The World Bank Early Years Nutrition and Child Development Project (P166211) REPORT NO.: RES42215 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE EARLY YEARS NUTRITION AND CHILD DEVELOPMENT PROJECT APPROVED ON FEBRUARY 21, 2019 TO THE REPUBLIC OF BENIN August 7, 2020 HEALTH, NUTRITION AND POPULATION GLOBAL PRACTICE WESTERN AND CENTRAL AFRICA REGION Regional Vice President: Ousmane Diagana Country Director: Coralie Gevers Regional Director: Dena Ringold Practice Manager: Gaston Sorgho Task Team Leaders: Menno Mulder-Sibanda, Yacinthe Gbaye The World Bank Early Years Nutrition and Child Development Project (P166211) ABBREVIATIONS AND ACRONYMS BEYNCDP Benin Early Years Nutrition and Child Development Project CERC Contingent Emergency Response Component COVID-19 Coronavirus Disease HGSF Home-grown School Feeding ISR Implementation Status and Results Report PDO Project Development Objective SP-CAN Permanent Secretary of the Food and Nutrition Council (Secrétaire Permanent du Conseil de l’Alimentation et de la Nutrition) WHO World Health Organization The World Bank Early Years Nutrition and Child Development Project (P166211) BASIC DATA Product Information Project ID Financing Instrument P166211 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 21-Feb-2019 31-May-2024 Organizations Borrower Responsible Agency Permanent Secretariat of the national Food and Nutrition Republic of Benin Council (SP CAN) Project Development Objective (PDO) Original PDO S-PDO is to reduce stunting and improve ECD outcomes in children under five years of age in targeted communes The PDO (SOP-1) is to improve the delivery of early nutrition and childhood development interventions and services in targeted areas of benefiting Communes in the Recipient's territory. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D4250 21-Feb-2019 25-Mar-2019 16-Jul-2019 31-May-2024 50.00 22.23 27.37 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Early Years Nutrition and Child Development Project (P166211) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Benin Early Years Nutrition and Child Development Project (BEYNCDP) was approved on February 21, 2019 and declared effective in a timely manner on July 16, 2019. The project has four components including an initially dormant Contingency Emergency Response Component (CERC) that has been activated in response to a national emergency. Project implementation, in line with the work and procurement plans agreed upon with the World Bank, has progressed smoothly. In the updated Implementation Status and Results Report (ISR), the project is rated satisfactory on progress towards the Project Development Objective (PDO) and moderately satisfactory on overall implementation progress. The main concern relates to a delay in satisfying three out of four dated covenants. Efforts are underway to have the project comply with all four dated covenants. The disbursement rate is a healthy 45 percent as of August 5, 2020. The project is implemented by the Permanent Secretary of the Food and Nutrition Council (Secrétaire Permanent du Conseil de l’Alimentation et de la Nutrition, SP-CAN) which reports to the President’s Office. 2. On April 24, 2020, on request from the Government, the CERC was activated with US$10 million of uncommitted resources from the project to mobilize resources for the emergency response to the global coronavirus disease (COVID-19) pandemic. The COVID-19, caused by the 2019 novel coronavirus (SARS-CoV-2) has been spreading rapidly across the world since December 2019 such that on March 11, 2020, the World Health Organization (WHO) declared a global pandemic. In Benin, the first case of COVID-19 was reported on March 16, 2020. This number has grown to 1,936 as of August 6, 2020 and 38 persons have died. The Government adopted an integrated plan early March 2020. The World Bank and other development partners have assisted with the development of the first draft of Benin’s emergency plan through the setup of working groups. 3. The CERC activities are complementary to those supported by Regional Disease Surveillance Systems Enhancement Program (REDISSE; P161163) and the Benin COVID-19 Preparedness and Response Project (P173839; US$10.4 million), and consisted primarily of minor rehabilitation works of COVID-19 laboratories and quarantine sites; procurement of laboratory supplies, medicines, and emergency equipment and material; support 24-hour voluntary emergency, rapid intervention, and call center teams; and procurement of locally produced face masks. 4. The current restructuring is meant to regularize the CERC activation by: (i) adding the emergency response to the PDO; (ii) making a change in the costing plan by allocation; (iii) completing a reallocation of proceeds between categories; (iv) undertaking minor adjustments in the results framework to reflect the effects of the reallocation as well as the effects of the pandemic on implementation; (v) modifying one of the dated covenants in response to the above changes; and (vi) revising the risk rating in line with the most recent guidelines. II. DESCRIPTION OF PROPOSED CHANGES 5. Following the activation of the CERC, the restructuring recommends a reformulation of the PDO to reflect the sizeable change of interventions. The reformulated PDO is to improve the delivery of early child nutrition and development interventions and support emergency services in response to the COVID-19 pandemic in targeted Communes in the Recipient's territory. 6. The results framework underwent the following modifications: (i) the end of project target was revised downward for one PDO indicator and eight intermediate outcome indicators to reflect the change in the financing plan as well as the The World Bank Early Years Nutrition and Child Development Project (P166211) effects of the COVID-19 pandemic on implementation; (ii) one PDO indicator, which does not measure any aspect of the PDO, was moved to the intermediate level; and (iii) one new PDO indicator is added to reflect the emergency response in the new PDO, together with a new intermediate outcome indicator. 7. The mobilization of US$10 million of uncommitted resources for the emergency response changes the project’s financing plan for the other components. This was illustrated in the CERC activation notification letter to the Government indicating a preliminary reallocation of proceeds from categories 1-3 to category 4 dedicated to the CERC. Since then, management has confirmed that replenishment is not feasible in the short term. As a result of a careful analysis of project costs in relation to project outcomes, the following changes in the financing plan are recommended: Amount in US$ (million) Component Original Revised Change 1 Management and coordination of interventions for the early years 10.8 9.8 -1.0 2 Community-based interventions for the early years 29.8 27.8 -2.0 3 Integrated primary school feeding and nutrition 9.4 2.4 -7.0 4 CERC 0.0 10.0 +10.0 TOTAL 50.0 50.0 8. The reallocation implies that the project will: (i) focus on activities that contribute most directly to the achievement of the PDO; (ii) maintains end-of-project targets of PDO indicators as close as possible to the original targets; and (iii) scale down Component 3 and turn it into a sizeable pilot experience. Accordingly, Component 2 of the project will support the expansion as well as quality improvements of community-based interventions in the 40 target communes, which are already supported by the project, for the first three years before extending to at least four additional communes (instead of eight as was initially foreseen). In the same vein, Component 3 will support two-three communes in developing a home-grown school feeding (HGSF) program for 25 primary schools instead of 125 in 10- 12 communes. 9. The current restructuring provides an opportunity to reallocate SDR 614,000 of unused resources from category 5 in addition to the reallocation caused by the CERC activation. As a result, the allocation by categories has changed as follows: The World Bank Early Years Nutrition and Child Development Project (P166211) Amount in SDR (million) Category Original Revised Change 1 Works, goods, non-consulting services, consulting services, training and 11.27 10.44 -0.83 operating costs for the project 2 NGO financing for communal subprojects under Part 2(a) of the project 17.27 16.55 -0.72 3 Service provider payments under Part 3 of the project 6.76 1.73 -5.03 4 Emergency expenditures under Part 4 of the project 0.00 7.19 +7.19 5 Refund of preparation advance 0.70 0.09 -0.61 TOTAL 36.00 36.00 10. The dated covenant under Schedule 2.I.A.4 of the Financing Agreement stipulating that “no later than four (4) months after the effective date or such later date as the Association may agree, select and hire within the SP-CAN and with terms of reference and qualifications satisfactory to the Association: (i) a Project Manager in charge of overseeing regional teams; (ii) a Technical Officer in charge of technical support on early child nutrition and development for the Project; (iii) an Accountant; (iv) a Communications Specialist; and (v) a Project Officer to support Part 3 of the Project” has not yet been complied with. Based on the new financing plan, a Project Officer to support Part 3 of the project is no longer justified. Hence, the revised dated covenant will drop this position, and change the Project Manager in charge of overseeing regional teams to Project Manager. 11. Finally, the risk ratings have been modified in line with the new guidelines for the risk rating. The main risk is regarding the institutional capacity for implementation and sustainability which remains unchanged at substantial. The implementing agency is short of professional staff and needs enhanced organizational development. The project requires the hiring of additional project staff to follow through on work plans and project activities. The recent change of the Permanent Secretary (PS) without a proper handover has left created confusion while slowing down implementation and recruitment. The immediate risks for implementation capacity are not yet contained and may affect the long term sustainability of the approach which for now is not yet at risk thanks to the long term approach that has been adopted for the sector. III. SUMMARY OF CHANGES Changed Not Changed Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Legal Covenants ✔ Implementing Agency ✔ The World Bank Early Years Nutrition and Child Development Project (P166211) DDO Status ✔ PBCs ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO S-PDO is to reduce stunting and improve ECD outcomes in children under five years of age in targeted communes The PDO (SOP-1) is to improve the delivery of early nutrition and childhood development interventions and services in targeted areas of benefiting Communes in the Recipient's territory. Proposed New PDO The PDO (SOP-1) is to improve the delivery of early child nutrition and development interventions and support emergency services in response to the COVID-19 pandemic in targeted Communes in the Recipient's territory. The World Bank Early Years Nutrition and Child Development Project (P166211) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Management and Coordination Management and Coordination of Interventions for the Early 10.80 Revised of Interventions for the Early 9.80 Years Years Community-based Community-based Interventions 29.80 Revised Interventions for the Early 27.80 for the Early Years Years Integrated Primary School Integrated Primary School 9.40 Revised 2.40 Feeding and Nutrition Feeding and Nutrition Contingency Emergency Contingent Emergency 0.00 Revised 10.00 Response Component Response Component TOTAL 50.00 50.00 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-D4250-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Wrks, Gds, Ncs, Cs, Tr, OC 11,270,000.00 1,211,541.17 10,440,000.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: NGO Financing sub proj prt 2a 17,270,000.00 1,532,467.17 16,550,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Servc Prov payments prt 3 6,760,000.00 0.00 1,730,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Emergency Exp under Part 4 0.00 0.00 7,190,000.00 100.00 100.00 The World Bank Early Years Nutrition and Child Development Project (P166211) iLap Category Sequence No: 5 Current Expenditure Category: Refund of Preparation 700,000.00 85,542.24 90,000.00 Total 36,000,000.00 2,829,550.58 36,000,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2019 421,550.00 0.00 2020 4,893,550.00 18,000,000.00 2021 8,532,250.00 8,960,000.00 2022 12,541,650.00 9,260,000.00 2023 11,849,350.00 8,060,000.00 2024 9,735,200.00 3,720,000.00 2025 2,026,450.00 2,000,000.00 2026 0.00 0.00 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate  Low Macroeconomic  Moderate  Moderate Sector Strategies and Policies  Substantial  Low Technical Design of Project or Program  Substantial  Low Institutional Capacity for Implementation and  Substantial  Substantial Sustainability Fiduciary  Moderate  Moderate Environment and Social  Low  Low Stakeholders  Low  Low The World Bank Early Years Nutrition and Child Development Project (P166211) Other Overall  Substantial  Moderate OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Schedule 2, Section I.A.1: The Recipient shall establish no later than four (4) months after the Effective Date and maintain throughout the period of Project implementation, the Project Steering Committee to ensure the proper high-level oversight of the Project IDA-D4250 Expected soon No Change and coordination among the Recipient’s ministries and agencies, with terms of reference, mandate, composition and resources satisfactory to the Association as further described in the Project Implementation Manual. Schedule 2, Section 1.A.3: The Recipient shall no later than three (3) months after the Effective Date or such later date as the Association may agree, (i) nominate a IDA-D4250 representative in charge of procurement within the SP- Expected soon No Change CAN, satisfactory to the Association; and, (ii) conduct one training for selected NGOs to reinforce their procurement capacity. Schedule 2, Section 1.A.4: The Recipient shall no later than four (4) months after the Effective Date or such later date as the Association may agree, select and hire within the SP-CAN and with terms of reference and qualifications satisfactory to the Association: (i) a IDA-D4250 Not complied with Revised Project manager in charge of overseeingregional teams; (ii) a technical officer in charge of technical support on early child nutrition and development for the Project; (iii) an accountant; (iv) a communications specialist; and (v) a Project officer to support Part 3 of the Project. The Recipient shall hire within the SP-CAN and with terms of reference and qualifications satisfactory to the Proposed Association: (i) a project manager; (ii) a technical officer NC on early child nutrition and development; (iii) an accountant; and (iv) a communications specialist. The World Bank Early Years Nutrition and Child Development Project (P166211) Schedule 2, Section 1.A.5: The Recipient shall no later than six (6) months after the Effective Date or such later date as the Association may agree, (i) conclude an agreement with the Recipient’s Inspection Générale des IDA-D4250 Complied with No Change Finances to include the Project in its annual work program and carry out semi-annual internal auditing; and (ii) recruit an external auditor acceptable to the . Association. The World Bank Early Years Nutrition and Child Development Project (P166211) . Results framework COUNTRY: Benin Early Years Nutrition and Child Development Project Project Development Objectives(s) S-PDO is to reduce stunting and improve ECD outcomes in children under five years of age in targeted communes The PDO (SOP-1) is to improve the delivery of early nutrition and childhood development interventions and services in targeted areas of benefiting Communes in the Recipient's territory. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target PDO (SOP-1): Improve the delivery of early nutrition and childhood development interventions Children 0-24 months who benefit from a package of nutrition 0.00 30.00 and child stimulation services (Percentage) Rationale: Action: This indicator has been Revised Target date in line with project closing date. Household visits by GrACE members in the past one month 0.00 150,000.00 (Number) Rationale: The target is revised to reflect the reallocation of funds as well as the effects of the COVID-19 pandemic on Action: This indicator has been Revised implementation. Also, target date is put in line with project closing date. Caregivers with children 0-59 months who have received education on parenting practices that promote ECD within the 0.00 70.00 previous three months (Percentage) The World Bank Early Years Nutrition and Child Development Project (P166211) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Action: This indicator has been Revised Target date in line with project closing date. Of which % male (Percentage) 0.00 40.00 Rationale: Action: This indicator has been Revised Target date in line with project closing date. Women with children 0-59 months trained and practicing household gardens, small animal raising, or transformation of 9,000.00 20,000.00 diverse foods rich in nutrition within the last 6 months (Number) Rationale: Action: This indicator has been Revised Target date in line with project closing date. School-going children who received at least one meal per day 0.00 15,000.00 within the previous three months (Number) Rationale: The last indicator on school-going children receiving at least one meal is not reflective of the PDO and is therefore moved to Action: This indicator has been Marked for Deletion the intermediate level. COVID-19 isolation sites made functional (Number) 0.00 5.00 Rationale: Action: This indicator is New This indicator reflects the support to the COVID-19 emergency action plan. PDO Table SPACE The World Bank Early Years Nutrition and Child Development Project (P166211) Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Management and Coordination of Early Years Interventions Validation of manuel of harmonized package of services (Yes/No) No Yes Rationale: Action: This indicator has been Revised Target date in line with project closing date. Communes that have conducted joint missions to support implementation at community level in the last 6 months 20.00 80.00 (Percentage) Rationale: Action: This indicator has been Revised Target date in line with project closing date. Communes that have put in place a feedback mechanism for 0.00 45.00 citizen beneficiaries (Number) Rationale: The target is revised to reflect the effects of the reallocation of funds towards the emergency response. Also target date is Action: This indicator has been Revised put in line with project closing date. People who have received essential health, nutrition, and 0.00 1,000,000.00 population (HNP) services (CRI, Number) Rationale: The target is revised to reflect the reallocation of funds towards the emergency response as well as the effects of the Action: This indicator has been Revised COVID-19 pandemic on implementation in the sense that community interventions have slowed down considerably. Also target date is put in line with project closing date. The World Bank Early Years Nutrition and Child Development Project (P166211) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Number of women and children who have received basic 0.00 1,000,000.00 nutrition services (CRI, Number) Rationale: The target is revised to reflect the reallocation of funds towards the emergency response as well as the effects of the Action: This indicator has been Revised COVID-19 pandemic on implementation in the sense that community interventions have slowed down considerably. Also target date is put in line with project closing date. Regional and national reviews held to evaluate progress 0.00 20.00 (Number) Rationale: The target is revised to reflect the reallocation of funds towards the emergency response as well as the immediate impact Action: This indicator has been Revised of the COVID-19 pandemic which advises against large gatherings. Also target date is put in line with project closing date. Community-based Interventions for the Early Years Children aged 0-24 months receiving monthly growth monitoring 75.00 80.00 and promotion (Percentage) Rationale: Action: This indicator has been Revised Target date in line with project closing date. Children followed by GrACE in targeted communes with a 0.00 85.00 verified certification of birth (Percentage) Rationale: Action: This indicator has been Revised Target date in line with project closing date. The World Bank Early Years Nutrition and Child Development Project (P166211) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Communes that have an advanced strategy to provide community-based prenatal and post-natal services, according to 0.00 40.00 a checklist (Number) Rationale: Action: This indicator has been Revised Target date in line with project closing date. Functional community spaces for child learning and play 0.00 185.00 (Number) Rationale: The target is revised to reflect the reallocation of funds towards the emergency response and a delayed start of activities as Action: This indicator has been Revised a result of the COVID-19 pandemic. Also target date is put in line with project closing date. GrACE members trained to deliver services (Number) 20,000.00 30,000.00 Rationale: Action: This indicator has been Revised Target date in line with project closing date. Households with children 0-5 years of age with a hand washing 15,000.00 70,000.00 station with soap and water (Number) Rationale: As a result of the COVID-19 emergency response, there was a big push to install hand washing stations, such that the end of Action: This indicator has been Revised project target can be increased. Also target date is put in line with project closing date. Children 36-59 months with adult member engaged in at least 4 28.00 70.00 learning activities in last 3 days (Percentage) Rationale: Action: This indicator has been Revised Target date in line with project closing date. The World Bank Early Years Nutrition and Child Development Project (P166211) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Community leaders who participated in community radio 0.00 800.00 programs on new themes and approaches to ECD (Number) Rationale: The target is revised to reflect the reallocation of funds towards the emergency response as well as a delayed start of this Action: This indicator has been Revised activity due to the COVID-19 pandemic. Also target date is put in line with project closing date. Integrated Primary School Feeding and Nutrition School-going children who received at least one meal per day 0.00 3,000.00 within the previous three months (Number) Rationale: Action: This indicator is New This indicator initially was under the PDO Indicators but a second thought fits better at the Intermediate level. Local producers engaged in assocations for the provision of food 0.00 20.00 to school (Number) Rationale: The target is revised to reflect the reallocation of funds towards the emergency response. Also target date is put in line with Action: This indicator has been Revised project closing date. Primary school-age children dewormed (Number) 0.00 10,000.00 Rationale: The target is revised to reflect the reallocation of funds towards the emergency response. Also target date is put in line with Action: This indicator has been Revised project closing date. Contingent Emergency Response Component (Action: This Component is New) The World Bank Early Years Nutrition and Child Development Project (P166211) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline End Target Locally manufactured face masks procured (Number) 0.00 2,564,595.00 Rationale: Action: This indicator is New Following the CERC activation, this indicator will monitor one of the CERC supported activities. IO Table SPACE The World Bank Early Years Nutrition and Child Development Project (P166211)