The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) @#&OPS~Doctype~OPS^blank@pidconcoverpage#doctemplate Project Information Document (PID) Concept Stage | Date Prepared/Updated: 14-Feb-2024 | Report No: PID264 Mar 11, 2024 Page 1 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) @#&OPS~Doctype~OPS^dynamics@pidbasicinformation#doctemplate BASIC INFORMATION A. Basic Project Data Project Beneficiary(ies) Operation ID Operation Name Nigeria P181248 Solutions for the Internally Displaced and Host Communities Project Region Estimated Appraisal Date Estimated Approval Date Practice Area (Lead) WESTERN AND CENTRAL 11-Feb-2025 08-Apr-2025 Urban, Resilience and Land AFRICA Financing Instrument Borrower(s) Implementing Agency Investment Project The Federal Ministry of National Commission for Financing (IPF) Budget and Economic Refugee Migrants, and Planning Internally Displaced Persons, North East Development Commission Proposed Development Objective(s) The Project Development Objective is to improve access to resilient and inclusive basic services and economic opportunities for internally displaced persons (IDPs) and host communities in displacement affected LGAs of Northern Nigeria. @#&OPS~Doctype~OPS^dynamics@pidprojectfinancing#doctemplate PROJECT FINANCING DATA (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? No Is this project Private Capital Enabling (PCE)? No SUMMARY Total Operation Cost 500.00 Total Financing 500.00 of which IBRD/IDA 500.00 Financing Gap 0.00 DETAILS World Bank Group Financing Mar 11, 2024 Page 2 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) International Development Association (IDA) 500.00 IDA Credit 500.00 @#&OPS~Doctype~OPS^dynamics@envsocriskclassification#doctemplate Environmental and Social Risk Classification Concept Review Decision Substantial The review did authorize the preparation to continue B. Introduction and Context Country Context 1. Nigeria, Africa's most populous country, possesses substantial untapped economic potential. As a diverse federation of 36 autonomous states and the continent's largest country with a population exceeding 218 million, it boasts the largest economy in Africa, reaching a gross domestic product (GDP) of approximately US$472 billion in 2022. Fueled by abundant resources, a youthful and entrepreneurial populace, and a vibrant private sector, Nigeria has the capacity to become a prominent player on the global stage. However, despite these prospects, the country faces significant challenges, including stagnant economic growth.1 Weakening overall growth performance has made it significantly harder to reduce poverty: Between 2015 and 2020, the number of poor Nigerians rose from 68 million to over 82 million in 2020, and currently, over 40 percent of Nigeria’s population live in poverty.2 Moreover, Nigeria houses the world's second-largest population of people living in extreme poverty and ranks 163 out of 191 countries on the most recent Human Development Index (HDI) report,3 highlighting its status as one of the least developed nations globally. Thus, Nigeria is central to the World Bank Group (WBG)’s mission of eliminating poverty globally. 2. Recognizing the need to change course, a new administration since May 2023 has undertaken bold reforms to restore the economic fundamentals for inclusive growth. The Nigerian government officially removed an increasingly costly, opaque, and regressive gasoline subsidy that amounted 2.2 percent of GDP in 2022, while adopting major exchange rate policy reforms, addressing the previous overvaluation of the official exchange rate.4 The new exchange rate policy regime centers around a unified rate with transparent, market-reflective pricing, and is expected to contribute to macroeconomic stability and support renewed prospects for inclusive, sustainable growth. 1 Between 2001 and 2014, Nigeria was a rising economy in West Africa, with an average growth rate of 7 percent per year. This ended in 2015 due to: (i) a decline in oil prices; (ii) increased insecurity; (iii) a reversal of macroeconomic reforms and heightened unpredictability of economic policies; and—more recently—(iv) the adverse effects of the COVID-19 pandemic. 2 “World Bank. 2022. A Better Future for All Nigerians: Nigeria Poverty Assessment 2022. Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/37295 License: CC BY 3.0 IGO.� 3 UNDP (United Nations Development Programme). 2022. Human Development Report 2021/2022: Uncertain Times, Unsettled Lives; Shaping our Future in a Transformative World. New York. 4 In recent years, the Central Bank of Nigeria (CBN) maintained more than ten foreign exchange (FX) windows, with different price discovery mechanisms, and heavily managed the official Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX). This severely limited FX supply at the official rate, pushed economic agents into a parallel market to meet their FX requirements, and generated arbitrage and rent-seeking opportunities. In June 2023, the CBN unified the multiple exchange rates by collapsing the Foreign Exchange (FX) windows into the Investors and Exporters (IEFX) window and announced that market-reflective pricing based on genuine willing- buyer willing-seller transactions would be restored. Almost immediately, this caused the official and parallel market rates to converge, and the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate adjusted up from 472NGN/USD to 768 NGN/USD (as of July 20, 2023), a depreciation of 39 percent. Mar 11, 2024 Page 3 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) 3. While economic reforms are promising, conflict is a severe constraint on poverty reduction in Nigeria. Alongside increasing climate shocks, conflict events have proliferated, displacing populations, disrupting markets, and interrupting Nigerians’ livelihoods. Fatal conflict events have become more widespread across Nigeria in the past two decades, especially in the country’s north. This corresponds to the onset of the Boko Haram insurgency in 2009 in the North-East (NE) region, the rise of criminal gangs and banditry in the North-West (NW) region, and banditry, farmer-herder conflicts, inter-communal wars and boundary disputes in the North-Central (NC) region. Nigeria is considered an FCV country and has one of the largest and fast-growing populations of internally displaced persons (IDPs) in the world, as a result of conflict and natural events. In Northern Nigeria alone, conflict and violence have led to the displacement of over 3.5 million people. Sectoral and Institutional Context 4. Across Northern Nigeria, insecurity has fueled large waves of internal displacement. Patterns are nonlinear, complex, and vary within the NE, NW, and NC regions. Timelines of displacement and profiles of displaced persons also vary across regions. Over 65% of IDPs in Northern Nigeria are in the NE region (approximately 2.3 million IDPs as of June 2023)5 and 95% of them are in Borno, Adamawa and Yobe (the “BAY states�). Borno, which has been the epicenter of fighting involving Boko Haram since 2014, hosts the highest number of IDPs of any state in the North, with nearly 1.7 million IDPs, representing over a quarter of the state’s total population and almost half of total IDPs in the North. The NW and NC regions have recorded spiraling forced displacement with the number of IDPs almost doubling from approximately 575,000 to nearly 1.2 million in 2020-2022. 5. States and local government areas (LGAs) in the North, while dealing with the immediate crisis effects of displacement, suffer from five major development challenges; the first is spatial. Northern states have seen a significant spatial redistribution of population, with a substantial inflow of IDPs into state capitals, such as Maiduguri (Borno), Yola (Adamawa) and Makurdi (Benue), and other towns (centers of other LGAs within the state). An analysis on Maiduguri revealed that the inflows of IDPs to the metropolitan region have contributed to horizontal sprawl and vertical urban growth while the closure of camps and the return process have contributed to further changing the built-up area. In Yola, the inflow of IDPs has led to sprawling expansion of the metropolitan region, with IDPs situated in towns and remote areas west, south, and north of the capital and across the Benue River to neighboring towns in Girei LGA. A large concentration of IDPs is in Benue’s capital, Makurdi, and in surrounding smaller urban towns, though IDPs are also located in rural settlements in neighboring LGAs and around major corridors in eastern and southern parts of the state. 6. The second development challenge is physical - the inflow of IDPs has put additional pressure on already strained and obsolete infrastructure and services in host communities. In Maiduguri, IDP inflows have put serious pressure on water supply and sanitation infrastructure and services already under strain before 2014. Public water supply is less than 50 percent of current demand as the state’s Ministry of Water Resources struggles to meet previous demand. Sanitation (liquid and waste) management presents a much bigger challenge than water management in Maiduguri, exacerbated by increased waste generation with rapid population growth. Due to the inflow of IDPs, daily solid waste generation increased from an estimated 390 tons to 570 tons per day.6 Solid waste management in Maiduguri is not sufficient, with over 60 percent of residents lacking access. Furthermore, a sewerage system is mostly non-existent and there is no evidence of availability of wastewater treatment plants within the metropolitan area. Wastewater from homes is discharged into open spaces, and the few drains that exist are either dilapidated or clogged with improperly disposed solid waste and sand, which make the drains incapable of transferring wastewater, rain and storm water during 5 IOM Mobility Atlas (North-east Round 45, August 2023) and IOM Displacement Index (North-central & North-west Round 11, March 2023) 6 UNDP. 2016. North-east Nigeria Waste and Debris Assessment. Mar 11, 2024 Page 4 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) rainfall events leading to flooding. An assessment of services within Borno LGAs in 2022,7 after a significant proportion of IDPs started relocating to LGAs outside of Maiduguri, revealed that household access to services is generally poor. Across LGAs in Borno, boreholes/handpumps and unprotected dug wells are the dominant sources of water, and in some LGAs, residents must travel 15 to over 30 minutes to access water. On average, less than 60% of residents in Borno LGAs have access to a pit latrine. In Adamawa, most surveyed IDPs reported having to travel more than 10 minutes to access water, with handpumps as the main source of drinking water. In two Adamawa LGAs hosting IDPs, surveyed IDPs reported not having any toilet facilities leading to widespread open defecation. With respect to waste management, most surveyed IDPs in Adamawa reported having limited or no garbage disposal system and thus rely on burning garbage as the main disposal method. 7. Unplanned development has increased vulnerability to disasters in host communities lacking climate-resilient infrastructure and housing. Forced urbanization due to displacement has increased the vulnerability of IDPs and host communities to disasters, especially flooding and extreme heat, threats exacerbated by climate change. Self-made makeshift shelters constructed near rivers and host communities lacking sufficient drainage and waste management systems are highly exposed to flood risks. Analyses of Maiduguri and Yola indicate significant proportions of infrastructure, built up areas and population are exposed to river and rainwater flooding. IDPs are susceptible to repeated displacement due to their location in flood zones. Rising temperatures from climate change also increases vulnerability in urban host communities due to urban heat island effects, IDPs are highly exposed due to poor living conditions. Some host communities will also have to grapple with climate-induced in and out migration. A recent World Bank study8 shows that several NW states (Kano, Katsina, Jigawa, Sokoto and Kebbi) are expected to be in-migration hotspots while Borno (NE) is anticipated to be an out-migration hotspot. 8. The third development challenge relates to institutions - state and local governments have weak institutional capacity to cope with the rapidly changing IDP situation in host communities. This is a preexisting challenge, but it is exacerbated by the influx of IDPs and concentration in a limited number of LGAs within displacement-affected states. There are overlapping, conflicting and duplication of functions between the state and local government institutions9 in the provision of essential services, which hampers effective planning and delivery of services in host communities experiencing rapid population and spatial growth with the inflow of IDPs. In most state capitals, plans are outdated and no longer relevant, while low technical capacity of staff hinders plan implementation.10 In Nigeria, local governments do not have staffing and financial autonomy, making human capacity and resources for the delivery of essential services weak. State and local governments further struggle to govern effectively, with the additional role they have had to play from a security perspective, in defense of conflicts and now with the return process. 9. The fourth development challenge relates to economic impacts of displacement on IDPs and host communities. Rapid and large-scale inflow of IDPs have prompted stress on already-strained local economies. Overall, livelihood opportunities are limited in the predominately rural and conflict-affected Northern regions, especially for IDPs. Limited accessibility of land, security risks, and increasing extreme weather events have constrained livelihood opportunities, impacting the availability of agricultural yields and heightening food insecurity, which has made millions of individuals, especially children, suffer from malnutrition and related health complications. In Maiduguri, low agricultural production 7 International Organization on Migration (IOM). 2022. Multi-Service Needs Assessment (MSNA). 8 World Bank Group. 2021. Groundswell Africa: A deep dive into internal climate migration in Nigeria. 9 For instance, the Borno State Urban Planning and Development Board is responsible for the initiation and actualization of physical development programs in Maiduguri, but multiple agencies carry out similar functions in the city. 10 For instance, the Maiduguri development plan (1977-1987) has not been reviewed after its expiration and the law governing the Borno State Urban Planning and Development Board has not been fully implemented. Across host communities, local governments face significant gaps in financial resources and management, which also has negative impacts on the provision of services. Mar 11, 2024 Page 5 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) coupled with rising food prices and weak purchasing power have affected the capacity for food purchase by residents.11 Recent analysis suggests that the presence of IDPs in Nigeria is associated with a decrease in aggregate wealth and an increase in inequality within host communities. These effects are accompanied by an increased risk of conflict onset in the short and long run. An improvement in IDPs’ living conditions is accompanied by a decrease in violence and improved relations between hosts and IDPs.12 10. The fifth development challenge relates to significant social impacts caused by forced displacement. First, displacement has disrupted family units and community cohesion, as individuals have often been separated from loved ones, and women and children have often been separated from their husbands and boys. Second, it has led to loss of access to education for displaced children, making the number of unskilled youths grow. This is further limiting access to already scarce employment opportunities, potentially exacerbating the cycle of poverty and violence due to frustration and lack of recognition as adults. Third, displacement has increased the vulnerability of affected populations to human rights abuses, including gender-based violence (GBV). Displaced women and girls are at high risk for experiencing GBV, with little resources and services to support them. Fourth, forced displacement has placed pressure on host communities, potentially leading to resource conflicts and increased tensions between displaced persons and residents.13 Fifth, the psychological trauma associated with displacement can have long-term mental health consequences for individuals, affecting their ability to reintegrate into society and rebuild their lives. Lastly, the lack of representation and voice of IDPs with local institutions can further jeopardize trust due to lack of social accountability. These impacts collectively undermine the social fabric and stability of the region, presenting significant challenges for humanitarian assistance and development efforts. However, global evidence suggests that multi-sectoral development investments directed to IDPs, and host communities can mitigate the negative effects of displacement, generate positive externalities for host communities, and promote social cohesion.14 11. Protracted displacement is a fundamental development challenge, requiring a development approach to solutions. There is a need to shift from addressing internal displacement as a humanitarian crisis to addressing protracted displacement with long-term inclusive solutions addressing the five challenges discussed above. The Federal Government of Nigeria (FGN) recognizes internal displacement as a major development challenge and the importance of inclusion in sustainable solutions. In 2021, the FGN adopted the National Policy on Internally Displaced Persons (National Policy, “NP� herein), which states 15 the obligations and responsibilities of the government to protect, promote and fulfill the rights of IDPs, returnees and host communities. The NP serves as the official plan to guide all government levels, international partners and other stakeholders in their efforts to provide solutions for IDPs and for ending forced displacement. In 2022, National Commission for Refugees, Migrants, and Internally Displaced Persons (NCFRMI) was established with the mandate to implement the National Policy through the coordination of national-level actions and facilitation of sustainable solutions for the protection and assistance of all displaced people. While the NP and the NCFRMI represent a significant step forward, gaps need to be addressed in terms of institutional, technical, and financial capacity to effectively implement the policy and provide sustainable solutions for IDPs and host communities. Constraints include specialized institutional, financial, and planning capacity at the state and local levels, leadership and coordination across stakeholders,16 gaps on displacement data and financial support to investments needed for IDP hosting areas and communities. 11 Save the Children. 2017. Displaced and Host Community Livelihoods and Food Security in Borno State, Nigeria. Available at https://goo.gl/gtLXGX. 12 Ludolph, Lars; Šedová, Barbora; Talevi, Marta. 2022. Inequality and Security in the Aftermath of Internal Population Displacement Shocks: Evidence from Nigeria. Policy Research Working Papers; 10053 13 Socially, increased pressure on basic services and resources (such as land and jobs) and xenophobia against “outsiders� has created tensions between IDPs and host communities. For example, in Maiduguri, about 15,000 surrendered Boko Haram fighters have been moved to the city, which has created tensions in host communities as residents have not been accepting of Boko Haram converts as their neighbors, thus amplifying local hostilities. (Source: Maiduguri Analytics) 14 World Bank. 2022. Social Cohesion and Forced Displacement: A Synthesis of New Research. © Washington, DC: World Bank. 15 The FGN previously signed and ratified the African Union Convention for the Protection and Assistance of Internally Displaced Persons in Africa (i.e., the Kampala Convention, or the Convention) in 2012. 16 Stakeholders encompass donor partners, UN agencies, civil society organizations and displacement-affected communities. Mar 11, 2024 Page 6 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) 12. The proposed project will utilize a three-pronged approach to develop sustainable solutions for IDPs and host communities in Northern Nigeria. First, the proposed project aims to provide tailored solutions for each of the targeted states and communities, recognizing that each internal displacement situation is specific and localized, with conflict, violence and/or climate challenges presenting a different level and set of vulnerabilities for host communities. Gender, age, and special needs of individuals also play a role, as well as the length of displacement, number of times displaced and other factors.17 Thus, responses will be adapted to address the specific needs of vulnerable populations within displacement-affected states and communities. Second, the proposed project will follow a “People-in-Place� approach, integrating the needs of the people and the impacts on the place where they settle. Project activities will aim to improve provision of infrastructure and basic services as well as livelihood opportunities in an integrated way, moving beyond capital investments to supporting operational improvements and sectoral reforms, and fostering income-generating opportunities within host communities. Citizen engagement will be key throughout the project to ensure that interventions address the needs of IDPs and host communities specific to the local context. Third, for successful solutions for long-term displacement, the States need to adopt a “whole-of-government� approach in which all parts of government actively contribute to solutions, and local authorities are strongly supported. 18 The proposed project will finance activities designed to support institutional strengthening to enable concerned MDAs to fulfill their mandate and contribute to long-term inclusive solutions for the IDPs and host communities. C. Relationship to CPF Relationship to CPF 13. The proposed project aligns with the WBG’s Country Partnership Framework (CPF) for Nigeria, as well as the 2021-2025 Climate Change Action Plan (CCAP) and the 2021-2025 FCV Strategy. It aligns with CPF Core Objective 11,19 which aims at reducing fragility in the NE and other conflict-affected areas in Nigeria and the Bank’s 2021-2025 Climate Change Action Plan which supports cities to build resilience and lower greenhouse gas emissions. The project also aligns with the FCV Strategy in addressing forced displacement by focusing on the medium- to long-term development challenges arising from forced displacement, including specific vulnerabilities of internally displaced persons, supporting sustainable economic and social development in host communities, and working with governments to strengthen relevant institutions and policies related to forced displacement. The strategy emphasizes the importance of mitigating the shocks caused by refugee inflows, creating social and economic development opportunities for refugee and host communities, and facilitating sustainable solutions to protracted refugee situations, including the socio-economic inclusion of refugees in the host country or their return to the country of origin. 14. The proposed project also aligns with government strategies at the national level, particularly the National Policy for Internally Displaced Persons, the 2050 Long Term Vision for Nigeria (LTV-50), Nigeria’s Nationally Determined Contributions (NDCs), and state governmental development initiatives. The proposed project aligns with the National Policy and the supporting National Action Plan,20 as well as national development and climate resilience 17 Other factors include social networks in displacement locations, ethnic backgrounds, places of origin, trigger of displacement (conflict, disaster, etc.), previous occupation (agricultural backgrounds versus service or business), current type of accommodation within the host city, camp versus non-camp settlement, current type and size of host city, etc. These factors will generate variations among the displaced population and their respective needs. 18 United Nations, Shining a Light on Internal Displacement: A Vision for the Future, Report of the United Nations Secretary-General's High-Level Panel on Internal Displacement, September 2021, p. 13. 19 The proposed project also aligns with Objective 10 which aims at enhancing climate resilience in Northern Nigeria and two CPF Complementary Priorities, namely #3: Promote youth employment and skills, and # 6: Modernizing Agriculture 20 The National Action Plan was developed by the National Commission for Refugees, Migrants, and Internally Displaced which is the responsible agency for the operationalization of sustainable solution strategies and interventions in the return, reintegration, and resettlement of IDPs within the Federal Ministry of Humanitarian Affairs and Poverty Alleviation (FMHAPA). Mar 11, 2024 Page 7 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) strategies, including Nigeria’s NDC targets21 and LTV-50. The proposed project will also be aligned with existing state- level development plans. 15. The proposed project further strengthens the World Bank’s long-term commitment to support the poorest and FCV-affected areas of Nigeria, with an emphasis on sustainable development, leveraging recent and on-going programs in Northern Nigeria. The proposed project aligns with and has benefitted from the recent Enhancing Development Effectiveness in Northern Nigeria (EDENN) Programmatic ASA (P178600) and builds on the work completed under the Multi-Sectoral Crisis Recovery Project (MCRP) for North-Eastern Nigeria (P157891). The project will also leverage on-going World Bank projects that provide support to improvements in basic services, climate resilient interventions, and livelihood opportunities in selected Northern states.22 Furthermore, the proposed operation will complement other World Bank operations in the space of social protection and human development.23 The proposed project will contribute to similar social, economic and climate resilience objectives, with a focus on IDPs and displacement-affected communities. C. Proposed Development Objective(s) The Project Development Objective is to improve access to resilient and inclusive basic services and economic opportunities for internally displaced persons (IDPs) and host communities in displacement affected LGAs of Northern Nigeria. Key Results (From PCN) - Direct beneficiaries with improved access to basic services (disaggregated by sex) (Number) - Number of communities benefited from constructed or rehabilitated to socio climate-resilient infrastructure and services. - Beneficiaries surveyed reporting project investments reflected their needs (disaggregated by sex) (Percentage). - Beneficiaries reporting that project investments have positively contributed to increased trust among community members (Percentage). - Number of new job opportunities created as a result of project activities (disaggregated by sex and youth) (Number). - Percentage of sub-projects that have adopted climate-resilient approaches D. Concept Description 21 Nigeria updated its NDC targets in 2021, recommitting to its unconditional contribution of 20% below business-as-usual (BAU) and increasing its conditional contribution to 47% below BAU by 2030 as well as extending targets to the water and waste sector. The proposed project can contribute in the areas of water (i.e., improved water security for households and measures against flooding), waste (i.e., improved waste management systems and recycling/composting) and urban development (i.e., promote resilient development through controlled planning and more robust services) and agriculture (i.e., promote climate smart and resilient agriculture and land use), 22 This includes the Agro-Climatic Resilience in Semi-Arid Landscapes program (ACReSAL, P175237), the Livestock Productivity and Resilience Project (LPRES, P160865), Nigeria for Women Project and its Scale Up (NFWP-SU, P179447), the Adolescent Girls Initiative for Learning and Empowerment Program (AGILE-AF, P170664), and the Nigeria for Women Program (P161364) and its Scale-Up Project (P179447). The project will also benefit from lessons learnt from Better Education Service Delivery for ALL - Additional Financing (BESDA-AF, P160430) and Innovation Development and Effectiveness in Acquisition of Skills (IDEAS, P16629). 23 Complementary projects include but are not limited to the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES, P174037) Program-for-Results and the Nigeria Improved Child Survival Program for Human Capital Multi-Phased Approach (P167156). Mar 11, 2024 Page 8 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) 16. The project will promote social inclusion of IDPs by empowering IDP and host communities, improving resilience, making institutions accessible and accountable to citizens, and increasing social cohesion. It will contribute to the Government of Nigeria’s implementation of the National Policy on Internally Displaced Persons to realize the country’s national responsibility to prevent and protect citizens and, in some cases, non-citizens, from incidences of arbitrary and other forms of internal displacement, meet their assistance and protection needs during displacement, and ensure their rehabilitation, return, reintegration and relocation after displacement. The project will provide support to displacement-affected LGAs and communities through technical assistance and financial investments in 1) resilient infrastructure and services; and 2) community development, income-generating opportunities, and social cohesion. 17. Lessons from MCRP will inform the design and implementation approach of SOLID. First, while MCRP financed the rehabilitation of infrastructure in different geographic locations in the BAY states, SOLID will finance more concentrated investments using the “People-in-Place� approach to maximize the development impact of investments. Hence, integrated infrastructure solutions will be provided for selected LGAs, and communities as discussed below. Second, considering the challenges MCRP faced concerning the participation of various MDAs in implementation, SOLID, by following the idea that addressing the needs of IDPs and host communities requires a “Whole Government� approach, will put in place measures to be agreed with the counterparts to guarantee effective engagement of concerned MDAs and provide more clarity on the operations and maintenance (O&M) responsibilities and sustainability of investments. Third, SOLID will promote the participation of local communities including IDPs in sub-projects from planning through implementation. Communities will also be equipped to participate in the O&M of completed community infrastructure. Finally, at the community level, SOLID will focus more on simple investments rather than large and complex ones given the context and existing low capacity. However, SOLID will continue to finance high impact investments but will learn from MCRP on the best approaches to implement such large projects. Investment Targeting 18. The project’s targeting strategy will be anchored around a combination of needs assessments (for IDPs and other vulnerable groups, and host community members), state and local community development plans, and tailored interventions to strengthen service delivery, inclusiveness, and climate resilience. Considering the uniqueness of each internal displacement situation, the diversity of IDP profiles (including gender, age and special needs of individuals), and the changing landscape of states with the continuing inflow of IDPs to a small number of LGAs within each state, interventions will be operationalized using four guiding principles: 1) adapting interventions to shifting needs over time; 2) adapting interventions to different types of host communities; 3) adapting interventions to different types of displaced people; and 4) assigning interventions to different stakeholders, as IDPs should be the responsibility of all parts of government. 19. Target States. The Project will adopt a multi-phased approach, with the first phase focusing on four to six states to be selected before project negotiation based on defined criteria. This first phase will last for five years. All Northern Nigerian states that have displacement identified as one of the key challenges to their development agenda are eligible to participate in the Project. To participate, states must demonstrate commitment to the key strategies highlighted in the National Policy, including a commitment to removing barriers to the inclusion of IDPs in host communities and providing support to IDPs, returnees as well as host community members. Accordingly, to qualify for the support under the project, states need to fulfil two preconditions that illustrate the commitments to the National Policy as discussed above: Mar 11, 2024 Page 9 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) i. Have an approved state action plan – acceptable to the Bank – that clearly demonstrates the key principles of the National Policy, with a clear commitment to the rights and responsibilities of both IDPs and host communities as described in the National Policy. State governments need to demonstrate that their plans are inclusive, with IDPs and returnees being granted the same rights as host community members or that they are on the way of becoming full members of the community. The state action plan should include a set of key performance indicators to monitor the level of implementation over the plan period. ii. Establish a state institutional coordination mechanism in the form of a committee or taskforce inclusive of state ministries, departments, and agencies (MDAs), representatives of host communities and IDPs (both men and women), traditional leaders, and private sector representatives, with the purpose of engaging and bringing together key stakeholders for the development of sustainable solutions for IDPs and host communities. The mechanism of state selection will be further detailed during project preparation. Additional criteria will be added which may include counterpart readiness (i.e., funding and commitment to project security) and implementation readiness (i.e., institutional capacity and readiness of investment projects). Funds will be allocated to the selected states based on a formula to be developed during project preparation and in consultation with counterparts. 20. Target Communities. The project will mainly address displacement at the local level and will focus on selected displacement affected LGAs within Northern Nigerian states. Within selected LGAs, the project will target host communities, at the neighborhood (ward) level, that have experienced protracted displacement (where people have been internally displaced for at least three years by a single event), will be designated to receive project support. Within selected host communities, support will be extended to both IDP and native community members, with a special attention paid to women, youth, and people with special needs, as part of the project’s support for local economic stabilization. Target communities at the ward level will be the focus of analysis once LGAs are selected. The target LGAs will be selected on criteria to be developed during preparation, but will consider the following: i. LGAs with the largest total numbers of IDPs ii. LGAs with the largest ratio of IDPs to the existing population iii. LGAs with the largest number of long-term displaced persons (more than three years) 21. Target beneficiaries. Targeting of beneficiaries will be inclusive of IDPs and host community members, and the most vulnerable and hard to reach groups amongst them. A strong focus on youth and women will be maintained throughout the project. Components 22. The project is structured around four components. The funding allocations per component are indicative and the final allocations will be agreed during project preparation. In general, the prioritization of investments will be based on criteria to be established during project preparation, including, but not limited to, packaging of works, investment readiness, implementation timeline, and impacts on the most vulnerable groups. Component 1: Investing in Resilient Infrastructure and Services for IDPs and Host Communities (US$350 million) Mar 11, 2024 Page 10 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) 23. This component will finance infrastructure and service delivery investments at the LGA and ward levels to improve livability and increase social, economic and climate resilience for IDPs and host communities in selected LGAs. The component will also support state and local government institutions through technical assistance and capacity building activities to transition to an integrated development approach in tackling the impacts of displacement through long term multisectoral planning solutions. Subcomponent 1.1: Strategic investments for climate resilient economic development (US$320 million) 24. This subcomponent will finance larger scale infrastructure investments in selected LGAs to improve local economic development and increase climate resilience in displacement-affected areas. Investments will be selected from a menu to be developed in consultation with key stakeholders in selected states and communities. Potential investments will be identified during the integrated development planning process in subcomponent 1.2 and linked to national and state climate agendas and development plans. To inform the selection of investments, state and local governments will follow a rapid diagnostics process to map and assess existing conditions and identify potential climate resilient investments. States that requested to benefit from SOLID support have already started preparing their lists. Examples of potential investments include: (i) development of central markets, roads and land redevelopment to increase the amenities and economic opportunities in central areas and along major corridors; (ii) Improved public services like rehabilitation and expansion of stormwater drainage systems to increase capacity of the drainage network while encouraging water retention, thereby mitigating flooding and reducing erosion; (iii) development of parks and greenspace and the protection of flood plains and riparian areas to reduce urban heat; and (iv) transformative investments that link urban centers and hinterlands (i.e., improve local connectivity between markets and agricultural production sites), support local value chains (e.g., commercial and industrial spaces such as marketplaces and cattle markets), and provide trade and transport related services (e.g., bus stations). This subcomponent will also attempt to fill gaps in key infrastructure services in selected wards to complement the LGA-level work. This will cover rehabilitation and construction of water, sanitation and hygiene facilities, local roads, public spaces, and health and educational facilities. The subproject will also finance waste management services at the ward level. Investments will be selected based on quick needs assessment for wards with concentrations of IDPs. Subcomponent 1.2: Strengthening State and Local Government Institutions for Improved Service Delivery (US$ 30 million) 25. The subcomponent aims to strengthen the capacity of state and local government institutions to tackle displacement impacts through long-term multisectoral planning solutions. The subcomponent will finance technical capacity building activities for state MDAs to effectively plan for local development, implement national policies, deliver and maintain services, and improve oversight of local governments. State-level activities may include development of IT systems, training in fiduciary (financial management and procurement) programming, capacity building for property tax/ fiscal cadaster for state capitals, support to community organizations and O&M committees, and support for intergovernmental coordination to improve access to national government programming and financing. The subcomponent will also finance technical assistance to improve the provision of public services like municipal solid waste management and public facility management. It will finance technical assistance to support selected states in modernizing their planning system, fulfilling the federal mandated planning regulations, preparing their integrated development plans and conforming planning practices and institutional set up to national planning laws and regulations (i.e., establish a state Planning Board and provide support in drafting the Planning Board’s mandate and operation guidelines). This subcomponent will also finance technical capacity building activities for local government officials to fulfill key aspects of their mandated role to deliver services and Mar 11, 2024 Page 11 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) to develop integrated (multi-sectoral) and climate-resilient development plans for selected displacement-affected communities (at the LGA level), in coordination with the community development plans that will be produced as part of subcomponent 2.1. Subcomponent activities will enable various state government MDAs and local governments to fulfill their part in the Whole-of-Government endeavor. Component 2: Community Development, Income Generating Opportunities, and Social Cohesion (US$120 million) 26. This Component finances the development of small community facilities, technical assistance, capacity building activities that aim at promoting inclusive community development planning, enhancing access to sustainable and inclusive income-generating opportunities, and strengthening social cohesion between IDPs and host community members. Subcomponent 2.1: Investments in Community Development to Strengthen Resilience and Inclusion (US$40 million) 27. This subcomponent will finance the development of integrated community development plans (CDPs) in selected communities. This includes facilitation of participatory planning processes, training for communities and state and local governments on participatory decision-making, and support for sub-project (community-based infrastructure and community agriculture-related infrastructure and services) identification, prioritization, and selection for financing under subcomponent 1.1. The subcomponent will also finance the development of community-based facilities to provide opportunities for communal ‘bonding’ and strengthen social cohesion and inclusion within host communities. Investments will include community gathering spaces, sports facilities, and centers for women and youth in addition to tools, equipment and training to enhance communities’ climate resilience. The subcomponent will also support capacity building activities for operation and maintenance of community-based infrastructure and subsequent monitoring and evaluation of sub-project implementation. 28. The subcomponent will also finance technical assistance to establish platforms for dialogue to help mediate conflicts and foster mutual understanding between IDPs, local institutions, and host communities. It will also finance technical capacity building activities for communities to support monitoring and accountability of local institutions regarding IDP inclusion and the government commitment to promote transparency and trust. This subcomponent will also finance technical assistance, training, and programs for economic and social resilience including financial literacy, entrepreneurship, and business proposal development, marketing and accounting for IDPs and host community members receiving livelihoods support in Subcomponent 2.2 continuing to maintain a focus on women and youth. Subcomponent 2.2: Investments in Value Chain Development, Markets, and Innovation for Sustainable Livelihoods (US $80M million) 29. This subcomponent will finance investments in productive value chains, including agriculture (crops and livestock), pastoralism (livestock), agropastoralism (crop and livestock) and fisheries, and will support commercializing livelihood activities for improved income generation, employment, and self-reliance among IDPs and host community members. The subcomponent will finance the following activities: (a) cash-for-work programs through participation in construction of community-based infrastructure that enhances agricultural and livestock productivity; (b) provision of agriculture production equipment and advisory extension services, such as farming and small processing productive assets, starter packs with climate-resilient seeds, climate information for cropping Mar 11, 2024 Page 12 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) calendar advisories, and remote sensing surveillance for crop and livestock performance monitoring to increase resilience and adaptive capacity; (c) screening, acquisition, and demonstration of scalable innovation technologies with potential for rapid enhancement in productivity and in total production; and (d) community agriculture- related infrastructure and services, including rehabilitation and investment in fences, markets, storage facilities (including aggregation centers, production pens and houses for livestock), and rural road networks – selected through CDPs. 30. The subcomponent may also finance identified damaged irrigation schemes, canals, and ponds to enable farmers to have a reliable supply of irrigation water for crops, livestock, and fisheries. This subcomponent may also finance innovation grants (either cash or in-kind) for individuals or groups, including cooperatives, targeting women and youth groups as well as small entrepreneurs and family-owned businesses. Component 3: Project Management and Support for the Implementation of the National Policy (US$ 30 million) 31. This component will support the implementation of all activities in accordance with the World Bank’s policies and guidelines. This will include the following: (a) project management, including technical planning, financial management (FM), procurement, social and environment risk management, security analyses and response plans, and communications; (b) project monitoring which includes a geo-enabled monitoring system (GEMS) and beneficiary feedback/grievance redress mechanism (GRM); (c) impact evaluation; (d) continuous conflict analyses; (e) just-in-time studies as and when needs arise; (f) financing for third-party monitoring as required by the security conditions; and (g) PIU operating costs. 32. The component will also finance activities that support the FGN’s efforts to operationalize the National Policy on IDPs, through strengthening institutional capacity for the coordination of national-level actions and facilitation of sustainable solutions for IDPs and host communities, in line with the National Policy and state action plans. This subcomponent will strengthen the idea of Whole-of-Government engagement in providing solutions for displacement, providing support for overall programmatic and policy coordination between federal, state, and local governments, and will include the provision of Technical Assistance (TA) to address gaps in implementing and monitoring commitments set forth in the policy. The TA would address data gaps on all IDPs, including women, persons with disabilities and other vulnerable groups. Component 4: Contingency Emergency Response Component (CERC) (US$0) 33. A contingency emergency response component (CERC), initially without a budget allocation, will allow for the rapid reallocation of project funds in the event of natural or man-made crises and major disease outbreaks of public health importance during the implementation of the Project, in accordance with the World Bank Investment Project Financing (IPF) Policy, paragraphs 12 (Projects in Situations of Urgent Need of Assistance or Capacity Constraints). Activation of the CERC is triggered by (a) a declaration of a state of emergency by the Government and (b) Government request to the World Bank for activation of the CERC. Implementation modality and eligible activities to be financed under the CERC will be described in the Project Implementation Manual (PIM). @#&OPS~Doctype~OPS^dynamics@legalpolicyandscreeningrisk#doctemplate Mar 11, 2024 Page 13 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 TBD Projects in Disputed Area OP 7.60 TBD Summary of Screening of Environmental and Social Risks and Impacts @#&OPS~Doctype~OPS^dynamics@contactpoint#doctemplate CONTACT POINT World Bank Fuad Malkawi Senior Urban Specialist Serena Cavicchi Senior Social Development Specialist Borrower/Client/Recipient The Federal Ministry of Budget and Economic Planning George N. Stanley, Director, International Economic Relations , nyekenso@gmail.com Implementing Agencies National Commission for Refugee Migrants, and Internally Displaced Persons Tijani Aliyu Ahmed, Honorable Commissioner, aa.tijjani@ncfrmi.gov.ng North East Development Commission Mohammed Danjuma, Project Coordinator, mdanjuma@nedc.gov.ng FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects @#&OPS~Doctype~OPS^dynamics@approval#doctemplate APPROVAL Mar 11, 2024 Page 14 of 15 The World Bank Solutions for the Internally Displaced and Host Communities Project(P181248) Task Team Leader(s): Fuad Malkawi, Serena Cavicchi Approved By Practice Manager/Manager: Country Director: Shubham Chaudhuri 11-Mar-2024 Mar 11, 2024 Page 15 of 15