LFF DONORS The LFF was established in close collaboration with the EU and the UN LFF AT A GLANCE AS OF 12/31/22 Contributions by Donor EU AFD Total Contributions US$30.73 million US$2.53 million US$69.98 Canada France million US$15.90 million US$2.50 million Paid in Germany Norway US$11.27 million US$0.95 million Denmark US$6.10 million US$69.98 million Recipient-Executed US$11.36 million US$52.75 million Unallocated amount available Grant Allocations to support new priorities Bank-Executed US$2.85 million US$17.83 million Project preparation Grant Disbursements and supervision as of 12/31/2022 US$0.59 million Program management 8 grants endorsed and administration 4 Recipient-Executed (4 active) US$56.75 million US$0.57 million 4 Bank-Executed (3 active, 1 closed) FOCUS AREAS AND OBJECTIVES Supporting Beirut’s Immediate Social Recovery Services: To support the immediate social recovery needs of vulnerable groups following the Port of Beirut (PoB) explosion. FOCUS AREA 1 Environmental recovery, restoration and waste management: To support emergency environment control measures in Beirut City from impacts of Socioeconomic and the August 2020 explosion and support planning for longer-term Business Recovery environmental restoration e orts. Beirut housing rehabilitation and cultural heritage and creative industries recovery: To support rehabilitation of prioritized historical housing for the most vulnerable people and to provide emergency support to creative practitioners and entities in the cultural sector in the PoB explosion areas. Building Beirut Businesses Back Better (B5): To support the recovery of targeted micro- and small-sized enterprises (MSEs) and ensure the FOCUS AREA 2 sustainability of eligible microfinance institutions (MFIs). Supporting Reform Reconstruction with Integrity and Transparency: To begin to establish a and Preparing for transparent, accountable, and inclusive policy and institutional Reconstruction framework for Lebanon’s reconstruction and recovery. Reforming Lebanon’s Port Sector: To support port sector reform in Lebanon and pave the way to rebuild a better, modern and digital Port of Beirut. FOCUS AREA 3 Strengthening capacity and institutional arrangements for 3RF oversight, citizen engagement, and monitoring/communications: To support the operationalization of the institutional, monitoring, and accountability Coordination, Monitoring, arrangements related to the 3RF. Accountability, Oversight COVID 19 Vaccination Third-Party Monitoring: To conduct independent third-party monitoring of the rollout of World Bank-financed vaccines in Lebanon to ensure safe, e ective and equitable vaccine deployment. Throughout the work program, the LFF promotes gender and targeted CROSS-CUTTING support for women. It follows a people-centered approach, focusing on the most vulnerable ensuring transparency, citizen and community engagement, PRIORITIES as well as strong monitoring and oversight. Acknowledgements ACKNOWLEDGEMENTS The Lebanon Financing Facility (LFF) progress report is published annually by the LFF Program Management Team (PMT) on behalf of the World Bank as the Administrator of the Trust Fund. The LFF PMT would like to thank the LFF donors – Canada, Denmark, EU, France, Germany and Norway – as well as the UN, for their commitment to the LFF’s strategic vision and for their active engagement in the development and implementation of projects. We would also like to acknowledge the support and guidance received from the Government of Lebanon (GoL), represented by the Deputy Prime Minister, Prime Minister’s Office, Ministry of Finance and Line Ministries, since the inception of the LFF. We are grateful for the support received from all 3RF stakeholders, (government representatives, civil society and international partners of Lebanon). Finally, we would like to recognize the World Bank PMT, central units and sector teams for their immense efforts in advancing LFF-funded projects under particularly difficult circumstances over the past year. 3 ABBREVIATIONS AND ACRONYMS 3RF...................... . Lebanon Reform, Recovery and Reconstruction Framework AFD. ................... . . Agence Française de Développement ASA. ................... .. Advisory Services and Analytics B5....................... . . Building Beirut Businesses Back & Better CCI. .................... .. Cultural and Creative Industries CDR.................... . . Council for Development and Reconstruction CDW................... .. Construction and Demolition Waste CoA. ................... . . Court of Accounts CSO.................... . . Civil Society Organization CVP.................... . . Communications and Visibility Plan ESF..................... . . Environmental and Social Framework EU. ..................... . . European Union GAC..................... . Grant Approval Committee GBV.................... .. Gender-based violence GIF...................... . . Global Infrastructure Facility GM. ..................... . Grievance Mechanism GoL..................... . . Government of Lebanon IFRC. .................. . . International Federation of Red Cross and Red Crescent Societies IOB..................... . . Independent Oversight Body IOF. .................... . . Institute of Finance IOM.................... . . International Organization for Migration IRC. .................... . . International Rescue Committee LAF..................... . . Lebanese Armed Forces LFF. ..................... . Lebanon Financing Facility M&E. ................... . Monitoring and Evaluation MFI..................... . . Microfinance Institution MMU.................. . . Mobile Medical Unit MoPH.................. . Ministry of Public Health MoPH-NMHP. ... .. Ministry of Public Health’s National Mental Health Program MPWT................ .. Ministry of Public Works and Transport MSE..................... . Micro- and Small-sized Enterprises NACC. ................ . . National Anti-Corruption Commission NDVP. ................ .. National Deployment Vaccination Plan NGO................... . . Non-governmental Organization PC....................... .. Partnership Council PCC. ................... . . Project Coordination Committee PIM..................... . . Public Investment Management PMT..................... . Program Management Team PMU................... . . Project Management Unit PoB...................... . Port of Beirut PPA..................... .. Public Procurement Authority PPIAF. ................ . . Public-Private Infrastructure Advisory Facility RDNA................. . . Rapid Damage and Needs Assessment SPD. ................... . . Standard Procurement Document TAC..................... . . Technical Advisory Committee TPM.................... . . Third-Party Monitoring TPMA. ................ . . Third-Party Monitoring Agent UN....................... . United Nations UNDP................. . . United Nations Development Program UNESCO. ............ . United Nations Educational, Scientific and Cultural Organization UN-HABITAT. .... . . United Nations Human Settlements Program UNICEF.............. . . United Nations International Children’s Emergency Fund UNHCR............... . United Nations High Commissioner for Refugees UNRWA.............. .. United Nations Relief and Works Agency for Palestine Refugees WHO. ................. . . World Health Organization 4 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 TABLE OF CONTENTS 3 Acknowledgements 4 Abbreviations and Acronyms 6 Executive Summary 10 Résumé 15 ‫ملخص‬ 18 Context 21 The LFF Portfolio 24 LFF Activities and Highlights 41 Operational Updates 44 Financial Highlights 47 Cross-Cutting Challenges and Lessons Learned 51 Looking Forward 52 Annex 1. List of Trust-funded Projects 68 Annex 2. Results Framework 76 Annex 3. 3RF Co-Chair Statement 77 Annex 4. LFF Press Releases issued in 2022 81 Annex 5. Communiqués by the Independent Oversight Body issued in 2022 5 EXECUTIVE SUMMARY OVERVIEW The Lebanon Financing Facility (LFF) is a 5-year multi-donor trust fund that was established in December 2020 in the aftermath of the August 4th Port of Beirut (PoB) explosion disaster and following the launch of the Reform, Recovery and Reconstruction Framework (3RF). To date, the LFF has received generous contributions from the governments of Canada, Denmark, France, Germany, Norway and from the EU. The LFF was set up to support the immediate socio-economic recovery of vulnerable people and businesses following the explosion in Beirut, and to build the foundation for medium-term recovery and the sustainable reconstruction of the Port of Beirut and affected neighborhoods. The LFF prioritizes three focus areas of interventions: 1) Socioeconomic and business recovery; 2) Preparing for reform and reconstruction; and 3) Strengthening coordination, monitoring, accountability and oversight of the 3RF. Since its establishment, the LFF has helped to provide a beacon of hope to the people impacted by the PoB explosion. Despite the complex operating environment, LFF-funded projects have made notable achievements in the past year. The LFF has delivered grants to 1,850 micro- and small-sized enterprises (MSEs) as well 6 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Executive Summary as to nine local Non-governmental Organizations supply, impeded implementation progress of LFF- (NGOs), which supported the provision of social financed projects. As a result, about one third of services to thousands of vulnerable beneficiaries. the LFF’s committed funding has been disbursed, The LFF is also supporting the design and and many results have yet to be achieved. implementation of policy reforms and helping to strengthen key institutions in the areas of public Lebanon’s compounded crises have worsened financial management, public procurement, since the LFF’s establishment. The financial and and anticorruption reform. Further, it helped to economic crisis has already wiped out 15 years ensure the safe, effective and equitable rollout of of economic growth. The currency has lost more COVID-19 vaccine deployment. The LFF remains than 98 percent of its value since the onset of an agile tool to support the 3RF, and in doing the crisis, while inflation averaged 171 percent so, is proposing new activities to the portfolio in in 2022 and is expected to remain in the triple collaboration with donors and stakeholders. digits in 2023. The sharp deterioration in the currency coupled with triple digit inflation has However, several overlapping challenges have resulted in a drastic decrease in salaries, driving slowed down progress on the implementation many skilled workers out of the public sector of LFF-funded projects and the disbursement of while the remaining civil servants work about funds. Significant time and efforts are needed to one day per week. This has resulted in an acute conduct the required due diligence for recipient- collapse in the provision of public services and executed LFF grants, which are primarily further deterioration of public finances. The implemented by international NGOs and UN social impact of the crisis has been catastrophic: agencies, as well as to develop and harmonize more than half of the population is estimated to agreements with implementing partners. Further, have fallen below the national poverty line. The the instability of the country context has required presidential vacuum as well as prolonged periods the continuous reassessment and adaptation of of caretaker government further undermined the activities to the rapidly evolving situation on the efforts to move forward on the implementation of ground. In addition, the worsening conditions in much-needed macroeconomic, financial, fiscal, the country, including the decline in purchasing and governance reforms. power, the rising costs of transportation and generator fuel, and the shortage of electricity 7 The LFF’s priority for 2023 will be expediting are considered eligible for rehabilitation, with project implementation to ensure the LFF rehabilitation bidding (first batch) and design delivers on its commitments despite all the (second batch) underway for seven buildings. challenges. Considering the urgent need to Under the environment recovery project, strengthen the core functions of the public sector preparations have been made to undertake to address the economic and financial crises, and detailed assessments and designs for the to implement a comprehensive reform agenda, management of asbestos contaminated waste the LFF will also focus on supporting the design and rehabilitation of solid waste management and implementation of selected reforms, while infrastructure, which should begin in 2023. continuing to respond to immediate recovery ƒ The LFF’s support for socioeconomic and needs through its ongoing projects in accordance business recovery has considered gender- with the strategic reorientation of the 3RF. This differentiated needs, encouraged women’s is in line with the LFF’s phased approach, which participation and sought more equal access to facilitates prioritization and sequencing to benefits. Under the B5 Fund, nearly 27 percent ensure short-term recovery needs are met while of the businesses receiving recovery support preparing for medium-term support for reform are women-owned or led, nearing the LFF’s and reconstruction. This flexibility allows the target of 30 percent. Grants under the social LFF to utilize opportunities as they emerge to recovery project are supporting the provision advance reform initiatives and to engage with the of services to women and children who are Government. at-risk or survivors of GBV by supporting the operating costs of four safe houses/ shelters, improving one facility for children under judicial protective measures, and KEY LFF DEVELOPMENTS improving access to complementary, holistic FROM 2022: services and quality case management. Of the 56 units in the historic buildings eligible for rehabilitation under the LFF-supported ƒ The LFF has received contributions from six housing rehabilitation project, 10 are headed donor countries (Canada, Denmark, the EU, by women. France, Germany and Norway) who have ƒ In preparing for reform and reconstruction committed US$69.98 million, all of which has (Focus Area 2), the LFF has supported the been received. The LFF Program Management Public Procurement Authority (PPA) to Team (PMT) continues to actively fundraise internalize its new mandate and develop and anticipates receiving additional pledges Standard Procurement Documents (SPDs), from donors in 2023. while a review and analysis of Lebanon’s ƒ The LFF has achieved significant progress on Public Investment Management (PIM) Action socioeconomic and business recovery (Focus Plan is underway. With technical assistance Area 1). The LFF-supported the Building Beirut from the World Bank, the Ministry of Public Businesses Back & Better (B5) Fund, which Works and Transport (MPWT) has finalized provided grants to 1,850 MSEs, nearly one the development of a draft of the Port Sector third of which are women-owned or led, and Law in line with international best practices. has selected three microfinance institutions ƒ The Independent Oversight Body (IOB) (MFIs) to receive funding to cover their for the 3RF has been established and is operational expenses. As part of the social functional with support from the LFF. The recovery project, the LFF has also supported membership has been expanded to include the provision of social services to over two six Civil Society members. The charter for thousand vulnerable beneficiaries, including the operationalization of the IOB has been women and children who are survivors or at- prepared in consultation with the World risk of gender-based violence (GBV), people Bank and approved by its members. The with mental health challenges, persons with 3RF website is now online at https://www. disabilities, older persons, and migrant and lebanon3rf.org. refugee domestic workers. Under the housing ƒ The LFF supported the independent third- rehabilitation project, 13 residential heritage party monitoring (TPM) of the rollout of buildings have been thoroughly assessed and World Bank-financed COVID-19 vaccines in 8 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Executive Summary Lebanon, which resulted in thousands of field STRUCTURE OF THE SECOND monitoring visits to ensure safe, effective and equitable vaccine deployment in line LFF ANNUAL REPORT with international standards. The monitors noted improvements in multiple practices This annual report will focus on the LFF’s following reports delivered to the Ministry of implementation progress, challenges and results Public Health, which took corrective action to date. The first section provides the sectoral to strengthen the quality of the vaccination context for recovery, reconstruction and reform services. in Lebanon. The second section gives an overview ƒ The LFF Partnership Council (PC) met in April of the LFF portfolio during its second year of 2022 to discuss implementation progress and implementation. The third section provides initial results of LFF-financed projects as well details on the implementation status, results, as donor contributions one year following the challenges and lessons learned of LFF-funded endorsement of the first LFF Work Plan in 2021. projects. The fourth section summarizes the LFF programming needs and priorities were LFF’s financial flows. The fifth section highlights discussed for 2022, considering Lebanon’s cross-cutting challenges and lessons learned for ongoing compounded crises and challenges. the LFF as a whole. The final section conveys the The meeting was attended by LFF donors, LFF’s ambitions for 2023 and beyond. The annexes government representatives, the UN, civil provide an overview of the projects in the LFF society organizations (CSOs), and co-chaired portfolio, an up-to-date results framework, the by the World Bank Regional Director and the 3RF co-chair statement on the reorientation of the European Union (EU) Head of Delegation. 3RF’s scope and mandate, and LFF Press Releases ƒ Five technical consultations with donors were issued in 2022. held in 2022 to assess progress, risks and challenges and to hold technical discussions on preparation of the LFF project pipeline. In addition, a deep dive discussion was held in November 2022 to examine the challenges and obstacles hampering implementation and priorities going forward. ƒ Significant efforts were made to strengthen engagement among donors, beneficiaries, Government and implementing agencies through field visits to project sites for all four LFF recipient-executed projects. In addition, a roundtable discussion was held with the beneficiaries of the B5 Fund to learn how funding is helping them to resume their business operations and understand the continuing challenges they are facing. ƒ In December 2022, the LFF received an Umbrella Program Award for the second consecutive year based on its strong focus on communications, outreach, and promoting donor visibility, culminating in its strong Communications and Visibility Plan. 9 RÉSUMÉ VUE D’ENSEMBLE Le Mécanisme de financement pour le Liban (LFF) est un fonds fiduciaire multidonateurs créé en décembre 2020 pour une durée de cinq ans à la suite de la catastrophe provoquée par l’explosion survenue dans le port de Beyrouth le 4 août et après le lancement du Cadre de réforme, de relèvement et de reconstruction (3RF). À ce jour, le LFF a reçu des contributions et des promesses de dons des gouvernements du Canada, du Danemark, de la France et de l’Allemagne et de l’Union européenne. Le LFF a été créé pour accompagner le redressement socioéconomique immédiat des personnes et des entreprises vulnérables fragilisées par l’explosion survenue au port de Beyrouth et jeter les bases d’un redressement à moyen terme et de la reconstruction durable du port de Beyrouth et des quartiers touchés. Le LFF intervient prioritairement dans trois domaines : 1) le relèvement socioéconomique et le redressement des entreprises ; 2) les travaux préparatoires aux réformes et la reconstruction ; 3) le renforcement de la coordination, du suivi, de la responsabilisation et de la supervision du Cadre 3RF. Depuis sa création, le LFF a apporté une lueur d’espoir aux personnes touchées par l’explosion. Malgré la complexité de l’environnement opérationnel, les projets financés par le LFF ont fait des progrès notables au cours de l’année écoulée. Le LFF a versé des dons à 1 850 microentreprises et petites et moyennes entreprises ainsi qu’à neuf organisations non gouvernementales (ONG) locales, qui ont financé la fourniture de services sociaux à des milliers de bénéficiaires vulnérables. Le LFF appuie également la conception et la mise en œuvre de réformes d’orientation et aide à renforcer les institutions clefs dans les domaines de la gestion des finances publiques, la passation des marchés publics et de la lutte contre la corruption. Il a en outre permis de garantir la sécurité, l’efficacité et l’équité du déploiement du vaccin contre la COVID19. La souplesse de ce mécanisme permet d’appuyer le Cadre 3RF et, ce faisant, de proposer de nouvelles activités au portefeuille en collaboration avec les donateurs et les parties prenantes. Toutefois, plusieurs problèmes concomitants ont ralenti les progrès dans la mise en œuvre des projets financés par la LFF et le décaissement des fonds. Il faut consacrer beaucoup de temps et d’énergie pour faire preuve de la diligence requise en ce qui concerne les dons du LFF exécutés par les bénéficiaires, qui sont principalement mis en œuvre par des ONG et des organismes des Nations unies, ainsi que pour élaborer des accords et les harmoniser avec les partenaires d’exécution. En outre, l’instabilité du contexte national a nécessité de réévaluer continuellement les activités et de les adapter en permanence à l’évolution rapide de la situation sur le 10 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Résumé terrain. De plus, l’aggravation de la situation dans relèvement dans le cadre de ses projets en cours, le pays, notamment la baisse du pouvoir d’achat, conformément à la réorientation stratégique la hausse des coûts de transport et du carburant du Cadre 3RF. Cela correspond à l’approche pour les générateurs et la pénurie d’électricité, progressive du LFF qui facilite la hiérarchisation a ralenti la progression de la mise en œuvre des priorités et l’agencement des réformes afin des projets financés par le LFF. En conséquence, de veiller à ce qu’une réponse soit apportée aux environ un tiers des fonds engagés au titre du besoins de relèvement à court terme tout en se LFF ont été déboursés et de nombreux résultats préparant à appuyer à moyen terme les réformes doivent encore être atteints. et la reconstruction. Cette flexibilité permet au LFF de profiter des nouvelles possibilités offertes Malheureusement, les crises multiples qu’a connu pour promouvoir des initiatives de réforme et le Liban se sont aggravées depuis la création du s’engager aux côtés du gouvernement. LFF. La crise financière et économique a déjà effacé 15 années de croissance économique. La monnaie a perdu plus de 98 % de sa valeur depuis le début de la crise, tandis que l’inflation a atteint PRINCIPAUX ÉLÉMENTS en moyenne 171 % en 2022 et devrait rester à trois chiffres en 2023. La forte détérioration NOUVEAUX SURVENUS de la monnaie, associée à une inflation à trois DEPUIS 2022 AU SEIN chiffres, a entraîné une baisse spectaculaire des salaires, poussant de nombreux travailleurs DU LFF : qualifiés à quitter le secteur public, tandis que les fonctionnaires restants travaillent environ ƒ Le LFF a reçu des contributions de six pays un jour par semaine. Cette situation a entraîné donateurs (Allemagne, Canada, Danemark, un effondrement dramatique des services France, Norvège et UE) qui se sont engagés publics et une nouvelle détérioration des à verser 69,98 millions de dollars ; toutes finances publiques. L’impact social de la crise ces contributions ont été reçues. L’équipe a été catastrophique : on estime que plus de la de gestion de programme du LFF continue moitié de la population est tombée sous le seuil de collecter activement des fonds et de pauvreté national. Le vide présidentiel et les prévoit de recevoir des promesses de dons périodes prolongées de gouvernement provisoire supplémentaires de la part des donateurs en ont sapé encore davantage les efforts visant à 2023. faire avancer la mise en œuvre des réformes ƒ Le LFF a enregistré des avancées notables en ce macroéconomiques, financières, budgétaires et qui concerne le relèvement socioéconomique de la réforme de la gouvernance dont le besoin et le redressement des entreprises (domaine se fait cruellement sentir. d’intervention 1). Le LFF a apporté son soutien au Fonds « B5 » (B5 Fund pour Building Beirut Par la suite, la priorité du LFF pour 2023 sera Businesses Back and Better), qui a versé des d’accélérer la mise en œuvre des projets pour dons à 1 850 microentreprises et petites et faire en sorte que le mécanisme respecte ses moyennes entreprises, dont près d’un tiers engagements malgré toutes les difficultés détenues ou dirigées par des femmes, et a rencontrées. Compte tenu de la nécessité urgente sélectionné trois institutions de microfinance de renforcer les activités essentielles du secteur qui recevront des contributions destinées à public pour faire face aux crises économique et couvrir leurs dépenses d’exploitation. Dans le financière et de mettre en œuvre un programme cadre du projet de relèvement social, le LFF de réforme complet, le LFF s’attachera a également financé la fourniture de services également à promouvoir la conception et la sociaux à plus de deux mille bénéficiaires mise en œuvre de certaines réformes, tout en vulnérables, notamment des femmes et des continuant à répondre aux besoins immédiats de enfants qui ont survécu ou sont exposés à la 11 violence sexiste, des personnes souffrant de ƒ Dans le cadre des travaux préparatoires aux problèmes de santé mentale, des personnes réformes et à la reconstruction (domaine en situation de handicap, des personnes âgées d’intervention 2), le LFF a aidé l’autorité des et des travailleurs domestiques migrants et marchés publics à internaliser son nouveau réfugiés. Dans le cadre du projet de remise mandat et à élaborer des documents types en état des locaux d’habitation, 13 bâtiments pour la passation des marchés, tandis qu’un du patrimoine à usage d’habitation ont fait examen et une analyse du plan d’action pour la l’objet d’une évaluation approfondie et sont gestion des investissements publics du Liban considérés comme pouvant être remis en sont en cours. Avec l’assistance technique état, et des appels d’offres pour la remise en de la Banque mondiale, le ministère des état (premier lot) et la conception (deuxième Travaux publics et des Transports a finalisé lot) sont en cours pour sept bâtiments. Dans l’élaboration d’un projet de loi sur le secteur le cadre du projet de remise en état de portuaire conformément aux meilleures l’environnement, des dispositions ont été pratiques internationales. prises pour entreprendre des évaluations ƒ L’organe de contrôle indépendant (IOB) et conceptions détaillées pour la gestion chargé de contrôler le Cadre 3RF a été créé et des déchets contaminés par l’amiante et la fonctionne avec le soutien du LFF. Il compte remise en état de l’infrastructure de gestion désormais six membres de la société civile. des déchets solides, dont le début est prévu La charte visant à rendre opérationnel l’IOB a en 2023. été élaborée en consultation avec la Banque ƒ L’appui du LFF au relèvement mondiale et approuvée par les membres de socioéconomique des personnes et au l’OIB. Il est désormais possible de consulter redressement des entreprises a tenu compte en ligne le site Web du Cadre 3RF à l’adresse des besoins différenciés selon le sexe, suivante : https://www.lebanon3rf.org. encouragé la participation des femmes et ƒ Le LFF a encouragé le contrôle indépendant cherché à assurer une plus grande égalité par des tiers du déploiement des vaccins d’accès aux avantages. Dans le cadre du contre la COVID19 financés par la Banque fonds B5, près de 27 % des entreprises mondiale au Liban, qui a donné lieu à des bénéficiant d’un appui au redressement sont milliers de visites de contrôle sur le terrain détenues ou dirigées par des femmes, ce qui afin de garantir un déploiement sûr, efficace se rapproche de l’objectif de 30 % fixé par et équitable des vaccins, conformément aux le LFF. Les dons versés au titre du projet de normes internationales. Les contrôleurs ont relèvement social permettent de financer constaté des améliorations dans de multiples la fourniture de services aux femmes et aux pratiques à la suite des rapports soumis au enfants qui sont exposés ou ont survécu à la ministère de la Santé publique, qui avait pris violence fondée sur le genre, en finançant les des mesures correctives pour renforcer la coûts de fonctionnement de quatre maisons/ qualité des services de vaccination. abris sûrs, en améliorant un centre accueillant ƒ Le Conseil de partenariat du LFF s’est réuni des enfants faisant l’objet de mesures de en avril 2022 pour examiner les progrès de protection judiciaire et en améliorant l’accès la mise en œuvre et les premiers résultats à des services complémentaires et holistiques des projets financés par le LFF ainsi que les et une prise en charge de qualité des cas. contributions des donateurs un an après Sur les 56 appartements situés dans des l’approbation du premier plan de travail de bâtiments historiques qui pourront être remis la LFF en 2021. Les besoins et les priorités de en état dans le cadre du projet de remise en la programmation du LFF ont été examinés état de logements soutenu par le LFF, 10 sont pour 2022 en tenant compte des crises et placés sous la responsabilité d’une femme. des difficultés conjuguées que rencontre actuellement le Liban. Les donateurs du 12 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Résumé LFF, les représentants du gouvernement, les STRUCTURE DU DEUXIÈME Nations unies et les organisations de la société civile (OSC) ont participé à la réunion, qui a RAPPORT ANNUEL DU LFF été coprésidée par le directeur régional de la Banque mondiale et le chef de la délégation Le présent rapport annuel sera axé sur les progrès de l’Union européenne (UE). réalisés dans la mise en œuvre, les difficultés ƒ Cinq consultations techniques avec les rencontrées et les résultats obtenus par le LFF à donateurs ont eu lieu en 2022 pour évaluer ce jour. La première section présente le contexte les progrès, les risques et les difficultés, sectoriel du relèvement, de la reconstruction et tenir des discussions techniques sur et des réformes au Liban. La deuxième section l’établissement de la réserve de projets du donne un aperçu du portefeuille du LFF au cours LFF. En outre, une discussion approfondie de sa deuxième année de mise en œuvre. La a été organisée en novembre 2022 pour troisième section donne des renseignements examiner les difficultés et les obstacles qui détaillés sur l’état de la mise en œuvre, les empêchent la mise en œuvre et les priorités résultats obtenus, les difficultés rencontrées et d’aller de l’avant. les enseignements tirés des projets financés par ƒ Des efforts importants ont été faits pour le LFF. La quatrième section présente un résumé resserrer la collaboration entre les donateurs, des flux financiers du LFF. La cinquième section les bénéficiaires, le gouvernement et les met en évidence les problèmes à caractère agences d’exécution dans le cadre de visites transversal et les enseignements tirés pour le sur le terrain de sites de projets pour les quatre LFF dans son ensemble. La dernière section projets exécutés par les bénéficiaires du LFF. présente les ambitions du LFF pour 2023 et au- En outre, une table ronde a été organisée delà. Les annexes donnent un aperçu des projets avec les bénéficiaires du fonds B5 pour savoir du portefeuille du LFF, d’un cadre de résultats comment le financement les aide à reprendre actualisé, de la déclaration de la coprésidence leurs activités commerciales et comprendre du Cadre 3RF sur la réorientation du champ les difficultés constantes auxquelles ils sont d’application et du mandat du Cadre 3RF et des confrontés. communiqués de presse du LFF publiés en 2022. ƒ En décembre 2022, pour la deuxième année consécutive, le LFF a été récompensé pour son programme comportant plusieurs éléments, en raison de l’importance qu’il accorde à la communication, à la sensibilisation et à la promotion de la visibilité des donateurs, avec en point d’orgue son solide plan de communication et de visibilité. 13 ‫التطورات الرئيســية للصندوق‬ ‫ومما يبعث على األسف أن أزمات لبنان المتفاقمة‪،‬‬ ‫وأدت األزمة‬ ‫َّ‬ ‫اشتدت منذ إنشاء الصندوق االئتماني‪.‬‬ ‫االئتمانــي منذ عام ‪:2022‬‬ ‫ا من‬‫المالية واالقتصادية إلى ضياع مكاسب ‪ 15‬عام ً‬ ‫النمو االقتصادي‪ .‬وفقدت العملة المحلية أكثر من‬ ‫ ƒتلقى الصندوق مساهمات من ستة جهات مانحة‬ ‫‪ 98%‬من قيمتها منذ بداية األزمة‪ ،‬وبلغ معدل التضخم‬ ‫(كندا‪ ،‬والدنمارك‪ ،‬واالتحاد األوروبي‪ ،‬وفرنسا‪،‬‬ ‫في المتوسط ‪ 171%‬في ‪ 2022‬ومن المتوقع أن يظل‬ ‫وألمانيا‪ ،‬والنرويج)‪ ،‬بلغت ‪ 69.98‬مليون دوالر‪.‬‬ ‫وأدى التدهور الحاد‬ ‫َّ‬ ‫في خانة المئات في عام ‪.2023‬‬ ‫ويواصل فريق إدارة برامج الصندوق االئتماني‬ ‫في قيمة العملة‪ ،‬وما اقترن به من تضخم جامح‪ ،‬إلى‬ ‫َّ‬ ‫يتلقى‬ ‫َّ‬ ‫ويتوقع أن‬ ‫سعيه الحثيث لجمع المساهمات‪،‬‬ ‫انخفاض حاد في قيمة المرتبات‪ ،‬األمر الذي أفضى‬ ‫تعهدات إضافية من المانحين خالل عام ‪.2023‬‬ ‫إلى خروج كثير من العمال المهرة من القطاع العام‪،‬‬ ‫ا في التعافي‬ ‫ا كبير ً‬‫حقق الصندوق االئتماني تقدم ً‬‫ ƒ َّ‬ ‫تبقى من موظفي الخدمة المدنية‬ ‫َّ‬ ‫بينما يزاول من‬ ‫االجتماعي واالقتصادي وتعافي قطاع األعمال‬ ‫ا في األسبوع تقريباً‪ .‬وأدى كل ذلك‬ ‫عملهم يوم ً‬ ‫ا واحد ً‬ ‫(محور التركيز‪ .)1‬ودعم الصندوق االئتماني‪ ،‬صندوق‬ ‫إلى انهيار حاد في مستويات تقديم الخدمات العامة‪،‬‬ ‫إعادة بناء مؤسسات األعمال في بيروت على نحو‬ ‫ومزيد من التدهور في أوضاع المالية العامة‪ .‬وكان‬ ‫ا إلى ‪ 1850‬من المنشآت‬ ‫قدم منح ً‬ ‫أفضل (‪ ،)B5‬والذي َّ‬ ‫أن أكثر من نصف‬‫قدر َّ‬‫ي َّ‬ ‫األثر االجتماعي لألزمة كارثياً‪ :‬إذ ُ‬ ‫ا تمتلكها‬ ‫الصغيرة والمناهية الصغر‪ ،‬ثلثها تقريب ً‬ ‫السكان أصبحوا يعيشون تحت خط الفقر الوطني‪ .‬وأدى‬ ‫أو تقودها نساء‪ ،‬واختار ثالث مؤسسات للتمويل‬ ‫شغور منصب رئاسة الجمهورية‪ ،‬وتصريف األعمال‬ ‫األصغر‪ ،‬لتقديم تمويل إليها‪ ،‬لتغطية مصاريفها‬ ‫على المستوى الحكومي لفترات طويلة‪ ،‬إلى تقويض‬ ‫التشغيلية‪ .‬وفي إطار مشروع التعافي االجتماعي‪،‬‬ ‫ا في تنفيذ إصالحات‬ ‫الجهود الرامية إلى المضي قدم ً‬ ‫دعم الصندوق االئتماني أيضاً‪ ،‬تقديم خدمات‬ ‫ملحة على صعيد االقتصاد الكلي‪ ،‬والقطاع المالي‪،‬‬ ‫اجتماعية إلى أكثر من ألفي مستفيد من الشرائح‬ ‫وإدارة المالية العامة‪ ،‬والحوكمة‪.‬‬ ‫األكثر احتياجاً‪ ،‬بينهم نساء وأطفال كانوا ضحايا‬ ‫وستنصب أولوية الصندوق االئتماني لعام ‪ 2023‬على‬ ‫للعنف القائم على النوع االجتماعي‪ ،‬أو معرضين‬ ‫نى للصندوق أن‬ ‫اإلسراع بتنفيذ المشاريع‪ ،‬حتى يتس َّ‬ ‫لخطر هذا العنف‪ ،‬وأشخاص يعانون من تحديات‬ ‫نفذ ارتباطاته على الرغم من كل التحديات‪ .‬وبالنظر‬ ‫ي ِّ‬ ‫ُ‬ ‫في الصحة العقلية‪ ،‬باإلضافة إلى ذوي اإلعاقة‪،‬‬ ‫إلى الحاجة الملحة لتدعيم الوظائف الرئيسية للقطاع‬ ‫وكبار السن‪ ،‬ونازحين والجئين يعملون في الخدمة‬ ‫العام‪ ،‬في معالجة األزمات االقتصادية والمالية‪،‬‬ ‫بالمنازل‪ .‬وفي إطار مشروع إعادة تأهيل المساكن‪،‬‬ ‫خضع ‪ 13‬من المباني التراثية السكنية لتقييم شامل‪،‬‬ ‫ا على‬‫كز الصندوق أيض ً‬‫سير ِ ّ‬ ‫وتنفيذ برنامج شامل لإلصالح‪ُ ،‬‬ ‫دعم تصميم وتنفيذ إصالحات محددة‪ ،‬مع االستمرار في‬ ‫وتعتبر في حاجة إلى ترميم شامل‪ ،‬وتجري مناقصة‬ ‫العمل على تلبية احتياجات التعافي الفورية‪ ،‬من خالل‬ ‫إلرساء عقود إعادة الترميم (الدفعة األولى)‪،‬‬ ‫ا إلعادة التوجيه اإلستراتيجي‬ ‫مشاريعه الجارية‪ ،‬وفق ً‬ ‫مبان‪.‬‬ ‫ٍ‬ ‫وعمليات التصميم (الدفعة الثانية) لسبعة‬ ‫وفي إطار برنامج تعافي البيئة‪ُ ،‬‬ ‫إلطار اإلصالح والتعافي وإعادة اإلعمار‪ .3RF‬ويتسق‬ ‫أجريت استعدادات‬ ‫سهل تحديد‬‫ي ِّ‬ ‫هذا مع النهج التدريجي للصندوق‪ ،‬الذي ُ‬ ‫لتنفيذ تقييمات وتصميمات تفصيلية إلدارة نفايات‬ ‫أولويات االحتياجات وتسلسلها‪ ،‬من أجل تلبية احتياجات‬ ‫الهدم الملوثة باإلسبستوس‪ ،‬وإعادة تأهيل البنية‬ ‫التعافي قصيرة األجل‪ ،‬وفي الوقت نفسه تهيئة‬ ‫التحتية إلدارة المخلفات الصلبة‪ ،‬والتي من المقرر‬ ‫الظروف لتقديم دعم متوسط األجل لعملية إلصالح‬ ‫أن تبدأ في ‪.2023‬‬ ‫وإعادة اإلعمار‪ .‬وتتيح هذه المرونة للصندوق االئتماني‬ ‫ ƒشمل دعم الصندوق االئتماني للتعافي االجتماعي‬ ‫اغتنام الفرص عند ظهورها للنهوض بمبادرات اإلصالح‬ ‫االقتصادي وتعافي قطاع األعمال‪ ،‬دراسة‬ ‫والتعاون مع الحكومة‪.‬‬ ‫االحتياجات المختلفة مع مراعاة المرأة والفوارق‬ ‫بين الجنسين‪ ،‬والتشجيع على مشاركة النساء‪،‬‬ ‫والسعي من أجل زيادة التكافؤ في الحصول على‬ ‫المنافع‪ .‬وفي إطار صندوق إعادة بناء مؤسسات‬ ‫األعمال في بيروت على نحو أفضل (‪ ،)B5‬حصل‬ ‫قرابة ‪ 27%‬من المنشآت على دعم للتعافي‪ ،‬وهذه‬ ‫المنشآت تمتلكها أو تقودها نساء‪ ،‬وهذه النسبة‬ ‫‪14 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022‬‬ ‫ملخص‬ ‫ملخص‬ ‫عرض عام‬ ‫خصص للبنان (‪ ،)LFF‬هو صندوق متعدد المانحين‪،‬‬ ‫الصندوق االئتماني ُ‬ ‫الم َّ‬ ‫نشئ في ديسمبر‪/‬كانون األول ‪ ،2020‬في أعقاب كارثة‬ ‫مدته ‪ 5‬سنوات‪ُ ،‬‬ ‫أ ِ‬ ‫انفجار مرفأ بيروت‪ ،‬في ‪ 4‬أغسطس‪/‬آب‪ ،‬وبعد تدشين إطار اإلصالح والتعافي‬ ‫وإعادة اإلعمار (‪ .)3RF‬وقد تلقى الصندوق حتى اآلن‪ ،‬مساهمات سخية من‬ ‫حكومات كندا والدنمارك وفرنسا وألمانيا والنرويج‪ ،‬ومن االتحاد األوروبي‪.‬‬ ‫نشئ الصندوق لتلبية االحتياجات الفورية لعملية التعافي االجتماعي‬ ‫ُ‬ ‫وأ ِ‬ ‫ا من السكان‪ ،‬ومؤسسات األعمال التي‬ ‫واالقتصادي‪ ،‬للفئات األشد احتياج ً‬ ‫تضررت من انفجار مرفأ بيروت‪ ،‬وإلرساء األسس الالزمة لتحقيق التعافي‬ ‫على المدى المتوسط‪ ،‬وإعادة إعمار مرفأ بيروت واألحياء المتضررة على‬ ‫ويعطي الصندوق أولوية لثالثة مجاالت لإلجراءات التدخلية‪)1 :‬‬ ‫نحو مستدام‪ُ .‬‬ ‫التعافي االجتماعي واالقتصادي وتعافي قطاع األعمال؛ ‪ )2‬تهيئة الظروف‬ ‫لإلصالح وإعادة اإلعمار؛ و‪ )3‬تعزيز التنسيق والمتابعة والمساءلة والرقابة‬ ‫ضمن إطار اإلصالح والتعافي وإعادة اإلعمار ‪.3RF‬‬ ‫ثروا بانفجار مرفأ‬‫وساعد الصندوق منذ إنشائه في إعطاء بصيص أمل لمن تأ َّ‬ ‫مولها‬ ‫عقدة‪ ،‬فإن المشاريع التي َّ‬ ‫الم َّ‬ ‫بيروت‪ .‬وعلى الرغم من بيئة التشغيل ُ‬ ‫الصندوق االئتماني حقَّ قت إنجازات كبيرة في العام الماضي‪ .‬فقد َّ‬ ‫قدم‬ ‫ا إلى ‪ 1850‬من منشآت األعمال الصغيرة والمتناهية الصغر‪،‬‬ ‫الصندوق مِ نح ً‬ ‫وكذلك إلى تسع منظمات غير حكومية محلية‪ ،‬والتي تدعم تقديم خدمات‬ ‫اجتماعية إلى آالف المستفيدين من الفئات األشد احتياجاً‪ .‬ويدعم الصندوق‬ ‫االئتماني أيضاً‪ ،‬تصميم وتنفيذ اإلصالحات على مستوى السياسات العامة‪،‬‬ ‫ويساعد على تدعيم المؤسسات الرئيسية في مجاالت اإلدارة المالية العامة‪،‬‬ ‫والمشتريات العامة‪ ،‬واإلصالح في مجال مكافحة الفساد‪ .‬وعالوةً على‬ ‫ذلك‪ ،‬ساعد الصندوق على ضمان التوزيع اآلمن والفعال والمنصف للقاحات‬ ‫فيروس كورونا (كوفيد‪ .)-19‬ويشكل الصندوق أداة مرنة لدعم أولويات إطار‬ ‫اإلصالح والتعافي وإعادة اإلعمار‪ ، 3RF‬وفي هذا اإلطار‪ ،‬يقترح أنشطة جديدة‬ ‫في محفظة المشاريع بالتعاون مع المانحين وأصحاب المصلحة‪.‬‬ ‫بيد أن هناك عدة تحديات متداخلة‪ ،‬تبطئ التقدم في تنفيذ المشاريع التي‬ ‫يمولها الصندوق‪ ،‬وصرف األموال المخصصة ضمنها‪ .‬ويلزم بذل قدر كبير من‬ ‫الوقت والجهد من أجل اتباع إجراءات العناية الواجبة ضمن مِ نح الصندوق التي‬ ‫لى في الغالب تنفيذها منظمات‬ ‫تنفذها الجهة المتلقية لهذه المنح‪ ،‬وتتو َّ‬ ‫غير حكومية دولية‪ ،‬ووكاالت األمم المتحدة‪ ،‬وكذلك في وضع وتنسيق‬ ‫لب الوضع الراهن‬ ‫نفذين‪ .‬وعالوةً على ذلك‪ ،‬يتط َّ‬ ‫الم ِّ‬ ‫االتفاقات مع الشركاء ُ‬ ‫غير المستقر في لبنان‪ ،‬إعادة تقييم مستمرة لألنشطة من أجل تكييفها مع‬ ‫التطور على أرض الواقع‪ .‬باإلضافة إلى ذلك‪ ،‬تعوق الظروف‬ ‫ُّ‬ ‫األوضاع سريعة‬ ‫المتدهورة في البالد؛ بما في ذلك انخفاض القوة الشرائية‪ ،‬والتكاليف‬ ‫لّدات الكهرباء‪ ،‬ونقص إمدادات الكهرباء‪ ،‬تنفيذ‬ ‫مو ِ‬ ‫المتزايدة للنقل‪ ،‬ووقود ُ‬ ‫المشاريع التي يمولها الصندوق االئتماني‪ .‬ونتيجة لذلك‪ ،‬تم صرف نحو ثلث‬ ‫َّ‬ ‫يتحقق بعد‬ ‫مبالغ التمويل التي ارتبط الصندوق االئتماني بتقديمها‪ ،‬ولم‬ ‫كثير من النتائج المنشودة‪.‬‬ ‫ٌ‬ ‫‪15‬‬ ‫هيكل التقرير الســنوي‬ ‫الثانــي للصندوق االئتماني‬ ‫خصص‪ ‬للبنان‬‫الم َّ‬ ‫ُ‬ ‫كز هذا التقرير السنوي على سير تنفيذ المشاريع‬ ‫سير ِ ّ‬ ‫ُ‬ ‫التي يمولها الصندوق‪ ،‬والتحديات التي يواجهها‪،‬‬ ‫والنتائج التي تحققت حتى اآلن‪ .‬ويصف القسم األول‬ ‫من التقرير السياق القطاعي للتعافي وإعادة اإلعمار‬ ‫واإلصالح في لبنان‪ .‬ويتضمن القسم الثاني عرض ً‬ ‫ا‬ ‫ا لمحفظة مشاريع الصندوق خالل السنة الثانية‬ ‫عام ً‬ ‫ويقدِ ّ م القسم الثالث تفاصيل بشأن وضع‬ ‫من التنفيذ‪ُ .‬‬ ‫التنفيذ والنتائج والتحديات‪ ،‬والدروس المستفادة من‬ ‫عملية تنفيذ المشاريع التي يمولها الصندوق‪ .‬ويلخص‬ ‫لّط‬‫ويس ِ‬ ‫القسم الرابع التدفقات المالية للصندوق‪ُ .‬‬ ‫القسم الخامس الضوء على التحديات المشتركة‪،‬‬ ‫والدروس المستفادة من الصندوق االئتماني ككل‪.‬‬ ‫ويتطرق القسم األخير إلى طموحات الصندوق لعام‬ ‫ا للمشاريع‬ ‫‪ 2023‬وما بعدها‪ .‬وتقدِ ّ م المرفقات عرض ً‬ ‫ا عام ً‬ ‫ا إلطار النتائج‪ ،‬وبيان‬ ‫في محفظة الصندوق‪ ،‬وتحديث ً‬ ‫الرئاسة المشتركة إلطار اإلصالح والتعافي وإعادة‬ ‫اإلعمار ‪ ،3RF‬بشأن إعادة توجيه نطاق عمل اإلطار‬ ‫واختصاصه والبيانات الصحفية للصندوق التي صدرت‬ ‫في ‪.2022‬‬ ‫‪16 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022‬‬ ‫ملخص‬ ‫ƒاجتمع مجلس شراكة الصندوق االئتماني في‬ ‫ ‬ ‫تقترب من المستوى الذي يستهدفه الصندوق‬ ‫أبريل‪/‬نيسان ‪ 2022‬لمناقشة سير تنفيذ األنشطة‪،‬‬ ‫قدمة‬ ‫الم َّ‬ ‫ُ‬ ‫االئتماني‪ ،‬والبالغ ‪ .30%‬تدعم المنح‬ ‫والنتائج األولية للمشاريع التي يمولها الصندوق‪،‬‬ ‫في إطار مشروع التعافي االجتماعي‪ ،‬تقديم‬ ‫وكذلك مساهمات المانحين‪ ،‬بعد مرور عام على‬ ‫الخدمات للنساء واألطفال المعرضين لخطر العنف‬ ‫الموافقة على خطة عمل الصندوق األولى في‬ ‫القائم على النوع االجتماعي‪ ،‬أو كانوا ضحايا لهذا‬ ‫‪ .2021‬ونوقشت احتياجات الصندوق االئتماني‬ ‫العنف‪ ،‬وذلك بدعم المصاريف التشغيلية ألربعة‬ ‫من البرامج وأولوياته لعام ‪ ،2022‬بالنظر إلى‬ ‫بيوت آمنة‪/‬مالجئ‪ ،‬وتطوير مؤسسة لرعاية‬ ‫األزمات والتحديات المتفاقمة التي تعصف بلبنان‪.‬‬ ‫األحداث (األطفال) الذين يخضعون لتدابير وقائية‬ ‫وحضر هذا االجتماع‪ ،‬ممثلين عن الجهات المانحة‬ ‫قضائية‪ ،‬وتحسين الوصول إلى الخدمات التكميلية‬ ‫والحكومة‪ ،‬واألمم المتحدة‪ ،‬ومنظمات المجتمع‬ ‫والتخصصية‪ ،‬وإدارة هذه الحاالت على نحو يتسم‬ ‫المدني‪ ،‬وشارك في رئاسته المدير اإلقليمي‬ ‫بالجودة‪ .‬وفي إطار مشروع إعادة ترميم المساكن‬ ‫للبنك الدولي‪ ،‬ورئيس بعثة االتحاد األوروبي‪.‬‬ ‫الذي يسانده الصندوق االئتماني‪ ،‬بلغ عدد الوحدات‬ ‫ƒتم عقد خمس جلسات تشاور تقنية مع ممثلي‬ ‫ ‬ ‫التي ترأسها نساء في المباني األثرية التي تحتاج‬ ‫المانحين خالل عام ‪ ،2022‬لتقييم التقدم المحرز‬ ‫إعادة ترميم ‪ 10‬وحدات من أصل ‪ 56‬وحدة سكنية‪.‬‬ ‫والمخاطر والتحديات القائمة‪ ،‬وإجراء مناقشات‬ ‫ ƒفي إطار تهيئة الظروف لإلصالح وإعادة اإلعمار‬ ‫تقنية بشأن إعداد مشاريع الصندوق الجاهزة‬ ‫(محور التركيز ‪ ،)2‬يدعم الصندوق االئتماني‪ ،‬هيئة‬ ‫للتنفيذ‪ .‬وعالوةً على ذلك‪ ،‬أجريت مناقشات‬ ‫الشراء العام في جهودها في النهوض بتفويضها‬ ‫متعمقة في نوفمبر‪/‬تشرين الثاني ‪ 2022‬لبحث‬ ‫الجديد‪ ،‬وإعداد وثائق مناقصات موحدة‪ ،‬وفي‬ ‫التحديات والعقبات التي تعوق التنفيذ‪ ،‬وأولويات‬ ‫الوقت نفسه يتم مراجعة وتحليل خطة عمل إدارة‬ ‫المرحلة المقبلة‪.‬‬ ‫االستثمارات العامة‪ .‬وبمساعدة تقنية من البنك‬ ‫ƒتم بذل جهود حثيثة لتعزيز التعاون بين المانحين‬ ‫ ‬ ‫الدولي‪ ،‬أتمت وزارة األشغال العامة والنقل‪ ،‬وضع‬ ‫والمستفيدين من المشاريع و وممثلي الحكومة‬ ‫سودة قانون قطاع المرافئ‪ ،‬بما يتسق وأفضل‬ ‫م َّ‬ ‫ُ‬ ‫والوكاالت المسؤولة عن تنفيذ الشاريع‪ ،‬من خالل‬ ‫الممارسات الدولية‪.‬‬ ‫زيارات ميدانية لمواقع المشاريع األ{بعة التي‬ ‫أنشئت هيئة اإلشراف المستقلة‪ ،‬وهي آلية‬ ‫ ƒُ‬ ‫يمولها الصندوق‪ .‬وباإلضافة إلى ذلك‪ ،‬تم عقد‬ ‫مستقلة لتوفير رقابة واسعة النطاق على تنفيذ‬ ‫اجتماع مائدة مستديرة جمع الممثلين عن المانحين‬ ‫إطار اإلصالح والتعافي وإعادة اإلعمار‪ .3RF‬وتعمل‬ ‫بعدد من المستفيدين من صندوق إعادة بناء‬ ‫بدعم من الصندوق االئتماني‪ .‬وتم توسيع‬ ‫ٍ‬ ‫الهيئة‬ ‫مؤسسات األعمال في بيروت(‪ )B5‬للتعرف على‬ ‫عضوية الهيئة لتضم ستة ممثلين عن المجتمع‬ ‫كيف يساعدهم الصندوق في استئناف أعمالهم‪،‬‬ ‫المدني‪ .‬وتم إعداد ميثاق تفعيل هيئة اإلشراف‬ ‫وفهم التحديات المستمرة التي يواجهونها‪.‬‬ ‫المستقلة‪ ،‬بالتشاور مع البنك الدولي‪ ،‬ووافق‬ ‫ƒوفي ديسمبر‪/‬كانون األول ‪ ،2022‬حصل الصندوق‬ ‫ ‬ ‫عليه أعضاؤها‪ .‬كما تم إطالق الموقع اإللكتروني‬ ‫االئتماني على جائزة البرنامج الشامل للسنة الثانية‬ ‫إلطار اإلصالح والتعافي وإعادة اإلعمار على شبكة‬ ‫ا لتركيزه الشديد على االتصاالت‬ ‫على التوالي‪ ،‬تقدير ً‬ ‫اإلنترنت‪.https://www.lebanon3rf.org :‬‬ ‫والتواصل والتوعية‪ ،‬و إبراز دور المانحين‪.‬‬ ‫ ƒدعم الصندوق االئتماني عملية المراقبة الخارجية‬ ‫المستقلة لتوزيع لقاحات كورونا (كوفيد‪ ،)19-‬التي‬ ‫تم تمويلها من البنك الدولي في لبنان‪ ،‬وهو ما‬ ‫كد‬ ‫أدى إلى آالف من زيارات المتابعة الميدانية‪ ،‬للتأ ُّ‬‫َّ‬ ‫من التوزيع اآلمن والفعال والمنصف للقاحات وفق ً‬ ‫ا‬ ‫ا‬‫للمعايير الدولية‪ .‬والحظ القائمون بالمتابعة تحسن ً‬ ‫في العديد من الممارسات في أعقاب تقارير تم‬ ‫تقديمها إلى وزارة الصحة العامة‪ ،‬التي اتخذت‬ ‫إجراءات تصحيحية لتعزيز جودة خدمات التطعيم‪.‬‬ ‫‪17‬‬ CONTEXT The Lebanon Financing Facility (LFF) was established in December 2020 in response to an urgent need to pool and channel donor grant resources to finance the immediate socio-economic recovery of Beirut, catalyze much needed reform efforts and prepare the ground for medium-term reconstruction and recovery. On August 4, 2020, a massive explosion at the PoB devastated the city, killing at least 217 people, wounding more than 6,000 and displacing around 300,000 individuals. The explosion caused widespread destruction to homes, businesses and infrastructure, and disrupted economic activity. Damages were estimated between US$3.8-4.6 billion. The PoB explosion further exacerbated the impact of Lebanon’s pre-existing economic and financial crises. In response, the EU, the United Nations (UN), and the World Bank championed a Reform, Recovery and Reconstruction 18 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Context Framework (3RF)1, launched in December 2020 reform agendas to ameliorate the fallout of the as a platform for international support and compounded crises. While trust in governmental increased engagement with CSOs, with the LFF as institutions has been declining for several years, its associated financing mechanism. the inadequate management of the impact of the explosion, combined with the economic and Since the LFF’s establishment, the situation in the financial crises, have undermined trust even country has deteriorated sharply, both in terms further. In a recent survey conducted by the of the socioeconomic effects of the crises and in World Bank among victims of the blast, most of terms of governance. For three years, Lebanon the respondents’ report having “no trust at all” has been impacted by the most devastating in political parties, the Council for Development multi-pronged crisis in its modern history. and Reconstruction (CDR), or municipalities. Lebanon’s total contraction of 37.3 percent in Citizens have been demanding the recovery of real GDP since 2018 – among the worst the world misused public funds, more transparency in the has seen – has already wiped out 15 years of management of public funds and for the immediate economic growth and is scarring the country’s implementation of financial governance reforms potential for recovery. The World Bank estimates to address paramount financial, economic, and real GDP to contract by a further 5.4 percent in social challenges. 2022 assuming continued political paralysis and no implementation of a recovery strategy.2 In An unprecedented institutional vacuum will July 2022, the World Bank reclassified Lebanon likely further delay any agreement on crisis as a lower-middle income country, down from resolution and much needed reforms, sow the an upper-middle income country. The crisis has seeds for further discord and considerably led to a dramatic collapse in basic services and complicate the political process. While Lebanon is also impacting the core functions of the public is no stranger to political paralysis, the price of sector. Losses in economic activity and fiscal an institutional vacuum is at an all-time high as it revenues, coupled with high inflation and poverty impedes decision-making and reform ratification, rates, are exacerbating a range of political, social deepening Lebanon’s long-term economic woes and environmental issues. Prolonged periods of and the plight of the Lebanese people. An IMF caretaker mode for government have also posed program remains elusive as the authorities have challenges in progressing on much-needed yet to complete ten reforms up front. reforms. Various estimates on poverty all point to a significant increase in poverty rates and the Lebanon’s emerging challenges require recovery shrinking of the middle class, with more and more and reform efforts that surpass the reach of households facing challenges in accessing food, responses related to the PoB blast. Considering healthcare, and other basic services. the evolving context and limited progress achieved on 3RF reforms and policy actions, 3RF This socio-economic deprivation has driven a stakeholders have agreed to a reorientation of wedge between the people and the state. Weak the 3RF’s scope and mandate towards prioritizing governance is both a root cause and a major support for the Government of Lebanon (GoL) in impediment to the effective management of implementing a comprehensive reform agenda today’s crises. Deteriorating public governance, that fully aligns with the prior actions introduced compounded by limited fiscal space, has severely by the April 2022 IMF staff-level agreement with worsened the delivery of public services and Lebanon.3 LFF stakeholders are now discussing the quality of infrastructure in virtually all how the 3RF’s reorientation should influence LFF sectors. Pervasive political gridlock has so far priorities and interventions going forward. prevented the swift formulation of policies and 1 The 3RF provides a costed and prioritized plan of key actions over 18 months across various sectors to support the recovery and reconstruction of Beirut. The 3RF also serves as a platform for stakeholder dialogue and lays out an engagement model emphasizing direct support to affected communities through people-centered recovery, while identifying a set of priority reforms as prerequisites for reconstruction. 2 The Lebanon Economic Monitor (LEM) Fall 2022 “Time for an Equitable Banking Resolution” 3 See Annex 3 for the 3RF co-chair statement announcing the new 3RF mandate. 19 20 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 The LFF Portfolio THE LFF PORTFOLIO The LFF serves to pool grant resources and strengthen the coherence and coordination of financing in support of the immediate socioeconomic recovery of vulnerable people and businesses impacted by the PoB explosion. The LFF, administered by the World Bank, provides support to selected priorities of the 3RF framework. The LFF three core focus areas are: ƒ Focus Area 1: Socioeconomic and business recovery ƒ Focus Area 2: Preparing for reform and reconstruction ƒ Focus Area 3: Coordination, monitoring, accountability and oversight The LFF has a 5-year horizon recognizing the time it may take to fully implement priorities identified in the 3RF, and the LFF’s potential role in supporting Lebanon’s medium-term recovery and reconstruction beyond the 3RF’s 18-month period, subject to government progress on fundamental reforms and donor support. 2022 was dedicated to ensuring momentum on the implementation of LFF-funded projects included in the LFF’s 2021 Work Plan, which was endorsed by the Partnership Council (PC) in April 2021 and updated to include a new activity (COVID-19 Vaccination Third-Party Monitoring) in November 2021. Given the instability of the context and the novelty and complexity of implementation arrangements for recipient-executed projects, progress has been slow or delayed for many LFF-funded projects. Several of these projects did not become effective until late 2021 or early- to mid-2022 (see Table 1), thus focus and resources in 2022 were dedicated to establishing and strengthening project implementation arrangements. As a result, disbursements remained relatively low for certain projects as of December 31, 2022 (see Table 2). For these reasons, an annual work plan was not developed in 2022. 21 TABLE 1. PROJECTS ENDORSED IN THE 2021 WORK PL AN Project ID Project Name Approval Date Effectiveness Date Closing Date Recipient-Executed P176013 Building Beirut Businesses Back & July 28, 2021 October 8, 2021 July 31, 2024 Better (B5) Fund P176622 Support for Social Recovery Needs December 23, 2021 April 4, 2022 October 31, 2023 of Vulnerable Groups in Beirut P176577 Beirut Housing Rehabilitation and February 22, 2022 February 23, 2022 December 15, 2024 Cultural and Creative Industries Recovery4 P176635 Beirut Critical Environment May 12, 2022 May 18, 2022 June 30, 2025 Recovery, Restoration and Waste Management Program Bank-Executed P176271 Port of Beirut Reform and January 18, 2021 January 18, 2021 June 30, 2023 Reconstruction P178520 Lebanon-Implementing 3RF January 20, 2022 January 20, 2022 January 1, 2024 Governance Pillar (“Reconstruction with Integrity and Transparency”) P177084 Strengthening 3RF Oversight, August 20, 2021 August 20, 2021 June 13, 2025 Engagement and Monitoring P163476/ COVID-19 Vaccination Third-Party December 3, 2021 December 3, 2021 December 31, 2022 TF0B7558 Monitoring Across the proposed interventions, the LFF work A Gender Approach Note for the LFF was developed plan supports the 3RF cross-cutting priorities of by World Bank gender specialists in March gender, inclusion and transparency. All projects 2021. This note defines the processes in place consider gender-differentiated needs, women’s to support the approach to considering gender- participation and equal access to benefits, and differentiated needs, women’s participation and the work plan includes targeted support for equal access to benefits throughout LFF-financed survivors of sexual and gender-based violence activities. This aims to ensure that the LFF and for women-led businesses. The work plan proactively identifies, addresses and monitors also targets vulnerable groups (including gender gaps and that projects selected for women, youth, people with disabilities, people implementation consider gender equality actions with mental health challenges, old persons, and metrics in a meaningful way. migrants and refugees). Finally, all projects aim to promote citizen and community engagement and improved monitoring with dedicated support to strengthen public and social accountability and create new channels for citizen feedback and involvement. 4 This project includes a Bank-executed component 22 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 The LFF Portfolio To operationalize this approach, the LFF Program tackle, as well as potential measures to address Management Team draws on the experience and and monitor these gaps. During implementation, expertise of the World Bank Lebanon Gender each project incorporates a Gender Specialist Lead, who also functions as the LFF Gender as part of the team to provide technical (topic) Coordinator. To strengthen project design to expertise and operational (reporting, monitoring, maximize benefits for women, project teams communications) support, as well as to ensure engage the LFF Gender Coordinator as well as coordination, engagement and outreach with other gender specialists early on during the design relevant stakeholders. stage to discuss gender gaps the project aims to TABLE 2. PROJECT ALLOC ATIONS AND DISBURSEMENTS Project Implementation Status Grant Amount Disbursed Modality Allocated (US$ million) (US$ million) as of 12/31/22 Focus Area 1: 53.00 15.62 Socioeconomic and business recovery Building Beirut Businesses Back & Better (B5) Recipient Active 25.00 10.59 Fund Executed Support or Social Recovery Needs of Vulnerable Recipient Active 5.00 0.70 Groups in Beirut Executed Beirut Housing Rehabilitation and Cultural Recipient and Active 13.00 3.36 Heritage and Creative Industries Recovery Bank Executed* Beirut Critical Environment Recovery, Recipient Active 10.00 0.97 Restoration and Waste Management Program Executed Focus Area 2: 0.75 0.12 Preparing for reform and reconstruction Reconstruction with Integrity and Transparency Bank Executed Active 0.50 0.11 Port of Beirut Reform and Reconstruction Bank Executed Active 0.25 0.01 Focus Area 3: 1.85 1.29 Coordination, monitoring, accountability and oversight Strengthening 3RF Oversight, Engagement and Bank Executed Active 0.85 0.34 Monitoring COVID-19 Vaccination Third-Party Monitoring Bank Executed Closed 1.00 0.95 TOTAL** 55.60 17.03 * Recipient Executed: US$12.75 million and Bank Executed: US$0.25 million. ** These amounts only reflect the grant commitments and disbursements for active LFF-funded projects. This excludes information on grants for project preparation and supervision as well as program management and administration, which are reflected in the Financial Highlights section below. 23 LFF ACTIVITIES AND HIGHLIGHTS 24 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights FOCUS AREA 1 SOCIOECONOMIC AND BUSINESS RECOVERY This Focus Area aims to support the immediate social recovery needs of vulnerable groups following the PoB explosion. 25 Building Beirut Businesses Back & Better ƒ 2,189 grant applications were received (B5) Fund – US$25 million (351 through Kafalat and 1,838 through participating MFIs), of which 591 were Launched in November 2021, the B5 Fund women owned or led businesses and 15 were aims to support the recovery of MSEs directly disability owned or led businesses. 5,100 affected by the PoB explosion and sustain the potential beneficiaries have been identified. operations of eligible MFIs. It will also help ƒ 1,850 grants were approved for disbursement preserve private sector jobs and reduce business (290 through Kafalat and 1,560 through closures and layoffs. The blast caused substantial participating MFIs). physical damage and loss of stock and inventory ƒ The average size of the grants for MSEs was to approximately 10,000 privately owned US$4,700 (this includes US$11,800 for MSEs businesses located within a 5 kilometer radius of applying through Kafalat and US$3,400 for the explosion site. It significantly affected firms’ MSEs applying through MFIs). On average, productivity and revenue generation and led to MSEs reported US$17,400 in terms of substantial layoffs and bankruptcies. The project recovery needs, with US$81,100 for MSEs is being implemented by Kafalat. applying through Kafalat (formal Joint Stock or Limited Liability MSEs) and US$5,300 for Implementation Status MSEs applying through MFIs (informal MSEs, The B5 Fund has brought a beacon of hope to the Sole Proprietorship, General and Limited people impacted by the PoB explosion. Thus far, Partnerships). the B5 Fund has provided grants to approximately ƒ 3 MFIs were selected to receive US$5 million 1,850 MSEs – 43 percent of the project’s target of grants to cover part of their operational 4,300 MSEs. The grants helped to cover expenses expenses over 18 months. The B5 disbursed related to working capital, technical services, nearly US$1 million to the 3 selected MFIs equipment and repairs. 27 percent of the selected (Majmoua, Vitas and Ibdaa) in the form of MSEs are women-owned or led. Efforts were also monthly operational grants. made to identify and support entrepreneurs and businesses who directly or indirectly suffered “Not only was I impacted from a disability as a result of the blast. The B5 in my livelihoods, but I was Fund also selected 3 MFIs out of the target of up to 5 eligible MFIs and initiated grant support to also affected psychologically. cover their operational expenses. Thanks to the grant, I was able to repair and reopen my shop” The B5 Fund follows a zoning approach whereby eligible beneficiaries are prioritized based on – Hussein, owner of mini-market their proximity to the explosion site. It also adopts in the vicinity of the Port a simple design that permits the deployment of grants in a transparent, timely and cost-efficient Challenges manner to businesses, particularly vulnerable ones directly through specialized institutions. ƒ Delays due to increased due diligence: Due Disbursement to grantees is conditional on to the severe crises, potential beneficiaries the completion of a screening to confirm their are facing high financial insecurity, extremely damage status based on initial assessments limited access to finance, and multiple conducted by the Lebanese Armed Forces (LAF) emerging needs, which together increase the directly following the blast and to ensure that the risk of improper use of B5 funds. Awarding same expense is not financed more than once conditional grants to informal firms, including from different sources. self-employed and homebased entrepreneurs, requires increased due diligence even under Results normal circumstances, but even more so in crisis settings. This requires additional ƒ The B5 Fund committed US$8.8 million and monitoring. disbursed US$7.1 million in the form of grants ƒ Constrained implementation capacity: The to MSEs, representing almost half of the total unprecedented crisis context, currency funds allocated for grants to MSEs. devaluation, insecurity and the inability to 26 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights retain employees all limit the implementation services, while at the same time contributing to capacity of project partners and beneficiaries, a more sustainable, effective and accountable causing further delays. NGO sector. The vulnerable groups prioritized ƒ Limited trust and skepticism of grant and supported under the project include women programs: The high number of grant programs and children who are survivors or at-risk of that were promised by donors but have not gender-based violence (GBV), people with mental yet disbursed any funding has led to some health challenges, persons with disabilities, older hesitancy to engage with the B5 Fund among persons, and migrant and refugee domestic potential beneficiaries; this has also impacted workers. the quality of applications. ƒ Difficulty in meeting fiduciary and safeguards Implementation Status standards: Compliance with procurement, The project was approved by the World Bank on financial, environmental and social standards, December 23, 2021 and declared effective on April even if simplified to the extent possible, is 4, 2022. Since then, nine NGO partners have been not easy for vulnerable groups. Specifically selected by IRC to implement 12 sub-projects that for financial management, there are will benefit vulnerable groups targeted under the challenges in collecting the financial reports project. This comprises 7 sub-grant agreements from beneficiaries and MFIs in addition to that benefit women and children who are at- supporting documentation. The first audit risk or survivors of GBV, including by supporting report of the project is due by June 30, 2023. the operating costs of four safe houses/shelters, Lessons Learned improving one facility for children under judicial protective measures, and improving access to ƒ Achieving intended development outcomes in complementary, holistic services and quality severe crisis contexts such as Lebanon requires case management. A further two sub-grants a higher tolerance for implementation delays benefit persons facing mental health challenges and risks. via support to the national mental health and ƒ Accelerating project implementation can suicide prevention hotline, improving a digital come with risks and tradeoffs, particularly self-help tool for combatting depression (Step- in crisis settings where there are heightened by-Step), and generating a training curriculum on concerns related to grant oversight and mental health in the workplace. The remaining monitoring. three sub-grants are focused on older persons ƒ Striking a balance between speed of and persons with disabilities. They aim to improve disbursement and ensuring money is spent the targeting and tracking of those who need care properly requires continuous adaptation and and extend access to quality in-home and facility- strong hands-on support for the implementing based support. agency. The cumulative value of commitments for the 12 sub-projects is US$3.39 million, excluding the Support for Social Recovery Needs value of procurement to be done on behalf of of Vulnerable Groups in Beirut select actors due to identified capacity constraints. (GBV, psychosocial support, care for The IRC is in the process of signing two new sub- projects aimed at the provision of medical and the elderly) – US$5 million educational services for beneficiaries in GBV The Social Recovery Project aims to support the shelters. In addition, two sub-projects related immediate social recovery needs of vulnerable to mental health are yet to be initiated as NGO groups following the PoB explosion. It is being implementing partners have not been identified. implemented by the International Rescue As such, while disbursement was slow during Committee (IRC) and works through a sub- the project’s first months, due to the complexity granting mechanism that enables IRC to provide of establishing a sub-granting mechanism that financing to non-government stakeholders who complied with World Bank rules and regulations have a track record of providing social recovery and the need for IRC to subsequently conduct services in Beirut and Mount Lebanon. This enhanced due diligence of prospective NGO allows the project to contribute to improvements partners, this is expected to increase significantly in access to and the quality of critical social in the next six months. 27 In parallel, IRC is continuing to deliver rolling the Ministry of Public Health’s National capacity building support to the various NGOs Mental Health Program (MOPH-NMHP). supported under the project. Tailored capacity ƒ Total beneficiaries also include 222 building support plans have been developed by individuals who are receiving social services IRC for every NGO partner engaged via a highly at GBV safe houses and shelters (including 24 participatory, collaborative approach. These boys under judicial protection measures). support plans are formed prior to the signing of ƒ Under the project’s efforts to improve access the subgrant agreement between IRC and the to quality healthcare and referral services for partner NGO, and thus form an integral part of older persons and persons with disabilities, the agreements’ terms (including in some cases 241 beneficiaries have been reached (174 milestones in capacity development being linked persons with disabilities and 67 older persons). to payment terms). Activities conducted within ƒ The project has also trained 86 NGO care this workstream include but are not limited to: workers across the various social services being supporting the development and enacting of supported. This has included 39 individuals improved financial management policies and benefiting from training on improved GBV practices; delivering trainings on reporting tools Information Management System use and and requirements and monitoring and evaluation case management, 13 e-helpers who are (M&E) processes; and sharing lessons and supporting beneficiaries of the free Step-by- best practices to help strengthen and/or build Step mental health self-help application, and sufficient grievance mechanisms. 34 workers delivering enhanced services to persons with disabilities and older persons. Results Social Recovery Impacts: Given the relative newness of the project’s multiple sub-grant agreements with local NGOs, up-to-date results across the project’s multiple Tod’s Story indicators are not yet available. The latest preliminary results reported are as follows: Tod,5 who is two years and nine months old, lives with his family of four in the Dahr El Mghara area ƒ Project investment to-date has benefited of Mount Lebanon. He was conceived to the joy 2,070 vulnerable beneficiaries overall – nearly of his parents, after they had struggled for some 25 percent of the project’s target of 8,387. time and already lost two baby girls. After he ƒ The majority of these beneficiaries (nearly was born prematurely, Tod’s parents learned he 78 percent) are individuals benefiting from had plegia and needed lifelong medical support. increased access to mental health services, While managing to meet these needs for some including the national mental health hotline time, the family found themselves unable to do (Lifeline) and the “Step-by-Step” mental so once his grandmother fell ill and Tod’s father health program. lost his job following the PoB blast. - The national mental health hotline (Lifeline) is now operating on an extended 24 hour/7 One day, Caritas Lebanon’s Mobile Medical Unit days a week basis and is supported by 26 (MMU) arrived in Tod’s neighborhood as part of newly recruited volunteer operators. The their new LFF-financed project offering support to facility has received and responded to older persons and people with disabilities. Fully 6,326 calls while supported by the project. staffed with a pediatrician, general practitioner, - 533 new beneficiaries were registered to and nurse and medical provisions, the MMU the “Step-by-Step” mental health platform, quickly assessed the medical needs of Tod and his a digital intervention designed to treat grandmother and drew up a care plan for them. As depression through the user’s internet- a result, Tod now benefits from the physiotherapy connected device. Each beneficiary will sessions he needs in order to improve his quality receive further guidance and support of life. In addition, both Tod and his grandmother from the e-facilitators who have now been are to receive assistive devices, medications, assigned to them. This activity is being specialized consultations, diagnostic tests, and implemented in close coordination with regular follow-up visits from the MMU. 5 Tod’s name has been changed to protect his privacy. 28 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights “It is the first time I feel safe” ƒ Simplified implementation arrangements, as currently exist within the project, are key to the – 26 year-old Lebanese female admitted to Tabitha’s shelter success of the World Bank-IRC collaboration. and benefitting from its services These arrangements were achieved following an extended period of challenges, learning and fine tuning. This required a significant Challenges investment of time and resources by both IRC ƒ Implementation Delays were initially linked and the World Bank as, unlike working with to slow project start-up and administrative UN agencies, no framework agreement exists preparations. Subsequently, delays have to guide the World Bank’s relationship with resulted from heavy due diligence conducted INGOs acting as the recipient of a grant. by IRC to ensure risks are mitigated and the ƒ Scaling-up the NGO funding mechanism has process of ensuring NGO partners are aware strong potential to support service delivery of World Bank requirements. processes in advance of broader reform and ƒ Staff turnover resulting from the volatile recovery efforts. While the start-up has been situation in Lebanon has affected both IRC challenging, the NGO funding mechanism is and its partners on the project. now in place and working as envisioned. There ƒ The need to re-assess targets and in-take is considerable opportunity to further scale capacities due to several factors, including the mechanism for the benefit of Lebanon’s changes in funding levels (due to the shortfall most vulnerable. created by the closing of the SPF grant in June 2022), delayed effectiveness and overestimation of GBV shelters’ capacity and turnover rates. ƒ Highly fluctuating prices given the evolving situation in Lebanon have contributed to Letter from a Kenyan complexity in budgeting and implementation woman to Caritas of subgrants. ƒ Slight delays in submission of financial reports by NGOs; the financial reports are being reviewed with the first audit report of the project expected to be submitted by June 30, 2023. Lessons Learned ƒ NGOs remain an important focal point for investment aimed at preventing further deterioration of Beirut’s social services and the social wellbeing of vulnerable groups. As Lebanon’s multiple crises endure and opportunities to work with and through government services continue to be limited, the social recovery project is more needed than ever before. 29 Beirut Housing Rehabilitation and to the criteria set out in the Project Appraisal Cultural and Creative Industries Document. The remaining buildings require further investigation, which will adopt a “cluster Recovery – US$13 million approach” by prioritizing buildings that are close The Beirut Housing Rehabilitation and Cultural to each other in a spatial cluster or along a street and Creative Industries (CCI) Recovery Project to maximize impacts in each neighborhood. supports rehabilitation of prioritized historic Out of the 18 eligible buildings, a socio- housing for vulnerable people and provides economic assessment and legal review have emergency support to creative practitioners been conducted for 13, out of which eight are and entities following the PoB explosion. The eligible to move to the design phase. In parallel, project became effective in February 2022 and is a prequalification of contractors exercise was implemented by UN-Habitat. concluded, with these contractors eligible and ready to bid for rehabilitation works once the The first component supports the return of design is finalized. Rehabilitation civil works for displaced households to targeted buildings the first batch of four eligible buildings are to be through the rehabilitation of residential heritage launched in May 2023. The design of the second buildings and technical assistance for rental batch of eligible buildings, the permitting process support. The project prioritizes the rehabilitation and the development of the Environmental & of select vacant and structurally damaged Social Management Plan are underway. residential units in historical neighborhoods located within five kilometers from the epicenter The Call for CCI Proposals and Grant Request of the explosion, and that were inhabited by lower forms have been developed and are in the final income and vulnerable households. The second stages of validation. Preliminary community component, implemented by UNESCO through an outreach and stakeholder engagement were UN-to-UN agreement with UN-Habitat, provides completed. Grants to CCI individuals and entities technical assistance and grants to affected will be made in two stages, which are planned cultural entities and practitioners operating in between February and April 2023. A Grant targeted CCI for the development of cultural Approval Committee (GAC) formed of external productions in neighborhoods affected by the experts has been established. The GAC will review explosion. and select successful grant applications using preestablished criteria that prioritize several Implementation Status critical expected impacts, such as neighborhood revitalization, social value, and supporting socio- Significant progress was made during the project’s economically vulnerable individuals and groups. first year of implementation. As of December 31, The first call will commence following the 2022, disbursements reached US$3.33 million, selection of an implementing partner to conduct 26% of the total committed. Implementation full community outreach activities, which is began immediately on the first component almost complete. While the first Call for CCI following the signature of the Grant Agreement proposals was scheduled to launch in November between UN-Habitat and the World Bank, while 2022, a period of enhanced due diligence due to the roll-out of the second component started in the dynamic situation on the ground resulted in September 2022. Project teams were mobilized some unforeseen delays. and implementing partners were brought onboard; a Technical Advisory Committee (TAC) Financial management is on track with financial was established across key relevant stakeholders reports submitted on time by UN-Habitat and the and seven TAC meetings took place; a project latest audit reports will be shared by UN-Habitat Grievance Mechanism (GM) was established; two once published. Delays in disbursements are due community Stakeholder Engagement meetings to the overall delay in project activities. were conducted; a World Bank implementation support mission was completed in addition to bi- Results weekly implementation support virtual meetings; As the project is still in the early stages of and the Project Operations Manual was finalized. implementation, only expected results can be 18 out of 169 assessed buildings are currently shared. To date, the 13 buildings eligible for considered eligible for rehabilitation according the design phase include 56 housing units. This 30 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights represents 35 percent of the total units targeted. ƒ The housing complexities in Beirut are vast, Approximately 100 residents of these buildings are with frequent disputes between owners and expected to benefit from the project, equivalent between owners and tenants concentrated to 18 percent of the end target. Among these in the selected geographic areas. This units, 10 are headed by women (18 percent). This requires rethinking how to adapt the rules percentage may increase when more housing and regulations for these areas to develop units are identified. a solid housing recovery strategy and implementation plan. Challenges ƒ For future projects, the estimation of damages ƒ Data and information on housing was should be based on thorough assessments outdated, missing or inadequate, requiring conducted from both outside and inside the extensive data collection and verification buildings and funding should be allocated to efforts. The complex and dynamic situation in carrying out such survey work. Beirut as well as outdated data on buildings ƒ The implementation timeframe should from different sources meant that multiple consider potential delays arising from the field surveys were required prior to assessing instability of the context, the lack of legal the targeted buildings. It was difficult to documentation, the absence of concerned contact many of the affected households beneficiaries, and the complexities around living outside the target areas due to the lack ownership and tenancy. More flexible criteria of contact details and outdated information should be considered in line with the fragile for owners and tenants of multi-unit and evolving conditions on the ground. buildings. Inadequate information provided ƒ A cluster approach to rehabilitating housing by tenants and owners necessitated rounds and urban environments has the potential to of verification from multiple sources in order maximize benefits for the city’s physical and to get the correct details. Due to the complex socio-economic recovery. legal status of most of the targeted buildings, an extensive review and validation of legal Environmental Recovery and Waste documents was required. These documents Management – US$10 million were difficult to obtain given the “Title Registry” was inaccessible, public institutions The Environmental Recovery and Waste were closed and electronic access was Management project is supporting emergency interrupted or not available. environment control measures in Beirut ƒ Rapid changes in the sector due to the to address the impacts of the August 2020 dynamic situation in the country required PoB explosion, as well as support planning continuous updating of data on potential for longer-term environmental restoration beneficiaries. efforts. Activities include: (i) rehabilitation and ƒ Rehabilitation costs may be higher than operationalization of damaged solid waste estimated during project design based on management infrastructure; (ii) management thorough assessments. of debris, asbestos-contaminated materials and ƒ The UN-UN agreement took a long time hazardous waste generated due to the explosion; to execute due to the extra due diligence and (iii) priority policy and institutional actions required, resulting in delays to the for greening Beirut’s Reconstruction Agenda. implementation of Component 2. Overall, The project is being implemented by the United the execution and management of this Nations Development Program (UNDP). component required a greater level of effort than anticipated. Implementation Status Lessons Learned The project was approved on May 9, 2022 and became effective on May 18, 2022. Subsequently, ƒ The involvement of different public institutions the Project Management Unit (PMU) with and professional stakeholders under the key technical specialists was established by TAC helped to overcome administrative or September 30, 2022 by UNDP. In addition, a Project bureaucratic procedures that would have Coordination Committee (PCC) comprising all the caused additional implementation delays. key stakeholder agencies of the Government was 31 also established and the first meeting of the PCC asbestos contaminated waste management, was held on September 27, 2022. as required by the project. ƒ Selection of the Final Disposal Site for Consultants have been hired to carry out contaminated waste at Bakalian site detailed assessments and prepare designs for the requires support from various government management of asbestos contaminated waste, stakeholders and also the general public. the design and supervision of contaminated UNDP, with the help of an international Construction and Demolition Waste (CDW) consulting agency, is engaging with all the Disposal Site, and rehabilitation of the Coral key stakeholders and conducting necessary solid waste composting facility and Karantina consultations as per the World Bank’s sorting facility. The consultants are expected to Environmental and Social Framework (ESF) to complete these assessments and designs in the ensure that the most suitable site is selected. next few months, and the selection of contractors ƒ Expeditious rehabilitation of damaged and implementation of physical works for the solid waste facilities (Coral and Karantina) management of CDW and rehabilitation of is critical due to the deteriorating solid damaged infrastructure are expected to be waste services in Beirut and Mount Lebanon. initiated in the second half of 2023. Activities UNDP is working towards ensuring that this related to the preparation of a Master Plan for challenge is addressed as quickly as possible, Solid Waste Management in Beirut City and Matn and the works are expected to be initiated in Caz have also been initiated. Priority policy and August or September 2023. institutional actions for Beirut Reconstruction ƒ Efficient operation of Coral and Karantina will be initiated in the second half of 2023. facilities is closely related to the performance Financial management is on track with financial of the overall waste management system reports submitted on time by UN-Habitat and the of Beirut. Considering this, the project is latest audit reports will be shared by UN-Habitat supporting the preparation of the master once published. The project is disbursing as per plan for solid waste management in Beirut the estimates made during appraisal and so and the plan is expected to provide necessary far, has disbursed 9.7 percent of the total grant. strategies to the Government for addressing An additional US$1.5 million is expected to be this issue. disbursed in 2023 and US$1.5 million in 2024. ƒ There could be an inadequate response from bidders/contractors for the works due to the Results economic situation in Lebanon. This could have implications for the timely completion Considering the nature of the project (with two of activities related to the development of an major investments on waste management) asbestos waste contaminated disposal site and the time they require for completion of and rehabilitation of Cora/Karantina waste construction activities, the intermediate and management facilities. To address this issue, outcome-level results of the project are not UNDP will reach out to prospective bidders expected to be achieved until the second and and will also prepare realistic technical third year of implementation (2024-2025). and financial criterion for bidders to ensure Challenges reasonable responses. ƒ Coordination with the Beirut Governorate Lessons Learned and the agency(ies) operating at the Bakalian ƒ The need for close coordination and site for the management of contaminated engagement of all stakeholders is an waste is the key challenge for the project. overarching lesson learned from the project UNDP is conducting regular meetings with implementation so far. UNDP and the World the Beirut Governorate and also the Ministry Bank team are ensuring that this important of Environment to ensure co-ordination and lesson is implemented throughout the project implementation of the activities related to to ensure ownership and sustainability of project investments. 32 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights FOCUS AREA 2 SUPPORTING REFORM AND PREPARING FOR RECONSTRUCTION This Focus Area aims to begin to establish a transparent, accountable, and inclusive policy and institutional framework for Lebanon’s reconstruction and recovery. 33 Reconstruction with Integrity and Authority (PPA), and the new National Anti- Transparency – $US0.5 million Corruption Commission (NACC)), building an effective public investment management (PIM) The first phase of proposed governance activities system, and institutionalizing a new public aims to help build the capacity for a transparent, procurement framework. Activities have been accountable, and inclusive policy and institutional closely coordinated with related activities framework for Lebanon’s reconstruction supported by UN and EU 3RF initiatives. and recovery. Project activities will focus on designing and implementing policy reforms and Implementation Status institutional strengthening in the strategic priority The procurement component aims at supporting areas for governance identified by the 3RF: public the capacity of the PPA. The component is financial management and public procurement, progressing satisfactorily. The project has anticorruption, and justice reform. supported the PPA with internalizing its new Components include strengthening Lebanon’s mandate through training and awareness existing and new oversight institutions (Court of efforts. With the support of an NGO (Gherbal), Accounts, Central Inspection, Public Procurement a guide on the law was issued. The project also supported the development of basic Standard Procurement Documents (SPDs) for Works, Goods, and Consulting Services. All three drafts were submitted in June 2022 and were subject to consultations with the private sector (e.g., contractors’ and engineers’ associations) and implementing agencies (Ministries of Social Affairs, Interior and Municipalities). The SPDs for Works, Goods and Consulting Services have been revised following the integration of comments from the consultation phase in August 2022. The final documents were submitted for peer review and editing. PPA will still need to issue the SPDs in a decree to enforce usage across the country. PIM support has begun with the Ministry of Finance’s Institute of Finance (IOF) as the counterpart. Local consultants have reviewed existing laws and institutional arrangements and produced their required Inception Report in July 2022, which was approved by the task team in August 2022. The consultants have also prepared a Draft Report exploring institutional arrangements for creating a PIM Unit in Lebanon. This Draft Report was submitted in November 2022, the World Bank provided comments in January 2023, and the consultants finalized the Strengthening Public Investment Management in Lebanon report in March 2023. The consultants are now working on a review and analysis of Lebanon’s PIM Action Plan with an eye to updating and revising it. Work with the Court of Accounts (CoA) on forensic audit capacity was delayed in 2022 due to a number of issues with the corporate procurement process. Local consultants were selected in July 2022 and were under contract as of early 34 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights September 2022. An inception meeting was held Challenges with the CoA, local consultants and the World Bank team in early November. The CoA President ƒ Lack of budget and staff capacity: Currently, agreed that the activity should remain focused on the procurement component’s heavy lifting forensic audit and asked the World Bank to provide is done by the public procurement focal practical, hands-on technical assistance through point (the IOF) with little or no resources. training on actual audit examples. In addition, the This situation is not sustainable. Unless the CoA requested that the consultants assist with PPA and IOF get an operating budget, there the development of a plan for the CoA’s role in the is a real threat and risk that these agencies implementation of the Public Procurement Law. will not be able to retain the qualified civil The President also requested that the World Bank servants needed to carry out their mandates. team coordinate its work with the assistance The CoA and NACC suffer from similar issues previously provided by Expertise France. After of lack of budget, missed or small payments some delay the consultants received Expertise to staff and a resulting lack of capacity to France’s materials in March 2023 and have begun absorb World Bank technical assistance. To to plan their inception report and forensic audit address this challenge, local World Bank training program. team members will need to continue their efforts to speak with and meet with agency The new National Anti-Corruption Commission counterparts if and when they are available. (NACC) was established during the first half of ƒ Funding delays: In addition to the impact of 2022. The NACC is being supported by UNDP the financial crises, the NACC is also suffering and began its operations in late summer of through delays in receiving its allocated 2022. The World Bank team met with the funding under the 2022 budget and in receiving new Commissioners during missions in early the State Council’s final approval of its November 2022 and late March 2023 to discuss operating policies and procedures. At present possible technical assistance under this subtask. the NACC Commissioners are working with During its March 2023 mission, the NACC and support from UNDP. They are unable to hire World Bank team agreed that LFF funding would the necessary staff to undertake legislatively support the development of the interest and asset mandated responsibilities under the Access to declaration system in close coordination with the Information and Asset and Interest Declaration UNDP team. Laws or to purchase necessary equipment. Results Lessons Learned As project implementation is still in the early ƒ Helping to stand up and operationalize new stages with activities planned for 2023, most accountability and procurement institutions results have yet to be achieved. Early results requires coordinated and constant support from include: international partners. Consistent messaging is needed to ensure that laws creating these ƒ On procurement reform, three SPDs were institutions are fully implemented and that developed for Works, Goods and Consulting the new institutions maintain their legal and Services and consultations on the SPDs were operational independence. held with private sector, civil society and government during the summer of 2022. The SPDs are now with the PPA for review, Reforming Lebanon’s Port Sector ratification and public release. – US$0.25 million ƒ The PIM legislative and institutional assessment was delivered to the World This project aims to support port sector reform Bank. The report on institutionalization of in Lebanon and pave the way to rebuild a better, PIM function was submitted for World Bank modern and digital Port of Beirut. PoB is Lebanon’s review, World Bank comments were included, main access to the rest of the world and a critical and the Report was finalized in March 2023. infrastructure for the country’s recovery. The The review and analysis of the PIM Action Plan slow recovery of PoB is intensifying the burden is underway and is expected to be delivered on the Lebanese economy while opportunity in May 2023. costs are high given increased competition in the Eastern Mediterranean region and globally. The 35 sensitivity of the issue (with political, commercial Vision for the Port Sector of Lebanon and a new and financial interests) has led the GoL to seek the master plan for the PoB leading to investment World Bank’s support, in its role of honest broker, plans assessing the extent of private sector to advance the reconstruction of PoB through a participation in the development and operation state-of-the-art approach, in a context of increased of the port. The World Bank also continues to competition in the Eastern Mediterranean region. hold regular coordination meetings with the Activities are supporting the development of a donor community. reform roadmap and a collaborative platform for stakeholder engagement in the reconstruction The World Bank maintains an open discussion and development of the PoB. with the caretaker government as well as port stakeholders to push for progress on the Since the blast, the World Bank has been chairing a preparation of reforms and ensure that they are unified platform of coordination comprising more consulted upon and ready for implementation than 25 organizations, including development once a new government is nominated. There is and diplomatic partners to coordinate/facilitate a clear consensus now from the Government technical and financial support to the GoL and MPWT on the need for a Port Sector Law, a towards the reform of the port sector and the national port vision and a new masterplan for reconstruction of the PoB. Beyond the LFF, the PoB as key prerequisites for any support towards World Bank has also mobilized grants through the the reconstruction of the port and the current Global Infrastructure Facility (GIF) and the Public- Minister of Public Works and Transport has Private Infrastructure Advisory Facility (PPIAF) strongly been engaged with the World Bank on to support the preparation of: (i) a regulatory this agenda. framework (Port Sector Law) addressing the longstanding legal vacuum in port governance, Results ensuring efficiency and transparency, and A draft Port Sector Law has been finalized by the enabling capital mobilization in the sector; (ii) MPWT in line with best practice with the technical an overall Vision for the Port Sector defining the assistance support of the World Bank. MPWT will roles and complementarity amongst the ports seek legislative approvals. A Ports Vision has of Lebanon (including the PoB) and proposing a been proposed and validated by the MPWT in balanced development strategy for the sector November 2022 based on wide feedback received across the national shoreline, integrating the from various stakeholders during consultation principles of the National Physical Master Plan sessions under the LFF platform held between of the Lebanese Territory; and (iii) options for a February and November 2022. Options for the new Reconstruction and Development Plan for new PoB masterplan have been drafted and are the PoB. currently being discussed with the MPTW and will Implementation Status be consulted upon by June 2023. The World Bank has remained strongly engaged Challenges in the port sector since the explosion and has ƒ Absence of government, hindering the been supporting the GoL since its appointment endorsement of the new Port Sector Law. in October 2021 through technical assistance ƒ No political will to engage in customs reform; for the preparation of: (i) a Port Sector Law; (ii) efficient customs and border management a Vision for the Port Sector of Lebanon defining agencies are critical for port efficiency. the roles and complementarity of the ports of the country (including PoB); and (iii) a new master Lessons Learned plan for the PoB. The Ministry of Public Works and ƒ Port Sector reform requires coordinated, Transport (MPWT) has championed and finalized consistent and constant support from all the Port Sector Law with expertise financed by international partners. Beyond technical the World Bank and other international donors. assistance, the GoL needs to be reminded On the vision and masterplan, the World Bank has that the law should be a priority prerequisite mobilized financing from the GIF and PPIAF and before any procurement or investment is appointed an international consortium, through made for the reconstruction and development a competitive tendering process, to support the of the Port. MPWT and the PoB in the development of a 36 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights FOCUS AREA 3 COORDINATION, MONITORING, ACCOUNTABILITY, OVERSIGHT This Focus Area aims to support the establishment and functioning of the 3RF institutional arrangements with dedicated support to strengthening citizen engagement, monitoring and communications across the 3RF. 37 Strengthening capacity and institutional forward, at this juncture, the World Bank team is arrangements for 3RF oversight, exploring options to incorporate the CE module in the 3RF webpage and align it with the 3RF’s citizen engagement and monitoring/ increased focus on reforms. The CE module will communications – US$0.825 million evolve to reflect the changes in the 3RF mandate. This World Bank-executed Advisory Services While this overall activity was administratively and Analytics (ASA) activity was designed to scheduled to close on December 31, 2022, it operationalize the 3RF institutional arrangements was agreed with the World Bank 3RF team to and strengthen citizen engagement, monitoring extend the activity closing date to align with the and communications across the program. The implementation period of the 3RF program, given first component supports the functioning of the necessary support provided by the LFF to the the 3RF Secretariat and the establishment and 3RF’s World Bank team (including, but not limited launch of the Independent Oversight Board to a communications specialist, IOB coordinator, (IOB)6. The second component provides support etc.), the IOB, and to covering the recurrent costs for developing a responsive citizen engagement of hosting the 3RF website and planned Citizen mechanism to advance transparency and Engagement module. accountability across 3RF priority programs. The third component supports the 3RF Secretariat’s Results functions related to progress monitoring, ƒ The IOB has been established and is reporting and strategic communications. functional. Membership was expanded from Implementation Status three members to six members in March 2022, which now include: Kulluna Irada, During the last year, significant progress was Lebanese Transparency Association, Maharat made on the implementation of this technical Foundation, Nusaned, Lebanese Center for support activity. Firstly, the charter for the Human Rights, and Lebanese Association operationalization of the IOB has been prepared for Taxpayers’ Rights. The IOB Governance and approved by its six Civil Society Members. Charter was completed in August 2022, The 3RF website has been developed and is now and is available on the 3RF website (https:// online at https://www.lebanon3rf.org. www.lebanon3rf.org). The IOB has issued However, there has been limited progress on communiques to voice their opinion, as well as the development and deployment of a Citizen a press release in August 2022 highlighting the Engagement (CE) module due to reluctance lack of progress made on the implementation by the GoL to host the module on Lebanon’s of reforms. The IOB finalized its 2023 Work Central Inspection IMPACT Platform. At the Plan in consultation with the World Bank and time of the conceptualization of the module, the 3RF Technical Team. IMPACT webpage was considered to be the most ƒ No results have yet been achieved related conducive channel to house this module, given to citizen engagement activities due to the its high visibility and outreach in Lebanon and delays outlined above. the likelihood that a higher number of Lebanon’s Challenges residents would utilize it to provide feedback and insights on the 3RF’s progress. However, ƒ Tensions within the GoL made it difficult to the development of this module for the IMPACT obtain approval to use government systems, website has been delayed, pending formalization such as the IMPACT platform, resulting in of the draft Partnership Arrangement between significant delays. the World Bank and Central Inspection to have ƒ It has taken time for the IOB to integrate and this module hosted as part of IMPACT. Moving bring up to speed its newest members. The 6 The IOB serves as an independent mechanism for representatives from civil society and other institutions to provide broad oversight on 3RF implementation and hold 3RF stakeholders – government, civil society, development partners, and implementing organizations – accountable for overall 3RF progress including the LFF. The IOB consists of six members representing a diversity of expertise related to the 3RF pillars, core sectors, and the functions of the IOB. IOB representation is at the individual level with the approval and endorsement of the organization with which the individual is associated. 38 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LFF Activities and Highlights expansion of the IOB led to a short delay in undertake this task. The scope of IFRC’s TPM is the finalization of its Governance Charter. limited to vaccines financed by the World Bank. Lessons Learned Implementation Status ƒ Expanding the role of civil society requires Monitoring activities started on February 14, sufficient time and consultations with CSOs 2021 (outside of LFF funding), one day following to help them understand the role that they the arrival of the first shipment of Pfizer vaccines are expected to play in a platform like the to Lebanon, and concluded in July 2022. The 3RF. The creation of the IOB was a new findings of the field monitoring visits were institution for the World Bank and was also shared periodically through reports with the new to the Lebanese CSOs who were eligible World Bank, the Joint Monitoring Committee to participate in the Board. As a result, there (composed of UNICEF, WHO, UNRWA, UNHCR, was a rather steep learning curve inside and IOM), the Ministry of Public Health (MoPH), the World Bank and among the CSOs which the National Vaccination Committee and the took some time to overcome. The role of the Vaccine Executive Committee. A summary of 3RF Secretariat was critical to ensuring that findings was also shared with the public using a the IOB members advanced up this learning bi-weekly infographic (see Figure 1). Additionally, curve over the first year of its existence. It is any observation of deviation from standards likely that additional consultations and more requiring immediate attention was shared with targeted and intensive discussions among the MoPH in real-time through short incident the IOB members would have sped up this reports for corrective action. All reports have process. However, the World Bank team and been received on a timely basis and have been the IOB members faced continued COVID-19 shared with relevant stakeholders. The monitors travel and meeting restrictions during the noted improvements in multiple practices early days of the Board. following reports to the MoPH, which took ƒ Using government systems to mainstream IT corrective action to strengthen the quality of the solutions is challenging in practice if political vaccination services. The COVID Vaccination TPM circumstances change. Moreover, IBRD’s activity of the project has been completed. data privacy architecture and procurement requirements are not conducive to supporting Results external IT solutions. ƒ At the end of the TPM activity, vaccine supplies were managed according to established COVID-19 Vaccination Third-Party standards at vaccination sites. Vaccines were stored correctly at 100 percent of the Monitoring – US$1 million vaccination sites visited and safety boxes This financing was allocated for independent were used for safe disposal of syringes and third-party monitoring of the rollout of World needles at 95 percent of the vaccination sites Bank-financed vaccines in Lebanon through an visited, surpassing the target of 75 percent or ongoing operation (the Lebanon Health Resilience above. Project), to ensure safe, effective and equitable ƒ Vaccines were also administered as per vaccine deployment. The Third-Party Monitoring international and NDVP standards. Correct Agent (TPMA) aimed to verify the compliance of injection technique was used at 100 the vaccine rollout with the National Deployment percent of the sites visited, 97 percent of and Vaccination Plan (NDVP), international interviewed vaccine recipients reported standards, and World Bank requirements, being satisfied with the vaccination process, with respect to supply chain management and and no interruption in the national electronic administration of COVID-19 vaccines at: (i) key registration system occurred in 99 percent points in the supply chain; and (ii) vaccination of the monitoring visits. However, only 17 sites from the technical, environmental, and percent of interviewed vaccine recipients social safeguards perspectives. The International were aware of complaint mechanisms, falling Federation of Red Cross and Red Crescent short of the 75 percent target. Societies (IFRC) was selected as the TPMA to 39 FIGURE 1. INFOGR APHIC SHARED WITH THE PUBLIC ON A WEEKLY BASIS BY THE TPMA* THIRD-PARTY MONITORING OF PFIZER COVID-19 VACCINATION - LEBANON FEBRUARY 2021 - JULY 2022 4,432 90 145 11.902 5,437 1,554 Visits to Vaccination Visits to mobile Vaccine Healthcare Visits to monitor vaccination sites visited medical units recipients providers environmental & sites interviewed interviewed social safeguards 36 606,645 3,639,870 41 Vaccine shipment Vials doses received Central monitored Storage visits * The contract with the TPMA ended in July 2022, thus the infographic displays final figures. Challenges action was taken after reports of breaches required close follow-up with MoPH. ƒ Monitoring tools used by field monitors to collect data required regular updates to align Lessons Learned with the progress of the campaign. ƒ At the beginning of the campaign, there ƒ While monitoring tools used by field monitors was a reluctance to share information by to collect data required regular updates to vaccination site staff. To overcome these align with the progress of the campaign, it challenges, field monitors would share the was important to maintain a consistent list of objective of the monitoring to convince staff indicators to ensure that data collected can members of the importance of data collection be aggregated to examine trends over time. to ensure the high quality of the vaccination ƒ Regular refresher training for field campaign and to inform corrective action monitors was important to ensure uniform where needed. Rapport building between understanding of the indicators and field monitors and vaccination site staff and observations made during monitoring. These communication with the World Bank team sessions held throughout the project helped and the MoPH were key in facilitating access in maintaining good quality data. to the vaccination sites. ƒ The close collaboration with the MoPH and ƒ Frequent changes in locations and operating partners was essential in facilitating and schedules of fixed and mobile vaccination strengthening the monitoring activities. sites required flexibility in the deployment of ƒ The constant review of the submission of the field monitors. deliverables and adjustments done to the ƒ There was also high turnover among data collection checklists to accommodate monitoring team members due to the short the changing project context and align with duration of the project. This also creates the progress of the national vaccination challenges in the readiness of MoPH for campaign was instrumental given the high the handover of COVID-19 vaccination volume of data collected and high frequency monitoring. Verifying whether corrective of reporting. 40 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Operational Updates OPERATIONAL UPDATES LFF PROGRAM DONOR AND STAKEHOLDER MANAGEMENT ENGAGEMENT Trust fund operations and management are The LFF PC met in April 2022 to discuss supported by a Program Management Team implementation progress and initial results of (PMT) based in the World Bank office in Beirut. approved LFF-financed projects as well as donor Functions of the PMT are detailed in the contributions one year following the endorsement Operations Manual. All of the LFF PMT positions of the first LFF Work Plan. LFF programming needs were filled in 2021. During 2022, the LFF PMT and emerging priorities were discussed for 2022, focused on enhancing dialogue, communication in light of Lebanon’s ongoing compounded crises and collaboration among the World Bank, donors, and challenges. The meeting was attended by CSOs, implementing agencies, government and LFF donors, government representatives, the UN, project beneficiaries. CSOs, and co-chaired by the World Bank Regional Director and the EU Head of Delegation. On August 1, 2022, Jean-Christophe Carret assumed his role as the new World Bank Middle Significant efforts were made to strengthen East Country Director and co-chair of the LFF, engagement among donors, beneficiaries, based in Lebanon. EU Ambassador Ralph Tarraf government and implementing agencies continues to serve as the second co-chair. through several project field visits. In April 41 2022, a roundtable discussion was held with the The GoL, represented by the Deputy Prime beneficiaries of the B5 project to learn how the Minister, as well as the Prime Minister’s Office, project is helping them resume their business played a key role in providing overall guidance operations, as well as the continuing challenges and advice on the design and implementation they are facing. In addition, a visit to B5 female of projects and advisory services, while ensuring beneficiaries was held in June 2022. Also in June an inter-linkage between the World Bank and 2022, the LFF PMT organized site visits to all four concerned line ministries and public entities to LFF recipient-executed projects. Donors visited maintain consistent coordination for the efficient buildings being rehabilitated under the Beirut development of operations and activities under Housing project, the solid waste sorting facility the LFF. under the Environment project, and met with additional beneficiaries of the B5 Fund and the Social Recovery Project to discuss how the LFF is helping them cope with the impact of the PoB MONITORING explosion and the multitude crises on their lives AND REPORTING and businesses. Further, Donors expressed high appreciation for these field visits, which they The LFF has an overarching results framework found extremely informative and useful. They reporting on outputs and results at the Program commended the World Bank for its strong effort level (see Annex 2). In addition, as with all World to communicate results. Bank-financed projects, each project under the Five technical consultations with donors were LFF has its own M&E arrangements, including a held in 2022 to assess progress, risks and results matrix that describes the project impact challenges and to hold technical discussions on and outputs through indicators that can be potential LFF project pipeline. This is in addition monitored over the project life. Furthermore, to a deep dive discussion held in November standard World Bank monitoring and reporting 2022 to present results achieved to date and to processes are used (e.g., Implementation Status quantify the challenges and obstacles hampering Reports) and published on the World Bank the implementation process under the LFF. Lebanon website in line with the World Bank’s Access to Information Policy. Given the particularly weak governance in Lebanon, the World Bank initially planned to engage a suitably qualified and experienced independent TPMA as an additional layer to ensure that World Bank funds executed by projects developed under the LFF were utilized for the purposes specified in the legal agreements. While a proposal for an Umbrella-level LFF TPMA was originally included in the 2021 Work Plan, this is unlikely to proceed due to budget constraints. The use of TPMA will be revisited with LFF donors pending funding availability. Independent Oversight Body (IOB). As part of the overarching architecture of the 3RF, the IOB serves as an independent mechanism for civil society representatives to provide broad oversight on 3RF implementation and hold 3RF stakeholders – including government, development partners, and implementing agencies – accountable for overall progress. The IOB was set up in June 2021 and its membership was expanded from three to six members in 2022, which now include representatives of: Kulluna Irada, Lebanese 42 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Operational Updates Transparency Association, Maharat Foundation, Nusaned, Lebanese Center for Human Rights, and Lebanese Association for Taxpayers’ Rights. The IOB is tasked with independently verifying and monitoring the implementation of the LFF’s activities to ensure transparency, fairness, and accountability in the program’s resource allocation. As detailed above, the LFF supported the operationalization of the IOB, which has provided feedback on 3RF implementation. The IOB is working on monitoring the effective functioning of the 3RF and LFF funded projects by focusing on essential criteria such as transparency, inclusivity, accountability, and responsiveness. COMMUNICATION Ever since the LFF was established, the PMT has been prioritizing communications and outreach activities and efforts to promote results under the various projects in close and continuous coordination with the various LFF PMUs. Thanks to these efforts, the LFF won an Umbrella Program Award in December 2022 based on its strong focus on communications, outreach, promoting results and donor visibility. cultural, and historical aspects that this project aims to promote and preserve. To accompany the Following the development of the LFF name, a logo was created to represent the project Communications and Visibility Plan (CVP) and visually and a tailored visual identity was also detailed branding guidelines, two LFF financed developed capturing different heritage elements projects also developed their own project that come together as a puzzle made of designs identities, brands and communications plans. for tile used in old traditional Lebanese houses. Under the B5 Fund, the implementing agency, To ensure consistency and alignment of KAFALAT, competitively selected a firm to develop communications efforts among different partners and implement a communications campaign, on this project, and in line with the LFF branding website, web-based application and dashboard guidelines, a detailed branding guiding document that provides constant real-time information as well as a communications and visibility guiding regarding progress. The B5 PMU has also recently toolkit were developed. These guiding materials recruited a communications officer to step up are being shared with different partners working the project’s presence and visibility on the B5 on the ‘’BERYT’’ project, to help guide them on social media accounts and document beneficiary how to communicate about the project while testimonials and before/after impact stories. maintaining a balanced representation of all donors and partners across the project. Under the Beirut Housing Rehabilitation and Cultural and Creative Industries Recovery Under the recently launched 3RF website, the LFF project, the implementing agency, UN-Habitat, has a dedicated webpage: www.lebanon3rf.org/ developed a communications strategy together lebanon-financing-facility. The LFF page provides with a branding plan that gave the project a information about the trust fund’s objectives, shorter name: Beryt that stems from the ancient activities and results stories, governance name for the city of Beirut. Over the course of its structure, development partners, and key history, Beirut was destroyed and rebuilt seven outputs, including knowledge products, project times. ‘’BERYT’’ highlights the vintage, precious, documents, and media material. 43 FINANCIAL HIGHLIGHTS The LFF was established administratively in December 2020. As of December 31, 2022, donor contributions from Canada, Denmark, the EU, France (Ministry of Economy, Finance and Recovery, and the Agence Française de Développement (AFD)), Germany and Norway totaled US$69.98 million, all of which had been paid in (see Table 3). In 2022, the LFF received a contribution of 10 million Euros from the EU. The LFF has earned a total of US$0.74 million in investment income7, which is considered as part of the LFF’s contributions and used for programming and fund management of the LFF. The administration fee of the LFF amounted to US$2.61 million as of December 31, 2022. Total fund resources (contributions and investment income, minus the administration fee) thus equaled US$68.11 million (see Table 4). 7 Investment income consists of the modified cash basis trust funds’ allocated share of the following: interest income earned by the Pool, realized gains/losses from the sale of securities, and unrealized gains/losses resulting from recording the assets held by the Pool at fair value. 44 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Financial Highlights TABLE 3. FUNDS CONTRIBUTED AND RECEIVED FROM DONORS Donors Contributions Contributions Paid in (local currency) (US$ million) (US$ million) Canada 20.0 CAD 15.90 15.90 Denmark 37.5 DKK 6.10 6.10 EU 28 EUR 30.73 30.73 France (Ministry of Economy, Finance, and Recovery) 2.5 USD 2.50 2.50 France (AFD) 2.3 EUR 2.53 2.53 Germany 10.0 EUR 11.27 11.27 Norway 8.3 NOK 0.95 0.95 TOTAL 69.98 69.98 TABLE 4. TRUST FUND RESOURCES Trust Fund Resources US$ million Total Contributions of which: 69.98 Paid in 69.98 To be paid 0.00 Investment Income 0.74 Administration Fee (-)2.61 TOTAL Fund Resources 68.11 As of December 31, 2022, grants were approved US$15.59 million for recipient-executed projects, for a total of US$56.75 million under the LFF, US$1.45 million for Bank-executed activities, including US$52.75 million for recipient-executed US$0.40 million for project preparation and projects, US$2.85 million for Bank-executed supervision, and US$0.40 million for program activities, US$0.59 million for project preparation, management and administration. Higher and US$0.57 million for program management disbursement rates can be attributed to significant and administration (see Table 5). progress on certain projects, particularly the B5 Fund, which contributed 60 percent of total As of December 31, 2022, the LFF had disbursed disbursements. US$17.83 million.8 While disbursements are still low as some projects have only become When considering total fund resources (US$68.11 effective relatively recently and given delays in million), unallocated funds9 were US$11.36 implementation, they are considerably higher million as of December 31, 2022, which reflects than in 2021. Total grant disbursements represent resources that can be used for new programming. 31 percent of the funds allocated. This included 8 This figure reflects total project disbursements and does not include administrative fees and expenses, of which US$2.61 million were disbursed as of 12/31/22. 9 This equals total fund resources (total contributions plus investment income minus the administration fee, equal to US$68.11 million) minus funds committed/allocated (US$56.75 million). 45 TABLE 5. FUNDS ALLOCATED AND DISBURSED BY GR ANT AS OF 12/31/22 Grants Grant Amount Total disbursed Total disbursed (US$ million) (US$ million) (%) Recipient-executed grants 52.75 15.59 30 B5 Fund 25.00 10.59 42 Support for Social Recovery Needs of Vulnerable Groups 5.00 0.70 14 Beirut Housing Rehabilitation and Cultural and Creative 12.75 3.33 26 Industry Recovery Beirut Critical Environment Recovery, Restoration and 10.00 0.97 10 Waste Management Bank-executed grants 2.85 1.45 51 Beirut Housing Rehabilitation and Cultural and Creative 0.25 0.04 16 Industry Recovery – Technical Assistance 3RF Governance Implementation – 0.50 0.11 22 Reconstruction with Integrity and Transparency Port of Beirut Reform and Reconstruction 0.25 0.01 4 Supporting 3RF Implementation 0.85 0.34 40 COVID-19 Vaccination Third-Party Monitoring 1.00 0.95 95 Project preparation and supervision grants (for RE projects) 0.59 0.40 68 B5 Fund 0.26 0.19 73 Support for Social Recovery Needs of Vulnerable Groups 0.08 0.04 50 Beirut Housing Rehabilitation and Cultural and Creative 0.15 0.13 87 Industry Recovery Beirut Critical Environment Recovery, Restoration and 0.10 0.04 40 Waste Management Program Management and Administration 0.57 0.40 70 TOTAL 56.75 17.83 31 46 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Cross-Cutting Challenges and Lessons Learned CROSS-CUTTING CHALLENGES AND LESSONS LEARNED 47 Cross-Cutting Challenges Lessons Learned Insufficient grant funding. Lebanon’s Engage more consistently with donor members of the worsening situation resulting from the 3RF Consultative Group that have not yet contributed to compounded crises is putting immense the LFF to raise awareness of the immense needs on the pressure on donors to provide grant funding ground and to explore funding opportunities. to compensate for the deterioration in the provision and quality of service delivery. In parallel, Bank teams are exploring grant financing from other World Bank-administered trust fund resources as well as blended finance (grants and loans) options to complement future LFF engagements to ensure sustainability of operations. Implementation delays resulting from Adjust expectations and tolerance for implementation the compounded crises and complex delays and risks and ensure flexibility in trust fund implementation arrangements. The severe design. The implementation timeframe should take into crisis context results in implementation account potential delays arising from the instability delays and risks, including slow project and complexity of the context and there should be a start-up and administrative preparations; higher tolerance for implementation delays and risks. high staff turnover; heavy due diligence Further, the level of effort required to properly develop requirements to ensure risks are mitigated and harmonize relationships with non-governmental and implementing partners are aware of implementing agencies requires early planning and World Bank requirements; rapid changes simplified implementation arrangements. Accelerating requiring continuous data collection and project implementation can come with risks and tradeoffs, updating; and the significant time and effort particularly in crisis settings where there are heightened needed for coordination. Additionally, concerns related to grant oversight and monitoring. highly fluctuating prices as a result of the Striking a balance between speed of disbursement and continued devaluation of the local currency ensuring money is spent properly requires continuous contribute to complexity in budgeting and adaptation and strong hands-on support from the World implementation of subgrants. Bank to the implementing agency. In a context of fragility and instability, the LFF will continue to be flexible to adjust to critical emerging priorities and engage in timely and formal course correction. 48 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Cross-Cutting Challenges and Lessons Learned Cross-Cutting Challenges Lessons Learned Implementation capacity of implementing Provide strong hands-on guidance and technical support partners. During the design phase, LFF for implementing agencies and undertake detailed projects underestimated the capacity assessments of implementation capacity. This includes building and hands-on support required support in the sectoral areas of intervention, as well as to ensure that implementing partners, for procurement, financial management, environmental particularly local NGO partners/sub- and social safeguards, and monitoring, learning and grantees, can meet the Bank’s fiduciary evaluation. Special attention is needed to strengthen practices and standards. This was not only the coordination between implementing agencies and in terms of subject matter expertise but also the national authorities responsible for environmental in financial management and procurement, licensing and monitoring. given the lack of access to and experience with international financing. Capacity building programs are being developed and accommodated to accelerate the execution of projects. Although implementing agencies have There is also a need for stronger coordination among their own set of standards and typically stakeholders, including by keeping the Government have higher capacity than government engaged and to secure its buy-in. counterparts, additional capacity building is still needed to ensure alignment with the World Bank ESF, particularly in order to meet the requirements of ESS5 (land acquisition, restrictions on land use and involuntary resettlement). Limited GoL commitment to reform. There Ensure strong, persistent engagement with the are a number of commitments that are Government. Beyond financial and technical assistance, either on hold or delayed due to prolonged international partners need to continuously urge the institutional paralysis and political vacuum. Government to fulfill its obligations to fund, staff and For example, the internal regulations of the ensure the legal and operational independence of new NACC have not yet been approved by the institutions. Although some reform milestones have been State Council, the draft Port of Beirut law is achieved, such as the approval of the Public Procurement still pending Parliament approval. Overall, Law and the appointment of members to the independent there has been a failure to pass the laws NACC, implementing a comprehensive reform agenda required to advance economic and financial is the only way to help Lebanon return to a path of reforms. sustainable development. Engagement with CSOs. As the Bank Expand the role of civil society. CSOs have a crucial role in is mandated to work through public promoting inclusion, accountability, transparency as well institutions and government systems, as fostering citizens’ trust. Considering this, consultations incorporating CSO engagement in the with civil society should be expanded, underlining the unique architecture of the LFF requires need for stronger coordination. IOB members should intensive consultation and time to build continue to monitor the implementation of LFF-funded CSO’s understanding of the role they are projects. intended to play in platforms such as the 3RF and LFF. 49 Cross-Cutting Challenges Lessons Learned Limited trust and skepticism of grant Building trust requires constant communication, access programs and reluctance to engage. to information and management of expectations of There was hesitancy among potential beneficiaries. Raising awareness about planned activities beneficiaries to engage with implementing and innovative methods of engagement with beneficiaries partners of LFF programs, given skepticism has proved essential under LFF projects. Communicating about the materialization of promises of in a simple and timely manner with potential stakeholders financial support by government, civil and beneficiaries is key. society and other stakeholders to people and businesses affected by the Port of Beirut explosion. This impacted the quality of applications for LFF grants and led to a reluctance to share information. Risk of overlap / duplication of activities. Address the acute lack of donor coordination following There is a risk of duplication with other the PoB explosion. Fragmentation of donor assistance donors, including on the targeting and lack of an empowered government unit to take on of beneficiaries. This risk is further this role left the burden of coordination on donors and compounded by the lack of donor civil society initially. However, despite all the donor coordination on the part of the GoL, leaving coordination initiatives, government leadership is pivotal the international community to take on this in ensuring synergies and lack of duplication among role independently. respective stakeholders. While the Central Management Unit that was established in the Presidency of the Council of Ministers is a step forward, it has not yet effectively achieved proper donor coordination. The LFF, in parallel, continues to play a key role in strengthening donor cooperation. This is reinforced by the active participation of the GoL, donors and CSOs in the 3RF Working Groups. 50 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Looking Forward LOOKING FORWARD The LFF’s 2022 calendar year ended with substantial results achieved on business and social recovery, and key implementation arrangements established and strengthened for all projects. A key priority for 2023 will be ensuring that ongoing projects advance in their implementation, leading to an increase in disbursements. The strategic shift in the scope of the 3RF towards a focus on reform will be reflected in the LFF’s 2023 annual work plan. The objective is to prioritize institutional strengthening and the design and implementation of critical reforms as identified by the GoL. This includes potentially supporting the core functions of the Ministry of Finance as well as to support banking crisis resolution and financial sector restructuring. Project proposals have been developed for potential new activities and shared with the PC after conducting several technical consultations with donors. The proposals will be presented as part of the 2023 Work Plan and will be considered for endorsement by the PC at the next PC meeting scheduled in May 2023. Following the review and potential endorsement of the work plan (in full or with qualifications), project teams will prepare full-fledged projects in close consultation with all stakeholders. Additional donor contributions will be needed to fund new activities going forward, given the immense needs. It is anticipated that additional funding will be received from donors before the end of 2023, which would help to fill the gap. The LFF PMT will continue to prioritize fundraising in 2023 to ensure sufficient resources are available to allow the LFF to respond flexibly to emerging priorities and critical challenges related to recovery and reforms. 51 ANNEX 1. 52 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 LIST OF TRUST-FUNDED PROJECTS Building Beirut Businesses Back & Better (B5) Fund PROJECT CODE P176013 STATUS Active TYPE OF GRANT Recipient-Executed OBJECTIVE To support the recovery of targeted MSEs and ensure the sustainability of eligible MFIs. BRIEF DESCRIPTION To support the immediate recovery of viable MSEs affected by the explosion and sustain the microfinance sector operations, the World Bank established the Building Beirut Businesses Back & Better (B5) Fund financed by the LFF as immediate support to the private sector. The B5 Fund provides grants to MSEs to cover immediate recovery needs and grants to MFIs. The fund will also provide technical assistance to damaged Women Owned or Led (WOL) businesses, as well as businesses led by persons with disabilities, to help them build back better. The fund will specifically target WOL businesses affected by the crisis. TIMEFRAME 2021 – 2024 (Approved: July 28, 2021; Expected Closing: July 31, 2024) CONTEXT The Beirut port explosion had a severe impact on the productive sector. Most privately-owned establishments across all sectors, within a 5 Km radius of the explosion site, have been affected and service delivery will be extremely hard to restore in the short term. Losses exceed damages due to the disruption of business activity and associated losses of revenue. The Rapid Damage and Needs Assessment (RDNA) found that at least 5,000 formal business facilities have been damaged and need urgent financial assistance across all sectors: tourism, commerce & industry, creative industries, utilities, health, and education. MFIs reported that over 5,200 micro borrowers located in the blast area have experienced material damage to their homes and/or businesses, with some having lost their primary breadwinner. Estimated needs for business recovery range between US$335 and US$415 million, with US$225 and US$275 million in the immediate term10. According to a survey undertaken by Acted, respondents estimate that 50% to 60% of firms will not be able to resume activities without external financial assistance. Similarly, according to a UN Women/Stand for Women assessment, half of female-led businesses, which according to preliminary data constitute one fifth of total affected businesses, will not be able to reopen without some form of assistance.11 The loss of women-led businesses also leads to a loss of employment opportunities for women. In an assessment carried out among women-owned business damaged by the explosion, 70 percent of employees were women.12 10 According to RDNA estimates. 11 UN Women, CARE, UN ESCWA, ABAAD, UNFPA, Rapid Gender Analysis of the August 2020 Beirut Port Explosion: An Intersectional Examination (October 2020). 12 Ibid. The explosion further exacerbated stress on the microfinance sector, which was already operating in a multiple crises environment. The sector has been key in facilitating access to finance for micro entrepreneurs and small businesses since the 1990’s and enjoys several top-performing institutions. By mid-2019, the nine members13 of the Lebanese Microfinance Association (LMFA) had an aggregated portfolio exceeding US$220 million and 135,000 loans, over half of which went to female entrepreneurs. The sector is concentrated, with one institution reaching out to approximately 50 percent of the market, and four institutions totaling over 90 percent of the market. Similar to the Lebanese economy, the sector has been shrinking, with portfolio losing at least 25 percent of its value and loans falling below the 100,000 mark. Prior to the explosion, the sector was already under severe strain, and for the past year, it has not generated sufficient revenues to cover all costs. On the one hand, demand for new loans has been declining, initially driven down by the economic slowdown, then by the series of lockdowns the pandemic response has imposed. According to the Consultative Group to Assist the Poor (CGAP) survey, 90 percent of micro entrepreneurs saw their sales drop, and 40 percent of microfinance clients are no longer able to meet their basic needs as their revenues dwindled while their purchasing power dropped significantly. As a result, they have been servicing their debts with delay. Given the context, MFIs have limited collection power and non-performing loans have soared from a historically low 2 percent to over 20 percent in late 2020. On the other hand, some of the large MFIs have currency mismatches in their assets and liabilities. Those MFIs lend either in USD or in LBP, with a portfolio mix varying between 10 percent and 90 percent in USD depending on the institution. They have fueled their growth primarily through debt, often from foreign lenders, leaving them with an aggregate outstanding external debt of US$75 million. Clients are, however, reimbursing their loans at the pegged rate, generating significant foreign exchange losses. The US dollar deposits they hold at local commercial banks are subject to informal capital control and might be subject to further losses, depending on the outcome of the overall banking crisis. The combination of lower activity, poorer portfolio quality, and foreign exchange losses is posing serious solvency risks to the entire sector, which is threatening access to finance to micro entrepreneurs and small businesses, and the significant portion of the low-income active population that the sector caters. COMPONENTS Component 1: Grants to Micro and Small Enterprises (US$18.5 million) Component 2: Grants to Microfinance Institutions (US$5 million) Component 3: Project Management and Gender Support (US$1.5 million) FINANCING LFF: US$25 million ALIGNMENT WITH 3RF Jobs and Economic Opportunities PILLAR AND PRIORITY Priority area: Restore business activities and preserve jobs (People-centered Recovery Track) AREA ƒ The design of the B5 Fund promotes inclusion, through targeting vulnerable groups, such as micro and small businesses including those that operate in the Annex 1. List of Trust-funded Projects CROSS-CUTTING PRIORITIES: GENDER, informal sector, as well as women and people with disabilities. INCLUSION AND TRANSPARENCY ƒ It is expected that at least 30 percent of grant beneficiaries will be women-led or -owned. In addition, the B5 Fund will aim to address barriers faced by women and complement financing support with non-financial, technical advisory support, also targeting MFIs. Technical support will also be accessible to people with disabilities. INTENDED 4,300 businesses and/or entrepreneurs will benefit from the project financing, of which 30 percent will be Women Owned or Led businesses. A maximum of 5 BENEFICIARIES eligible MFIs will benefit from the grant support up to their respective market shares. IMPLEMENTATION Kafalat will be both the recipient and project implementing agency. Kafalat is responsible for establishing a PMU and maintaining it throughout project ARRANGEMENTS implementation. 53 13 Members of the association include ADR, AEP, Al Majmoua, CLD, EDF, Emkan, Ibdaa, Makhzoumi Foundation, and Vitas. Support for Social Recovery Needs of Vulnerable Groups in Beirut 54 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 PROJECT CODE P176622 STATUS Approved and Effective TYPE OF GRANT Recipient-Executed OBJECTIVE To support the immediate social recovery14 needs of vulnerable groups15 following the Port of Beirut explosion BRIEF DESCRIPTION The project will finance NGOs to provide social services to vulnerable groups affected by the crises including: (i) survivors of GBV; (ii) those suffering from deteriorated psycho-social wellbeing; (iii) and persons with disabilities and OPs facing limitations related to their disabled or elderly status. Given the cross- cutting nature of their vulnerability, refugees and migrant domestic workers will be targeted across these beneficiary groups. The project will support non- government stakeholders that are engaged and have a track record in social recovery services by improving their capacity to participate in the broader social recovery and reconstruction processes. While project activities strive to meet immediate emergency needs in Beirut and include capacity building activities, there is still an overarching need for a broader public sector reform agenda to address the extensive needs of vulnerable groups, which is beyond the scope of the current project. TIMEFRAME 2022 – 2023 (Approved: December 23, 2021; Expected Closing: October 31, 2023) CONTEXT The August 4, 2020 Port of Beirut (POB) explosion compounded Lebanon’s existing economic and social challenges and disproportionally affected Beirut’s vulnerable populations. The event occurred against a backdrop of rising national poverty rates, hyperinflation, the loss of jobs and livelihoods, and high exclusion. Since the explosion, the efforts of more than 130 NGOs16 have been crucial for recovery and rehabilitation efforts. However, the lack of coordination between ongoing efforts and the ad hoc/temporary nature of most interventions have been noted as important obstacles to be overcome, including by the Ministry of Social Affairs, since they challenge the effectiveness, inclusivity and sustainability of the broader recovery and rehabilitation process. The situation of Beirut’s population therefore remains precarious and the need for support to recovery and reconstruction efforts urgent. This project responds to the 3RF’s third strategic pillar on social protection, inclusion, and culture. It does so by targeting the most vulnerable populations in Beirut who continue to be impacted by the complex corollaries of the POB explosion. Consultations with local civil society organizations (CSOs), non-governmental organizations (NGOs) and UN agencies between August 2020 and January 2021 revealed that heightened vulnerabilities are still being recorded amongst three vulnerable groups affected by the blast in Beirut: (i) survivors of Sexual and Gender-Based Violence (SGBV); (ii) those suffering from deteriorated psycho-social well-being; (iii) and/or those facing limitations related to being a Person with Disabilities (PWDs) or older persons (OPs). In addition, the proposed activities are also complementary to the recently approved Lebanon Emergency Crisis and COVID-19 Response Social Safety Nets Project (ESSN). COMPONENTS Component 1: Support for social services for vulnerable groups affected by the explosion (US$4.43 million) Component 2: Capacity Building and Project Management (US$0.62 million) 14 “Immediate social recovery” refers to meeting the short-term needs directly associated with the reasons for vulnerability of groups, who, due to pre-existing exclusion, stigma and service delivery gaps have been less resilient to shocks and more prone to harm following them. The project therefore conceives of “immediate social recovery” as a necessary emergency intervention that precedes later reform efforts, which in turn will address the systemic social drivers of vulnerability. 15 For the purposes of this project, vulnerable groups include women, men and children survivors and at risk of GBV, people with mental health disorder challenges, persons with disabilities and older persons. These groups may also include migrants and refugees working as domestic workers in Beirut, and who cut across the previously described groups. 16 Findings from the Ministry of Social Affairs Rapid needs assessment for people impacted by the Beirut explosion, August 2020. FINANCING Total: US$5.05 million (Restructured from US$7.795 million) LFF: US$5 million State and Peacebuilding Fund: US$0.05 million (US$2.745 million cancelled due to grant closing in June 2022, creating a shortfall) ALIGNMENT WITH 3RF Pillar: Social Protection, Inclusion and Culture PILLAR AND PRIORITY Priority area: Social Cohesion, Inclusion, and Gender AREA 3RF CROSS-CUTTING ƒ Its target beneficiaries are considered the most vulnerable among the Lebanese population, including women, children/youth, persons with disabilities, PRIORITIES: GENDER, older persons, domestic and migrant workers and refugees working as domestic workers. INCLUSION AND TRANSPARENCY ƒ The delivery of services is being done through NGOs and community-based organizations (CBOs) to ensure strong citizen and community engagement; a feedback mechanism is in place. INTENDED Vulnerable groups specifically supported by the project include women, men and children survivors and at risk of gender-based violence (GBV), people with BENEFICIARIES mental health challenges, persons with disabilities and older persons, as well as migrants and refugees working as domestic workers in Beirut. IMPLEMENTATION International Rescue Committee (IRC) Lebanon. As the Implementing Agency, IRC has formed a PMU to implement activities through sub-grants to local NGOs. ARRANGEMENTS IRC assumes fiduciary supervision of the sub-contracted NGOs, develops and monitors reporting standards for partner NGOs, and facilitates independent audits. Beirut Housing Rehabilitation and Cultural and Creative Industries Recovery PROJECT CODE P176577 STATUS Approved – Grant agreement was signed on 24 February 2022 Annex 1. List of Trust-funded Projects TYPE OF GRANT Recipient-Executed OBJECTIVE To support the rehabilitation of prioritized historical housing for the most vulnerable people, and to provide emergency support to creative practitioners and entities in areas affected by the Port of Beirut explosion. BRIEF DESCRIPTION The project responds to critical needs on the ground in terms of emergency reconstruction of severely damaged residential buildings and CCI support, while establishing the basis for medium term reconstruction and resilient recovery for the city. The project is structured as follows: 1A) the rehabilitation of severely damaged residential heritage buildings; 1B) the provision of technical assistance for rental support; 2) support to cultural entities and practitioners through the provision of grants for cultural production; and 3) project management. The project will support the medium-term recovery and reconstruction planning of the areas of Beirut affected by the blast through LFF-funded technical assistance to local and national government institutions to strengthen their planning, coordination, and citizen outreach capacity, and provide a platform for in-depth consultations with government, civil society, and donors. TIMEFRAME 2022 – 2024 (February 24, 2022; Closing: December 31, 2024) 55 CONTEXT Housing was the sector the most impacted by the explosion of the Port of Beirut. Approximately 87,552 housings were damaged, with 16 percent destroyed, 29 56 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 percent partially damaged, and 55 percent minimally damaged. Of all asset classes, low-income housing units sustained the most damage, with 64 percent of these units (22,000 low-income residential units) having sustained some form of damage. The area affected by the explosion was home to a diverse population of around 750,000 residents in 2018. Within that population, renter households make up about 55 percent, occupying units in both single-family and multi- family buildings. Much of the historic housing has been damaged, often those housing the lowest-income households, and the ability for self-recovery is furthered hampered due to the compounding effects of the economic collapse at the end of 2019 and COVID-19 from early 2020. These conditions have severely compromised the socio-economic conditions for blast victims to develop or utilize favorable economic opportunities to recover. Low-income populations are subject to tenure insecurity, high housing and services costs and informal real-estate practices, while the damage to the housing stock caused by the explosions renders these populations even more vulnerable to longer term displacement. The neighborhoods affected by the explosion are among the most culturally vibrant and hosting a high number of historic buildings, which are important to preserve, as they are among the few cornerstones of Lebanese identity surviving from the Civil War. The level of mobilization from the Government and civil society after the explosions has been remarkable, with the Government issuing decisions to prevent predatory practices and demolitions of these historic buildings, and civil society mobilizing at an unprecedented scale to protect, stabilize them, and begin repairs wherever possible. The explosion has also caused immense damage to the tangible and intangible cultural heritage of Beirut, impacting some of the most historically and culturally vibrant significant neighborhoods in the city. This has resulted in great cultural and socio-economic damage and losses in a city that is a historical and cultural hub for the region. The areas affected by the explosion contained 381 religious assets, 25 national monuments, 16 theaters and cinemas, 8 museums, 25 libraries and archives, at least 755 heritage buildings including archaeological areas and historic housing. The most-affected area was also the vibrant epicenter of the city with a unique urban fabric embedded with historical buildings hosting the production of Cultural and Creative Industries (CCI), with impacts on associated livelihoods, and the risk of permanent exodus from the sector of those affected. Each CCI business provided on average five full-time jobs, mostly to youth. Overall, the estimate of damage to the cultural sector ranges from US$1.0 - US$1.2 billion, with losses from US$400.0 - US$490.0 million. In addition to damages, a wide part of CCI is at risk of closing, with programming on hold and commitment taken ahead of the blast for activities supposed to cover the running and human resources costs until the end of the year, and thus the sector is facing a complete paralysis and potential exodus in the absence of urgent assistance, thus compromising a key aspect of the city’s economic recovery.17 COMPONENTS Component 1: Housing Recovery (US$8.28 million) Component 2: Emergency Support for CCI Recovery (US$1.95 million) Component 3: Project Management and Monitoring and Evaluation (US$2.52 million) FINANCING LFF: US$12.75 million (Recipient Executed); US$0.25 million (Bank Executed) ALIGNMENT WITH 3RF Pillars: Improving Services and Infrastructure; and Social Protection, Inclusion and Culture PILLAR AND PRIORITY AREA 17 Overall, it is estimated that more than 70% of cultural practitioners’ income is less than US$500 since the beginning of the economic crisis (2019), while it was between US$1500-US$3000 prior to that. These elements were gathered at the Digital Forum – Beirut Urban Declaration (March 2021), organized by the Order of Engineers and Architects of Beirut. 3RF CROSS-CUTTING ƒ Gender equality: This project will factor in gender considerations as a cross-cutting sectoral approach throughout all analysis, prioritization, and sequencing PRIORITIES: GENDER, of recovery and reconstruction activities. It is expected that at least 25 percent of female headed households will benefit from housing rehabilitation under INCLUSION AND component 1, and 50 percent of direct beneficiaries under component 2 will be women. TRANSPARENCY ƒ Targeting the most vulnerable populations: The project will carefully select housing and CCI structures that are operated by and inhabited by populations that are most at risk. Special attention will be paid throughout the project in the outreach to cultural practitioners who are persons with disabilities, elderly, LGBTIQ+, refugees, displaced people, and migrants. ƒ Citizen and community engagement: The Bank project team, together with UN-Habitat and partners, has been consulting with CSOs and NGOs in Beirut to ensure their participation in the design and implementation of the project at all stages. INTENDED The direct beneficiaries under Component 1 will be approximately 560 people benefitting from resilient rehabilitated residential units, and for Component 2, BENEFICIARIES approximately 1,300 cultural actors. The project is expected to rehabilitate around 30 buildings of cultural heritage value. Technical assistance will be offered to the tenants and wider community to support sustainable rental solutions. Other beneficiaries would include professionals working in engineering, architecture, construction sectors, cultural artisans, equipment suppliers, construction and engineering firms, and other service providers. Indirect beneficiaries are the inhabitants of the restored neighborhoods that may benefit from the enhanced historic built environment. Regarding Component 2, direct beneficiaries are self- employed cultural practitioners, workers within cultural entities and additional cultural workers involved in the roll out of cultural productions financed with the grants. Indirect beneficiaries are members of the local community that will benefit from the roll out of cultural productions and the overall economic value added by increased tourist potential. IMPLEMENTATION The project will be implemented by UN-Habitat through direct implementation as well as project cooperation agreements between UN-Habitat and UN/local ARRANGEMENTS partners. An Implementing Entity will be identified to complement Component 2 through a subsidiary agreement. A Technical Advisory Committee will provide strategic level advice on project implementation to support integration and synergies amount the activities of the components. Beirut Critical Environment Recovery, Restoration and Waste Management Program PROJECT CODE P176635 Annex 1. List of Trust-funded Projects STATUS Approved TYPE OF GRANT Recipient-Executed OBJECTIVE To support emergency environment control measures in Beirut City from the impacts of the August 2020 explosion and support planning for longer-term environmental restoration efforts. BRIEF DESCRIPTION The environmental interventions of the project are urgent measures aimed at controlling the most urgent public health and environmental impacts that resulted from Port of Beirut (PoB) explosion. The interventions are based on the needs identified under the Rapid Damage Need Assessment (RDNA) and ‘Construction and Demolition Waste Management Plan’ prepared by the European Union (EU) and ‘Demolition Waste Assessment’ carried out by United Nations Development Program (UNDP). The project activities have been selected to ensure maximum public health and environmental risk reduction, with the limited funds available for the project. The selection of project interventions was also informed by other environmental restoration activities being implemented by and through donors active in Lebanon. 57 TIMEFRAME 2022 – 2025 (Approval: May 12, 2022; Closing: June 30, 2025) 58 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 CONTEXT The August 4, 2020 explosion at the Port of Beirut (PoB), has caused significant damage to the environment of the city and generated large quantities of various waste streams. The Rapid Damage Need Assessment (RDNA) identified several environmental challenges due to the explosion including: (i) the storage and management (including treatment) of chemicals, hazardous material, health care waste and other special wastes; (ii) inadequacy of the solid waste management (SWM) system of the city of Beirut and Mount Lebanon and the need for a long-term and integrated approach for SWM for Beirut city; and (iii) lack of facilities for safe management of large quantities of demolition waste, hazardous waste (including asbestos), scrapping/disposal of damaged vehicles, electronic waste, etc. Other major environmental challenges caused by the explosion include: (i) impact on the surrounding marine ecosystem; (ii) loss of the green cover/vegetation in the city of Beirut; and (iii) potential increase of Suspended Particulate Matter (SPM) that could contain asbestos particles. The explosion has also highlighted the significant weaknesses in the overall environmental management of the city of Beirut, including inadequate monitoring and enforcement system of environmental regulations, limited strategic planning and weak government capacity to ensure inclusive representation and participation (by gender, age, etc.) across stakeholders’ groups, including civil society and the private sector, in responding to environmental priorities. COMPONENTS Component 1: Rehabilitation and operationalization of damaged solid waste management infrastructure and management of debris, asbestos-contaminated materials and hazardous waste generated due to the PoB explosion (US$8 million) Component 2: Priority actions contributing to policy and institutional work for greening Beirut’s Reconstruction Agenda (US$0.5 million) Component 3: Management and technical assistance (US$1.50 million) FINANCING LFF: US$10 million ALIGNMENT WITH 3RF Pillar: Improving Services and Infrastructure PILLAR AND PRIORITY AREA Priority areas: Environment under 3RF Port Sector and “Urban Services Pillar” strategic priority 3RF CROSS-CUTTING ƒ The proposed recycling of debris and other waste streams provide opportunities to address gender gaps in the sector (e.g. more limited access for women to PRIORITIES: GENDER, economic opportunities in the waste sector, lower involvement of women compared to men in decision-making, etc.)18. Needed assessments will cover female INCLUSION AND and male representation as well of women/men-led groups and associations and activities performed to ensure economic opportunities under various TRANSPARENCY activities to be equally accessible. ƒ The activities will also strengthen the needed environmental reform though a participatory strategy for greening the reconstruction agenda and an action plan for adopting the waste management hierarchy, starting from segregation at source, reducing and recycling, and ensuring a sustainable and inclusive system of waste management in collaboration with Central/ Local Governments as well as participation of NGOs and the private sector. ƒ The operation will ensure the establishment of a collaborative platform to promote citizen’s engagement, inclusive representation and participation, and the design of actions addressing specific needs and interests of women and men in the reconstruction agenda. The collaborative platform will focus on environmental priorities and will identify appropriate communication and outreach tools, noting that this will be closely coordinated with the overarching communication and outreach activities of the LFF. 18 This is in line with the Lebanon’s prioritization of the waste sector (along with the energy and water sectors) to undertake gender mainstreaming. According to UNDP (2021), the waste sector in Lebanon offers great opportunities to address gender gaps in the sector and has a high potential impact, while the current status and capacity of the sector to seize such opportunities are still limited. INTENDED The investment activities will directly benefit about 350,000 people in Beirut affected by the explosion. In addition, the policy and institutional support BENEFICIARIES interventions will indirectly benefit the entire population of Beirut. IMPLEMENTATION United Nations Development Program(UNDP) is the intermediary implementing agency, which is supporting the implementation of the project activities in ARRANGEMENTS close co-ordination with public and private stakeholders. Implementing 3RF Governance Pillar PROJECT CODE P178520 STATUS Active TYPE OF GRANT Bank-Executed OBJECTIVE To begin to establish a transparent, accountable, and inclusive policy and institutional framework for Lebanon’s reconstruction and recovery BRIEF DESCRIPTION The activities will initiate the implementation of reforms in the Lebanon 3RF Governance Pillar jointly developed with the UN and EU in response to the August 2020 Lebanon Port Blast. The activities will be implemented in a phased approach supported by available funding from the Lebanon Financing Facility. The activities in phase 1 of this Pillar will encompass building capacity and providing technical assistance to support: Public Investment Management, the operation of key accountability institutions such as the Court of Accounts and Central Inspection, the creation of a new Anticorruption Commission and laying the foundation for the creation of new public procurement bodies, Procurement Policy Authority and Procurement Review Body. TIMEFRAME 2022 – 2023 (Approval: January 20, 2022; Expected Closing: January 1, 2024) Annex 1. List of Trust-funded Projects 59 CONTEXT Lebanon suffers from severe governance and trust deficits. The governance system is characterized by weak public financial management and public procurement, 60 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 outdated and ineffective institutional arrangements for control and audit, lack of an independent judiciary capable of upholding the rule of law, and ineffective (or non-existent) delivery of public services. Protests, started in October 2019 and continued during the COVID-19 pandemic, reflect a growing consensus that systemic and widespread corruption has drained the state’s treasury, impaired the effectiveness of its institutions, and blocked reforms. Following the explosion at the Beirut Port, civil society organization raised concerns that pervasive political capture and gaps in transparency and integrity will undermine the recovery and reconstruction efforts. As a result of the systemic corruption underlying Lebanon’s governance system, the public has little trust in the ability of public institutions to respond to Lebanon’s multifaceted crises. The economic crisis, followed by the COVID-19 pandemic, the August 4 Port explosion have fed a view among Lebanese citizens that the political system (and political class) is not willing or capable of reform or effective solutions. There is a weak legislative foundation and institutional capacity for transparency and accountability initiatives. Key governance sectors are governed by outdated and ill-suited legislation. This applies to Lebanon’s public financial management (PFM), public procurement, and existing accountability institutions such as the Central Inspection (CI) and Court of Accounts (CoA). When new legislation is adopted, it often lacks the implementing decrees and regulations necessary to make new laws effective. This is the case of the recently adopted Anti-Corruption Law and the new Illicit Enrichment/Asset Declarations Law. At the same time the adoption of the Anti-Corruption Law, along with the adoption of previous transparency and integrity laws, such as Access to Information Law (2017), and Whistleblower Protection Law (2018) as well as the Cabinet’s endorsement of National Anti-Corruption Strategy in 2020 provide constructive steps for combating Lebanon’s corruption. The ongoing debates on draft Public Procurement and Judicial Independence Laws also provide openings to re-establish integrity and transparency and begin to rebuild public trust. COMPONENTS Component 1: Establish Accountability to Build Trust (US$0.275 million) Component 2: Building an Effective Public Investment Management (PIM) System (US$0.075 million) Component 3: Institutionalizing a new Public Procurement Framework (US$0.15 million) FINANCING LFF: US$0.50 million ALIGNMENT WITH 3RF Pillar: Improving Governance and Accountability PILLAR AND PRIORITY AREA Priority areas: Public financial management and public procurement; anticorruption; and justice reform. 3RF CROSS-CUTTING ƒ Transparency and accountability: Component 1 activities specifically focus on strengthening existing and new accountability institutions by ensuring that PRIORITIES: GENDER, they have improved tools and enhanced capacity to monitor reconstruction and recovery activities and hold implementing bodies accountable. Component INCLUSION AND 2 activities will help create a framework to ensure that future Lebanese Governments make best use of public investments through an open and accountable TRANSPARENCY investment management system. The same is true for the public procurement activities under Component 3 which will help to ensure that government purchases are done through a transparent process, with a complaint handling institution that can hold government officials responsible for their procurement decisions and actions. ƒ Gender: While the proposed activities do not directly promote gender equality, all activities will be designed to ensure that they are gender neutral. Where possible, capacity building activities will ensure equal gender representation. For example, training on forensic audit will be provided to all eligible CoA judges which currently enjoys balanced gender staffing with women in a number of senior positions. INTENDED In addition to the Lebanese citizens affected by the port explosion and ongoing socio-economic crises, direct beneficiaries of the grant activities include key BENEFICIARIES government accountability institutions (e.g., Court of Accounts and Central Inspection), as well as policymaking and implementing governmental bodies (e.g., Central Tender Board, Institute of Finance and OMSAR Anticorruption Task Forces). IMPLEMENTATION The World Bank team consists of experienced specialists from the Governance Global Practice’s Financial Management, Procurement and Public Sector teams, ARRANGEMENTS drawing from expertise based in Beirut, Washington, DC and globally. Port of Beirut Reform and Reconstruction PROJECT CODE P176271 STATUS Active TYPE OF GRANT Bank-Executed OBJECTIVE To support port sector reforms in Lebanon to pave the way to rebuild a better Port of Beirut. BRIEF DESCRIPTION As part of the global effort to build back better the Port of Beirut, the activity will support the coordination of a group of experts from the donor community to develop an action plan for the way forward for the Port. A paper will be prepared on good practices in port and border agency management to guide the definition and introduction of the most appropriate governance model for the port sector in Lebanon. It will be disseminated in a webinar and used for engaging with the incoming government. TIMEFRAME 2022 – 2023 (Approval: January 16, 2021; Expected Closing: June 30, 2023) CONTEXT The explosion of August 4, 2020 in the Port of Beirut clearly illustrates the evident governance shortcomings of the current institutional set-up, as well as the risks emanating from the no-reform scenario. Lebanon adheres to a port management model that arguably reflects the complex political-economic realities, and which runs counter to recognized good practices. The current port sector model, with its opaque governance and lack of accountability, was one of the underlying factors that contributed to the tragedy, and ignoring it could exacerbate existing vulnerabilities, generate further crises, and delay meaningful change. Another contributing factor was the lack of operational coordination between the port management and trade compliance agencies, intensified by their outdated procedures and limited use of automation. There is therefore a need for a robust governance structure at various levels, with a clear delineation between policy setting, regulation, port management, and commercial operations. This would need to be anchored in structures endowed with enough capacity to enforce transparency and efficiency and thus maximize economic benefit for the Lebanese people. The establishment of an optimal institutional framework for the port sector would build confidence in a critical segment of the national economic fabric and provide a beacon to other sectors, thereby supporting Lebanon in overcoming its current economic crisis. Annex 1. List of Trust-funded Projects Building on the Rapid Damage and Needs Assessment (RDNA) and the Reform, Recovery, and Reconstruction Framework (3RF), the World Bank has set up a unified platform for communication, coordination and exchange of expertise and international best practice among the diplomatic and donor community to plan and coordinate the support to Lebanon’s port sector. Groups of Experts (GoE) were created, and included focus on the national strategy for ports, institutional reforms, and Customs protocols and port digitalization. COMPONENTS Component 1: Development of a Reform Roadmap Component 2: Collaborative platform for stakeholder engagement FINANCING LFF: US$0.25 million Global Infrastructure Facility Trust Fund (managed by the WB): US$0.60 million 61 ALIGNMENT WITH 3RF Pillar: Improving Services and Infrastructure 62 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 PILLAR AND PRIORITY AREA Priority area: Port 3RF CROSS-CUTTING Reforming the Lebanese port sector aims at establishing a sound and transparent framework. This entails the adoption of the laws and regulations required to PRIORITIES: GENDER, enable ports to: (i) deliver the most cost-effective services; (ii) support national economic development; and (iii) create the enabling environment to attract more INCLUSION AND private sector investment. This approach will meet the demands and aspirations of all stakeholders with a direct interest in the efficient functioning of ports, TRANSPARENCY including Customs and trade facilitation and the Lebanese population overall. To restore trust, the framework comprises the establishment of a new independent Port Authority focusing on good governance and safe port operations, while creating added value for the Lebanese community. The proposed activities will contribute to building this new framework based on the following 3 principles that are paramount to promote a different way of working and promote transparency and accountability in the sector: 1. Clear delineation of mandates: with separation of commercial and technical regulatory functions in a Port Authority, and separation of responsibilities for port technical and economic regulation. 2. Governance: Port tariff setting transparency (informed by cost accounting principles); Port Manager (or GM, MD) professional criterion spelled out; Port Board qualifications, responsibilities and accountabilities spelled out. 3. Transparency: Transparency in identification and nomination of Port Boards, their terms and replacements; nominations from both public sector and private sector associations; annual independent audit of port accounts and annual port sector report made publicly available, giving transparency to port operational activities and plans, with publication of key performance indicators. INTENDED Youth; women; refugees, IDPs and returnees BENEFICIARIES IMPLEMENTATION The grant activities will be implemented by a World Bank team led by the Transport Global Practice and comprising the Urban Development, Digital Development ARRANGEMENTS and Macroeconomics, Trade and Investment Global Practices. The team will be strengthened by international and local consultants. NGOs/CSOs will be recruited to undertake the activities of Component 2 under the supervision of the Bank team. Activities will be complemented by expertise provided with the support of other donors. Strengthening 3RF Oversight, Engagement and Monitoring PROJECT CODE P177084 STATUS Active TYPE OF GRANT Bank-Executed OBJECTIVE To support the establishment and functioning of the 3RF institutional arrangements, and provide dedicated support to strengthening citizen engagement, monitoring and communications across the 3RF. BRIEF DESCRIPTION This project will support three components to help operationalize the 3RF institutional arrangements and strengthen citizen engagement, monitoring and communications across the 3RF. Component 1: Supporting 3RF Secretariat and establishment of Independent Oversight Body (IOB). This component will support the functioning of the 3RF Secretariat and help establish and launch the Independent Oversight Board (IOB). Component 2: Establishing and Operationalizing a Citizen Engagement Initiative for the 3RF. This component will provide support for developing a responsive citizen engagement mechanism to advance transparency and accountability across 3RF priority programs. This will provide citizens with opportunities to engage and provide feedback on 3RF activities, and decision- and policy makers with real time information on prioritization, design and implementation of 3RF activities. Citizen feedback will also constitute an important source of input for the IOB to execute its oversight role. The 3RF’s citizen engagement initiative will be comprised of three elements which will be supported under this component: (i) Digital Citizen’s Portal (or module), (ii) Feedback/Grievance Mechanism, (iii) Community-Based Monitoring. Component 3: Supporting 3RF Strategic Monitoring and Communications. This component will support the 3RF Secretariat’s functions related to progress monitoring and reporting and strategic communications. An important element will be to supplement traditional approaches to monitoring and progress reporting (e.g., based on quantitative results indicators and narrative progress reporting by project teams) with the collection of citizen/beneficiary perspectives. TIMEFRAME 2021 – 2025 (Approval: August 20, 2021; Expected Closing: June 30, 2025) CONTEXT In the aftermath of the Port of Beirut explosion, the World Bank Group, the European Union (EU) and the United Nations (UN) developed a reform, recovery, and reconstruction framework (3RF) to define short- and medium-term needs and priorities. To promote a different way of working, the 3RF is designed as a collaborative process that is based on the participation of the Government, civil society, the private sector as well as development partners. This grant is directly supporting the operationalization of the institutional, monitoring and accountability arrangements proposed under the 3RF. As such, it will also help operationalize key cross-cutting principles of the 3RF related to citizen engagement, transparency and accountability and two-way communications. A three-pronged approach that links progress monitoring with citizen engagement and communications is essential to provide the foundation for successful recovery. Accountability and transparency arrangements will be critical and will need to be adequately resourced, particularly given the high levels of public concern about the management of the reconstruction process. COMPONENTS Component 1: Supporting the 3RF Secretariat and establishment of the IOB (US$0.3 million) Component 2: Establishing and Operationalizing a Citizen Engagement Initiative for the 3RF (US$0.35 million) Annex 1. List of Trust-funded Projects Component 3: Supporting 3RF Strategic Monitoring and Communications (US$0.2 million) FINANCING SPF: US$ 0.025 million LFF: US$0.825 million ALIGNMENT WITH 3RF This grant directly supports the operationalization of the institutional, monitoring and accountability arrangements proposed under the 3RF (see 3RF section 5, PILLAR AND PRIORITY pp. 60-64). It will also help operationalize key cross-cutting principles of the 3RF related to e.g., citizen engagement, transparency and accountability and two- AREA way communications. 63 3RF CROSS-CUTTING ƒ Promoting gender equality: To ensure that women have equal opportunities and say in Beirut’s recovery and rehabilitation, activities financed by this grant 64 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 PRIORITIES: GENDER, will adopt a gender sensitive approach by: (i) collaborating with NGOs/CSOs with high levels of female representation and encouraging the deployment of INCLUSION AND female citizen monitors and facilitators for survey design and/or focus group discussions; (ii) encouraging equal levels of female and male representation TRANSPARENCY on the IOB; (iii) ensuring that the program level feedback/grievance mechanism has referral pathways for gender-based violence complaints, including links with related activities promoted by the ABAAD NGO and ISF hotline, and alignment with the feedback/grievance management approach of the proposed LFF project on social recovery (which, among others, aims to support shelters for survivors of Gender Based Violence in Beirut); and (iv) collection, analysis and reporting of gender disaggregated data through the feedback/grievance mechanism and citizen surveys. ƒ Targeting the most vulnerable populations: This grant will help to promote differentiated and inclusive approaches for information sharing and engagement with vulnerable groups, including women, persons with disabilities, refugees, gender and sexual minorities, etc. To the extent possible, online data will be shared in open and user-friendly formats in Arabic and English. Uptake channels for the 3RF’s feedback/grievance mechanism will be tailored to ensure that they are accessible for various groups, and data tracked on feedback received and resolved will be disaggregated by the nature of the issue as well as age, disability, etc. ƒ Promoting strong focus on citizen and community engagement: The main objective of the grant is to support a range of citizen engagement approaches that will rely not only on consultations with beneficiaries and the general public on specific project interventions, but also on more collaborative approaches such as community monitoring whereby citizens adopt a more “hands-on” approach to oversee and report on the progress of project implementation. Public feedback will be compiled on regular basis (via the Secretariat) and with support of the grant, and program level beneficiary/grievance mechanisms and citizen surveys, which will be shared by the 3RF Secretariat and analyzed/scrutinized by the Consultative Group and the IOB as part of their oversight roles. ƒ Promoting transparency and accountability: By supporting the 3RF Secretariat and the IOB, the grant will directly promote the integration and mainstreaming of transparency and accountability in recovery planning, programming, and implementation. By supporting the IOB and community monitoring, the grant will also support social accountability and the role of civil society and harness the benefits of technology and innovation in enhancing transparency and openness. IOB reporting and monitoring will provide CSOs/NGOs with a platform to express their views on 3RF implementation and hold implementing bodies accountable for agreed outputs and results. The dialogue and potential collaboration with Central Inspection on the 3RF Citizen Engagement Mechanism and the hosting of a CE interface on the IMPACT platform, will also indirectly contribute to strengthening the role of formal oversight institutions. INTENDED Beneficiaries of grant activities will be the Lebanese public with a focus on people affected by the Beirut port-explosion. Grant activities will also aim to support BENEFICIARIES and inform members of the 3RF institutional arrangements, notably members of the Independent Oversight Body. IMPLEMENTATION This grant is managed by a small cross-sectoral World Bank team (FCV, GOV, SSI) working closely with the 3RF Secretariat and EU and UN counterparts from ARRANGEMENTS the 3RF technical team. The 3RF Secretariat will coordinate as needed with government/public administration counterparts including Central Inspection and Court of Accounts as well as with parliament, judiciary and municipal officials. Coordination will focus on implementation of 3RF program overall, and seeking counterpart contributions on citizen engagement, monitoring and communications task. COVID-19 Vaccination Third Party Monitoring PROJECT CODE P163476 STATUS Contract ended on September 30, 2022 TYPE OF GRANT Bank-Executed OBJECTIVE To conduct independent third-party monitoring of the rollout of World Bank-financed vaccines in Lebanon to ensure safe, effective and equitable vaccine deployment. BRIEF DESCRIPTION The project aims to verify the compliance of the vaccine rollout with the National Deployment and Vaccination Plan, international standards, and World Bank requirements, with respect to supply chain management and administration of COVID-19 vaccines at: (i) key points in the supply chain; and (ii) vaccination sites from the technical, environmental, and social safeguards perspectives. Through a team of 18 field monitors, IFRC monitors the arrival of vaccine shipment to the airport and central storage, as well as a sample of fixed and mobile vaccination sites in the national network on a weekly basis. During monitoring visits, field monitors conduct interviews with a sample of vaccine recipients and health care providers and collect data on vaccine stock on a sampling basis. IFRC also monitors social media platforms. Monitoring activities started on February 14, 2021, one day following the arrival of the first shipment of Pfizer vaccines to Lebanon and ended in July 2022.The findings of the monitoring are shared through reports with the WB, the Joint Monitoring Committee (composed of UNICEF, WHO, UNRWA, UNHCR, and IOM and chaired by the WB), the Ministry of Public Health (MoPH), the National Vaccination Committee and the Vaccine Executive Committee. A summary of findings is also shared with the general public using a bi-weekly infographic. Additionally, any observation of deviation from standards requiring immediate attention is shared with the MoPH in real-time through short incident reports for corrective action. Monthly score cards for each vaccination site are also prepared and shared with the MoPH. TIMEFRAME 2022 (TPM activities will cover monitoring until the end of July 2022 using LFF funding) Annex 1. List of Trust-funded Projects 65 CONTEXT The ongoing economic and financial crisis has severely affected the capacity of the health sector to meet the health needs of the country, and the COVID-19 66 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 pandemic has further exacerbated the strains on the health sector. Lebanon experienced an unprecedented surge in COVID-19 with a record-breaking number of confirmed cases during the first week of January 2021 (around 5,500 daily cases). This surge, coupled with a high level of infections among health workers (2,308 cases), overwhelmed hospitals already operating at full capacity. To curb this surge in cases and fatalities, the GOL imposed in January 2021 a nationwide lockdown which was gradually lifted until today. A second peak of transmission, driven by the Covid-19 Delta variant, was observed in August 2021 (peak at 1,628 for a 7-day average of cases), but the intensity in transmission lowered and stabilized to 500 - 600 daily cases (7- day average) in September 2021 with a 31 percent occupancy rate of COVID-19 Intensive Care Unit (ICU) beds and 20 percent of COVID-19 regular beds. In preparation for the introduction of COVID-19 vaccines, the Government of Lebanon (GOL) with the support of the World Bank (WB) and other partners conducted a COVID-19 vaccine readiness assessment. The GOL established a National COVID-19 Vaccine Committee and seven Technical Working Groups to prepare the National Deployment and Vaccination Plan for COVID-19 Vaccines (NDVP). The NDVP was developed by the GOL with the technical support of development partners and was launched on the 27th of January 2021. Per the NDVP, Lebanon seeks to vaccinate 80 percent of the total population by the end of 2022. The NDVP covers the vaccination of both citizens and non-citizens, regardless of their status as long as they are residing on the Lebanese territory. In line with the WHO Strategic Advisory Group of Experts on Immunization (SAGE) Allocation Framework, Lebanon’s NDVP prioritizes high risk populations through a multi-phase roll-out plan. As of January 2022, per the national plan, all individuals 12 years of age and older are eligible to receive a COVID-19 vaccine. The GOL signed a Committed Purchase Agreement with the COVAX Facility to procure 2.73 million doses of COVID-19 vaccines for 1.36 million individuals (with a two-dose regimen), or 20 percent of the total population residing in the country (both citizens and non-citizens). The GOL has also signed a contract with Pfizer to secure 3.25million doses for 1.62 million individuals (2 doses for 24 percent of the total population) in addition to 600,000 doses as a donation for refugees for a total of 3.85 million doses (also a two-dose regimen). The Pfizer-BioNTech vaccine doses have been procured through the WB Lebanon Health Resilience Project (LHRP). The Pfizer vaccine was the first COVID-19 vaccine to arrive in Lebanon on February 13, 2021. Additional doses of Pfizer, Astrazeneca, Sputnik, Sinopharm, Moderna and Janssen vaccines were delivered to the country through direct procurement by the GoL, by the private sector through the GoL, and as donations. Lebanon is currently recording another surge in COVID-19 cases. As of February 4, 2022, the local incidence rate for the past 14 days is 1,954 per 100,000 and the average positivity rate over the last 14 days reached 23.6 percent19. As of February 7, 2022, regular and ICU bed occupancies have reached during the last week an average of 53 percent and 72 percent.20 According to WHO’s situational matrix guideline, Lebanon is currently at Level 4 of community transmission. However, the health infrastructure today is not prepared to contain another transmission surge such as the one observed in January 2021. The vaccination campaign is ongoing and according to the MoPH, 48% of the eligible population (12 years of age and older) have received at least one COVID-19 vaccine dose, and 40% have received two doses. In addition to political and governance risks as well as the macro-economic risks, there are associated risks in the delivery of COVID 19 vaccination. This unprecedented vaccination effort stretches capacities of the MoPH for vaccine delivery and monitoring deployment and inherently entails risks, including those of elite capture, fraud and corruption, given that the demand outstripped the supply. Interventions to improve the traceability of COVID-19 vaccines throughout the supply chain and down to the vaccine recipient level will be a mitigation measure for the project to support. The key institutional risk remains the MoPH’s capacity to carry out the proposed activities and is heightened by the complexity of vaccine acquisition and deployment, especially in the absence of adequate funding to purchase vaccines for the entire eligible population and delays in shipment deliveries due to the global supply constraints. Moreover, the complexity of vaccine deployment is further exacerbated by the large presence of refugees in the country and the potential risk of ensuring equitable distribution of vaccines. Considering the above plans as well as the risks, the WB proposed to verify GOL’s compliance through a Third-Party Monitoring (TPM) of all the stages of the COVID-19 vaccination, including but not limited to storage, stock and temperature maintenance across the supply chain, service delivery at vaccination sites, and vaccine recipients’ and health providers’ perspectives and feedback. 19 MoPH COVID-19 Surveillance in Lebanon Daily Report – February 4, 2022 20 WHO COVID-19 DAILY BRIEF, February 6, 2022 COMPONENTS Component 1: TPM contract value (US$0.783 million) Component 2: WB TPM supervision (US$0.163 million) FINANCING LFF: US$1 million ALIGNMENT WITH 3RF Pillar: Improving Governance and Accountability PILLAR AND PRIORITY AREA 3RF CROSS-CUTTING ƒ The main goal of TPM is to increase transparency and public trust in the COVID-19 vaccination rollout in Lebanon. This is done through regular monitoring PRIORITIES: GENDER, of key steps in the vaccination cycle from arrival of vaccines to deployment, in addition to monitoring of social media platforms. This is also done through INCLUSION AND sharing of key findings with the public and collecting feedback from vaccine recipients and service providers (through dedicated questionnaires used by field TRANSPARENCY monitors). ƒ The COVID-19 vaccination plan aims to be inclusive and non-discriminatory as the NDVP clearly states that all persons residing in Lebanon will have access to COVID-19 vaccination regardless of nationality, sex, religion, etc. One of the objectives of TPM is to verify that this commitment is applied in practice through the verification of the vaccine rollout across vaccination sites. It is also worth noting that TPM covers vaccination sites in all areas in Lebanon, including underserved and remote areas, to ensure proper levels of inclusion. INTENDED All beneficiaries of the COVID-19 vaccination plan, including youth; women; people with disabilities; refugees, IDPs and returnees BENEFICIARIES IMPLEMENTATION The project is implemented as a Bank-Executed Trust Fund (BETF). The International Federation of Red Cross and Red Crescent Societies (IFRC) is the TPM agent ARRANGEMENTS undertaking this task. The scope of IFRC’s TPM is limited to vaccines financed by the WB. In addition to contracting IFRC as the Third-Party Monitoring Agency, the WB will also be responsible for the overall supervision of the project’s implementation. The WB will ensure quality control of IFRC deliverables and will act as a link between IFRC and relevant stakeholders (including the Ministry of Public Health, the National Vaccination Committee, the Vaccine Executive Committee and others) to ensure sharing of findings and implementation of corrective measures as needed. Annex 1. List of Trust-funded Projects 67 ANNEX 2. 68 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 RESULTS FRAMEWORK Summary of material changes: Development Objective indicators: The first development objective indicator “cumulative number of direct beneficiaries of LFF projects” has been removed, as projects are measuring beneficiaries in different ways that make it difficult to aggregate (e.g., as individuals, as households, as SMEs). Second, the citizen perception indicator will be measured once progress has been made on the 3RF citizen engagement module. Outcome indicators: Only one indicator has been revised. Under Focus Area 2 – Reconstruction with Integrity and Transparency – the indicator “Forensic Training Workshop Delivered” was changed to “Peer review of forensic audit for quality assurance and training delivered.” This is planned for Fall of 2023. In addition, some targets were revised for the Social Recovery project. Trust Fund Performance and Management indicators: First, the “amount of grant contributions raised per year” has been changed to “total amount of grant contributions raised” and the target has been revised to US$150 million to more accurately reflect fundraising objectives given current contribution levels. Second, the target for the “disbursement ratio of active RE projects” has been updated to reflect targets for each year of the LFF’s implementation. Third, the target for “Partnership Council meeting frequency” has been revised down to 1-2 meetings per year to reflect the less frequent need for PC meetings, given other forms of engagement, such as technical consultations, project site visits, roundtable events, and email exchanges. Fourth, the Communications and Visibility Plan indicator has been revised to be more specific, measured by the number of unique visitors to the LFF website. Unit of Baseline End Target Measure (2020) (2025) Status Development Objective: The Lebanon Financing Facility (LFF) seeks to support the immediate socio-economic recovery of vulnerable people and businesses following the explosion in Beirut on August 4, 2020, and to build the foundation for medium-term recovery and the sustainable reconstruction of the Port of Beirut and affected neighborhoods. Indicator(s) Citizen perception of 3RF progress21 Number 0 TBC N/A 21 This will be measured as part of the 3RF Citizen Engagement module, the development of which has been delayed. The World Bank team is currently exploring options to incorporate the CE module in the 3RF webpage. Unit of Measure Baseline End Target Status FOCUS AREA 1: SOCIOECONOMIC AND BUSINESS RECOVERY 1.1 Supporting Beirut’s Immediate Social Recovery Services Development Objective 1.1: To support the immediate social recovery needs of vulnerable groups following the port of Beirut explosion. Outcome A: Increased access to services for GBV survivors, people with mental health challenges, older persons and persons Target end date: 2023 with disabilities Indicator(s) A1: Number of direct project beneficiaries (disaggregated by GBV, mental health and Number 0 8,387 2,070 persons with disabilities and older persons programs, and by gender) [GBV: 837; [GBV: 222 (24 boys); Mental health: Mental health: 1,610; 6,400; Older persons and persons Older persons with disabilities: 241 and persons with (174 persons with disabilities; disabilities: 1150] 67 older persons)] Intermediate Indicator(s) A2: Total NGOs receiving sub-grants from the project Number 0 17 12 Outcome B: Increased quality of services for GBV survivors, people with mental health challenges, older persons and Target end date: 2023 persons with disabilities Indicator(s) B1: Percentage of cases following project improved mechanisms and/or protocols Percentage 0 85 0 (disaggregated by GBV, mental health, persons with disabilities and older persons programs, and by gender) Intermediate Indicator(s) B2: Number of NGO/care workers benefitting from project-provided training Number 0 556 86 Annex 2. Results Framework (disaggregated by gender) B3: Public Sensitization Awareness campaign modules on GBV, mental health and Number 0 3 0 disability and old age supported by the project 69 Unit of Measure Baseline End Target Status 70 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 1.2 Environmental Recovery, Restoration and Waste Management Development Objective 1.2: To support emergency environment control measures in Beirut City from impacts of the August 2020 explosion and support planning for longer term environmental restoration efforts Outcome C: Rehabilitation of damaged solid waste management infrastructure and management of asbestos-contaminated Target end date: 2024 debris generated due to the PoB explosion Indicator(s) C1: Amount of demolition waste at identified storage sites safely managed with control Total tons 0 150,000 0 measures (site securing, containment measures, disposal or treatment) C2: Amount of municipal solid waste generated in Beirut safely managed and disposed Total tons/day 0 650 0 of Intermediate Indicator(s) C3: Solid waste management infrastructure damaged due to the explosion is Yes/No No Yes No rehabilitated and operationalized C4: Segregation, collection and transportation measures initiated in Beirut city for Yes/No No Yes No integrated solid waste management and sustainability of rehabilitated infrastructure Outcome D: Policy and institutional support for greening Beirut’s Reconstruction Agenda Target end date: 2024 Indicator(s) D1: People affected by the explosion benefitting from improved urban living conditions Number 0 350,000 0 Of which number are women Number 0 175,000 0 Intermediate Indicator(s) D2: Collaborative platform for stakeholders’ engagement in the environmental agenda Yes/No No Yes No of Beirut established and operational 1.3 Beirut Housing Rehabilitation and Cultural Heritage and Creative Industries Recovery Development Objective 1.3: To: (i) support the rehabilitation of cultural heritage residential buildings and the access to sustainable rental solutions for vulnerable households directly affected by the Port of Beirut explosion; and (ii) support the recovery of the cultural production in Beirut. Outcome E: To pilot the rehabilitation of a select number of severely damaged residential heritage buildings Target end date: 2025 Indicator(s) E1: People benefiting from resilient rehabilitated residential units Number 0 560 0 Of which are members of female-headed household Percentage 0 25 0 Owners benefiting from resilient, rehabilitated residential units Number 0 210 0 Tenants benefiting from resilient, rehabilitated residential units Number 0 350 0 Beneficiaries reporting satisfaction with project activities Percentage 0 75 25 Unit of Measure Baseline End Target Status Intermediate Indicator(s) E2: Residential units rehabilitated according to resilience standards Number 0 160 0 Of which are female-headed households Percentage 0 25 0 E3: Rental contracts signed for rehabilitated units Number 0 100 0 Of which, are signed with renters previously living in the target area Percentage 0 75 0 Of which, are signed with newcomers Percentage 0 25 0 E4: People benefitting from trainings or knowledge sharing activities related to technical Number 0 100 15 rental support Percentage 0 50 50 Of which, are female E5: DGA, PCH and municipal staff trained on providing support to vulnerable households Number 0 8 4 Of which, are female Percentage 0 25 50 E6: Person-days of temporary employment created under the project Number 0 200,000 960 Outcome F: To provide emergency support to creative entities and practitioners Target end date: 2025 Indicator(s) F1: Direct beneficiaries of cultural production work Number 0 1,300 0 Of which are female Percentage 0 50 0 Of which are youth Percentage 0 40 0 Cultural entities supported in cultural production work Number 0 65 0 Cultural practitioners supported in cultural production work Number 0 85 0 Beneficiaries reporting satisfaction with project activities Percentage 0 75 0 Intermediate Indicator(s) F2: Grants disbursed to cultural actors Number 0 150 0 F3: Grants achieving objective Percentage 0 95 0 Annex 2. Results Framework F4: Indirect beneficiaries from cultural productions (disaggregated by gender) Number 0 10,000 0 1.4 Building Beirut Businesses Back Better (B5) Development Objective 1.4: Support the recovery of targeted micro and small enterprises (MSEs) and sustain the operations of eligible MFIs. Outcome G: Support the recovery of MSEs Target end date: 2024 Indicator(s) G1: Share of Micro and Small beneficiary enterprises that are operational for at least 12 71 months after receiving the grants Percentage 0 80 0 Of which are women owned or led Percentage 0 30 0 Unit of Measure Baseline End Target Status 72 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Intermediate Indicator(s) G2: Number of Micro and Small enterprises receiving grants Number 0 4,300 1,850 Of which are women owned or led Percentage 0 30 32 G3: Amounts of funds disbursed to Micro and Small Enterprises Amount (USD) 0 17,800,000 7,100,00 (8,800,000 committed) G4: Number of jobs maintained within 12 months of receiving the grants Number 0 4,472 0 (Not yet due) G5: Share of Micro and Small women owned or led enterprises receiving business Percentage 0 100 0 (Not yet implemented) support training G6: Beneficiary Engagement: Share of women owned or led beneficiary firms who Percentage 0 75 0 (Not yet due) reported being satisfied with technical support offered Outcome H: Sustain the operations of MFIs Target end date: 2024 Indicator(s) H1: Number of Microfinance Institutions operational for at least 24 months after Number 0 3 0 (Not yet due) receiving support Intermediate Indicator(s) H2: Number of MFIs receiving financing Number 0 3 3 H3: Amount disbursed to Microfinance Institutions Amount (USD) 0 4,900,000 944,866 H4: Employment Capacity of Microfinance Institutions maintained Percentage 0 80 0 (Not yet due) H5: Number of Microfinance Institutions receiving gender sensitive training Number 0 3 0 (Not yet due) Unit of Measure Baseline End Target Status FOCUS AREA 2: PREPARING FOR REFORM AND RECONSTRUCTION 2.1 Reconstruction with Integrity and Transparency – Proposed Governance Activities (Phase 1) Development Objective 2.1: To begin to establish a transparent, accountable, and inclusive policy and institutional framework for Lebanon’s reconstruction and recovery. Outcome I: Improved capacity to conduct audits in compliance with international standards and good practices Target end date: 2023 Indicator(s) I1: Peer review of forensic audit for quality assurance and training delivered. Yes/No No Yes No (Review of pilot forensic audit planned for Fall 2023) I2: Plan for centralized asset and interest declaration system prepared Yes/No No Yes No (Work to begin in Spring 2023) Outcome J: Initial basis established for improved PIM practices and implementation of the public procurement reform to manage scarce Target end date: 2023 resources efficiently and effectively for reconstruction and recovery Indicator(s) J1: PIM Action Plan formulated and approved by key stakeholders Yes/No No Yes No (Review and update of PIM Action Plan ongoing, expected by June 2023) J2: Internal Manuals, Staffing TORs, Organizational Circulars developed for Public Procurement Yes/No No Yes Yes (Standard Procurement Agency and for Procurement Review Body Documents prepared and submitted to PPA) 2.2 Reforming Lebanon’s Port Sector Development Objective 2.2: To support port sector reform in Lebanon to pave the way to rebuild a better, modern and digital Port of Beirut. Annex 2. Results Framework Outcome K : Detailed port reform road map delivered and consulted upon Target end date: 2022 Indicator(s) K1: Detailed port reform road map delivered and consulted upon Yes/No No Yes No K2: Collaborative platform for stakeholders’ engagement on the port sector established and Yes/No No Yes Yes operational 73 Unit of Measure Baseline End Target Status 74 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 FOCUS AREA 3: COORDINATION, MONITORING, ACCOUNTABILITY AND OVERSIGHT 3.1 Coordination, Monitoring, Accountability and Oversight Development Objective 3.1: To support the establishment and functioning of the 3RF institutional arrangements with dedicated support to strengthening citizen engagement, monitoring and communications across the 3RF. Outcome L: The 3RF institutional arrangements for transparent, inclusive, and accountable program implementation have been established and are Target end date: 2023 functioning. Indicator(s) L1: The Independent Oversight Body has been established and is functional (i.e., IOB issues policy and Yes/No No Yes Yes technical recommendations to the 3RF Consultative Group and/or Secretariat) Outcome M: An inclusive and responsive citizen engagement approach for the 3RF has been established and is operational. Target end date: 2023 Indicator(s) M1: 3RF beneficiaries reporting satisfaction with citizen engagement processes and transparency of Percentage 0 70 0 information-sharing (disaggregated by gender and age) Intermediate Indicator(s) M2: Program level feedback addressed and responded to within a publicly stipulated timeframe Percentage 0 90 0 (disaggregated by gender and age) 3.2 COVID-19 Vaccination Third-Party Monitoring Development Objective 3.2: To conduct independent third-party monitoring of the rollout of World Bank-financed COVID-19 vaccines in Lebanon to ensure safe, effective and equitable vaccine deployment. Outcome N: Vaccine supplies are managed according to established standards at vaccination sites Intermediate Indicator(s) N1: Percentage of sites visited where vaccines are stored correctly Percentage 0 >75% 100% N2: Percentage of sites visited where safety boxes are used for safe disposal of syringes and needles Percentage 0 >75% 95% Outcome O: Vaccines are administered as per international and NDVP standards Intermediate indicator(s) O1: Percentage of sites visited where correct injection technique was used Percentage 0 >75% 100% O2: Percentage of interviewed vaccine recipients who are satisfied with the vaccination process Percentage 0 >75% 97% O3: Percentage of interviewed vaccine recipients who are aware of complaint mechanisms Percentage 0 >75% 17% O4: Percentage of sites visited where no interruption in the national electronic registration system occurred Percentage 0 >75% 99% of for more than 30 minutes monitoring visits Unit of Measure Baseline End Target Status TRUST FUND PERFORMANCE AND MANAGEMENT Development Objective 4: To support effective trust fund management Outcome P: The LFF is managed and implemented effectively. Indicator(s) P1: Total amount of grant contributions raised US$ million 0 US$150 US$69.98 (2020‑2022) P2: Disbursement ratio of active RE projects22 Percentage 0 Year 1: 15-20 Year 1: 16.5 Year 2: 30-40 Year 2: 31.4 Year 3: 45-60 Year 4: 60-80 Year 5: 75-100 P3: Timeliness of disbursements for RE projects Average number of months between project N/A 3-4 months 2.5 months23 effectiveness to initial disbursement P4: Portfolio quality Percentage of active LFF RE projects rated 0 75 100 moderately satisfactory or higher P5: Partnership Council meeting frequency Number of meetings with agenda circulated N/A 1-2 meetings 2021: 2 meetings in advance and minutes circulated promptly per year 2022: 1 meeting P6: Communications and Visibility Plan (CVP) Number of unique visitors to the LFF website 0 500 2021: N/A per year 2022: N/A 2023: TBD P7: Share of RE projects that are gender-tagged24 Percentage 0 100 100 Annex 2. Results Framework 22 This is based on the amount of project funds disbursed out of total project funds allocated (not out of total contributions). In total, since the LFF’s establishment and up to December 31, 2022, US$17.83 million has been disbursed out of a total allocation of US$56.75 million. This amount does not include disbursements for administrative fees and expenses. 23 This result is based on the time between project effectiveness and initial disbursement. For the B5 Fund, this was 3 weeks; for the Social Recovery project, this was about 4.2 months; for the Housing Rehabilitation project, this was about 3 months; and for the Environmental Recovery project, this was about 2.3 months. 24 For a project to be considered gender tagged, it needs to (i) clearly identify gender gaps in the area of project influence based on evidence; (ii) incorporate into the project design actions that directly aim to close 75 the identified gaps, accompanied by adequate resources; (iii) include indicator(s) with specified targets, to allow the measuring of progress towards the closing of the gap. This Theory of Change needs to be clearly articulated, and will be assessed by the WBG MENA Gender Team. ANNEX 3. 3RF CO-CHAIR STATEMENT Co-chair Statement by the Prime Minister of Lebanon, the UN Resident Coordinator, and Representatives of Donors and Lebanese Civil Society Beirut, April 12, 2023 – The Reform, Recovery and Reconstruction Framework (3RF) was set up after the devastating explosion in the Port of Beirut, as a uniquely inclusive platform to coordinate people-centred recovery in the affected areas, as well as provide a comprehensive plan to support national reforms and investments in reconstruction. Eighteen months after the launch of the 3RF, a wide range of stakeholders were consulted on the strategic way forward. Stakeholders agreed that reform is critical to help Lebanon return to a path of sustainable development, starting with the IMF staff-level agreement. To this end, the 3RF will be continued as an unique platform for inclusive policy dialogue and to make progress on implementing reforms to unlock international support for and investments in reconstruction. Furthermore, the 3RF will not extend its focus on recovery, since other coordination structures in Lebanon are better equipped to address recovery and humanitarian needs. The Lebanon Financing Facility (LFF) will continue to channel funding to support the implementation of 3RF priorities and will provide financial and technical support for implementing the priorities defined by the sector working groups led by government representatives. The LFF 2023 annual workplan will reflect the shift in focus to reforms and their link to mobilization of funds for reconstruction. These decisions will not affect recovery projects currently under implementation. Access to information about the 3RF will be improved through the launching of a dedicated website, which will include a reform tracker, an overview of sector priorities, as well as key results and outcomes of discussions. This will also support the IOB to deliver on its important mandate. The 3RF Consultative Group will provide strategic guidance and mobilize political support at the highest level. Inclusive technical discussions will continue taking place in empowered sector Working Groups where Lebanese state institutions will lead by presenting their proposals and challenges. This will help international organizations and donors prioritize their interventions. Local civil society, including private sector actors, will provide their expertise, monitor progress, promote priority issues, and highlight any challenges. Encouraging collaboration between civil society and state institutions is a priority to build and foster trust between local stakeholders. Convening the full range of stakeholders will bring together the resources needed to make progress possible for the people of Lebanon. To read more about the 3RF, please visit the new 3RF website on https://www.lebanon3rf.org. Comments or questions can be sent to ask@lebanon3rf.org. 76 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Annex 4. LFF Press Releases issued in 2022 ANNEX 4. LFF PRESS RELEASES ISSUED IN 2022 Lebanon Financing Facility Supports Beirut’s Environmental Recovery Efforts and Solid Waste Management Beirut, May 18, 2022 – A new US$10 million grant will help Lebanon mitigate the environmental and health impacts of the Port of Beirut explosion on neighboring population and support the development of a strategic plan for greening Beirut’s reconstruction. The Beirut Critical Environment Recovery, Restoration and Waste Management Program, signed today between the World Bank and the United Nations Development Program (UNDP) in the presence of HE Minister of Environment Nasser Yassine, is financed by the Lebanon Financing Facility (LFF), a multi-donor trust fund established in December 2020 following the launch of the Reform, Recovery and Reconstruction Framework (3RF) to pool grant resources and coordinate financing in support of the immediate socio- economic recovery of vulnerable people and businesses impacted by the Port of Beirut explosion on August 4, 2020. According to the Rapid Damage and Needs Assessment (RDNA) prepared in response to the explosion, physical damages to the environment sector were assessed at US$20 to 25 million and recovery and reconstruction needs were estimated at US$75 to 100 million. The explosion caused severe environmental impacts from resulting huge quantities of waste streams, including hazardous and electronic waste and debris. It also caused significant damage to municipal solid waste management infrastructure; pollution of the marine ecosystem around the explosion site; loss of green cover/vegetation in Beirut City; and short- term increase in dust levels (particulate matter) containing asbestos, during demolition, rehabilitation, and reconstruction of damaged buildings. The presence of hazardous waste material in various waste streams poses a direct and immediate threat to the population and the environment in Beirut. “We are launching today the fourth LFF financed project, after three other projects that address the recovery needs of micro- and small-enterprises, the social recovery needs of affected population groups and housing reconstruction and rehabilitation of cultural and creative industries in damaged neighborhoods in the city,” said Saroj Kumar Jha, World Bank Mashreq Regional Director. “This project will implement environment recovery activities in the city of Beirut to mitigate risks of a solid waste crisis and other environmental impacts which resulted from the Port of Beirut explosion. The project will also strengthen the basis for environmental governance in Lebanon more broadly.” The Beirut Critical Environment Recovery, Restoration and Waste Management Program will help manage and dispose of asbestos-contaminated demolition waste generated from the damaged buildings, rehabilitate damaged solid waste infrastructure and provide technical assistance for their sustainable operation. The project will rehabilitate two damaged solid waste treatment facilities – the Karantina solid waste sorting facility and Coral composting facility. It will also support the improvement of the overall waste management system in Beirut through the implementation of demonstration pilots on integrated solid wate management, including the sorting, collection, transportation and disposal of solid waste, in selected areas impacted by the explosion. Local communities will be engaged in the selection of these pilots, the design of treatement approaches and the evaluation of their performance. Building on its technical expertise in the environmental and waste management sector, strong local presence, and environment project implementation experience, the project will be implemented by 77 UNDP, in close coordination with the Ministry of Environment as well as relevant ministries and other stakehodlers. “Addressing the impacts of the port explosion on the environment and people’s health is of the utmost importance,” said Melanie Hauenstein, UNDP Resident Representative. “The needs in this sector are growing more and more urgent every day, especially on solid waste management and other environmental issues. Our partnership with the World Bank ensures timely action for a sustainable environmental recovery for all of Beirut and beyond. Our approach puts the people of Lebanon at the center, to mitigate the impact of waste, pollution and environmental changes on people’s health and well-being.” The project will adopt the principles of “Build Back Better, Greener, and Smarter” as identified in the 3RF and will employ elements of fit for purpose, right sitting, climate change adaptation, climate smart practices, and greening of project investments. This will be done through the development of a strategic framework for greening Beirut’s reconstruction based on a consultative approach with stakeholders and technical assistance and laboratory analysis for adopting an evidence-based methodology for future environmental action. The project will also prioritize citizen engagement activities through meaningful consultation and feedback mechanisms, participatory mechanisms, citizen-led mechanisms, and the potential for creation of green jobs, given that the waste sector is labor intensive. A Grievance Redress Mechanism will be set up to help close the feedback loop on citizens’ concerns and questions about project activities and ensure transparency. About the Lebanon Financing Facility (LFF) Established in December 2020 in the aftermath of the August 4 Port of Beirut explosion disaster and following the launch of the Reform, Recovery and Reconstruction Framework (3RF), the LFF is a 5-year multi-donor trust fund that will pool grant resources and strengthen the coherence and coordination of financing in support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the explosion. To date, the LFF has received contributions and pledges from the governments of Canada, Denmark, France, Germany, Italy and Norway and from the EU. Subject to the commitment of all Lebanese stakeholders to critical reforms, the LFF will build the foundation for medium-term recovery and the sustainable reconstruction of the Port of Beirut and affected neighborhoods. The LFF prioritizes three focus areas of interventions: 1) Socioeconomic and business recovery; 2) Preparing for reform and reconstruction; and 3) Strengthening coordination, monitoring, accountability and oversight of the 3RF. The LFF will benefit from the World Bank’s high fiduciary standards, through the application of its fiduciary framework for financial management, procurement, and environmental and social safeguards. The LLF will also ensure that programs promote gender equality and community engagement that target women, youth and vulnerable populations. Lebanon Financing Facility Supports Housing Reconstruction, Cultural and Creative Industries and Social Recovery Needs of Vulnerable Groups affected by the Port of Beirut explosion Beirut, February 25, 2022 — Two new grants will help facilitate the return of socio-economically vulnerable households to neighborhoods damaged by the Port of Beirut explosion through historical housing rehabilitation, sustain the livelihoods of affected cultural entities and practitioners and provide immediate social recovery support to vulnerable groups impacted by the aftermath of the explosion. The two projects — the Beirut Housing Reconstruction and Cultural and Creative Industries Recovery project (US$12.75 million) and the Support for Social Recovery Needs of Vulnerable Groups in Beirut project (US$7.8 million) — are funded through the Lebanon Financing Facility (LFF), a multi-donor trust fund established in December 2020 following the launch of the Reform, Recovery and Reconstruction Framework (3RF) to pool grant resources and strengthen the coherence and coordination of financing in 78 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Annex 4. LFF Press Releases issued in 2022 support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the Port of Beirut explosion. “Three months after the launch of the first LFF-financed project — the Building Beirut Businesses Back and Better Fund (B5) —, we are launching today two equally important projects to help improve the lives of vulnerable population groups and the livelihoods of artisans, craftspeople and creators,” said Saroj Kumar Jha, World Bank Mashreq Regional Director. “These two projects would adopt transparent and credible mechanisms for providing assistance to eligible families. The coordinated recovery of the housing and cultural sector is key to the socio-economic revitalization of Beirut’s affected neighborhoods. Such a recovery should be built upon a people-centered, inclusive and participatory approach.” Beirut Housing Reconstruction and Cultural and Creative Industries Recovery (US$12.75 million) The Beirut Housing Reconstruction and Cultural and Creative Industries Recovery Project will prioritize complex, climate-resilient repairs of severely damaged residential heritage buildings located in neighborhoods within 5 km of the epicenter of the blast. Repairs will particularly focus on a subset of vacant damaged residential buildings that were inhabited by lower-income and vulnerable households with low tenure security, thus facilitating the return of displaced households to their homes. Buildings to be rehabilitated will be identified based on four prioritization criteria: geographic scope, level of damage, socio-economic vulnerability, and heritage value. The project will also provide technical assistance and grants to affected cultural entities and practitioners, prioritizing women and women-led entities, operating in targeted cultural and creative industries to provide them with incentives to continue cultural production in neighborhoods affected by the explosion. The project will be implemented by UN-Habitat in close collaboration with local authorities and other government entities, and in consultation with a large body of CSOs, NGOs, and academia. Grants to cultural and creative entities will be approved by a GAC comprised of representatives of government and local cultural entities and chaired by UNESCO. The project was designed through an iterative and participatory process with extensive consultations on its scope, prioritization criteria and implementation arrangements. These consultations included government entities, civil society, academia, development partners and local and international experts. The project will set the foundation for a future scale-up, and longer term, area-based urban recovery and regeneration for the city. “Cities are made for people and the urban recovery of Beirut must focus on the needs of its residents. Placing housing recovery and cultural and creative industries revitalization at the heart of this process has the potential to retain and maximize the social and built fabric of the city, while safeguarding critical housing, land, and property rights. The Lebanon Financing Facility is enabling an important opportunity for UN-Habitat and key government and non-government stakeholders to collectively address immediate needs of people, while laying the foundation for longer term recovery and housing reform,” said Taina Christiansen, Head of UN-Habitat Lebanon Country Programme. Support for Social Recovery Needs of Vulnerable Groups in Beirut (US$7.8 million, including US$2.8 million for the State and Peace Building Fund) The Support for Social Recovery Needs of Vulnerable Groups Project will address the immediate social recovery needs of vulnerable groups who remain impacted by the Port of Beirut explosion. Project beneficiaries will include survivors of gender-based violence, individuals suffering from deteriorated psycho-social wellbeing, and persons with disabilities and older persons facing difficulties in accessing appropriate care due to their disabled or elderly status. The project will be implemented by the International Rescue Committee (IRC). It will pilot an effective, inclusive and sustainable model for non- government support with grants provided directly to a select number of NGOs to provide social services to vulnerable groups affected by the crises in the immediate-to short- term. Beneficiaries of the project include women, men and children survivors and at risk of gender-based violence, people with mental health challenges, persons with disabilities and older persons, as well as migrants and refugees working as domestic workers in Beirut. 79 “This opportunity provides a great prospect to the IRC to champion and resource leadership and action that comes from the communities in which we work,” said Matias Meier, IRC Country Director. “It would embody our vision of success which is: to partner first, and as equals, so that people impacted by crisis and the actors closest to them have the power and resources to respond and drive lasting change. We are aiming to work with around 20 civil society actors; we are very excited to engage with those national leaders in mutual capacity sharing.” The LFF is allowing the channeling of international support to help address the socio-economic recovery needs of the people of Lebanon. Generous pledges and contributions to date from the governments of Canada, Denmark, France, Germany, Italy, Norway and from the EU have totaled US$73.79 million. More donors are invited to come forward in support of the 3RF priorities under the umbrella of the LFF. About the Lebanon Financing Facility (LFF) Established in December 2020 in the aftermath of the August 4 Port of Beirut explosion disaster and following the launch of the Reform, Recovery and Reconstruction Framework (3RF), the LFF is a 5-year multi-donor trust fund that will pool grant resources and strengthen the coherence and coordination of financing in support of the immediate socio-economic recovery of vulnerable people and businesses impacted by the explosion. To date, the LFF has received contributions and pledges from the governments of Canada, Denmark, France, Germany, Italy and Norway and from the EU. Subject to the commitment of all Lebanese stakeholders to critical reforms, the LFF will build the foundation for medium-term recovery and the sustainable reconstruction of the Port of Beirut and affected neighborhoods. The LFF prioritizes three focus areas of interventions: 1) Socioeconomic and business recovery; 2) Preparing for reform and reconstruction; and 3) Strengthening coordination, monitoring, accountability and oversight of the 3RF. The LFF will benefit from the World Bank’s high fiduciary standards, through the application of its fiduciary framework for financial management, procurement, and environmental and social safeguards. The LLF will also ensure that programs promote gender equality and community engagement that target women, youth and vulnerable populations. 80 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Annex 5. Communiqués by the Independent Oversight Body issued in 2022 ANNEX 5. COMMUNIQUÉS BY THE INDEPENDENT OVERSIGHT BODY ISSUED IN 2022 Joint Communiqué Issued by the members of The Independent Oversight Board of the 3RF Tuesday, April 26, 2022 First, the Independent Oversight Board (IOB) of the 3RF welcomes the three new members who joined in April; Ms. Carine Tohme representing ALDIC (The Lebanese Association of Taxpayers’ Rights), Ms. Grace Eid representing NUSANED Foundation, and Mr. Fadel Fakih representing CLDH (Lebanese Center for Human Rights). In light of the recent developments regarding the capital control law, a key entry point to ensuing reforms, the IOB would like to remind the parliament and the Council of Ministers that ensuring the rights of citizens against abuses by people or by the government is at the thrust of the domestic and international legislation and in particular the universal declaration of human rights that Lebanon contributed to its drafting. The current capital control draft law in its current version will further destroy the Lebanese economy. It relieves banks from judiciary pressure, allows banks and authorities to remain unaccountable, and hinders the effects of lawsuits filed in Lebanon and abroad. Furthermore, the draft law violates the Constitution by disrupting the free economic system and the equality between citizens. It also places the depositors at the mercy of a committee that is not subject to any judicial authority. Economically, voting the law means obstructing foreign investments, impeding financial inclusion, paralyzing an economy already in its worst, in addition to stimulating money laundering and increasing the size of the illegal parallel economy; all of which foster placing Lebanon on black lists with international regulatory institutions. Moreover, a stand-alone capital control law would disincentivize financial restructuring and fiscal and monetary reforms that can be delayed sine die. It should imperatively be accompanied by (1) the CoM approving a banking restructuring strategy, (2) Parliament enacting an appropriate emergency bank resolution law, (3) Parliament voting important amendments to the banking secrecy law, (4) auditing the Central Bank and the Electricite Du Liban, (5) unifying the foreign exchange rate and (6) passing a fair 2022 budget adapted to Lebanon’s current situation, and (7) adopting an apt economic plan for the country. Finally, the Capital Control law should be accompanied by the determination of liabilities related to the financial and banking crisis, in order to restore accountability and put an end to the culture of impunity. 81 Beirut, August 4, 2022 Press release issued by the Independent Oversight Board of the 3RF (Reform, Recovery and Reconstruction Framework). On the second commemoration of the Beirut port explosion: No reform, No recovery, only impunity is the master of the situation. On the two-year commemoration of the Beirut port explosion, the Independent Oversight Board of the Reform, Recovery and Reconstruction Framework re- examined what has been achieved since the launch of the recovery plan, which pursues two tracks in parallel, a people-centered recovery track and a reform and reconstruction track. This plan provided a voice for civil society at the level of the consultative group (CG) and at the oversight level by appointing members of the Independent Oversight Board from the civil society. The consultative group formed of multistakeholders including the government, civil society and the international community held till date 4 consultative meetings. The responsible stakeholders sought to secure the appropriate framework to implement the terms of the plan that was officially approved within the ministerial statement of the Mikati government. However, the last meeting that took place in this context on April 4th, 2022, at the Grand Serail showed that most of the reforms are still within the "in progress" status, meaning that none of the reforms, yet, has been achieved. It is significant to point out that the reforms included within the recovery plan are structured around four strategic pillars: (1) improving governance and accountability; (2) jobs and opportunities; (3) social protection, inclusion, and culture; (4) improving services and infrastructure. 82 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Annex 4. LFF Press Releases issued in 2022 On the 4th of August’s commemoration, the independent oversight board reminds that the state, with all its institutions, did not make the required efforts to respond to the requirements of the economic, social and financial crises that Lebanon is going through and the humanitarian crisis that erupted after the port explosion; regardless of the government hosting constant meetings at the Serail, or ministries and relevant institutions participating in the consultative working groups, yet what reflects the seriousness of the response is what has been achieved and accomplished within those two years, and what has really been achieved is almost negligible. In a review of the progress made by the (former) United Nations Resident Coordinator for Humanitarian Affairs, Najat Rushdi, during the last consultative meeting of the stakeholders at the Grand Serail last April, it became clear that the reforms were at a halt. Therefore, we would like to point out on the following: At the investigation level into the Beirut blast crime Impunity still prevails within the investigation of the crime of the port blast, as the judicial investigation was obstructed and the overall investigations were put on hold due to lawsuit dismissals, whereby some of which were returned (without any fines for violating the procedures). The issue of immunities stood up in the face of the judicial investigation, and the newly elected parliament tried in the parliamentary session of July 26th, 2022, to form the Supreme Council for the Trial of Presidents and Ministers by appointing deputies by acclamation, which does not conform to the principle of fair trial, with our reservation on all exceptional courts. 83 The independent oversight board considers that the state, with its executive and legislative institutions, committed constitutional violations by interfering in the work of judiciary and disrespecting its independence and the principle of separation of powers, which impeded the course of justice and placed barriers to the continuance of the investigation, thus delaying the course of justice in this crime, and enrooted the concept of impunity that began with the end of the civil war. At the reforms level At the required reforms level, the Public Procurement Law has been completed, yet it is clear that there has been an unjustified delay in the appointment of the Public Procurement Authority. Likewise, the Anti-Corruption Commission was appointed through a process that lacked transparency, but no budget was approved for it. As for the access to information law, most of the ministries directly involved in the Reform, Recovery and Reconstruction Framework still do not comply with the provisions of public disclosure according to Law No. 28/2017. In addition, the electricity regulatory body that is a reform priority and the port's management authority have not yet been appointed. To date, the national budget for the year 2022 has not been yet approved upon, despite the economic necessity. The law on the independence of the judiciary has not been approved upon. The National Commission for Human Rights is still without a budget and its work scope has been obstructed by the amendment of Law 62/2016, which linked the start of its work to the adoption of the decrees despite the oath. This is in addition to the failure to pass the laws required to advance economic and financial reforms and the adoption of nominal laws, such as the banking secrecy law. 84 LFF TRUST FUND ANNUAL PROGRESS REPORT 2022 Annex 4. LFF Press Releases issued in 2022 The newly elected parliament is required to abide by the implementation of the provisions of the recovery plan and should accelerate the discussion and adoption of the laws related to the reforms it stipulates, and to exercise its oversight role over the government’s work and hold it accountable for the implementation of these commitments, as soon as this government is formed. The caretaker government must use its powers as deemed necessary, and the designated prime minister must expedite the formation of a government that performs its duties and implements its obligations. At the aids level Four financing initiatives have been launched by the Lebanon Trust Fund to Support the Recovery program, the Fund for Better Rebuilding Business Enterprises in Beirut,The Beirut Housing Reconstruction and Cultural and Creative Industries Recovery Project, and the Project to Support Social Recovery Needs for Vulnerable Groups in Beirut and the Agreement on the Environmental Rehabilitation Program for Salt and Waste Management in Beirut. To date, the interactive platform has not been launched, which was supposed to be the cornerstone of the public communication with citizens, to inform them of all grants, aids, and work done, and to provide complaints mechanisms. More efforts are required from those responsibles of managing these grants to enhance public communication, listen to people and reach them in an inclusive manner to reach all affected people with transparency, as well as focusing on not providing any support that may be used to violate human rights, through establishing discriminatory and unfair mechanisms or that can harm official institutions and the transparency. 85 CONTACT INFORMATION World Bank Office Beirut, Lebanon Jean-Christophe Carret, Country Director jcarret@worldbank.org Mouna Couzi, Program Manager of the LFF mcouzi@worldbank.org For more information on the LFF, please visit: www.lebanon3rf.org/lebanon-financing-facility