26 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 77. Technical line agencies. The PIU and Communes will collaborate with relevant government line agencies to provide technical support for the implementation of subprojects and to ensure alignment with national standards. This will ensure that all infrastructure investments will be matched with the necessary human resources, equipment and facilities (e.g., classroom construction is matched with teaching personnel). Memorandums of Understanding will need to be signed for infrastructure subprojects under the mandate of other line agencies to ensure consistency with national standards and policies and to guarantee operations and maintenance. Regional Level 78. PIU regional antenna office. The PIU will establish an antenna office in Muyinga to provide hands-on support in the field. The PIU antenna office will mobilize staff to support project monitoring, including specialists in FM, procurement, and monitoring and evaluation. The head of the regional office will also support coordination at the sub- national level. Province Level 79. Governors of the target provinces will sit on the Project Steering Committee. The governors will provide strategic level monitoring of the project in collaboration with other members of the PSC. They will also help to identify synergies with other relevant programs in the target provinces and ensure a subnational voice in the PSC. Commune and Colline Level 80. Commune Councils (CCs). Communes will play a major part in project implementation, consistent with the decentralization policy and the Commune Law. The CCs tasks will include: (a) prepare CDPs and Annual Investment Plans (AIPs), through consultations with communities (including refugees where present); (b) approve the CDP, ensuring that priority is given to vulnerable groups; (c) prepare and approve subprojects for project financing under component one, with input from sector line agencies where appropriate; (d) procurement of goods and services for subprojects for component one (although the PIU will handle funds); (e) monitoring subproject implementation; (f) support O&M; and (g) select and validate the associations/cooperatives that will receive grants under component 2.1. The CCs will be supported by the Communal Community Development Committee (CCDC), a consultative body comprising representatives from the community, civil society and decentralized technical services. 81. Colline Councils. In line with their legal mandate, Colline Councils will support the CDP planning process. They will: (a) help to organize participatory assessments, working with the FP local facilitation teams; (b) support the formation of community committees; (c) help community committees to submit subproject proposals to the commune council for consideration; (d) monitor implementation of subprojects; and (e) mediate any project-related disputes. Efforts will be made to ensure women’s participation at the level of Commune and Colline Councils, to ensure that decision-making and implementation are inclusive of women’s voices. 82. Communities. Communities (including refugees where present) will actively engage with the participatory needs assessments that will lead to the preparation of the CDP and the identification and preparation of priority subprojects to be financed under component one. Technical support will be provided by the Commune Council, assisted by the FP local facilitation teams. The FP will help communities to establish community development committees for subprojects at the colline level. The committees, which would have equal representation of men and women, will be trained on subproject monitoring and operations and maintenance. In areas where refugees are present, they will be represented Page 27 of 86 The World Bank Burundi Integrated Community Development Project (P169315) on the community committees. In and around the camps, communities will identify needs and select investments in microenterprises under sub-component 2.1. They will also participate in selecting the Parents Lumieres under sub- component 2.2 and identify the most suitable model for kitchen gardens for their community. B. Results Monitoring and Evaluation Arrangements 83. Monitoring and Evaluation (M&E) System. The M&E system will generate regular, real-time data directly from project beneficiaries to allow for flexibility and mid-course correction. The PIU will have primary responsibility for M&E through a dedicated team, which will include (i) a National Project M&E Specialist, who will oversee overall M&E implementation; and (ii) a regional M&E specialist(s) to monitor project-related activities in the target provinces. Project facilitators hired by the FPs and embedded at the commune level will also support commune councils to monitor project progress. The PIU will submit quarterly reports and an Annual Report to the PSC and the World Bank. 84. The M&E system will operate at the national, commune and colline levels and will combine impact, outcome, output and process measures of performance. Much of the data collected will be disaggregated by gender and status as refugee or member of the host community member. The overall M&E system is guided by the Project’s results framework. It will use smart-phone technology and a web-based Management Information System (MIS) to support efficient data collection, aggregation and analysis to enhance transparency and allow for real-time monitoring of project progress and to facilitate rapid corrective actions. The Bank will augment government M&E by piloting Iterative Beneficiary Monitoring (IBM) in the target areas. IBM is a method to generate cost-efficient regular and timely monitoring of project activities and results on a quarterly basis. It will strengthen management oversight and accountability while enhancing citizen engagement. 85. Management Information System (MIS). The project’s MIS will provide data on key project inputs, outputs and progress. This will include the tracking of financial and physical progress in project implementation. The PIU will regularly review and analyze these data to report on progress, assess performance and identify issues for follow-up action. A central MIS unit within the PIU will support the roll-out and maintenance of the system, data analysis and regular reporting to the ITC, PSC and the World Bank. The Project MIS will have a publicly accessible portal and dashboard that will provide information on overall project progress and the status of key results indicators, as well as detailed sub- project, commune and province level data. 86. Evaluations and Assessments. A baseline study will be conducted during the inception phase and at project closing, to evaluate qualitative and quantitative aspects of project results. Several special studies will be undertaken to enhance understanding of key aspects of the project, as follows: (a) Economic Analysis of selected completed sub- projects, including an assessment of the impact on income from the investments made under Component 2; (b) Technical and Maintenance Reviews of the quality of infrastructure works and maintenance. A sample of completed sub-projects will be visited by teams of engineers to assess the quality of construction, ongoing functionality and identify issues with maintenance; and (c) Process Evaluation: teams of qualitative researchers will spend extended periods of time in a small sample of communes to document the bottom-up planning process and project implementation to identify good practices that can be shared and potential bottlenecks that need to be dealt with by management. The studies will ensure a gendered analysis, documenting good practices for ensuring women’s involvement in the activities. Work will commence on these studies in year two so results are available for the mid-term review to inform mid-stream corrections as needed. 87. Monitoring of the refugee protection framework. The World Bank, in cooperation with UNHCR, will monitor the ongoing adequacy of the refugee protection framework in Burundi, including compliance with national legislation and Page 28 of 86 The World Bank Burundi Integrated Community Development Project (P169315) relevant international instruments on the right to freedom of movement. UNHCR will prepare updated protection assessments bi-annually to coincide with regular World Bank Implementation Support Missions. C. Sustainability 88. The sustainability of the project can be looked at from the perspective of institutions, policies, investments (in infrastructure and livelihood, food security and nutrition) and social capital. 89. Institutional sustainability. The National Office of Protection of Refugees and Stateless Persons (ONPRA) under the Ministry of Interior, Local Development and Patriotic Formation has responsibility for refugee issues in the government of Burundi and will lead project implementation. ONPRA will gain new skills in project management, oversight and coordination through the Turikumwe project. Commune and colline level capacity for planning, budgeting and implementation will be enhanced through activities under component one. Component two activities will strengthen associations, cooperatives and micro-enterprises in the project areas through access to finance and technical assistance. Sub-component 2.2 will reinforce and expand existing community-based networks for nutrition under the government’s Maman Lumiere program. The project will also strengthen capacity for multi-sector planning and collaboration through the inter-agency governance structure at the national level. Technical assistance from the World Bank and regional knowledge exchange will build the capacity of the government of Burundi at the national and commune levels with respect to development responses to forced displacement. 90. Policy sustainability. The project will contribute to policy development with respect to the social and economic inclusion of refugees, which will have broader impacts beyond the scope and lifespan of the project. 91. Sustainability of infrastructure. Turikumwe will support investments in social and economic infrastructure such as construction and upgrading of education and health facilities, markets, water supply and sanitation systems, rural electrification and access roads. As a pre-condition for approval of a subproject proposal, relevant sectoral agencies and/or communes will be required to commit budget for O&M through a written MOU. Each subproject will require an O&M plan. Functionality assessments will be undertaken to verify the sustainability of infrastructure subprojects after completion. 92. Economic sustainability. All investments under sub-component 2.1 will be screened for return on investment and cash flow projections, market potentials, and management of recurrent risks. Once the financing has been provided to an association and micro-enterprise, the project will provide technical support in the crucial first 12 months. The economic sustainability of investments under Component 2 will be monitored regularly as part of the project results framework. Under sub-component 2.2, Parents Lumière will be trained so that they can continue to promote nutrition- related behavioral change and the maintenance of the kitchen gardens also after the project closes. 93. Social sustainability. The project’s inclusive planning process is expected to build trust between different groups in society, including those traditionally marginalized from decision-making on the use of development resources. Global experience also suggests the project approach has the potential to enhance state-society relations through the use of evidence-based, objective targeting and transparent, participatory processes for planning and decision-making. With respect to forced displacement, long-term inclusion of refugees into Burundian society will only be sustainable if there are strong social relations with the communities that host them. The project aims to address sources of tension between the two groups, including the perception that humanitarian and development assistance unfairly favors refugees over locals, and the strain on basic services caused by the refugee presence. Finally, the project will support joint planning, Page 29 of 86 The World Bank Burundi Integrated Community Development Project (P169315) decision-making and monitoring of infrastructure subprojects under component one and joint associations/cooperatives and enterprises through component two. This is expected to strengthen social cohesion and contribute to the longer-term goal of refugee inclusion. IV. PROJECT APPRAISAL SUMMARY A. Technical, Economic and Financial Analysis 94. Economic and Financial Analysis. A series of farm and microenterprise budgets, as well as assumptions around community based public investments and economic impacts from improved nutrition were developed for without- project and with-project scenarios. The social discount rate is assumed at six percent. An investment horizon of 20 years is used in the analysis. Incremental benefits mainly result from investments of a private nature. The project’s economic rate of return (ERR) is estimated at 11.27 percent, with a corresponding economic net present value (ENPV) of US$37.98 million (see Table 4). An analysis was also conducted incorporating the social value of carbon. The net carbon balance quantifies greenhouse gases (GHGs) emitted or sequestered as a result of the project compared to the without project scenario. Over the project duration of 20 years, the project constitutes gross GHG emissions -425 tCO2-eq, net GHG emissions -674 tCO2-eq. The project provides a sink of 34 tCO2-eq per year, equivalent to 3.7 tCO2-eq per ha per year. The main carbon sinks are primarily from afforestation, land use change and improved practices and the returns on the carbon sinks are assumed US$80 per tCO2. The 20 percent variation in costs and/or benefits shows that the project remains financially and economically robust. For all these assumptions, the internal rates of return (IRRs) are higher than the discount rate used (6 percent). Results show that the return on the project’s investment would remain above the social discount rate. Furthermore, sensitivity analysis for key variables demonstrates the robustness of the economic results. The ENPV is positive for all proposed changes. Table 4: Economic and Financial Impacts of the Project Hypotheses IRR NPV (US$) B/C Basic hypothesis 11.26% 37,943,622 2.25 If production costs increase by 20% 9.8% 31,853,442 1.74 If profits decrease by 20% 9.5% 24,264,717 1.80 If profits decrease by 20% and costs increase by 20% 8.3% 18,174,536 1.39 With socioeconomic and carbon benefits 11.27% 37,983,547 3.74 Socioeconomic Discount Rate 6% 95. A standard cost-benefit analysis has been used to assess overall project benefits during preparation of the project. The project outcomes will also be evaluated quantitatively and qualitatively based on analysis and comparison of pre- and post- project assessments and surveys in areas with and without project intervention. The selection of public and private investments and services for project support is based on experience from other projects in Burundi and complementary analysis during project preparation. Indicators such as returns on investments in microenterprises and associations, hours of labor used, and nutrition outcomes, will also be monitored by the project on an annual basis; followed by a final, empirical analysis of their impact as part of the project Implementation Completion and Results Report (ICR). Details of the Economic and Financial Analysis can be found in Annex 5. Annex 6 provides the detailed GHG calculations for the project. Page 30 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Technical 96. Quality control. All infrastructure subprojects will be subject to technical scrutiny to ensure they meet adequate design and engineering standards. When available, they will follow government-approved blueprints (e.g., school classrooms, health centers). Quality control through the project cycle will include financial, technical and environmental feasibility screening. Competitive selection of engineers for the PIU and of qualified and competent contractors will contribute to quality assurance. World Bank implementation support will also contribute to quality control through careful scrutiny of procurement processes and on-site inspection of works to identify and remedy deficiencies. 97. Strengthening government systems for participatory planning and budgeting. Turikumwe will support the government’s decentralization policy which aims to strengthen citizen participation in local governance. Communes will be the center of project activity. Subprojects for component one – which has the bulk of the project financing – will be identified through the local government CDP process, which will be enhanced through additional consultations with refugees and marginalized groups. B. Fiduciary (i) Financial Management 98. A financial management (FM) assessment of the implementation arrangements proposed was carried out in November 2019 to assess whether acceptable FM arrangements are in place. The assessment considered the degree to which (a) reasonable records are maintained and financial reports produced and disseminated for decision making, management, and reporting; (b) funds are available to finance the project; (c) there are reasonable controls over project funds flows; and (d) independent and competent audit arrangements are in place. The assessment complies with the World Bank policy and directives on investment financing. 99. For the proposed project, it has been agreed that a new PIU will be established under the responsibility of the Ministry of Interior, Local Government and Patriotic Formation, through ONPRA to ensure the day-to-day coordination of the project’s FM activities. 100. The conclusion of the assessment is that the FM risk is assessed as High for the following reasons: • The Ministry of Interior, Local Government and Patriotic Formation, including ONPRA, has no experience managing World Bank-financed projects; • The PIU is not yet established and the new PIU will be managing a large number of transactions; • The inherent country fiduciary risk is considered high, increasing the risk of corruption and mismanagement of the project funds; • The limited capacity to coordinate the significant number of agencies involved in implementation; • Lack of qualified and experienced staff within the Ministry of Interior, Local Government and Patriotic Formation to manage the project; • Absence of Project Implementation Manual or procedures to ensure adequate internal control; and • Lack of any accounting and financial information system until established by the new PIU. 101. Regarding the issues raised above, the following mitigation measures are proposed to address some of the issues and fiduciary risks identified: Page 31 of 86 The World Bank Burundi Integrated Community Development Project (P169315) • Experienced FM staff (FM Specialist, one chief of accounting, two accountants, one junior accountant for the regional PIU office and an Internal Auditor) will be recruited to coordinate the day-to-day financial activities of the project at the PIU level; • The PIU will acquire an accounting software (TOMPRO highly recommended) to maintain project accounts and generate required financial reports (e.g., IFRs, withdrawal applications, project financial statements); • Develop the PIM, including FM procedures, by the effectiveness date of the project; • The PIU should also develop a manual of procedures to manage the matching grants and the subprojects; • The PIU should open a Designated Account (DA) to ensure adequate tracking of project funds; • Recruit an independent firm for the audit of the project financial statements (short list and ToRs submitted for World Bank ‘no-objection’) six months after project effectiveness; and • Agree on the IFR format to be used by the project. 102. Once theses risk mitigation measures are implemented, the residual risk rating should be Substantial. (ii) Procurement 103. Procurement will be carried out in accordance with the ‘World Bank Procurement Regulations for Borrowers under Investment Project Financing’, dated July 1, 2016, revised August 2018, hereafter referred to as ‘Procurement Regulations’. The project will be subject to the World Bank’s Anticorruption Guidelines, dated July 1, 2016. 104. As per the requirement of the Procurement Regulations, a Project Procurement Strategy for Development (PPSD) sets out the selection methods to be followed by the borrower during project implementation for the procurement of goods, works, and non-consulting and consulting services financed by the World Bank. The underlying Procurement Plan will be updated at least annually or as required to reflect actual project implementation needs. 105. The proposed project will use Systematic Tracking of Exchanges in Procurement (STEP), a planning and tracking system that provides data on procurement activities, establishes benchmarks, monitors delays, and measures procurement performance. 106. Procurement Risks and Mitigation Measures. A procurement capacity and risk assessment has been carried out by the World Bank for ONPRA and the communes. Based on the assessment, the procurement risk is rated High, primarily because this will be ONPRA’s first experience implementing a World Bank-financed project. Risks identified are presented in the table below, with mitigation measures and respective time frames. Table 5: Procurement Risks and Mitigation Measures No. Issue/Risk Recommended Mitigation Measures Responsible Agency/Timeline 1 Existing staff have limited procurement skills. Recruit Procurement expertise for the ONPRA. PIU at the national and regional No later than three levels. months after effectiveness. 2 Tender committees and existing staff are not Train the staff, newly recruited ONPRA/WB. No later trained in the World Bank procurement procurement specialists and the than six months after procedures tender committee in the WB effectiveness. procurement framework. Page 32 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 3 This is the first project to be implemented Elaborate and submit to IDA for ONPRA. By within the Ministry of Interior, Local approval a Project Implementation effectiveness. Government and Patriotic Formation under the Manual with Procurement section and World Bank New Procurement Framework train all relevant staff. 4 The filing system at ONPRA and the communes Establish adequate filing system, ONPRA. No later than is inadequate. details of which to be described in the three months after PIM effectiveness. .C. Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No . D. Environmental and Social 107. Involuntary resettlement. Small scale land acquisition or voluntary land donation is not expected, although project activities may cause limited involuntary resettlement including economic resettlement (loss of trees and crops). Given Burundi´s context of land scarcity and the community-based selection of works, the project will screen proposed activities and exclude works causing land acquisition and physical displacement of population. 108. Indigenous peoples and disadvantaged groups. The indigenous Batwa people are one of the most discriminated and disadvantaged groups in Burundi. There are a number of Batwa communities within the four project provinces. An Indigenous Peoples Planning Framework (IPPF) was prepared alongside the Stakeholder Engagement Plan (SEP) to analyze the impacts of the project on Batwa communities and ensure their access to project planning and decision- making processes and to access project benefits, including opportunities to participate in high labor intensity works, through preparation of Indigenous Peoples Plans (IPPs) where necessary. Other vulnerable groups include people with disabilities, people with albinism, female-headed households, child-headed households and orphans. The project´s Environment and Social Management Framework (ESMF) includes analysis of the risks and impacts to vulnerable groups which will help shape specific interventions that will be included in site-specific Environmental and Social Management Plans (ESMPs). The SEP will include provisions for consultation with disadvantaged groups (see ESS10). 109. Tension between refugee and host communities. While relations between refugees and host communities are generally good in Burundi, the presence of refugees and refugee camps can create a source of tension with host communities over access to resources and basic services. The ESMF evaluated the existing tensions between refugees and host communities, analyzed possible negative impacts of project activities, and along with site-specific ESMPs will propose specific mitigation measures to avoid fueling tensions and where possible strengthen links between the two groups. 110. Labor issues. At this stage, the project is unable to estimate the number of workers or labor required. With the exception of high-labor intensive activities, the footprint is expected to be small. The majority of the labor (unskilled) will come from local communities within the project intervention area. However, the recruitment of unskilled labor for project works (including high-labor intensive works) may cause tensions between refugee and host communities. Labor Management Procedures have been prepared for the project, and the ESMF and site-specific ESMPs that will be Page 33 of 86 The World Bank Burundi Integrated Community Development Project (P169315) developed prior to commencing activities on the ground will establish criteria for beneficiary selection for labor intensive activities. 111. Gender based risks. Female refugees generally have lower educational attainment and have fewer income generating opportunities. Women and girls are vulnerable to Gender based Violence (GBV) between both refugees and host communities. The project design seeks to ensure equitable access to project benefits and decision-making processes for men and women. A GBV risk assessment has been carried out and a GBV Action Plan will be developed and implemented, including specific actions to minimize GBV risks, including awareness-raising on response services and codes of conduct for construction workers employed under the project. Additional information on addressing gender issues are provided in the Gender Analysis Annex. 112. Stakeholder Engagement. The project will ensure early, continuous and inclusive stakeholder engagement, including with vulnerable and disadvantaged groups, through the development and implementation, including updating as needed of a Stakeholder Engagement Plan (SEP). 113. Grievance Redress Mechanism (GRM). The project will analyze existing GRMs in the project intervention area (including in the refugee camps) and propose a comprehensive mechanism which will enable a broad range of stakeholders to channel concerns, questions and feedback to the PIU (and where necessary to other actors at the local level). By necessity, the GRM will be multi-faceted, designed to accommodate inputs from communities and external stakeholders; respond to issues related to a broad range of project implementation issues; and harness existing and accepted systems for grievance management. Arrangements for establishing confidential reporting and redress mechanisms for GBV issues will also be laid out. A GRM will also be provided by contractors for workers to raise workplace concerns. V. GRIEVANCE REDRESS SERVICES 114. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and World Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. VI. KEY RISKS 115. The overall risk rating is Substantial. In addition to the macro-level political, governance and economic risks in Burundi, the main risk to successful implementation relates to implementation capacity. The implementing agency has limited development project experience. And, while all elements of the project design have been tested in and outside Burundi, the multi-sectoral approach can be complex to implement. Regional dynamics could also affect the project, including the risk of additional refugee inflows from the DRC and the potential socio-economic impacts of a large-scale Page 34 of 86 The World Bank Burundi Integrated Community Development Project (P169315) return of Burundian refugees. Risks rated high or substantial are described below: 116. Political and Governance – high. While the situation in Burundi has been stabilizing, including in the areas hosting refugee camps, political risks are heightened by the imminent elections in 2020. Should instability arise around the elections, it could trigger violence and displacement. Measures to mitigate this risk are not feasible within the project but the situation will be monitored closely. 117. Macroeconomic – substantial. Despite a return to economic growth, the macroeconomic outlook for Burundi remains fragile. The country is at high risk of debt distress, largely due to a rise in domestic debt as external borrowing options remain limited. The decline in foreign aid since 2015 has depleted international reserves. Total public debt rose to about 50 percent of GDP at end-2018 while domestic debt has grown to more than 71 percent of total debt, up from 47 percent in 2012.39 Measures to mitigate this risk are limited within the project, but the situation will be monitored closely. 118. Sector strategies and policies – substantial. Sector strategy and policy risks are rated substantial due to the project support for refugees. Burundi will need to maintain an adequate protection framework for refugees. At a time of economic difficulty, it is possible that refugee concerns will not remain a government priority. The case will also need to be made to the Burundian public to justify assistance for refugees when poverty and hunger are high among the general population. This risk will increase should a humanitarian crisis emerge, such as a disease epidemic or drought. The fact that the main project beneficiaries will be Burundian nationals, plus the provision of technical support for the government to manage the broader forced displacement agenda will be important mitigating measures. 119. Institutional capacity for implementation and sustainability – substantial. While Burundi has demonstrated solid capacity for project implementation across a range of sectors, the implementing agency (ONPRA) has no experience implementing development projects, including long-term approaches to refugee inclusion. The heavy involvement of communes, collines and communities in project implementation will also require significant technical support. The PIU will need to hire qualified experienced staff, augmented by the technical capacity of Facilitating Partners. 120. Fiduciary – high. Government capacity for financial management and procurement is limited and the overall governance environment is challenging. Measures to address fiduciary risks have been incorporated into the project design, including the appointment of experienced fiduciary staff to the PIU, preparation of a detailed manual of procedures and the recruitment of an independent audit firm. 121. Environment and social risks – substantial. Project activities are not expected to produce large-scale social or environmental impacts, but the risk is classified as substantial due to: (a) the complexity of impacts and risks generally observed in refugee camps and host communities; and (b) the expected low institutional capacity of the PIU and OBPE (environmental regulation agency), particularly in light of the new World Bank ESF. Key environmental issues may include: scarcity of land for agriculture; limited access to natural resources such as firewood, impacts on biodiversity and natural resources during the implementation (upgrading and rehabilitation of public infrastructure). Social issues may include: (a) tensions between refugees and host communities due to the negative impacts of the refugee presence and perceived inequitable access to development resources. Joint planning and implementation of activities across all components plus equitable distribution of resources should mitigate this risk from escalating; (b) gender-based violence, which will be addressed through a specific GBV Action Plan; and (c) the risk of elite capture and exclusion of marginalized groups from the bottom-up planning process. This will be mitigated through additional facilitation and outreach to 39 Source: figures are based on nominal debt numbers from the Central Bank and on GDP estimates from the World Bank. Page 35 of 86 The World Bank Burundi Integrated Community Development Project (P169315) marginalized groups, including specific targets under component two for women and youth. 122. “Other” – substantial. This risk relates to maintaining an adequate refugee protection framework. Government legislation allows for the right to work and freedom of movement for refugees. Unhindered movement in and out of the camps is central to achievement of the project development objective as refugees require access to economic centers for their businesses and to access services provided through public goods investments under component one. Work has been completed by the World Bank, in close collaboration with government and UNHCR, to review current administrative practices with respect to freedom of movement. Specific recommendations as agreed between the government and the World Bank from this work will be implemented through the project. This will include a strengthened monitoring mechanism and a comprehensive complaints handling mechanism to address instances of non-compliance with the law. 123. The government is also preparing a Ministerial ordinance to reaffirm refugees’ full freedom of movement under Burundian law. . Page 36 of 86 The World Bank Burundi Integrated Community Development Project (P169315) VII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Burundi Burundi Integrated Community Development Project Project Development Objectives(s) The Project Development Objective is to improve nutrition, access to basic services and economic opportunities in the targeted areas. Project Development Objective Indicators RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline End Target Improve nutrition, access to basic services and economic opportunities in the targeted areas. Dietary diversity among targeted beneficiaries (Number) 4.40 6.00 Women of reproductive age – Dietary diversity score 4.20 6.20 (Number) Children 6-23 months – Dietary Diversity Score (Number) 2.40 4.00 Beneficiaries with improved access to social and economic 0.00 940,000.00 services and infrastructure (Number) Female - Beneficiaries with improved access to economic 0.00 470,000.00 services and infrastructure (Number) Refugees - Beneficiaries with improved access to economic 0.00 48,000.00 services and infrastructure (Number) Microenterprises still in business 12 months after receiving the 0.00 75.00 last disbursement of project investment grant (Percentage) PDO Table SPACE Page 37 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Component 1: Commune Socio-economic Development Grants Climate-resilient socio-economic infrastructure constructed or rehabilitated (Number) 0.00 210.00 Rural roads rehabilitated or upgraded (Kilometers) 0.00 55.00 Food systems infrastructure constructed, rehabilitated or 0.00 46.00 upgraded (markets, storage, processing) (Number) Labor (Days) 0.00 1,100,000.00 Number of commune development plans supported (completed, 0.00 21.00 or updated (Number) Beneficiaries that feel project investments reflected their needs 0.00 75.00 (Percentage) Female - Beneficiaries that feel project investments reflected 0.00 75.00 their needs (Percentage) Refugees - Beneficiaries that feel project investments reflected their needs (Percentage) 0.00 75.00 Component 2: Livelihood, Food Security and Nutrition Microenterprises supported (Number) 0.00 1,000.00 Women Led – Microenterprises Supported (Percentage) 0.00 50.00 Refugee Led – Microenterprises Supported (Percentage) 0.00 50.00 Households engaged in production or transformation of high- 0.00 8,000.00 nutritious food (Number) People trained in food safety and nutrition (Number) 0.00 8,000.00 Pregnant women and children under 2 being reached by nutrition services (Number) 0.00 12,000.00 Beneficiaries with increased access to incremental economic 0.00 2,500.00 opportunities. (Number) Page 38 of 86 The World Bank Burundi Integrated Community Development Project (P169315) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline End Target Women - Beneficiaries with increased access to incremental 0.00 50.00 economic opportunities (Percentage) Refugees - Beneficiaries with increased access to incremental 0.00 50.00 economic opportunities (Percentage) Component 3: Project Management, Monitoring & Evaluation and Capacity-Building Beneficiaries satisfied with services provided under the project 0.00 75.00 (Percentage) Women - Beneficiaries satisfied with services provided under the project (Percentage) 0.00 75.00 Refugees - Beneficiaries satisfied with services provided under 0.00 75.00 the project (Percentage) Number of learning events attended by government of Burundi to promote understanding of development responses to forced 0.00 4.00 displacement (Number) Women beneficiaries reporting that they have a say in 0.00 20.00 community decision-making (Percentage) Grievances registered related to project implementation that are 0.00 90.00 addressed (Percentage) IO Table SPACE UL Table SPACE Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Dietary diversity score as Project M&E Reporting directly by Facilitating Partners Dietary diversity among targeted Annual calculated by number of system / MIS Parents Lumieres and PIU beneficiaries food groups consumed by / GIS Page 39 of 86 The World Bank Burundi Integrated Community Development Project (P169315) individuals over the past 7 days at the time of discussion with the beneficiary. The monitoring of dietary diversity will be integrated in the regular communication between the Operator/Parents Lumieres and the participants and form the basis for the nutrition training. Reporting to the Operator and PIU will be done on an annual basis. Women of reproductive age – Dietary diversity score The baseline value is the Children 6-23 months – Dietary average dietary diversity Diversity Score score for children 6-23 months in Burundi . This indicator will track the number of people who gain improved access to social and economic services and infrastructure. Specific Beneficiaries with improved access to Facilitating Partners policies will be established Annual social and economic services and and PIU for beneficiary counting in infrastructure the PIM. For most public goods, the entire population of a colline (e.g., for a school upgrading or market) will be counted. Some sub-projects Page 40 of 86 The World Bank Burundi Integrated Community Development Project (P169315) (e.g., water supply systems) often only support selected households in a colline. Some sub-projects (e.g., health centers and roads) could serve more than one colline. The target will be revisited following the first year of implementation to test assumptions on average sub-project cost and coverage area. Female - Beneficiaries with improved access to economic services and infrastructure Refugees - Beneficiaries with improved access to economic services and infrastructure This indicator will measure what share (%) of micro- Project M&E enterprises supported with system/MIS/ Microenterprises still in business 12 grants under the Facilitating Partners Annual GIS and months after receiving the last Component 2.1 that are still and PIU beneficiary disbursement of project investment grant in business 12 months after surveys the last tranche of the grant has been paid out to the beneficiary. ME PDO Table SPACE Page 41 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection This indicator will count the number on investments made either to rehabilitate existing or to construct new socio-economic infrastructure. Project M&E Climate-resilient socio-economic Facilitating Partners, Annual system / MIS Regular reports infrastructure constructed or commune, and PIU At the baseline stage the / GIS rehabilitated assumption is ten subprojects per target commune. This assumption will be revisited after the first year of implementation. This indicator will count the kilometers or roads rehabilitated or upgraded under Component 1. The target is based on the Project M&E Facilitating Partners, following assumptions: Annual system / MIS Regular reports Rural roads rehabilitated or upgraded commune, and PIU / GIS Of the 210 subprojects (10 per commune) assumed for the overall target, we assume that 55 will be roads projects. We assume that the total length for each Page 42 of 86 The World Bank Burundi Integrated Community Development Project (P169315) subproject will be 1 km. These assumptions will be revisited after the first year of implementation. This indicator will count the number on investments made in publicly managed food systems infrastructure under Component 1 – market, storage, and processing infrastructure – either to rehabilitate and/or upgrade existing infrastructure, or to construct new infrastructure. Project M&E Food systems infrastructure constructed, Facilitating Partners, Annual system / MIS Regular reports rehabilitated or upgraded (markets, The target is based on the commune, and PIU / GIS storage, processing) following assumptions. There will be 190 subprojects in total (10 in each of the 19 target communes). In the four communes hosting refugee camps we assume that 30% of subprojects will be markets, storage or processing infrastructure due to the poor condition of these facilities in and around the camps and the Page 43 of 86 The World Bank Burundi Integrated Community Development Project (P169315) opportunities offered by the refugee presence. In the other fifteen communes, we assume 20% of subprojects will be markets, storage or processing infrastructure. This indicator measures the labor impact of civil works sub-projects under component one. It will measure number of days of paid community labor accrued by local residents and refugees in the target areas. Hiring The target is based on the records from following assumptions. construction Facilitating Partners, PIU, Annual Regular reports Labor firms and and commune The average number of beneficiary labor days created under surveys. the ongoing Local Development for Jobs project in Burundi for completed subprojects (markets, health centers and schools) as of October 2019 is 16,439. The unit costs for the Local Development for Jobs project are 2.5 times higher for subprojects than Page 44 of 86 The World Bank Burundi Integrated Community Development Project (P169315) estimated for this project (which is $150,000). So, we reduce the estimated labor days by 2.5 times. This is then reduced another 20% as a sizable proportion of subprojects will be upgrading or rehabilitation of existing facilities. This gives a figure of 5,260 days per subproject. When multiplied by 210 subprojects (10 x 21 communes), the total figure is approximately 1,100,000 labor days. These assumptions will be revisited following the first year of project implementation. This indicator will track the number of Commune Development Plans (in the 21 target communes) that Project Facilitating Partners, Number of commune development plans are updated or completed in Annual Regular reports reporting commune, and PIU supported (completed, or updated a participatory manner, with input from refugees and marginalized groups through support from Component 1. Page 45 of 86 The World Bank Burundi Integrated Community Development Project (P169315) This indicator will measure the extent to which sub- Beneficiary Facilitating Partners and Beneficiaries that feel project investments project selection reflects Annual Reports surveys PIU reflected their needs beneficiary preferences in a consistent manner. Female - Beneficiaries that feel project investments reflected their needs Refugees - Beneficiaries that feel project investments reflected their needs This indicator will measure Project M&E Facilitating Partners and the number of micro- Annual system / MIS Regular reports PIU Microenterprises supported enterprises that receives / GIS investment grants under Component 2.1. Women Led – Microenterprises Supported Refugee Led – Microenterprises Supported This indicator will track the number of households engaged in the production of high-nutritious food with Project M&E the support of Component Facilitating Partners and Households engaged in production or Annual system / MIS Regular reports 2, through private sector PIU transformation of high-nutritious food / GIS grants for, among other things, community gardens, fish ponds, hatcheries and nurseries. High-nutritious food is defined as Page 46 of 86 The World Bank Burundi Integrated Community Development Project (P169315) biofortified crops, fruits, vegetables, animal sourced food products, nuts, fortified food products. This indicator tracks the number of people that participate in food safety and nutrition training provided by the project. This will primarily include adults in households engaged in Project M&E Facilitating Partners and People trained in food safety and the producer associations Annual system / MIS Regular reports PIU nutrition supported under / GIS Component 2.1 and from households with pregnant women and/or children under the age of 2 years in the refugee camps and host communities under Component 2.2. This indicator tracks the women and children under the age of two participating Project M&E in nutrition training/Parents Facilitating Partners and Pregnant women and children under 2 Annual system / MIS Regular reports Lumieres groups, receiving PIU being reached by nutrition services / GIS inputs for kitchen gardens, and receiving micro-nutrient powders under Component 2.2. Beneficiaries refer to those Project M&E Facilitating Partners and Beneficiaries with increased access to Annual Regular reports receiving a) micro- system/MIS/ PIU incremental economic opportunities. enterprise grants: b) those GIS Page 47 of 86 The World Bank Burundi Integrated Community Development Project (P169315) involved in associations receiving grants under the project. Women - Beneficiaries with increased access to incremental economic opportunities Refugees - Beneficiaries with increased access to incremental economic opportunities Beneficiaries for this Mid-term Beneficiaries satisfied with services indicator is defined as direct and end of Survey Survey PIU provided under the project beneficiaries under project. Turikumwe. Women - Beneficiaries satisfied with services provided under the project Refugees - Beneficiaries satisfied with services provided under the project This indicator will measure the number of learning Number of learning events attended by events attended by civil Project M&E government of Burundi to promote Quarterly Regular reports PIU servants to promote system understanding of development responses understanding of to forced displacement development responses to forced displacement. We have no baseline for this A sample of women will indicator, but data will be be asked the following collected during the question in a Women beneficiaries reporting that they baseline survey. The current survey. "Do you PIU have a say in community decision-making target is to increase this participate personally amount by 20 percent. The in community groups, baseline value will be activities or meetings updated following the taking place in your Page 48 of 86 The World Bank Burundi Integrated Community Development Project (P169315) baseline survey. community (Y/N)? If yes, to what extent are you involved in making important decisions in the group? (Not at all, to a small extent, to a medium extent, to a large extent)" Calculate the percentage of women who respond "Yes" and "to a medium extent" or "to a large extent". (https://oxfamilibrary.o penrepository.com/bits tream/handle/10546/6 20271/gt-measuring- womens- empowerment-250517- en.pdf?sequence=4) For the calculation of the final result of the indicator, take the percentage of women who have a positive response to at least one of the above questions (positive response = "You" or "You and your husband jointly" for all 3 decisions of #1 OR "Yes" and "to a Page 49 of 86 The World Bank Burundi Integrated Community Development Project (P169315) medium extent" or "to a large extent" for #2) This will measure the percentage of grievances received by the project Grievances registered related to project Quarterly Project MIS Regular reports PIU grievance redress implementation that are addressed mechanism that are addressed/resolved by the PIU. ME IO Table SPACE Page 50 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 1: Implementation Arrangements and Support Plan COUNTRY: Burundi Burundi Integrated Community Development Project Implementation Arrangements 1. Institutional Arrangements. The institutional arrangements for Turikumwe reflect the multi-sector nature of the project and the broader aims of promoting stronger local governance, addressing food security and nutrition challenges and the social and economic inclusion of refugees and host communities. The project structures also build on mechanisms established during project preparation, particularly the Inter-Ministerial Committee (IMC). 2. The key institutions will be: (i) national level: ONPRA, an inter-agency PSC and ITC plus FPs to be hired for components one and two respectively; (ii) provincial level: the four target provinces, led by the Governors; and (iii) commune level: the participating Communes, led by the Commune Administrators and the Commune Councils; and (iv) colline/community level: the colline councils plus community development committees. 3. Institutional and implementation arrangements are based on the following principles: (a) build institutional capacity by supporting existing government planning systems; (b) support the government’s decentralization policy, which aims to enhance citizen engagement and strengthen trust in the state; (c) ensure effective coordination of what will be a multi-sector operation by engaging relevant government agencies in project implementation and supervision. National Level 4. Project Steering Committee (PSC). A high-level inter-agency PSC will oversee the project, provide strategic guidance and ensure consistency of project activities with national policies. The PSC will be chaired by the Ministry of Interior, Local Development and Patriotic Formation, whose mandate includes oversight of local development and the subnational administration, non-government organizations and refugee affairs. Members of the PSC will include the ministries in charge of finance, decentralization, education, health and agriculture and the governors of the four project provinces. The UN system will be represented in an observer capacity. The PSC will meet at least twice per year. 5. Inter-agency technical committee (ITC). An inter-agency technical committee will be established, comprising technical level officials of the PSC members and other relevant line agencies, such as energy and social affairs. The ITC will advise the PSC and the Project Implementation Unit (PIU) to ensure that project investments are consistent with relevant government sector policies and practices. It will also support coordination with other relevant projects supporting commune development, food security/nutrition, livelihood and access to services and forced displacement. The ITC will meet at least quarterly. 6. Project Implementation Unit (PIU). Responsibility for project management will be vested in a PIU. Reporting to the Minister of the Interior, Local Development and Patriotic Formation, the PIU will lead project implementation, coordinating activities on the ground and progress reporting. This will include drafting annual Work and Financial Plans for the review of the ITC and approval of the PSC and the World Bank. It will provide technical, fiduciary, environmental and social reviews for all sub-projects financed under Components 1 (Commune Socio-economic Development Grants) and 2.1.B (Producer Associations) and will provide final approvals. It will also manage the payments for sub-projects Page 51 of 86 The World Bank Burundi Integrated Community Development Project (P169315) and transfer funds directly to beneficiaries under Component 2.1.A (microenterprises). It will also report project implementation progress to the PSC and ITC. 7. Facilitating Partners. Facilitating Partners (FPs) will be contracted to support project implementation. For component one, the FP will set up local facilitation teams to: (a) help commune councils in the project areas to prepare and/or update CDPs through inclusive community-based assessments; (b) help communes prepare subproject proposals for financing; (c) support community development committees at the colline level to oversee subproject implementation as well as operations and maintenance, pursuant to O&M plans to be prepared for each subproject; and (d) support the PIU with subproject environmental and social screening. 8. For Window A of component 2.1, an FP will be hired to: (a) facilitate the project’s communication strategy to ensure equal and transparent access to funding opportunities throughout the targeted area, (b) support the refugee camps and the neighboring communities to identify priority needs for micro-enterprises (i.e., the type of activities these communities want to support); (c) support beneficiaries to prepare simple microenterprise business plans; (d) help facilitate a transparent, fair and efficient selection process for the communities to select the final microenterprise beneficiaries; (e) provide technical support to the beneficiaries during implementation of their investments; and (f) support the PIU with the fiduciary, ESF and monitoring and evaluation aspects of the Project. Under the agriculture producer group sub-component (2.1.B), the FP will: (a) support the project’s communication effort; (b) identify potential producer associations for participation (including coordination with complementary development partner projects to promote synergies); (c) help associations with a simple application process for pre-screening; (d) serve as the secretariat of the communes for the processing and selection of the proposals to ensure a transparent, fair and efficient process; (e) provide technical assistance to the selected producer groups to prepare a business plan for PIU review and approval; (f) provide support to the beneficiaries for the implementation of the sub-projects, including procurement-related activities; and (g) support the PIU with the fiduciary, ESF and monitoring and evaluation aspects of the Project. 9. Under the nutrition sub-component, the FP will mobilize refugee and host communities to: (a) nominate Parents Lumieres (three per colline and approximately 10 per camp depending on population size); (b) form groups of households with pregnant women and children under the age of two; and (c) assess the best models for kitchen gardens. The FP will support the Parents Lumieres by organizing an initial training and by providing regular mentoring. Further, the FP will train and provide technical support to Agricultural Monitors (Moniteurs Agricoles) at the colline level for the implementation of kitchen gardens in the refugee and host communities. Finally, the FP will provide training in nutrition and food safety for grants beneficiaries under sub-component 2.1 who are engaged in food production. MNPs and other supplements will be distributed by the Parents Lumieres via the Agence de Santé Communautaire (Community Health Center at colline level) and in collaboration with Community Health Workers. 10. Technical line agencies. The PIU and Communes will collaborate with relevant government line agencies to provide technical support for the implementation of subprojects and to ensure alignment with national standards. This will ensure that all infrastructure investments will be matched with the necessary human resources, equipment and facilities (e.g., classroom construction is matched with teaching personnel and materials). Memorandums of Understanding will need to be signed for infrastructure subprojects under the mandate of other line agencies to ensure consistency with national standards and policies and to guarantee operations and maintenance. Page 52 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Regional Level 11. PIU regional antenna office. The PIU will establish a regional antenna office in Muyinga. The PIU will mobilize staff to support project monitoring, including specialists in FM and procurement. The office head will be responsible for coordination with provincial governors. Province Level 12. Governors of the target provinces will sit on the Project Steering Committee. Governors play an important coordinating role for activities on the ground. They will help to identify synergies with other relevant programs in the target provinces and ensure a subnational voice in the PSC. Commune and Colline Level 13. Commune Councils (CCs). Communes will play a major part in project implementation, consistent with the decentralization policy and the Commune Law. The CCs tasks will include: (a) prepare CDPs and Annual Investment Plans (AIPs), through consultations with communities (including refugees where present); (b) approve the CDP, ensuring that priority is given to vulnerable groups; (c) prepare and approve subprojects for project financing, with input from sector line agencies where appropriate; (d) procurement of goods and services for subprojects for component one (although the PIU will handle funds); and (e) monitoring subproject implementation and support O&M. The CCs will be supported by the Communal Community Development Committee (CCDC), a consultative body comprising representatives from the community, civil society and decentralized technical services. Figure 1.1: Implementation Arrangements for Turikumwe Page 53 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 14. Colline Councils. In line with their legal mandate, Colline Councils will support the CDP planning process. They will: (a) help to organize participatory assessments, working with the FP local facilitation teams; (b) support the formation of community development committees; (c) help the committees to submit subproject proposals to the commune council for consideration; (d) monitor implementation of subprojects; and (e) mediate any project-related disputes. 15. Communities. Communities (including refugees where present) will actively engage with participatory needs assessments that will lead to the preparation of the Commune Development Plan and the identification and preparation of priority subprojects to be financed under component one. Technical support will be provided by the Commune Council, assisted by the FP local facilitation teams. The FP will help communities to establish community development committees for subprojects at the colline level. The committees, which would have equal representation of men and women will be trained on subproject monitoring and operations and maintenance. Implementation Support Plan Strategy and Approach for Implementation Support 16. The strategy for the Implementation Support Plan (ISP) has been devised to undertake the necessary mitigation measures to address the major risks identified in the SORT that are within the control of the project, namely: (a) sector strategies and policy, related to whether Burundi will maintain a commitment to refugee inclusion during a challenging period economically; (b) institutional capacities, particularly for ONPRA, which would be leading implementation of a World Bank-financed project for the first time; (c) fiduciary issues; (d) environmental and social risks and (e) Burundi’s capacity to maintain an adequate refugee protection framework, including compliance with the right to freedom of movement. The project design cannot address all the risks, but measures are in place to mitigate most. The ISP is designed to review and ensure the mitigation measures are effective and to reinforce them where necessary. The ISP is also designed to enhance the capacity of implementing agencies in a range of technical areas. 17. The ISP will be undertaken by World Bank staff, based on three major principles: (a) frequent local level and field- based supervision of project activities, including consultations with beneficiaries, complemented by DC-based implementation support; (b) technical capacity-building for all implementing agencies; and (c) maintain high-level dialogue with the Government of Burundi on policy for refugee inclusion. 18. In the initial period of project implementation, the ISP will focus on supporting core management skills to help ensure compliance with World Bank fiduciary and safeguards requirements. The World Bank will also provide targeted technical assistance on M&E, including the MIS, which will be a key tool to address the inevitable coordination challenges that will flow from multi-sector implementation arrangements. 19. Over time the team will work to support government capacity in the following areas: (a) participatory and consultative planning processes at the local level; (b) ability to supervise construction of infrastructure to a high technical standard; and (c) development approaches to forced displacement, including economic self-reliance. 20. UNHCR will play an important role in monitoring the ongoing adequacy of the refugee protection framework. UNHCR will prepare bi-annual protection updates to coincide with World Bank Implementation Support Missions. Page 54 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Implementation Support Plan and Resource Requirements 21. The World Bank’s task team will be led by a Task Team Leader (TTL) based in Washington DC. The team will include country-based FM, procurement and ESS staff and sector specialists. The ISP will make use of the following tools: (a) regular implementation support missions, at least twice a year; (b) a mid-term review, which will be an opportunity to make major adjustments to the project design if necessary; (c) regular fiduciary compliance reviews, including review of Interim Financial Reports and external audits; (d) technical audits of the quality of infrastructure; (e) impact assessment; and; (f) implementation completion, where an assessment of the project will be undertaken and lessons drawn to inform future or similar operations. 22. The table below presents the focus of the implementation support and the skills required. Table 1.1: Implementation support and skills required Time Focus Main Skills Needed Resource Partner Estimate (SW) Role First twelve • Project implementation start up Task management/social 9 UNHCR and months • Establish project team in PIU development (HQ/CO-based) partners to • Support to building blocks of project Agriculture/food 7 support management (FM, procurement, security/nutrition/rural monitoring M&E, inter-agency governance livelihood (HQ/CO-based) of ongoing structure) and participatory planning Forced displacement 2 adequacy of processes the refugee FM (CO-based) 3 • Development of monitoring protection methodology, including baseline Procurement (CO-based) 3 framework survey ESS (CO-based) 6 M&E/MIS (HQ/CO-based) 3 Rural infrastructure engineer 2 Strategic Communications 1 12-48 • Joint ISMs with government and Task management/social 8 As above. months UNHCR to monitor implementation development performance Fragility and conflict/forced 2 • Review of annual work/financial plans displacement • Review of quarterly/annual reports Agriculture/food 6 • Review of audits/IFRs security/nutrition/rural • Review subproject selection processes livelihood (HQ/CO-based) • Process review on participatory FM 3 development planning process Procurement 3 • Support for integration of refugees ESS 4 into project-related programs Health 1 • Undertake MTR Education 1 Rural infrastructure engineer 4 M&E/MIS 4 48-60 As above, plus: As above As above As above months • Impact assessment • Project completion Page 55 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 2: Project Approach to Supporting Nutrition 1. Drawing from international evidence, the project will finance both nutrition-specific and nutrition-sensitive activities, targeting pregnant and lactating women and children under two years of age.40 Further, the project will seek to strengthen the general food system (production, infrastructure, markets, and knowledge, behaviors and attitudes) in the target area by mainstreaming nutrition throughout the project’s socio/economic and livelihoods investments. The proposed approach is also in line with the recommendations from the World Bank-FAO framework on nutrition sensitive agriculture interventions, which affect nutrition status through a series of pathways, including on-farm availability and diversity of food, the food environment in markets, incomes, women’s empowerment, nutrition knowledge and norms, and natural resource management. Figure 2.1: Pathways for agriculture to improve nutrition 2. The project would use several of these pathways to combat malnutrition: (i) knowledge and behavioral change; (ii) improvement of the food environment in domestic and external markets; (iii) income enhancement; and (iv) women's empowerment. The project would finance technical assistance and investments in and outside the agriculture sector to promote knowledge, livelihoods and incomes, as well as to strengthen the general food environment. Nutrition-specific and nutrition-sensitive investments under the project will be integrated into the eligible CDD investments under component 1.2, incentivized in the investments in livelihood activities under component 2.1, and as direct promotion of improved nutrition under component 2.2. Specifically, nutrition activities and investments would be integrated throughout the project according to the following: 3. Training targeted women through the Parents Lumières model on nutrition, breastfeeding, WASH, cooking and preparation, different life skills, etc. This training will target pregnant women and parents with children under two years of age. These beneficiaries will also receive certain home fortification (micronutrient powder – MNP) package and folic acid. These parents will also receive support with the kitchen gardens, on how to plant, save seeds, cook/preserve/dry crops they produce, etc. 40Victoria et al. 2010; Black et al. 2013. Maternal and child undernutrition and overweight in low-income and middle-income countries. Lancet. 382 (9890). Page 56 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 4. Basic nutrition, diet and food safety training for all beneficiaries receiving financing for agro-food related activities under the project. The objective is to ensure that: (a) men have basic information on nutrition to accept changed diets at home, to not sell all high nutritious food product, and to use available incomes spent on food for nutritious foods; (b) guide investments in food production towards essential food groups that are currently not available in the communities; and (c) ensure safe handling of food produced and processed for household and commercial purposes. Where possible, groups receiving the training should be mixed in terms of communities. 5. Investments in kitchen gardens. Target beneficiaries are households with pregnant women and/or with children under 2 years old. Beneficiaries in the camps will receive seeds, soil/fertilizers, and some vertical farming structure or boxes depending on space. Host communities will receive seeds and soil/fertilizers/boxes. An alternative model is to avail a small field for community production. Simple accompanying water harvesting structures (e.g., plastic tanks) may be financed depending on costs. 6. To incentivize investments in nutrition-sensitive food production, processing, and services, beneficiaries under sub-component 2.1 will receive larger grants if their activities are nutrition sensitive, as defined in the Grants Operations Manual. 7. Potable water infrastructure: drinking water is essential for nutrition but in parts of the targeted area (in camps as well as the rest of the communes), clean drinking water is not always available. Further, in camps, rations are too low for households. Depending on the priorities of the communes, investments in potable water infrastructure may be financed under sub-component 1.2. 8. Public systems food infrastructure: Sub-component 1.2 will provide resources for investments in public food systems infrastructure, such as food markets, storage facilities, community mills, etc. The actual investments will depend on the priorities of the individual communities. Figure 2.2: Theory of Change (TOC) for Nutrition under the project Page 57 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 3: Procurement 1. Procurement rules and Procedures: Procurement for works, goods, non-consulting, and consulting services for the Burundi Integrated Community Development Project – “TURIKUMWE” (P169315) will be carried out in accordance with the procedures specified in the “World Bank Procurement Regulations for IPF Borrowers” dated July, 2016 as revised in November 2017 and August 2018 (Procurement Regulations) and the World Bank’s Anti-Corruption Guidelines: Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants (revised as of July 1, 2016), as well as the provisions stipulated in the Financing Agreement. 2. All Goods, Works and Non-Consulting Services will be procured in accordance with the requirements set forth or referred to in Section VI. Approved Selection Methods: Goods, Works and Non-Consulting Services of the “Procurement Regulations”; the Consulting Services will be procured in accordance with the requirements set forth or referred to in Section VII. Approved Selection Methods: Consulting Services of the “Procurement Regulations,” the Project Procurement Strategy for Development (PPSD), and Procurement Plan approved by the World Bank. 3. The Procurement Plan, including its updates, shall include for each contract: (i) brief description of the activities/contracts, (ii) the selection methods to be applied, (iii) the cost estimates, (iv) time schedules, (v) the World Bank’s review requirements; and (vi) any other relevant procurement information. 4. The Procurement Plan (PP) covering the first eighteen (18) months of the project implementation was submitted for and approved by the World Bank prior to project negotiations. Any updates of the Procurement Plan shall be submitted for the World Bank’s approval. 5. The Recipient shall use the World Bank’s online procurement planning and tracking tools (STEP) to prepare, clear and update its Procurement Plans and conduct all procurement transactions. 6. When approaching the national market, the country’s own procurement procedures may be used with the requirements set forth or referred to in the paragraphs 5.3 to 5.6 related to National Procurement Procedures. The requirements for national open competitive procurement include the following: Table 3.1: Requirements for national open competitive procurement Requirements for national open competitive procurement Actions 1. Open advertising of the procurement opportunity at the national No action needed level. 2. The procurement is open to eligible firms from any country. No action needed 3. The request for bids/request for proposals document shall require The form elaborated by OPCS must be that Bidders/Proposers submitting Bids/Proposals present a signed added to each contract agreement with acceptance at the time of bidding to be incorporated in any resulting bidders/consultants contracts, confirming application of, and compliance with, the World Bank’s Anti-Corruption Guidelines, including without limitation the World Bank’s right to sanction and inspection and audit rights. 4. Contracts with an appropriate allocation of responsibilities, risks, and No action needed liabilities. 5. Publication of contract award information. No action needed Page 58 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 6. Rights for the World Bank to review procurement documentation The requirement should be included in and activities. the Procurement Plan. 7. An effective complaints mechanism. The PIM must develop an effective complaints mechanism in line with World Bank Regulations. 8. Maintenance of records of the Procurement Process The PIM must spell out the practical modalities and the appropriate documentation to archive 7. Procurement risk assessment and mitigating measures. The Ministry of Interior, Local Government and Patriotic Formation will be responsible for implementing the project. A PIU will be established within the Ministry of Interior, Local Government and Patriotic Formation under ONPRA. Reporting to the ONPRA Coordinator, the PIU will lead project implementation and be responsible for the coordination and management on the ground and progress reporting. All staff (including key staff such as the National Project Coordinator, Financial Management Specialist, Procurement Specialist, Regional Project Coordinator and Junior Procurement Specialists at the regional level) will be hired through a competitive process. 8. The procurement assessment of ONPRA and the communes shows that: (i) the existing staff have limited procurement skills, and insufficient experience in World Bank procurement procedures; (ii) the tender committee is not trained in World Bank procurement procedures; and (iii) the filing system in place is not adequate. In addition, this will be: (i) the first project to be implemented within the Ministry of Interior, Local Government and Patriotic Formation in Burundi under the World Bank’s New Procurement Framework; and (ii) the first project funded by the World Bank to be implemented by ONPRA. The previous project implemented within the Ministry of Interior, the Burundi Community and Social Development Project (PRADECS, P095211) was governed by the Guidelines and was closed in December 31, 2012. According to the Procurement risk assessment, the following procurement mitigation measures are proposed: Table 3.2 Procurement Risks and Mitigation Measures Implementing Procurement mitigation measures By when agency Recruitment of a Procurement Specialist for the national No later than 3 months after ONPRA PIU effectiveness Recruitment of Junior Procurement Specialist(s) for the No later than 3 months after ONPRA PIU at the Regional level effectiveness Elaborate and submit to IDA for approval a Project ONPRA Effectiveness Implementation Manual with Procurement section Train the Procurement Specialist, the Junior No later than 6 months after ONPRA/WB Procurement Specialist(s) and the tender committee(s) effectiveness in New World Bank Procurement Framework Set-up an acceptable filing system in the PIU at the Needs to be described in the Project ONPRA national and Regional level as well as in the communes Implementation Manual (PIM) 9. The procurement assessment for the new PIU will be conducted and updated during project implementation. The Procurement team shall be trained on procurement regulations project activities. 10. The client submitted a Project Procurement Strategy for Development (PPSD), to the Bank for review (including the procurement plan for the first 18 months) prior to negotiations. The PPSD includes a risk and market analysis and Page 59 of 86 The World Bank Burundi Integrated Community Development Project (P169315) sets out the selection methods to be used by the borrower during project implementation for the procurement of goods, works, and non-consulting and consulting services financed by the World Bank. 11. Procurement Risk Rating. The project procurement risk prior to the mitigation measures is “High”. The risk is reduced to a residual rating of “Substantial” upon consideration of successful implementation of the mitigation measures. 12. Oversight and monitoring arrangements for procurement. A PIM will be developed and will be submitted to the World Bank for review. It will define the project’s internal organization and implementation procedures, and will include, among other things, relevant procedures for calling for bids, selecting consultants, and awarding contracts. The project monitoring arrangements for procurement will be analyzed and developed. 13. Detailed procurement documentation (e.g., the PPSD) may be referenced as such and retained in the project files. The detailed 18-month procurement plan has been published on the World Bank website. 14. Prior review thresholds. All contracts estimated to the following amounts or above will be submitted to the World Bank for prior review: (i) US$5,000,000 for Works, (ii) US$1,500,000 for Goods, Information Technology and Non- Consulting Services; (iii) US$500,000 for Consultants firms; and (iv) US$200,000 for individual consultants. All other contracts shall be archived for procurement post-review. Given the nature of the project, most activities will be subject to post-review. Page 60 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 4: Financial Management 1. A financial management assessment of the implementation arrangements proposed was carried out in November 2019 to assess whether acceptable FM arrangements are in place. The assessment considered the degree to which: (a) reasonable records are maintained and financial reports produced and disseminated for decision making, management, and reporting; (b) funds are available to finance the project; (c) there are reasonable controls over project funds flows; and (d) independent and competent audit arrangements are in place. The FM assessments were carried out in accordance with the World Bank Directive: Financial Management Manual for World Bank Investment Project Financing Operations, issued on February 4, 2015, and latest revision on February 10th, 2017 and the Bank Guidance on Financial Management in World Bank Investment Project Financing Operations, issued and effective February 24, 2015. 2. For the proposed project, it has been agreed that a new PIU will be established under the responsibility of the Ministry of Interior, Local Government and Patriotic Formation, through ONPRA to ensure the day-to-day coordination of the project’s FM activities. 3. The conclusion of the assessment is that the FM risk is assessed as High for the following reasons: • The Ministry of Interior, Local Government and Patriotic Formation, including ONPRA, has no experience managing World Bank-financed projects; • The PIU is not yet established and this new PIU will be managing a large number of transactions; • The inherent country fiduciary risk is considered high increasing the risk of corruption and mismanagement of the project funds; • The limited capacity to coordinate the significant number of agencies involved in implementation; • Lack of qualified and experienced staff within the Ministry of Interior, Local Government and Patriotic Formation to manage the project; • Absence of Project Implementation Manual or procedures to ensure adequate internal control; • Lack of any accounting and financial information system until established by the new PIU. 4. The following mitigation measures are proposed to address some of the issues and fiduciary risks identified: • Experienced FM staff (FMS, one chief of accounting, two accountants, one junior accountant for the regional PIU and an Internal Auditor) will be recruited to coordinate the day-to-day financial activities of the project at the PIU level; • The PIU will acquire an accounting software (TOMPRO highly recommended) to maintain the project accounts and generate all the required financial reports (IFR, Withdraw application, project financial statement); • Develop the Project Implementation Manual (PIM), including includes FM procedures, by the effectiveness date of the project; • The PIU should also develop a manual of procedures to manage the matching grants and the subprojects, • The PIU should open a Designated account (DA) to ensure adequate tracking of the project’s funds; • Recruit an independent audit firm for the audit of the project financial statements (short list and ToRs submitted for World Bank ‘no-objection’) six months after project effectiveness; and • Agree on the IFR format to be used by the project. Page 61 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 5. Once these risk mitigation measures are implemented, the residual risk rating should be Substantial. 6. Staff of the PIU/FM Unit will be responsible for ensuring compliance with the FM requirements of the World Bank, including preparing and submitting quarterly unaudited interim financial reports (IFRs) and audited annual financial statements (AFSs) to IDA. The PIU will maintain adequate FM arrangements to support the deployment of project resources in an economic and effective manner to achieve the stated development objectives. The PIU will be staffed with a FM team comprising: • a qualified and experienced Financial Management Specialist with experience in accounting and financial management (ToRs to be submitted for World Bank ‘no-objection’); • one chief of accounting with experience in accounting in the private sector and/or development partner- financed projects (ToRs submitted for World Bank ‘no-objection’) and mainly with strong experience managing a computerized accounting system; • At least two accountants and two junior accountants (for the regional PIU) to handle the project’s accounting system and records with experience in accounting in the private sector (ToRs submitted for World Bank ‘no-objection’); • A qualified and experienced internal auditor. 7. Planning and budgeting arrangements. The Annual Work Plan and Budget (AWPB), along with the disbursement forecast, will be developed by the PIU with input from different entities involved in implementation both at the central and decentralized levels. Review and approval processes, as well as the budget, will be detailed in the PIM and monitored by the fiduciary unit within the PIU. The FM team should ensure that the annual budget is integrated in the accounting system to ensure automated monitoring of the budget. The quarterly IFRs will be used to monitor the execution of the consolidated AWPB. 8. Accounting arrangements. The current accounting standards in use in Burundi for ongoing World Bank-financed projects will be applicable to the proposed project. A multi-projects software capable of generating reports such as the IFRs, withdrawal applications, bank reconciliations, financial statements, etc. will be purchased. The project code and chart of accounts will be developed to meet the specific needs of the project and documented in the PIM. The FM software should be operational no later than three months after the effectiveness of the project. 9. Internal control and internal auditing arrangements. Key administrative and accounting procedures (including in the PIM), with key internal control procedures from transaction initiation, review, approval recording, and reporting will be developed with clear segregation of duties at the PIU level. The PIM should also include procedures to manage the different Facilitating Partners included in the project. 10. The PIU will need to develop a specific manual of procedures for subprojects management. 11. The PIU/FM staff should ensure that during the implementation of the project, the proposed procedures defined in the PIM are adequately carried out to ensure that funds are used for the intended purposes. Page 62 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Table 4.1. Risk Assessment and Mitigation Measures Conditions for Risk Risk-Mitigating Measures Incorporated into Residual Risk Effectiveness Rating Project Design Risk (Y/N) Inherent risk S S Country level. Burundi is a H The Government is committed to a reform N H high-risk country from the program that includes the strengthening of PFM fiduciary perspective. The PEFA through an IDA project (PRCIEG). This project will (2008, 2014) as well as the UCS enhance the Government’s institutional capacity reports outlined weaknesses in to adopt and use IDA FM procedures. PFM at both the central and decentralized levels. Entity level. The Ministry of H New PIU to be established. The PIU will be staffed N S Interior, Local Government and with experienced staff. The recruitment process Patriotic Formation, including should be transparent. ONPRA, has limited capacity in Accounting system will be purchased and set up. managing World Bank–financed projects. Giving fiduciary responsibility to the civil servants with no experience in managing WB financed projects may undermine the FM performance of the project. Project level. H New PIU to be established. N S The project is complex with several agencies involved Sufficient competent and experienced fiduciary (mainly community staff will be recruited. associations), some are not yet clearly identified at this stage of An existing PIU should provide technical support project preparation, thousands during the transitional period for a maximum of beneficiaries, etc. This may period of 12 months. inherently increase the risk exposure to the transparent A PIM (including FM procedures) will be use of project funds. developed as a condition of effectiveness. The project is highly encouraged to leverage in other existing project arrangement (PDLE) to limit the delay in the setting of the project implementation arrangement. Control Risk S S Budgeting. The AWPB may not H The Project Implementation Manual (PIM) will N S be reliable or may not reflect define the arrangements for budgeting, project needs. Risk of cost budgetary control, and the requirements for overruns and adverse budgeting revisions. variations in expenditure could arise due to potential slow Annual detailed disbursement forecasts and implementation and budget will be required. The IFRs will provide depreciation of local currency. information on budgetary control and analysis of Page 63 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Conditions for Risk Risk-Mitigating Measures Incorporated into Residual Risk Effectiveness Rating Project Design Risk (Y/N) The PIU team may not put in variances between actual and budgeted place appropriate tools to expenditure. monitor the budget and provide reliable information for Accounting software will be installed to facilitate decision making. The difficulty accurate and timely budget monitoring. The for the PIU to produce a annual budget should be integrated in the consolidated annual workplan software. and ensure an appropriate budget monitoring is presenting a potential risk as the project involved many IAs Accounting. Poor policies and S Accounting procedures will be documented in the N S procedures and delays in PIM. The FM functions will be carried out by keeping reliable and auditable qualified staff. accounting records. Accounting processes and transparency will be taken care of during the installation of the new software. Internal control. Weak internal S The PIM will outline procedures for internal N S control system because of a control that will be applied and monitored by the lack of clarification of the roles project. Also, FM supervision and capacity- and responsibilities of key strengthening activities will contribute to players involved in project mitigate the risk relating to internal control. management. Staff well-versed in World Bank FM procedures The large number of players will be recruited. and beneficiaries poses key risks. An internal auditor will be appointed. Funds flow. The risks include H Experienced staff familiar with disbursement N S delays in disbursing funds to procedures to be recruited. finance project activities and delays in the replenishment of The project will use digital payment mechanisms the DA. (mobile money or cash transfer) to ensure that money will reach the targeted beneficiaries. The project will pay a large number of beneficiaries. A separate bank account should be opened by the implementing agency. As the Designated Account is capped, the PMU may face Frequent implementation support by the World delays in paying invoices from Bank Financial Management Specialist (FMS), if suppliers with large amounts, required. particularly overseas. The PMU will have the option of using the direct payment method to settle large invoices from suppliers who are abroad. Page 64 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Conditions for Risk Risk-Mitigating Measures Incorporated into Residual Risk Effectiveness Rating Project Design Risk (Y/N) Financial reporting. Inaccuracy S The project will acquire new software to allow N S and delays in the submission of automatic generation of more reliable and IFRs. accurate information. The IFRs and financial statement formats and contents will be agreed. FM staff with required skill, experience, and competencies will be recruited to coordinate the project activities. Comments provided by the World Bank during reviews of the reports will help improve their quality. Auditing. Poor quality audit. S Only qualified audit firms will be short-listed. N M Delays in submitting financial audit reports. The Terms of Reference (ToRs) for the auditor as Delays in the implementation well the short list will be reviewed by the World of audit recommendations. Bank. IFRs will be produced on a quarterly basis and the project financial statements will be made available by three months after the end of the fiscal year. Governance and H (a) PIM, including FM Procedures Manual, will be Y for (a) S accountability. Possibility of developed for the implementation of the circumventing internal control activities of the project; (b) robust FM and abuse of administrative arrangements will be designed and operating positions are potential risks; effectiveness monitored during FM misprocurement and so on, is a implementation support missions; and (c) critical issue. measures will be taken to improve transparency, such as providing information on the project status to the public; and (d) FM supervision will be increased, if necessary. OVERALL FM RISK H S Note: H = High; S = Substantial. 12. Reporting arrangements. The PIU will record and report on project transactions and submit IFRs to the World Bank no later than 45 days after the end of each calendar quarter. At a minimum, the financial reports must include the following tables with appropriate comments: (a) Sources and Uses of Funds; (b) Use of Funds by Project Activity/Component and comparison between actual expenditures and budget; (c) Use of Funds by Project categories (refer to Financial Agreement) and comparison between actual and cumulative expenditures and budget; (d) DA activity statement; and (e) notes to the IFR. 13. The PIU will be responsible for collecting and record all the financial information and preparing the consolidated IFRs. Page 65 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 14. At the end of each fiscal year, the project will issue the project financial statements, comprising (a) a balance sheet; (b) a statement of Sources and Uses of Funds; (c) Statement of Budget execution; (d) accounting policies and procedures; and (e) notes related to significant accounting policies and accounting standards adopted by management and underlying the preparation of financial statements. 15. External auditing arrangement. An independent and qualified external auditor will be recruited based on ToRs acceptable to the World Bank. The external audit will be carried out according to International Standards on Auditing (ISA) and will cover all aspects of project activities implemented and include verification of eligibility of expenditures and physical verification of goods and services acquired. Audit reports must be submitted to IDA within six months after the end of each fiscal year. The project will comply with the World Bank disclosure policy of audit reports (for example, making them publicly available promptly after receipt of all final financial audit reports, including qualified audit reports) and disclose the report on the official website within one month after the final version is accepted. 16. Funds flow arrangements. Funds will flow from the grant account to the DA opened at the Central Bank by the Government in US dollars. For payments in local currency, the PIU should open a DA in Burundian francs at the Central Bank or any commercial bank. This local currency account will be replenished from the DA in USD or will serve to capture revenue resulting from the sale of bidding documents and balances on expenses not entirely spent. 17. All the project funds should be centralized at the PIU level. The regional PIU may hold a petty cash to cover small expenses. 18. The PIU is encouraged to use digital payment (mobile money or cash transfer) to ensure that final targeted beneficiaries are effectively reached. 19. The World Bank may also make direct payments when necessary and if requested by the government. 20. Governance and accountability. The risk of fraud and corruption within project activities is substantial, given the country context, the nature of the project (including local government entities and community associations undertaking procurement) and a large number of agencies involved in implementation. The effective implementation of the proposed fiduciary mitigation measures should help strengthen the control environment. 21. FM Action Plan. An Action Plan has been developed to mitigate the FM risks and is described in Table 4.2. Table 4.2. FM Action Plan No. Action Due By Responsible 1 Recruit a qualified and experienced Finance No later than three Government Specialist (RAF) and at least 2 accountants months after project (accountant + an assistant). effectiveness 2 Develop the Project Implementation Manual that By the effectiveness Government includes FM procedures. date of the project 3 Acquire accounting software (Tompro) package to No later than three PIU maintain the project accounts. months after project effectiveness Page 66 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 4 Recruit independent firm for the audit of project No later than six months PIU financial statements (short list and ToR submitted after project for World Bank ‘no-objection’). effectiveness 5 Opened a Designated Account at the BRB After effectiveness PIU 6 Develop a manual of procedures to manage the Effectiveness PIU matching grants and the subprojects. 22. Implementation support plan. The project will be supervised on a risk-based approach. Implementation support missions will be conducted over the project’s lifetime. Supervision will cover but not be limited to the review of the audit reports and IFRs and advice to the task team on all FM issues. Based on the current residual risk rating (Substantial), the project will be supervised at least twice a year and may be adjusted as needed. Table 4.3. Implementation Support Plan FM Activity Frequency Desk reviews IFR review Quarterly Audit report review of the program Annually Review of other relevant information such as interim Continuous as they become available internal control systems reports On-site visits Review of overall operation of the FM system Semiannually (implementation support mission) Monitoring of actions taken on issues highlighted in audit As needed, but at least during each implementation reports, auditors’ management letters, internal audit, and support mission other reports Transaction reviews (if needed) As needed Capacity-building support FM training sessions by World Bank FM team Following the project transition and thereafter, as needed 23. Disbursements. A Designated Account (DA) will be opened at the Burundi Central Bank on terms and conditions acceptable to IDA under the fiduciary responsibility of the PIU. Replenishments to the DA will be made against withdrawal applications supported by Statements of Expenditures or records and other documents as specified in the Disbursement Letter. 24. Upon project effectiveness, transaction-based disbursements will be used. The option to disburse against submission of quarterly unaudited IFRs (also known as report-based disbursements) could be considered subject to the quality and timeliness of the IFRs submitted to the World Bank and the overall FM performance as assessed in due course. 25. The other methods of disbursing funds (reimbursement and direct payment) will also be available to the project. The project will have the option to sign and submit withdrawal applications electronically using the e-Signatures module accessible from the World Bank’s Client Connection website. Details will be provided in the PIM. Page 67 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 26. In addition to the DA, the project will open an account denominated in Burundi francs at the Central Bank or a commercial bank to capture revenue resulting from the sale of bidding documents and balances on expenses not entirely spent. Figure 4.1. Flow of Funds IDA DA, US$ (Central Bank managed by the PIU) DA, BIF (BRB or commercial bank managed by the PIU) Goods and service providers and others, on the basis of contracts and with payment both in BIF and forex Page 68 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 5: Economic and Financial Analysis 1. This economic and financial analysis of "TURIKUMWE" was conducted using a cost-benefit analysis and a comparison of the situation with and without the project. The financial analysis was conducted at the level of the households that will benefit from the project grants to create and/or develop their individual microenterprise as well as the economic activities of the associations. These microenterprises or economic activities at the level of associations will generate income that will contribute to strengthening the resilience of the populations in the targeted areas, particularly women and young people, against poverty and food and nutritional insecurity. Targeted activities for the development of financial models are frequently practiced in the project area and are therefore likely to be requested by the populations and associations targeted by the project that may be interested in creating or developing individual microenterprises or economic activities at the level of associations. Financial analysis also allows the financial viability of investments promoted at the level of individual microenterprises and associations to be measured. Financial sustainability was measured through financial results (gross margins, IRR, NPV, time to return on investment (ROI) and profits/costs). 2. The economic analysis was conducted at the level of the entire north-eastern region of Burundi. It was based on the socio-economic benefits derived from improving the access of households in the project area to basic social services through the establishment/rehabilitation of social infrastructure and facilities (health centers, schools, access roads and bridges, water supply and sanitation systems, product storage/preservation facilities, sports and cultural centers, etc.), as well as access to improved diet at the level of the households in the target communes (vegetable or hut gardens, micronutrient powder (MNP) for children and folic acid for pregnant women, training on hygiene and the composition of dishes and menus in particular). The socio-economic benefits identified as 'with project' versus 'without project' include a higher number of healthy women and youth engaged in economic activities, thus contributing to wealth creation in the project area. This benefit is the result of the improved survival rate of women in childbirth and young children. This performance is mainly explained by the number of lives of pregnant women and young children spared from premature death. The economic analysis helps to understand socio-economic viability through the SORT, NPV and B/C, among others. 3. Environmental sustainability was analyzed in terms of the volume of carbon dioxide sequestered and/or avoided through the project action. 4. The "TURIKUMWE" project is designed to help remove constraints that limit peaceful coexistence and social cohesion between host communities and refugees in the north-east of Burundi. These constraints include (i) poverty rates (85.4, 83.5 and 79.5 percent respectively for the provinces of Ruyigi, Muyinga and Cankuzo), which are higher than the national average of 64.9 percent; (ii) degradation and scarcity of land resources; (iii) high population density; (iv) isolation of centers of economic activity; (v) food and nutritional insecurity; and (vi) limited access to infrastructure and basic services. The presence of refugees in the region has exacerbated these constraints by causing environmental damage, straining basic services, depopulating livestock and fisheries resources and creating competition for basic resources such as water and firewood. This situation has sometimes led to tensions between the two communities. 5. The overall objective of the project is to contribute to improving nutrition, access to basic services and economic opportunities in the targeted areas. This annex is divided into three sections: (i) beneficiaries and benefits; (ii) financial analysis; and (iii) economic analysis. Page 69 of 86 The World Bank Burundi Integrated Community Development Project (P169315) A. BENEFICIARIES AND BENEFITS Beneficiaries 6. The beneficiaries are the twenty-one (21) communes, one hundred (100) associations and 12,000 households that will obtain batches of micronutrient powder (MNP) and folic acid, of which 8,000 will be supported to create a vegetable garden, and 2,000 individuals as microentrepreneurs. The communes will benefit from the project grants for the establishment of basic socio-economic infrastructure and equipment as part of the implementation of commune development plans. These include health centers, schools, water supply and sanitation systems, infrastructure for storage/preservation/consolidation of products, tracks and works for the disengagement of communes, port and youth culture centers, etc. 7. Associations will have access to project grants to undertake/develop economic activities that help members build resilience against poverty and food and nutrition insecurity. 8. Individuals will benefit as microentrepreneurs from the project's cost-shared grant to create/develop microenterprises that will help them increase their income and invest in improving food and nutritional security and participate in the maintenance and upkeep of the socio-economic infrastructure put in place. Benefits 9. Although all activities under the Project are demand driven and have not pre-identified the investments it will finance, consultation with the beneficiaries to identify needs have informed this analysis and have led to the following hypotheses in terms of direct benefits: Under communal management: ✓ 12 Schools of 3 classes with latrine, water tank and solar energy (2.4kw) built/rehabilitated and equipped; ✓ 4 Health centers with at least 20 beds with personal health housing and solar energy (4kw) built and equipped ✓ 140 km of access roads built/rehabilitated ✓ 10 rural markets with latrines, water supply and sanitation system, storage facilities, about 100 stalls and 10 shops built/rehabilitated ✓ 40km of water and sanitation network built/rehabilitated ✓ 9 storage warehouses built/rehabilitated ✓ 17 multi-purpose youth centers (sport and culture) built/rehabilitated Under associative management: ✓ 205Economic initiative projects promoted 41 Under management of microentrepreneurs ✓ 1853 micro-enterprises promoted42 Under household management ✓ 8000 vegetable gardens with rainwater storage tank installed 41 Turnover calculated on the basis of the financial envelope allocated in the PSA to the economic initiatives of the associations reduced to the cost of the business plans of the financial models selected. 42 Turnover calculated on the basis of the financial envelope allocated in the PAD to individual microenterprises reduced to the cost of their business plans using the financial models selected. Page 70 of 86 The World Bank Burundi Integrated Community Development Project (P169315) B. FINANCIAL ANALYSIS Calculation Assumptions 10. Three hypotheses have been formulated around prices, inputs and speculation. Prices of inputs and products from vegetable gardens, economic initiatives of associations and individual microenterprises 11. In the Republic of Burundi, input and output prices are free. They are determined by the law of supply and demand. 12. Prices. The prices used in this document were collected on the market during the evaluation mission or were provided by the service providers involved in the implementation of the projects (COPED, Youth Employment Programme, PRODEMA, PRODEFI). They are included in the technical-economic data sheets of the financial models that are likely to be promoted within the framework of this project. 13. Inputs. These include orange-fleshed sweet potato cuttings, wheat flour, cow's milk, bee swarms, quality vegetable seeds for vegetable gardens, brooding hens and roosters, manure, small agricultural and zootechnical tools. They also include the technical and economic data sheets of the financial models promoted by the project. 14. Targeted agropastoral speculation. They are: orange-fleshed sweet potato, frequently consumed vegetable crops (amaranth, tomatoes, onion, cabbage, carrot), cow's milk, poultry, beekeeping, bakery, local rural transport. Financial models and their major characteristics 15. The technical and economic information collected made it possible to develop financial models used for the economic and financial analysis of the project. These are the following models: Table 5.1: Financial models developed Financial models developed Major characteristics Poultry breeding 10 hens, 4 broods per year; 10 chicks per brood, 95% live weight (1) Orange-fleshed sweet potato 1ha for 4 associations of 25 members each, 0.01ha per member (2) production Beekeeping 10 Langstroth hives; 25kg of honey per hive per year (2) Local rural transport 1motorcycle with bodywork; 6 trips per day, 500kg per trip (3) Bakery 2 bags of 50kg flour per day, 7 loaves of bread per kg flour (1) Cheese production 20 cans of 25l of milk/day, 240 days of activity/year, 23kg of cheese per can (3) Source: project evaluation mission of November-December 2019 based on data from AFORGER (1) 43, COPED (2), 44 and PRODEFI (3).45 43 GERME Trainers Association of Burundi 44 Council for Education and Development 45 Sector Development Program Page 71 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Situation of farms/microenterprises Poultry breeding 16. Situation without project. The operator makes overall use of lower-performing broodstock purchased on the markets. Generally, poultry are not vaccinated and do not take anti-parasites. They are less prolific and have a low rate animal survival (about 60 percent per year). The operator receives little or no advisory support, training or financing to improve their cash flow. One of the characteristics of these farms is that their performance (productivity and competitiveness) has not changed much over many years. 17. Situation with project. The farmer uses high-performing broiler hens and roosters purchased from the farms targeted for their performance. Poultry are vaccinated and take anti-parasites. They are prolific and have a high rate of live animals (more than 90 percent per year). The operator benefits from advisory support, training and financing to improve their cash flow. These farms are characterized, among other things, by an optimal evolution of their performance (productivity and competitiveness). Orange-fleshed sweet potato 18. Situation without project. The farmer has access to cuttings from previous harvests or purchased on the market and uses unsuitable cultivation practices characterized, among other things, by poor control of water and soil conservation methods. These practices expose bare soil to runoff, which, due to its high velocity and flow rate, causes loss of arable land and soil fertility as well as erosion in watersheds. Usually the working tool is completely worn out. These farms receive little or no support in terms of advice, training and financing to improve their cash flow. Their performance (productivity and competitiveness) is low. 19. Situation with project. The cuttings used are improved and the farm equipment is of good quality. Farms have access to training and technical and economic advisory support (farm management, restoration and management of soil fertility) and commercial support (grouped sales, better access to profitable markets, increased capacity to negotiate with input suppliers and product buyers). They receive support to ensure that they comply with the technical itineraries recommended by extension and research, and the organization and operation of farms are strengthened. This support from the project contributed to the increase in returns and guaranteed the achievement of objectives, particularly in terms of returns (at least 50 percent with project than without project). Beekeeping 20. Situation without project. Beekeepers use traditional hives and do not plant honey-bearing species, forcing bees to travel long distances in search of the nectar and water needed for honey production. These beekeepers receive little or no support in terms of advice, training and financing to improve their cash flow. Their performance (productivity and competitiveness) is low. Losses are significant due to the difficulty of access to the hives and honey harvesting. 21. Situation with project. Beekeepers use modern hives that are large capacity and easy to harvest. They set up the hives near water sources and the honey species they install to limit the distance the bees have to travel. Beekeepers have the necessary equipment adapted to the installation, monitoring and harvesting of honey. They have access to training and technical and economic advisory support (operation and management, restoration and Page 72 of 86 The World Bank Burundi Integrated Community Development Project (P169315) management of hives) and commercial support (group sales, better access to remunerative markets, increased negotiating capacity with input suppliers and product buyers). This support enables beekeepers benefiting from the project to increase their honey production by more than 60 percent compared to the situation without the project, from 15kg to 25kg of honey per year. Local rural transport 22. Situation without project. Local transport is by bicycle carrying a maximum of about 100 kg per trip and two trips per day. The activity is strenuous and causes various ills. Cyclists receive little or no support in terms of advice, training and financing to improve their cash flow. Its performance (productivity and competitiveness) is low. 23. Situation with project. The local transport is done with the help of motorcycle tricycle with bodywork that can carry five bags of about 100 kg per trip, six trips per day can be insured. The productivity gain is significant and the drudgery of the work is low. The carrier benefits from advisory support, coaching, specific technical training on the activity and in management and marketing, financing that improves its cash flow. The transport equipment is in good working order and causes less arduous work. Artisanal bakery 24. Situation without project. Two 50kg bags or 100kg of wheat flour are transformed into bread and 10 loaves are produced per kg of flour with the quantity of water used being 75 percent. The equipment is worn out and the baker receives little or no support in terms of advice, training and financing to improve their cash flow. Its performance (productivity and competitiveness) is low. 25. Situation with project. 100kg of wheat flour will be transformed into bread with 65 percent water and 15 loaves per kg of flour. The baker benefits from advisory support, coaching, specific technical training on the business and in management and marketing, and financing that improves his cash flow. The bread production equipment is in very good working order, efficient and resilient. It causes less drudgery at work. It increases production by at least 50 percent compared to the situation without the project. Cheese making 26. Situation without project. The associations collect and resell the milk. They receive little advisory support, training and self-financing for their activities. They collect and resell their members' milk obtained on supplier credit. Losses are high due to poor collection, transport and storage conditions. 27. Situation with project. The associations have high-performance equipment for processing milk into cheese, with a processing rate of 23kg of cheese for 25l of milk. Transport, storage and processing conditions are improved, making it possible to produce quality cheeses. Cheese manufacturers benefit from advisory support, specific technical training on the activity, in management, marketing and negotiation, financing that improves their cash flow at the beginning or during the development of the activity. The support has enabled associations and microenterprises to record encouraging financial results. Page 73 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Key Financial Results 28. These are gross margin, internal rate of return (IRR) before financing, IRR after project financing, IRR with project, net present value (NPV), return on investment. Gross margin 29. The gross margin in 'situation without project' and 'situation with project' is summarized in the table below: Table 5.2: Gross margin (situation "without project" and situation "with project") Financial Models Gross margin (US$) without project with project Poultry breeding -217 784 Orange-fleshed sweet potato production 1 144 2 684 Beekeeping 359 616 Local rural transport 1 443 2 092 Bakery 9 989 11 930 Cheese production 12 781 17 677 Source: drawn up by the project evaluation mission of November - December 2019. 30. Analysis of the data in the above table shows that, compared to the situation without the project, the "TURIKUMWE" project will help to significantly improve the income of the associations and microenterprises benefiting from its support by at least 19 percent. These results can be explained by a mastery of techniques for conducting the promoted activities, improved access to quality inputs and equipment and to markets at remunerative prices, a reduction in post-production losses, etc. Internal rate of return (IRR) 31. IRR before financing is the intrinsic internal rate of return. The analysis shows that the targeted activities are cost-effective, even without project funding. Project financing (IRR after financing) improves profitability. Figure 5.1 Internal Rate of Return Before and After Project Financing 100% 80% 60% 40% 20% 0% Poultry Orange-fleshed Beekeeping Local rural Bakery Cheese breeding sweet potato transport production production IRR Before Project IRR After Project Page 74 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 32. For all the financial models that could be promoted, the IRRs after funding (post-grant) are higher than those before funding, as shown in the graph above. The project injects financial resources into the start-up or development of the activity and, thus, helps the promoter to establish or further develop their activity. This shows the relevance of the grant provided by the project. Net present value (NPV) 33. The table below shows that as a result of the project, the NPV of the targeted financial models is at least US$509 for poultry farming. The largest NPV is US$24,192 for the bakery financial model. Table 5.3: Net present value of different financial models Financial Models NPV (US$) Poultry breeding 509.20 Orange-fleshed sweet potato production 4,523.10 Beekeeping 1,143.80 Local rural transport 4,849.70 Bakery 24,192.30 Cheese production 825.20 Source: drawn up by the project evaluation mission of November - December 2019. Return on investment (ROI) 34. ROI is analyzed from the cumulative cash flows. The table below shows that the return on investment is made during the implementation of the project. It is in the fourth year for the financial models for beekeeping, local rural transport, bakery and cheese and in the fifth year for the financial models for poultry breeding and orange-fleshed sweet potato production. Table 5.4: Cumulative cash flows Financial YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Models Poultry -943840 -798274 -377416 -34057 350802 733660 820019 1199877 1579736 1916095 breeding Orange-fleshed -4387506 -5533912 -569318 -1804724 3159870 8124464 6889058 11853652 16818246 15582840 sweet potato Beekeeping -2709300 -1735350 -635150 245050 945250 1479450 1929650 3069850 3770050 4260250 Local rural -7930000 -5932000 -2062000 1808000 5678000 2548000 6418000 10188000 14058000 17928000 transport Bakery -17397350 -15104700 -6973300 6996850 20967000 34937150 48907300 53077450 67047600 81017750 Cheese -1755048 -1238960 -685304 201136 886576 1475016 2135456 2966896 3652336 4534776 production Source: drawn up by the project evaluation mission of November - December 2019. 35. The implementation of the targeted financial models required new skills and additional expenditures. However, the financial results of the productive investments made within the framework of the project at the level of individual micro-entrepreneurs and at the level of associations/cooperatives are financially encouraging. As a result, they have generated products sold at prices above the cost of production and more preferred by consumers than those of competitors. Page 75 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 36. The funding mechanism, "shared cost subsidy" set up under the project will lead to improvements in IRR, gross margin and NPV. In a project-based situation, these results are all higher than in the non-project situation for all financial models promoted within the project. 37. The financing facility that will be promoted under the project will also help to address cash flow needs at the start of operations in an environment where access to bank credit and non-bank financing institutions is limited, particularly for the benefit of rural activities. Measures to further tighten the targeting/selection of beneficiaries will be crucial to ensure their financial and economic viability. C. ECONOMIC ANALYSIS Economic benefits 38. Quantifiable economic benefits. More specifically, the quantifiable economic benefits that were considered in the economic analysis are presented in the table below. Table 5.5 : Economic Benefits Indicators Years Total 2021 2022 2023 2024 2025 Mothers prevented from dying 615 1270 1957 2685 3451 9978 early in childbirth (number) Children under one year of age 103 140 289 445 611 1588 saved from early death (number Children under one year of age 1853 2366 4864 7502 10280 26866 spared from stunting Source: drawn up by the project evaluation mission of November-December 2019 based on the hypotheses developed in the project to improve mother and child nutrition.46 Assumptions for economic analysis 39. From an economic point of view, the assumptions adopted for the 'situation with project' are as follows: (i) the economic costs were generated using Costab; (ii) a discount rate of six percent corresponding to the long-term capital interest rate; (iii) a Gross Domestic Product per capita of USD 320 in 2017; (iv) an annual GDP growth rate of one percent,47 a percentage contribution of wages to GDP of 30 percent48 and a female employability rate of 80 percent.49 40. The number of healthy women and young people who are engaged in economic activities and thus participate in the creation of wealth in the project area is higher in the 'project situation' than in the 'non-project 46 Burundi Maternal Child Nutrition Enhancement Project (P157993) 47 https://www.afdb.org/en/countries/east-africa/burundi/burundi-economic-outlook/ 48 Lübker, M. 2007. Labour Shares. Geneva: Policy Brief, Policy Integration Department, International Labour Organization. 49 ILO estimates - https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?locations=BI Page 76 of 86 The World Bank Burundi Integrated Community Development Project (P169315) situation'. This benefit is the result of the improvement in the life rate of women in childbirth and young children (under one year). Economic results 41. Based on these assumptions, the Net Present Value (NPV) is approximately US$37.9 million and the Economic Internal Rate of Return (EIRR) of the project is approximately 11.3 percent, as shown in the table below. Table 5.6: Sensitivity analysis according to economic calculation assumptions Calculation assumptions IRR NPV (US$) B/C Basic Assumption 11.26% 37,943,622.45 2.25 If 20% cost increase 9.8% 31,853,441.70 1.74 If profits fall by 20%. 9.5% 24,264,717.21 1.80 If profits fall by 20% and costs rise by 20% 8.3% 18,174,536.47 1.39 If addition of socio-economic benefits and 11.27% 37,977,011,36 3.74 carbon value Socioeconomic Discount Rate 6% 42. The sensitivity analysis is based on a 20 percent increase in costs and a 20 percent decrease in benefits and a 20 percent increase in costs and a 20 percent decrease in benefits shows an IRR of 9.8 percent, 9.5 percent and 8.3 percent respectively, corresponding to NPVs of US$31.8 million, US$243.3 million and US$18.2 million respectively. These results (NPV and TRIE) are encouraging but their analysis shows that the project will suffer more from falling benefits than from rising costs. Page 77 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 6: Greenhouse Gas Accounting 1. Corporate mandate. In its 2012 Environment Strategy, the World Bank has adopted a corporate mandate to conduct greenhouse gas (GHG) emissions accounting for investment lending in relevant sectors. The ex-ante quantification of GHG emissions is an important step in managing and ultimately reducing GHG emissions and is becoming a common practice for many international financial institutions. 2. Methodology. To estimate the impact of agricultural investment lending on GHG emissions and carbon sequestration, the World Bank has adopted the Ex-Ante Carbon-balance Tool (EX-ACT), which was developed by the Food and Agriculture Organization of the United Nations (FAO) in 2010. EX-ACT allows the assessment of a project’s net carbon-balance, defined as the net balance of CO2 equivalent GHG that were emitted or sequestered as a result of project implementation compared to a without project scenario. EX-ACT estimates the carbon stock changes (emissions or sinks), expressed in equivalent tons of CO2 (tCO2-eq) per hectare and year. 3. Project boundary. The Implementation area in Burundi refers to North East region; Ngozi, Cankuzo, Ruyigi, and Muyinga districts. The GHG-related activities are listed below. a. Honey production afforestation: bee keeping as an activity and 3 ha of afforestation connected with this is assumed. b. Improved agricultural practices on orange-fleshed sweet potato production: without project scenario refers to maize with traditional practices; with project scenario refers to range-fleshed sweet potato with CSA practices without burning. c. Fertilizer application: lime, N-fertilizer, P-fertilizer and manure will be applied under project. d. Fuel and oil consumption: 18 m3 per year of Gasoil/Diesel will be used under project. e. Construction of infrastructure: including 51 m2 for new school buildings (concrete); new health centers (concrete); and markets or storage (agricultural building). 4. Data sources. Project team 5. Key assumptions. Burundi has tropical climate with moist moisture regime. The dominant soil type is LAC. The project implementation phase is 5 years and the capitalization phase is assumed to be 15 years. The 20 years implementation period is standard in the use of EX-ACT. 6. Results. The net carbon balance quantifies GHGs emitted or sequestered as a result of the project compared to the without project scenario. Over the project duration of 20 years, the project constitutes gross GHG emissions -425 tCO2-eq, net GHG emissions -674 tCO2-eq. The project provides a sink of 34 tCO2-eq per year, equivalent to 3.7 tCO2-eq per ha per year. The main carbon sinks are primarily from afforestation, land use change and improved practices. Page 78 of 86 The World Bank Burundi Integrated Community Development Project (P169315) Table 6.1: Results of the ex-ante GHG analysis Over the economic project lifetime (tCO2 eq) Annual average (tCO2 eq/ year) Gross GHG emissions of Gross emissions GHG emissions of Net GHG emissions of Net GHG Project without project of project without project emissions project emissions activities scenario scenario scenario (2-1) scenario (4-3) (1) (2) (3) (4) Afforestation 0 -700 -700 0 -35 -35 Annuals to 0 -418 -418 0 -21 -21 perennials Improved practices on 0 -784 -784 0 -39 -39 perennials Inputs & 250 1,477 1,227 12 74 61 Investments Total 250 -425 -674 12 -21 -34 Per ha 28 -47 -75 1.4 -2.4 -3.7 Page 79 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 7: Gender Analysis Identified gender gap: The risk of GBV and related harmful norms and attitudes pose multiple and mutually reinforcing constraints on women’s agency, creating a barrier in women’s ability to improve household nutrition, their own health, their ability to ensure survival of their children, their participation in the labor market, and their voice in decision-making for development. 1. Burundi has a progressive legal and policy framework for gender equity, including the National Gender Policy 2012-2025, with laws prohibiting domestic violence, marital rape and sexual harassment. However, despite gender equality being part of the formal legal system, Burundian women face significant obstacles. 2. Women and girls are vulnerable to gender-based violence (GBV), with many cases going unreported, including physical violence; denial of resources, opportunities and services; rape; forced marriage; sexual assault; and emotional violence. Nearly half (47 percent) of Burundian women report having experienced physical or sexual intimate partner violence (IPV), nearly a quarter of women (23 percent) report having experienced sexual violence in their lifetime, and 62 percent of women believe that a man is justified in beating his wife in at least one household scenario, all of which are higher than average for the Sub-Saharan Africa region. Nearly a quarter of women report being married before the age of 18 (23 percent).50 Women and girls with few economic opportunities (such as single mothers, women traders, orphaned or vulnerable children, women with disabilities, out-of-school girls, refugee women and girls) may engage in transactional or coerced sex to meet their survival needs, or the survival needs of their families.51 3. Eighty percent of Congolese refugees in Burundi are women and children.52 On top of the high existing levels of GBV in Burundi and in their host countries (mainly the Democratic Republic of Congo), many forms of GBV are significantly aggravated during humanitarian emergencies and throughout the different stages of displacement, including in camps.53 Gender inequality is not left behind when women and girls are forced to flee their homes. In situations of displacement, women and girls are among the most vulnerable, facing a number of challenges including extreme poverty, lack of access to basic infrastructure, services and livelihoods. 4. Where access to food is inadequate, women and girls—who most often shoulder the burden of finding and collecting fuel, water and food—may venture to unprotected areas where they are at heightened risk of sexual abuse, including forced and/or coerced prostitution.54 Nearly 60 percent of key informants indicate that water collection points and firewood are at risk areas for women.55 This risk is present for women both in refugee camps and in host communities, though may be heightened in refugee camps that are located farther from local sources. 50 2016-2017 Demographic and Health Survey in Burundi 51 Victoria Rames, Clémence Bununagi, and Caritas Niyonzima (2017) USAID/Burundi Gender Analysis Report. Prepared by Banyan Global. 52 UNHCR (2018). Congolese Situation: Responding to the needs of displaced Congolese and Refugees. Annex – Burundi. Supplemental Appeal. http://reporting.unhcr.org/sites/default/files/2018%20congolese%20Situation%20SB%20-%20Burundi.pdf 53 IASC (2015). Guidelines for integrating gender-based violence interventions in humanitarian action: reducing risk, promoting resilience and aiding recovery. 54 IASC (2015). Guidelines for integrating gender-based violence interventions in humanitarian action: reducing risk, promoting resilience and aiding recovery. 55 UNOCHA (2019). Burundi Humanitarian Needs Overview. Page 80 of 86 The World Bank Burundi Integrated Community Development Project (P169315) 5. Holistic, survivor-centered GBV services (including psychosocial, medical, legal, etc.) are considered essential in humanitarian contexts as part of a humanitarian response. In host communities, GBV services are generally limited, and an influx of refugees likely would introduce a strain on any existing services, creating the need for additional services to meet the increased demand. Often faced with exclusion, discrimination, stigmatization or retaliation, survivors of such violence are often discouraged from denouncing and therefore do not receive the assistance they need. In 57 percent of the collines surveyed in 2018, internally displaced women and girls assert that they cannot report cases of GBV without fear of reprisals.56 6. The same gender discrimination and gender inequality that drives GBV also manifests in harmful norms and attitudes that pose multiple and mutually reinforcing constraints on women’s agency. While a 2017 gender analysis57 highlighted a number of gains on structural gender equity, several important gaps were identified also, including: (a) difficulties in achieving socio-economic empowerment. Burundian women are disadvantaged in the labor market where, especially in rural areas, they tend to be confined to lower paid employment in the informal sector in lower productivity, wage, and low-skilled jobs that do not help realize the demographic dividend. Women commonly engage in unpaid agricultural labor on family farms and have limited access to appropriate technologies58 and formal credit. (b) lower rates of education. While higher level of education of mothers is also associated with greater autonomy, delayed marriage, lower demand for children, and improved child health,59 fewer women than men complete secondary school in Burundi (25 percent vs 30 percent) and the illiteracy rate remains higher among women (68 percent) than men (79 percent).60 Girls are particularly affected by school drop- out (less than 30 percent of refugee girls attend secondary school).61 Uneducated, they are at greater risk of protection, whether from gender-based violence, human trafficking or early pregnancy. High fertility also limits girls’ education, and hence their workforce participation. In refugee camps, female refugees generally have lower educational attainment and fewer income-generating opportunities than in host communities. (c) exclusion of women from planning and decision-making for development. Women report that GBV is a risk when participating in activities outside of the house: 39 percent of women report that a man is justified in beating his wife if she goes out without telling him. With respect to sociocultural norms in the public sphere, the man is meant to represent the entire family in all domains, both in- and outside of the home. Women traditionally are not called upon or expected to speak in public, and this is especially true in rural areas. A Burundian saying goes, “Nta nkokokazi ibika isake iriho” (the hen does not sing when the cock is present). (d) inequitable access to assets and low control over domestic resources within the household. For instance, only 17 percent of landowners in the country are women, and 30 percent of women report that they do not have a say in decisions related to major household purchases.62 Even the assets that women can access, such as informal credit through community based savings and loans groups, women rarely have control over the use of that credit at the household level. For example, men in some cases may use 56 IOM (2018). Burundi Displacement Tracking Matrix | DTM Dashboard – September 2018. 57 Victoria Rames, Clémence Bununagi, and Caritas Niyonzima (2017) USAID/Burundi Gender Analysis Report. Prepared by Banyan Global. 58 UNOCHA (2019). Burundi Humanitarian Needs Overview. 59 World Bank (2018). Demographic Challenges and Opportunities in Burundi (Unpublished). Washington, D.C.: World Bank Publications. 60 2016-2017 Demographic and Health Survey in Burundi 61 UNOCHA (2019). Burundi Humanitarian Needs Overview. 62 2016-2017 Demographic and Health Survey in Burundi Page 81 of 86 The World Bank Burundi Integrated Community Development Project (P169315) household resources, including the agricultural harvest, to buy alcohol or meat for themselves rather than choosing to use the harvest to benefit the household as a whole. In addition, women lack access to formal inheritance rights, and traditional inheritance rights are enforced unevenly. (e) inadequate control over household health and nutrition decisions. For example, more than a quarter of women (28 percent) do not have a say in decisions related to their own health care. GBV is a risk for women when engaging in household activities related to nutrition: 22 percent of women report that a man is justified in beating his wife if she burns the food.63 More nutritious food is often allocated to male family members, where families may sacrifice female children’s nutrition in order to meet the needs of male children. 64 65 GBV Risk Assessment Screening Tool 7. This project has been scored as moderate risk according to the Gender Based Violence (GBV) Risk Assessment Screening Tool using available information. Country-level factors that contribute to this risk level include high prevalence of intimate partner and sexual violence, and high accepting attitudes toward gender- based violence. Project-level factors that increase potential GBV risks are related to the location of planned project activities in areas affected by humanitarian crisis, and that are particularly poor and rural. While the project entails medium infrastructure construction and minimal labor influx, construction and rehabilitation works will likely place male and female workers in close proximity with limited supervision and will also likely involve close proximity of workers to areas that women and girl community members frequent for the daily activities, such as a school route or health center. Both of these characteristics may increase the risk of sexual exploitation and abuse by male project staff. In addition, while providing women access to livelihoods opportunities may help achieve an increase in income; women’s independence, empowerment and status in the community or freedom from IPV does not necessarily improve unless biased gender norms are shifted. In fact, without additional programming addressing GBV and/or underlying norms, access to economic resources may create a risk of backlash related to related to changing gender dynamics. Similarly, unequal gender norms and threat of violence may prohibit women from accessing needed nutrition services or implementing changes in household nutrition practices, reducing the overall impact of this project. Gender Targeted Actions Standard recommendations from the Good Practice Note 8. According to the Good Practice Note for Addressing GBV in Investment Projects Involving Major Civil Works,66 all projects regardless of risk level should ensure the following minimum recommended actions to address GBV risks: GBV risk assessment included in project’s social assessments (including Stakeholder Engagement Plan and Safeguard Documents); community engagement/ consultations with women and girls; conduct PIU capacity assessment; conduct GBV service provider mapping in project area; include GBV-sensitive approaches in GRM; define GBV requirements bid documents (including the requirement for a Code of Conduct 63 2016-2017 Demographic and Health Survey in Burundi 64 Victoria Rames, Clémence Bununagi, and Caritas Niyonzima (2017) USAID/Burundi Gender Analysis Report. Prepared by Banyan Global. 65 IASC (2015). Guidelines for integrating gender-based violence interventions in humanitarian action: reducing risk, promoting resilience and aiding recovery. 66 Good Practice Note: Recommendations for Addressing Gender Based Violence in Investment Project Financing involving Major Civil Works. World Bank. 2018 Page 82 of 86 The World Bank Burundi Integrated Community Development Project (P169315) for all workers with language on GBV/SEA); address how GBV-related costs will be paid in the contract; ensure Codes of Conduct (CoCs) are signed and understood by all staff and workers (including unskilled local workers and supervisors); ensure physical safety of work sites (such as separate facilities for women and men, GBV-free zone signage); conduct community engagement/awareness on GBV risks/GRM/CoCs. 9. In addition to the above actions, projects such as this one with a moderate risk level should also ensure the following actions: develop a GBV Action Plan including an Accountability and Response Framework as part of project ESMP; evaluate the contractor’s GBV response proposal in the C-ESMP for ability to meet the project’s GBV requirements; hire a GBV specialist in the PIU and in the supervision consultant’s team (this is recommended based on the high vulnerability of women refugees). Project-specific recommendations for gender targeted actions 10. Recognizing and addressing gender disparity in nutrition and livelihoods, as well as in refugee and host community contexts can help the project ensure that women are able to access project benefits equally, thus improving overall project performance. Women play a significant and dominant role within household nutrition, food production/systems (land preparation, planting, cultivation, and harvest), water use and hygiene, health, childcare and livelihoods. Traditionally, women and girls are in charge of feeding the household, and as such, are the main link between agriculture, food markets, and household food consumption, making women an invaluable source of knowledge and expertise on household nutrition. Women are also similarly well placed to influence environmental management and hygiene, as they are the main users of natural resources through their work in agriculture, fuelwood, and water collection for household consumption purposes. Women’s involvement in these sectors is a critical component of their ability to succeed. Women must be fully integrated into the process of designing project activities and community solutions (including community infrastructure, service accessibility, food production and systems infrastructure, micro-enterprises, nutrition services and training) through consultations, because without their opinions and input, activities and services will not meet their needs and will not be used, or may introduce or exacerbate risks of gender-based violence. Women are therefore powerful agents of change and have huge potential to impact sustainable development and conservation. 11. A 2017 gender analysis67 recommended strengthening women’s participation in planning, enhancing financial inclusion for female entrepreneurs and broad-based awareness raising on the importance of nutrition for women. The project will adopt an integrated approach to address these concerns, focusing on the economic empowerment of women, promoting participation in decision-making and GBV response and prevention. 12. Some of the activities that will contribute to addressing gender gaps and GBV risks are: (a) dedicated roles for women in the planning and leadership of project activities, including in community management committees that will support community planning and oversee infrastructure subprojects under component one. In addition, consultations with women and girls should be carried out throughout the span of the project and used to inform program activities, gathering information specifically on gender equality gaps, potential project related GBV risks, barriers for women to project benefits, accessibility of the GRM, knowledge of GBV services available, planning of project activities (food security and nutrition needs, agriculture-based livelihoods, rapid response/early recovery 67 Victoria Rames, Clémence Bununagi, and Caritas Niyonzima (2017) USAID/Burundi Gender Analysis Report. Prepared by Banyan Global. Page 83 of 86 The World Bank Burundi Integrated Community Development Project (P169315) activities in emergency). Methodologies may include a women’s mobility map and women’s safety walk tool, which tracks where women could physically move about. The project will put in place measures to hire women in positions of leadership and with decision-making authority (e.g. supervisors in community works, within Commune and Colline Councils), and will put in place measures to promote safe inclusion of women as beneficiaries (e.g. workers in community works). (b) equal access to economic opportunities for women and men through finance for entrepreneurs under component two. Targeting women in economic or livelihoods programming without attention to the risks associated with shifting gender roles may provoke backlash and increase their exposure to violence by intimate partners and/or males in the community. 68 For that reason, economic activities that include women should add features that address GBV and/or underlying norms, such as decision- making dynamics, household power relations, and social sanctions or stigmas or both related to specific behaviors that are not traditionally carried out by women. Economic empowerment activities can integrate gender discussion groups, allowing women to discuss strategies of how to manage the money they earn in a safe way. Discussion group activities should also have a component that includes husbands/male family members, with the objective of making positive changes to the status of women within the household and contributing to the reduction of the risk of intimate partner violence related to changing gender dynamics by providing men and women with skills in non-violent conflict resolution.69 Activities that engage men on issues of women’s empowerment should ensure that the discussion revolves around equal partnership, with men and women working together as agents of change, and that women’s voices drive the discussions on their own empowerment, rather than portraying men as the legitimate arbiters of the acceptable division of roles and responsibilities in their homes and communities. (c) expanded access to social services – health, education and water supply – that are designed to consider ease and security of access. This would reduce women’s exposure to GBV from existing livelihoods, such as gathering water. Information and recommendations gleaned from consultations with women, as well as the GBV services mapping for health services, will provide guidance for the project in the design of services to ensure ease and security of access for women and girls, as well as quality of services. (d) targeted campaigns for men and women on good nutrition practices, including the provision of nutrition supplements to pregnant women. Similar to livelihoods activities, promoting good nutrition practices that encourage women to change existing household food behaviors risk having little impact and, at worse, putting women at risk of violence if they do not also address GBV and/or underlying norms, such as decision-making dynamics, household power relations. Messages on nutrition practices will also include helping parents build skills on healthy relationships, shared decision-making, non-violence, and good parenting. (e) encouraging formation of associations of women entrepreneurs or other civil society groups, with refugees and host community members, to enhance their collective voice, strengthen economic engagement and entrepreneurial skills development, promote social cohesion and solidarity, enable platforms for advocacy of women’s rights, encourage peer learning, and improve livelihoods options for women. Trainings will be carried out for members of these organizations on business skills, such as how to register businesses, open bank accounts and access finance as well as financial literacy. Groups 68 IASC (2015). Guidelines for integrating gender-based violence interventions in humanitarian action: reducing risk, promoting resilience and aiding recovery. 69 Social and Economic Empowerment. International Rescue Committee. http://gbvresponders.org/wp- content/uploads/2014/07/001_EAE_Implementation-Guide_English.pdf Page 84 of 86 The World Bank Burundi Integrated Community Development Project (P169315) can also be trained and implicated in planning for infrastructure projects, as well as community awareness raising. (f) integrating GBV risk mitigation and response capacity building into women’s associations and Parents Lumières focal points, such as trainings on GBV services available in the project areas and how to make referrals, content of the codes of conduct of project staff, entry points for reporting GBV via the GRM, as well as women’s rights to live free from violence, nonviolent communication, valuing women’s contributions and equal household decision-making. In addition, training focal points in each community on psychological first aid will expand first-line provision of basic GBV services and referrals to other existing services. Results Framework – dedicated indicators 13. Existing indicators: • Increased dietary diversity among targeted beneficiaries (measured by dietary diversity score). Disaggregated by women of reproductive age • Beneficiaries with increased access to incremental economic opportunities, disaggregated by gender • Beneficiaries with improved access to social and economic services and infrastructure, disaggregated by gender • Beneficiaries that feel project investments reflected their needs, disaggregated by gender • Women Led – Microenterprises Supported (number and ratio) • Beneficiaries satisfied with services provided under the project, disaggregated by gender Page 85 of 86 The World Bank Burundi Integrated Community Development Project (P169315) ANNEX 8: Map Page 86 of 86