The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) REPORT NO. RES40479 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE EMERGENCY SAFETY NETS PROJECT (JIGISÉMÉJIRI) APPROVED ON APRIL 30, 2013 TO THE REPUBLIC OF MALI June 26, 2023 SOCIAL PROTECTION & JOBS GLOBAL PRACTICE WESTERN AND CENTRAL AFRICA REGION Regional Vice President: Ousmane Diagana Country Director: Clara de Sousa Regional Director: Dena Ringold Practice Manager Christian Bodewig Task Team Leader: Kalilou Sylla The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) ABBREVIATIONS AND ACRONYMS CERC Contingency Emergency Response Component CMS Case Management System IGA Income-Generating Activity IGAP Income-Generating Activity Program LIPW Labor-Intensive Public Work LIPWP Labor-Intensive Public Works Program MDTF Multi-Donor Trust Fund MIS Management Information System NGO Non-Governmental Organization PDO Project Development Objective PGTMU Governmental Emergency Cash Transfer Program -Covid 19 (Programme Gouvernemental de Transferts Monétaires d’Urgence- COVID 19) RAMED Health Insurance (Régime d’Assistance Médicale ) RSU Unified Social Registry (Registre Social Unifié ) UTGFS Safety Nets Technical Management Unit (Unité Technique de Gestion des Filets Sociaux) The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) BASIC DATA Product Information Project ID Financing Instrument P127328 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 30-Apr-2013 30-Jun-2023 Organizations Borrower Responsible Agency Ministry of Economy and Finance Project Development Objective (PDO) Original PDO The objectives of the Project are to provide targeted cash transfers to the poor and food insecure households and to establishbuilding blocks for a national safety net system for the Recipient. Current PDO The objectives of the project are to increase access to targeted cash transfers for poor and vulnerable households and build an adaptive national safety net system in Recipient's territory . OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D3480 05-Jul-2018 16-Jul-2018 15-Oct-2018 30-Jun-2023 52.00 34.11 14.96 IDA-H8350 30-Apr-2013 27-May-2013 17-Aug-2013 31-Dec-2019 68.80 64.00 0 TF-A7655 05-Jul-2018 16-Jul-2018 15-Oct-2018 30-Jun-2021 1.12 1.12 0 TF-A2384 01-Sep-2016 01-Dec-2016 01-Dec-2016 31-Dec-2019 7.72 7.72 0 The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This restructuring paper seeks your approval to cancel SDR 10 million (equivalent US$13,513,514) following the government’s request dated May 11, 2023 and adjusting component costs accordingly. A. The project status 2. The Emergency Safety Nets Project (Jigisemejiri - P127328) was approved by the World Bank on April 30, 2013, in the amount of SDR 46.3 million (US$70 million equivalent). Since then, it: (i) received two additional financings for a total of US$64.4 million: the first additional financing in the amount of US$ 10 million from the Sahel Adaptive Social Protection Program – Multi-Donor Trust Fund (SASPP-MDTF) and the second additional financing combined SDR 36.2 million (US$ 52 million equivalent) and US$12.4 million from the (SASPP-MDTF). This brought the total project cost to US$134.4 million; and (ii) extended the closing date from December 31, 2019, to December 30, 2022. Project implementation (IP) and progress towards achieving the PDO are currently rated moderately satisfactory, mainly due to several operational and country specific challenges, including: (i) suspension of disbursements; (ii) growing insecurity/movement restrictions; (iii) delays in procurement processes; and (iv) internal project unit coordination challenges as the project grew in complexity. A detailed summary of progress to date per component is as follows: (a) Component 1: Cash transfer program and accompanying measures (US$ 112.8 million) . As April 30,2023, through the Jigisemejiri program, the PIU has: (i) provided quarterly cash transfers to a cumulative total of 103,5411 households of which 91,703 households funded by IDA and MDTF resources, reaching 576,907 direct beneficiaries/individuals,2 of which 48.02 percent are women, in all regions of Mali3; (ii) provided nutritional supplements to 105,000 beneficiaries (70 percent were children ages under 5 years and 30 percent were pregnant women); (iii) provided income generating activities (IGAs) to 27,997 households, with 40 percent of IGAs tailored for women’s participation; and (iv) provided access to free health care through the non-contributory ‘’Régime d’Assistance Médicale’’ (RAMED) to 56,698 heads of households. In addition, 16,858 households with children under the age of 3 years benefitted from counselling services compared to the 10,000 target, and 66 percent 1 103,541 includes beneficiaries supported with the government fund (7, 596 beneficiaries) and French Development Agency (4,242 beneficiaries) 2 251,143 children ages 6–14 years, and 50,233 elderly people ages 60+ 3 The cash transfers come with accompanying measures -- information sessions on nutrition, health, education, and family economy for participants and other community members. The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) of beneficiary households live below the poverty line. Labor-intensive public works were completed on 105 of a total of 540 planned sites and the payment of wages were done to 13,807 beneficiaries. (b) Component 2: Establishment of a basic safety net system (US$ 8.30 million). The project supports the establishment of a social safety net system through the creation of the Unified Social Registry (RSU). As of December 2022, the RSU counted 1.1 million records which includes beneficiaries directly identified and registered through project activities as well as those from other government programs (i.e., RAMED, PGTMU etc.). (c) Component 3: Project management (US$ 13.30 million). The project supported (i) fully staffing the implementation unit, which is the Safety Net Technical Management Unit (Unité Technique de Gestion des Filets Sociaux, UTGFS); (ii) effectively providing capacity building for staff of the UTGFS and the National Directorate for Social Protection and Economic Solidarity (Direction Nationale de la Protection Sociale et de l’Économie Solidaire, DNPSES); and (iii) the development of a monitoring and evaluation systems to track the project’s operational, financial, and procurement activities and selected impacts. (d) Component 4 : Contingency Emergency Response Component (US$ 0 million) . The project has not activated the Contingent Emergency Response (CERC) component. B. Rationale for Restructuring 3. As mentioned above, the project has recently faced several challenges mostly outside of its control, but which led to delays in providing critical support to cash transfer beneficiary households, IGA (income-generating activity) grant recipient and Labor-Intensive Public Works (LIPW) beneficiaries. Difficulty to hiring of payment operators and NGOs to operate in insecure areas and subsequent suspension of disbursements because of the country social and political context, have significantly impacted the implementation of the project ‘s activities. As the result, the project will not be able to fully disburse the total amount allocated, by June 30, 2023. 4. The restructuring also responds to the request of the government to cancel SDR 10 million (US$13,513,514 equivalent) ahead of the upcoming closing date, requiring adjustments to component costs, disbursement projections and the results framework. As May 31, 2023 the project has disbursed SDR 23,755,438.50 (US$31,534,394 equivalent) on the grant No D3480-ML, leaving SDR 12,444,561.50 (US$16,519,657 equivalent) undisbursed. Based on the annual work plan and disbursement projections convened with the counterpart, the project is expected to disburse an additional SDR 2,000,000 (US$2,7000,000 equivalent) by June 30, 2023. II. DESCRIPTION OF PROPOSED CHANGES Reduction of components allocation: 5. The project components will remain the same. However, the scope of activities for components 1, 2 and 3 will be reduced to reflect the cancellation. Changes in components are reflected as follows: The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) Table 1: Changes to component costs Component Initial cost Cancelled Revised cost SDR amount (US$ amount (US$ (US$ cancelled equivalent) equivalent) equivalent) Component 1 (Cash transfer program and 112,800,000 11,236,486.00 101,563,514 8,315,000 accompanying measures) Component 2 (Establishment of a basic safety 8,300,000 875,062.00 7,424,938 647,545.48 net system) Component 3 (Project management) 13,300,000 1,401,966.00 11,898,034 1,037,454.48 Total 134,400,000 13,513,514.00 120,886,486 10,000,000 The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) 6. Adjustment to disbursement categories: The relevant disbursement categories will be adjusted as follows: Table 2: Project cost per category in SDR as of May 15, 20234 Category Initial amount Disbursed to Cancellation Revised amount date SDR SDR SDR SDR 1 Cash Transfers under 18,200,000 12,933,522 2,500,000 15,700,000 1.A 2 Cash Transfers under 1,200,000 383,905 590,000 610,000 Part 1.D(a) 3 Cash Transfers under 5,700,000 2,554,978 1,290,000 4,410,000 Part 1.E (a) 4 Goods, non-consulting 5,500,000 1,393,952 3,930,000 1,570,000 services, and consulting services, including Training and Operating Costs under Parts 1.B, 1.D (b), and 1.E (b) 5 Goods, non-consulting 5,600,000 3,143,678 1,690,000 3,910,000 services, and consulting services, including Training and Operating Costs under Parts 2 and 3. 6 CERC under Part C.2 0 0 0 0 Cancelled 10,000,000 Total Amount 36,200,000 20,410,035 10,000,000 36,200,000 4 Exchange rate as of May 15, 2023 is US$1=0.74 SDR The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) 7. Results/indicators changes: The restructuring proposes the following changes to the results framework: Table 3: Results framework details changes Indicator name End target Revised Rationale (initial) target PDO indicators Households with access to cash transfers established by the project The target has been reduced the Households with access to cash transfers budget decrease/ cancellation and 100,000 94,141 established by the project (Number) movement restrictions/accessibility restrictions. The target has been reduced to reflect Households with access to cash transfers the budget decrease/cancellation and established by the project: LIPWP 27,000.00 14,868 movement restrictions/ accessibility (Number) restrictions. The target has been reduced to reflect Households with access to cash transfers the budget decrease/cancellation and 32,500 31,749 established by the project: IGAP (Number) movement restrictions/ accessibility restrictions. Intermediate Results Indicators by Components No change to target but to clarify that the “spill-over” effect of component 2 Beneficiary households that have been 110,0000 110,0000 led to the registration of 1.1 million identified and registered (Number) households (including government- sponsored program beneficiaries). The indicator was decreased to reflect Workdays created (Days) 1,620,000.00 554,530 the decrease in the budget linked to the reduction in LIPW beneficiaries. This indicator has been reduced to reflect the proportion of payments % of beneficiaries receiving regular made by the PIU on time due to payments within the agreed time frame accessibility restrictions and 80.00 36.66 for LIPWP activities as specified in the coordination challenges of activities Operations Manual (Percentage) between Non-Governmental Organizations (NGO) and payment agencies by the PIU. Given that the CERC was not triggered, % of beneficiaries receiving contingency this indicator is not relevant to the resources within 60 days of identification 80.00 Dropped performance of the project, and it will of needs (Percentage) be dropped 3. Project management 20 This indicator is a duplicate and Project management expenses ratio measures the same as the indicator Dropped (Percentage) “Administrative expenses inferior to 20% (Percentage)”. The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) 1. Cash transfer program and 1. Cash transfer program and 112.80 Revised 101.60 accompanying measures accompanying measures 2. Establishment of a basic safety 2. Establishment of a basic 8.30 Revised 7.40 net system safety net system 3. Project management 13.30 Revised 3. Project management 11.90 4. Contingency Emergency 4. Contingency Emergency 0.00 No Change 0.00 Response Component Response Component TOTAL 134.40 120.90 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IDA-D3480- Disburs XDR 36,200,000.00 10,000,000.00 15-May-2023 26,200,000.00 FOR 001 ing COUNTRY REASONS Fully IDA-H8350- Disburs XDR 45,466,464.21 0.00 45,466,464.21 001 ed Fully TF-A2384- Disburs USD 7,724,848.89 0.00 7,724,848.89 001 ed Fully TF-A7655- Disburs USD 1,122,268.75 0.00 1,122,268.75 001 ed OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) IDA-D3480-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Cash Transfers - Part 1.A 18,200,000.00 13,830,883.39 15,700,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Cash Transfers Part 1.D (a) 1,200,000.00 526,528.48 610,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Cash Transfers - Part 1.E (a) 5,700,000.00 3,121,934.67 4,410,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: GD,NCS,CS,TN,OC Pt1.B;1.D(b);1.E(b) 5,500,000.00 1,566,042.59 1,570,000.00 100.00 100.00 iLap Category Sequence No: 5 Current Expenditure Category: GD,NCS,CS,TN,OC Parts 2 and 3 5,600,000.00 3,437,888.86 3,910,000.00 100.00 100.00 iLap Category Sequence No: 6 Current Expenditure Category: CERC Part under Part C.2 0.00 0.00 0.00 100.00 100.00 Total 36,200,000.00 22,483,277.99 26,200,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2013 0.00 0.00 2014 4,454,800.00 0.00 2015 7,010,080.00 0.00 2016 13,998,530.00 0.00 The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) 2017 22,719,340.00 0.00 2018 18,642,950.00 0.00 2019 14,967,890.00 0.00 2020 15,316,550.00 0.00 2021 14,492,550.00 0.00 2022 15,958,790.00 0.00 2023 6,838,520.00 10,000,000.00 . The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) . Results framework COUNTRY: Mali Emergency Safety Nets project (Jigiséméjiri) Project Development Objectives(s) The objectives of the project are to increase access to targeted cash transfers for poor and vulnerable households and build an adaptive national safety net system in Recipient's territory . Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Households with access to cash transfers established by the project (Action: This Objective has been Revised) Households with access to cash transfers established by the 0.00 94,141.00 project (Number) Rationale: The target has been reduced to reflect the budget decrease/cancellation and movement restrictions/ accessibility Action: This indicator has been Revised restrictions. Households with access to cash transfers established by the 43,613.00 87,000.00 project: direct cash transfers (Number) Households with access to cash transfers established by the 0.00 14,868.00 project: LIPWP (Number) Households with access to cash transfers established by the 0.00 31,749.00 project: IGAP (Number) The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: The target has been reduced to reflect the budget decrease/cancellation and movement restrictions/ accessibility Action: This indicator has been Revised restrictions. Children 0-5 benefiting from cash transfers (Number) 0.00 100,000.00 Number of households with children under 3 years old benefiting 0.00 10,000.00 from counseling services provided by CMS (Number) Direct project beneficiaries (Number) 0.00 550,000.00 Female beneficiaries (Percentage) 0.00 40.00 Beneficiaries households that are below the poverty line 0.00 75.00 (Percentage) Registry for potential beneficiaries of safety nets programs 0.00 80,000.00 (Number) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target 1. Cash transfer programs and accompanying measures (Action: This Component has been Revised) Number of beneficiaries that report they are aware of program 0.00 80.00 IGAP objectives and entitlements (Percentage) Beneficiary households that have been identified and registered 0.00 110,000.00 (Number) Action: This indicator has been Revised Rationale: The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target No change to target but to clarify that the “spill-over” effect of component 2 led to the registration of 1.1 million households (including government-sponsored program beneficiaries). % of beneficiaries that report they are aware of LIPWP program 0.00 85.00 objectives and entitlements (Percentage) Action: This indicator has been Revised % of beneficiaries households reporting that their livelihoods has 0.00 75.00 benefitted from LIPWP created assets (Percentage) Workdays created (Days) 0.00 554,530.00 Rationale: Action: This indicator has been Revised This indicator was decreased to reflect the decrease in the budget linked to the reduction in LIPW beneficiaries % of beneficiaries receiving regular payments within the agreed time frame for LIPWP activities as specified in the Operations 0.00 36.60 Manual (Percentage) Rationale: The indicator has been reduced to reflect the proportion of payments made by the PIU on time due to accessibility Action: This indicator has been Revised restrictions and coordination challenges of activities between NGO and payment agencies by the PIU. % of beneficiaries receiving contingency resources within 60 days 0.00 80.00 of identification of needs (Percentage) Rationale: Given that the CERC was not triggered, this indicator is not relevant to the performance of the project, and it will be Action: This indicator has been Marked for Deletion dropped The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Children benefitting from Nutritional Packages in household 0.00 102,000.00 receiving cash transfers (Number) Action: This indicator has been Revised Percentage of households with children under 3 years old benefiting from at least 3 sessions of counseling services 0.00 75.00 provided by CMS a year (Percentage) Proportion of targeted households with increased consumption 0.00 70.00 (Percentage) Beneficiaries complying with the requirement of participating in 0.00 75.00 the accompanying measures (Percentage) Proportion of targeted households with food consumption score 71.90 90.00 >35 (consumption) (Percentage) 2. Establishment of a basic safety net system MIS conceived (Yes/No) No Yes 3. Project management (Action: This Component has been Revised) Project management expenses ratio (Percentage) 0.00 20.00 Rationale: Action: This indicator has been Marked for Deletion This indicator is a duplicate and measures the same as the indicator “Administrative expenses inferior to 20% (Percentage) Administrative expenses inferior to 20% (Percentage) 16.20 20.00 IO Table SPACE The World Bank Emergency Safety Nets project (Jigiséméjiri) (P127328)