Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Special Financing Facility for Local Development (P156257) AFRICA | Somalia | Social, Urban, Rural and Resilience Global Practice Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 4 | ARCHIVED on 14-Nov-2017 | ISR30163 | Implementing Agencies: Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date:11-Jan-2016 Effectiveness Date:25-Jan-2016 Planned Mid Term Review Date:04-Sep-2017 Actual Mid-Term Review Date:17-Sep-2017 Original Closing Date:31-Dec-2017 Revised Closing Date:31-Dec-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document)

To support the construction and reconstruction of infrastructure and the development of public service delivery capacity in targeted areas of Somalia and support the Federal Government and Interim Administration capacity to respond to an eligible crisis or emergency.

Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Small-Scale Infrastructure:(Cost $3.90 M) Program Operations, Capacity Building, and Contingencies:(Cost $2.10 M) Emergency Contingency Component Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  High  High 11/14/2017 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Implementation Status and Key Decisions An overview of achievements and key issues and actions for management attention are provided below. These are based on the project's Mid-term Review carried out 17-22 September and implementation progress since then. 1 . The MTR was held 19 months after project effectiveness (January 25, 2016). The project has disbursed US$ 1.74 million out of a total allocation from the Somali Multi Partner Fund (MPF) of US$ 6 million, representing a 30% disbursement rate as of September 25, 2017. The Project Implementation Unit (PIU) will scale up over the next month from managing four sub-projects (under Phase I) to potentially 12 sub-projects (under Phase II) as well as the drought response component and two prisons (financed bilaterally by Italy and Sweden through the UN. The SFF-LD will therefore grow from managing US$ 3m to US$ 12.8m. 2 . The mission confirmed that there has been considerable progress since May 2017. Phase I civil works in four urban areas (Baidoa, Jowhar, Kismayo, Mogadishu) with a total contract value of US$ 3 million are near completion. Technical designs and bidding documents for Phase 2 civil works in 5 urban areas (Galkayo, Bandiradley, Burtinle, Garbaharey and Xudur) are at an advanced stage and procurement for these contracts are due to begin in the October 2017. The project is also at an advanced stage of procuring an NGO consortium for implementation of the US$ 2.8 million drought component. 3 . The implementation progress represents tangible achievements for the Federal Government of Somalia (FGS) that are visible to communities and helps strengthen intergovernmental relationships between the FGS and Federal Member States (FMS). Key Issues Project extension. The MTR found that there has been a delay in implementation of Phase 1 (two times longer than originally estimated), Phase II will require at least another six months for implementation and the Drought Component is expected to be completed by April/May 2018. The current closing date of the project of December 31, 2017 is therefore being extended to August 31, 2018 to enable the completion of all project activities. SFF-LD Drought response. Five districts have been selected for implementation of the drought response and an NGO consortium – Building Resilient Communities in Somalia (BRCiS) is being directly contracted to deliver these activities. The contract with BRCiS is expected to be in place by mid- November 2017. This would be the first time in Somalia that NGOs are contracted to the FGS for a government-led emergency response and is a model that can be replicated in the event of future emergencies. Preparation for project scale up. As the project shifts from managing four sub-projects to 12 sub-projects, the UN financed prisons and the drought component, there are key improvements identified in project management, procurement processes and engineering which would help the PIU meet the demands of this scale up. The mission agreed that there could be small changes made in the designation of roles and responsibilities to better harness the skills across the PIU which are outlined in the attached aide memoire. Financing for future phase. When SFF-LD was originally designed, it was envisaged that it would be a ‘pilot phase’ that could potentially be scaled up as a program of small-scale investments in social infrastructure across Somalia. However, for various reasons, it appears that potential donor financing under the MPF is not sufficient to include the SFF-LD in financing priorities going forward. The project will have to explore the availability of additional resources during the extension period by involving the Minister of Finance to solicit interest from both traditional and non-traditional donors and look at the possibility of using national resources (however limited). In parallel, the World Bank team will also engage the Bank’s senior management to explore alternative possibilities for securing additional financing. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  High  High Macroeconomic  Substantial  Substantial  Substantial Sector Strategies and Policies  Substantial  Substantial  Substantial Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Substantial  Substantial  Substantial 11/14/2017 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Fiduciary  High  High  High Environment and Social  Moderate  Moderate  Moderate Stakeholders  Substantial  Substantial  Substantial Other  High  High  High Overall  High  High  High Results Project Development Objective Indicators PHINDPDOTBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 66.00 1,000,000.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments Subprojects are just being completed and the beneficiary figures are being calculated. This is why the figures are currently low. PHINDPDOTBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 51.00 51.00 27.00 51.00 PHINDPDOTBL  Financed sub-projects that are functioning/ delivering services to communities three months after completion (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments 11/14/2017 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Subprojects are just being completed now. The next ISR will have figures to populate for this indicator. PHINDPDOTBL  Perceptions of Regional Administrations or federal government performance on sub-project activity (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 60.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments The survey to collect this information is planned for after the subprojects have been completed. PHINDPDOTBL  Sub-projects for which community/ or local authority engagement in post-project sustainability and/ or O&M plan is established (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 PHINDPDOTBL  Beneficiaries under the activated crisis response component (#) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 TBD Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Overall Comments Implementation of this component is expected to begin December 2017 11/14/2017 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Intermediate Results Indicators PHINDIRITBL  Local Project Oversight Committees established (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 2.00 5.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 PHINDIRITBL  Grievances registered related to project are addressed (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 PHINDIRITBL  Interim Regional Administrations accompanying project design and implementation (consultation, identification, procurement and implementation processes) (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 2.00 5.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments Hudur and Garbaharey Regional administration officials actively participated in the subproject process PHINDIRITBL  Roads rehabilitated, Non-rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments 11/14/2017 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Road rehabilitation is still ongoing and expected to be completed soon. PHINDIRITBL  Sub-projects completed as planned and within budget (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments To be completed when subprojects completed and handed over. PHINDIRITBL  Government officials participating in capacity building measures under the project (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 100.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Comments Only training of PIU staff has been done so far. Capacity building for government officials has not yet commenced. 11/14/2017 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) PHINDIRITBL  Work days created for short term employment in the sub-projects (of which female) (#) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 66.00 150.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 PHINDIRITBL  Work days created for short term employment in the sub-projects for women (%) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 PHINDIRITBL  Specific POM for the contingency component (Component 3) has been adopted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 09-Nov-2015 17-Jun-2017 30-Oct-2017 29-Dec-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P156257 TF-A1715 Effective USD 6.00 6.00 0.00 1.90 4.10 32% Key Dates (by loan) 11/14/2017 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Special Financing Facility for Local Development (P156257) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156257 TF-A1715 Effective 11-Jan-2016 25-Jan-2016 25-Jan-2016 31-Dec-2017 31-Dec-2017 Cumulative Disbursements Restructuring History Level 2 Approved on 09-Sep-2016 ,Level 2 Approved on 10-Jul-2017 Related Project(s) There are no related projects. 11/14/2017 Page 8 of 8 Public Disclosure Copy