Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) Earthquake Housing Reconstruction Project (P155969) SOUTH ASIA | Nepal | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 4 | ARCHIVED on 01-Jun-2017 | ISR28068 | Implementing Agencies: Ministry of Federal Affairs and Local Development, Ministry of Urban Development, Ministry of Finance, National Reconstruction Authority Key Dates Key Project Dates Bank Approval Date:29-Jun-2015 Effectiveness Date:28-Jan-2016 Planned Mid Term Review Date:15-Jan-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-Jul-2020 Revised Closing Date:31-Jul-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to restore affected houses with multi-hazard resistant core housing units intargetedareas and to enhance the government's ability to improve long-term disaster resilience. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Housing Reconstruction:(Cost $185.00 M) Disaster Risk Management Systems:(Cost $10.00 M) Project Implementation Support:(Cost $5.00 M) Contingency Emergency Response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 6/1/2017 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) Implementation Status and Key Decisions NRA has made progress in the enrollment of eligible beneficiaries and release of the first tranche of housing subsidy. Out of 626,695 eligible beneficiaries, 566,492 (90%) beneficiaries have been enrolled in the broader housing reconstruction program. Of this 559,790 (98.82%) beneficiaries have received the first tranche of the housing subsidy as of May 09, 2017. At the technical level, notable progress is made in: (i) streamlining of implementation arrangements; (ii) core staffing at the PIUs at district and central levels including the establishment of NRA offices in nine districts; and (iii) dissemination of construction designs and standards coupled with homeowner training and awareness campaigns on resilient reconstruction. However, there remains an urgent need to expand technical assistance and facilitation to homeowners during the current and upcoming construction seasons, and strengthen the inspection and compliance monitoring of houses under construction for timely release of 2nd and 3rd tranches. The likelihood of achieving the Project Development Objective (PDO) is downgraded to “Moderately Satisfactory”. The 1.18% enrolled beneficiaries await release of 1st tranche owing to non-availability of banking systems in remote areas and data variance. Most of the 60,203 un-enrolled eligible beneficiaries, await either completion of documents or relocation. NRA/MOFALD have agreed to complete sharing of classifications of beneficiaries with the Bank. As of May 6, 2017, a total of 51,836 houses are reported to be under construction, of which 36,867 are completed up to plinth level and 2,013 up to lintel level. Trends indicate that pace of reconstruction is picking-up. Increased pace of inspections and subsequent release of second tranche to more beneficiaries would encourage other house owners to start construction of their houses. There is a pressing need to strengthen overall coordination between NRA, MoFALD, and MoUD at all levels. The establishment of NRA offices at district-level is appreciated with recognition the value it adds. The staffing of Project Implementation Units (PIUs) has improved, however, there are inordinate delays in hiring and retention of several key consultants. There is an urgent need to recruit a Land & Resettlement Expert, pending from the March 2016 review mission. With regards to technical manpower, MoUD faces challenges in managing and retaining human resources. Capacity constraints are conspicuous, therefore seeking alternative solution is suggested, including: (i) hiring a third party service provider/vendor to provide technical assistance to technicians and beneficiaries; and (ii) hiring a third party service provider/vendor to help MoUD conduct inspections (MoUD DL- PIU engineers to coordinate and manage staffs of third party service provider/vendor). The areas that need attention of NRA management to expedite the implementation are (i) as mentioned in the preceding paragraph, recruitment of the Procurement Specialist, Financial Management Specialist, and Environment and Safeguards specialists in NRA and MOUD CLPIU; (ii) digitization and uploading of Participation Agreements (PAs); and (iii) digitization of grievance cases in the MIS. Overall, the management and coordination structure needs to be defined clearly on an urgent basis. Disbursement of housing grants. From 17,172 houses certified at plinth level and 722 houses at roof/lintel level by the MoUD, 7,306 beneficiaries have received the 2nd installment while no beneficiaries have received the 3rd and final tranche. Post inspection, it currently takes approximately one month to disburse money to households once their work has been certified by the MoUD. NRA is recommended to look into mechanisms to speed up the process. Post discussion with the stakeholders, the NRA has simplified the inspection forms to the extent possible. However, it is noted with concern that the procedure adopted for inspections is likely to be complex due to universal use of Annex-10.1 of the inspection guidelines in case of any deviation from minimum standards. The procurement under MoFALD CL-PIU has started moving at a satisfactory pace. However, procurement management remains weak at the NRA and the MoUD. Despite several efforts, both the agencies have not been able to recruit procurement consultants. In order to avoid further delays in project procurement, a number of actions have been agreed, especially: (i) As per the provisions of the Financing Agreement, procurement consultants, and financial management consultants need to be contracted immediately for the NRA and the MoUD and their services should be maintained uninterrupted throughout the project period; (ii) The Project (NRA, MoUD & MoFALD/ CL-PIUs) should use the Bank’s new online procurement STEP system; and (iii) Considering the emergency nature of the Project and urgent need for making procurement decisions, delegation of procurement authority to the Project Coordinator is strongly recommended. In view of the current state of procurement affairs, it is recommended that except for procurement of tablets, no hardware should be procured, until procurement consultants are in place in NRA and MOUD. In order to fulfil any emerging mobility needs, vehicles may be rented. Considering the continued weakness in procurement management, especially under the NRA and the MoUD, the procurement performance rating is downgraded to “Moderately Unsatisfactory”. Keeping in view current FM capacity, giving full financial management authority of the proposed Reconstruction Fund to NRA cannot be supported. It is recommended that NRA should hire a dedicated consultant, to enhance the Financial Management capacity. As the housing grant is transferred through individual bank accounts, therefore, once capacity is increased satisfactorily, NRA may be incrementally given management authority of the Fund. NRA has managed to develop most of the modules of the MIS but data entry and management remains a concern. There is need to improve record 6/1/2017 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) keeping of the Participation Agreement, Inspection Forms, Grievance Forms and other important documents which are part of the project. MoFALD has received 189,272 grievances, out of which 158,342 has been reviewed, of which 31,331 are approved while NRA did not agree to rest of 127,011. NRA/MoFALD to share the breakdown in terms of the type of grievances along with decisions subsequently taken. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Substantial  Substantial  Substantial Macroeconomic  Low  Low  Low Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Substantial  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  Substantial  Substantial  Substantial Fiduciary  High  High  High Environment and Social  Substantial  Substantial  Substantial Stakeholders  Substantial  Substantial  Substantial Other  --  --  -- Overall  Substantial  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Households with resilient core housing reconstructed under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 332.00 55,000.00 Date 31-Jul-2015 -- 05-May-2017 31-Jul-2020 PHINDPDOTBL  Out of which women headed households (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 14,300.00 6/1/2017 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) PHINDPDOTBL  Citizens made aware of earthquake resilient reconstruction (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55,000.00 55,000.00 55,000.00 Date 31-Jul-2015 22-Sep-2016 05-May-2017 31-Jul-2020 PHINDPDOTBL  Government officials trained on Disaster Risk Management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 25.00 250.00 Date 31-Jul-2015 30-Jul-2015 05-May-2017 31-Jul-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 159,736.00 188,294.00 236,500.00 Date 31-Jul-2015 22-Sep-2016 05-May-2017 31-Jul-2020 6/1/2017 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) PHINDIRITBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 PHINDIRITBL  Intended beneficiaries aware of project info. and project investments (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Jul-2015 30-Jul-2015 05-May-2017 31-Jul-2020 PHINDIRITBL  Intended beneficiaries - male (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 94,147.00 118,250.00 PHINDIRITBL  Intended beneficiaries - female (number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 94,147.00 118,250.00 6/1/2017 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) PHINDIRITBL  Intended beneficiaries aware of project info. and project investments –male (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 79,862.00 94,197.00 118,250.00 PHINDIRITBL  Intended beneficiaries aware of project info. and project investments - female (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 79,862.00 94,197.00 118,250.00 PHINDIRITBL  Grievances registered related to delivery of project benefits addressed (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 95.00 95.00 Date 31-Jul-2015 30-Jul-2015 05-May-2017 31-Jul-2020 PHINDIRITBL  Grievances related to delivery of project benefits that are addressed-(number) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 48,286.00 2,145.00 6/1/2017 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) PHINDIRITBL  Improved houses reconstructed under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 332.00 55,000.00 Date 31-Jul-2015 30-Jul-2015 05-May-2017 31-Jul-2020 PHINDIRITBL  Artisans trained in multi-hazard resistant construction (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 8,800.00 60,000.00 Date 31-Jul-2015 30-Jul-2015 05-May-2017 31-Jul-2020 PHINDIRITBL  Technical studies on disaster risk management completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Jul-2015 30-Jul-2015 30-Jul-2015 31-Jul-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P155969 IDA-57060 Effective XDR 143.90 143.90 0.00 59.99 83.91 42% Key Dates (by loan) 6/1/2017 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Earthquake Housing Reconstruction Project (P155969) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155969 IDA-57060 Effective 29-Jun-2015 14-Aug-2015 28-Jan-2016 31-Jul-2020 31-Jul-2020 Cumulative Disbursements Restructuring History Level 2 Approved on 24-Mar-2016 Related Project(s) P161780-Nepal: AF Earthquake Housing Reconstruction Project ,P161889-Earthquake Housing Reconstruction AF ,P163178-AF Earthquake Housing Reconstruction ,P163593-NP: Additional Financing Earthquake Housing Reconstruction 6/1/2017 Page 8 of 8 Public Disclosure Copy