The World Bank Mali Community Resilience and Inclusive Services Project (P505025) @#&OPS~Doctype~OPS^blank@pidaprcoverpage#doctemplate Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 26-Sep-2024 | Report No: PIDIA00798 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) @#&OPS~Doctype~OPS^dynamics@pidaprbasicinformation#doctemplate BASIC INFORMATION A. Basic Project Data Project Beneficiary(ies) Region Operation ID Operation Name Mali Community Resilience WESTERN AND CENTRAL Mali P505025 and Inclusive Services AFRICA Project Financing Instrument Estimated Appraisal Date Estimated Approval Date Practice Area (Lead) Investment Project Social Sustainability and 25-Sep-2024 14-Nov-2024 Financing (IPF) Inclusion Borrower(s) Implementing Agency Ministry of Reconciliation, The Republic of Mali Peace and National Cohesion Proposed Development Objective(s) The objective of the Project is to improve access to basic services responsive to community priorities in at-risk areas. Components Provision of essential village infrastructure and services Provision of essential commune infrastructure and services Restoring trust and reconciliation through inclusive planning and facilitation Project management @#&OPS~Doctype~OPS^dynamics@pidprojectfinancing#doctemplate PROJECT FINANCING DATA (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? No Is this project Private Capital Enabling (PCE)? No SUMMARY Total Operation Cost 150.00 Total Financing 150.00 of which IBRD/IDA 150.00 Page 1 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) Financing Gap 0.00 DETAILS World Bank Group Financing International Development Association (IDA) 150.00 IDA Credit 150.00 @#&OPS~Doctype~OPS^dynamics@envsocriskdecision#doctemplate Environmental And Social Risk Classification Substantial Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Despite its abundant natural resources, rich cultural heritage, and young population, Mali faces numerous economic and social challenges related to high poverty levels, political instability, insecurity and conflict. In 2023, Gross Domestic Product (GDP) growth stabilized at 3.5 percent (0.6 percent per capita), below expectations due to lower agricultural output and an electricity crisis. Growth is projected to weaken slightly in 2024. The country’s economic outlook is subject to risks from armed conflict and rising insecurity, increasing financing costs, and climate-related shocks. Over the last three decades, Mali’s economy has experienced little structural change. Agriculture and low-productivity services dominate the economy; manufacturing remains limited and concentrated in agro-industries and cotton ginning. Exports are dominated by gold and cotton and vulnerable to commodity-price and climatic shocks.1 2. At the national level, the incidence of poverty in Mali increased by 3.4 percentage points from 42.1 percent in 2018 to 45.5 percent in 2022 due to multiple shocks related to prices, the COVID pandemic, climate, and conflict . This increase represents an additional 1.4 million people living in poverty over this period. Similar upward trends are evident in the poverty gap and poverty severity, indicating a worsening condition for the poorest segments of 1 Macro Poverty Outlook for Mali : April 2024 (English). Macro Poverty Outlook (MPO) Washington, D.C. : World Bank Group. Page 2 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) the population. While there are geographical disparities, regional analyses indicate that the incidence of poverty has risen in both rural and urban areas. 2 3. Fragility, conflict, and violence have escalated since 2012, with a nearly four-fold increase in fatalities and a six- fold surge in violent events. Mali has been plagued by armed insurgencies and terrorist activities, particularly in the north and more recently, in the center of the country. 3 Despite a 12 percent decrease in fatalities in 2023, conflicts intensified along with climatic shocks, leading to a severe humanitarian and food insecurity crisis affecting 7.1 million people in 2024.4 Conflict-affected areas suffer from access constraints for residents and humanitarians, and forced displacement, exacerbating vulnerability. By December 2023, the number of internally displaced people (IDPs) was estimated at 330,713. 5 In addition to insecurity, identified fragility risks include the perception of social injustice defined as inequality, marginalization, low state presence, and limited public service provision, in regions deeply affected by violence incidence and the rise of extremism groups. 4. Mali is extremely vulnerable to climate change and the country is already facing acute climate-related challenges from higher temperatures and more frequent extreme weather events. Climate-related hazards in Mali include droughts, floods, and crop pests. These hazards are a natural occurrence in Mali, which pose serious constraints on development and food security, and their intensity and frequency are likely to increase under a changing climate. Climatic changes are already a significant threat to the country’s development and food security of its inhabitants, due to erratic rainfall, increased crop pests, rainfall shortages, and breaks during critical growing periods, as well as desertification over the last 50 years. 6 Mali has limited capacity to deal with the impacts of climate change, ranking 176th out of 185 countries in the Notre Dame Global Adaptation Initiative Index for climate vulnerability in 2021.7 B. Sectoral and Institutional Context 5. Significant gaps in governance and service delivery in Mali have eroded citizens’ confidence towards institutions over the years. Communities still have significant expectations of the Government of Mali in terms of basic services (including health, education, infrastructure, and security). With nearly half the population under the age of 14 and the country’s total population expected to double by 2035, there are high expectations for a better future and a future whereby young Malians, both men and women have an opportunity to shape their future and have their concerns heard. 6. Access to basic services remains low and unevenly distributed, with areas affected by conflict especially impacted. Mali is in the bottom decile of the Human Capital Index (2023), due to lower-than-average survival to age 5, expected years of schooling and learning-adjusted years of schooling, and learning.8 While multidimensional poverty declined by about 10 percentage points between 2014 and 2018, and access to some basic infrastructure services improved 2 World Bank (2024), Poverty Update – Trends in poverty, inequality, and shared prosperity – Mali. 3 World Bank. 2022. Mali Economic Update - April 2022. Resilience in Uncertain Times: Renewing the Social Contract. World Bank. 4 OCHA Mali Country Site 2024 Humanitarian Overview Download - https://www.unocha.org/mali 5 UNHCR Mali Country Data Site reported as of June 1, 2024 (https://data.unhcr.org/en/country/mli) 6 World Bank, Climate Change Knowledge Portal, Natural Hazard Statistics: Mali, 2024; Tucker, Luc. Climate Vulnerabilities and Food Insecurity in Mali. IMF Selected Issues Paper (SIP/2023/054). Washington, D.C.: International Monetary Fund. 7 Notre Dame Global Adaptation Initiative, Country Rankings (https://gain.nd.edu/our-work/country-index/rankings/) 8https://thedocs.worldbank.org/en/doc/64e578cbeaa522631f08f0cafba8960e-0140062023/related/HCI-AM23-MLI.pdf Page 3 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) during this period, the COVID-19 pandemic may have erased gains in poverty reduction over the past decade.9 A significant portion of Mali remains outside the reach of state services. In 2018, 38 percent of rural households did not have access to an improved drinking water supply; 61 percent had limited installations to wash hands; and 62 percent of households did not have access to electricity. In 2017, only 22 percent of rural populations were within two kilometers of an all-season road. Growing insecurity has meant that in February 2024, 1,917 schools (20 percent of those monitored) affecting 574,100 students and 13 health centers affecting 91,572 users in a subset of the country (March 2024) were closed. Mali’s education system faces low enrollment, poor outcomes, a lack of teachers at the basic and secondary levels, and a growing school-age population. In terms of health outcomes, Mali suffers from persistently high maternal and child mortality rates, high adolescent fertility rates, low basic child immunization coverage, malnutrition and a relatively high burden of infectious diseases. A critical shortage of health workers has left many regions without qualified medical care. 7. To address some of the aforementioned challenges, the Government plans to embark on major efforts to improve services in newly stabilized areas in the North and prevent further destabilization of vulnerable areas in the South. In November 2023, the Malian army regained control of Kidal, a town in the north that has been a rebel stronghold since 2012. The government’s capture of this area and others is considered pivotal and provides a welcome opening to allow essential services to be delivered. Terrorist groups have carried out nearly weekly attacks in the center of the country (former Ségou and Mopti regions) and further south. While these areas remain under State control, improving essential services to the population including in rural areas is crucial to preventing further destabilization. In January 2024, transitional president Assimi Goïta created an inter-Malian dialogue body to achieve peace, after formalizing the end of the Agreement for Peace and Reconciliation in Mali. The Government is hoping to use this period of relative stability and a new round of peace dialogues to deliver a “peace dividend� and critical services to communities in these vulnerable areas and encourage the return of the displaced population. 8. The Ministry of Reconciliation, Peace and National Cohesion (MRPNC) will be the lead implementing agency for this Project, working in close coordination with an inter-ministerial committee. As the Project is closely linked with the Government’s National Reconciliation Strategy, involves delivering to newly stabilized and at-risk areas of the country, and requires a multi-sectoral approach to service delivery, the MRPNC was appointed by the Council of Ministers to lead this Project. C. Proposed Development Objective(s) Development Objective(s) (From PAD) 9. The Government’s aspirations for this project are to give communities a say and a central role in building a “new Mali�. To realize the government’s vision to build national reconciliation, peace and stability in the country, the Project will facilitate a system to address the root causes of conflict and adopt an inclusive and participatory approach to deliver essential public services. This community-led approach will not only include local communities but most importantly will strengthen the role of local institutions, civil society organizations and stakeholders involved and affected by the decision-making process. 10. The objective of the Project is to improve access to basic services responsive to community priorities in at-risk areas. The Government aims to deliver a package of critical services requested by communities in two types of geographic areas: (i) communes affected by the conflict that have recently come under control of the State in northern Mali (Kidal, 9 SCD, 2022 Page 4 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) Tombouctou, Taoudenni); and (ii) fragile communes where improved services will contribute to prevent an escalation of tensions in the south (Nara, Nioro, Kayes). The Government is particularly interested in assisting areas in the north and southern regions where a large part of the population has fled due to violence and conflict and where it is expected that improved services and economic opportunities will contribute to the gradual return of the displaced. It is estimated that the project will cover approximately 850 villages and 57 communes in these six regions of the country. The geographical targeting within these regions will remain flexible given the uncertainty of the field security situation. Key Results 11. The key results of this Project will be: • Number of people with access to infrastructure and social services (disaggregated by gender and youth) • Percentage of people in project villages reporting that selected subprojects reflect their needs (disaggregated by gender and youth) D. Project Description 12. The project will be composed of four components: a. Component 1. Provision of essential village infrastructure and services (US$102 million, 68 percent). This component will finance socio-economic infrastructure and agricultural livelihood activities at the community level. This would involve for example, construction and rehabilitation of productive small-scale infrastructure, such as tertiary access roads; improved water access and sanitation; small-scale irrigation; off-grid electrification; education (classroom extension and rehabilitation) and vocational training; and health center extension and rehabilitation activities. Agricultural livelihood activities would include the development of market gardens; agricultural processing equipment, supplies, and storage; market infrastructure; and livestock and fish farming activities. Village subprojects would cost an average of US$60,00 and villagers will choose from a positive menu of activities, receiving two cycles of assistance during the life of the project. Investment planning and implementation of these subprojects would focus on the active and inclusive participation of communities to strengthen social cohesion and ensure a better match between the investments financed and the real needs of the population. All infrastructure will be constructed and maintained with climate and disaster resilience in mind. b. Component 2. Provision of essential commune infrastructure and services ($18 million, 12 percent). This component will finance more substantial investments at the municipal level, with the criterion that they benefit several communities. Investment selection will leverage existing local commune development plans (Plans de Développement Social, Economique et Culturel – PDSEC) where available, and support their updating/preparation where they are not, thereby supporting local government and decentralization processes. Community level priorities will be integrated into the commune level plans. Investments at the communal level could include: the rehabilitation of transport connectivity, water and sanitation infrastructure, electrification, markets, health and education centers as well as initiatives to improve natural resource management and resilience to climate change. Support will be for a “closed menu� and a list of investments not eligible under this component will be included in the project operation manual. On average, municipalities will receive one allocation of approximately US$ 225,000. The project will assist local government with activity planning and management to optimize overall impacts on access to services and socio-economic outcomes at the commune level. Page 5 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) c. Component 3. Restoring trust and reconciliation through inclusive planning and facilitation ($15 million, 10 percent) This component will finance social and technical facilitation. Social and technical (engineers) facilitators will be hired, trained and supervised by the project at the regional level to work with communities for the planning, design and management of subprojects under Components 1 and 2. These facilitators will also ensure that the most vulnerable groups, especially women, youth, internally displaced persons and persons with disabilities participate fully in the planning and decision-making for subprojects. Village Development Committees (VDCs) composed of elected representatives of the community will help to execute the decisions of the General Assembly and manage the subprojects. This inclusive approach is essential if the objective of the Malian state, through this project, is to restore trust and revitalize the social contract with citizens. For commune-level investments planned under Component 2, facilitators will work with mayors, municipal councils and regional governments to ensure an equitable distribution of development benefits thus preventing territorial and inter-group exclusion. Technical advice provided as part of this component will also help strengthen the commune-level planning exercises to improve technical quality and climate-informed decision-making, and ensure active participation of the community in the identification of their needs and the selection of investments. Over the course of the project, the facilitators will work to integrate village planning as inputs directly into the production and updating of the PDSEC. d. Component 4. Project Management ($15 million, 10 percent). This component will finance the operational costs of the project including staff, technical assistance, monitoring and evaluations, the management information system, training, travel, fiduciary and environmental and social risk management, equipment, and other management costs. 13. Project beneficiaries will be community members in the targeted at-risk six regions, 57 communes and 850 villages. As described above, the project includes dedicated measures to facilitate the inclusion of vulnerable groups including poor women, youth, internally displaced persons and persons with disabilities. An estimated 1.84 million Malians living in at-risk areas will have access to improved services. @#&OPS~Doctype~OPS^dynamics@pidaprlegalpolicy#doctemplate Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 Yes Projects in Disputed Area OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts Page 6 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) ES risk is rated as Substantial at this stage, and will be confirmed by appraisal. The activities planned under components 1 and 2 of the project are likely to have limited to moderate impacts on the environment. These impacts are essentially: (i) risks of deforestation, fragmentation of natural habitats, soil erosion and temporary disturbance of local flora and fauna during road construction/rehabilitation work; (ii) dust and gas emissions from construction equipment and the risk of accidental fuel and lubricant spills may pollute the air, water and soil; and (iii) environmental impacts related to construction materials, waste management and site disturbance. The project is intervening in a highly complex social context in remote rural areas, which remain insecure and vulnerable. Key social risks relate to social cohesion and potential social conflicts: the project will intervene in areas where state has not been present for a number of years, basic services have not been available, and hence expectations will run high and will need to be carefully managed. Exclusion from project benefits may lead to social tensions. Functionality, legitimacy and capacity of the local organizations will also need to be assessed to ensure they can manage their role in implementing the activities E. Implementation Page 7 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) Institutional and Implementation Arrangements National Level: 14. The MRPNC is the appointed implementing ministry for CRISP. The Ministry will chair an inter-ministerial Steering Committee composed of representatives from twelve different ministries and relevant agencies. The Steering Committee will provide the overall strategic direction for the project, review and approve the annual work plan and budget, approve sub-projects following their selection through annual investment cycles to ensure alignment between local priorities and national and sector plans, and meet periodically to review progress. 15. The Project Implementation Unit for CRISP will be housed with the General Secretariat of the MRPNC. The General Secretariat will ensure close synergies with other structures in the Ministry, notably the MARN which, together with the Ministry of Health and Social Development (MSDS), will support the project's facilitation arrangements. The MARN is a temporary mission with a mandate to promote national reconciliation until 2028 but a decree is under preparation, expected by January 2025, to make it a permanent national structure. The Project Implementation Unit will be composed of key staff including: Project Coordinator, Deputy Coordinator, and core staff specializing in: financial management; procurement; environment and social (ES); grievance redress, monitoring and evaluation (M&E); management information systems; security; and gender. Regional Level: 16. The PIU will establish regional antennas in each of the target six regions to support project implementation. The regional offices will be responsible for planning, implementation, monitoring and oversight of the project in their regions. The regional staff will include a Regional Coordinator and staff specializing in: financial management, procurement, ES, CDD, M&E, and security focal person. Commune and Village levels: 17. Social and technical facilitators will support communities to identify, prioritize, prepare, implement, and monitor their subprojects. An average of approximately ten villages will be assigned to each social and technical facilitator with some variation depending upon distances, security conditions, and local languages. They will help establish Village/Fraction/Neighborhood Development Committees (VDCs) or CDV/CDQ/CDF, Comite de Développement de Village/Fraction/Quartier) where they do not exist or strengthen existing ones through the delivery of capacity- building activities to effectively implement subprojects and promote inclusion. The establishment of CDVs/CDFs/CDQs is anchored in the law No. 04-038 of August 5, 2004, as amended, relating to Associations and a recent Inter-ministerial Order No. 2024-2759 signed by the MEF, MRPNC, MATD, MHSD of August 15, 2024, establishing the procedures for managing grants awarded to village/fraction/neighborhood development committees. There will also be one commune facilitator who will oversee the work of the social and technical facilitators and coordinate the work at the commune level to ensure that there is good coordination and communications with commune authorities, sectoral ministry workplans, updating of PDSECs, and to support commune-led investments under Component 2. The project will work closely with deconcentrated technical services to support the implementation of local sub-projects. Page 8 The World Bank Mali Community Resilience and Inclusive Services Project (P505025) @#&OPS~Doctype~OPS^dynamics@contactpoint#doctemplate CONTACT POINT World Bank Susan Wong Lead Social Development Specialist Borrower/Client/Recipient The Republic of Mali Implementing Agencies Ministry of Reconciliation, Peace and National Cohesion Ismael Wague Minister gouv.ml@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 @#&OPS~Doctype~OPS^dynamics@approval#doctemplate APPROVAL Task Team Leader(s): Susan Wong Approved By Practice Manager/Manager: Pia Peeters 09-Sep-2024 Country Director: Robert Bou Jaoude 26-Sep-2024 Page 9