CRISIS RESILENT SOCIAL PROTECTION- ADDITIONAL FINANCING (CRISP- P181588) ADDENDUM TO ENVIORNMENTAL AND SOCIAL SYSTEMS ASSESMENT Due to the success of the CRISP program and the improved delivery capabilities of the Benazir Income Support Program (BISP), the government has requested further investments in and utilization of the adaptive system through an Additional Financing (AF) of US$400 million. Additional financing is the appropriate instrument given that the government has proposed important system improvements which continue the reforms contemplated under the original CRISP project. The boundaries of the broader Government’s program and the program supported through CRISP will be retained with no additional funding to the Investment Project Financing (IPF) Technical Assistance component. Considering that the proposed AF would be directly tied to the existing activities with no changes in the scope and boundary of the program, an addendum has been prepared for assessing the impacts of the new DLRs. This Additional Financing will contribute to Result Areas 1 & 3 of the parent project. Disbursement Linked Indicators (DLI) proposed under the AF will cover some longer-term policy actions regarding the BISP programs and the National Socio-Economic Registry (NSER) while identifying and correcting coverage gaps. Under Result Area 1, the proposed results support; (a) adoption of recertification protocols to ensure predictability in program exit and entry for BISP programs during future recertifications; (b) institutionalization of an indexation mechanism for the base cash transfer program (Kafaalat) benefits to prevent erosion in purchasing power and to protect against the impacts of impending economic reforms; (c) inclusion of all eligible beneficiaries under the current eligibility criteria by identifying and correcting gaps in NSER that have led to any unintended exclusion through the expansion of mobile MELA touchpoints; (d) adoption of NSER as the agreed targeting mechanism nation- wide and development of a technology-supported mechanism to facilitate its use by other programs; (e) measures to correct the current overlap of federal and provincial Conditional Cash Transfer (CCT) programs and to prevent future overlap, including gradual takeover by the provinces of Punjab and Sindh of the federal nutrition-focused CCT. Post the 18th Amendment to Pakistan’s Constitution, Social protection as a subject was devolved to the provinces. Currently the federal government has a considerable investment in social assistance which also overlaps with some of the conditional cash transfer programs being run by provinces. There is a need to support the provincial governments to take decisions to realign their respective responsibilities. ASSESMENT METHODOLOGY The assessment was conducted by the Bank team, based on a review of available data and an analysis of BISP’s performance on environmental and social risk management—particularly how it is incorporating recommendations from the initial Environmental and Social Systems Assessment (ESSA), and how it is adhering to the Environmental and Social Commitment Plan for the TA/IPF component of the parent program. FINDINGS The parent program is performing ‘Satisfactorily’ on environmental and social aspects and is adequately staffed. BISP has made commendable efforts in social mobilization and outreach to vulnerable groups (including indigenous people), streamlining various components of the Grievance Redressal Mechanism (GRM), and developing a gender action plan. There has also been progress on managing the environmental footprint of electronic waste (e-waste) generated by the program, including developing Standard Operating Procedures for the handling of waste, and initiating training programs for staff. The impacts of the proposed additional DLIs were assessed against the ESSA Core Principles of 1) Informed Environmental and Social Management; 2) Minimizing Adverse Impacts on Natural Habitats; 3) Protecting Public and Worker Safety; 4) Managing Land Acquisition; 5) Equitable Access to Program Benefits for Indigenous and Vulnerable Groups; and 6) Avoiding Social Conflict. Proposed DLI Environmental Assessment Social Assessment The Benefit Adjustment Committee Negligible impact Negligible impact adopts a CPI-based indexation mechanism that sets the floor of annual increases to Kafaalat cash transfer benefits. The first three annual adjustments Negligible impact Negligible impact using the new CPI-based indexation formula as a minimum increase to the Kafaalat program amount are implemented The Benefit Adjustment committee increases the Kafaalat cash amount (on top of CPI-based increase) to bring the Negligible impact Negligible impact average eligible families benefit to 15% of the targeted families’ average consumption Districts where recertification is Negligible impact Citizens may be unaware of initiated per the BISP Board-approved recertification protocols, leading to an and revised recertification Protocols increase in grievances related to exiting from program benefits Union Councils where at least one Negligible impact Citizens may be unaware of exclusive mobile MELA touchpoint is touchpoints, and new program staff functional, starting from priority may not be adequately trained districts with lowest coverage. Develop and operationalize a cloud- Technology upgrades should be in Negligible impact based data-sharing service that accordance with E-waste SOPs facilitates software and infrastructure support to programs Programs external to BISP utilizing the Negligible impact Potential for data misuse in the complete cloud-based data-sharing absence of national data protection service developed under DLI#18 laws and systems BISP Board regulations are revised to Negligible impact Negligible impact include one senior representative nominated by each of the provincial governments as member of the BISP Board Eligible but un-enrolled Kafaalat Negligible impact Citizens may be unaware of changes in beneficiaries identified in the NSER, are eligibility criteria and program benefits enrolled in the program, and have received at least one quarterly payment Federal and Provincial cabinets approve Negligible impact Greater federal-provincial and cash-based SP frameworks that: restrict institutional coordination would be new federal CCTs in provinces; adopt required NSER as the base for household- targeting; clarify roles and mandates Federal & Provincial Cabinets of Punjab Negligible impact Greater interprovincial and institutional & Sindh have endorsed phased, time- coordination would be required bound and costed action plans to progressively shift responsibility of H&N CCTs to the Punjab and Sindh SP Authorities The action plan(s) under DLI#23 have Negligible impact Need to strengthen coordination and been implemented in a total of four collaboration mechanisms on risk districts between Sindh and/or Punjab, management where the provision of H&N CCT has been fully transferred as provincial responsibility This Additional Financing supports activities that are within the scope of the parent project. The parent project’s Environmental and Social Systems Assessment (ESSA) is going to remain valid, and its recommendations continue to be extremely relevant.1 However, the Additional Financing could be used towards further augmenting the concerned BISP departments; towards the following recommendations that were outlined in the ESSA: 1) Strengthening institutional arrangements; 2) Implementing multimodal communications campaigns; and 3) GRM Improvement 1 The ESSA of the parent project can be accessed here: https://documents1.worldbank.org/curated/en/462271607441221346/Draft-Environmental-and-Social-Systems- Assessment-ESSA-Pakistan-Crisis-Resilient-Social-Protection-CRISP-P174484.docx