Public Disclosure Copy The World Bank Implementation Status & Results Report MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) AFRICA | Malawi | Urban, Resilience and Land Global Practice | IBRD/IDA | Development Policy Lending | FY 2019 | Seq No: 1 | ARCHIVED on 25-Sep-2019 | ISR38554 | Implementing Agencies: Ministry of Finance, Economic Planning, and Development, Ministry of Finance, Economic Planning, and Development Key Dates Key Project Dates Bank Approval Date: 06-Jun-2019 Effectiveness Date: 27-Jun-2019 Original Closing Date: 31-Jul-2022 Revised Closing Date: 21-Jun-2022 pdoTable Project Development Objectives Program Development Objective (from Program Document) The overall objective is to strengthen the institutional and financial capacity of the Government of Malawi for multi-sectoral disaster and climate risk management. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- High Implementation Status and Key Decisions The Disaster Risk Management Development Policy Financing (DRM DPF) and the Disaster Risk Management Policy Financing with a Cat DDO (DRM DPF with Cat DDO) was designed to support policy reforms to address vulnerability to natural disasters and climate change, and to secure prompt financial support to alleviate the economic and humanitarian costs associated with the impact of Tropical Cyclone Idai that affected Malawi in March, 2019. The operation is innovative in providing both upfront and disaster-contingent financing for future events through a single program. A total of eight policy actions were supported by this operation. The government has made strong progress during this reporting period against its institutional framework for the implementation of the national disaster and climate agenda, increasing climate and disaster resilience in physical developments/infrastructure and strengthening social and financial protection mechanisms against disasters. Specific highlights during this period include: (i) selection of the Technical Sub-committees according to the DRM Bill; (ii) preliminary consultations regarding the implementation of user-driven forecasts and early warning bulletins for the agriculture sector; (iii) multi-stakeholder consultations to inform city scale flood mapping in Blantyre; (iv) advanced draft of the Malawian building regulations developed; (v) development of an institutionalization strategy for the safer school construction guidelines; (vi) advancements in the formulation of the Universal Beneficiary Register data protocols that would allow stakeholders in the humanitarian assistance sub-sector to identify their beneficiaries; and (vii) early stage conceptualization of two disaster risk financing instruments, namely, Agricultural Insurance and Scalable Social Cash Transfer Funds. 9/25/2019 Page 1 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- High Macroeconomic High -- High Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Sustainability High -- High Fiduciary High -- High Environment and Social Moderate -- Moderate Stakeholders Low -- Low Other -- -- -- Overall High -- High Results Results Indicators Pillar A – Strengthening the institutional framework and coordination mechanisms IN00744106 ►Results Indicator 1: Number of Technical Sub-committees operationalizing a more comprehensive DRM approach as established in the Malawi Disaster Risk Management Bill (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 1. The Government has made progress on the selection of the Technical Sub- committees. The Bank and the Government agreed on working with the Early Warning System, Spatial Planning-Shelter and Camp Management, and the Assessment Sub Committees. The Comments: Government has committed to start formulating terms of references that will include a method to assess the baseline situation, the actions required for the operationalization, and a monitoring strategy. IN00744108 ►Results Indicator 2: Annual reports on NRS and/or MGDS III monitoring progress on results, budget allocations, and expenditures on disaster risk management and social protection (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 2. The Government has made progress on the annual reports on NRS and/or Comments: MDGS III that will monitor progress on results, budget allocations, and expenditures on disaster risk management and social protection. The structure of the Annual report has been agreed with the 9/25/2019 Page 2 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) Bank. DoDMA in collaboration with MOFED has started to hold meeting with all the government agencies engaged in resiliency building activities and collecting the information on progress indicators and budget allocations. IN00744109 ►Results Indicator 3: Number of user sectors receiving tailor-made forecasts and early warning bulletins with the appropriate content, frequency, communication channels and in local languages (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 3. Satisfactory progress has been made in relation to the implementation of tailor-made forecasts and early warning bulletins. The DCCMS is formulating the National Framework for Climate Services of Malawi in order to guide the transformation towards a user driven provision of meteorological products and services. The main user sectors have been identified and the agricultural Comments: sector has been prioritized. The DCCMS started consultations with the agricultural sector and a detailed workplan is been formulated to receive feedback from all the user groups within the sector (government, farmers, media, NGOs, etc), user needs and feedback will be used to modify the provision of climate services. IN00744110 ►Results Indicator 4: National Public Health Emergencies Committee established and operating in accordance with the MoU that clarifies all ministry roles and responsibilities relevant to International (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 4. Satisfactory progress has been made in relation to the implementation of the National Public Health Emergencies. With the support of the World Health Organization (WHO) the Joint External Evaluation (JEE) of the International Health Regulation (IHR) capacities was finalized. This exercise helped to identify MoH’s existing capacity and gaps to manage public health emergencies and Comments: contain the spread of diseases. The WHO and MoH are planning a training exercise for the Ministry’s staff to use the JEE of the IHR capacities in the development of a National Action Public Health Security Plan which will serve as a baseline for the definition of task and discussion with other stakeholder on roles, responsibilities and coordination mechanisms. Pillar B – Increasing climate and disaster resilience in physical developments and infrastructure IN00744107 ►Results Indicator 5: Number of cities with appropriate hazard maps that inform the location of public infrastructure and physical development (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 5. The Government has made progress in relation to the implementation of city scale hazard maps. Flood mapping within the city of Blantyre has been selected as the priority for the first pilot. A Flood Risk and Hazard Mapping workshop took place in Lilongwe on September 12 with participation of national stakeholders, university representatives and Blantyre city officials. The workshop included a technical discussion around Blantyre’s advances on flood hazard assessment, which facilitated Comments: understanding the strengths and gaps in data collection and analysis. The group proposed collaboration opportunities between national and the local authorities to facilitate data sharing, as well as, engaging universities and their interns in data collection and research. Based on the conclusions of the event, the Bank’s team will submit for government consideration a technical note about possible next steps to develop a flood hazard map for Blantyre. 9/25/2019 Page 3 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) IN00744111 ►Results Indicator 6: Number of cities and districts where stakeholders have been trained on existing standards and building policy/regulations that incorporate multi-hazard resilience (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 15.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 6. The Government has made progress on the formulation of building regulations. The MoTPW with the support of a consultant has developed a very advanced draft of the Malawian Building Regulations. The Bank Building Regulations for Resilience team has provided technical Comments: feedback. The final version will be reviewed to verify that it aligns with other regulations. The document is expected to be finalized within two months to start the process of final validation and approval. IN00744112 ►Results Indicator 7: Number of new national transport projects implemented by the Roads Authority that apply the new harmonized multi-hazard resilience standards (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 21-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 7. The Government has made progress on the national multi-hazard resilience road standards. The Road Authority has started an assessment of road design standards, guidelines and institutional capacity for a climate resilient infrastructure. This assessment is being conducted with the Comments: support of the Climate Investment Fund (CIF) and through the Pilot Program for Climate Resilience (PPCR). IN00744113 ►Results Indicator 8: Percentage of new educational facilities constructed or rehabilitated in compliance with the technical hazard-resilient criteria adopted by MoEST (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 8. Satisfactory progress has been made on the implementation of the Safer School Construction Guidelines. MoEST has developed an institutionalization strategy of the Safer School Construction Guidelines. The strategy includes the stakeholder mapping and their roles, the means and process for disseminating and enforcing the guidelines. MoEST has also started to share the Comments: guidelines with all the stakeholders involved in the development of new infrastructure and the rehabilitation of schools after tropical cyclone Idai. A training of trainees will be planned before the end of the calendar year. Pillar C – Strengthening the Gov’s social and financial protection mechanisms to respond to disaster IN00744114 ►Results Indicator 9: UBR data sharing protocols implemented, as evidenced by percentage of shock-affected households identified through the UBR that are targeted for post-disaster support (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 90.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 9. Satisfactory progress has been made on the Universal Beneficiary Register Comments: (UBR) data sharing protocols to target beneficiaries for post-disaster support. The government has advanced in the formulation of the UBR data protocols that would allow stakeholders in the humanitarian 9/25/2019 Page 4 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) assistance sub-sector identify their beneficiaries in the event of a disaster. The Poverty Reduction and Social Protection (PRSP) division held a UBR technical working session on September 10, 2019 as part of the formulation and validation process. Although the Government has not officially approved the data protocols, some stakeholders like UNDP have started using the UBR to identify and target benefiting households in Phalombe. In other districts, the management information system for the Social Cash Transfer Program has been used to increase amount of money received by households through what is called vertical expansion. IN00744115 ►Results Indicator 10: Number of new ex-ante risk financing instruments* established in alignment with the National Disaster Risk Financing Strategy (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2.00 Date 06-Jun-2019 -- 13-Sep-2019 21-Jun-2022 Results Indicator 10. Satisfactory progress has been made on the assessment of new ex-ante risk financing instruments in alignment with the National Disaster Risk Financing Strategy. MoFEPD with the support of the World Bank and other development partners has been working on the development of two disaster risk financing instruments, namely, Agricultural Insurance and Scalable Social Cash Transfer Fund. Under Agricultural Insurance, the Ministry submitted a request to the World Bank for a project in July 2019. A diagnostic study was conducted to review the landscape, map stakeholders involved in drought risk insurance and propose options for rolling out agricultural insurance to small holder and commercial farmers. As per recommendations of the study, MoFEPD plans to implement the instrument through a number of channels including: (i) Farm Input Subsidy Program; (ii) Contract Farming; Comments: and (iii) Agricultural Credit. Currently, the Ministry is discussing mechanisms which would triggers pay out to farming households once a disaster affects their agricultural production. In terms of the Scalable Social Cash Transfer Program. The program will benefit households that are affected by disaster through horizontal and vertical expansion. Horizontal expansion entails including new beneficiaries to benefit from the scheme while vertical expansion includes increasing the amount of pay out to already existing beneficiaries who have been affected by the disaster event. The Poverty Reduction and Social Protection Division has submitted a proposal to the Trust Fund at the World Bank. Meanwhile, PRSP Division is still discussing on a set of mechanisms that would trigger a pay out once the disaster happens. The instrument is expected to start implementation in June 2020. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P165056 IDA-D4880 Effective USD 40.00 40.00 0.00 40.18 0.00 100% P165056 IDA-D4890 Effective USD 30.00 30.00 0.00 0.00 29.78 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P165056 IDA-D4880 Effective 06-Jun-2019 21-Jun-2019 27-Jun-2019 31-Jul-2020 21-Jun-2020 P165056 IDA-D4890 Effective 06-Jun-2019 21-Jun-2019 27-Jun-2019 31-Jul-2022 21-Jun-2022 9/25/2019 Page 5 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MALAWI-Disaster Risk Management Development Policy Financing with Cat DDO (P165056) Tranches Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/25/2019 Page 6 of 6