Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD811-GH INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 32.40 MILLION (US$50 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA FOR A SOCIAL OPPORTUNITIES PROJECT May 1, 2014 Social Protection Western Africa 1 Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2014) Currency Unit = New Ghana Cedi GH1 = US$0.37 US$1 = GH 2.685 SDR1 = US$1.54524 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS   AF Additional Financing CAGD Controller and Accountant General’s Department CBT Community-Based Targeting CCT Conditional Cash Transfer CPS Country Partnership Strategy CSO Civil Society Organization DA District Assembly DASH Daily Attendance Sheet DBO District Budget Officer DCD District Coordinating Director DCDO District Community Development Officer DCE District Chief Executive DFID Department for International Development DFR Department of Feeder Roads DPO District Planning Officer DSW Department of Social Welfare DSWO District Social Welfare Officers DWE District Works Engineer EOI Expressions of Interest EOP End of Project EPA Environmental Protection Agency ESMF Environmental and Social Management Framework FAO Food and Agriculture Organization FC Financial Controller GDP Gross Domestic Product GHS Ghana Cedi GIDA Ghana Irrigation Development Authority GIFMIS Ghana Integrated Financial Management Information Systems GLSS Ghana Living Standards Survey GNHR Ghana National Household Registry GOG Government of Ghana GSGDA Ghana’s Shared Growth and Development Agenda GSOP Ghana Social Opportunities Project IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICT Information and Communication Technology IDA International Development Association KPI Key Performance Indicators KTC Koforidua Training Centre LEAP Livelihood Empowerment Against Poverty LEG-VPU Legal Vice-Presidential Unit LIPW Labor Intensive Public Works LMU LEAP Management Unit M&E Monitoring and Evaluation MDA Ministries, Departments and Agencies MTDP Medium-Term Development Plan MELR Ministry of Employment and Labor Relations MESTI Ministry of Environment, Science, Technology and Innovation MIS Management Information System MLGRD Ministry of Local Government and Rural Development MoF Ministry of Finance MoGCSP Ministry of Gender, Children and Social Protection MoU Memorandum of Understanding MTR Mid Term Review NCB National Competitive Bidding NCO National Coordinating Office NHIS National Health Insurance Scheme NPSC National Project Steering Committee NTS National Targeting System NTU National Targeting Unit OP Operational Policy PAD Project Appraisal Document PAS Procurement Accredited Specialist PDO Project Development Objectives PIC Public Information Campaign PMT Proxy Means Test PS Procurement Specialist QTRM Quarterly Technical Review Meeting RCC Regional Coordinating Council RCO Regional Coordinating Offices RPF Resettlement Policy Framework RPM Regional Procurement Manager RSWO Regional Social Welfare Officer SA Social Accountability SBD Standard Bidding Documents SDR Special Drawing Rights UNDB United Nations Development Program UNICEF United Nations Children's Fund US$ United States Dollar Vice President: Makhtar Diop Country Director: Yusupha B. Crookes Sector Director: Tahwid Nawaz Sector Manager: Stefano Paternostro Task Team Leader: Suleiman Namara GHANA ADDITIONAL FINANCING FOR THE GHANA SOCIAL OPPORTUNITIES PROJECT CONTENTS I. Introduction ................................................................................................................................. 1  II. Background and Rationale for Additional Financing ................................................................ 1  III. Proposed Changes ..................................................................................................................... 4  IV Appraisal Summary ................................................................................................................. 13  Annex 1: Revised Results Framework .......................................................................................... 17  Annex 2 Operational Risk Assessment Framework (ORAF) ....................................................... 27  Annex 3: Status of Results Framework at Restructuring .............................................................. 32  Annex 4: Detailed Project Description ......................................................................................... 36  Annex 5: Revised Implementation Arrangements and Support ................................................... 45  Annex 6: Financial Management and Disbursement .................................................................... 51  Annex 7: Procurement .................................................................................................................. 57  Annex 8: Safeguards ..................................................................................................................... 66  Annex 9: Social Accountability and Governance of LEAP and LIPW ....................................... 68  Annex 10: Development Communications for LEAP and LIPW ................................................. 73  Annex 11: Additional Financing Implementation and Rollout..................................................... 79  ADDITIONAL FINANCING DATA SHEET Ghana AF Ghana Social Opportunities Project (P146923) AFRICA AFTSW . Basic Information – Parent Parent Project ID: P115247 Original EA Category: B - Partial Assessment Current Closing Date: 30-Jun-2016 Basic Information – Additional Financing (AF) Additional Financing Project ID: P146923 Scale Up Type (from AUS): Regional Vice President: Makhtar Diop Proposed EA Category: B - Partial Assessment Expected Effectiveness Country Director: Yusupha B. Crookes 30-Sep-2014 Date: Sector Director: Tawhid Nawaz Expected Closing Date: 30-Jun-2017 Sector Manager: Stefano Paternostro Report No: PAD811 Team Leader: Suleiman Namara Borrower Organization Name Contact Title Telephone Email Ministry of Finance Seth Terkper Minister 233-302686101 chiefdirector@mofep.gov Project Financing Data – Parent ( Ghana---Social Opportunities Project-P115247 ) Key Dates Approval Effectiveness Original Closing Project Ln/Cr/TF Status Signing Date Revised Closing Date Date Date Date IDA- 20-May- P115247 47350 Effective 08-Sep-2010 19-Oct-2010 30-Jun-2016 30-Jun-2017 2010 Disbursements Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA- P115247 47350 Effective XDR 58.40 58.40 0.00 41.02 17.38 70.24 Project Financing Data – Additional Financing AF Ghana Social Opportunities Project ( P146923 ) [ ] Loan [ ] Grant [ ] IDA Grant [X] Credit [ ] Guarantee [ ] Other i Total Project Cost: 50.00 Total Bank Financing: 50.00 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 50.00 Total 50.00 Policy Waivers Does the project depart from the CAS in content or in other significant No respects? Explanation Does the project require any policy waiver(s)? No Explanation Team Composition Bank Staff Name Title Specialization Unit Randa G. El-Rashidi Social Protection Social Protection AFTSW Specialist Specialist Lydia Sam Procurement Procurement Assistant AFCW1 Assistant Stephen Tettevie Team Assistant Team Assistant AFCW1 Luis M. Schwarz Senior Finance Senior Finance Officer CTRLA Officer Kathleen G. Beegle Lead Economist Lead Economist AFRCE Martin Fodor Senior Senior Environmental AFTN3 Environmental Specialist Specialist Dena Ringold Lead Economist Lead Economist AFTSW Ernestine Ngobo-Njoke Senior Program Senior Program AFTSW Assistant Assistant Edith Ruguru Mwenda Senior Counsel Senior Counsel LEGAM Suleiman Namara Senior Social Team Lead AFTSW Protection Economist Beatrix Allah-Mensah Senior Operations Senior Operations AFCW1 Officer Officer Robert Wallace DeGraft- Sr Financial Sr Financial AFTMW Hanson Management Management Specialist Specialist ii Anders Jensen Senior Monitoring & Senior Monitoring & AFTDE Evaluation Evaluation Specialist Specialist Nina Rosas Raffo Social Protection Social Protection AFTSW Specialist Specialist Christabel Sefa E T Consultant Social Protection AFTSW Specialist Charles John Aryee Ashong Procurement Procurement Specialist AFTPW Specialist Franklin Kuma Kwasi Gavu Consultant Consultant AFTN3 Felix Nii Tettey Oku E T Consultant Environmental AFTN3 Safeguards Specialist Non Bank Staff Name Title Office Phone City Manuel Rodriguez Short Term Pumarol Consultant Locations Country First Location Planned Actual Comments Administrative Division Ghana Republic of Ghana Ghana Upper West Nadowli Region Ghana Upper West Sissala West Region Ghana Upper West Wa East Region Ghana Upper West Wa West Region Ghana Upper West Sissala East Region Ghana Upper West Jirapa Lambussie Region Ghana Upper East Region Talensi-Nabdam Ghana Upper East Region Garu-Tempane Ghana Upper East Region Builsa iii Ghana Upper East Region Bongo Ghana Northern Region Nanumba South Ghana Northern Region Nanumba North Ghana Northern Region Sawla-Tuna-Kalba Ghana Upper East Region Bawku West Ghana Northern Region Bunkpurugu-Yunyoo Ghana Upper West Lawra Region Ghana Northern Region Karaga Ghana Northern Region Gushiegu Ghana Northern Region Bole Ghana Northern Region Kpandai Ghana Northern Region East Gonja Ghana Brong-Ahafo Atebubu Ghana Volta Region Nkwanta North Ghana Volta Region Nkwanta South Ghana Brong-Ahafo Pru Ghana Brong-Ahafo Sene Ghana Volta Region Krachi East Ghana Volta Region Krachi West Ghana Brong-Ahafo Nkoranza North Ghana Central Region Assin South Ghana Central Region Twifo Hemang Lower Denkyira Ghana Ashanti Region Sekyere Afram Plains Ghana Central Region Upper Denkyira Ghana Western Region Ellembelle Ghana Eastern Region Dangme East Ghana Eastern Region Atiwa Ghana Northern Region Saboba Ghana Northern Region Chereponi Ghana Upper West Lambussie Karni Region iv Institutional Data Parent ( Ghana---Social Opportunities Project-P115247 ) Sector Board Social Protection Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Co- Mitigation Co-benefits % benefits % Health and other social services Other social services 80 Public Administration, Law, and Public 10 Justice administration- Agriculture, fishing and forestry Public Administration, Law, and Public 5 Justice administration- Other social services Agriculture, fishing, and forestry Irrigation and 5 drainage Total 100 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Social safety nets 70 Social protection and risk management Social risk mitigation 10 Rural development Rural services and infrastructure 10 Rural development Rural non-farm income generation 8 Social protection and risk management Natural disaster management 2 Total 100 Additional Financing AF Ghana Social Opportunities Project ( P146923 ) Sector Board Social Protection Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Co- Mitigation Co-benefits % benefits % v Public Administration, Law, and Public 10 Justice administration- Agriculture, fishing and forestry Health and other social services Other social services 80 Public Administration, Law, and Public 5 Justice administration- Other social services Agriculture, fishing, and forestry Irrigation and 5 drainage Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Social safety nets 10 Social protection and risk management Social risk mitigation 70 Rural development Rural services and infrastructure 10 Rural development Rural non-farm income generation 8 Social protection and risk management Natural disaster management 2 Total 100 vi I. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide an additional credit in the amount of US$50 million to Ghana Social Opportunities Project P115247. 2. The additional credit would help finance the costs associated with scaling up safety net programs in Ghana. In line with the current global practices, the project would support: (i) formulation of social protection policy; (ii) scaling up of the Labor Intensive Public Works (LIPW) and the Livelihood Empowerment Against Poverty (LEAP) programs; (iii) designing and rolling out the Ghana National Household Registry (GNHR) for social protection programs and strengthening social protection implementation procedures; and (iv) capacity building to support the implementation of LIPW and LEAP in existing and new districts . 3. Building on the successes of the original project, this Additional Financing (AF) allows for restructuring of the project’s components to adopt a stronger focus on strengthening social protection systems and better achievement of results. Therefore, the Project Development Objectives (PDO) has been revised and the key project indicators simplified. 4. As was the case under the original project, the Department for International Development (DFID) and the United Nations Children's Fund (UNICEF) will continue to provide parallel financing and technical assistance respectively to the implementation of the Social Protection Policy and LEAP components. II. Background and Rationale for Additional Financing A. Country Context 5. Ghana has experienced rapid economic growth over the past several years resulting in substantial progress in reducing income poverty. Gross domestic product (GDP) growth rose from 8.0 percent in 2010 to close to 14.5 percent in 2011, making Ghana’s economy one of the fastest growing on the continent. By 2012, gross national income (GNI) per capita reached US$1,940, reflecting Ghana’s middle-income status. Poverty has been declining steadily, as reflected in the number of people classified as poor, which dropped from slightly over 50 percent of the population (about 8.0 million) in 1992 to less than 30 percent in 2006 (6.3 million). 6. However, recent macroeconomic instability is putting at risk the gains in poverty reduction. The fiscal deficit reached 12 percent of GDP in 2012 and 10.9 percent in 2013, and the current account deficit reached 13 percent of GDP in both years. The government tackled the fiscal imbalances by removing fuel subsidies and raising electricity and water tariffs, by around 60 percent in late 2013. The inflationary impact of the adjustment was exacerbated by a depreciation of the Ghana cedi (GHc). The higher prices implied a lower income in real terms, which imparted the risk of pushing many near-poor families into poverty. In fact, macroeconomic challenges disproportionately affect the poor members of the society. Thus, social protection initiatives are likely to mitigate the impacts of the adverse effects on the poor. 1 7. Additionally, inequalities remain widespread and are reflected in significant disparities in access to economic, social, and political opportunities. The Northern Savannah regions (with 25 percent of the country’s population) recorded an average poverty rate of 58 percent, compared to 19 percent in the rest of the country; in effect, the number of people living in poverty fell by 2.5 million in the South while increasing by 0.9 million in the North. The Gini coefficient for consumption per adult increased from 0.353 in 1991–92 to 0.378 in 1998–99, and finally to 0.394 in 2005. Analysis of the Ghana Living Standards Survey (GLSS) data over the period indicates that, had the level of inequality stayed constant and the benefits of growth (in terms of increased consumption expenditures) been more equitably distributed, the poverty rate would have declined by a further 4 percentage points to around 25 percent. Given the above issues, there is little room for complacency over the success in bringing the national poverty rate down. B. Sector Context 8. The 2013 Ghana Shared Growth and Development Agenda (GSGDA) focuses on: (i) ensuring competitiveness and employment; (ii) reducing vulnerability and resilience; and (iii) improving governance and public sector capacity, for its citizens. (The GSGDA is currently in use but under revision.) Together these objectives reflect the Government of Ghana’s strategic goals of diversifying the economy and sustaining high rates of growth, reducing poverty and inequality in access to basic services and opportunities, and strengthening governance while mitigating risks. In support of these goals, Ghana’s draft National Social Protection Strategy (2012) aims at consolidating the wide range of national programs and projects into a coherent framework that effectively tackles extreme poverty and vulnerability as well as promoting employment and productivity. The national framework seeks to protect the poorest, promote productivity, and put in place a complete system of accessible and quality social services for all. Reflecting this, Ghana implements a wide range of programs including in-kind transfers (e.g., school uniforms, school meals), cash transfers (i.e., LEAP), public works programs (e.g., LIPW), and fee waivers for certain groups and social services (e.g., free maternal health), most of which are not well targeted. 9. A number of social protection-related studies have been undertaken in Ghana, the most recent one being a social protection rationalization study (December 2013).1 This study entailed preparing a detailed inventory of existing safety nets programs, an analysis of expenditures, financing mechanisms, effectiveness and shortcomings, and recommendations for improving social protection spending, monitoring and evaluation to ensure the efficiency, relevance, and financial sustainability of recommended programs. Major recommendations from the study included: (i) scaling up the LEAP program; (ii) full implementation of the free National Health Insurance Scheme (NHIS) for extremely poor households; (iii) establishing a harmonized social protection monitoring and evaluation framework; and (iv) developing a national social protection policy that provides a basis for assessing government progress on spending and impacts. The report also provides a road map for further work related to the government’s strategy to rationalize expenditures on social protection and complements ongoing efforts under the national targeting system, which is currently under preparation. The proposed additional financing will contribute to the implementation of the recommendations of this study. 1 Rationalizing Social Protection Expenditure in Ghana (Consolidated version), December 2013, Ghana Social Opportunities Project - International Labor Office. 2 10. International experience has indicated that most social protection interventions are poorly coordinated and fragmented. For example, a number of social protection programs in Ghana have no systematic, computerized registry of beneficiaries, which means that no government agency has access to comprehensive data on the actual coverage of social interventions and very few programs have a computerized registry of beneficiaries. While the existing registries contain basic demographic information concerning personal identity, age, and sex, they have no socio- economic data on their beneficiaries; this makes the process of monitoring and identifying potential beneficiaries difficult. Furthermore, most targeting mechanisms are not clearly defined and beneficiary registries are not integrated, which limits centralized monitoring and strategic planning of social programs. The additional financing would support improved targeting, maximize coverage of poor households and minimize leakage of resources to non-poor households, and increase cost-efficiency and transparency of social protection interventions. C. Rationale for Additional Financing 11. In a letter to the World Bank dated February 13, 2014, the Government of Ghana requested additional financing of US$50 million for Ghana Social Opportunities Project (GSOP) to, on the one hand, scale up existing interventions under LIPW and LEAP and, on the other, modify project activities by strengthening social protection systems and implementation capacity. The Additional Financing allows for revision of the PDO and restructuring of the project’s components to adopt a stronger focus on strengthening social protection systems and better achievement of results. This approach is the most efficient way of achieving the above goals. It is in line with paragraphs 2 and 26 of OP 10.00 regarding consistency with original project objectives and appraisal. 12. The original PDO was “to improve targeting in social protection spending, increase access to conditional cash transfers nationwide, increase access to employment and cash-earning opportunities for the rural poor during the agricultural off-season, and improve economic and social infrastructure in target districts.” The US$88.6 million IDA-funded project was approved by the board on May 20, 2010, and became effective on October 19, 2010. The closing date of the original project is June 30, 2016 and the lead implementation agency is the Ministry of Local Government and Rural Development. 13. Overall, project implementation is satisfactory and the project is likely to meet the PDO. Several project outcome indicator targets have been met. Under LIPW, 3.2 million person days of employment have been created against the target of 5.65 million2 (56 percent); direct project beneficiaries were 80,678 against the target of 13,000; and 60.4 percent of LIPW beneficiaries are females against the target of 25 percent. The overall cumulative labor content is 48 percent against a target of 45 percent, with climate change public works projects containing the highest labor content, followed by small earth dams and dugouts, and roads and social infrastructure. Under LEAP, 68.8 percent of beneficiaries are females against the target of 15 percent; and there are 74,347 direct LEAP project beneficiaries against the target of 80,000 (93 percent). 2 Rationalized target from the previous 1,500,000 in the Project Appraisal Document. 3 14. The project underwent a level two restructuring on September 24, 2013. This restructuring enabled the project to start the rollout of the National Targeting System (Component 4) and provide the strengthened support required by districts under LIPW (Component 5). These modifications did not affect the overall project development objective or anticipated project outcomes as they were minor project changes. 15. Project disbursements satisfactorily stand at SDR 41,019,021 (70.24 percent) against the total credit of SDR 58,400,000 as of April 15, 2014. All legal covenants have been complied with. The ratings for monitoring and evaluation, project management, financial and procurement are satisfactory, and financial reports have been consistently submitted on time with neither overdue audits nor qualified audits. III. Proposed Changes Summary of Proposed Changes One major change under additional financing will be dropping of the use of disbursement linked indicators (DLIs). The objective of the disbursement linked indicators under Component Three of the original project was to finance incentive payments to the unified treasury account to assure that government each year allocates sufficient budget for LEAP to meet its targets. Although the government has met its overall yearly allocation and disbursement targets so far, in between the periods of assessment, the government has struggled to make regular bi-monthly disbursements to the LEAP program for payment of beneficiaries. This has resulted in long periods of non-payment and lumped payments which reduce the program’s impact on smoothing consumption and ensuring adequate protection against shocks for extremely poor households. This is in part due to the current cash-based budgeting system operated by the government that relies directly on revenue inflows to make disbursements to LEAP; thus recent irregular inflows due to resource constraints have directly resulted in irregular disbursements to the LEAP program. The DLIs have thus not provided enough incentives to ensuring regular bi-monthly flows to meet the program’s ultimate objects, and will be discontinued under Additional Financing. Other additions and changes under additional financing include: • Revision of the PDO, Key Performance Indicators (KPIs), and the Results Framework • Inclusion of eleven new districts for the LIPW projects (from 49 to 60 districts) • Scaling up of LEAP by 50,000 beneficiary households (from 100,000 to 150,000 households) • Inclusion of a new implementing agency, Ministry of Gender, Children and Social Protection (MoGCSP) • Improved targeting approaches by establishing the Ghana National Household Registry (GNHR) • Deepening of social accountability and grievance redress mechanisms for LIPW and LEAP • Development of comprehensive communication for LIPW and LEAP • Increased use of electronic systems and e-payments for LIPW and LEAP • Strengthened collaboration between all agencies involved in project implementation. 4 Change in Implementing Agency Yes [ X ] No [ ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ X ] No [ ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ X ] No [ ] Reallocation between Disbursement Categories Yes [ ] No [ X ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ X ] No [ ] Change in Financial Management Yes [ X ] No [ ] Change in Procurement Yes [ X ] No [ ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Development Objective/Results Project’s Development Objectives Original PDO The objectives of the Project are to improve targeting in social protection spending, increase access to conditional cash transfers nationwide, increase access to employment and cash-earning opportunities for the rural poor during the agricultural off-season, and improve economic and social infrastructure in target districts. Change in Project's Development Objectives Explanation: The revision is meant to make the PDO clearer and more outcome-focused. Although the LEAP program was originally designed to be conditional, the program has implemented these as soft conditions (referred to now as co-responsibilities). Thus, while beneficiaries are sensitized to send children ages 5-15 to school and to ensure regular clinical visits and full immunizations for all children in beneficiary households, these have not been enforced nor does the program attach penalties to non-compliance, hence the reference to conditions has been dropped. Proposed New PDO - Additional Financing (AF) The Project Development Objectives (PDO) of this Additional Financing is to improve targeting of 5 social protection programs and provide income support to poor households through LEAP grants and LIPW infrastructure in targeted districts. Change in Results Framework Explanation: The KPIs have also been revised to reflect the project’s adjusted focus on strengthening systems and scaling up of LEAP and LIPW. Compliance Covenants - Additional Financing ( AF Ghana Social Opportunities Project - P146923 ) Source Finance of Agreement Description of Covenants Date Due Recurrent Frequency Action Funds Reference The Recipient shall not later than three (3) months after the Effective Date, engage an independent expert to verify the list of Cash Transfer Beneficiaries for the purpose Schedule 2. of Part C.1 of the Project in 30-Dec- IDA Section D2 New accordance with the provisions 2014 (a) of Section III of this Schedule, whose terms of reference, qualifications and experience and terms and conditions of employment shall be satisfactory to the Association. The Recipient shall, not later than six (6) months after the Effective Date, submit to the Association the technical audit report satisfactory to the Association related to the use Schedule 2. of the proceeds of the Cash IDA Section D2 Yearly New Transfer for the first three (b) months of the Project and, thereafter, not later than forty- five (45) days after the end of each nine (9) calendar months, submit independent. Verification reports. 6 Covenants - Parent ( Ghana---Social Opportunities Project - P115247 ) Finance Ln/Cr/ Description of Date Agreement Status Recurrent Frequency Action TF Covenants Due Reference Prepare and furnish to the Association for its approval, Schedule 2, IDA- not later than 30-Nov- Complied Marked for Section I. 47350 November 30 each 2013 with Deletion F. 1 year, an Annual Work Plan and Budget. By no later than December 1, 2011, prepare and deliver Schedule 2, to the Association IDA- 01-Dec- Complied Section I. a post-national No Change 47350 2011 with H. consultation draft policy on the use of labor-intensive methods. No later than Schedule 2, November 30, IDA- 30-Nov- Not yet Marked for Section II, 2013, submit to the 47350 2013 due Deletion A.2 Association a mid- term report. Not later than six (6) months after Schedule 2, IDA- the Effective Date, 30-Apr- Complied Marked for Section II 47350 appoint the 2012 with Deletion B.4 independent auditors Conditions Source Of Fund Name Type IDA Condition of Effectiveness. Effectiveness Description of Condition The Additional Condition of Effectiveness consists of the following, namely that, the Project Implementation Manual has been updated, in form and substance satisfactory to the Association, and has been duly adopted by the Recipient. 7 Source Of Fund Name Type IDA Withdrawal Condition Disbursement Description of Condition Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for payments made prior to the date of this Agreement; or for payment of Cash Transfers under Category (3), unless the Recipient has issued a complete list of Beneficiaries eligible to receive Cash Transfers in accordance with the eligibility criteria set forth in the PIM, verified by an Independent Expert. Finance Loan Closing Date - Additional Financing ( AF Ghana Social Opportunities Project - P146923 ) Source of Funds Proposed Additional Financing Loan Closing Date IDA recommitted as a Credit 30-Jun-2017 Loan Closing Date(s) - Parent ( Ghana---Social Opportunities Project - P115247 ) Explanation: Implementation of activities under the Additional Financing will require an extension of the original project date from June 30 2016 to June 30 2017. Status Original Current Proposed Previous Closing Date(s) Ln/Cr/ Closing Closing Date Closing Date TF Date IDA- Effective 30-Jun-2016 30-Jun-2016 30-Jun-2017 47350 Change in Disbursement Arrangements Explanation: The changes in the FM arrangement are due to the addition of a new Implementing Agency ie MGCSP. The FM arrangement at GSOP NCO will remain the same. Change in Disbursement Estimates (including all sources of Financing) Explanation: The AF will provide an additional $50 million to support the scaling up of GSOP activities (LIPW and LEAP) and the strengthening of the social protection systems and existing institutional capacity. Hereafter is the information for disbursement categories: Expected Disbursements (in USD Million) (including all Sources of Financing) Fiscal Year 2015 2016 2017 Annual 15.00 15.00 20.00 Cumulative 15.00 30.00 50.00 8 Allocations - Additional Financing ( AF Ghana Social Opportunities Project - P146923 ) Source Curre Category of Allocation Disbursement %(Type Total) of Fund ncy Expenditure Proposed Proposed (1) Goods, non- consulting services, consultants’ IDA XDR services, Operating 10.20 100.00 Costs and Training for Parts A, C.2 and D.2 of the Project (2) Goods, works, non- consulting services, consultants’ services, Operating 15.70 100.00 IDA XDR Costs and Training for Parts B and D.1of the Project (3) Cash Transfers under Part C.1 of 100.00 IDA XDR the Project for the 6.50 LEAP Total: 32.40 Components Change to Components and Cost Explanation: In line with the current global practices, the project would support: (i) formulation of social protection policy; (ii) scaling up of the Labor Intensive Public Works (LIPW) and the Livelihood Empowerment Against Poverty (LEAP) programs; (iii) designing and rolling out the Ghana National Household Registry (GNHR) for social protection programs and strengthening social protection implementation procedures; and (iv) capacity building to support the implementation of LIPW and LEAP in existing and new districts. Current Proposed Current Proposed Component Component Cost Cost Action Name Name (US$M) (US$M) Component One: Component One: Rationalize Social Protection National Social Policy and 2.50 9.00 Revised Protection Systems Policy. (US$2.5 Strengthening million) Component Component Two: Two: Labor Labor Intensive 56.00 19.20 Revised Intensive Public Public Works 9 Works (LIPW). Implementation (US$56 million, and Capacity including an Building. IDA contribution of US$56 million) Component Three: Livelihood Component Empowerment Three: Against Poverty Livelihood Program Empowerment 20.00 15.70 Revised (LEAP).(US$20 Against Poverty million)The Implementation main objective and Capacity of this Building component is to sup Component Component Four: Four: Capacity Project 4.10 6.10 Revised Building. Management and (US$4.1 million) Coordination Component Component Five: Five: Project Project Management Management and 6.50 0 Marked for Deletion and Coordination.(U Coordination.(U S$6.5 million) S$6.5 million) Total: 89.10 50.00 Other Change(s) Change in Implementing Agency Explanation: The AF will provide a one year extension which includes additional activities supporting the scale up of the project. Implementing Agency Type Action Name Ministry of Gender, Implementing Children and Social New Agency Protection Ministry of Local Implementing New 10 Government and Rural Agency Development Change in Institutional Arrangements Explanation: The implementation structure for the proposed Additional Financing (AF) shall comprise two key ministries (MLGRD and MoGCSP) under the overall guidance of the National Project Steering Committee. The two ministries will work through the decentralized governance systems in targeted District Assemblies (DA) with the support of regional offices. Change in Financial Management Explanation: The parent GSOP project is implemented by the MLGRD, through the National Coordinating Office (NCO). There are no proposed changes in the financial management arrangements for the GSOP components being implemented by the MLGRD. The arrangements as per the original PAD have been satisfactory and will be used to support the AF. As part of the additional financing, it has been agreed that some activities will be implemented by the Ministry of Gender, Children and Social Protection (MoGCSP). Given that the project's financial management arrangements will follow the country systems, the financial controller (FC) of MoGCSP will have overall financial management responsibility. The responsibility of the FC is to ensure that throughout implementation financial management systems are in place that report proficiently on the use of project funds. The FC’s work will be complemented by assigning a dedicated Principal Accountant responsible for the routine day-to-day transaction processing and reporting, and interacting with other beneficiary agencies on financial matters. For the components being implemented by the MoGCSP, the Financial Controller, with the assistance of the Principal Accountant, will have oversight responsibilities with regards to ensuring compliance with financial covenants such as submitting interim unaudited financial reports (IFRs), maintaining internal controls over project expenditure, and engaging external auditors. Under the direct supervision of the Financial Controller, the Principal Accountant will be responsible for maintaining and operating the project's designated account and making payments to contractors and service providers, transferring funds to the district as per the funding modalities for the LEAP, and verifying and authorizing payments for all contracts and activities under this project. In addition, under Component 3A, the MoGCSP will prepare and submit a technical audit report on the use of the proceeds of the cash transfer for the first three months of the project. Thereafter, within 45 days of the end of each nine calendar months, the MoGCSP will prepare and submit an independent verification report for the period covering the nine months. The final independent verification report will be furnished to the Bank not later than four months after the end of last withdrawal of the proceeds of the Credit allocated to the Cash Transfers. The assessment of the financial management arrangements at the MGCSP concluded that adequate systems are in places that satisfy the Bank’s minimum requirements under OP/BP10.00. Yet, given 11 the fact that this is a relatively new ministry without prior experience managing IDA projects, significant capacity building and monitoring will need to be undertaken. Change in Procurement Explanation: The procurement under the proposed AF intends to build on the success of the existing Financing Agreement. At Mid Term Review (MTR), the procurement progress reflected a 61 percent completion of planned procurement, which was largely implemented by NCO-GSOP of MLGRD and to a lesser extent, MoGCSP, with support and technical assistance from NCO. Under the proposed AF allocation, MLGRD is allocated US$24.2 million, while MoGCSP is allocated US$25.8 million. In view of the value allocation for MoGCSP. The Ministry will need an experienced and knowledgeable procurement specialist (PS) together with the ministry staff to manage and implement procurement under the Additional Financing project and to build the capacity of the MoGCSP procurement staff. The PS being recruited under the National Targeting Unit (NTU) can be given that responsibility. The components under the proposed AF are generally the same as the original agreement; however, additional procurement will be undertaken and therefore a new procurement plan is being prepared for project implementation. As in the original agreement, procurement implementation will be decentralized with each DA, RCC, and MLGRD responsible for its own procurement, while MoGCSP will be responsible for its own procurement. Different government departments will provide the required technical support to the DAs who are responsible for the implementation of works. The roles and responsibilities of such technical departments and DAs will be as stated in the original agreement and will be covered by a Memorandum of Understanding (MOU). Procurement will be carried out in accordance with World Bank’s: (i) "Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011; (ii) "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011, and the provisions stipulated in the Legal Agreement; and (iii) “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants” dated October 15, 2006, as revised in January 2011 and the provisions stipulated in the Legal Agreement. For each contract to be financed by the Loan/Credit, the different procurement methods, or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. Change in Implementation Schedule Explanation: The AF will provide a one year extension which includes additional activities supporting the scale up of the project. 12 IV Appraisal Summary Economic and Financial Analysis Explanation: The proposed AF of GSOP has been designed with regards to three aspects: (i) the value of the LEAP and LIPW programs in terms of impact; (ii) the lessons learned from the ongoing program in terms of how project performance of both LEAP and LIPW can be improved; and (iii) the emerging need to develop the Ghana National Household Registry (GNHR). The economic justification for the additional financing is outlined below in these three areas. LEAP’s impact evaluation study (2013) that was undertaken by the Institute for Statistical, Social and Economic Research (ISSER) and the University of North Carolina, for example, has shown positive impacts especially on education, health, and productivity of beneficiaries. According to the report, the impact evaluation results show that grade repetition was reduced by 11 percentage points, absenteeism reduced by 10 percentage points for children in primary school and by 11 percentage points for girls in secondary school, and school enrollment among secondary school aged children increased by 7 percentage points. Ninety percent of all LEAP households was enrolled in NHIS (7 percentage points increase over the comparison group), and morbidity was reduced for children aged 6-17. LEAP households were 7 percentage points more likely to participate in paid work, with a significant increase in female labor own-farm activities ranging from 9 to 13 days depending on the household size. LEAP households were also 11 percentage points more likely to hold savings, receive gifts and reduce loan holdings, particularly among female-headed households. Self-reported happiness increased by 16 percentage points over the control group. These impacts will be sustained and scaled up with the additional financing. Implementation of LIPW has also been successful. Preliminary findings from the impact evaluation undertaken by the ISSER (2013) showed similar positive impacts. LIPW households reported an increase in paid employment of 3.1 percent between January and March over non-beneficiaries. This impact was even more significant (11.3 percent) for beneficiaries aged 24-34 years. Food expenditure increased by GHc 28.20 for any additional person aged 15-24 in beneficiary households. There was also an increased expenditure on clothing (GHc 12.32), housing (GHc 7.95), and other expenses (GHc 31.73) among female-headed households. Furthermore, extreme poverty among households with members aged 15-24 fell by 0.02 percentage points. The level of indebtedness for households with youth aged 25-34 years declined by 4 percent and the likelihood of having savings (either at home or financial institutions) also increased by 6 percent. The use of curative care was also higher among LIPW adults (13.7 percent). On education, LIPW reduced the hours of schools missed by children by 3.6 hours and reduced the likelihood of grade repetition by 0.5 percent. Developing the Ghana National Household Registry. Currently, both LEAP and LIPW screen households independently in selected communities for eligibility. To date, the coverage has not overlapped geographically. As both scale-up, however, overlap will emerge. In addition, the NHIS mandate to expand coverage to indigent households will require an additional drill-down to target the poor. Large efficiencies can be gained when these programs operate in the same district by integrating the process of collecting and processing information on households and their basic living conditions. In order to realize these gains, an effort must be conducted in a way that enables each program to pull from a single database and also provide feedback into the database when a household becomes a 13 beneficiary of the program. In the simplest terms, the economic justification for the GNHR is moving from three or more separate household surveys to one survey for three or more programs. A second benefit is that the scale of the GNHR will result in a smaller per-household-interview cost than stand- alone efforts, given the fixed cost of setting up a survey (including data software, headquarters hardware, and developing training materials). Under the additional financing, the current per- household-interviewed costs are estimated at less than $10 per household. Technical Analysis Explanation: Under LEAP, technical assistance will be provided to strengthen the program's operations at the national, regional and district levels. Specifically, the AF will support the development of a Management Information System for the program (to be coordinated with the GHR) that will support data entry and analysis at the national and decentralized levels, delivery charges associated with the new electronic payments mechanism, and training and capacity building of staff to implement LEAP more effectively. The project would also provide funding for development communication activities, as well as monitoring and evaluation (i.e. regular spot checks of operation activities and impact evaluation studies), and social accountability and grievance redress systems for the program. These measures will contribute to improving the technical efficiency of the project. Under LIPW, technical improvements are being introduced to support the scale up of LIPW to reach more beneficiary households. Innovations, particularly to manage over-subscription, improve targeting, and enhance delivery and monitoring of payments will be introduced. The implementation capacity of the local assemblies will continue to be strengthened through capacity building and training and the introduction of ICT-based operational enhancements (such as electronic registration and electronic time-sheets linked to e-payments). Social Analysis Explanation: The additional financing will not trigger any new safeguard policies since it involves the same scope of subproject works within similar geographical locations of the parent project. Environmental Analysis Explanation: The environmental categorization for the project remains unchanged (classified as Category B given that that associated sub-project works are unlikely to lead to significant adverse environment impacts). The additional financing will not trigger any new safeguard policies since it involves the same scope of sub-project works within similar geographical locations (geographical up-scaling) to that of the parent project. Therefore, the existing safeguard due diligence frameworks (Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF), and Dam Safety Plan for the parent GSOP will be implemented for the proposed Additional Financing. Potential impacts from sub-projects (e.g., dust emission, noise and vibration, burrow pits, generation of construction waste, siltation and modification of flowing waters and health & safety of works and general public) have been readily avoided, minimized, and/or mitigated through measures which included minimization of ground clearance, redesign of roads to ensure flood prevention, provision of settling basins to remove silt and debris before discharge to streams, provision of buffer zones of undisturbed vegetation between construction sites and water bodies, and re-vegetation of dam banks. 14 The climate change sub-projects have provided positive environmental impacts through afforestation of otherwise degraded lands within the beneficiary communities, and this positive impact will be sustained under the additional financing. As part of the project implementation and supervision, the Bank team has visited project sites. The objective was to assess effectiveness of implementation of safeguard due diligence since project inception. The renovation works under the LIPW component was identified as a likely source for potential environmental impacts, so a risk-based approach was adopted in the selection of the sub- project sites visited under LIPW. They included those with sub-project works on small earth dam/dugouts, climate change (afforestation), feeder roads construction, and rehabilitation of socio- economic infrastructure (schools). It was noted during the visit that the project has demonstrated good environmental and social practice. All the sampled sub-projects have been screened (copies of the sampled sub-projects were inspected at both the GSOP regional office and at beneficiary District Assembly) as per requirements of the ESMF to assess potential environmental and social impacts. Screening, registration with the National Environmental Protection Agency (EPA) and issuance of permits (where required) have also been undertaken for the sampled sub-projects (copies of the sampled sub-projects were inspected at both the regional GSOP and EPA offices). Consultation/disclosure requirements with beneficiary communities have been met via EPA and ESMF screening processes for all the sampled sub-projects. Field observations showed that renovation works on the feeder roads, dugouts, and small earth dams were minor and localized, which posed either no or minimal environmental risks (constructional and operational) to potential receptors within their immediate environs. The renovation works have strengthened the overall stability of the existing dugouts through the placement of ripraps, compaction of locally derived earth material (at optimum moisture content) on the surfaces of existing embankments (up and downstream). The construction works were undertaken by contractor supervisors who have hitherto received prior training and certification by experienced engineers from the Ghana Irrigation Development Authority (GIDA). Additionally a dam safety manual has been developed as part of the PIM to address potential dam safety risks. The visited dugouts are being used by both humans and animals, without separation of the access points. This affects water quality through cross contamination or transfer of pathogenic organisms from animals to humans or vice versa. It is recommended that separate access points for humans and animals to the dugouts become a part of an integrated design of all future dugouts. Separate drinking troughs for animals will be integrated into spillways or downstream water canals designs as part of the renovation works to offer mitigation against this risk. Education of community members, especially herdsmen, regarding safe water fetching and drinking practices within the dugouts is recommended. Some key District Assembly staff who received training prior to project commencement have moved on (there are reports of high staff turnover within the District Assembly). This could pose a potential capacity resource risk to the effective implementation of the due diligence instruments on the project. Continuous capacity building exercise on safeguard matters especially at the district assembly level is recommended. A monitoring program will be put in place to identify key project implementing staff (new staff and existing) that will require training/refresher courses on safeguard management procedures associated with the sub-project works. A broader environmental and social audit aligned to financial and procurement management will be undertaken each year using a risk-based approach. 15 Risk Explanation: The overall risk remains moderate. The project design is effective and efficient and has great potential for sustainability given strong government commitment and ongoing improvements in the operational and implementation elements of the project. Currently, a number of measures that are under implementation were designed to strengthen project performance under the proposed Additional Financing, as outlined below. For the Labor Intensive Public Works component, the project will support: (i) the shift from manual to electronic systems and payments; (ii) strengthening the MIS system; (iii) improving targeting; (iv) expanding sensitization and communication dissemination; (v) introducing social accountability and grievance redress mechanisms; (vi) strengthening safeguards monitoring; (vii) deepening capacity building efforts; and (viii) improving coordination and monitoring. Under the LEAP program, the project will work with the government and partners to: (i) mitigate payment delays of budget transfers to the LEAP program by eliminating the use of disbursement linked indicators; (ii) enhance targeting efficiency; (iii) upgrading the management information systems and develop a Common Registry of Beneficiaries to establish a more rigorous check on enrollment and internal controls; (iv) expand on the piloting of electronic payments to speed up payment to beneficiaries; (v) strengthen sensitization and communication; and (vi) foster social accountability and grievance and redress mechanisms. The Additional Financing will provide technical assistance to enhance the capacity of the Ministry of Gender, Children and Social Protection to increases oversight and effective coordination with the National Coordinating Office and other stakeholders. Similarly, strengthened coordination at the district and regional offices and joint reporting among all stakeholders will contribute to improved implementation. The Operational Risk Assessment Framework will be used to monitor, re-assess, and review mitigation measures during project implementation. 16 Annex 1: Revised Results Framework Project Project AF Ghana Social Opportunities Project (P146923) Additional Financing Status: FINAL Name: Stage: Team Requesting Suleiman Namara AFCW1 Created by: Ana Makiesse Lukau on 09-Oct-2013 Leader: Unit: Product Responsible IBRD/IDA AFTSW Modified by: Randa G. El-Rashidi on 30-Apr-2014 Line: Unit: Country: Ghana Approval FY: 2014 Lending Region: AFRICA Investment Project Financing Instrument: Parent Project Parent Project P115247 Ghana---Social Opportunities Project (P115247) ID: Name: . Project Development Objectives Original Project Development Objective - Parent: The objectives of the Project are to improve targeting in social protection spending, increase access to conditional cash transfers nationwide, increase access to employment and cash-earning opportunities for the rural poor during the agricultural off-season, and improve economic and social infrastructure in target districts. Proposed Project Development Objective - Additional Financing (AF): The Project Development Objectives (PDO) of this Additional Financing is to improve targeting of social protection programs and provide income support to poor households through LEAP grants and LIPW infrastructure in targeted districts. Results Core sector indicators are considered: Yes Results reporting level: Program Level . 17 Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target New Share of beneficiaries from the Percentage Value 50.00 poorest 20% of population for Date 31-Mar-2014 30-Jun-2017 LEAP and poorest 30% of the population for LIPW. Comment As of March 31, Baseline data for 2014: LIPW is from survey LEAP indicator done in 2013 as per baseline is 19% report titled LIPW indicator ‘Validation of baseline is 39% targeting (Cannot enter these effectiveness using numbers separately the common targeting under the current mechanism’. Baseline format in the for LEAP is from portal). 2012 Report titled “Options for Targeting of Safety Nets in Ghana”. New Potential and actual beneficiaries in Percentage Value 0.00 70.00 participating districts satisfied with Date 20-May-2010 30-Jun-2017 subprojects, LIPW program and LEAP transfers (%) Comment Annual target Marked for Social protection spending allocated Percentage Value 0.00 30.35 6.00 Deletion to programs targeted to the poor Date 20-May-2010 30-Sep-2013 30-Jun-2016 Comment This indicator was Revised: This introduced during indicator does not project design, adequately measure however, obtaining the PDO and will be a baseline and data revised. for subsequent periods has been difficult. 18 Marked for LEAP and Ghana Health Insurance Percentage Value 0.19 0.70 3.00 Deletion indigent exemption expenditures in Date 20-May-2010 30-Sep-2013 30-Jun-2016 GoG's overall package of pro-poor expenditures as defined by MoFEP Comment LEAP only Dropped: This indicator will be dropped due to lack of clarity on definition of indigents, tracking registration of indigents and definition of pro-poor spending. Revised Person days of unskilled workers Number Value 0.00 3200000.00 9500000.00 Date 20-May-2010 30-Sep-2013 30-Jun-2017 Comment Cumulative target Definition of person- day has been redefined to be: six hours per day work Revised Average annual earnings of Number Value 0.00 245.00 200.00 unskilled workers in LIPWs (cedi) Date 20-May-2010 30-Sep-2013 30-Jun-2017 Comment Revised: The indicator has been revised for clarity to mean earnings per year (1 July to 30 June) per worker on average. Annual target and inflation- corrected using consumer price index 19 The end-of-project targets are based on: minimum of 34 person-days per year for each beneficiary and 6 GHc daily wage. Revised Direct project beneficiaries Number Value 0.00 156000.00 390000.00 Date 20-May-2010 31-Mar-2014 30-Jun-2017 Comment Cumulative target Revised Female beneficiaries Percentage Value 0.00 65.00 65.00 Sub Type Supplemental Revised Direct project beneficiaries under Number Value 0.00 74347.00 200000.00 cash transfer component Sub Type Date 20-May-2010 31-Dec-2013 30-Jun-2017 Breakdown Comment Cumulative target Revised Direct project beneficiaries under Number Value 0.00 80678.00 190000.00 LIPW component Sub Type Date 20-May-2010 30-Sep-2013 30-Jun-2017 Breakdown Comment Cumulative target Revised Beneficiaries of Safety Nets Number Value 0.00 156000.00 390000.00 programs (number) Date 05-Mar-2010 30-Sep-2013 30-Jun-2017 Comment Cumulative target Marked for Beneficiaries of Safety Nets Number Value 0.00 0.00 0.00 Deletion programs - Other cash transfers Sub Type Date 30-Jun-2016 programs (number) Breakdown Comment This indicator was Dropped. This introduced during indicator was difficult 20 project design, to capture and however, obtaining therefore dropped. a baseline and data for subsequent periods has been difficult. Marked for Beneficiaries of Safety Nets Number Value 14000.00 74347.00 200000.00 Deletion programs - Conditional cash Sub Type Date 30-Sep-2013 30-Jun-2016 transfers (number) Breakdown Comment Dropped. This is a World Bank core indicator not included in the original results framework but reported in the ISR. It has been dropped due to lack of application of hard conditions in cash transfers. However, soft conditions have been implemented. Revised Beneficiaries of Safety Nets Number Value 0.00 101400.00 253500.00 programs - Female (number) Sub Type Date 05-Mar-2010 31-Mar-2014 30-Jun-2017 Breakdown Comment Cumulative Target Revised Beneficiaries of Safety Nets Number Value 0.00 80678.00 190000.00 programs - Cash-for-work, food- Sub Type Date 05-Mar-2010 30-Sep-2013 30-Jun-2017 for-work and public works (number) Breakdown Comment Cumulative target 21 Intermediate Results Indicators Actual(Curr Status Indicator Name Core Unit of Measure Baseline End Target ent) New Private contractors technically Percentage Value 74.00 125.00 capable of implementing and Date 31-Mar-2014 30-Jun-2017 supervising LIPW. Comment New. This indicator was not initially in the results framework (but in the results monitoring table). New Small earth dams and dug-outs Number Value 62.00 300.00 rehabilitated (number) Date 31-Mar-2014 30-Jun-2017 Comment New. This has been added to capture the revised PDO in terms of LIPW infrastructure in targeted districts. New Area Planted for Fruit Trees Hectare(Ha) Value 672.00 2360.00 and Multi-Purpose Woodlots Date 31-Mar-2014 30-Jun-2014 (ha) Comment New. This indicator has been added to capture the revised PDO in terms of LIPW infrastructure. Revised Original name: Working group Yes/No Value No No Yes to set priorities for social Date 20-May-2010 30-Sep-2013 30-Jun-2016 protection indicators to be set under MoFEP leadership. Comment The work on Revised to “Social Revised name: Social rationalizatio Protection Policy drafted Protection Policy drafted by n of social by MOGCSP and MoGCSP and submitted to safety nets submitted to cabinet". cabinet has been 22 completed and recommende d preparation of a Social Protection Policy. Marked for LEAP operational review Yes/No Value No Yes Yes Deletion completed and action plan Date 20-May-2010 30-Sep-2013 30-Jun-2016 prepared Comment Completed. Target has been achieved. Revised Original name: Payments made Percentage Value 30.00 20.00 to contractors after receipt of Date 30-Sep-2013 30-Jun-2017 performance security. Revised name: Avg time lapse between Comment Revised: Average time submission of interim lapse between submission certificate by LIPW contractors of interim certificate by and payments by DAs LIPW contractors and payments made to them by MDAs (calendar days). The indicator has been revised because contractors are in almost all cases not able to obtain a bank guarantee needed for the submission of security performance. The revised indicator captures the time efficiency by District Assemblies in payment. Revised Payments to workers under Percentage Value 0.00 60.00 80.00 LIPW program made within 20 Date 20-May-2010 31-Mar-2014 30-Jun-2017 23 days after the attendance at Comment Annual Target work sites Marked for Updated and tested menu of Yes/No Value No Yes Yes Deletion LIPW with costs and labor Date 20-May-2010 30-Sep-2013 30-Jun-2016 contribution unit Comment Dropped. The target for this indicator has been achieved and the indicator will not be included in the revised results framework but included in the table which reports achieved results. Revised Roads rehabilitated, Rural Kilometers Value 0.00 421.00 700.00 Date 20-May-2010 31-Mar-2014 30-Jun-2017 Comment Revised. The target has been changed from annual to cumulative targets and annual and end-of-project targets have been revised upward. Revised Original name: Rehabilitated Percentage Value 50.00 50.00 90.00 dams inspected annually by Date 20-May-2010 30-Sep-2013 30-Jun-2017 communities for dam safety concerns. Revised name: Comment Revised indicator name: Completed subprojects Completed sub-projects inspected annually by inspected annually by Communities (under spn of communities (under district tech. spc). supervision of district technical specialist) (%) Revised Original name: Maintenance Number Value 10.00 10.00 60.00 program established for roads Date 20-May-2010 31-Mar-2014 30-Jun-2017 24 and dams. Revised name: Comment Revised. District District Assemblies with Assemblies with maintenance programs maintenance programs established for completed sub- established for completed projects (number) sub-projects (number). This indicator has been revised to include all LIPW sub-projects. DA maintenance programs include communities and maintenance activities by type of project (dams/dug-outs, roads, tree-planting) Revised Total unskilled worker earnings Percentage Value 40.00 48.00 62.00 as share of LIPW cost Date 20-May-2010 31-Mar-2014 30-Jun-2017 Comment Annual Target Revised LEAP administrative costs Percentage Value 15.00 11.00 compared to total costs Date 30-Sep-2013 30-Jun-2017 Comment Revised Enrolled beneficiaries in the Number Value 0.00 100.00 270.00 districts where LEAP pilot will Date 20-May-2010 31-Mar-2014 30-Jun-2017 be intensified (% increase) Comment Status (2013) in absolute numbers is 74,000. Revised Targeting performance (share Percentage Value 19.00 50.00 of beneficiaries from the Date 31-Mar-2014 30-Jun-2017 poorest 20% of population) Comment Revised and updated. This indicator has been elevated as PDO indicator given that this is an 25 outcome indicator capturing the outcome on improved targeting. Furthermore, the indicator has become clearer by removing "targeting performance". Marked for Pilot formally evaluated against Yes/No Value No Yes Yes Deletion agreed upon indicators Date 20-May-2010 30-Sep-2013 30-Jun-2016 (coverage and targeting performance) and lessons Comment Dropped. The target has learned incorporated into been achieved. rollout plan Marked for Project resources used in Yes/No Value No Yes Yes Deletion compliance with project Date 20-May-2010 30-Sep-2013 30-Jun-2016 objectives and procedures Comment Dropped. This indicator relates to compliance in project management and is being dropped. Marked for A policy and institutional Yes/No Value No No Yes Deletion framework favorable to Date 20-May-2010 30-Sep-2013 30-Jun-2016 scaling-up the project is in place Comment Dropped. Since a dedicated indicator on social protection policy has been added. 26 Annex 2 Operational Risk Assessment Framework (ORAF) Ghana: AF Ghana Social Opportunities Project (P146923) . Risks . Project Stakeholder Risks Stakeholder Risk Rating High Risk Description: Risk Management: Increased number of implementing agencies The overall success of the implementation of this project is contingent on strong coordination across the which could result in lack of coordination several government ministries and agencies that are implementing different components of the project. The and reduced clarity in decision-making. Bank team will ensure that there are clear roles, responsibilities and decision-making protocols outlined in the project document, particularly between the two main implementing agencies – the Ministry of Local Government and Rural Development, and Ministry of Gender, Children and Social Protection. In addition, all other relevant ministries and agencies will be consulted on appropriate roles and responsibilities, and their feedback will be reflected in the design and preparation of the Project. Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress menta Date: : tion Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating High Risk Description: Risk Management: The MoGCSP is relatively new to social A new, fully staffed Targeting Unit will be established under the MoGCSP to implement the National protection and may be unable to deal with Targeting System. Capacity building for these long term consultants as well as existing government staff complexities of the targeting and LEAP, will be supported through trainings and workshops on social protection. The team will also provide effective particularly in relation to financial oversight to build the capacity of new government stakeholders and foster collaboration to build capacity. management and procurement Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress menta Date: : tion 27 Governance Rating Substantial Risk Description: Risk Management: Weak Financial Management and The project will put in place qualified FM and Procurement specialists in the new implementing agency to Procurement capacity in the MoGCSP may ensure robust financial and social accountability mechanisms. The GSOP project unit has also built lead to misuse of resources. significant experience in financial management and procurement; this expertise will also be transferred to the MoGCSP during project design and preparation. Internal Control: Inadequacy of controls in the preparation and Monitoring of district finance functions by the regional accountants to ensure compliance. approval of transactions, payments, cash and Periodic internal control review and oversight by the internal control department of the MLGRD bank transactions. Risk of non-compliance to internal control Furthermore the Bank has supported a fiduciary risk assessment of the MoGCSP. The project will support processes, particularly at the sub-national the implementation of key recommendations as needed, and continue to promote the building of the fiduciary system through technical assistance on financial management, accounting and procurement. The e- payment system for LEAP beneficiaries will also be supported to improve transparency and accountability in the program's cash delivery mechanism. Internal controls will be in line with GOG approval and authorization processes and reinforced by guidelines as per the PIM Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress menta Date: : tion Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress menta Date: : tion Project Risks Design Rating Moderate Risk Description: Risk Management: The project design may be complicated given The preparation team has worked very closely with the government team (through TA support) to explore the weak government capacity to prepare the technological options and make informed decisions for the targeting roll out. The Bank will continue to project. There is also significant additional provide TA and make available its technical expertise on technology to guide project implementation. New capacity required for the creation of the ICT and data collection approaches will first be tested out before scaling up. 28 single registry and the attendant technology. In addition, data collection will be undertaken by the Ghana Statistical Service or the National Identification Challenges in coordinating the activities of Authority, both of whom have had significant experiences in large data collection exercises in Ghana. the various districts assemblies and spending units. The project builds on the existing institutional arrangements of GSOP. The Unit has gained much experience through the implementation of the GSOP project and its predecessor Community Based Rural Inadequate monitoring and tracking of Development Project (CBRDP); this will be leveraged to mitigate this risk. The presence of the National activities and expenditure due to the wide Project Steering Committee (NPSC) would provide guidance on strategic, policy and implementation issues dispersion and the small value of and assess progress towards achieving the project’s objectives and take corrective action if necessary. transactions. Capacity building across all levels of government will be maintained to mitigate this risk. Administrative delays in awarding contracts and paying contractors may result in labor Qualified local and national contractors with experience and good track records will be contracted to engage intensive works being carried out after the in such works. agricultural off-season is over, during periods of peak labor demand. Enforce rigorous supervision of civil works contracts. Poor quality of the LIPWs due to lack of Provide additional training to increase the pool of qualified local and national contractors and to ensure that convergence of labor, managerial, material, supervisory bodies have the required technical capacities. and technical (engineering) inputs at the project site would limit the creation of useful Provide training to the relevant services of DAs and strengthen RCC capacities to monitor, provide technical public assets. backstopping and if necessary, enforce compliance with technical and fiduciary guidelines and agreements. Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress Limited technical and managerial capacity of menta Date: : DAs and limited ability of DAs to follow tion prudent financial management and procurement practices Social and Environmental Rating Low Risk Description: Risk Management: There is a risk of exclusion and potential for Information campaign to reduce exclusion errors and ensure that the poorest are reached. In addition, an e- leakage of resources, for instance through payment system is currently being piloted for LEAP, and would eventually be used to effect payments to all elite capture. beneficiaries; this allows for improved transparency and more timely reconciliation after each payment cycle. The project will also support the development of a grievance redress mechanism for beneficiaries to Tension between adjacent communities report issues related to exclusion and leakage. (those benefiting and those who are not) and 29 expectations from communities regarding to The ESMF outlines measures to address these issues, among others including sensitization, information the overall benefit from the project at dissemination and participation and inclusion of beneficiaries or their representatives at every stage of the individual and community levels could pose a project preparation and implementation. These steps will ensure that the possible negative impacts are not challenge only mitigated but are in fact positively harnessed for overall benefits. The Government of Ghana has prepared an updated Resettlement Policy Framework (RPF) and an The project could trigger two safeguards Environmental and Social Management Framework (ESMF) designed to mitigate these potential safeguard policies: (i) the involuntary resettlement, risks. In addition, lessons learnt and experience gathered on the project coupled with continuous monitoring OP/BP 4.12 and (ii) the Environmental and supervision will further minimize any potential risk to the project Assessment, OP/BP 4.01. Resp: Client Stage: Impleme Recurrent Due 30-Jun-2016 Frequency Status: In Progress ntation : Date: : Program and Donor Rating Moderate Risk Description: Risk Management: Although in principle donors have shown The World Bank team will continue to engage with the donors to ensure support to the project. Dialogue will support to the concept, there remain also be maintained with the government to provide strong leadership and ensure that the project is realistic differences in opinion about the scale and and complementary to existing work on SP being implemented timeline for the roll out. by DPs in the sector. The Bank team will also provide regular updates on key issues at the policy and implementation levels Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress menta Date: : tion Delivery Monitoring and Sustainability Rating Moderate Risk Description: Risk Management: Weak Government capacity to monitor may The Project will support a stronger M&E team within the Social Protection unit, particularly for process lead to the failure of proper implementation evaluations, spot checks and independent audits of the social protection system. and weak sustainability. Sustainability of LIPW subprojects may be at Proper guidelines in the OM coupled with high levels of local ownership and continued operations and risk following project completion maintenance are expected given that public works are selected from District Development Plans/Community Action Plans Resp: Client Stage: Imple Recurrent: Due 30-Jun-2016 Frequency Status: In Progress menta Date: : tion 30 Overall Risk Overall Implementation Risk: Moderate Risk Description: The overall risk remains moderate. There are a number of measures under implementation designed to strengthen project performance under the proposed Additional Financing. There is great potential for sustainability given strong Government commitment and ongoing improvements in the operational and implementation elements of the project. 31 Annex 3: Status of Results Framework at Restructuring Project Development Objectives Indicators** Unit of Number and Percent Indicator Name 31-Dec-13 Measure Planned 5.00 Actual NA Revised: This indicator does not adequately measure Dropped the PDO and will be revised. The previous year’s estimate of 30.35% achievement was based on a MoF Social protection report on sectoral pro-poor spending of 5,350.30 GHc spending allocated to out of the total GoG “provisional actual” expenditure 1 Percent programs targeted to of 17,631.2 GHc million. The government’s spending the poor Comments on social protection is difficult to estimate and the project has no particular interventions related to spending. On the other hand, improved targeting is a characteristic of the project that has positive impact on supporting the government’s rationalization programs. LEAP and Ghana Planned 1.50 Health Insurance indigent exemption Actual 0.73 expenditures in 2 Percent GoG's overall Dropped package of pro-poor Dropped: This indicator will be dropped due to lack of Comments clarity on definition of indigents, tracking registration expenditures as defined by MoFEP of indigents and definition of pro-poor spending. Planned 1,150,000 9,500,000 Actual 3,156,812 Person days of Number Revised: The targets have been defined as cumulative 3 unskilled workers targets and annual targets have been used to report the Comments end-of-project (EOP) targets. This has been revised upwards from 5.65 m to 9.5 m person-days. Disaggregation by districts (49) is too 32 demanding in terms of data collection and has been dropped. This indicator would be maintained as PDO indicator One in the Final Draft RF Planned 150.00 200 Actual 245.26 Revised: The indicator has been revised for clarity to Average Earnings of mean earnings per year (1 July to 30 June) per worker 4 unskilled workers in Number on average. Further, the annual target has been revised LIPW (GHc) upwards from 150 to 200 GHc as average annual Comments earnings per unskilled worker. This indicator was maintained as PDO indicator Two in the Final Draft RF. Planned 93,000 390,000 Actual 155,025 Revised: (1) definition of targets; and (2) revision of targets. For LIPW, the target has been revised from annual to cumulative and the EOP target revised upwards from Direct Project 64,000 to 200,000. LEAP targets are cumulative and 5 Beneficiaries (LEAP Number the EOP target has been revised upwards to 350,000. & LIPW) Targets for LEAP and LIPW combined are cumulative Comments and revised upwards from 204,000 to 550,000. The target for percentage of female beneficiaries has been revised upwards to 70% for LEAP and from 30 % to 50% for LIPW. This indicator was maintained as PDO indicator Five in the Final Draft RF. Female beneficiaries Planned 30.0 253,500 (65%) 6 Percent (LIPW and LEAP) Actual 65.0 33 Revised. The indicator over achieved as targets were set low. Female participation will be continuously monitored. Comments This indicator was maintained as part of PDO indicator Five in the Final Draft RF. Planned 80,000 200,000 Actual 74,347 Revised. The indicator is relevant and must be maintained however the target needs to be revised to Direct Project reflect: (1) the updated definition of targets (cumulative Beneficiaries under targets for number of beneficiaries rather than annual) 7 Number and ; (2) the revision of targets reflecting the additional cash transfer component (LEAP) Comments number of beneficiaries and percentage of female beneficiaries resulting from the proposed additional financing and extension of the closing date. This indicator was maintained as part of PDO indicator Five in the Final Draft RF. Planned 15.00 140,000 (70%) Actual 68.80 No Change. The indicator over achieved but is still Female Beneficiaries relevant for future studies. 8 under Cash Transfer Percent component (LEAP) This indicator was maintained as part of PDO indicator Comments Five in the Final Draft RF. The estimate of the target of 140,000 is obtained by multiplying the total target beneficiaries of cash transfer: 200,000 by 70% as in the Final Draft RF. Planned 13,000 190,000 Actual 80,678 Direct Project 9 Beneficiaries under Number Revised. Targets were set low and need to be revised. LIPW component Comments This indicator was maintained as part of PDO indicator Five in the Final Draft RF. 34 Planned 30 95,000 (50%) Actual 60.4 Revised. This indicator over-achieved as targets set were low. Data still needs to be collected for future Female Beneficiaries impact evaluations and studies. 10 under LIPW Percent component Comments This indicator was maintained as part of PDO indicator Five in the Final Draft RF. The estimate of the end target of 95,000 is obtained by multiplying the total cumulative target beneficiaries of LIPW: 190,000 by 50% as in the Final Draft RF. This indicator was treated the same as Indicator number 5 in this table. Prior to GSOP safety nets Beneficiaries of projects were not well defined and attribution of any 11 Safety Nets programs Number changes in numbers of beneficiaries over time to GSOP (number) was questionable and so was limited to LEAP and LIPW. WB core indicator and reported in ISR. Beneficiaries of This indicator is the same as Indicator number 8 in this Safety Nets programs 12 Number table and should be deleted (conditional cash transfer - Conditional cash issues were not applicable). transfers (number) Beneficiaries of Same as Indicator 6 above, in the GSOP context. WB 13 Safety Nets programs Number core indicator and reported in ISR. - Female (number) Beneficiaries of Safety Nets programs This indicator is the same as indicator 9 above. It was - Cash-for-work, 14 Number maintained as PDO indicator 5 in the Final Draft food-for-work and RF.WB core indicator and reported in ISR. public works (number) **Over all expenditure is 59.93% US$53,101,600 out of US$88,600,000. 35 Annex 4: Detailed Project Description 1. The revised project objective under additional financing is to: improve targeting of social protection programs and provide income support to poor households through LEAP grants and LIPW infrastructure in targeted districts. The project aims to scale up existing interventions under the Labor Intensive Public Works (LIPW) and the Livelihood Empowerment Against Poverty (LEAP), and strengthen social protection systems and implementation capacity. The key performance indicators related to the Project Development Objectives (PDO) are: (i) Person days of unskilled workers disaggregated by district (number); (ii) Average annual earnings of unskilled workers in LIPWs (GHS); (iii) Share of beneficiaries from the poorest 20 percent of population (percent); (iv) Potential and actual beneficiaries in participating districts satisfied with sub-projects, LIPW program, and LEAP transfers (percent); and (v) Direct project beneficiaries - LEAP & LIPW (number)of which are female (percent). 2. The duration of the original project has been extended by one year under additional financing to close on June 30, 2017. The project’s components have been restructured and simplified into the following four components and sub-components:  Component One: Social Protection Policy and Systems Strengthening - Sub-component 1A: Social Protection Policy Formulation - Sub-component 1B: Social Protection Systems Strengthening  Component Two: Labor Intensive Public Works Implementation and Capacity Building - Sub-component 2A: Labor Intensive Public Works (LIPW) - Sub-component 2B: Capacity Building for LIPW  Component Three; Livelihood Empowerment Against Poverty Implementation and Capacity Building - Sub-component 3A: Livelihood Empowerment Against Poverty (LEAP) Grants - Sub-component 3B: Capacity Building for LEAP  Component Four: Project Management and Coordination - Sub-component 4A: Project Management and Coordination by the Ministry of Local Government and Rural Development - Sub-component 4B: Project Management and Coordination by the Ministry of Gender, Children and Social Protection 3. The revised project components are described below. The distribution of financing and the comparison Original/Revised Components is shown in Table 4 at the end of this section. Component One: Social Protection Policy and Systems Strengthening AF US$9.0 million 4. This component builds on the findings of the rationalization study that was funded under component 1 of the original project. This component will have two sub-components: Sub-component 1A: Social Protection Policy Formulation and Sub-component 1B: Social Protection Systems Strengthening. 36 Sub-component 1A: Social Protection Policy Formulation AF US$1.0 million 5. The objective of this sub-component is to strengthen coordination, and implementation of social protection programs through the preparation of a national social protection policy, strategy, and an implementation action plan. This sub-component will finance technical assistance, consultations, workshops, and policy dissemination. Policy formulation will be done in consultation with other government agencies involved in social protection, donor partners, and all other relevant stakeholders. 6. Additionally, this sub-component will provide technical assistance to the Ministry of Finance to develop mechanisms within the current budget framework to allocate and monitor social protection spending more efficiently. Analytical work to support social protection budget allocation efficiency will also be supported. The component will further support capacity building for staff of the Ministry of Finance and the National Development Planning Commission to improve understanding and appreciation of social protection issues through trainings, study tours, and in country field visits. Sub-component 1B: Social Protection Systems Strengthening AF US$8.0 million 7. The objective of this sub-component is to support strengthening of social protection systems through the establishment of the Ghana National Household Registry (GNHR). The registry is meant as a tool to improve efficiency, effectiveness, and expand the coverage and scope of social protection interventions in Ghana. This sub-component will finance electronic data collection and processing on households using a proxy means test (PMT) that will be reviewed and updated using the 2013 Ghana Living Standards Survey (GLSS 6) data. This process – the National Targeting System (NTS) – will be used to build the GNHR on poor households eligible for selection by social protection programs. The GNHR will be comprised of households, their members, basic living conditions, and PMT scores. The GNHR will be used across social protection programs (including LEAP, LIPW, and the National Health Insurance Scheme (NHIS)) to target extremely poor beneficiaries, thus removing redundancy across programs in the targeting processes. 8. Over the last decade, Ghana has made significant progress in stimulating economic growth, reducing poverty, and improving governance. Impressively, between 1991 and 2006, the country managed to halve extreme poverty from 36.5 percent to 18.2 percent, and nearly halved the proportion of people living below the poverty line from 51.7 percent to 28.5 percent.3 9. These gains, largely a product of targeting based on poverty and vulnerability, have outpaced the ability of the system to keep accurate records in most social protection programs. There is no systemic, electronic mechanism to record the demographic information of potential and served populations (i.e., registry), annotate the coverage and monitoring of benefits, or share information across programs. In terms of the record keeping itself, specifically: (i) Targeting mechanisms are not always clearly defined. (ii) Beneficiaries potentially eligible for current coverage are not included in existing registries. 3 Source: GLSS IV & V, GSS 37 (iii) Socio-economic data beyond personal identity, age, and sex are not captured. (iv) Very few programs have a computerized registry of beneficiaries, meaning registries are not integrated. 10. This means respectively that: (i) Distortions occur in beneficiary identifications. (ii) The process to identify and enroll potential beneficiaries has to be re-established. (iii) Robust identification and monitoring of beneficiaries and potential beneficiaries is inhibited. (iv) Government agencies do not have comprehensive data on the actual coverage of social interventions—in terms of identifying individual beneficiaries and the package of benefits and services delivered to each household, inhibiting strategic planning and centralized monitoring of social programs as a whole. 11. The Ministry of Gender, Children and Social Protection (MoGCSP), the institution responsible for coordinating the implementation of the country’s social protection system, recognizes that these challenges are directly related to the absence of a common household registry. The MoGCSP has proposed the establishment of the GNHR as a tool to expand the coverage and scope of social protection interventions. Building a registry based on primary data from households will allow future social programs to select their beneficiaries using indirect indicators, which collectively approximate the socio-economic status of the households. The GNHR will also improve existing programs by integrating the socio-economic and demographic information from existing records into a single registry. 12. There are basically two ways to operationalize and roll out the GNHR: census-style survey approach and on-demand survey approach. The former entails implementing a house-to-house survey to collect basic information from all households; in the latter, mobile centers establish temporary facilities in communities to register households, and households go to the mobile center. Using information on the geographic location of households from the census and other sources, one can combine these two approaches to ensure that poor households are registered. Regardless of the specific approach, a massive public information campaign (PIC) is needed to support sensitization, community outreach, and information dissemination to the public about the registration process. Outreach is critical to ensure the success of this type of approach, and it must be tailored to the literacy levels, cultural and ethnic differences, and accessibility to remote areas. 13. Within the Ghanaian context of limited capacity, funds, and time, the MoGCSP has chosen to use the on-demand survey approach through mobile targeting centers during the initial stage of the rollout, since it will provide acceptable results with risk variables that can be controlled at the lowest cost. This method would be complemented by self-reporting and registration at district-level offices to address any households inadvertently omitted during registration. Other key elements for structuring the GNHR include: determination of household information to be included in the registry: data collection: redesign and apply PMT formula to the information gathered: and case management of household records. 38 14. The implementation of the GNHR will be carried out in phases, with the first phase starting in the Upper West Region in 2014, using a Mobile Targeting Center Approach. Phase 2 will continue with the Upper East region in 2015 and the Northern Region in 2016 using resources from the additional financing. During the first phase, using existing resources from the original project, the current LEAP PMT formula will be updated based on new data from the Ghana Living Standards Survey 6 (GLSS6). This process would refine the scope of the PMT and improve its accuracy, applicability and relevance to other social protection interventions. Implementation will be sequenced, starting with the Upper West region in 2014, Upper East Region in 2015 and Northern Region in 2016. Geographical maps will be prepared for the rest of the country. It is expected that the rollout to the other seven regions of the country will follow these maps. Details of implementation will be provided in the overall Project Implementation Manual (PIM) and the specific GNHR registry Operations Manual. 15. The short term steps to operationalize and begin to construct the GNHR are: (i) building the institutional capacity, including recruiting the staff, of the GNHR Unit in the MoGCSP; (ii) establishing the infrastructure to roll out household registration, including the technology to be used in data collection and processing; (iii) discussing and signing the Memorandum of Understanding with the Ghana Statistical Service on the use of census and GLSS 6 data; (iv) exploring the possibility of a strategic alliance with the National Identification Authority and National Health Insurance Authority during the rollout; and (v) drafting an Operations Manual to cover broadly all areas of this effort. 16. As a result of this project, the social protection system in Ghana would be supported with: (i) a database on households and their members, using as input, primary data from the systematic application of the PMT questionnaire; (ii) a better quality of information recorded in this new database, especially with regard to household participation in various specific social programs, demographic data, and socio-economic information; (iii) an instrument for potential poverty targeting in the form of a proxy for predicting poverty, which can be used to classify households socio- economically; and (iv) a technological platform and institutional/organizational structure of the National Targeting Unit housed in the Ministry of Gender, Children and Social Protection. Component Two: Labor Intensive Public Works Implementation and Capacity Building AF US$19.2million 17. The objective of this component remains unchanged. The proposed additional financing will support the scale-up of LIPW to reach more beneficiary households. Innovations, particularly to manage oversubscription, improve targeting, and enhance delivery and monitoring of payments, will be introduced. The implementation capacity of the local assemblies will continue to be strengthened through capacity building and training. This component will be reorganized under the proposed AF with two sub-components: Sub-component 2A: Labor Intensive Public Works and Sub-component 2B: Capacity Building. Sub-component 2A: Labor Intensive Public Works (LIPW) AF US$18.0 million 16. The proposed additional financing will not only deepen LIPW activities in the existing 49 districts but also scale up to an additional eleven new districts. Selection of the new districts is based 39 on the incidence of poverty at the district level (using the GLSS 5 Poverty Map and WFP Food Vulnerability Index, 2009), and internal ranking of districts used by Regional Coordinating Councils (using criteria such as the current conditions of road network, population of largest urban settlement, population living in urban areas and access to essential services). 17. The basic design of the LIPW component and menu of sub-projects would be maintained. Labor content of the original project accounted for approximately 50 percent; the other 50 percent went to contractors and materials. To maximize labor content under the proposed AF, the breakdown of sub-projects would be 20 percent for feeder roads, 30 percent for climate change activities, and 50 percent for small earth dams and dugouts, but may cover other sub-projects that lend themselves to LIPW methods high labor content and based on community demand. To manage oversubscription, the proposed AF activities would support: (i) improved planning to enable site managers to take into account a realistic number of work days and tools that are available per cycle; (ii) in addition to self- targeting, use community-based targeting (CBT) to further narrow the eligible beneficiary pool; and (iii) computerize time sheets to enable faster processing of payroll information as well as introduction of an electronic payment mechanism to improve efficiency. The project will continue to use qualified contractors to ensure that small earth dams and dugouts are executed in strict conformity with standard designs and specifications. Details on quality improvements for sub-projects will be detailed in the revised PIM. For sustainability, income-generating activities financed under a US$3 million Japanese Social Development Grant will complement LIPW activities. 18. The current implementation of LIPW faces challenges related to digitizing beneficiary information and data on attendance and payments at LIPW work sites. Four key challenges have been identified. First, registration for LIPW is paper-based and registered beneficiaries do not always match those who show up to work once the sub-project implementation begins. Second, the District Assemblies (DAs), with support from the Regional Coordinating Offices (RCOs), are presently responsible for gathering time sheet data and digitalizing it using the Daily Attendance Sheet (DASH) electronic template. However, in practice the DAs do not always enter the data or enter it infrequently and in most cases, the RCOs absorb this responsibility.4 The reasons for this include: (i) the client/field supervisors responsible for recording the attendance data on paper-based forms do not always use the standardized DASH time sheet, making it more difficult to digitalize the data; (ii) there is inadequate capacity and more importantly lack of motivation at the DA and RCO levels to digitalize the DASH data; and (iii) the electronic DASH template is a relatively complex Microsoft Excel-based tool that tracks attendance over the entire duration of the sub-project implementation (i.e., data is cumulative). Figure 1 shows how attendance information is supposed to flow and the responsibilities at each stage. 4 Except for sub‐projects covered by one RCO, Upper West, where the DASH data is not being digitalized at all. 40 Figure 1: Current Process from Recording of Attendance to Payments Data flow 1 2 3 4 5 Timekeepers DA schedule DA prepares Supervisors submit DASH to officer enters monthly DASH data submit DASH to Client/Field data in electronic summaries and collected by DA Accounts unit supervisor DASH template forwards to RCOs timekeepers* *For contractor implemented sub‐projects, the Payments timekeeper is the contractor’s supervisor or foreman. DCD and DCE** Client/Field approve and supervisors and payroll is Account Officer prepared make payments **District Chief Director and District Chief Executive. 19. Third, while there are electronic records of the earnings due to each beneficiary, electronic records of payments made against the time sheets do not exist and time sheets are digitalized after (or at best in parallel to) payments. Fourth, although there is an established minimum of days each beneficiary is entitled to work, in practice the actual number of days worked varies across sub- projects and in some cases the minimum is not achieved due to rotational practices introduced as a response to oversubscription. 20. These challenges have occasionally led to high numbers of beneficiaries per sub-project, which increases the difficulty of supervision, and have hampered regular monitoring (particularly short-term regular monitoring) of attendance, payments, and numbers of beneficiaries per sub-project and in the program overall. Excessive rotational practices can translate into diluted program impacts if the benefits are being spread too thin. Finally, the use of manual payment systems carries an elevated risk of leakage, particularly when combined with the challenges described above. 21. The GSOP is currently in the process of developing a management information system (MIS), which will contribute to resolving these challenges. The MIS is being developed by a local software firm and is in the beta stage, with data migration currently underway. The system is expected to be ready for operationalization by June 2014. Development of the MIS will take into account the lessons learned in the first stage of the project; in particular, the MIS will aim to have offline capabilities and interfaces that are as user-friendly as possible (and mirror paper-based forms) to facilitate the use by RCOs and DAs. Initially, the MIS will be rolled out to the RCOs, and subsequently to the DAs once the RCOs capacity to use the system has been built. 22. To further address the challenges described above, the proposed AF will support several ICT- based innovations. The first will be the introduction of an electronic registration process, which will use smartphones to register each beneficiary (collecting basic information including an ID picture) 41 and then use information gathered during the registration process to populate electronic and paper- based DASH time sheets. To test this approach before rolling it out to all sub-projects in 2015, a pilot e-registration initiative is expected to be carried out in April 2014 in the Upper East region. Second, e-payments, directly linked to DASH data, will be introduced in 2015. Under this new payment system, electronic data from DASH would be delivered electronically to a mobile money or other e- payment service provider, which would execute direct payments to beneficiaries, and provide the GSOP payment reconciliations electronically through the MIS system. The AF will also support data entry personnel at the RCO level to support the data processing at both the RCO and DA levels. Figure 2 shows what the process from recording of attendance to payment reconciliation would look like once the innovations have been introduced. Figure 2: New Process from Recording of Attendance to Payments 1 2 3 4 5 6 Timekeepers RCO verifies Supervisors DA schedule submit DASH to DASH data & Payment DASH data submit DASH to officer enters Client/Field submits to provider pays & collected by DA Accounts unit data in electronic supervisor payment reconciles in MIS timekeepers* DASH template provider *For contractor implemented sub‐projects, the timekeeper is the contractor’s supervisor or foreman. Sub-component 2B: Capacity Building for LIPW AF US$ 1.2 million 18. The original capacity building component was implemented solely by the Ministry of Local Government and Rural Development (MLGRD). Under the proposed AF, this component has been restructured to enable the respective ministries to implement their own capacity building activities. This sub-component will finance capacity building activities for implementation of LIPW in selected project districts. Several distinct sets of capacity building activities under the original project will continue to be supported under the proposed AF, specifically: (i) establishing a LIPW supportive policy and institutional framework; (ii) capacity building to support LIPW implementation aimed at decision-makers, DA technical staff, relevant line agencies, and contractors; and (iii) ongoing capacity building for DAs in the technical and management capacities of LIPW target districts. 23. In addition, this sub-component will support the implementation of social accountability and grievance redress mechanisms, development communication activities, capacity building for the introduction of ICT-based operational enhancements (e.g., electronic registration and electronic time sheets linked to e-payments), impact evaluations, and other activities to support the overall objective of strengthening LIPW. Component Three: Livelihood Empowerment Against Poverty (LEAP) Implementation and Capacity Building AF US$15.7 million. 24. This component will be restructured under the proposed AF to have two sub-components: Sub-component 3A: LEAP Grants and Sub-component 3B: Capacity Building for LEAP. 42 Sub-component 3A: LEAP Grants AF US$10.0 million. 25. The objective of this sub-component is to support the scale-up of LEAP grants to benefit more households. The scale-up will involve deepening in the existing districts with higher poverty incidence, i.e., the three northern regions and selected areas in the south. Deepening in the poorest region, the Upper West region, will capture approximately 100,000 households. Under the original project, LEAP grants were meant to be conditional, the Project Appraisal Document (PAD) was not clear whether these were hard or soft conditions. In practice, soft conditions (co-responsibilities) have been implemented. Beneficiaries are sensitized about sending children ages 5-15 to school, and ensuring regular clinical visits and full immunizations for all children in beneficiary households. The implementation of these co-responsibilities needs to be better structured through regular workshops under additional financing. The proposed AF will continue to finance cash grants to additional beneficiary households. Broadly, the government has increased its allocation to LEAP from GHc 7.5 million in 2010 to GHc 38 million in 2014. Going forward, the financing of this component will be restructured to utilize regular project investment financing modalities, with periodic payments made directly to the Ministry of Gender, Children and Social Protection for the LEAP cash grants. Details of implementation will be provided in the overall Project Implementation Manual (PIM) and the specific LEAP Operations Manual. Sub-component 3B: Capacity Building for LEAP Original AF US$5.7 26. In order to enhance LEAP implementation, this sub-component would provide financing to strengthen the program’s operations at the national, regional and district levels. Specifically, the sub- component would finance the upgrading of a management information system for the program (to be coordinated with the GHR) that will support data entry and analysis at the national and decentralized levels, delivery charges associated with the new electronic payments mechanism, and training and capacity building of staff to implement LEAP more effectively. This sub-component would provide funding for development communication activities, as well as monitoring and evaluation (i.e. regular spot checks of operation activities and impact evaluation studies), and social accountability and grievance redress systems for the program. In addition, the sub-component would also ensure and support the improved implementation of co-responsibilities through structured workshops, regular and documented dissemination fora for LEAP beneficiaries. Component Four: Project Management and Coordination AF US$6.1 million. 27. The objective of this component remains unchanged. Overall project implementation will be undertaken by the Ministry of Local Government and Rural Development (Components 2 and 4A) and the Ministry of Gender Children and Social Protection (Components 1, 3 and 4B). The Chief Directors of the two ministries will maintain overall financial responsibility of project funds. Policy implementation guidance will be provided by a project steering committee that will be co-chaired by the Minister of Gender, Children and Social Protection and the Minister of Local Government and Rural Development. The committee will comprise of relevant ministries, departments and agencies of the government and civil society organizations (a full list is elaborated in Annex 4 under revised implementation arrangements and support). The steering committee will approve annual work plans, budgets, quarterly and annual progress reports and mobilize government support. (Details of 43 implementation will be provided in the overall Project Implementation Manual (PIM) and the specific GNHR and LEAP Operations Manuals.) 28. Under the proposed AF, this component will be restructured into two sub-components to reflect the addition of the MoGCSP as an independent implementing agency: sub-component 4A: Project Management and Coordination by the Ministry of Local Government and Rural Development, and sub-component 4B: Project Management and Coordination by the Ministry of Gender, Children and Social Protection. Sub-component 4A: Project Management and Coordination by the Ministry of Local Government and Rural Development AF US$5.0 million 29. The objective of this sub-component is to support activities related to project management and coordination, equipment and vehicles, and incremental operating costs under the GSOP National Coordinating Office and Regional Coordinating Officers for LIPW sub-projects. Sub-component 4B: Project Management and Coordination by the Ministry of Gender, Children, and Social Protection AF US$1.1 million 30. The objective of this sub-component is to support activities related to project management and coordination, equipment and vehicles, and incremental operating costs under the MoGCSP. 44 Annex 5: Revised Implementation Arrangements and Support 1. The implementation structure for the proposed Additional Financing (AF) shall comprise two key ministries as implementing agencies, two other supporting ministries with specific roles, a National Project Steering Committee, and three national coordinating offices; (i) Labor Intensive Public Works (LIPW); (ii) Livelihood Empowerment Against Poverty (LEAP); and (iii) National Targeting (NTU). The project will also include related regional and district offices, working through the decentralized governance systems in targeted District Assemblies (DA). 2. Overall project implementation will be undertaken by the Ministry of Local Government and Rural Development (Components 2 and 4A) and the Ministry of Gender Children and Social Protection (Components 1, 3, and 4B). The Chief Directors of the two ministries will maintain overall financial responsibility of project funds. 3. Ministry of Local Government and Rural Development. The Minister of the Ministry of Local Government and Rural Development (MLGRD) shall have oversight responsibility for the management of the LIPW component of the project. The ministry shall supervise and approve all key decisions for the effective implementation of the LIPW component of the project. All contracts, appointments and significant expenditures shall be approved by the ministry. 4. Ministry of Gender, Children, and Social Protection. The Minister of the Ministry of Gender, Children and Social Protection (MoGCSP) shall have oversight responsibility for the implementation of Component 1: Social Protection Systems and Policy and Component 3: Livelihood Empowerment Against Poverty. The Ministry shall closely supervise and approve all key decisions for the effective implementation of the LEAP, SP systems and policy of the project. All contracts, appointments, and significant expenditures shall be approved by the ministry. 5. Ministry of Finance. The Ministry of Finance (MoF) shall support implementation of Component 1: Social Protection Systems and Policy especially with respect to facilitating multi- sectoral collaboration for effective execution of the component and carrying out analytical work to support budget allocation efficiency. 6. Ministry of Employment and Labor Relations. The Ministry of Employment and Labor Relations (MELR) shall facilitate the passage of the LIPW Policy under Component 2: LIPW Implementation and Capacity Building. The ministry shall further develop the strategy for implementation in close collaboration with the MLGRD. 7. National Project Steering Committee. Policy implementation guidance will be provided by a National Project Steering Committee (NPSC) that will be co-chaired by the Minister of Gender, Children and Social Protection and the Minister of Local Government and Rural Development. The committee will comprise of relevant ministries, departments, and agencies of the government and civil society organizations. The steering committee will: (i) coordinate activities of ministries, agencies, and other stakeholders involved in project implementation; (ii) provide guidance on policy, strategy, and other implementation issues; (iii) 45 review and approve annual work plans, budgets, and quarterly and annual progress reports; and (iv) mobilize government support (further details are elaborated in the Project Implementation Manual). The NPSC shall meet quarterly within 30 days of the end of each quarter. The membership of the NPSC shall include the following institutions:  Ministry of Local Government and Rural Development  Ministry of Gender, Children and Social Protection  Ministry of Finance  Ministry of Employment and Labor Relations  Ministry of Roads and Highways  Ministry of Food and Agriculture  Ministry of Health  Ministry of Environment, Science, Technology and Innovation  Ministry of Interior  Local Government Service Secretariat  Department of Feeder Roads  Ghana Irrigation Development Authority  Department of Social Welfare  National Health Insurance Authority  Association of Road Contractors  Civil Society Organizations. 8. The National Coordinating Office shall be the secretariat to the NPSC. The Coordinator (LEAP) and Coordinator (NTU) shall be in attendance. 9. Quarterly Technical Review Meeting. A Quarterly Technical Review Meeting (QTRM) shall be held prior to the meeting of the NPSC. The QTRM shall be attended by project contract staff from the NCO and RCOs, as well as representatives of Ministries, Departments and Agencies (MDAs) with responsibilities for project components. The objective of the QTRM shall be to improve coordination at implementation level. 10. Collaborating Institutions. The project has a number of collaborating MDAs many of which have representation on the NPSC. They include the Department of Feeder Roads (DFR), Ghana Irrigation Development Authority (GIDA), Environmental Protection Agency (EPA), Koforidua Training Centre (KTC), and the National Health Insurance Authority (NHIA). All MDAs shall appoint Focal Persons who will have responsibility for GSOP issues. 11. National Coordinating Office. The National Coordinating Office (NCO), as the secretariat to the NPSC shall assist the implementing ministries to oversee and coordinate project implementation and report directly to the Chief Directors of the MLGRD & MoGCSP. The main functions of the NCO shall include: coordinating, consolidating, and reviewing the projects work plans, budgets, and procurement plans; consolidating project quarterly progress and financial 46 reports; supervising RCO and DA operations; and disbursing LIPW related funds to DAs. The NCO shall also have direct responsibility for reporting to the Bank. Component One: Social Protection Policy and Systems Strengthening 12. This component shall seek to realize the recommendations of the rationalization of SP expenditure study report. In this respect, the activities under this component shall be carried in close collaboration with the Ministry of Finance. The Ministry of Gender, Children and Social Protection will be responsible for the implementation of the recommendations of the rationalization of social protection study. The implementation of this component will be done in collaboration with other ministries, departments, and agencies engaged in other social protection interventions as identified in the study report. There will be stakeholder consultation at all levels. 13. The implementation of the Ghana National Household Registry will be done by the Coordinator of the National Targeting Unit (NTU) to be established within the Social Protection Directorate. The National Targeting Unit Coordinator will be responsible for the daily management of the unit and targeting process, including: selection of consultants and partner organizations; preparation of instruments and operations manuals; selection and training of targeting teams; and data collection, collation, processing and the development of the Ghana National Household Registry. 14. The Targeting Coordinators at the regional and district levels will be responsible for the day-to-day operations at the regional and district levels. The organogram for the NTU will be included in the PIM and specific GNHR manual. Component Two: Labor Intensive Public Works (LIPW) Implementation and Capacity Building 15. The scale-up of LIPW shall involve the deepening activities within the current 49 DAs and expanding to eleven additional DAs. Implementation shall be carried out by the DAs with support from RCOs, RCCs, and NCO. 16. National Coordinating Office. The National Coordinating Office (NCO) shall regulate the flow of grants to DAs and RCOs for the effective implementation of LIPW. The NCO shall collate data and reports from the DAs and RCOs and produce reports on LIPW and provide backstopping services to RCOs and DAs. The staff at the NCO shall include the National Coordinator, Chief Financial Controller, Capacity Building Specialist, Chief Infrastructure Engineer, Safeguards and Climate Change Specialist, and M&E and MIS specialist. 17. Regional Coordinating Councils. The Regional Coordinating Councils (RCCs) shall monitor and supervise activities of the DAs with support from the RCOs. The RCCs shall chair implementation review meetings with DAs. The RCCs shall also play a key role in monitoring of LIPW implementation activities especially with respect to ensuring deeper social accountability. 18. Regional Coordinating Offices. The Regional Coordinating Offices (RCO) shall be key actors in the timely initiation, preparation, procurement, and supervision of LIPW delivery 47 activities at the community level. The RCO shall be manned by a Regional Coordinator, Regional Infrastructure Engineer, Regional Capacity Building Specialist, and Regional Financial Management Specialist. 19. The RCO shall ensure the achievement of delivery deadlines with respect to all aspects of LIPW implementation. Key activities shall include the identification of LIPW sub-projects, verifying suitability of selected sub-projects and communities, sensitization of communities, targeting and selection of beneficiaries, startup activities for LIPW implementation including staffing of sites, institutional arrangements for implementation, processing of labor payments, actual payments, and documentation of LIPW sub-project implementation data. The RCOs shall also coordinate the Complementary Income Generation Schemes through the DAs and communities. 20. District Assemblies. The District Assemblies (DA) shall be the primary implementing agency of LIPW sub-projects on the ground. Sub-projects must be on DAs’ medium-term development plans (MTDP). Staff of DAs shall be responsible for sensitization of the communities on the implementation modalities of LIPW. The DA staff shall carry out sub- project preparation and supervision of implementation. The DA Engineer shall also coordinate and supervise safeguard administration for sub-projects. Based on the method of execution (under Forced Account or Contract) the DA’s role would vary. Under Forced Account, the DA shall carry out procurement (mainly shopping) of materials to be incorporated in the sub-project. The DA’s staff shall provide technical guidance to the community members to supervise the labor force and process payments. Under Contracts, the DA shall conduct procurement activities (NCT or shopping depending on estimated costs) to engage the contractor, who shall carry out the works using the registered beneficiaries. Key actors at implementation shall comprise DA staff, contractors, and communities. Supervision of the site work is shared, and data on work attendance form the basis for preparing payment vouchers for labor. The DAs shall report on LIPW sub-projects to the RCO/RCC. 21. LIPW implementation at the DA level shall be fully mainstreamed. Key actors include the District Chief Executive (DCE), District Coordinating Director (DCD), District Planning Officer (DPO), District Works Engineer (DWE), District Finance Officer (DFO), District Budget Officer (DBO), District Social Welfare Officer (DSWO), District Community Development Officer (DCDO), DFO, Schedule Accountant Officer, DGSOPSO, DESK, DAO or DFO, DBO, DIA, CS, and some supporting staff including Client Supervisors who are the district’s field staff. The DPO, DWE, or DBO shall be designated District GSOP Desk Officer or Focal Person. 22. Contractors. Only contractors who have been trained in labor intensive techniques shall be eligible to participate in LIPW implementation. These contractors normally maintain a very small permanent staff on their payrolls. Each contractor shall maintain on site two (2) Contractor Supervisors. 23. Communities. The communities are the recipients of the LIPW sub-project in the form of rural access roads, small earth dams or dugouts, and climate change mitigation activities. The communities must be poor in that there must not be available within easy reach of community 48 member’s alternative livelihoods such as commercial markets, small-scale mining, or manufacturing, etc. The main form of livelihood must be subsistence agriculture. 24. There must be sufficient numbers of beneficiaries (in excess of 100 persons) to undertake an LIPW sub-project. At the community level, suitable persons shall be identified to carry out key activities on site as Community Facilitators. The facilitator would usually be responsible for mobilizing beneficiaries in the mornings for work as well as act as timekeepers, focal persons, and first point of call for grievance resolution. A Community Peer Mentor shall also be identified in each community to ensure high level of Social Accountability. 25. Sub-component 2B: This component shall comprise a number of distinct activities. The passage of LIPW policy and design of the LIPW strategy, communications and advocacy, upgrade of the Koforidua Training Centre (KTC), and upgrade the skills of LIPW practitioners. The process of developing the LIPW policy shall be led by the Focal Person at the Ministry of Employment and Labor Relations (MELR) working in close collaboration with the National Capacity Building Specialist. The upgrading of skills will involve the training and re-training of LIPW practitioners. This shall be carried out by the National Capacity Building Specialist in close collaboration with the KTC. Support for KTC shall be in the area of human resource development. Component Three: LEAP Implementation and Capacity Building 26. This component will comprise of LEAP grants and capacity building for the LEAP management and delivery mechanisms. The Department of Social Welfare (DSW) under the MGCSP is responsible for the implementation of the LEAP program at the national, regional, and district level. The LEAP Management Unit (LMU) within the Headquarters of DSW is responsible for the day to day running of the program. The LMU will receive targeting information from the National Targeting Unit and also provide updates on beneficiaries to the NTU. The Regional Social Welfare Offices (RSWO) coordinates implementation in the respective districts and provides periodic monitoring of the program. The District Social Welfare Officers (DSWO) are responsible for the following implementation functions:  Coordination of selection of households for enrollment onto LEAP  Coordination of payments of LEAP grants to beneficiary households  Communication and promotion of conditions  Establish linkages of LEAP beneficiary households to other SP interventions  Provides case management and updates for LEAP beneficiary households  Coordinates the functions of the District Social Protection Committees, and provides oversight to the Community Social Protection Committees. 49 Reporting Lines 27. The District Social Welfare officers directly report through the District Coordinating Director to the Regional Social Welfare Officers of the Regional Coordinating Council. The structure of the reports covers program reports, including information on payments, case management, updates, financial, and logistics. Copies of these reports are forwarded to the LMU of the Department of Social Welfare. The LMU processes and analyses these reports and forwards them to the Chief Director of the MoGCSP for further action by the Social Protection Directorate and the Policy, Planning, Monitoring and Evaluation Directorate (PPME). These reports are further required to be validated by the National Steering Committee co-chaired by Ministers of Gender, Children and Social Protection and Local Government and Rural Development. Feedback of quarterly and annual reports is then sent to the District Social Welfare Officers through the RSWOs. Component Four: Project Management and Coordination 28. Component 4A: Ministry of Local Government and Rural Development. This component will be implemented by the National Coordinating Office (NCO), which shall comprise the national officers and supporting staff, in close collaboration with the Regional Coordinating Offices (RCO), shall provide project management, coordination, monitoring, and reporting services to the project specifically with respect to LIPW and shall include collating reports on other components into a single document for submission to the GoG and the Bank. The NCO shall monitor implementation activities, collate reports, and analyze data on implementation and compile same into progress and other reports. The NCO shall ensure the proper financial management of all project funds, open and operate designated accounts and access funds from the IDA, transfer funds to RCOs and DAs for LIPW-related activities, and generate financial reports on same. The NCO shall carry our procurement activities for goods and services and facilitate the work of service providers including Auditors. 29. Component 4B: Ministry of Gender, Children and Social Protection. This component will be implemented by the National Targeting Unit under the MoGCSP, which shall comprise staff supported under this project. The NTU shall provide project management, coordination, monitoring, and reporting services to the project specifically with respect to LEAP and the GNHR, and shall include collating reports on other components into a single document for submission to the GoG and the Bank. The NTU shall also monitor implementation activities, collate reports, and analyze data on implementation and compile same into progress and other reports. The NTU shall ensure the proper financial management of all project funds, open and operate designated accounts and access funds from the IDA, transfer funds LMU and MOFEP on LEAP and social protection strengthening activities, and generate financial reports on same. The NTU shall carry out procurement activities for goods and services and facilitate the work of service providers including Auditors. 50 Annex 6: Financial Management and Disbursement 1. The Ghana Social Opportunities Project (GSOP) is an existing project that is implemented by the Ministry of Local Government and Rural Development (MLGRD), through the National Coordinating Office (NCO). As part of the additional financing it has been agreed that some activities will be implemented by the Ministry of Gender, Children and Social Protection (MoGCSP). Given that the project’s financial management arrangements will follow the country systems, the Financial Controller (FC) of MoGCSP will have overall financial management responsibility. The responsibility of the FC is to ensure that throughout implementation there are adequate financial management systems in place at all levels of project implementation, which can report adequately on the use of project funds. The FC’s work will be complemented by the assigning of a dedicated Principal Accountant responsible for the routine day-to-day transaction processing and reporting, and interacting with other beneficiary agencies on financial matters. 2. The Financial Controller with the assistance of the Principal Accountant will have oversight responsibilities with regards to ensuring compliance with financial covenants such as submitting interim unaudited financial reports (IFRs), maintaining internal controls over project expenditure, and engaging external auditors. Under the direct supervision of the Financial Controller, the Principal Accountant will also be responsible for maintaining and operating the project’s designated account and make payments to contractors and service providers, transferring funds to the district as per the funding modalities for the LEAP and verifying and authorizing payments for all contracts and activities under this project. Table 1: Agreed Action Plan Action Date due by Responsible i. Prepare a revised project implementation Not later than six months GSOP NCO and manual after effectiveness MoGCSP ii. Agree on formats and content of IFR for Negotiations IDA project Financial Management Implementation Arrangements GSOP NCO 3. As noted, there are no proposed changes in the financial management arrangement for the GSOP components being implemented by the MLGRD. The arrangements as per the original PAD have been satisfactory and will be used to support the additional financing. 51 MoGCSP 4. In terms of financial management, the Financial Controller (FC) of MGCSP will have overall financial management responsibility. The responsibility of the FC is to ensure that throughout implementation there are adequate financial management systems in place at all levels of project implementation, which can report adequately on the use of project funds. The FC’s work will be complemented by the assigning a dedicated Principal Accountant responsible for the routine day-to-day transaction processing and reporting, and interacting with other beneficiary agencies on financial matters. 5. The Financial Controller with the assistance of a Principal Accountant will have oversight responsibilities with regards to ensuring compliance with financial covenants such as submitting interim unaudited financial reports (IFRs), maintaining internal controls over project expenditure and engaging external auditors. Under the direct supervision of the Financial Controller, the Principal Accountant will also be responsible for maintaining and operating the project’s designated account and make payments to contractors and service providers, transferring funds to district as per the funding modalities for the LEAP and verifying and authorizing payments for all contracts and activities under this project. 6. A summary of the key findings of the financial management assessment of the MoGCSP is presented as follows: Budgeting Arrangements 7. The MoGCSP, as a government agency, follows the budget preparation guidelines as per the Financial Administration Act (2003), the Financial Administration Regulation (2004), and also the annual budget guidelines issued by the Ministry of Finance. The project specific budgeting process will be documented in a revised IDA approved Project Implementation Manual (PIM). Generally, the budgeting arrangements for the project components will be derived from the IDA allocations. Individual district budgets, work plans, and procurement plans will be collated and consolidated at the headquarters and reviewed jointly by key project staff. MoGCSP HQ will co-ordinate yearly work plans and budgets and share consolidated copies to the Bank for review and approval. Specifically for the Component One (Social Protection Policy and Systems Strengthening) and Component Three (LEAP Implementation and Capacity Building) the budget will be part of the overall ministry budget as approved by the MoFEP and is thus consistent with government policy and procedures. 8. The current budgetary control processes used mostly for the government’s discretionary budget are capable of monitoring commitments and outstanding balances and this helps to reduce risk of multiple payments. The assessment indicates that budgeting processes are satisfactory and can be relied upon to reflect the various components to be implemented. Accounting Arrangements 9. The Finance and Accounts Office (FAO) of MoGCSP, has responsibility for maintaining the accounting records and books of the agency. The unit is headed by a Financial Controller who is a qualified chartered accountant with relevant years of experience, having worked at 52 different MDAs within the government service. Accounting and financial reporting for the proceeds of the credit will follow the existing GoG accounting policies and rely on the existing systems including the GoG Chart of Accounts, internal approval processes, payment vouchers, and authorization limits. Even though the ministry has been linked to the GIFMIS, the module is not being used to support donor-funded operations and currently, a combination of manual cash books and general ledger, supplemented by excel spreadsheets, are used to periodic returns. 10. In line with government policy at the decentralized levels, financial management of government funds is vested in the District Finance Officers (DFO) and as such the role of the DSW Regional Office accountants will be to coordinate the work of DFOs, ensure that they meet reporting requirements, offer technical advice, and monitor compliance. The assessment notes that at the head office, the accounting capacity is adequate and can be relied upon to satisfactorily support implementation. There are, however, systemic weakness due to lack of capacity at the sub-national level but this will be mitigated through periodic training and monitoring/supervision by the MoGCSP units at the headquarters. Internal Control and Internal Auditing 11. Consistent with the decision to adopt some aspect of the use of country systems (UCS) for implementation, the project’s internal controls will rely on the government established accounting and internal control guidelines as documented in the Financial Administration Act (2003) and the Financial Administration Regulation (2004), and informed by the Internal Audit Agency Act (2003). In addition, the expenditure initiation and related controls will follow the authorization and approval processes as pertains within the MoGCSP. The MoGCSP has a functioning internal audit unit that helps to ensure a sound control environment for transaction processing. However, our assessment indicates that the unit is grossly understaffed and may not be adequate to provide risk management functional support during implementation. The role of the internal audit will be regularly assessed during supervision missions by reviewing their reports and management responsiveness to their findings. This is to ensure that the role is not limited to transactional reviews (pre-auditing) but adds value to the overall control environment. Funds Flow Arrangements 12. The proposed financing instrument is an Investment Project Finance (IPF) estimated at US$50 million to be disbursed over a three-year period. Separate forms of funds flow and disbursement arrangements shall apply for this project based on the respective components. Disbursements under Component 1, 3, and 4B will be implemented by the MoGCSP while Components 2 and 4A will be implemented by the MLGRD through the NCO and will follow standard Bank procedures, and is not expected to change under the additional funding. MoGCSP 13. Within the MoGCSP there will be a single dedicated designated account to be operated by the Financial Controller under the supervision of the Chief Director. Funds will be transferred into the designated account to pay for eligible expenditure under Components 1, 3, and 4B. 53 14. The request for funds will be done based on the Withdrawal Application (WA) duly signed by representatives from MoFEP, CAGD, and MoGCSP, which will be supported by Statement of Expenditures (SOEs) using the transaction based modalities. Specifically for Category 2 (Component 3A) i.e. the transfer to LEAP Beneficiaries, the Statement of Expenditure (SOE) report will be an aggregated and consolidated report indicating the transfers made as per region and districts distributions. All other categories will use standard SOE templates provided as part of the disbursement letter. MLGRD-GSOP- PIU Funds Flow under Component 2 and 4A 15. Funds for implementing activities under these components will all be disbursed to a segregated designated account managed and operated by the Financial Controller of the GSOP PIU. Project activities and expenditure are mostly at the sub-project and district levels and as such the funds flow mechanism have been designed to support implementation at those levels. Although implementation is at the district levels, the designated accounts are maintained and managed at the headquarters from where further transfers are made directly to the district offices with the regional offices being notified to help in monitoring. 16. There are no proposed changes or modifications to the existing arrangements as in the original project. Funds for implementing the project will be channeled initially to the segregated designated from which subsequent transfers will then be made to the respective ‘District Accounts’ in line with their approved activities, work plans, and budgets under the various components. Initial releases to the designated accounts will be an aggregate of the various district work plans and forecast project management expenditure. The proposed funds flow arrangement can is summarized as follows:  There will be only one designated account and will be maintained by the Ministry of Local Government and Rural Development at the GSOP NCO.  Funds will be transferred directly from the Designated Account on two levels, namely to (i) the regional accounts of the RCOs (for project monitoring and capacity development activities) and secondly (ii) to the districts as block grants and imprest.  In terms of reporting, district offices will submit returns to regional offices for collation and these will then be submitted to headquarters for consolidation and reporting to the GoG and donors. Disbursement Arrangements 17. Proceeds of the facility will be used for eligible expenditures as defined in the Financing Agreement. Disbursement arrangements have been designed in consultation with the Recipient after taking into consideration the assessments of the MoGCSP’s financial management and procurement capacities, the procurement plan, and anticipated cash flow needs of the operation. 54 The proposal is to have the following disbursement categories as represented in the table below: Table 2: Allocation of Loan Proceeds Disbursement Category Amount of Amount of Credit Eligible Percentage for Credit Allocated (SDR) IDA Financing (Inclusive Allocated of Taxes) (US$) Category 1 - Goods, non- consulting services, consultants’ services, operating and training 15,800,00 10,200,000 100% costs for Components 1, 3B, and 4B. Category 2 - Goods, works, civil works, non- consulting services, consultants’ services, 24,200,000 15,700,000 100% operating costs and training for Components 2 and 4A Category 3 - Cash Transfers under 100% of amounts paid by Component 3A for LEAP 10,000,000 6,500,000 the Recipient under the Cash Transfer Total 50,000,000 32,400,000 18. Based on the assessment of financial management, the proceeds of the credit for the respective components will be disbursed to the project as follows: 19. Funds for Components 2 and 4A being implemented by MLGRD/GSOP NCO will use report-based disbursement procedures (in the form of Interim Financial Reports) with a flexible disbursement ceiling. The initial disbursement and ceiling will be based on the expenditure forecast for the first six months subject to the Bank’s approval of the estimates). Subsequent replenishments of the DA would be done quarterly based on the forecast of the net expenditure for the subsequent six months duly approved by the Bank and supported with the Annual Work Plan.  Funds under Components 1, 3, and 4B being implemented by the MGCSP will use transaction based reporting modalities in the form of Statement of Expenditure (SOE Returns). 20. Additional instructions for disbursements will be provided in a disbursement letter issued for this project. 55 Financial Reporting Arrangements 21. The Financial Controllers of the MLGRD and MoGCSP, working on behalf of their respective Chief Directors, will be required to prepare and submit separate quarterly Interim Unaudited Financial Reports (IUFRs) to account for activities funded and also request for funding under this grant. The assessment indicates that though at the headquarters there will be minimal challenges at MGCSP in financial reporting, there may be delays from the district offices in meeting deadlines for submitting returns. 22. The IFRs for the project are expected to be submitted not later than 45 days after the end of each quarter. The financial reports have been designed to provide relevant and timely information to the project management, implementing agencies, and various stakeholders monitoring the project’s performance. The formats and content of the quarterly IFRs will be provided by the Bank’s Financial Management team and agreed during negotiations. 23. In addition, under Component 3A, the MoGCSP shall prepare and submit technical audit reports on the use of the proceeds of the Cash Transfer for the first three months of the project. Thereafter, within forty-five days of the end of each six calendar months, the MoGCSP shall prepare and submit an independent verification report for the period covering the six months. The final independent verification report shall be furnished to the Bank not later than six months after the end of last withdrawal of the proceeds of the Credit allocated to the Cash Transfers. Auditing 24. In line with its mandate as per the Ghana Audit Service Act (Act 584), the Auditor General is solely responsible for the auditing of all funds under the Consolidated Fund and all public funds as received by government ministries, agencies, and departments. The capacity of the GAS is considered satisfactory. However, as is the practice, due to capacity constraints, it is also possible for the Auditor General to subcontract the audit of donor-funded project to private firms. In this regard, and consistent with the use of country FM systems, the Ghana Audit Service (GAS) may opt to undertake the audit or propose to the project to follow IDA procurement principles and recruit an external audit firm acceptable to the World Bank. There will be no specific financial audit report submission required for the LEAP component since it is part of the overall government program and as such the Bank will rely on the MDA Audit of the MoGCSP. 56 Annex 7: Procurement 1. Procurement will be carried out in accordance with World Bank’s: (i) "Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" dated January 2011; (ii) "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” dated January 2011, and the provisions stipulated in the Legal Agreement; and (iii) “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006, as revised in January 2011and the provisions stipulated in the Legal Agreement. For each contract to be financed by the Loan/Credit, the different procurement methods, or consultant selection methods, the need for pre-qualification, estimated costs, prior review and methods requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. In preparing the Procurement plan, the current prior review and methods threshold for the existing project is applicable. 2. Procurement of Works. The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all International Competitive Bidding (ICB) and National SBD under National Competitive Bidding agreed with or satisfactory to the Bank. Relevant NCB works contracts, which are deemed complex and/or have significant risk levels, will be prior- reviewed. Such contracts will be identified in the tables and also in the procurement plans. While using the NCB, the project must ensure that: (i) foreign bidders shall be allowed to participate in NCB procedures without any restrictions; (ii) bidders shall be given at least one month to submit bids from the date of the invitation to bid or the date of availability of bidding documents, whichever is later; (iii) no domestic preference shall be given for domestic bidders; and (iv) in accordance with paragraph 1.16 (e) of the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that: (a) the bidders, suppliers, contractors, and subcontractors shall permit the Association, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract, and to have said accounts and records audited by auditors appointed by the Association; and (b) the deliberate and material violation by the bidder, supplier, contractor, or subcontractor of such provision may account to an obstructive practice as defined in paragraph 1.16 (a)(v) of the Procurement Guidelines. Contracts would be procured using shopping procedures based on a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, but it will be subject to Bank’s no objection. 3. Procurement of Goods. The procurement will be done using the Bank’s SBD for all ICB and National SBD agreed with or satisfactory to the Bank. Procurement may be done under NCB and Shopping depending on the thresholds. However, relevant NCB goods contracts, which are deemed complex and/or have significant risk levels, will be prior-reviewed. Such contracts will be identified in the tables and also in the procurement plans. Again, under the NCB, the project must ensure that: (i) foreign bidders shall be allowed to participate in NCB procedures without any restrictions; (ii) bidders shall be given at least one month to submit bids from the date of the invitation to bid or the date of availability of bidding documents, whichever is later; (iii) no 57 domestic preference shall be given for domestic bidders; and (iv) in accordance with paragraph 1.14(e) of the Procurement Guidelines, each bidding document and contract financed out of the proceeds of the Financing shall provide that: (a) the bidders, suppliers, contractors, and subcontractors shall permit the Association, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract, and to have said accounts and records audited by auditors appointed by the Association; and (b) the deliberate and material violation by the bidder, supplier, contractor, or subcontractor of such provision may account to an obstructive practice as defined in paragraph 1.14(a)(v) of the Procurement Guidelines. Contracts would be procured using shopping procedures based on a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, but it will be subject to Bank’s no objection. 4. Procurement of Non-Consulting Services. Procurement of non-consulting services will follow procurement procedures similar to those stipulated for the procurement of goods, depending on their nature. 5. Selection of Consultants. Consultancy services would be provided under the project and includes the following categories: financial, technical and procurement audits, economic and technical feasibility and design studies, supervision of construction works, institutional studies, monitoring and evaluation studies, and technical assistance to the implementing ministries. In accordance with the threshold, methods of procurement will include Quality and Cost-Based Selection (QCBS); Selection Based on Consultants’ Qualifications (CQS); while selection under Quality Based (QBS); Selections under Fixed Budget (FBS) and Least Cost Selection (LCS) methods will be applied in the circumstances as respectively described under paragraphs 3.5 and 3.6 of the Consultants Guidelines. For all contracts to be awarded following QCBS, LCS, and FBS the Bank’s Standard Request for Proposals will be used. Procedures of Selection of Individual Consultants (IC) would be followed for assignments that meet the requirements of paragraph 5.1 and 5.3 of the Consultant Guidelines. LCS procedures would be used for assignments for selecting the auditors. Single-Source Selection (SSS) procedures would be followed for assignments that meet the requirements of paragraphs 3.10-3.12 of the Consultant Guidelines and will always require the Bank’s prior review regardless of the amount. 6. Assignments Estimated to cost the equivalent of US$300,000 or more would be advertised for expressions of interest (EOI) in Development Business (UNDB), in DgMarket, and in at least one newspaper of wide national circulation. In addition, EOI for specialized assignments may be advertised in an international newspaper or magazine. Foreign consultants who wish to participate in national section should not be excluded from consideration. Consultancy services estimated. 7. Capacity Building and Training Programs, Conferences, Workshops, etc. All training and workshops will be carried out on the basis of the project’s Annual Work Plans and Budget which will have been approved by the Bank on a yearly basis, and which will inter-alia, identify: (i) the envisaged training and workshops; (ii) the personnel to be trained; (iii) the institutions which will conduct the training; and (iv) duration of the proposed training. Capacity building activities implementation of labor intensive works for public sector technical staff at all levels, contractors and engineering consultants for the design, implementation and supervision of 58 civil works will mostly take place at the Ministry of Roads and Highways’ Training Center l in Koforidua (KTC). 8. Operating Costs. Project operating costs would be procured using the implementing agency’s administrative procedures, which have been reviewed and found acceptable to the Bank. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured will be presented in the revised Project Implementation Manual (PIM). B: Assessment of the Agency’s Capacity to Implement Procurement MLGRD: 9. Procurement activities will be carried out by District Assemblies (DAs), which have gained some experience in implementing the current GSOP. The current procurement arrangement and applicable procurement procedures and systems being employed by NCO- GSOP of MLGRD at both the national, regional, and district level have seen appreciable progress and must be maintained. Procurement activities under the project are managed at the national (NCO of the Ministry of Local Government and Rural Development) and at the district levels (49 districts under the supervision and monitoring of the project RCO). The procurement plans at the national level covering bigger and cross-cutting items have been and will be reviewed by the Bank, whereas the procurement plans of very small labor intensive works are being reviewed by the NCO together with the respective RCCs and the Ministry and suggested changes communicated to the relevant district assemblies to be incorporated before approval by the District Planning Coordinating Units (DPCUs) for implementation. 10. The 49 districts have the DPCU and the various procurement structures to prosecute procurement in accordance with the GPPA663 and the guidelines in the project legal document. Generally, procurement undertaken come from approved procurement plan and the implementing agency have generally adhered to the stipulate of the legal agreement regarding applicable guidelines. However, procurement records keeping and reporting need, as well as contract management need improvement, with challenges at the district level. The Procurement at the National Levels, uses the Bank Guidelines for review and approval of prior review procurement, while the post review procurement are subject to the applicable country procurement law. The MLGRD has a Tender Committee, which superintends over the procurement in the implementing agency. By the PPA Act 663, the appropriate concurrent approving authorities, depending on the threshold review and recommend appropriate concurrent approval for award by the entity. There are internal controls as well as the PP Procurement Manual that guides procurement at the entity level. The systems guiding the project procurement are further elaborated in the Project Implementation Manual. 11. Procurement Rating for MLGRD. The mission noted continuous good improvement in procurement activities under the project since the inception of the project, with problem solving approach to challenges, especially at the district levels. The mission therefore recommended that the procurement risk rating be Low while the Procurement Performance rating is Satisfactory. 59 Procurement Capacity Assessment and Review of MoGCSP– under GSOP 12. Since project inception the MoGCSP has undertaken procurement with support and advice from the NCO, albeit the total number of procurement is minute compared with that undertaken by MLGRD under GSOP. This is because of the lack of requisite capacity to undertaken the procurement activities. Given that the NCO has been advising and supporting procurement by MoGCSP, the reflection of procurement activities so far is in line with the description above. Thus the procurement undertaken by MoGCSP has been in line with the procurement systems, arrangements, and planning as indicated the legal agreement and framework of the project. Towards the implementation of the National Targeting assignment, the ministry is recruiting 11 consultants, including a procurement consultant to assist in the delivery of the component under the project; but this recruitment is at the TOR/REOI stage and has been lingering for a while – far behind schedule. Organization and Procurement Function 13. On February 10, 2014, a Procurement assessment was conducted to assess the capacity of the ministry and the organizational structure for implementing the Additional Finance to GSOP. There was an interaction with the Director of Finance and Administration and the Supplies Officer responsible for procurement to ascertain at first hand the procurement processes used in the ministry. 14. The Ministry of Gender, Children and Social Protection (MoGCSP) was established in 2013; it was a merger of the Ministry of Women and Children and the Department of Social Welfare and the Social Protection Division of the Ministry of Employment and Social Welfare, and received a mandate to ensure gender equality, promote the welfare and protection of children, and empower the vulnerable in the society. 15. Procurement functions falls under the Director of Finance & Administration (DoFA). There exists a Tender Committee headed by the Minister. The Ministry, as a government agency, is required by law to prosecute procurement in accordance with the Public Procurement Act, 2003 (Act 663). However, there is no dedicated procurement unit in existence, but there is procurement staff – Supplies Officer in place working under the DoFA, per the Ministry’s organizational structure. 16. Procurements undertaken by the Ministry are derived from their work plan and budget. Procurement plans are prepared to cover all procurement by the user departments (Gender, Children and Social Protection). The procurement plans are similar to the Bank standard format. However, the Procurement Officer has not handled any complex procurement except to do shopping for office consumables. When there is the need to undertake complex procurement, staff are solicited from other agencies to help. The procurement and supply management functions are not clearly distinguished as the Supplies Officer is the same person that takes delivery of goods to stores. There are clear technical and administrative controls for reviews, approvals, and decision making. 60 Staffing 17. Currently, procurement activities at the ministry are carried out by the Supplies/Procurement Officer. The current Officer holds a master’s degree in Supply Chain Management and a first degree in Accounting, and exhibits some knowledge and understanding of public procurement under PPA Act 663, with insufficient experience. It is noted that the Procurement Officer has not handled any complex procurement except to do shopping for office consumables. When there is the need to undertake complex procurement, staff are solicited from other agencies to help. The procurement staff has no experience and knowledge of Bank procurement procedures, guidelines, and systems, because it has not handled any Bank-financed projects. Although the ministry is an implementing agency under GSOP, the procurement activities are full handled and supported by NCO of GSOP, with little or no involvement of the Procurement Officer. However, this Procurement Officer exhibits enthusiasm for prosecuting procurement. Support and Control Systems 18. The ministry is guided by the Public Procurement Law (Act 663), in all their procurements. Internal Auditors normally ensures that all procedures are followed. On an annual basis, external auditors are posted by government to undertake financial audits and not procurement audits, although the PPA undertakes procurement assessment of all government agencies, by law. It is noted that the ministry does not have a specific Operating Manual, but as a government agency it is obliged to following the government’s various Acts, rules and regulation and associated manuals in running the agency. Experience in the Use of Bank Procurement Procedures 19. The MoGCSP is currently implementing a component of the original GSOP project, financed by the Bank; however all the procurements are executed and managed by NCO Chief Infrastructure Engineer/Procurement officer. This new Ministry’s Supplies/Procurement Officer has never managed World Bank projects and does not have the caliber of procurement personnel to undertake procurement financed by the Bank. This makes the ministry a high risk Ministry for prosecuting procurement under the project, given the US$25.8 million Additional Financing for the GSOP project, which is to be implemented by MoGCSP. Records Keeping 20. Some procurement files sampled for review revealed that not all documents on file relates to a particular contract. Record keeping is not to the standard that is required by the Bank. All documents on procurement are put in one file and therefore very difficult to follow the procurement trail that tells the full story from the beginning to the end. Training is needed in procurement data management to enable them file procurement documentation appropriately. Conclusion of the Assessment 21. The assessment concludes that:  The ministry will not be able to undertake Bank procurement unless a procurement unit is created and staffed with a Procurement Consultant who will train the Supplies/Procurement Officer and other junior staff to undertake procurement by the time his term of office expires. 61  There is the need for the Supplies/Procurement Officer to upgrade his knowledge in World Bank procurement procedures and acquire the necessary skills to help the consultant mange the project.  The Overall Risk Assessment Is Rated High. The key risk for procurement is (i) lack of adequate procurement capacity; (ii) lack of in-house knowledge, experience, and familiarity with World Bank procurement guidelines and procedures; and (iii) no dedicated unit responsible for procurement and inadequate staff to handle procurement. 22. To ensure that the level of procurement risk is brought to low, the following actions are proposed in the Table below: Table 1: Key Risks and Mitigation Actions No Key risks Mitigation Actions By whom By when i Lack of Provide focused training for existing supplies Ministry After project adequate officer at recognized procurement training effectiveness procurement institution such as GIMPA (Ghana), to capacity sharpen the skills of staff in the use of Bank procurement procedures, guidelines and rules. ii Lack of Prepare project implementation manual for Ministry Before knowledge of the general project with clear procurement Effectiveness World Bank procedures and responsibilities. procurement procedures and Dissemination of Bank Procurement World Bank payments Guidelines and Standard Documents to directors, supplies officer, and other identified staff Organize orientation/project launch workshops for consultant, directors, Supplies Officer, and all key personnel. iii No dedicated Establish a procurement unit. Ministry Before unit responsible effectiveness for procurement Hire an experienced and knowledgeable (very Ministry and inadequate good Bank and PPA procurement staff to handle proficiency) procurement consultant to procurement manage the procurement of the ministry under the project and any other procurement activities for the ministry. Procurement consultant to work with Throughout Supplies/Procurement Officer and other staff Ministry life of project that will be identified by the ministry to work in the procurement unit. /Consultant 23. Overall Procurement Risk Rating – For procurement implementation by the two implementing Agencies, the risk is rated Moderate. 62 C. Procurement Plan 24. Each DA, RCC, and the MLGRD and MoGCSP will prepare an annual work plan that contains a procurement plan. The MLGRD will consolidate the procurement plans and submit it to IDA for review. The procurement plan will be for the first 18 months of the project showing individual contract packages, and for each package its estimated cost, procurement method, and processing times for key activities until completion. Three months prior to the start of each subsequent fiscal year, the MLGRD will submit updated versions of the procurement plans for the following 18 months to IDA review. The tender committees of the procurement entities shall ensure that the procurement plans are published in the Procurement Bulletin in accordance with the Public Procurement Act. Any revisions to the formally agreed procurement plan shall require the concurrence of entity tender committee. Project implementing agencies shall apply the most competitive method of procurement that is appropriate to the circumstances of the specific procurement activity as described in the project implementation manual and in the table below. Implementing agencies may select a more competitive method for a particular procurement activity if they wish to do so. However, IDA concurrence will be required to use a less competitive method other than the one set out in the table below and in the agreed Procurement Plan. Absence of this concurrence may result in mis-procurement. 25. Training, workshops, conference attendance, and study tours will be carried out on the basis of approved annual work programs. The programs will identify the general framework of training and similar activities for the year, including the nature of training/study tours/workshops, the number of participants and cost estimates, however this should not be presented on the Procurement plan. Threshold for Procurement Methods and Prior Review All-National Prior Review Threshold Procurement Method Threshold Shortlist of Consultants Consultants ICB NCB Shopping IT Systems+ Goods + Goods + Goods + RISK RATING Works Goods Non Con. Firms Individuals Works Non Con. Works Non Con. Works Non Con. Serv Serv Serv Serv ≤$0.3 Mil  (All)     MODERATE ≥$15 Mil ≥$3 Mil ≥$3 Mil ≥$1 Mil ≥$0.3 Mil ≥$15 Mil ≥$3 Mil <$15 Mil <$3 Mil <$0.2 Mil <$0.1 Mil ≤$0.5 Mil  (Engr+  Contract Spn) 26. These thresholds are for the purposes of the initial Procurement Plan. The thresholds will be revised periodically based on reassessment of the project procurement risks during implementation. Additional Notes  Based on Specific needs and circumstances, shopping thresholds for the purchase of vehicles and fuel may be increased up to US$500,000 equivalent.  The threshold for shopping is defined under para. 3.5 of the Guidelines and should normally not exceed US$100,000 equivalent for off-the-shelf goods and commodities; and US$200,000 equivalent for simple civil works. 63  CQS Threshold: The threshold for the use of CQS is determined on a case by case basis taking into account the nature and complexity of the assignment but shall not exceed US$300,000 equivalent other than in exceptional situations in accordance with para. 3.7 of the Guidelines: Selection and Employment of Consultants.  Operating expenditures are neither subject to the Procurement and Consultant Guidelines nor prior or post reviews. Operating expenditures are normally verified by the Task Team Leader (TTL) and Financial Management Specialists.  Irrespective of the thresholds and category of risk, the selection of all consultants (firms or individuals) hired for legal work or for procurement activities are respectively cleared by the Legal Vice-Presidential Unit (LEG-VPU) of the World Bank with the relevant expertise and the designated PS/PAS or RPM as required.  Prior Review Contracts for the Hiring of Individual Consultants: Apart from legal work and procurement assignments, irrespective of the thresholds and category of risk, which shall respectively be reviewed by LEG-VPU with the relevant expertise and the designated Procurement Specialist/Procurement Accredited Specialist (PS/PAS) or Regional Procurement Manager (RPM) as required, review of the selection process for all other individual consultants (Technical Experts) shall be solely be reviewed by the TTL.  Contracts below the threshold but falling within an exception as defined in clause 5.4 of the Guidelines: Selection and Employment of Consultants are also subject to prior review or require the Bank’s prior no objection.  Special cases beyond the defined thresholds are allowed based on applicable market conditions.  Thresholds for which a shortlist may comprise only national consultants and the Borrower does not publish in UNDB online. D. Procurement Implementation Arrangements 27. The procurement implementation will be decentralized with each DA, RCC, and MLGRD responsible for its own procurement, while MoGCSP also takes responsibility of its own procurement. Different government departments will provide the required technical support to the DAs who are responsible for the implementation of works. Roles and responsibilities of such technical departments and DAs will be as stated in the original agreement and to be covered by Memorandum of Understanding (MOU). E. Role of Different Government Departments 28. Different government departments will provide the required technical support to the DAs who are responsible for the implementation of works. Departments like Feeder Roads, Ghana Irrigation Development Authority, Forestry Commission, Environmental Protection Agency etc., will provide DAs through the District Works Department (DWD). This will include support in design, estimates, and specifications before the start of the sub-project. It will also inspect the works during implementation to ensure the quality of materials and work-standard, among other factors, for their respective disciplines (e.g., feeder roads, small earth dams and dugouts and climate change activities). Roles and responsibilities of technical departments and DAs will be defined in a MOU. 64 F. Frequency of Procurement Supervision 29. In addition to the prior review supervision which will to be carried out by the Bank, the procurement capacity assessment has recommended one supervision missions each year to visit the field to carry out post-review of procurement actions and technical review. The procurement post-reviews and technical reviews should cover at least 10 percent of contracts subject to post- review, as the risk rating is Moderate. In addition, post-reviews of in-country training will be conducted from time-to-time to review the selection of institutions/facilitators/course contents of training, and justifications thereof and costs incurred. Post review consist of reviewing technical, financial and procurement reports carried out by the Borrower’s executing agencies and/or consultants selected and hired under the Bank project according to procedures acceptable to the Bank. 30. Procurement Audits. As in the original legal agreement and PAD, not later than three months after the end of each financial year, the Loan recipient will submit to the Bank a procurement audit report prepared by consultants selected in accordance with the guidelines for selection of consultants, based on TOR approved by the Bank and incorporated in the project implementation manual. The audits would: (i) verify that the procurement and contracting procedures and processes followed for the projects were in accordance with the Financing Agreement; (ii) verify technical compliance, physical completion, and price competitiveness of each contract in the selected representative sample; (iii) review and comment on contract administration and management issues as dealt with by participating agencies; (iv) review capacity of participating agencies in handling procurement efficiently; and (v) identify improvements in the procurement process in the light of any identified deficiencies. The Borrower and IDA will review all thresholds stated in this section on an annual basis. Amendments may be agreed upon based on performance and actual values of procurement implemented. 31. Fraud and Corruption. All procuring entities as well as bidders and service providers, that is, suppliers, contractors, and consultants shall observe the highest standard of ethics during the procurement and execution of contracts financed under the project in accordance with paragraphs 1.14 of the Procurement Guidelines and paragraphs 1.22 of the Consultants Guidelines. Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 shall apply to the project. 65 Annex 8: Safeguards 1. The Government of Ghana prepared an Environmental and Social Management Framework (ESMF), a Resettlement Policy Framework (RPF), and a Dam Safety Plan in compliance with Bank triggered safeguard policies: Environmental Assessment (OP/BP/GP 4.0 l), Involuntary Resettlement (OP/BP 4.12), Safety of Dam (OP/BP/GP 4.37), and Projects on International Waterways (OP/BP/GP 7.50). An exemption for the riparian notification was granted for the project on the following basis: (i) the engineering findings confirmed that the incremental water use would be insignificant; and (ii) the rehabilitation works are to be located in tributaries of an international waterway where these tributaries run exclusively in one state and the state is the lowest downstream riparian. 2. Potential impacts have been readily avoided, minimized, or mitigated through measures that included minimizing ground clearance, redesign of roads to ensure flood prevention, provision of settling basins to remove silt and debris before discharge to streams, provision of buffer zones of undisturbed vegetation between construction sites and water bodies, and re-vegetation of dam banks. 3. Consultations with key stakeholders (especially with project beneficiaries who are mostly the poor and disadvantaged) have been undertaken within representative district assemblies (Northern Region - East Gonja District, Upper East Region - Nabdam District, Central Region - Assin South District, Upper West - Jirapa District, Ashanti Region - Sekyere Kumawu District) within the proposed areas for the additional financing from February 10-12, 2014 as done prior to appraisal of the parent project. The Additional Financing will continue to finance the same projects as the parent project and as such the existing safeguard instruments (ESMF, RPF) will be adequate to mitigate the potential impacts. 4. To justify the effectiveness of the existing safeguard instruments, an environmental management progress status report has been prepared as an addendum to the ESMF to assess the effectiveness of the existing mitigation measures during appraisal of this proposed Additional Financing. The report shows an overall satisfactory performance and compliance of the existing environmental management plan. The Government of Ghana will therefore use the mitigation measures within the existing safeguard instruments (ESMF and RPF) for the continuous management of the potential impacts from the sub-project works under the Additional financing. 5. Capacity assessment for effective safeguard management implementation of the Project Implementing Unit has also been satisfactory. The Ministry of Local Government and Rural Development (MLGRD) has overall responsibility for the GSOP. The implementation of the Community-Based Rural Development Project (CBRDP) has given the MLGRD a level of capacity in safeguards as per World Bank policy requirements that has been sustained under the GSOP operation. Under the CBRDP and in collaboration with the Environmental Protection Agency (EPA) of Ghana, the MLGRD developed a manual to train selected District Assembly (DA) officials while processing the environmental impact assessment for sub-projects at the community level. This combination of an agency well-versed in national and World Bank safeguard policies and requirements (i.e., EPA-Ghana) and ministries with on-the-ground experience in projects similar to the SOP has fostered a solid working relationship since project 66 inception. Additionally, the ESMF and RPF identified capacity-building activities for the various key stakeholders to ensure understanding of safeguards and application of implementation and monitoring measures to achieve sustainability and to avoid or reduce negative impacts. Since the inception of the parent project in 2010, various trainings sessions have been offered to key stakeholders to help with the implementation of the ESMP. At the DA level, Ghana Irrigation Development Authority GIDA key staff and DA works department’s engineers have been trained under an ILO/GSOP Technical Assistance. Site supervisors of contractors have also been trained on safeguard issues. The GSOP regional engineers have also been trained to offer backup support. Currently, it is a pre-contractual requirement for contractors to receive training and certification in safeguard awareness training through the ILO/GSOP before LIPW renovation works contracts are awarded. 6. The GSOP therefore has a complete and robust validated safeguards management system including an Environmental and Social Management Framework, an Involuntary Resettlement Framework, and a Dam Safety Plan to mitigate all potential environmental impacts associated with the geographical up scaling of its works under the proposed Additional Financing. 7. The GSOP additional financing therefore will continue to apply the amended, approved, and disclosed safeguards framework in the implementation of sub-projects. Further details of the implementation arrangements are provided in the Project Implementation Manual. 67 Annex 9: Social Accountability and Governance of LEAP and LIPW A. Introduction 1. Given the governance risks and institutional challenges identified during project design, the Government of Ghana has taken a bold action by initiating several Social Accountability programs to address the potential governance and accountability challenges. The World Bank has discussed and agreed with the project team on a plan to improve upon the exiting initiatives and tailor them more concretely to the multiplicity of challenges threatening the social opportunities program. 2. The Social Accountability (SA) activity will build on existing knowledge and experiences within the Ministry of Local Government and Rural Development (MLGRD) and ongoing SA initiatives under Ghana Social Opportunities Project (GSOP) to address the entire accountability chain, ranging from capacity building to citizen participation and closing the feedback loop. The key objectives are to: (i) strengthen the capacity, responsibility, and accountability of local government agencies in monitoring various aspects of the project activities; (ii) improve community and beneficiary responsibility, by creating platforms to allow their systematic engagement in the project activities; and (iii) promote greater transparency around implementation and outcomes of project. These would be achieved through the deployment of a comprehensive SA program that combines supply-side and demand-side interventions, developed through consultation with the major stakeholders, including local government agencies. The core element of the Bank’s engagement would be institutional monitoring and accountability of local government agencies through the implementation of social accountability mechanisms such as grievance redress mechanism, community forums, transparency and accountability boards, and accountability hotlines. 3. Four key activities would be implemented. First, a technical review of the existing and proposed SA approaches would be carried by the project team, with the World Bank support, to identify gaps and update the existing SA manual. Second, to ensure effective coordination and monitoring of the SA program, a third party institution, preferably civil society organization (CSO) would be procured. In each region, a credible CSO network would be assigned and given well-defined roles and responsibilities, relating to coordination, capacity support, supervision, and reporting on the entire SA activities in each project community. Third, there would be a systematic deployment of appropriate SA instruments at each project community in line with the objectives of the SA program. Fourth, a capacity building program will be implemented to strengthen the technical competency of local government agencies and community facilitator CSOs for improved coordination and oversight of the entire social accountability process. 68 B. Background 4. Improving governance and greater government accountability are key priorities of the Government of Ghana. The existence of a strong multi-party political system, growing media pluralism,5 strong civil society activism, and an elaborate decentralization system contribute to Ghana’s improved performance on a range of democratic governance indexes. On the World Bank’s Worldwide Governance scorecard, Ghana falls between the 50th and 75th percentile on political stability, government effectiveness, regulatory quality, rule of law, control of corruption, and voice and accountability. 5. Despite this impressive governance outlook, Ghana faces enormous challenges for public services delivery, particularly at district and community levels. The potential challenges include entrenched political patronage and limited capacity, which limit substantive engagement between government actors and communities, as well as between civil societies and their grass-root constituencies even where participatory processes exist. 6. The implementation arrangements of LEAP and LIPWs would benefit from Social Accountability (SA) approaches to promote strong beneficiary and community participation in the implementation process to ensure fairness, and enhance accountability and transparency around the processes. While several SA programs were introduced in LIPWs, their implementation was affected by a range of factors, including: limited capacity and knowledge of SA approaches; ineffective coordination by local government agencies; and inadequate resources to support systematic application and monitoring of the SA programs in all project communities. C. Objectives of the SA Program 7. The SA activity will build on existing knowledge and experiences within the MLGRD and ongoing SA initiatives under the project, to address the entire accountability chain, ranging from capacity building to citizen participation and closing the feedback loop. The key objectives are to: (i) strengthen the capacity, responsibility, and accountability of local government agencies in monitoring various aspects of the project activities; (ii) improve community and beneficiary responsibility, by creating platforms to allow their systematic engagement in the project activities; and (iii) promote greater transparency around implementation and outcomes of project. These would be achieved through the deployment of a comprehensive SA program that combines supply-side and demand-side interventions, developed through consultation with the major stakeholders, including local government agencies. The core element of the Bank’s engagement would be institutional monitoring and accountability of local government agencies through the implementation of SA mechanisms such as grievance redress mechanism, community forums, transparency and accountability boards, and accountability hotlines. A. Key Activities and Focus Areas 8. Improving the monitoring capacity of local government institutions through application of sound social accountability instruments. This activity will use opportunities that already exist in the project through the elaborate local government structure and ongoing 5 Ghana ranks 30th out of 179 countries on press freedom according to the Reporters Without Borders’ 2013 Press Freedom Index report 69 social accountability (SA) initiatives. A technical review of the existing SA approaches would be carried by the project team, with Bank support, to identify gaps and inform a revised SA manual. As part of this activity, a capacity building program will be implemented to strengthen the technical competency of local government agencies, using training of trainers approach, and involving Regional Coordinating Officers, (RCOs), District Assemblies (DAs), Community Facilitators (CFs), and CSOs. The objectives of the capacity building programs will be to develop knowledge around SA processes and roles for effectives monitoring, coordination and oversight of the entire social accountability process at the community level. 9. Application of appropriate SA instruments to improve monitoring and accountability around the implementation of LEAP and LIPWs. These two components of the project have different target beneficiaries, objectives, and governance challenges. While a common SA manual as part of the project implementation manual will apply to both components, there would be a deployment of different SA approaches for each component at the project community (for details see table 9.1 the below). The SA process will combine both supply-side and demand-side interventions, developed through consultation with the major stakeholders, including local government agencies. The objectives are to empower beneficiaries and communities through SA platforms and instruments to influence the effectiveness of LEAP and LIPWs at the community level. Thus emphasis will be placed on increasing beneficiary and community responsibility to take the appropriate actions to ensure effective implementation of the projects at the community level. The proposed key SA instruments include, grievance redress mechanism, community forums, transparency and accountability boards, and accountability hotlines. 10. Promoting third-party monitoring for effective coordination and monitoring of the SA accountability process. To ensure effective coordination and monitoring of the SA program, a third party institution would be retained, preferably procured CSOs. An in-region, credible CSO network would be assigned and given well-defined roles and responsibilities, relating to coordination, capacity support, supervision, and reporting on the SA activities in each project community. There is value in CSOs participation in SA programs, in terms of their reach to communities through networks, relatively strong capacity to mobilize communities, and knowledge of social accountability processes. B. Social Accountability Diagnosis and Proposed Instruments Table 9.1: Social Accountability Diagnosis and Proposed Instruments Livelihood Empowerment Against Poverty Program (LEAP) Potential Governance and Accountability Current/Proposed Social Accountability Arrangements Challenges 1. Exclusion of potential beneficiaries  Community forum for community sensitization by 2. Payments to ineligible beneficiaries Regional Coordinating Officers (RCOs) to encourage intentionally or due to administrative beneficiary compliance with cash transfer conditions errors and poor verification  Spot checks by RCOs on payments to beneficiaries 3. Poor administration of benefits,  Grievance redress mechanism (GRM) to give voice to resulting in beneficiaries; UNICEF is developing GRM that can be - Unnecessary payment delays tailored to GSOP 70 -Unauthorized deductions from beneficiaries’ payments -Demand for favors from beneficiaries -Intimidation, including threat of termination of benefits 4. Non-compliance with cash transfers conditions by beneficiaries Labor Intensive Public Works (LIPWs) 1. Potential abuse of program due to  Community forum for improved sensitization by oversubscription – excess demand over Regional Coordinating Officers (RCOs) to ensure supply of temporary jobs - which could clarity on project implementation processes and result in underpayment, favoritism, compliance with the rules of engagement exclusions, and shoddy work  Grievance redress mechanism to give voice to 2. Potential disputes over selection and beneficiaries location of projects  Transparency and Accountability Boards to promote 3. Limited community interest and transparency and accountability around utilization of participation in the project processes funds, compliance with contract agreements, and servicing as a critical source of information on the number of community labor force employed and amount of money paid to the laborers at each community level  Provision of hotlines at the RCO and NCO levels  Use of Community Peer Mentors as agents of accountability who will facilitate the SA process at the sub-project level  Social Audit by RPCUs C. Social Accountability Results Chain Results Chain Objectives a. Strengthen the capacity, clarify the responsibility and accountability of local government agencies in monitoring various aspects of the project activities b. Improve community and beneficiary responsibility through social accountability (SA) platforms to allow their systematic engagement in the project activities c. Promote greater transparency around implementation and outcomes of project Outcomes Expected Expected Outputs Activities 1. Improved local  Social accountability manual  Review of existing SA tools government monitoring of  Capacity building action plan and manual project activities at the based the SA manual  Capacity building workshops community level  SA monitoring and  Participatory development SA coordination plan monitoring and coordination plan 2. Enhanced community and  Appropriate SA tools  Community sensitization on beneficiary engagement deployed at the community SA approaches, including their and participation in project level responsibilities implementation processes  Periodic assessment of the  Implementation of SA tools effectiveness and relevance and platforms SA tools 71  Level of citizens participation 3. Improved transparency  Periodic monitoring report,  Implementation of SA tools and accountability on showing performance of SA and platforms project inputs and outputs, indicators including outcomes at the  Information on level of community level regularity benefits to target beneficiaries 72 Annex 10: Development Communications for LEAP and LIPW 1. Based on a communications assessment conducted under the GSOP in January 2014, it was observed that even though some aspects of the project, particularly the LEAP/NTS component, were supported by good communications output, in general, a great deal remains to be done to ensure that the project as a whole benefits from a comprehensive, holistic, and effective communications strategy. While project results need to be showcased more vigorously, the importance of communications as a tool for engendering behavioral change, participation, and accountability cannot be overemphasized. In this connection, a Communications Action Plan and Budget, jointly prepared by the communications teams of the Ministry of Gender, Children and Social Protection and the World Bank, under the supervision of the Capacity Building and Communications Coordinator of the project, would be rolled out under the Additional Financing. 2. A number of communications deliverables focusing on both internal and external communications have been outlined in the Action Plan to help make up for the past communications gap, while at the same time take care of future communications needs. The aim is to ensure that all stakeholders, both internal and external, are fully informed, consulted, and engaged during project implementation and beyond. 3. The need to build in-house communications capacity within the Project Management Team is critical for the successful implementation of the Action Plan. It is recommended that a three-member communications team be established. This will consist of the National Capacity Building and Communications Coordinator (as Head), a Communications Officer, who would have responsibility for the overall implementation of the Action Plan, and a Communications Analyst, whose main duty would be to establish and manage a proposed Social Protection Resource Center. The team will work very closely with the M&E, IT, social development, and fiduciary colleagues to ensure they are well in sync with relevant aspects of the project. 73 Communication Action Plan for LIPW (2014-2015) A Internal Stakeholders A1 Communication Target Objective Responsibility Time Frame (2014-2015) Frequenc Budget Product Audience/Focus Qt1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 y A2 Staff Technical Review All GSOP NCO To monitor project NCO Once in Meetings Technical Staff performance and each Qtr streamline processes A3 National Project Steering MDAs represented To share information NCO Once in Committee Meetings on NPSC on progress and seek each Qtr guidance approval and approval on critical policy issues A4 Joint Meeting between Staff of all 3 Share information, NCO Once in LEAP, GNHR, NCO & Implementation monitor progress on each Qtr Staff Units each of the components & ease co-ordination A5 Briefing of MLGRD Ministers, Unit Update ministry on NCO Half Year Management on GSOP Heads and Heads of project performance Activities LGSS & ILGS A6 Quarterly Reports All implementing To provide update on NCO Once in units and WB project activities and each Qtr performance B External Stakeholders B1 Communication Target Objective Responsibility Time Frame (2014-2015) Frequenc Budget Product Audience/Focus Qt1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 y B2 Community Sensitization Beneficiary Groups To provide clarity on DAs led by All Year and Communities the project’s processes RCOs Round and emerging innovations like e- payment, etc. B3 Regional Level LIPW Beneficiary DAs, To share information RCOs and All Year Review Meetings RCCs, Media and across DAs and allow RCCs Round CSOs for cross-pollination of ideas. B4 Sensitization Retreats for Members of the To obtain the MP’s MLGRD, Once in Parliamentarians Select Comm. On buy-in for LIPW Policy MoGCSP, 2014 Social Welfare & and impending AF MELR & NCO 74 Employment B5 Labeling of LIPW Sites Beneficiary To ensure project DAs & RCOs All Year Communities and visibility and share key Round Reg. level project information Stakeholders with public B6 Provision of Sub-Project Beneficiary Groups To allow for the sharing Community All Year Transparency & & Community level of critical project Facilitators, Round Accountability Boards Stakeholders information such as DAs and RCOs dates of payment and public display of wage payment records B7 National Level Policy Makers, DPs Showcase project Once in a Stakeholder Round-Table and other MDAs achievements and Year Discussion solicit additional support for LIPW B8 Engagement with NDPC Chairman and Share project results MLGRD, NCO Once in Commissioners & and advocate for the 2014 Tech Staff of NDPC mainstreaming of LIPW into Nations dev’t planning processes B9 Production and Airing of National TV Showcase project NCO All Year Project Documentary Audience achievements and Round lessons B1 Media Outreaches Media Outlets with Provide opportunity to RCOs & NCO 0 wide circulation the media to obtain first Once in hand information on the each year project for publication B1 Field Trips for key Ministers of To expose the ministers NCO Once in 1 government Officials MLGRD, MoF & to achievements in the each year MoGCSP field B1 Project Websites & Use Stakeholders on the Improve project NCO and All Year 2 of other Social Media E-Media Platform visibility and show case Project Web Round results Manager B1 Radio and TV Radio and TV Improve project RCOs & NCOs 2 Qtrs in 3 Discussions Audience visibility and show case each year results 75 Draft Communication Action Plan for LEAP (2014-2015) INTERNAL STAKEHOLDERS A1 Communication Target Objective Responsibility Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Once in Budget Channel/Product Audience/Focus each Qtr A2 General Review All members of To monitor project Social Meetings LMU/DSW LEAP performance and Protection Staff, Ministry & streamline processes Directorate & Social Protection LMU Directorate A3 Managerial Committee LMU & Social To share information Ministry, Once in Meetings Protection on progress and Social each Qtr Directorate challenges and seek Protection guidance and approval Directorate & on critical policy LMU issues A4 Joint Meeting between Staff of all 3 Learn & share good NCO, (GSOP) Once in LEAP, NTU, NCO & Implementation practices, monitor & Social each Qtr Staff Units progress on each of Protection the components & Directorate of ease co-ordination MoGCSP A5 Briefing of MoGCSP Ministers, Update ministry on Social Twice a Management on LEAP Directorates, Unit project performance Protection Year Activities Heads and Heads of Directorate of Departments MoGCSP A6 Quarterly Reports All implementing To provide update of Social Once in units and WB project Activities and Protection each Qtr Performance Directorate & LMU A7 Training/ Capacity Social Protection Strengthen and Social Twice a Building Committees, CLICS improve performance Protection Year for overall project Directorate & objectives LMU 76 A8 Training/ Capacity Communication Strengthen and Comm. Unit Twice a Building Unit & LMU improve Year communication performance for overall project objectives B EXTERNAL STAKEHOLDERS B1 Communication Target Objective Responsibility Time Frame (2014-2015) Frequenc Budget Channel/ Product Audience/Focus Qt Q2 Q3 Q4 Q5 Q6 Q7 Q8 y 1 B2 Community Education & Beneficiary Groups To provide clarity on LMU thro’ All Year Sensitization and Communities the objective and LEAP Round processes of the project Committees 7 and emerging CLICS innovations like e- payment etc. B3 Focus Group Discussion Beneficiary Groups To solicit views of LMU thro’ All Year beneficiaries on the LEAP Round programs Committees B4 Regional Level LEAP Beneficiary DAs, To learn & share LMU thro’ All Year Review Meetings RCCs, Media and information and good LEAP Round CSOs practices on the project Committees 7 across DAs CLICS B5 Sensitization Retreats for Members of the To sensitize the MP’s MLGRD, Once in Parliamentarians Select Comm. On on LEAP, MoGCSP, 2014 Social Welfare & implementation & MELR & NCO Employment achievements to increase support base for the program B6 Pasting of LEAP Posters Beneficiary To ensure project LEAP C’mtte & Communities and visibility and share key CLICS All Year Reg. level project information Round Stakeholders with public B7 National level Policymakers, Showcase project Once in a Stakeholder Round- Ministry of Finance, achievements and Year Table discussion DPs and other solicit additional MDAs support for LEAP 77 B7 Engagement with NDPC Chairman and Share project results MOGCSP, Once in a Commissioners & Year Tech Staff of NDPC B8 Production and Airing of National TV Showcase project Communication All Year Project Documentary Audience achievements and Specialist Round lessons B9 Media Outreach Media Outlets with Provide information on Communication wide circulation the program for media Specialist & All Year practioners for LMU round effective media advocacy. B1 Field Trips for Key Ministers of To expose the ministers LMU Once in 0 Government Officials MLGRD, MoF & to achievements in the each year MoGCSP field B1 Project Websites & Use All Stakeholders & Improve project Com Specialist All Year 1 of Other Social Media DPs visibility and show & Web Support Round case results Staff B1 Radio and TV Radio and TV Improve project Com Specialist All Year 2 Discussions Audience visibility and show & Selected Round case results LEAP Staff B1 Dissemination of IE&C All Stakeholders Improve project Com Specialist, All Year 3 Materials visibility, share LMU thro’ Round information and show LEAP C’mttes case results 78 Annex 11: Additional Financing Implementation and Rollout 2015 2016 2017 Tasks Activity 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Technical Assistance, Stakeholder Consultations for National Social Protection Policy Formulation COMPONENT 1A: NATIONAL SOCIAL PROTECTION POLICY Implementation of Recommendation on Social Protection Policy FORMULATION Training and Study Tour Component Management Meetings Training of new staff of GNHR Setting up of 3 Regional Offices: Procurement of Goods, Office Tools, Equipment and Utencils Hiring of a Firm for adapting space at 3 regional offices Procurement of 4X4 DOUBLE CABIN PICK UPs for mobilization of HQ field staff Procurement of motorcycles for mobilization of field staff (3 Regional Offices) COMPONENT 1B: SOCIAL Procurement of Servers for the Data Center: Rack and Dell/HP: With PROTECTION SYSTEMS 4 Blades & Storage - Blade 1: Application Server, Blade 2: Web STRENGTHENING Access, Domain Controller, Antivirus server, Blade 3:Mail server, Blade 4: Redundancy, Storage: For Application Data. Procurement of Emergency Power System Hiring of a Firm for the Development of the HQ LAN Network: LAN implementation with CAT6 & fiber, Cisco Gigabyte Switch with Fiber port, Cisco Routers Procurement of Softwares Procurement of Hardware Hiring of Firms for the Development of LAN Network For NTS 3 Regional : LAN implementation with CAT6 & fiber / Cisco Gigabyte Consensus Building and Engagements Meetings with Regional and Districts Authorities (2 Regions - 29 Districts) Hiring of individual consultant for the identification of technological innovations feasible to implement in the medium term, to capture real- time information on the field and identification of people. (use of mobile devices: tablets, phones, etc.. use GPS, use of fingerprints, etc.) Hiring of a firm for the design and development of the software to capture real-time information on the field and identification of people. Procurement of Devices for the Implementation of the model to capture real-time information on the field and identification of people. GNHR IMPLEMENTATION All cost staff training on the use of the device and software: enumerators, supervisors and coordinators Hiring of a firm for the design and devolpment of the Public Information Campaign Strategy Hiring of a multiple firms for the Implementation of the PIC in Nationwide Interviewer Supervisor Targeting Center Coordinator Targeting Centers Support Staff Mobile Targeting Center Stationery Hiring of Firms for the Spot Check & Process Evaluation on Targeting Implementation in 2 Regions 79 2015 2016 2017 Tasks Activity 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 18 No.Feeder Rds @ 86km 48 dams/dugouts 129 climate change activities @ 643 Ha COMPONENT 2A: LIPW 18 No.Feeder Rds @ 86km 48 dams/dugouts 129 climate change activities @ 643 Ha Support towards LIPW Policy and Accompanying LI Support towards dev't of KTC HR Capaity as LIPW Training Centre Continues Capacity Building/Training for IPW Practitioners COMPONENT 2B: LIPW CAPACITY Regular Hand-holding Capacity Building Suppor by RCOs to DAs BUILDING Improving Project Communication Deepening Social Accountability in LIPW delivery LIPW Impact Evaluation - 2nd Wave Facilitation of migration of Enrollment and Payment to E-Platforms Component 3A: LEAP Grants LEAP Grants Hiring of staff for LEAP at HQ Office Hiring of staff for LEAP at 10 Regional Offices Training of new staff of LEAP Setting up of LEAP HQ and 10 Regional Offices: Procurement of Goods, Office Tools, Equipment and Utencils Hiring of a Firm for adapting space at the LEAP HQ and 3 regional offices Procurement of 4X4 DOUBLE CABIN PICK UPs for mobilization of HQ field staff Procurement of motorcycles for mobilization of field staff (3 Regional Offices) Hiring of a Firm for the Adaptation of the area where the Data Center will installed COMPONENT 3B: LEAP Procurement of Servers for the Data Center: Rack and Dell/HP: With STRENGTHENING 4 Blades & Storage - Blade 1: Application Server, Blade 2: Web Access, Domain Controller, Antivirus server, Blade 3:Mail server, Blade 4: Redundancy, Storage: For Application Data. Emergency Power System Hiring of a Firm for the Development of the HQ LAN Network: LAN implementation with CAT6 & fiber, Cisco Gigabyte Switch with Fiber port, Cisco Routers Procurement of Softwares Procurement of Hardware Hiring of Firms for the Development of LAN Network For LEAP 3 Regions : LAN implementation with CAT6 & fiber / Cisco Gigabyte Switch with Fiber port / Cisco Routers Training and capacity building for MoGCSP and Programs Staff Payment of fees to commercial banks for the concept of electronic transfers Monitoring and Verification Visits(Social,Tehnical and Spot COMPONENT 4A: PROJECT Surveys) MANAGEMENT AND Project Supervision and Technical Support to Districts COORDINATION FOR MLGRD Contractual Services Other Operations 80 Staffing for Ghana's National Household Registry Unit at HQ Office COMPONENT 4B: PROJECT and Regional Offices MANAGEMENT AND COORDINATION FOR MoGCSP Other Operations/Supervision