$ Report No: RES00367 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF Fiji Social Protection COVID-19 Response and System Development Project APPROVED ON 09-Feb-2021 TO Republic of Fiji Social Protection & Jobs East Asia And Pacific Regional Vice President: Manuela V. Ferro Regional Director: Alberto Rodriguez Country Director: Stephen N. Ndegwa Practice Manager: Yasser Aabdel-Aleem Awny El-Gammal Task Team Leader(s): Yuliya Smolyar, Sandor I. Karacsony The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) ABBREVIATIONS AND ACRONYMS ASP Adaptive Social Protection COVID-19 Coronavirus disease of 2019 DFAT Department of Foreign Affairs and Trade FNPF Fiji National Provident Fund E&S Environmental and Social ESCP Environmental and Social Commitment Plan ESCOP Environmental and Social Code of Practice GBV Gender-Based Violence GoF Government of Fiji GRM Grievance Redress Mechanism ICT Information and Communication Technology JfN2 Jobs for Nature 2.0 MIS Management Information System MoA Memorandum of Agreement MoF Ministry of Finance MoFo Ministry of Forestry MWCSP Ministry of Women, Children and Social Protection NEC National Employment Center PMU Project Implementation Unit SP Social Protection SEP Stakeholder Engagement Plan TA Technical Assistance The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Fiji Social Protection COVID-19 Response and System P175206 Development Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Fiji Approval Date Current Closing Date 09-Feb-2021 31-Jul-2025 Environmental and Social Risk Classification (ESRC) Moderate Organizations Borrower Responsible Agency Republic of Fiji Ministry of Economy @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective to mitigate the impact of the COVID-19 crisis on the income of the unemployed and underemployed, and to increase efficiency and adaptability of the social protection system of the Recipient. Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Balance % Disbursed IBRD -- -- -- 0 i The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) IDA 98.90 85.99 12.91 86.94 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 1. This paper seeks the approval of the Country Director to restructure the Fiji Social Protection COVID-19 Response and System Development Project (Project, P175206), including the original credit IDA-68280 and Additional Financing credit IDA-71060. The proposed Level 2 restructuring is necessitated by the evolution in Project implementation as well as changes in government counterparts` priorities and cooperation and implies (a) reprograming of Component 2 activities and (b) adjustment of the results matrix to reflect the reprogramming. The restructuring has been requested by the Government of Fiji (GoF) through a letter by the Ministry of Finance (MoF), dated August 6, 2024. The revised project implementation plan and budget presented by the MoF`s Project Implementation Unit (PMU) has been found acceptable. No change to the project’s closing date of July 31, 2025 is proposed. ...........................................................................................................................................................................1 2. To achieve the development objective, the Project has taken an integrated approach by financing (i) the government emergency relief package to offer targeted temporary income support for the unemployed and vulnerable affected by COVID-19; (ii) institutional strengthening to build greater resilience for future shocks; and (iii) implementation of the Jobs for Nature 2.0 (JfN2) program of green public works to support short-term employment in environmental protection or restoration. Components 1 and 3 have been implemented in full, with target indicators achieved or exceeded. Component 1, implemented during April 2020 to July 2021, financed the cash transfers through government top-ups to cover unemployment assistance to about 68,864 members of Fiji National Provident Fund (FNPF) who have become unemployed or underemployed due to the first wave of the COVID-19 crisis. Component 3, implemented from August 2021 to January 2022, co-financed the cash assistance to the 536,271 unemployed in both formal and informal sectors affected by the second wave of COVID-19. Both components have substantially contributed to the GoF efforts in mitigating the impact of the COVID-19 crisis on the income of the unemployed and underemployed in formal and informal sectors.....................................................................................1 3. As one of the key deliverables and a milestone contributing to the achievement of development objective of increasing adaptability of the social protection (SP) system, the Project supported development of an Adaptive Social Protection (ASP) Strategy. The ASP Strategy and Implementation Plan was approved by GoF on April 9, 2024. Other advancements under Component 2 include completion of (i) the assessment of the GoF`s Stronger Together job support and micro-, small- and medium enterprise loan scheme, and development of the operational manual and trainings for its improved delivery and monitoring, and (ii) Village Profiling exercise which is a census of Fiji`s rural areas to collect locality- and household-level vulnerability data. Under Component 4, the JfN2 program has launched round 3 of green public works. Considering significant demand registered in round 3 that expanded the program to the entire country, the target result indicator of 10,000 JfN2 participants is likely to be achieved and exceeded before end of 2024. Round 4 that is to be completed before the Project closing date of July 31, 2025, will further increase the program coverage. After consultations with various government entities, MoF identified the Ministry of Forestry as the appropriate custodian for JfN2. The last year of project implementation will be used to strengthen the Ministry of Forestry`s capacity to carry on the program. .....................................................................................................................1 Over 80 percent of the program participants are women, and over 10 percent are beneficiaries of the national social assistance programs. ............................................................................................................................................1 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2 III. PROPOSED CHANGES ................................................................................................................................................4 IV. DETAILED CHANGE(S) ...............................................................................................................................................5 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. This paper seeks the approval of the Country Director to restructure the Fiji Social Protection COVID-19 Response and System Development Project (Project, P175206), including the original credit IDA-68280 and Additional Financing credit IDA-71060. The proposed Level 2 restructuring is necessitated by the evolution in Project implementation as well as changes in government counterparts` priorities and cooperation and implies (a) reprograming of Component 2 activities and (b) adjustment of the results matrix to reflect the reprogramming. The restructuring has been requested by the Government of Fiji (GoF) through a letter by the Ministry of Finance (MoF), dated August 6, 2024. The revised project implementation plan and budget presented by the MoF`s Project Implementation Unit (PMU) has been found acceptable. No change to the project’s closing date of July 31, 2025 is proposed. 2. To achieve the development objective, the Project has taken an integrated approach by financing (i) the government emergency relief package to offer targeted temporary income support for the unemployed and vulnerable affected by COVID-19; (ii) institutional strengthening to build greater resilience for future shocks; and (iii) implementation of the Jobs for Nature 2.0 (JfN2) program of green public works to support short-term employment in environmental protection or restoration. Components 1 and 3 have been implemented in full, with target indicators achieved or exceeded. Component 1, implemented during April 2020 to July 2021, financed the cash transfers through government top-ups to cover unemployment assistance to about 68,864 members of Fiji National Provident Fund (FNPF) who have become unemployed or underemployed due to the first wave of the COVID-19 crisis. Component 3, implemented from August 2021 to January 2022, co-financed the cash assistance to the 536,271 unemployed in both formal and informal sectors affected by the second wave of COVID-19. Both components have substantially contributed to the GoF efforts in mitigating the impact of the COVID-19 crisis on the income of the unemployed and underemployed in formal and informal sectors. 3. As one of the key deliverables and a milestone contributing to the achievement of development objective of increasing adaptability of the social protection (SP) system, the Project supported development of an Adaptive Social Protection (ASP) Strategy. The ASP Strategy and Implementation Plan was approved by GoF on April 9, 2024. Other advancements under Component 2 include completion of (i) the assessment of the GoF`s Stronger Together job support and micro-, small- and medium enterprise loan scheme, and development of the operational manual and trainings for its improved delivery and monitoring, and (ii) Village Profiling exercise which is a census of Fiji`s rural areas to collect locality- and household-level vulnerability data. Under Component 4, the JfN2 program has launched round 3 of green public works. Considering significant demand registered in round 3 that expanded the program to the entire country, the target result indicator of 10,000 JfN2 participants1 is likely to be achieved and exceeded before end of 2024. Round 4 that is to be completed before the Project closing date of July 31, 2025, will further increase the program coverage. After consultations with various government entities, MoF identified the Ministry of Forestry as the appropriate custodian for JfN2. The last year of project implementation will be used to strengthen the Ministry of Forestry`s capacity to carry on the program. 4. However, limited implementation progress has been made in the Component 2 technical assistance (TA) tasks, which were meant to support strengthening government capacity for SP interventions. Many of them have been significantly delayed for several reasons, including change in GoF priorities (e.g., unemployment insurance feasibility study), difficulties in coordination between the Project implementing agency, namely, MoF and beneficiary agencies (e.g., SP system interoperability, Gender-Based Violence (GBV) management information system (MIS) development tasks), lengthy procurement especially for information systems contracting (e.g., National Employment Center MIS). The Ministry of Women, Children and Social Protection (MWCSP)—the main beneficiary of the TA—has been undergoing an institutional reform and grappling with competing priorities amidst capacity constraints. This affected 1 Over 80 percent of the program participants are women, and over 10 percent are beneficiaries of the national social assistance programs. Page 1 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) their ability to contribute to Project implementation and absorb the TA. Due to the delays, several activities are no longer possible to implement withing the period; therefore, a reprogramming of the financial allocation has become necessary. 5. The Component 2 TA interventions that are no longer relevant or possible to implement as originally planned are proposed to be reprogrammed towards less time-demanding activities and those that progress well. The reprogramming discussed in detail below would necessitate revisions in the Project results. II. DESCRIPTION OF PROPOSED CHANGES 6. With reprogrammed activities, Component 2 will continue to support implementation of the ASP Strategy, thus contributing to the objective of increased efficiency and adaptability of SP system. It will finance activities such as workshops, consultation meetings etc., to help align the operating procedures and set up coordination mechanism. However, MWCSP will not be able to complete establishing of SP data interoperability. They are focused on developing the inhouse information system to harmonize and manage the national social assistance benefit schemes. The information system is being developed through the Australian Department of Foreign Affairs and Trade (DFAT) assistance. The Project was designed to build on that effort and enhance the system with interoperability and some other features such as GBV-sensitive Grievance Redress Mechanism (GRM). Because the system is yet to be developed and the MWCSP lack capacity to manage multiple ICT projects, those downstream investments have no time to be implemented. Furthermore, according to MWCSP, the national communication campaign to improve the understanding of GBV and raise awareness of relevant services is being supported through other means as part of implementation of the National Action Plan to Prevent Violence Against All Women and Girls and thus does not require project financing. The ambition of the National Employment Center (NEC)-related activities that involved at a comprehensive review and re-engineering of its operations and systems had to be revised as the delayed and slow procurement process left no time for implementation of the investments at the original scale. It was agreed with GoF that the project would support the process evaluation of NEC programs and services and provide recommendations for delivery system improvement. Finally, TA for reforms towards a new unemployment benefit scheme will not take place because of lack of FNPF`s interest and cooperation. 7. The reprogrammed resources will finance MWCSP activities with shorter implementation timespan (individual consultants, operating costs, trainings etc.) and further strengthening of JfN2. For instance, the Department of Women has requested Project TA to design a cash benefit scheme for GBV survivors to enhance gender impact of the social protection system. The Department of Social Protection has suggested to hire counsellors to be deployed in the field offices for psychosocial support to SP beneficiaries and staff, and social workers to support operation of SP helpline being set up by the department, with a view to subsequently absorbed these positions into the MWCSP structure. Moreover, considering the momentum gain to date in JfN2, the MoF has proposed to reprogram the funds towards expanding the program beyond the original targets as well as its operational enhancements, impact evaluation and institutionalization within the GoF structures. 8. The reprogramming involves revisions in the Results Framework as proposed in the Result Table below. Absent of progress in activities discussed above, some of the project results are proposed to be dropped. That concerns six Component 2 indicators and one development objective-level result indicator on interoperability. Furthermore, the targets for JfN2-related result indicators are revised upwards to reflect enhanced support for program expansion. Specifically, the target indicator for number of program beneficiaries is increased from 10,000 to 14,000. The target for the share of female participants is increased from 35% to 65%. Finally, the target for the indicator on the number of degraded sites restored and rehabilitated using nature-based solutions is revised from 150 to 200. Page 2 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) 9. The MoF letter has also requested to reallocate funds between two disbursement categories associated with sub- components of Component 2, to better support JfN2 implementation and evaluation. Reprogramming money from sub-component 2.3 (general project implementation support) to subcomponent 2.5 (JfN2 program-specific implementation support) involves reallocation from the original credit to Additional Financing credit which our rules do not allow. However, sub-component 2.3 that envisages financing for overall project implementation support should be able to cater for JfN2 technical and operational assistance needs, including monitoring and evaluation, to complement the sub-component 2.5 allocations as appropriate. Summary of Performance of E&S Risk Compliance 10. The project is rated as having ‘Moderate’ Environmental and Social (E&S) risks. The June 2024 mission found that E&S performance remained satisfactory. The Ministry of Forestry (MoFo) has been nominated as the new technical lead to support JfN2 activities, following discussion from the second meeting of the Project Steering Committee. The Memorandum of Agreement (MoA) has been developed to formalize this arrangement. Following the signing of the MoA, the PMU in consultation with the World Bank will revise the ESCP to reflect the new E&S management structure and staffing arrangement. The PMU has developed the Environmental and Social Code of Practice (ESCOP) training materials including a brochure, video, flipchart and handbook. The handbook is designed for the implementing partners (e.g., MoFo and youth groups, etc.) and the flipchart is for the benefit of communities who have minimal to no connectivity issues. These materials are translated to the iTaukei language and are used by the PMU for consultation purposes to i) increase awareness and understanding of the project by IP's and beneficiaries, and ii) provide a guide to what both parties can and cannot do under the project. The PMU E&S Specialist has provided E&S training to consultants hired under the prject and to communities on the use of the ESCOP. The PMU will provide a training status update in the biannual progress report, reflecting any new trainings undertaken since the last mission. PMU has undertaken several community/stakeholder engagements. However, the details of these consultations remain undocumented. The PMU was requested to update the Stakeholder Engagement Plan (SEP) to reflect all community/stakeholder consultations undertaken thus far. By the end of November 2024, the PMU will submit to the World Bank a draft revised/updated SEP for review, finalization, and disclosure. The project GRM is functioning well. Since the last mission, the GRM log file recorded 17 complaints, 14 Type A complaints mostly related to dissatisfaction or concerns related to benefit distribution, 2 Type B complaints on misuse of funds, and 1 Type B complaint under investigation. The complaints are being handled as per the GRM process set out in the project SEP. No complaints of a sensitive nature, concerning sexual exploitation, abuse or sexual harassment have been reported. However, the mission noted that the grievances related to labor and working conditions should be reported separately as per the Labor Management Plan requirements. Describe any E&S issues and impacts associated with the change in project design. Identify and describe any potential large scale, significant and/or irreversible impacts. Describe any potential indirect and/or long-term impacts due to anticipated future activities in the project areas. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Page 3 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) Describe measures taken by the borrower to address E&S policy issues. Provide an assessment of borrower capacity to plan and implement the measure described. Identify key stakeholders and describe the mechanism for consultation and disclosure on E&S policies, with an emphasis of potentially affected people. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Loan Closing Date Extension No Development Objective No Loan Cancellations No Summary Description No Reallocations No (Operation Abstract) Legal Operational Policies No Financial Management No MFD/PCE No Procurement No Risks No Institutional Arrangement No Legal Covenants No Implementation Schedule No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate Page 4 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 5 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) RESULTS COUNTRY: Fiji Fiji Social Protection COVID-19 Response and System Development Project @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes To mitigate the impact of the COVID-19 crisis on the income of the unemployed and underemployed Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Number of unemployed and 0.00 Mar/2020 68,864.00 07-Jun-2024 68,864.00 07-Jun-2024 60,000.00 Jul/2021 underemployed who received cash transfers with the government top- ups from FNPF (Number) Number of female 0.00 Mar/2020 29,219.00 07-Jun-2024 29,219.00 07-Jun-2024 24,000.00 Jul/2021 unemployed and underemployed who received cash transfers from FNPF (Number) Percentage of beneficiaries in 0.00 Mar/2020 95.20% 07-Jun-2024 95.20% 07-Jun-2024 90.00 Jul/2021 the area affected by TC Harold (Number) Gap in General Account (FJD 32) FJD 0 FJD 0 FJD 0 balances between female and Comments on achieving targets This sub-indicator measures the difference of mean account balances between female and male beneficiaries male beneficiaries (Text) eligible for government top-ups at the time of benefit withdrawal. Number of unemployed in formal and 0.00 Jul/2021 536,271.00 07-Jun-2024 536,271.00 07-Jun-2024 340,671.00 Jul/2022 informal sectors because of COVID-19 crisis who received cash transfers directly paid by the Government of Fiji under the AF (Number) Page 6 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) Share of female beneficiaries 0.00 51.56% 51.56% 50.00 in formal and informal sectors (Percentage) Number of beneficiaries in 0.00 292,064.00 292,064.00 188,630.00 formal sector (Number) Share of female beneficiaries 0.00 45.05 % 45.05 % 44.00 in formal sector (Percentage) Number of beneficiaries in 0.00 244,207.00 244,207.00 152,041.00 informal sector (Number) Share of female beneficiaries 0.00 59.35 % 59.35 % 59.00 in informal sector (Percentage) Revise Number of beneficiaries who 0.00 Jul/2021 5,280.00 07-Jun-2024 5,280.00 07-Jun-2024 14,000.00 Jul/2025 received employment opportunities under the Jobs for Nature 2.0 (Number) Revise Share of female 0.00 81.00 81.00 65.00 (Percentage) To strengthen the social protection delivery system to be efficient and adaptive Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Adaptive Social Protection Strategy No Oct/2020 Yes 07-Jun-2024 Yes 07-Jun-2024 Yes Jul/2024 and action plans developed and adopted (Yes/No) Intermediate Results Indicators by Components Component 1: Cash transfers to the unemployed and underemployed affected by COVID-19 Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Page 7 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) Result Month/Year Result Date Result Date Result Month/Year Share of unemployed and 0.00 Mar/2020 95.00% 07-Jun-2024 95.00% 07-Jun-2024 90.00 Jul/2021 underemployed whose application were processed and approved in five business days (Percentage) Adoption of the standard operating No Jul/2021 No 07-Jun-2024 No 07-Jun-2024 Yes Jul/2025 procedure (SOP) developed for an Comments on achieving targets Work in progress as reported by MWCSP. Ministry has recently hired 2 staff who are working on this. economic inclusion framework (Yes/No) Component 2: Institutional Strengthening Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Specific operational manual for the No Nov/2020 No 07-Jun-2024 No 07-Jun-2024 Yes Jul/2024 Stronger Together Program adopted Comments on achieving targets The operational manual is expected to be finalized by end of June 2024. by the Ministry of Economy (Yes/No) Number of stakeholders who 0.00 Jul/2021 0.00 07-Jun-2024 0.00 07-Jun-2024 1,440.00 Jul/2025 received training throughout the Comments on achieving targets Trainings are yet to start. cycle of Jobs for Nature 2.0 (Number) Share of female 0.00 0.00 0.00 50.00 (Percentage) Component 4: Jobs for Nature 2.0 Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Share of beneficiaries who received 0.00 Jul/2021 10.51 07-Jun-2024 10.51 07-Jun-2024 10.00 Jul/2025 employment opportunities under the Jobs for Nature 2.0 are social welfare beneficiaries (Percentage) Share of female 0.00 9.30 9.30 4.50 (Percentage) Page 8 The World Bank Fiji Social Protection COVID-19 Response and System Development Project (P175206) 0.00 Jul/2021 134 sites 07-Jun-2024 134 sites 07-Jun-2024 200.00 Jul/2025 rehabilitated. No of rehabilitated. No of Revise Number of degraded sites restored sites will be restored sites will be restored and rehabilitated using updated by Sept updated by Sept nature-based solutions (Number) 2024 2024 Comments on achieving targets The PMU will analyze the data from the implementation of the first round of sub-projects. This indicator will be reported in the next ISR. Grievances registered related to 0.00 Jul/2021 85.71 % 07-Jun-2024 85.71 % 07-Jun-2024 80.00 Jul/2025 wage payment to the beneficiaries of Jobs for Nature 2.0 resolved in a timely manner (Percentage) Page 9