The World Bank COVID-19 Emergency Income Support Project (P174014) REPORT NO.: RES47642 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF COVID-19 EMERGENCY INCOME SUPPORT PROJECT APPROVED ON JUNE 9, 2020 TO REPUBLIC OF MALDIVES SOCIAL PROTECTION & JOBS SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Faris H. Hadad-Zervos Regional Director: Lynne D. Sherburne-Benz Practice Manager/Manager: Stefano Paternostro Task Team Leader(s): Thomas Walker The World Bank COVID-19 Emergency Income Support Project (P174014) ABBREVIATIONS AND ACRONYMS AF Additional Financing BCC Maldives Business Center Corporation CERC Contingent Emergency Response Component COVID-19 Coronavirus Disease 2019 E&S Environment and Social Safeguards ESCP Environmental and Social Commitment Plan ESMF Environmental and Social Management Framework FM Financial Management GBV Gender Based Violence GRM Grievance Redress Mechanism ICT Information and Communication Technology IOC Incremental Operating Costs IPF Investment Project Financing ISA Income Support Allowance IUFR Interim Unaudited Financial Report LMP Labor Management Policy M&E Monitoring and Evaluation MBS Maldives Bureau of Statistics MEERY Maldives Enhancing Employability and Resilience of Youth Project MoED Ministry of Economic Development MOU Memorandum of Understanding MVR Maldive Rufiyya NGO Non-Government Organization NSPA National Social Protection Agency PDO Project Development Objective PMU Project Management Unit POM Project Operations Manual SEA/SH Sexual Exploitation and Abuse / Sexual Harassment SEP Stakeholder Engagement Plan SOE State-Owned Enterprise SPIS Social Protection Information System STEP Systematic Tracking of Exchanges in Procurement UNDP United Nations Development Programme USD US Dollars The World Bank COVID-19 Emergency Income Support Project (P174014) BASIC DATA Product Information Project ID Financing Instrument P174014 Investment Project Financing Environmental and Social Risk Classification (ESRC) Moderate Approval Date Current Closing Date 09-Jun-2020 30-Jun-2022 Organizations Borrower Responsible Agency Republic of Maldives Ministry of Economic Development Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to mitigate the economic impact of the COVID-19 crisis on workers and their families, and to increase the capacity of social protection programs to respond to future emergencies. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D7660 25-Jan-2021 17-Feb-2021 11-Mar-2021 30-Jun-2022 21.60 14.87 6.76 IDA-66930 09-Jun-2020 13-Jun-2020 26-Jun-2020 30-Jun-2022 6.40 6.60 .14 IDA-D6650 09-Jun-2020 13-Jun-2020 26-Jun-2020 30-Jun-2022 6.40 6.65 .03 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank COVID-19 Emergency Income Support Project (P174014) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. This restructuring paper proposes to repurpose funds remaining from the allocation for Income Support Allowance payments to finance targeted employability programs for 2,800 Maldivians displaced by the COVID-19 pandemic and its economic consequences. Three program streams will be offered: a short vocational training program; an apprenticeship program; and a self-employment and microenterprise grant program. It is also proposed to extend the closing date of the project from June 30, 2022 to December 31, 2022, in order to give sufficient time for these programs to be conducted. 2. During its first year of implementation, the Project made highly satisfactory progress towards its Project Development Objective (PDO): to mitigate the economic impact of the COVID-19 crisis on workers and their families, and to increase the capacity of social protection programs to respond to future emergencies. The project is on track to meet or exceed its original PDO targets, as well as the revised targets established when the project was scaled up through Additional Financing (AF) in February 2021. 3. Component 1 financed a program of temporary income support for individuals who have lost a job since the onset of the COVID-19 pandemic or suffered a loss of income as a result of the pandemic. The component activities included provision of a COVID-19 Support Allowance; data collection and storage in the Social Protection Information System (SPIS) to facilitate follow-up and future support; and a program of media outreach to inform the public of the program and eligibility conditions. Since April 2020, the Project has disbursed approximately MVR 421.3 million (USD 27.3 million) in financial support to eligible workers through the Income Support Allowance (ISA) program. Overall, 22,940 individuals received support between April and December 2020, of which 8,842 were women and 6,156 were female self-employed workers (Figure 1). The ISA program concluded with the December 2020 payments (now fully disbursed) and the government elected to discontinue the program given the improving health and economic situation in 2021. 4. The Project Management Unit (PMU) has been proactive in conducting outreach and engaging with beneficiaries. Efforts were directed especially at including women and informal self-employed workers in the program, and streamlining the enrollment process for those without internet access or documentation of prior income. Three beneficiary feedback surveys have been conducted during the past 12 months, using text messaging to reach all beneficiaries in spite of the travel restrictions. Feedback from the surveys has been largely positive, with 92 percent of respondents saying they were not dissatisfied with the program. The World Bank COVID-19 Emergency Income Support Project (P174014) Figure 1. Number of ISA beneficiaries (by month, 2020) 16 14 12 Beneficiaries ('000) 10 Total beneficiaries 8 Female beneficiaries 6 Self-employed female beneficiaries 4 2 0 Apr May Jun Jul Aug Sep Oct Nov Dec 5. Work on Component 2 is underway, with the recruitment of consultants for all four sub-tasks. These are: (a) Strengthening the National Social Protection Agency’s (NSPA’s) Delivery and Targeting Systems: A local consultant has been hired to develop a beneficiary portal for the NSPA’s social registry, to allow online applications and updates to be submitted by local council officials. This would replace the current method of application, based on mailing a written form that needs to be manually entered by NSPA officials at headquarters. It will also facilitate the regular updating of NSPA registry data, which at present is done only every few years. (b) Developing a Fiscally Sustainable Unemployment Insurance Program: An international consultant is preparing an assessment of options for a new unemployment insurance program, that will provide fiscally sustainable job search assistance, training and income support for a fixed period to the unemployed. The scheme will be self-financing, based on contributions from employers and workers. The scheme will be designed in a way that incentivizes participation by informal sector workers, who are currently uncovered by social insurance (both for unemployment or retirement). (c) Improving Retirement Pension Programs: An international consultant is preparing recommendations on how to address various issues with the existing Maldives Retirement Pension Scheme, including low contribution rates, difficulties with compliance monitoring, coverage and financing management. In parallel, the World Bank is financing additional technical assistance to the Maldives Pension Administration Office to build its capacity and improve its systems. (d) Developing a National Social Protection Framework: An international consultant is conducting an assessment of the existing social protection system, and drafting a new policy framework for the sector. This draft will be shared widely among stakeholders and consultations held to refine and finalize the document. These tasks are all anticipated to be completed by early 2022, ahead of the planned project closing date. They have been conducted thus far with strong engagement from all relevant ministries, and the World Bank team has assessed the intermediate outputs as being of a high standard. 6. Implementation progress has been highly satisfactory. The PMU managed to establish and conduct the ISA program under difficult working conditions, including frequent office closures as COVID-19 cases in Male surged. The Project team made continued improvements to the system in order to boost application processing capacity, cross-check applications with other databases, and conduct real-time tracking and reporting. A forensic audit conducted by the Auditor General’s Office at the request of the People’s Majlis commended the program on its control systems. At the request of the World Bank team, the The World Bank COVID-19 Emergency Income Support Project (P174014) government made a particular effort to ensure female workers and self-employed workers knew about and could access the ISA program. This included engagement of employer and self-employed associations. 7. Financial Management (FM) risk is assessed as ‘Substantial’. FM capacity needs significant strengthening, especially given the new and complex activities being added to the restructured project. In the parent project, there have been delays in submission of financial reports, issues in the accuracy of the reports, delays in the audit process, submission of audit reports and delays in internal audit process. Therefore, FM is rated as ‘Moderately Satisfactory’ at this stage. Going forward it has been agreed that all of these weaknesses will need to be addressed by staffing the PMU with suitably experienced, qualified and dedicated full time FM experts. Furthermore, PMU needs to continuously ensure that only eligible expenditures are documented under the project. The PMU would continue to be the only spending agency where World Bank funds will be managed, and the sole responsible entity for FM. Currently there are no overdue audits & ineligible expenditures under the project. 8. Procurement capacity was weak in the initial stages of implementation. Consequently, delays were observed in processing the procurement plan and the first withdrawal application. However, this has been addressed with the Bank support. The updated procurement plan is available on STEP. Accordingly, there are 2 contracts completed and 4 have been signed. 9. Safeguards: The project performance in terms of E&S compliance has been rated as 'Satisfactory.' At the time of the last mission in March 2021, the staffing at the PMU in terms of assignment of E&S specialists, including focal persons responsible for consultations, communications and awareness, GRM and labor management, has been completed. The GRM for the project has been functioning well with 45,728 grievances received so far of which 45,698 had been resolved. All of the cases had been addressed within a two-week period. In terms of the nature of grievances, 65 percent of the grievances were related to enquires requesting guidance on the application process and the status of the applications submitted, and the remainder were related to delays in payments or expressing dissatisfaction in the application process including the amounts received. The beneficiary satisfaction survey which was completed also provided useful findings to understand areas to improve the project design. Accordingly, the project took measures to reduce the processing time for applications by simplifying processes and improving the time taken for depositing & communicating with the applicants etc. Island Councils reached out to vulnerable groups to support in the application process and business associations reached out to encourage women in self- employment to apply for ISA. Given these additional measures taken, application approval rate increased from 66 percent in phase 1 to 93 percent in phase 2 and the percentage of female applicants also increased from 23 percent in phase 1 to 45 percent in phase 3. Furthermore, campaigns and awareness raising was done through social and traditional media channels, and over 100 rounds of consultations were held with local government authorities and island councils, media, and civil society groups to disseminate information about the ISA program including the application process. Going forward, areas the project could further strengthen include ensuring that beneficiary satisfaction/feedback surveys analyze the findings by gender, ensuring that adequate consultations are carried out during the design of the new unemployment insurance program and ensuring that all key requirements under the LMP is effectively implemented including the Labor GRM. B. Rationale for Restructuring 10. The AF allocated to the program to cover the September to December payments exceeded the amount used by approximately $8.2 million, leaving these resources available for additional project activities. On May 25 and June 6, 2021, the government submitted requests to the World Bank to restructure the Project to allow these funds to be used for more targeted support to the long-term unemployed, aimed at reskilling and re-employment. These proposals have been considered and developed by the PMU in close collaboration with the World Bank team. Considering the need for 12 months to carry out these activities, on September 30, 2021 the government subsequently also requested a six-month extension of the project closing date to December 31, 2022. The World Bank COVID-19 Emergency Income Support Project (P174014) 11. The proposed use of remaining funds is to support wage and self-employed workers to enhance their skills and find more productive employment in the post-COVID economy. This is consistent with the original PDO, because the new program will assist the remaining unemployed ISA beneficiaries to fully recover from the economic shock of the pandemic, and will pilot a new productive inclusion approach that the government is considering to incorporate into the Unemployment Insurance program being developed under Subcomponent 2(c) of the Project. The restructured component will include funding for data collection and an impact evaluation of the productive inclusion interventions, which will inform the design of the Unemployment Insurance program. 12. The choice to discontinue the unconditional cash transfers and make them conditional on participation in skills training is explained by (i) the reduced funds remaining, which alone would cover only 2 months of further income support for the original caseload; (ii) the improving economic situation, with reopening borders, high vaccination rates and returning tourists; and (iii) the desire to upskill the workforce to support a pivot in the government’s employment policy.1 13. Initiatives to improve the quality and availability of skills training services are already being supported by the World Bank under the Maldives Enhancing Employability and Resilience of Youth (MEERY) project. Recognizing this, the team has consulted closely with the MEERY project team and PMU, to ensure that the proposed activities under this project complement rather than duplicate the efforts under MEERY. The clear delineation reached is that the proposed activities under the restructuring will be limited to the ISA program acting as a buyer of skills training services, for which it will rely on the MEERY project PMU to advise on minimum standards, develop curricula, and expand the set of qualified training providers and course options in the Maldives. II. DESCRIPTION OF PROPOSED CHANGES C. Proposed Changes 14. To put the remaining resources to the maximum possible use, it is proposed to modify Component 1 to read as follows: Component 1. Temporary assistance to workers affected by the COVID-19 pandemic (US$33.6 million). (a) COVID-19 Income Support Allowance.2 The ISA program will provide temporary income support to individuals who have lost a job since the onset of the COVID-19 pandemic or suffered a loss of income as a result of the pandemic. This will include data collection and storage in NSPA’s Social Protection Information System (SPIS) to facilitate follow-up and future support. The support will be a top-up of any existing income to a maximum of MVR 5,000 per month. This assistance would be offered to anyone applying through the JobCenter (online or in person at local island council offices) and demonstrating that they have either lost a job since the onset of the crisis or are suffering a total loss of income as a result of the crisis. Documentation to substantiate eligibility would be required as part of the application. Anyone requiring assistance in preparing the application or receiving funds will be provided support by the NSPA through their partners in the local island councils. Applications will be reviewed individually by the MoED team and assessed against a set of transparent criteria, and the final list of beneficiaries will be sent to the NSPA for payment. 1 Specifically, the government intends post-COVID to encourage various sectors (such as tourism, health and accounting) to employ more Maldivian workers and less foreign workers. Additionally, the government seeks to improve the earnings and savings capacity of informal self-employed workers, to bolster their livelihoods and reduce the future fiscal burden of the social pension program. 2 This is the original component, included here for completeness. Subcomponents 1(b)-1(d) comprise the new activities. The World Bank COVID-19 Emergency Income Support Project (P174014) (b) Upskilling of jobseekers in priority trades. Certificate-level training courses for 1,200 unemployed Maldivians will be provided through accredited Maldivian training institutes.3 The courses to be offered are in accounting, information technology and tourism. The subject of training will be decided by the beneficiary upon submission of an expression of interest, and selection will be done contingent on satisfaction of prior learning requirements (if any). Oversubscription will be handled through random selection, with a target of 33 percent female beneficiaries. The cost of the training will be paid directly to the training provider by the Project. A stipend of MVR 5,000 per month will be paid to trainees for the duration of their course, conditional on maintaining at least 80% attendance in class and passing all required examinations. An additional transport allowance will be paid to beneficiaries needing to travel to attend training. (c) Apprenticeship program. The Project will finance apprenticeships for 400 unemployed Maldivians in Maldivian firms and SOEs in priority sectors. The participating firms have already been approached by the PMU and confirmed their interest in participating. The apprentices will be selected competitively from the ISA beneficiaries expressing interest in the program, and employed in the firm for a period of 6 months. During this time, they will benefit from on-the-job training at the firm. An allowance of MVR 7,000 per month will be paid by the Project directly to the beneficiaries conditional on satisfactory attendance at work. An additional transport allowance will be paid to beneficiaries needing to travel to attend the apprenticeship. (d) Entrepreneurship program. This subcomponent will finance business skills training and capital improvement grants to 1,200 informal self-employed workers impacted by the COVID-19 pandemic. Again, the project will set a target of 33 percent female participants. The workers will attend a 10-day business skills clinic conducted by the Maldives Business Center Corporation (BCC), which will include modules on business planning and proposal writing, financial literacy, marketing and coaching. Upon successful completion of the clinic and presentation of a business plan, beneficiaries will receive a business development grant of MVR 60,000. The subcomponent will finance ongoing mentoring to the beneficiaries for the duration of the Project. Component 2. Increase the capacity of social protection programs to respond to future emergencies ($0.8 million). This component remains unchanged. Component 3. Contingent Emergency Response Component (CERC) (US$0 million). This component remains unchanged. In the event of an eligible crisis or emergency, the project will contribute to providing immediate and effective response to this crisis or emergency. The allocation to this component is to minimize time spent on a reallocation of funds from programmed activities. 15. Implementation Arrangements. More detailed proposals outlining the implementation arrangements are presented in Annex 1, and the full program details will be included in an amendment to the Project Operations Manual (POM). This will be revised and formally adopted by the Minister of Economic Development prior to commencement of subcomponents 1(b), 1(c) and 1(d). The budget for incremental operating costs has been increased by approximately US$300,000 to cover the additional costs of staffing for the new activities over the remaining 12-month period. The details are provided in Tables A1.1 and A1.2. 16. As far as possible, implementation of subcomponents 1(b), 1(c) and 1(d) will follow the procedures established for subcomponent 1(a). Eligible beneficiaries will be required to be enrolled in the JobCenter platform, and priority will be given to those who were beneficiaries of the ISA program during 2020. All grants, stipends and apprenticeship wages will be paid by the project directly to the beneficiaries through the same payment mechanism used by the ISA program and described in the PAD. Under this process, the MoED provides a list of beneficiaries and payment amounts to the NSPA, which makes the payments directly into the beneficiary’s nominated bank account. A tripartite MOU between MoED, NSPA and the Ministry of Finance written for the ISA program will be amended to cover this arrangement. The main change to the funds flow is that the eligibility criteria are now dependent on participation in and/or completion of training, for which the training providers 3Prospective training providers will be required to meet minimum criteria established by the Project in coordination with the MEERY Project. Tentative criteria are set out in Annex 1. Continuation of accreditation will be subject to the provider meeting minimum standards and results targets. The World Bank COVID-19 Emergency Income Support Project (P174014) and employers will be responsible for reporting monthly. Random, unannounced spot checks of attendance will be conducted by the Project, and payments to non-compliant beneficiaries will be suspended. 17. The cost of training will be paid by the Project to the respective providers as a direct (non-procurable) payment. Training providers have been selected by the Project based on provision of relevant and certified training courses, as well as available capacity to accommodate the ISA program beneficiaries. As part of their application, prospective beneficiaries will select their preferred stream (skills training, apprenticeship or self-employment) and for the first two of these categories will express a preference for a particular skill or occupation. Upon acceptance they will be required to enroll in the respective skills training course and provided with a voucher for the training course costs, which will be settled directly between the Project and the training provider. The training provider or apprenticeship sponsor will be required to report regularly on student attendance and progress, through an online portal in the Job Center. 18. Extension of Project Closing Date. Since the available places in the training programs are not sufficient to accommodate all trainees concurrently, the training program will be conducted in two waves. It is proposed to extend the Project closing date to December 31, 2022 to ensure the activities can be completed successfully. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Legal Covenants ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Components and Cost ✔ Cancellations Proposed ✔ Overall Risk Rating ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ The World Bank COVID-19 Emergency Income Support Project (P174014) Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-66930 Effective 30-Jun-2022 30-Jun-2022 30-Oct-2022 IDA-D6650 Effective 30-Jun-2022 30-Jun-2022 30-Oct-2022 IDA-D7660 Effective 30-Jun-2022 31-Dec-2022 30-Apr-2023 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-D7660-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: COVID-19 Support Allowances under Part 1(a) 15,200,000.00 8,656,198.18 9,430,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Emerg exp CERC 0.00 0.00 0.00 100.00 100.00 Current Expenditure Category: Stipends (including transport allowances) under iLap Category Sequence No: 3(I) Part 1(b) 0.00 0.00 782,520.00 100 The World Bank COVID-19 Emergency Income Support Project (P174014) Current Expenditure Category: Apprenticeship allowances (including transport iLap Category Sequence No: 3(II) allowances) under Part 1(c) 0.00 0.00 773,310.00 100 iLap Category Sequence No: 3(III) Current Expenditure Category: Business development grants under Part 1(d) 0.00 0.00 3,314,190.00 100 Current Expenditure Category: Goods, non-consulting services, and consulting iLap Category Sequence No: 4 services, Training and Workshops and IOCs for Part 1 and 2 0.00 0.00 899,980.00 100 Total 15,200,000.00 8,656,198.18 15,200,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2020 200,000.00 200,000.00 2021 33,600,000.00 27,600,000.00 2022 600,000.00 6,600,000.00 2023 0.00 0.00 2024 0.00 0.00 OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Section I.A.2.(a): The Recipient shall establish, no later than one (1) month after the Effective Date, and IDA-66930 thereafter maintain, throughout the implementation of Complied with No Change the Project, a Steering Committee, with membership, functions and terms of reference satisfactory to the The World Bank COVID-19 Emergency Income Support Project (P174014) Association, as set forth in the Project Operations Manual. Section I.B.(a): The Recipient shall: (a) no later than one (1) month after the Effective Date, adopt and thereafter throughout Project implementation maintain a Project Operations Manual, in form and substance acceptable to the Association; (b) carry out the Project in accordance with the Project Operations Manual; in the event of any IDA-66930 Complied with Revised inconsistency between the Project Operations Manual and this Agreement, the provisions of this Agreement shall prevail; and (c) not amend, revise or waive, nor allow to be amended, revised or waived, any provision of the Project Operations Manual, whether in whole or in part, without the prior written approval of the Association. Section I.B.(a): The Recipient shall: (a) no later than one (1) month after the Effective Date, revise and thereafter throughout Project implementation maintain a Project Proposed Expected soon Operations Manual, in form and substance acceptable to the Association; [... covenant to continue henceforth as previously stated] Section IV.A: No later than one (1) month after the Effective Date, MoED, MoF and NSPA shall sign a Memorandum of Understanding (MoU) to formalize IDA-66930 Complied with Revised their respective Project co-implementation responsibilities in respect of the COVID-19 Support Allowances under Part 1 of the Project. Section IV.A: No later than one (1) month after the Effective Date, MoED, MoF and NSPA shall sign a revised Memorandum of Understanding (MoU) to Proposed formalize their respective Project co-implementation Expected soon responsibilities in respect of the COVID-19 Support Allowances under Part 1 of the Project and the Grant payments to be made under Part 1(d) of the Project. IDA-66930 Section IV.B: The Recipient, through MoED, shall ensure Complied with No Change that the collection, use and processing (including transfers to third parties) of any Personal Data collected under this Project shall be done in accordance with the The World Bank COVID-19 Emergency Income Support Project (P174014) requirements and procedures set forth in the POM, and ensuring legitimate, appropriate, and proportionate . treatment of such data. The World Bank COVID-19 Emergency Income Support Project (P174014) . Results framework COUNTRY: Maldives COVID-19 Emergency Income Support Project Project Development Objectives(s) The Project Development Objective (PDO) is to mitigate the economic impact of the COVID-19 crisis on workers and their families, and to increase the capacity of social protection programs to respond to future emergencies. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 Mitigate the economic impact of the COVID-19 crisis on workers and their families (Action: This Objective has been Revised) Beneficiaries of social safety net programs (CRI, 0.00 15,000.00 24,000.00 Number) Action: This indicator has been Revised Beneficiaries of social safety net programs - 0.00 4,500.00 9,400.00 Female (CRI, Number) Action: This indicator has been Revised Beneficiaries of social safety net programs - self- 0.00 6,500.00 employed female (Number) Action: This indicator has been Revised Cash transfers paid to eligible beneficiaries during 0.00 100,000.00 pandemic (person months) (Number) Action: This indicator has been Revised Cash transfers paid to eligible female beneficiaries during pandemic (person months) 0.00 33,000.00 (Number) The World Bank COVID-19 Emergency Income Support Project (P174014) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 Action: This indicator has been Revised Increase the capacity of social protection programs to respond to future emergencies Island councils with access to NSPA SPIS to view 0.00 50.00 and update records (Percentage) National Social Protection Framework formally No Yes approved by competent authority (Yes/No) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Mitigate the economic impact of the COVID-19 crisis on workers and their families (Action: This Component has been Revised) Time to receive first payment after application 5.80 4.00 4.00 (Weeks) Grievances addressed within 2 weeks (Percentage) 0.00 80.00 80.00 Beneficiary records stored and accessible in SPIS 0.00 90.00 90.00 (Percentage) Beneficiary satisfaction with COVID-19 Support Allowance enrollment and payment processes 0.00 75.00 75.00 (Percentage) Number of beneficiaries enrolled in 0.00 400.00 apprenticeships (Number) Action: This indicator is New Number of beneficiaries trained (Number) 0.00 2,000.00 The World Bank COVID-19 Emergency Income Support Project (P174014) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Action: This indicator is New Increase the capacity of social protection systems to respond rapidly to future emergencies National Social Protection Framework drafted and No Yes presented to competent authority (Yes/No) Unemployment insurance program designed and No Yes Yes presented to competent authority (Yes/No) Program for reforms to pension programs drafted No Yes Yes and presented to competent authority (Yes/No) Improvements to SPIS completed and tested No Yes (Yes/No) IO Table SPACE The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 1. DETAILED IMPLEMENTATION ARRANGEMENTS I. New Programs Component 1(b): Employment-based skill training 1. Under this program, registered training institutes will be invited to register on the JobCenter to offer skills training programs. The Project will support the fee costs of the training programs and provide a monthly allowance to the trainees conditional on attendance at training. The Government of Maldives has identified the following areas as key priority areas for employment-based training programs (with targets for the program in parentheses). (a) Professional accounting (500 trainees) (b) Information technology (500 trainees) (c) Divers and water sport professionals for the tourism sector (200 trainees) Component 1(c): Apprenticeship program 2. 400 apprenticeships of 6 months duration will be offered by state-owned enterprises (SOEs). The apprenticeship programs will provide essential training to individuals seeking entry or re-entry into the job market. Structuring an apprenticeship program would provide displaced workers with an opportunity to gain direct on-the-job experience in priority trades. On the employer front, the program facilitates the generation of a skilled pool of workers. The following areas have been identified for the apprenticeship programs: (a) Construction (with Housing Development Corporation (HDC)) (b) Transportation (Maldives Transport and Construction Corporation (MTCC)) (c) Aviation (with Island Aviation Services (IAS)) Component 1(d): Skills and financing for the self-employed 3. The project will extend support to approximately 1,200 self-employed individuals under two main activities: (a) Training programs specifically focused on self-employed individuals who were affected by the COVID-19 crisis. These programs will focus on practical and hands on information on running businesses, especially during the COVID recovery process and transitioning to formalization of work. (b) A grant assistance program to self-employed workers. The grants are aimed to provide small entrepreneurs with capital to restart their economic activities. For example, a self-employed individual involved in food production might require a small asset purchase such as an oven or mixer; a tailor may require a low-cost but specialist sewing machine to improve their efficiency of work. These small asset purchases would ensure that individuals whose livelihoods were disrupted by the COVID- 19 crisis can return to self-sufficiency as quickly as possible. II. Application and Registration Process 4. The program will be advertised through gazette, JobCenter portal, mainstream news media and popular social media. Applicants who applied for the ISA will also be invited by SMS and email to submit applications. 5. Interested applicants will be required to submit their application through the JobCenter portal. Former beneficiaries of the ISA program will be given preference. Applicants will be allowed to choose which of the three programs they are interested in, and oversubscription will be handled through random selection. This will facilitate an impact evaluation of the program. 6. Applicants will be required to meet the following criteria: The World Bank COVID-19 Emergency Income Support Project (P174014)  Maldivian citizen residing in Maldives.  Aged 18-65 years.  Not employed for more than 20 hours per week in the last four weeks, and ready to work.  Meets the minimum educational qualifications for the training program selected, as well as the prerequisites for the specific modules included in the training.  Not receiving any funding (e.g. financial support or scholarship) from another source (government or NGO) or participating in any other World Bank funded program (including the Business Plan Competition under the MEERY project).  Have not previously received support through this program (except for ISA benefits between April and December 2020). Program-Specific Requirements Skills training program  Participants will be required to attend a minimum of 80 percent of classes every month to qualify for the allowance.  Attendance of participants will be recorded and reported on a monthly basis by the training provider.  Participants are expected to commit to the program for its entire duration, and in the case of drop-out from training, allowances will also be discontinued.  The project will assist participants to find employment after the training is completed. All participants must be willing to undertake an opportunity to pursue an apprenticeship/internship programme or take up a job upon completing their training. Apprenticeship program  Meets the minimum qualifications and experience requirements set out by the employer.  Maintains at least 80 percent attendance and satisfactory performance, which will be reported by the employer on a monthly basis. Continued breach of these conditions will result in termination. Self-employment program  Participants will be required to provide evidence of their self-employment status for the past 6 months (verification against payment documentation, social media presence, council reference etc).  Eligibility for the grant will be based on: o Duration of self-employment o Signing of a grant agreement with the project, capturing among other things the nature of eligible expenditures, the right to seek restitution, inspect etc. o Beneficiaries would be required to undergo a set-standard course on private sector entrepreneurship before grants are approved. This program would be a one-day workshop and can be undertaken remotely as well. Main areas to be covered in the one-day workshop include:  Business Legal requirements  Processes to formalization  Financial Literacy  Marketing and e-commerce o In addition to completing the training, beneficiaries would need to submit a business plan with statement of intended expenditure of the MVR 60,000 grant in advance of receiving the grant. 7. A detailed background check of each applicant will be performed by the MoED before acceptance of the application and the Project will make every effort to avoid enrolling any individual not meeting all of the above criteria. 8. Preference will be given to those individuals whose employment was impacted by the COVID-19 pandemic and have received ISA payments. Individuals who did not apply for the ISA program but are currently unemployed or self-employed will be eligible for the program. The World Bank COVID-19 Emergency Income Support Project (P174014) 9. A target of 33% female beneficiaries will be set. Outreach and communication will be tailored to encourage women to apply to the program. III. Accreditation of Training Providers 10. Participants in the skills training program will select a course from a menu provided on the online Job Center platform. This will be populated with approved course offerings from accredited training providers, both public and private. To become accredited, a prospective training provider will submit an application to the Project detailing the course offerings, number of available places, course term dates, lesson times, and costs, along with evidence that the provider meets the following criteria:  For the employment-based training, the training provider should be registered/licensed under a governing local educational authority or licensing body with 2-3 years minimum experience as a registered training provider; and listed as a registered institute under the programme/training in question, authorized to carry out the programme/training.  For the self-employment-based training programmes, the training provider should be registered/licensed under a governing local educational authority or is a state-authority with a legal mandate within the area.  Other conditions as stipulated by the Project. 11. The training provider shall ensure that; a. the training/programme will be conducted by the relevant subject matter experts and professionals; b. sufficient educational and support services are provided to meet the needs of the applicants undertaking the training and assessment; c. sufficient learning resources are prepared to enable applicants to meet the requirements for each unit of competency, and which are accessible to the applicants regardless of location or mode of delivery; d. sufficient facilities are in place, whether physical or virtual, and equipment to accommodate and support the number of applicants undertaking the training and assessment; e. fees will be refunded in full if the trainee drops out of the enrolled course of study prior to a cut-off date set by the training provider, which will be no sooner than 7 days after enrollment; f. detailed and updated lesson/exercise plans are clearly referenced against the proposal to deliver the programme/training (including learning objectives, performance assessment, instructor/course applicant ratios, resources to be used, time allocation, location of training, staff roles etc); and g. the modules, learning objectives, lessons and elements may be delivered in the order that fits best for the specific training situation, as long as the total duration is not reduced, and practical elements are not reduced in length. 12. Furthermore, it shall be the responsibility of the training provider to report monthly on the attendance record of each beneficiary enrolled in its training programs, reporting of which will be done through the online JobCenter portal. An attestation will be made by the head of the training provider agency that this information is truthful. 13. The terms and conditions of this arrangement shall be formally set out in a Service Level Agreement signed by the MoED and the training provider, at the time of accreditation. For government training agencies this agreement will take the form of a Memorandum of Understanding. 14. The training provider shall not expense any costs/fees in addition to the costs/fees that are specified under the programme/training or costs/fees that are invoiced to the PMU. IV. Financing Arrangements and Budget 15. The Project will provide the following financial assistance to applicants under Components 1(b)-1(d): The World Bank COVID-19 Emergency Income Support Project (P174014)  Training program and examination fees: This will include tuition fees, books and examination charges. Tuition fees for the program will be paid directly to the skill training provider by the Project using a voucher system. It should be noted that for certain professional courses, specifically in the accounting sector, exam fees are paid directly to the global certification board (for example: Association of Chartered Certified Accountants) by the students. Examination fees will be reimbursed for a maximum of one sitting per beneficiary during this project, and paid to the beneficiary upon presentation of a receipt for payment and evidence that the beneficiary successfully passed the examination.  Living allowance for students and apprentices: A living allowance of MVR 5,000 will be provided for a period of 6 months to students enrolled in the program and fulfilling attendance requirements. For apprentices the allowance will be MVR 7,000 per month. This allowance is designed to be slightly below the minimum wage, in order to cover living expenses without distorting labor markets.  Transportation allowance: An additional transportation allowance will be paid to beneficiaries needing to travel in order to participate in the program. This allowance will be defined according to the distance traveled, and reflect reasonable costs of transportation. Those resident in Male or surrounds, or other atolls where training facilities are available for the selected course, would not be eligible for the transportation allowance.  Business development grant for self-employed workers: A lump sum grant of MVR 60,000 (equivalent to 12 months allowance at MVR 5,000/month) will be paid to participants in the self-employment stream upon completion of a short training course and presentation of a business plan. The business plan will be reviewed and cleared by the PMU under the guidance of the BCC, and will include a description of the intended use of the MVR 60,000 grant. V. Implementation Arrangements 16. Implementing agency: The implementing agency for the program will be the MoED. The JobCenter operated under MoED will be the key platform to manage and process the applications that are lodged for the various programs. 17. Disbursement: Disbursement of living and transport allowances (as well as examination fees, see above) to beneficiaries will follow the ISA fund flow arrangement established with the NSPA. Additional system upgrades would be required to link the new payment program, although the scale of development is expected to be minimum. 18. Financial Management: Component 1 payments will be continued to be managed under the existing mechanism in the original project within the same FM arrangements. In the case of component 1(b), the PMU will directly pay cost of training (that may include tuition fees and cost of textbooks) to the tuition service provider, which will be a registered institute offering the course of study. The cost of the examination fee will be reimbursed to the individual beneficiary’s sole Bank account. The stipend and transport allowance will be remitted to the individual beneficiary’s sole bank account. Under Component 1 (c), a living allowance will be paid directly to beneficiary’s sole account by PMU. Under component 1 (d), the business development grant of MVR 60,000 will be paid as a lump sum to the beneficiary’s sole bank account by PMU. All activities under Component 2 will be managed as per original project where PMU will be the spending/procuring agency and will make payments for the ultimate service provider/supplier for the goods, consultant costs and IOC incurred for project management. 19. A strong internal control framework and a monitoring and review mechanism will need to be developed by PMU, especially for the new and expanded activities. The POM will need to be revised accordingly. PMU will ensure that a comprehensive review process with adequate controls will be applied in the case of selection, monitoring and evaluation in order to achieve the results and expected outcomes. PMU will also ensure that project funds are duly transferred in a timely manner, for the intended purposes and for the intended recipients only. Also, in the case of Component 1 (b), PMU must ensure that eligible expenditures incurred are for productive purposes. This includes limiting project funds to reimbursement of the exam fee only once, and only upon successful completion of the exam. This would involve a strong evaluation/selection process of candidates and a strong The World Bank COVID-19 Emergency Income Support Project (P174014) monitoring system. The PMU will ensure that double-dipping by beneficiaries is avoided under the many different programs available under the different subcomponents of Component 1 and other projects. 20. The existing IUFR format would be refined to capture the new categories of expenditures incurred under different subcomponents. The internal audit should continue on a consistent basis and the audit process needs to happen in a timely manner and timely internal audit reports also needs to be made available. The external audit will be continued to be carried out by the Auditor General’s Office of Maldives. 21. Safeguards: The proposed restructuring will not change the existing E&S risk rating of the project. Though new activities on upskilling of jobseekers in priority trades, entrepreneurship and apprenticeship programs are added, the types of E&S risks will remain the same as with the COVID-19 Income Support Allowance. Hence the E&S risks rating will remain as ‘moderate’ given the associated risks around: (i) exclusion of eligible beneficiaries, particularly vulnerable groups due to lack of equitable selection criteria and application processes, lack of access to information and services to submit applications, (ii) specific challenges faced by women to participate in the program due to household & childcare duties and cultural & social norms limiting women’s enrollment in certain courses such as ICT courses, taking up jobs in tourism etc. as they may be viewed as being more suitable for males, (iii) occupational health and safety risks due to the pandemic during travel and trainings including risks of gender-based violence especially during residential programs, iv) inadequate consultations and citizen engagement, which could lead to social tensions between project beneficiaries and non-project beneficiaries, especially if there is lack of transparency in the application and decision-making processes. 22. These risks are expected to be avoided or mitigated by ensuring the project design, beneficiary selection processes etc. are carried out in an inclusive and equitable manner, including specific outreach activities and meaningful consultations are conducted to ensure that vulnerable groups and gender minorities, etc. are able to access information and application processing facilities. Targeted communication campaigns will be conducted to address cultural & social norms and additional services will be put in place to encourage and support women including provision of career counseling. All training providers and all trainees will comply with COVID-19 Health and Safety guidelines and also adopt a SEA/SH Code of Conduct which will be incorporated into service agreements with training providers and into student applications. All risk mitigation measures are detailed in the revised ESMF, SEP, LMP and ESCP of the project. 23. Gender: Recent evidence shows that women in the Maldives have been disproportionately affected both economically and socially by the COVID-19 pandemic. A rapid assessment of livelihoods carried out by the MoED together with UNDP based on data available through the JobCentre showed that women experienced higher rates of redundancy compared with men and were earning less income. Another assessment on socio-economic aspects of COVID-19 in the country carried out by the Maldives National University revealed that 17 percent of survey respondents were deeply concerned about occurrences of domestic violence, and 1 out of 6 reported knowing someone who experienced violence in the week of the survey. 24. Through the restructuring, the Project will ensure enhanced targeting and engagement of female workers who have been pre- identified as socially and economically vulnerable linking to the COVID-19 pandemic and incidents of Gender Based Violence (GBV) through three main strategies: (i) Increasing awareness: The project will ensure targeted messaging is delivered through the JobCenter Portal to females who have become redundant or have experienced a decline in earnings due to the pandemic. Moreover, the project will work closely with the Ministry of Gender, Family and Social Services, the Family Protection Authority, the National Social Protection Agency and the Ministry of Islamic Affairs to identify vulnerable women (for example, single mothers, and females living in poverty) who could benefit from the program, and to ensure that these groups are aware of the various trainings, apprenticeship and entrepreneurship programs conducted through the project. Information on GBV and support services will be provided through the communication outlets (e.g. website, leaflets) to increase women’s The World Bank COVID-19 Emergency Income Support Project (P174014) awareness of these services. All staff and faculty conducting the apprenticeship training will subscribe to a zero tolerance policy on sexual harassment, undergoing awareness training in SEA/SH prevention and reporting, signing a code of conduct, and making safe spaces available for beneficiaries to share any concerns around SEA/SH experiences. All training modules delivered will include topics relating to gender equality, GBV, sexual abuse and harassment. Information regarding these programs will also be disseminated across the country using the Women’s Development Committees as a means of information dissemination. (ii) Ensuring eligibility: To ensure potential female candidates are not discriminated against in terms of meeting the eligibility criteria, the project will formulate special selection criteria for females which recognize the historical disadvantages faced by women as well as their socially ascribed roles in family and society. The project will also reserve 40 percent of the slots in the skill development program for women. The apprenticeship programs will be delivered through large State- Owned Enterprises (SOEs) with wider geographic reach across the country enabling easier access to candidates living in peripheral islands. Potential SOE partners include the Housing Development Corporation (HDC), Maldives Transport and Contracting Company (MTCC), Island Aviation Services (IAS), FENAKA and Regional Airports Company Limited (RACL). (iii) Improving access: Finally, to guarantee that women can practically access these programs, the project will work with the Business Centre Corporation (BCC) to design training programs in consideration of women’s schedules and family related responsibilities. Training providers under the skills development program will be encouraged to offer courses at different times of the day. In addition to the above, a Code of Conduct will be developed and signed by all project personnel including all staff at the PMU and subcontractors. 25. Citizen engagement: The project will continue to follow its robust citizen engagement approach that includes stakeholder feedback surveys, consultations, and a project-specific GRM. The project will also continue to work with Island Councils, women’s groups and business associations to effectively engage citizens, especially those in remote islands. The analysis from feedback surveys will help to better understand the extent to which beneficiaries are satisfied with the skill development trainings and employers are satisfied with graduates from the skills development programs. The analysis of feedback surveys will be disaggregated by gender to assess if there are emerging gender-related issues to ensure that timely actions are taken to address them. Accordingly, the learnings from the feedback will be used to improve the design and the delivery of the program. 26. Staffing: The scope of the PMU is expected to expand to accommodate the additional workload. The proposed PMU structure is as follows, with new staffing requirements and their cost for the remaining 12 months. Only the project coordinators, project officers, FM and procurement specialists will be hired; the remaining staff are already assigned to the project or Ministry and have no marginal cost. Table A1.1. Expanded staffing plan Designation TOR Required Existing or new # position Project Director  Oversees the execution of the project activities as per 1 Existing staff the agreement between World Bank and Government of Maldives. Deputy Project Director  Supports Project Director in activities 1 Existing staff Project Coordinator  Manages tasks related to the employed/self-employed 3 New consultant training programs. positions  Liaises with training providers/trainees to ensure effective implementation of the project.  Manages outreach and awareness programs for the training programs The World Bank COVID-19 Emergency Income Support Project (P174014) Business Analyst  Identifies eligible applicants for the self-employment 7 New consultant program positions  Undertakes training program for self-employed individuals seeking to participate in the program  Provides mentoring and advice on business activities Project Officers  Undertakes administrative tasks and activities related 6 New consultant to the training programs positions  Manages documentation and processing grievances related to the program  Assists in the outreach and awareness efforts to increase participation in the training programs. Data entry operators  Reviews applications for the self-employed grant 4 Existing staff program.  Forwards applications for MoED review and approval.  Conducts spot-checks and follow-ups on non- compliance. Public Relations &  Oversees stakeholder communication. 1 Existing staff Marketing Manager  Undertakes direct marketing of the project activities, including strategy, planning and promotional materials. M&E Manager  Assists the M&E specialist in the monitoring of the 1 Existing staff project activity progress as per WB requirements. M&E Specialist  Monitoring and evaluation systems and practices and 1 Existing staff generate evidence-based feedback for program planning and policy formulation Procurement Specialist  Oversees the procurement activities in accordance with 1 New consultant the Project Agreement. positions FM Specialist  A full-time FM specialist will be hired for the Project 1 New consultant and trained by the World Bank to manage the positions increasingly complex FM arrangements FM Assistant  A FM assistant will support the FMS in monitoring and 1 Existing staff reporting, as well as liaising with NSPA, training providers and auditors. Safeguards Specialist  Leads and coordinates the planning and development 1 Existing staff of safeguards policies on the environment and social safeguard policies. The World Bank COVID-19 Emergency Income Support Project (P174014) Figure A1.1. Service Flow Chart Table A1.2. Budget for additional activities under the restructuring Total Average Fee Per Allowance/Grant Total fee allowance/ Nos (MVR) (MVR) Months cost grant cost Total cost in Component Activity (a) (b) (C) (d) (a*b) (a*c*d) MVR USD (a) Accounting Professionals 500 1,500 5,000 3 750,000 7,500,000 8,250,000 535,019 (b) Information Technology and Future 1(b): Employment-based 500 1,500 5,000 3 750,000 7,500,000 8,250,000 535,019 of Work skill training (c) Tourism sector 200 61,680 5,000 2 12,336,000 2,000,000 14,336,000 929,702 Sub-total: Component 1(b) 1,200 13,836,000 17,000,000 30,836,000 1,999,741 1(c): Apprenticeship Apprenticeship Program 400 7,000 6 16,800,000 16,800,000 1,089,494 Program Sub-total: Component 1(c) 400 16,800,000 16,800,000 1,089,494 1(d): Skills and financing Training and grant 1,200 3,500 5,000 12 4,200,000 72,000,000 76,200,000 4,941,634 for the self-employed Sub-total: Component 1(d) 1,200 4,200,000 72,000,000 76,200,000 4,941,634 2. Operational Costs (a) Additional consultants 4,690,949 304,212 Sub-total: Component 2 4,690,949 304,212 Total 128,526,949 8,335,081