The World Bank Local Governance and Resilient Communities (P178699) f Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 28-Jun-2023 | Report No: PIDA34709 May 30, 2023 Page 1 of 17 The World Bank Local Governance and Resilient Communities (P178699) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Central African Republic P178699 Local Governance and Resilient Communities Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) WESTERN AND CENTRAL AFRICA 28-Jun-2023 05-Sep-2023 Social Sustainability and Inclusion Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Economy, Ministry of the Economy, Planning and International Planning, and Cooperation International Cooperation Proposed Development Objective(s) The Project development objective is to: build state and citizen capacity for local service delivery, improve access to basic socio-economic climate adaptive infrastructure, and provide socio-economic support to the reintegration of ex- combatants. Components Deconcentrating Financing and Enhancing Local Capacity for Service Delivery Community Resilience Socio-economic reintegration of ex-combatants Project management PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 90.00 Total Financing 90.00 of which IBRD/IDA 90.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing June 28, 2023 Page 2 of 17 The World Bank Local Governance and Resilient Communities (P178699) International Development Association (IDA) 90.00 IDA Grant 90.00 Environmental and Social Risk Classification Substantial Decision The review did authorize the team to appraise and negotiate B. Introduction and Context 1. Located in the heart of Africa, the Central African Republic is a sparsely populated and landlocked country. It is one of the poorest and most fragile countries in the world despite its wealth in natural resources. The country is endowed with impressive agricultural potential, minerals and forests, but their fruits have yet to benefit the population: 72.1% of the population lives on less than 2.15 USD per day. With a population of around 6.1 million CAR is at the very bottom of the human capital and human development indices. The country has been caught in a cycle of recurrent violence for over forty years. Its institutions are weak, citizens have limited access to basic services, public infrastructure is inadequate. 2. Poverty rates are extremely high, especially outside Bangui. Growth is uneven and productivity has halved since 1990. Access to income generating activities is limited. The economy is largely informal except for a few urban and mining enclaves. The majority of the people are living on subsistence farming with a lack of access to credit, fertilizers and modern technology. A limited road network makes transport between communities difficult. The recurrent conflicts with a large amount of displacement, together with regional dynamics and effects of climate change have increased community-tensions and violence between transhumance herders and agriculturists. The lack of state presence has made people feel abandoned. 3. The country faces a structural budget deficit mainly due to low domestic revenues (less than 10% of GDP), failing to profit from its natural resources, especially mining of gold and diamonds and forestry, and underdeveloped private sector. Furthermore, the country faces governance challenges, low State capacity and civil capacity, and a frail social contract. Sectoral and Institutional Context 4. Decentralization is a central part of the commitments adopted in the Political Agreement for Peace and Reconciliation in the Central African Republic (APPR) and the National Recovery and Peace Building Plan, 2017-2021 (NRPBP). The decentralization process was seen by many rebel groups as a legitimate path to self-determination and participation in the management of local natural resources. However, CAR has a weak civil administration at the central level and at sub-national levels of the administrative districts, Regions, Prefectures and Sub-Prefectures. Appointed prefects and sub-prefects June 28, 2023 Page 3 of 17 The World Bank Local Governance and Resilient Communities (P178699) have limited capacities and few resources. The de-concentrated delivery of social services (education and health) has similarly weak capacity and resource constraints. Public services, such as running water and electricity are rare outside of Bangui. 5. The country has initiated the decentralization process that will give more power to the local authorities, and a revised legal framework was approved in 2020. Progress, however, on the finalization of the legal framework and implementation of the decentralization reform has been slow. The vast majority of civil servants and agents of the State (fonctionnaires et agents de l’État; FAE) are based in Bangui and not in the regions. Lack of security, absence of public services, lack of incentives and difficulties receiving salaries are among the challenges which make it difficult for FAE to be based outside of the capital. Still, the current situation is an improvement compared to 2016, when only an estimated 5 percent of civil servants remained in postings outside of Bangui. In addition, local governments have limited financial resources and fiduciary capacities. According to the 2019 municipal survey, only one in ten municipalities reported receiving a transfer of funds from the central administration. More than one third (41 out of 142 communes) reported having no budget. 6. CAR’s humanitarian situation is dire and more than 50% of the population is dependent on humanitarian aid. Based on UNHCR data, as of October 2022 and as a result of persistent insecurity there were more than 740,000 refugees and 511,00 internally displaced persons (IDP) in the country. The civilian population remains the primary victim of armed violence. Security concerns also limit the access of central government representatives to the regions. 7. Social cohesion in CAR is chronically undermined and the resilience of communities have severely weakened due to the recurrent cycle of violence. Years of persistent instability, displacement and conflict have left communities fractured and divided. Tensions between and within communities, and between communities and local authorities are high. The following are interrelated drivers of conflicts and tensions that exist within communities and that will be addressed by the Project: a. Transhumant pastoralism: Conflict in CAR is fueled by tensions among different groups of transhumant herders, armed groups, and farmers. Traditional conflict resolution mechanisms have come under increased pressure, and armed groups exploit herding for revenue, leading to increased conflict and violence. b. IDPS/Refugees: The protracted conflict has displaced a large proportion of the population, with many seeking protection in neighboring countries and others internally displaced. c. Ex-combatants: The recurrent conflicts have also led to demobilized ex-combatants, that requires a structured process for them to reintegrate back into the communities. Without proper support, both to the ex-combatants and the communities they are returning to, communal and intercommunal tensions, will arise. d. Youth and other vulnerable groups: The unemployment rate among youth is 62%. There are very few opportunities for them to pursue education options or access credit, limiting their ability to find employment or generate livelihood options. e. Gender. CAR has some of the largest gender gaps in the world: for gender equality the Human Development Index ranks CAR 188 out of 191 counties. Women and girls in CAR June 28, 2023 Page 4 of 17 The World Bank Local Governance and Resilient Communities (P178699) lack voice and agency, reproductive autonomy, are disproportionately excluded from education, and have fewer skills than men to compete in the labor market. While CAR is committed to gender equality in the law, the implementation remains weak. Empowering women and girls is key for the development of the country C. Proposed Development Objective(s) Development Objective(s) (From PAD) 8. The Project development objective is to: build local capacity for citizen-responsive service delivery, improve access to basic socio-economic climate adaptive infrastructure, and provide socio-economic support to the reintegration of ex-combatants. Key Results 9. The project intends to achieve the development objective by: (i) strengthening the capacity of state and local authorities to deliver services to the population and increasing the beneficiaries’ capacity to participate in the local governance process; (ii) delivering key climate-resilient community infrastructure with a focus on small-scale infrastructure that can generate income to both the population and the local authorities in selected communes; and (iii) support the reconciliation of conflicts through socio- economic support to ex-combatants for their reintegration back into their communities. The project will start to lay the foundations for improving the social contract and the social cohesion in the communities. The indicators to follow-up progress on the Project Development Objective (PDO) are: • Direct beneficiaries in Project areas reporting improved access to climate adaptive socio- economic infrastructure, of which female and youth (percentage). • Community members reporting that local public socio-economic investments reflect their needs (Percentage, disaggregated by-percentage of female). • Increased percentage of Community members reporting improved perceptions of inclusive and accountable local governance in a multi-dimensional survey instrument. • The share of female participants in local village committees in the targeted prefectures. • Increased amount of civic registration services provided by local authorities in the targeted communities. • Former combatants having received socio-economic support to reintegrate into their communities, of which are female (percentage). June 28, 2023 Page 5 of 17 The World Bank Local Governance and Resilient Communities (P178699) D. Project Description 10. The Project has five key pillars that are mutually reinforcing: (i) strengthening capacities of decentralized local entities and citizens (Component 1); (ii) direct interventions at the community level to improve community infrastructure and livelihood (Component 2); (iii) support to the socio-economic reintegration of ex-combatants into the communities (Component 3); (iv) Project management (Component 4); and (v) the Contingency Emergency Response component (CERC – Component 5). The Project will combine support to the government’s efforts at decentralization (including strengthening targeted local government entities) with bottom-up development engagements to build community resilience. Some of the activities under components 2 and 3 are similar, but the target groups are different and has to be handled accordingly. 11. The Project will lay the foundation for increased resilience and social cohesion within and between targeted communities. It will mitigate some of the key grievances that exist, most notably, between transhumant pastoralists and agriculturalists, but also between host communities and ex-combatants, and by encouraging people from different ethnic, religious groups as well as IDSPs and host communities to work together. 12. The Project strongly emphasizes the women’s voice and participation in order to contribute to closing the gender gap regarding decision-making roles in the communities and to ensure that the infrastructure supported meets the need of women. At community level the Project will contribute to closing the gender gap by increasing women’s participation in local committees and local development and decision-making structures, and that the infrastructure that the Project rehabilitates, or construct are reflective of women’s need. This will be monitored through a PDO level indicator that measures to what extent women think that the socio-economic investments reflect their needs. The committee members will receive training on climate risks, gender, gender-based violence (GBV), and the importance of inclusion of vulnerable groups. The Project through the outreach and sensitization activities will encourage women ex-combatants to join the socio-economic reintegration activities which will deliver support tailored to the needs of female ex-combatants. The Project has a target of 40% of women participating in LIPW (Labor Intensive Public Works). 13. Citizen Engagement (CE) is a vital component of the Project, ensuring beneficiaries are active partners in its implementation. The Project will enhance CE through both bottom-up and top-down approaches. Community members will receive capacity building to enhance their participation in local decision- making and planning processes, while local authorities will be trained in inclusive planning and participatory methods. The Project will prioritize participative approaches and citizen engagement channels to foster public awareness and maximize participation. The Project will actively reach out to marginalized groups, including women, youth, IDPs, ex-combatants, people with disabilities, indigenous peoples and transhumant herders. 14. To mitigate the impacts of existing climate risks – extreme precipitations, flooding, and droughts – the project will incorporate climate resilience measures into capacity building, infrastructure design, and socio-economic development of the project’s target areas. The main climate risks that could affect these assets are extreme precipitation, flooding, and droughts. Given the project’s location and development context, these risks might have a moderate impact on the project’s infrastructure, according to the Climate and Disaster Risk Screening conducted for this project. To keep any possible June 28, 2023 Page 6 of 17 The World Bank Local Governance and Resilient Communities (P178699) material impacts to an acceptable (low) level, the project design includes several risk reduction measures: i) capacity building, e.g., training local authorities on formulating and implementing LDPs that consider site-specific climate risks, vulnerabilities, and contingency measures to address climate- exacerbated disasters; and ii) climate-resilient infrastructure, through construction and rehabilitation of buildings with integration of climate-resilient measures to protect against extreme events and to adapt to raising temperatures (C1.2b);small scale community infrastructure, such as markets, trader facilities, water holes (C2.); rural feeder roads without capacity expansion, adhering to climate-proofed infrastructure design, and of small-scale infrastructure like dikes and drainage systems, (C. 2.2); demarcation of animal roads that adapt to climate change effects (C. 2.3); and incorporating climate resilient measures in the small scale infrastructure, such as digging dikes along rural feeder roads to improve drainage of water from extreme floods. Project Components Component 1: Strengthening Central Systems Underpinning Decentralization and Enhancing Local Capacity for Service Delivery 15. Component 1 aims to enhance the capacity of central and local governments, as well as citizens, to improve local service delivery. The component's activities are organized into three interrelated sub- components, targeting central state capacity, local state capacity, and citizen capacity . The rationale for working at three levels in parallel is twofold: i) Increasing state capacity without a corresponding increase in citizen capacity can lead to sub-optimal outcomes. For instance, if local resources are mobilized without ensuring downward accountability of local authorities, there is a risk of funds diversion, reputation loss for local authorities, and a reversal of reform efforts. ii) By avoiding dependence on a single set of stakeholders, this approach provides flexibility to address potential challenges. In case of gridlock at the central level, the project can focus on ongoing local authorities. The three sub-components will have the following objective: • Sub-component 1.1 will aim to strengthen the central government’s institutions and systems that support communes, including the legal framework, the fiscal decentralization framework, and human resources management. This also includes the deconcentrated aspect of local governance. • Sub-component 1.2 will aim to provide direct technical support and climate resilient infrastructure rehabilitation, as well as equipment, to the municipal governments of selected communes within the targeted areas. • Sub-component 1.3 will aim to strengthen the accountability of local governments by strengthening citizen capacity and the citizen-state interface within the selected communes. Subcomponent 1.1. Operationalization of the multi-level governance framework and systems to enable local development 16. Sub-component 1.1 will provide technical assistance to strengthen the central government’s institutions, legal framework, financial management systems and human resources that enable governance. The principal beneficiaries of this sub-component will be the Ministry of Territorial Administration, Decentralization and Local Development (MATD), the Ministry of Finance and Budget June 28, 2023 Page 7 of 17 The World Bank Local Governance and Resilient Communities (P178699) (MFB), and specific agencies such as the National School of Administration and of the Judiciary (ENAM). The list of activities will include support in the following areas: (a) The Project will provide technical assistance to establish regulatory and institutional arrangements for multi-level governance. This includes supporting the implementation of the Decentralization Law and the Deconcentration Law, clarifying resource transfers, functional assignments, and revenue sharing with special attention to mining and forestry royalties and deconcentrated treasury management. (b) The Project aims to strengthen financial management systems for resource transfers and treasury flows outside of Bangui. It will enhance existing systems like regional treasury direction, financial oversight through the Supreme Audit Institute, and the central accounting agency (Agence Comptable Central du Trésor – ACCT) and the MATD deconcentrated agents (prefects and sub-prefects) and MATD representatives at deconcentrated levels. The Project will also create synergies with the Public Sector Digital Governance Project (P174620), on the extension of the SIMBA accounting system to a i) include regional directions of the treasury covering municipalities and ii) leverage the PATAPAIE system launched by the PSDGP project to enable mobile payment solutions in more areas, facilitating salary payments, retroceded taxes, and transfers to local authorities for promoting locally led climate actions. (c) The Project will support human resources for local governance through a dedicated training program. This program, hosted at institutions like ENAM or the University of Bangui, will enhance civil servants' knowledge of local governance and decentralization. Online resources will supplement classroom teaching with partnerships formed with organizations like Apolitical and IMF. The program will offer degrees for civil service entrants and mid-career certifications for municipal civil servants. Training topics will cover legal frameworks, procurement, resource mobilization, taxation, climate change resilience, sustainable development, participation, accountability, and transparency. This sub-component will improve human resource management for deconcentration and decentralization. This activity is also a first step in a broader effort to assess and improve the management of the human resources of the state which will include a review of the hiring, incentivizing, and managing of the deconcentrated and decentralized staff. Next steps by future programs will explore the possibility to support the creation of a Decentralized Civil Service (Function Civile Territoria). Subcomponent 1.2. Enhancing the Capacity of Local Authorities to Perform Their Functions 17. Subcomponent 1.2 will provide capacity building of local governments on planning, resources mobilization and management, procurement, and service delivery. (a) Enhancing human resources for local development involves providing trainings and capacity building to municipalities in core public sector and governance functions. This includes improving skills in financial management, procurement, human resources, monitoring and evaluation, civil registration, climate resilience, revenue mobilization, participatory approaches, accountability, and grievance redress. These efforts empower local authorities to effectively manage increased resources and comply with decentralization protocols, laws, and agreements. Specialized training programs also enable deconcentrated and local governments to operationalize climate change actions. June 28, 2023 Page 8 of 17 The World Bank Local Governance and Resilient Communities (P178699) (b) Investment in climate-resilient infrastructure and equipment at the municipal and sub- prefecture level will be coordinated with the implementation of Component 2. This subcomponent aims to support the construction of climate-resilient municipal and sub- prefecture infrastructure, such as town halls and offices, and the procurement of office furniture and equipment. (c) The subcomponent supports a government-owned template and methodology for municipal planning documents, integrating locally led climate actions. It involves reviewing existing practices to establish a standardized approach in collaboration with the Ministry of Territorial Administration and Decentralization (MATD). Selected communes will receive support for the elaboration of climate-informed local development plans (LDPs -in close collaboration with component 2.1), budgets, and investment plans, Activities will also focus on revenue generation strategies. Transparent and accountable public financial management, including citizen engagement mechanisms like budget disclosure, will be prioritized. Subcomponent 1.3: Enhancing Citizen Capacity and the Citizen-State Interface for Local Development 18. Subcomponent 1.3 focuses on enhancing citizen participation and accountability in local governance. Recognizing the importance of the citizen-state relationship in co-producing development outcomes, this subcomponent aims to create space for citizens to have a voice and the knowledge to engage effectively. Working closely with activity 2.1, it emphasizes the alignment of community-driven initiatives in component 2 with local governments for sustainability. 19. Strengthening citizen capacity and the citizen-state interface at the municipal level involves raising awareness about decentralization and the roles of local authorities and citizens. The project will establish robust mechanisms for citizen engagement through component 2.1, including participatory and climate-informed local development plans. Capacity building will target existing communication channels between citizens and local governments, such as local leaders, community-based organizations, and the media. Stakeholder mappings conducted prior to project initiation in a commune will inform these activities, which will be closely coordinated with social cohesion and citizen engagement efforts under Component 2. 20. Building coalitions and awareness for decentralization at the central level entails collaborating with civil society networks and organizations that promote understanding and momentum for decentralization. This includes working with women's groups, youth groups, professional associations like the Mayors Association of Central Africa, and academic institutions. 21. Change management and adaptive management technical assistance will be provided to central ministries and agencies to support the deconcentration of services. This support aims to enhance the public sector's capacity to manage intergovernmental fiscal frameworks, monitor and assist local authorities in revenue administration, and conduct climate change and disaster risk assessments and management. Activities will involve developing strategies for deconcentrating hiring and encouraging deployment in selected ministries, providing training for deconcentrated agents, and building the capacity of central ministries and local governments to understand protocols, laws, and agreements related to climate change mitigation and adaptation. The goal is to improve cooperation between deconcentrated and decentralized administrations by establishing an integrated platform and networks for local service delivery. June 28, 2023 Page 9 of 17 The World Bank Local Governance and Resilient Communities (P178699) Component 2: Community Resilience 22. The component adopts a community and local development-driven approach to enhance community resilience and promote social cohesion among various groups within and between communities. The Project ensures an integrated and inclusive engagement with communities, addressing key themes such as gender, climate resilience, and the inclusion of vulnerable groups. Special attention will be given to hosting IDPs and transhumant herders, considering their unique needs. Through the participatory engagement, and with the involvement of local authorities, local development plans will be elaborated, through which select small-scale infrastructure will be financed. Through Component 1.2, local authorities will receive training on how to manage and monitor the local plans in collaboration with the community members. The component encompasses: (i) development of climate-informed local development plans that support construction and rehabilitation of productive socio-economic infrastructure through participatory methods; (ii) assisting community members through LIPW to restore and strengthen feeder roads and small-scale infrastructure; and (iii) promoting socio-economic and climate resilience among farmers and transhumant herders, fostering peaceful coexistence. 23. Through a conflict-sensitive approach, the component aims to enhance social cohesion among different groups in the communes and communities. In areas where communal tensions exist, such as between IDPs and host communities or between transhumant herders and farmers, the Project seeks to reduce such tensions. For conflicts between transhumant herders and farmers, the Project will facilitate the demarcation of migration corridors, the establishment of water sources, and the rehabilitation of traditional community mediation systems. The seasonal movement of transhumant herders and livestock, while posing conflict potential, also represents a valuable value chain that can generate income for local authorities and the population, contributing to improvements under Component 1. Subcomponent 2.1. Community-driven construction and rehabilitation of climate-resilient infrastructures 24. This component will link socio-economic interventions with support to enhanced accountability mechanisms between the state and citizens through: a) Facilitating and improving community participation processes and local development plans. Community members, in collaboration with local authorities, will select small-scale infrastructure projects for construction or rehabilitation. In communes with existing local development plans (LDPs), these plans will form the basis from which the participatory selection of small-scale infrastructure that will be financed by the Project will be chosen. In communes which do not already have plans the community consultations, a preliminary list will be established through participatory processes that involves the local authorities. The preliminary list will form the basis for a local development plan, and based on priorities expressed by the community members, a short list of infrastructure to be constructed or rehabilitated by the Project will be selected. The development of the local plans and the selection of the infrastructure will be informed by participatory climate diagnostics. Local community groups, either pre-existing or formed by the Project, will facilitate participation. A 40% quota for women's representation in the committees will address cultural barriers. The Project will provide leadership training for women in June 28, 2023 Page 10 of 17 The World Bank Local Governance and Resilient Communities (P178699) the targeted provinces to increase their involvement. Committees will include members from women's organizations, youth organizations, organizations representing people with disabilities, and other interest groups. In areas with IDPs and IPs, their input will be sought, and they will be encouraged to have representatives in the committees. The committees will facilitate the identification process, stakeholder and conflict mapping, and will receive training on participation and inclusion. Committee members will also help disseminate communication messages. b) Improving access to productive social and economic climate-resilient infrastructure. This subcomponent funds the construction and rehabilitation of local infrastructures identified in LDPs from sub-component 2.1. It prioritizes income-generating investments, such as markets, trader facilities, water holes, feeder road maintenance, and agricultural product drying platforms. New infrastructure follows climate- resilient design principles, while existing infrastructure is rehabilitated to enhance resilience. Climate-resilient measures include flood-proofing, energy-saving features, and renewable energy sources like solar panels when feasible. Remote areas lacking social services may receive support for social service infrastructure, combined with small-scale productive infrastructure. The Project will pilot an approach allowing women to choose infrastructure that meets their needs, prioritizing productive infrastructure for their economic activities. Community committees, trained in infrastructure maintenance, will manage the investments in coordination with local authorities. c) Creating and reinforcing feed-back loops between the population and the local authorities. The Project will promote transparency and accountability through collaboration with local civil society groups, village committees, and authorities. Feedback loops will be established to gather input on local development plans and infrastructure created or rehabilitated by the Project. Training will be provided to local CSOs, village committees, and authorities on social accountability mechanisms and tools like community scorecards, social audits, and climate risk assessments. The findings from consultations with the local population will inform monitoring efforts for development plans and infrastructure. Special attention will be given to including marginalized groups through outreach and collaboration with CSOs representing vulnerable populations. Sub-component 2.2 Labor-intensive public works (LIPW) 25. Public works through LIPW. The Project will involve community members in the following activities: i) construction or rehabilitation of rural feeder roads and associated investments, adhering to climate- proofed infrastructure design standards such as effective road drainage systems for heavy rainfalls; and ii) construction of small-scale infrastructure like dikes and drainage systems, designed to handle increased run-off from climate-induced floods; Inclusive participation will be encouraged, including the allocation of positions for ex-combatants and the involvement of IDPs, IPs, and pastoralists. Collaboration among beneficiaries from multiple localities will foster social cohesion and inclusion of vulnerable groups. Schedules will be adjusted to accommodate the safe participation of women and allow beneficiaries to fulfill household and childcare responsibilities. June 28, 2023 Page 11 of 17 The World Bank Local Governance and Resilient Communities (P178699) 26. The Project will utilize the lotto system of the Londo Project to select participants for LIPW. The lotto system guarantees fairness in the selection process and provides legitimacy to the Project. A soft quota of 40% women will be applied, considering that participants will be chosen by the lotto system. The Project will include people living with disabilities and other vulnerable groups and will do extensive outreach to reach members of these groups. 27. Implementation will emphasize community dialogue to define the feeder roads in each locality . Investments will be programmed in synergy with Local Development Plans where they exist or through expedient participatory processes. Through its monitoring activities, the Project will verify that the focus on feeder road construction remains aligned with community needs and allow for adjustment if demand for alternative or complementary infrastructure Projects arises. The local authorities will be responsible together with the village committees to do maintenance work after the LIPW activity has finished. 28. Subcomponent 2.3. Socioeconomic and climate resilience of farmers and transhumant herders to promote their peaceful co-existence in transhumance 29. In areas with transhumance, this component will support community-based approaches to reduce tensions during the seasonal movement of herds. The Project will focus on climate-resilient infrastructures to address conflicts around migration corridors and access to water holes. Measures include: (i) demarcating animal roads that adapt to climate change effects, adjusting routes based on water and feed availability, and (ii) constructing/rehabilitating water points using manual or renewable energy pumping. Conflict resolution efforts will be strengthened through mediation support at the community level. Early warning systems will be established and monitored by regional and national PIUs. Existing conflict resolution groups will receive assistance, and community groups under component 2.1 will be trained in conflict resolution and mediation. Component 3: Socio-economic reintegration of ex-combatants 30. This component focuses on three key activities: (i) constructing/rehabilitating small-scale climate- resilient infrastructure; (ii) providing civic education, literacy training, psycho-social support, vocational training, and forming income-generating groups for ex-combatants; and (iii) engaging in cash-for-work and community participation in planning and constructing infrastructures. These activities build on the experience of the PREC Project, which has supported ex-combatant reintegration in CAR since 2018. The government, with the assistance of MINUSCA's DDR unit, will conduct demobilization and disarmament, vetting ex-combatants for the socio-economic reintegration process. Sub-component 3.1: The construction of small-scale climate-resilient infrastructure 31. To gain community acceptance for the return of ex-combatants, it is important to provide benefits to the host communities. The PREC project has successfully rehabilitated/constructed small-scale infrastructure through a participatory process involving community members and local authorities, contributing to the acceptance of ex-combatants. The Project will follow this approach to prevent tensions in the communities. When components 2.2 (LIPW) and 3 (Socio-economic reintegration) are implemented in the same location, they will be combined. Sub-component 3.2: Civic education, vocational training and creation of income generating groups 32. During the reintegration program, each ex-combatant will receive both civic education and vocational training followed by a kit. The reinsertion activities will include a package of core civic training. The training will focus on several topics: (i) basic literacy and numeracy; (ii) relevant and targeted life skills (iii) peace, reconciliation and conflict resolution; (iv) human rights, gender sensitization, civic education June 28, 2023 Page 12 of 17 The World Bank Local Governance and Resilient Communities (P178699) and citizenship; (v) health awareness; (vi), psycho-social support, (vii) current and future climate risks and options to make livelihoods more climate resilient; and (vii) livelihood counseling to create a pathway to vocational or agricultural training. 33. Trained counselors from Information, Counseling, and Referral Services (ICRS) will guide ex- combatants in livelihood and career choices. Market assessments will inform tailored vocational training and economic reintegration programs. Entrepreneurship, financial literacy, and cooperatives training will empower ex-combatants. They will undergo a four-month vocational training of their choice, supported by start-up kits and assistance in establishing small businesses and forming partnerships through co-operatives or associations. Sensitization efforts will promote peace, reconciliation and gender equality. The project will coordinate with the national DDRR program and assist ex-combatants in establishing small businesses. Financial literacy training and post-training support will be provided. Collaboration with local authorities will ensure ongoing non-financial support. Implementing partners, in coordination with local authorities, will deliver the training in temporary structures like schools or vocational centers. Sub-component 3.3 Participation in cash-for-work through LIPW work 34. To foster the reintegration of ex-combatants and improve community relations, they will have the opportunity to participate in cash-for-work programs and contribute to the construction of small- scale climate-resilient infrastructure. In areas where both components 2.3 and 3 are implemented, they will be combined. These initiatives will align with the ex-combatants' vocational training and incorporate climate-resilient measures, such as enhancing drainage systems and building water storage facilities to address floods and droughts respectively. 35. Recognizing the low representation of women in the formal DDR process in CAR (approximately 5% of ex-combatants), the Project will take a gender-sensitive approach to address the challenges faced by female ex-combatants. A comprehensive gender analysis will guide the design of targeted strategies and activities for women. Community-based initiatives involving women and girls will be implemented. Civic education and community sensitization efforts will include discussions on GBV to engage men and boys in addressing and transforming violent behavior. Component 4: Project Management 36. This component will support activities including (i) the planning, implementation, and technical oversight of program activities, (ii) effective social and environmental risks management (iii) financial management and procurement and (iv) putting in place a solid GRM system. Relevant government agencies at the national, regional, and local levels will be involved in the implementation process with adequate capacity-building support. Activities will include: (i) communication support, (ii) Monitoring and Evaluation (M&E) arrangements, (iii) climate adaptation and training and support and (iv) measures for enhanced transparency and accountability. Monitoring and digital innovation such as digital monitoring/supervision tools, including remote-sensing and Geo-Enabling Monitoring and Supervision (GEMS) will be considered. 37. A Project of this scale and complexity requires dedicated resources for monitoring and research. Applied research is needed to support CAR institutions in informing policy dialogue and reform on decentralization. Political economy studies at both central and local level to inform the decentralization process. The continuation and follow-up on the social contract study will be financed under this component, as will studies related to empowerment, DDR and social cohesion monitoring and research. June 28, 2023 Page 13 of 17 The World Bank Local Governance and Resilient Communities (P178699) Component 5: Contingency Emergency Response 38. A CERC will be included under the project in accordance with the World Bank Investment Project Financing (IPF) Policy, paragraphs 12 and 13, for projects in Situations of Urgent Need of Assistance or Capacity Constraints. This will allow for rapid reallocation of project proceeds in the event of natural or man-made disasters or crisis that has caused, or is likely to cause, a major adverse economic and/or social impact. The implementation modality and eligible activities to be financed under the CERC will be described in an annex to the Project Operations Manual (POM). . . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts . The Environmental and Social Risk Ratings are Substantial 39. The present Project has three key pillars of intervention: (i) strengthening the capacities of local entities (component 1); (ii) direct interventions at the community level to improve community infrastructure (component 2); and iii) socio-economic reintegration of ex-combatants (component 3). 40. Although the project will contribute to the strengthening of the deconcentrated services of the Ministry of Environment, many of the risks and impacts are expected to arise from the rehabilitation activities of community infrastructure, agricultural infrastructure (LIPW for access roads and auxiliary structures; small irrigation systems; water catchment; food storage/processing facilities; veterinary and plant breeding facilities; small-scale power generation and distribution systems; education and health care facilities; and other community services) and small-scale civil works (office rehabilitation). These risks will include occupational health and safety for workers and communities, nuisance (noise and dust), destruction of vegetation cover, change of land use and various wastes streams from labor- based works or rehabilitation activities. Under Component 1, specifically on strengthening local capacity for service delivery, the spread of HIV/AIDS and contamination by Sexual Transmitted Diseases (STIs) and COVID-19 are identified as risks. Based on the experiences of similar projects and scientific knowledge, the risks and impacts should be specific to the sites of activities, limited in number, and mitigated by easily identifiable measures. 41. In addition to the risks and impacts related to project activities, it is important to note the risk related to the capacities of the actors (PIU/MEPC) in the preparation and implementation of the project. In view of the above and taking into account the national scope of the project, the environmental risk is considered substantial at this stage. June 28, 2023 Page 14 of 17 The World Bank Local Governance and Resilient Communities (P178699) 42. The social risk rating is substantial. Overall, the project is expected to produce positive impacts, as it will contribute positively to empowerment of municipalities in general and specifically to the citizens, livelihood restoration, access to basic services, socioeconomic inclusion of vulnerable groups, including youth, women, persons with disabilities, Indigenous Peoples (IPs), refugees, IDPs and ex-combatants. However, the project may result in some adverse social risks and impacts that will be further explored during project preparation. 43. The project will involve civil works in communes which are likely to put additional pressure on social issues such as land acquisition and involuntary resettlement and Sexual exploitation and abuse (SEA)/Sexual Harassment (SH). The scope of resettlement and land acquisition (for roads and socio- economic infrastructure) is unknown at this stage, but it is expected that a number of persons will be directly impacted economically by the planned works. In addition, the rehabilitation and construction of civil works under component 2 might lead to some level of labor influx in some of the project areas which already host a wide range of PAPs, including vulnerable people such as young people, women, persons with disabilities and people displaced by conflict or insecurity. The social risks classification is related to: • SEA/SH Risks: The project will recruit many workers for construction/rehabilitation of infrastructure which will increase the risks of SEA/SH against women and girls. To mitigate this risk, procedures such as a SEA/SH risk assessment and the development of a SEA/SH Action Plan to support the mitigation of assessed SEA/SH risks will be required. • There is also a risk of lack of access, exclusion and marginalization of vulnerable and disadvantaged groups, particularly in remote areas and areas affected by conflict. Strategic approaches should be developed through the SEP to ensure that there is no exclusion or marginalization of any vulnerable groups especially among IDPs, ethnic minorities, young people, women, persons with disabilities, IPs, ex-combatants, etc. • Some project activities may occur in areas where Indigenous Peoples are present and careful consideration is needed to ensure they are fully included in project consultations and activities, and that any Project financed activities will not adversely impact Indigenous communities and their access to natural resources. • Insecurity risks: The project intends to implement certain activities in some communes affected by conflicts, while some activities will involve reintegration of ex-combatants and resolution of transhumance issues. Unfortunately, non-state army groups outside government control may be present. Therefore, the risk of attacks on project workers, assets and beneficiaries must be evaluated. A project security assessment and management plan has been developed. • COVID-19 risks: Current COVID-19 related transmission risks, and uncertainties about new waves, must be considered in relation to community mobilization activities and training sessions. The social risk classification will also consider the borrower’s limited capacity to manage project-related E&S risks and impacts in a manner consistent with the ESS. Capacity constraints will be further assessed June 28, 2023 Page 15 of 17 The World Bank Local Governance and Resilient Communities (P178699) during preparation, and appropriate capacity building measures will be introduced into the project. 44. All training sessions and awareness raising activities at the partner and community level will be carried out by project workers and/or contract workers. Communication materials/kits needed by workers/trainers will be provided. All these categories of workers will be exposed to health and safety risks, i.e., the risk of COVID-19 transmission during face-to-face training and sensitization activities. For suppliers and project staff, there will be the risk of road accidents, and exposure to COVID-19, Sexual Transmitted Diseases and HIV/AIDS. 45. The project will also consider the borrower’s limited capacity to manage project-related E&S risks and impacts in a manner consistent with the ESSs. Capacity constraints will be further assessed during preparation, and appropriate capacity building measures will be introduced into the project. Institutional and Implementation Arrangements 46. The Project will be hosted by the Ministry of Economy, Planning and International Cooperation (MEPCI). MEPCI will establish a Steering Committee for the Project that comprises representatives from other line Ministries, including the MTADL, the Ministry of DDRR, the MFB and representatives from line ministries as relevant. The Committee will focus on higher-level political engagement, establishing the Project’s strategic direction, and ensuring national-level political buy-in to the Project. . CONTACT POINT World Bank Abderrahim Fraiji Senior Social Development Specialist Camilla Marie Lindstrom Senior Social Development Specialist Mathieu Cloutier Senior Economist Borrower/Client/Recipient Ministry of Economy, Planning and International Cooperation June 28, 2023 Page 16 of 17 The World Bank Local Governance and Resilient Communities (P178699) Implementing Agencies Ministry of the Economy, Planning, and International Cooperation Felix Moloua Minister of State in Charge of the Economy of Planning , and moloua57@gmail.com 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 APPROVAL Abderrahim Fraiji Task Team Leader(s): Camilla Marie Lindstrom Mathieu Cloutier Approved By Practice Manager/Manager: Country Director: Cheick Fantamady Kante 29-Jun-2023 May 30, 2023 Page 17 of 17