Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD4130 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF SDR 11.40 MILLION (US$16.00 MILLION EQUIVALENT) TO THE CENTRAL AFRICAN REPUBLIC FOR THE COVID-19 RESPONSE UNDER THE SERVICE DELIVERY AND SUPPORT TO COMMUNITIES AFFECTED BY DISPLACEMENT PROJECT November 19, 2020 Social Protection and Jobs Global Practice Western and Central Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective October 31, 2020 Currency Unit = CFA Franc BEAC (XAF) XAF 562 = US$1 SDR 0.70839571 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Ousmane Diagana Country Director: Abdoulaye Seck Regional Director: Dena Ringold Practice Manager: Iffath Anwar Sharif Task Team Leader: Philippe Auffret ABBREVIATIONS AND ACRONYMS AF Additional Financing APPR Political Accord for Peace and Reconciliation (Accord Politique pour la Paix et la Réconciliation) CCRT Catastrophe Containment and Relief Trust CFAF Central African CFA Franc (Franc CFA d’Afrique Centrale) COVID-19 Coronavirus Disease CPF Country Partnership Framework CPIA Country Policy and Institutional Assessment DA Designated Account ESF Environmental and Social Framework ESMF Environmental and Social Management Framework FY Fiscal Year GBV Gender-based Violence GDP Gross Domestic Product GRM Grievance Redress Mechanism HDI Human Development Index IDA International Development Association IDP Internally Displaced Person IFR Interim Financial Report IMF International Monetary Fund IPF Investment project financing ISR Implementation Status and Results Report M&E Monitoring and Evaluation MAHRN Ministry of Humanitarian Action and National Reconciliation (Ministère de l’Action Humanitaire et de la Réconciliation Nationale) MINUSCA United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic NGO Nongovernmental Organization OCHA United Nations Office for the Coordination of Humanitarian Affairs OPCS VP World Bank Operations Policy and Country Services Vice President PACAD Service Delivery and Support to Communities Affected by Displacement Project PDO Project Development Objective RPF Resettlement Policy Framework SDR Special Drawing Rights SEA Sexual Exploitation and Abuse SH Sexual Harassment SoE Statements of Expenditures SORT Systematic Operations Risk-Rating Tool STEP Systematic Tracking of Exchanges in Procurement TAA Turn Around Allocation UN United Nations UNICEF United Nations Children’s Fund UNOPS United Nations Office for Project Services WB World Bank WHO World Health Organization Central African Republic For COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project Additional Financing TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING AND RESTRUCTURING ................ 7 II. DESCRIPTION OF THE ADDITIONAL FINANCING ................................................................... 21 III. KEY RISKS....................................................................................................................... 27 IV. APPRAISAL SUMMARY..................................................................................................... 28 V. WORLD BANK GRIEVANCE REDRESS .................................................................................. 33 VI. SUMMARY TABLE OF CHANGES ........................................................................................ 34 VII. DETAILED CHANGE(S) ...................................................................................................... 34 VIII. RESULTS FRAMEWORK AND MONITORING ......................................................................... 37 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) BASIC INFORMATION – PARENT (Service Delivery and Support to Communities Affected by Displacement Project - P161591) Country Product Line Team Leader(s) Central African Republic IBRD/IDA Philippe Auffret Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P161591 Investment Project HAWS3 (9737) AWCC1 (6544) Social Protection & Jobs Financing Implementing Agency: Ministry of Humanitarian Action and National Reconciliation ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Original Environmental Approval Date Closing Date Guarantee Current EA Category Assessment Category Expiration Date 16-May-2017 30-Jun-2021 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster Page 1 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on, Enhanced Implementation Support (HEIS) Development Objective(s) The PDO is to increase access to basic services, infrastructure and safety nets for communities affected by forced displacement. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 05-Mar-2018 02-Oct-2018 14-Dec-2018 27-Jun-2019 12-Feb-2020 13-Oct-2020 Progress towards achievement of S S MS MS MS MS PDO Overall Implementation MS MS MS MS MS MS Progress (IP) Overall Safeguards S S S S S S Rating Overall Risk H H H H S M Financial Management S S S S MS S Project Management S S MS MS MS MS Procurement S S S S S S Monitoring and Evaluation S S MS MS MS MS BASIC INFORMATION – ADDITIONAL FINANCING (AF for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project - P174547) ADDFIN_TABLE Project ID Project Name Additional Financing Type Urgent Need or Capacity Page 2 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Constraints P174547 AF for COVID-19 Response Scale Up Yes under the Service Delivery and Support to Communities Affected by Displacement Project Financing instrument Product line Approval Date Investment Project IBRD/IDA 04-Dec-2020 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 31-Oct-2023 No Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [✓] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on, Enhanced Implementation Support (HEIS) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 28.00 27.68 1.40 95 % Grants % Page 3 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) PROJECT FINANCING DATA – ADDITIONAL FINANCING (AF for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project - P174547) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 28.00 16.00 44.00 Total Financing 28.00 16.00 44.00 of which IBRD/IDA 28.00 16.00 44.00 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 16.00 IDA Grant 16.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Central African Republic 0.00 16.00 0.00 16.00 National PBA 0.00 16.00 0.00 16.00 Total 0.00 16.00 0.00 16.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Page 4 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Does the project require any other Policy waiver(s)? [ ✔ ] Yes [ ] No Explanation 1. Policy waiver to waive the ESF to respond in a timely fashion to the COVID-19 emergency; 2. Policy waiver to defer the preparation of safeguard instruments due to delays in in-country consultations related to COVID-19 situation. Has the waiver(s) been endorsed or approved by Bank Management? Approved by Management [✔] Endorsed by Management for Board Approval [ ] No [ ] Explanation 1. OPCS memo dated July 31, 2020 to waive the Environmental and Social Framework; 2. RVP memo dated November 2, 2020 approving safeguards deferral. INSTITUTIONAL DATA Practice Area (Lead) Social Protection & Jobs Contributing Practice Areas Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Philippe Auffret Social Protection HAES2 Responsible) Procurement Specialist (ADM Mouhamadou Kabir Ndoye Procurement EAWRU Responsible) Financial Management Bella Diallo Financial Management EAWG2 Specialist (ADM Responsible) Financial Management Faly Diallo Finance Officer WFACS Specialist Page 5 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Yves Bertrand Koudjou Social Specialist (ADM Social Safeguards SAWS1 Tatang Responsible) Albert Francis Atangana Ze Environmental Specialist Environmental Safeguards SAWE4 Djeina Issa Kalidi Team Member Social Development SAWS1 Emma Clarisse Bouba- Team Member Team Support AWMCF Koumatou Leppa Ioannis Arzinos Team Member Social Protection SSIGL Lydie Anne Billey Team Member Team Support HAWS2 Matuna Mushfeqa Mostafa Team Member Social Protection HMNSP Saba Nabeel M Gheshan Counsel Legal LEGAM Siobhan McInerney- Counsel Legal LEGEN Lankford Extended Team Name Title Organization Location Page 6 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING AND RESTRUCTURING A. Introduction 1. This projects paper seeks the approval of the Board of Executive Directors to provide an Additional Financing (AF) in the form of an International Development Association (IDA) grant in the amount of SDR 11.4 million (US$16.0 million equivalent) to the Service Delivery and Support to Communities Affected by Displacement (PACAD) Project (P161591) in the Central African Republic. 2. The proposed AF would scale up and restructure the parent Project to support the Government’s effort to mitigate the impacts of crises, such as Coronavirus disease (COVID-19) and ongoing flooding, in affected communities, and promote stability, while building the Government’s capacity to manage safety net programs. The AF would finance the costs associated with expanding the Project’s cash transfers program and accompanying measures. Specifically, the grant would (i) scale-up cash transfers to include communities affected by crises, such as COVID-19 and ongoing flooding, as well as Internally Displaced Persons (IDPs) (Component 2) (IDA grant: US$12.0 million); and (ii) scale-up project coordination, monitoring, and evaluation (M&E) (Component 3) (IDA grant: US$4.0 million). However, the proposed AF would not allocate additional resources to increase access to basic services and infrastructure (Component 1) that was part of the PACAD. The proposed AF and restructuring of the parent Project include changes to the (i) Project Development Objective (PDO); (ii) results framework; (iii) disbursement arrangements; (iv) project components and cost; and (v) implementation schedule, including closing date. The AF would use the same implementation arrangements as PACAD, with the Ministry of Humanitarian Action and National Reconciliation (Ministère de l’Action Humanitaire et de la Réconciliation Nationale, MAHRN) entering into a service agreement with United Nations Office for Project Services (UNOPS) to support implementation of all Project activities. 3. The proposed AF is consistent with World Bank Policy for Investment Project Financing (IPF) which states that the World Bank may provide AF for investment lending for scaling up the development effectiveness of a project that is performing well. All the necessary requirements to process an AF have been met: (i) implementation progress and progress toward achievement of PDO have been consistently rated Moderately Satisfactory over the last 12 months; (ii) there is substantive compliance with legal covenants (three of the four legal covenants have been complied with and the last covenant is expected to be met by the end of the year); and (iii) there are no outstanding audit reports. 4. The proposed AF is aligned with the World Bank Country Partnership Framework (CPF) for FY21– 251 (Report No. 150618). The CPF includes the provision of AF to the PACAD Project to provide cash transfers to vulnerable households affected by COVID-19. Specifically the AF would support the following strategic objectives: 1.1 – Support Stabilization Efforts for Improved Resilience, which states the World Bank will build on existing operations to scale up support to stabilization; 1.4 – Put in Place Sustainable 1 CPF for the Central African Republic FY21–FY25, World Bank (August 4, 2020), Report No.150618-CF. Page 7 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Safety Nets; and 2.1 – Improve Core Government Functions and Institutions for Effective Service Delivery. The Board of Directors also approved the Turn Around Allocation (TAA) on September 1, 2020. The proposed AF would use the present window of opportunity to strengthen social safety nets through cash transfers to vulnerable communities affected by crises, including forced displacement, COVID-19, and flooding. The proposed AF also responds to the Central African Republic’s Drivers of Fragility, as identified in the 2018 Risk and Resilience Assessment. It would help strengthen the Government’s ability to implement cash transfers financed with its own resources and implement future safety net projects. 5. In preparation for the proposed AF, on July 31, 2020, the Operations Policy and Country Services Vice President approved a memo to waive the Environmental and Social Framework (ESF), the Environmental and Social Directive for IPF, and the Directive on Addressing Risks and Impacts on Disadvantaged or Vulnerable Individuals or Groups. Therefore, the existing safeguard instruments, documents, and systems would apply to the activities financed under the proposed AF. On November 2, 2020, the Regional Vice President for Western and Central Africa approved to defer preparation of safeguards instruments under Paragraph 12 of the IPF Policy. 6. The proposed AF is being processed under condensed procedures. The proposed AF is being processed in accordance with the condensed procedures outlined in Paragraph 12 Section III of the World Bank IPF Policy, and Paragraph 56 of Section III of the IPF Directive: Exceptional Arrangements in Situations of Urgent Need of Assistance or Capacity Constraints. On August 12, 2020, the Country Director approved a memo to process the AF as an emergency operation using the same condensed procedures for project preparation. The Central African Republic is (i) in urgent need of assistance because of the immediate economic and social impacts of the COVID-19 pandemic and the ongoing floods on an already impoverished population; and (ii) experiencing severe capacity constraints to develop a safety net due to limited implementation ability at a time of contracting fiscal revenues. Finally, the Central African Republic harmonized average Country Policy and Institutional Assessment (CPIA) for 2019 is 2.6, well below the cut- off point of 3.2 for fragile states and the IDA average for Sub-Saharan Africa of 3.1. B. Country Context 7. The Central African Republic is a highly fragile economy with a history of recurrent conflict. The drivers of fragility include, inter-alia, (i) a lack of social cohesion at all levels of society; (ii) social and regional disparities between Bangui and the periphery and between the East and the rest of the country that have fostered a perception of inequality, exclusion, and contributed to the emergence of armed groups; (iii) cycle of violence and trauma and a distressed population; (iv) concentration of the political power in the hands of a very small elite; and (v) mismanagement of scarce natural resources. The PACAD Project addresses the first two drivers of fragility, social cohesion and regional disparities as identified in the 2018 Risk and Resilience Assessment, and is expected to reduce grievances stemming from social and regional disparities and support the reintegration of IDPs, which would contribute to reducing the lasting state of insecurity. 8. The most recent conflict took place in 2013 between multiple armed groups and had a devastating impact on economic activity and poverty. At the peak of the crisis, the death toll surpassed 3,000, roughly Page 8 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) one-quarter of the population was internally displaced or had fled to neighboring countries,2 and 2.6 million people needed humanitarian assistance. Half of the population was in a situation of food insecurity. Real gross domestic product (GDP) contracted by 36.7 percent in 2013, tax revenues fell by 47.5 percent, and state institutions and basic services collapsed. The poverty rate surged from 64 percent in 2012 to 75 percent in 2013, before falling back to an estimated 71 percent in 20193—still among the highest poverty rates in Sub-Saharan Africa. An estimated 3.4 million people are living in extreme poverty in the country. Increases in poverty have varied by region and poverty rates range from 45 percent in Bangui, which accounts for 11 percent of the country’s poor, to 78 percent in the country’s northwest region (Figure 1). The northwest also has the highest concentration of IDPs. Insecurity and forced displacement have severely aggravated poverty, and accelerating urbanization has strained already-limited host community infrastructure and services. Many of the displaced do not return to their communities of origin for fear of retaliation and lack of economic opportunities. Figure 1. Poverty in the Central African Republic Source: CPF for the Central African Republic FY21–FY25, World Bank (August 4, 2020), Report No.150618-CF. 9. The country is trapped in recurrent cycles of conflict and violence, making development progress inherently slow. The 2011 World Development Report concluded that the path to long-lasting stability following a violent conflict is rarely linear.4 Flare-ups of violence are inevitable, and exogenous shocks— the COVID-19 pandemic and natural disasters like the current floods—can erase hard-fought gains. Nevertheless, the Central African Republic has made tangible development progress in recent years. The country’s CPIA improved from 2.4 in 2016 to 2.6 in 2019, reflecting the steady implementation of structural reforms that strengthened policies and institutions. The International Monetary Fund (IMF) successfully concluded an Extended Credit Facility Program in 2019, started a new program the same year, and disbursed on a Rapid Credit Facility in April 2020 (25 percent of quota). 2 The entire population in two-thirds of the Central African Republic's territory has been displaced at least once. 3 Measured at the international poverty line of US$1.90 per day. 4 World Bank. 2011. World Development Report, Conflict, Security, and Development . Washington, DC: World Bank. Page 9 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) 10. Progress has been driven by the country’s budding democratic institutions, strong engagement of the international community in a climate of growing mutual trust, and critical steps toward stability. The Central African Republic’s turnaround opportunity was created by the Bangui Forum in 2015 and democratic elections in 2016. Under the Government of President Touadéra, democratic institutions have begun to take hold. Development partners have dramatically scaled-up their support.5 The Political Accord for Peace and Reconciliation - Accord Politique pour la Paix et la Reconciliation (APPR), signed in 2019 by the Government, has created a framework for dialogue with armed groups, resulting in a steady decline in violence and fatalities. Despite multiple violations, the APPR holds, underscoring the shared commitment to a settlement within a formal state context. The upcoming general elections, scheduled for December 2020, are a critical milestone to establish the precedent of a peaceful democratic transition. Local elections in 2022 can establish a legitimate system of local governance. 11. The COVID-19 pandemic is leading to a sharp economic downturn and significant fiscal pressures in the Central African Republic. The country’s economic performance has been sustainable, although sensitive to the security environment, in recent years, with an average growth rate of 4.1 percent since 2015 – the highest five-year growth average since independence. However, as a result of the COVID-19 pandemic, the economy is projected to contract by 1.2 percent in 2020 (3.1 percent contraction in per- capita terms), compared to a pre-COVID projection of 4.4 percent growth. The main drivers of the economic downturn include a sharp fall in the country’s exports (diamond, coffee, cotton, and timber), a decrease in foreign direct investment, and a decline in commodity prices due to the sharp global economic downturn. Furthermore, internally, the Government’s measures to contain the spread of COVID-19, including restrictions of movement within the country, closing schools, banning mass gatherings, and closing the airport are having an added impact on slowing economic activity and increasing unemployment. These restrictive measures to minimize the spread of the virus are adversely impacting trade and economic activities. With tax revenues down and increased COVID-related spending needs, the fiscal deficit is projected to widen to 4.1 percent of GDP in 2020, compared to a surplus of 0.2 percent projected prior to COVID. 12. The Government has adopted measures to minimize the spread of COVID-19. In collaboration with the World Health Organization (WHO), the Government formulated a COVID-19 preparedness and response plan in March 2020. The plan, estimated to cost CFAF 27 billion (roughly US$45 million), aims to address some of the national health system’s main weaknesses. The authorities later complemented the plan with additional activities to strengthen social protection, support the private sector and economic recovery, and enhance justice and security. The Government imposed measures such as social distancing, mandatory use of masks, and community-based surveillance. It also closed night clubs and places of worship, restricted restaurants to take-out service only, banned mass gatherings, closed aerial borders, and closed land borders (the border with Cameroon remained open because it is a critical trade route6). Recently COVID-19 cases are declining and, since July, the measures have progressively been lifted, while 5 The two main development partners are the World Bank (IDA) and the European Union, each with cumulative investments of about US$1 billion since 2016. Other partners include African Development Bank (ADB), IMF, USA, Global Fund and French Development Agency (AFD), each with US$100–US$200 million in cumulative investments. 6 The Central African Republic is at heightened risk given its trade dependence on Cameroon, where the outbreak is widespread. Page 10 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) the Government continues to actively promote social distancing and mask use on radio, television, billboards, and other displays in public areas. The Central African Republic has also benefitted from debt service relief under IMF revamped Catastrophe Containment and Relief Trust (CCRT) and since May 2020, the Government participates in the G20 Debt Service Suspension Initiative for poorest countries. C. Sectoral Context 13. The Central African Republic ranks very poorly in development indexes and health indicators. In 2018, the country ranked 188 out of 189 countries on the United Nations (UN) Human Development Index (HDI).7 Health outcomes are among the lowest in the world, with life expectancy at birth of 52.2 years; infant mortality of 87.6 deaths per 1,000 live births; under-five mortality of 121.5 deaths per 1,000 live births (both far above the averages for Sub-Saharan Africa of 52.7 and 77.5, respectively); and maternal mortality of 882 deaths per 100,000 live births.8 The prevalence of stunting for children under five years of age was 40.8 percent in 2019, and the rate of wasting or acute malnutrition was 6.6 percent. Nearly half the population lacks access to safe drinking water. 14. Women and girls face multiple obstacles to reaching their full potential. Females are subject to discriminatory laws and social norms, domestic violence, and poor access to justice. Their economic opportunities and empowerment are further constrained by low rates of literacy, high rates of fertility (including teen pregnancy), and low participation in the formal economy (only 20 percent of the labor force engage in wage employment), inhibiting financial inclusion and independence. 15. Frequent and destructive climate-related annual floods regularly damage towns and villages and displace large numbers of vulnerable people. The country’s tropical climate, with inclement rains during the rainy season, regularly destroys shelters, displaces people, and obstructs transport routes. The climate also contributes to the elevated incidence of diseases like cholera and malaria. In October and November 2019, heavy rains and subsequent flooding destroyed 10,000 homes, impacting around 57,000 people, mostly around Bangui, and displacing 100,000 people. In 2020, flooding has occurred sporadically since May, further exacerbating displacement in a country marked by IDPs, vulnerability, and poverty. 16. In 2020, the country has been hit by the COVID-19 pandemic that is adversely affecting the population’s welfare. While the reported number of cases is relatively low—4,900 cases and 63 deaths as of November 16, 2020—there is likely significant underreporting. The pandemic continues to spread, threatening a longer economic fallout than initially anticipated. The situation could deteriorate rapidly, as transmission across borders and local expansion remains a high risk, and poverty and food insecurity are expected to increase. 17. The socioeconomic and health impacts of COVID-19 are putting additional strain on an already fragile economy. The restrictive measures adopted to minimize the spread of the virus, including 7 UNDP. Human Development Indices and Indicators: 2018 Statistical Update. New York: United Nations Development Program. 8 World Bank. 2019. World Development Indicators. Washington, DC: World Bank. Page 11 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) restrictions on movements, adversely impacted trade and economic activities. Due to the impact of COVID- 19, the GDP growth forecast for 2020 was revised downward significantly, from year-on-year growth of 4.4 percent to a contraction of 1.2 percent. 18. The concurrent crises will increase poverty and food insecurity. Roughly 92 percent of households in the Central African Republic work in agriculture. They suffer from the security situation, recurrent population displacement, difficulties accessing inputs and agricultural tools, and torrential rains and cassava disease. The COVID-19 lockdown raised input and transport costs and adversely impacted the population (Table 1). Supply-chain disruptions at the border with Cameroon led to an increase in food prices. For example, the cost of a 50kg bag of rice increased from CFAF 20,500 before the COVID-19 pandemic to CFAF 26,917 in July 2020. About 50 percent of the population is estimated to be suffering from acute malnutrition. On June 4, 2020, the World Bank’s Famine Action Mechanism Global Technical Working Group identified the Central African Republic as a “hotspot” country facing a looming food security crisis. The majority of the labor force in urban and peri-urban areas are self-employed in informal jobs, such as street vendors or moto-taxi drivers. As a result, they lack employment-based insurance and face difficulties coping with reduced demand for their services due to the restrictive measures adopted by the Government. Urban transport prices have risen by more than 60 percent since social-distancing measures went into effect. The global pandemic may also reduce critical remittances from abroad. Furthermore, the need for a lockdown to contain the virus's spread initially had detrimental impacts on the distribution of much needed international assistance, according to the International Committee of the Red Cross and the Central African Red Cross. The effects of COVID-19 could push as many as 140,000 more persons into extreme poverty in the Central African Republic. Page 12 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Table 1. COVID-19 and Food Insecurity Data by City Market price of Area Frequency Food the basic food Location Population Total IDPs affected by of COVID-19 Insecurity basket COVID-19 cases (%) (CFAF) Bangui 1er Arrondissement 80,337 8,000 Yes 0.0 2e Arrondissement 46,708 942 Yes 33.3 3e Arrondissement 11,833 0 Yes 17.8 4e Arrondissement 85,320 4,770 Yes 14.0 96,083 5e Arrondissement 135,141 30,811 Yes 50+ cases 6.2 6e Arrondissement 65,391 3,403 Yes 19.4 7e Arrondissement 98,398 33,910 Yes 25.2 8e Arrondissement 99,643 6,056 Yes 39.6 Bimbo 24,361 10,795 Yes 70.9 85,032 Bouar 27,428 16,730 Yes 10–50 cases 45.0 70,348 Bangassou 124,176 90 Yes 10–50 cases 65.0 65,732 Bria 143,690 6,717 Yes 10–50 cases 65.0 100,536 Bambari 44,388 14,922 Yes 10–50 cases 70.0 75,745 Kaga-Bandoro 29,027 88,999 Yes 10–50 cases 50.0 N/A Paoua 56,520 46,583 Yes 10–50 cases 65.0 N/A Bossangoa 18,441 1,085 No 0 cases 55.0 83,100 Sources: World Food Program; United Nations Office for the Coordination of Humanitarian Affairs (OCHA), August 31, 2020. 19. The ongoing multi-dimensional stressors—on an already impoverished and vulnerable population—could destabilize the country and the peace process and jeopardize the upcoming national and local election cycles. The impacts of the global pandemic are expected to worsen an already precarious humanitarian situation, including increasing poverty, food insecurity, and social tension. This could jeopardize the Presidential and General elections scheduled to take place in two rounds between December 2020 and March 21, as well as Local Elections about one year later – both of which constitute a singular opportunity for establishing an accepted tradition of democratic governance. 20. Inherent and systemic state weaknesses have left poor people in the Central African Republic desperate for social assistance. This assistance typically comes only in times of crisis, in the form of humanitarian, short-term assistance to help people survive. As such, financing flows can be unpredictable and volatile, and the majority of safety net spending finances relatively small, uncoordinated, short-term interventions. Furthermore, these programs tend to focus on immediate humanitarian goals, such as food support, while devoting less attention to long-term challenges, such as the reintegration of IDPs or the return of refugees. Page 13 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) D. Project Background 21. The PDO of the parent Project, Service Delivery and Support to Communities Affected by Displacement (PACAD) Project (P161591), is to increase access to basic services, infrastructure, and safety nets for communities affected by forced displacement.9 The PACAD Project (the Project) was approved on May 16, 2017, and financed from an IDA grant (IDA-D1920) in the amount of SDR 20.7 million (US$28.0 million equivalent), with an original closing date of June 30, 2021. The Project includes three components: (i) access to basic services and infrastructure; (ii) safety nets (cash transfers); and (iii) community mobilization, capacity building, technical assistance, and project management. 22. The Project directly contributes to achieving the World Bank’s priorities for the country presented in the Turnaround Eligibility Note for the Central African Republic (September 2016) . In particular, the Project contributes to the country’s stabilization through support to displaced populations. The Project also contributes to the Government’s stabilization objectives described in the Recovery and Peace Consolidation Plan 2017–21 (Plan de Relèvement et Consolidation de la Paix), presented at the Brussels Conference with the support of the World Bank, UN, and European Union. In particular, the objectives of Pillar 1—Support to Peace, Security, and Reconciliation—are to support reconciliation and promote social cohesion and facilitate sustainable solutions in support of the displaced. 23. The implementing agency is the MAHRN, and the service provider is the UNOPS. MAHRN signed a service agreement with UNOPS for implementation support for all Project activities, while the Fiduciary Agent within the Ministry of Public Works has all fiduciary responsibilities related to the Project. A Project Steering Committee provides overall institutional oversight and ensures that project activities align with national plans and guidelines related to development and forced displacement. Component 1—Access to basic services and infrastructure (US$15.0 million equivalent) 24. This component aims to improve access of communities affected by displacement to basic services and infrastructure by financing infrastructure construction and rehabilitation. As of September 2020, three infrastructure projects were completed10 and eight projects were under implementation.11 Furthermore, UNOPS and MAHRN have actively supported local authorities and communities in Bambari, Kaga-Bandoro, Paoua, and Bangassou to develop local development plans. All micro-projects will be finalized by the end of the original project closing date of June 30, 2021. Component 2—Safety nets (US$8.0 million equivalent) 25. This component aims to provide timely and regular cash transfers to selected households. These transfers enable vulnerable households in areas affected by forced displacement to meet their immediate 9 The Population Movement Commission (Commission des Mouvements des Populations) estimates that the number of IDPs in the Central African Republic was 702,348 in February 2020 (approximately 15 percent of the population), including 235,019 at IDP sites and 467,329 in host families. 10 The micro-projects are Bambari city hall park and solar streetlamps in Kaga Bandoro and Paoua. 11 These micro-projects are 3 kilometers (km) of roads in Bambari, an extension of the health center into maternity and pediatric wards, and a bus station in Bangui PK5, 1.9 km of roads in Madou, solar street lighting and Kokoro drainage system; a bridge in Kaga Bandoro; and a youth center in Bangassou. Page 14 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) consumption needs. Each beneficiary household receives eight quarterly cash transfers of CFAF 25,000 (approximately US$50) over two years. This transfer amount is in line with international experience and represents approximately 10–15 percent of food consumption for a five-person household. Through these predictable transfers, the Project also seeks to help beneficiary households progressively build lost private or productive assets. 26. Beneficiary households are selected through a combination of eligibility criteria and community- based targeting. To ensure synergies between the components and economies of scale in implementation, this component intervenes in some localities outside of Bangui that are also targeted by Component 1, namely Kaga Bandaro, Bria, Paoua, Bangassou, and Bambari. There are three steps in the beneficiary selection process. First, all households located in a target area are screened using eligibility criteria related to IDPs and gender. Second, a survey of these households is conducted, and households are ranked and selected based on poverty levels, characteristics, and capabilities. Third, the communities validate the list of beneficiaries. Community targeting is preceded by a basic, simple, and easy-to-deliver assessment of household economic conditions as measured by existing targeting tools or quick surveys, which include questions on ownership of specific goods and assets.12 Component 3—Community mobilization, capacity building, technical assistance, and project management (US$5.0 million equivalent) 27. This component finances the costs associated with community mobilization and accompanying measures foreseen for Components 1 and 2, capacity building, technical assistance to national and local institutions, and project management costs. It includes three subcomponents: (i) community mobilization and accompanying measures; (ii) capacity building and technical assistance; and (iii) project management. Community engagement and consultations has been conducted in all communities where the Project is implemented. A grievance redress mechanism (GRM), established for the Project, allows for safe and confidential reporting of grievances/complaints, with response management protocols and processes for addressing these in a timely manner, and escalating cases if needed. As of October 2020, all complaints received through the GRM had been resolved within the timeframe stipulated in the GRM. The achievement of the related results indicators suggests that activities under Component 3 are well implemented. 28. Accompanying measures. Empirical studies show that programs that combine cash benefits with accompanying measures such as training and sensitization activities (essential family practices, for example) help graduate the ultra-poor and vulnerable groups more effectively than programs providing only cash or only training. While the cash transfers are unconditional and there are no strict requirements to comply with predefined conditions, there is an expectation that beneficiaries attend all accompanying measures. Such measures can include sessions on community reconciliation, peaceful coexistence, prevention of violence, community sanitation, children’s health and nutrition, family health and hygiene, financial literacy, and promotion of savings behaviors. 12Some of the key assets determining the level of poverty of households include ownership of bed, mattress, table, chairs, radio, and hoe, for example. Page 15 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) E. Project Status 29. The Project’s progress toward the PDO and overall implementation progress were rated Moderately Satisfactory in the latest Implementation Status and Results Report (ISR) dated October 13, 2020. As of November 18, 2020, the Project had disbursed US$27.68 million (equivalent to a disbursement rate of 95 percent), approximately US$6.4 million above planned disbursement. With the AF, the closing date would be extended to June 30, 2023 (from the original financing’s closing date of June 30, 2021). 30. The PACAD Project is on track to reach its end-of-project targets. As of June 30, 2020, 169,900 individuals had benefited directly from the Project (77,880 benefited from cash transfers under Component 2, of whom 63 percent are female and 80 percent are IDPs, and with 92,020 benefiting from improved urban living conditions under Component 1). The implementation of cash transfers (Component 2) was rated Satisfactory, and are being implemented as planned, with operations in Bambari completed in November 2019. A beneficiary satisfaction survey has been conducted by UNOPS in Bambari, Enquête de Satisfaction auprès des Bénéficiaires de Transferts Monétaires à Bambari (Beneficiary Satisfaction Survey in Bambari) – March 2020 (findings are discussed below). Post-Distribution Monitoring surveys track the use of funds to ensure that households use the cash for its intended purposes. Activities under Component 3 are also progressing as well, as indicated by the results indicators. 31. The Project has continued operating under COVID-19 with great success. Despite the presence of COVID-19 in the Central African Republic, UNOPS and MAHRN successfully made the fifth and sixth cash transfer payments to 2,926 beneficiaries in Bangassou between June 16 and July 21, 2020. Additional health and safety precautions were put in place to protect the beneficiaries and the stakeholders. The WHO office in Bangassou held training sessions on the preventive measures recommended by the WHO for COVID-19 and on the use of masks and gloves for UNOPS and MAHRN responders. Also, the WHO staff were able to inspect the sanitary devices and provide valuable advice to improve their effectiveness. The United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA) and Central African Armed Forces also supported the mission by ensuring optimum safety throughout the activities. The active participation of municipal authorities further ensured that the activities of the PACAD would not aggravate the COVID-19 situation in the city. The Project spaced out payment sessions to prevent crowding at payment sites. The beneficiaries appreciated the more personalized approach of this mission and the reduction of the number of beneficiaries per day, the display of beneficiaries' names and the time they were expected, and the increased use of local radio to communicate with beneficiaries. In addition, the Project held four daily care sessions for beneficiaries at the place of payment, where each beneficiary received training on preventive measures for COVID-19 as well as a mask, free of charge. The beneficiaries could interactively ask questions and report on the reality of the pandemic in the country. F. Rationale for the Proposed Additional Financing 32. The Government’s ability to protect the population from the impacts of the COVID-19 crisis is limited. The Central African Republic is ill-prepared to face the pandemic. The Government lacks the Page 16 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) implementation capacity and resources to finance a large-scale safety net to mitigate the direct impacts of COVID-19 or the indirect effects of the associated lockdown. Personal protective equipment is not widely available outside of Bangui. The country has only three ventilators, one oxygen concentrator, and one COVID-19 treatment center with 14 beds—all located in Bangui. There are no isolation centers to quarantine COVID-19 patients. 33. IDPs are facing compounding multi-dimensional challenges as a result of the current climate- related floods, requiring urgent assistance to address food insecurity. The poor are particularly vulnerable to crisis-induced food insecurity, livelihood loss and income shocks from flood damage. They are often displaced and exposed to increased vulnerability and have the least ability to save and smooth consumption. If left unaddressed, the floods will result in starvation, deterioration of human capital, and loss of lives and productive assets by impacted households. Emergency cash transfers would help flood- affected IDPs meet their short-term food security and consumption needs and protect them from falling deeper into food insecurity and rebuild their private and productive assets at a time when vulnerability is worsened by COVID-19 impacts. 34. The compounding impacts of recurrent flooding and COVID-19 could destabilize the country and the peace process and jeopardize the upcoming elections. The APPR, signed in 2019 by the Government and the 14 officially recognized armed groups, details the Central African Republic's roadmap to stabilization. It has resulted in a sharp decline in violence. The December 2020 presidential and general elections and 2022 local elections constitute significant steps toward stabilization. However, the recurrent devastating floods and the pandemic worsened an already precarious humanitarian situation and exacerbated social tension, which could eventually drive deterioration in the fragile security situation. There is a real risk that—if not addressed effectively—the current crises will jeopardize the stabilization process and reverse the hard-earned gains of the past five years. The proposed AF would provide cash transfers to affected households and contribute to building government capacity to manage safety net programs, critical to fostering development, social cohesion, and peace. 35. A key element of the Government’s response to the pandemic is adopting the revised 2020 budget and introducing a mechanism to monitor the use of COVID-19-related funds. On July 16, 2020, the National Assembly adopted a revised 2020 budget law that redirected expenditures toward the health, social, and economic impacts of the pandemic and cut non-priority spending. The revised budget provides funds for micro-infrastructure projects, including constructing a new health facility, expanding access to water, and support to the private sector. The Government also established a multi-sectoral committee, presided by the Minister of Finance and Budget, responsible for the effective, transparent, and accountable spending of the pandemic-related resources allocated in the 2020 revised budget. The fiscal impact will be significant, given the need to maintain basic services and security and fight the pandemic amid a sharp decline in domestic revenues. 36. The Government has requested urgent assistance from the World Bank to respond to the crisis brought about by COVID-1913, which is well-aligned with the World Bank Group COVID-19 Crisis Response 13 The World Bank Group is developing a fully fledged response through adjusting and reorienting active and pipeline projects. Page 17 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Approach Paper.14 The paper highlights that the World Bank will support countries as they tackle the unprecedented threats and challenges posed by the COVID-19 crisis through a combination of saving lives threatened by the pandemic; protecting the poor and vulnerable; securing foundations of the economy; and strengthening policies and institutions for resilience based on transparent, sustainable debt and investments. In April 2020, the IMF approved a debt relief operation and a US$38 million disbursement to the Central African Republic to help mitigate the effects of COVID-19. With an immediate focus on saving lives, the World Bank prepared the US$7.5 million COVID-19 Emergency Preparedness and Response Project (P173832 financed under the Fast Track COVID-19 Facility) to support testing, prepare care centers, and procure urgently needed medical supplies. The LONDO (‘Stand-up’ in Sango, the official and commonly-used language in the Central African Republic) Project (P152512) was restructured to support the local production of 10 million masks and drill boreholes to increase access to potable water. Projects already under implementation, including the Health Systems Strengthening Project (SENI, P164953), Primary Education Project (PUSEB, P164295), Agricultural Recovery and Agribusiness Development Support Project (PRADAC, P165855), as well as new operations—Human Capital Project (P171158), Digital Governance Project, Private Sector Support Project (P170903)—were oriented to restore livelihoods and support enhanced quality and access to basic services. Projects paving the way toward a more resilient recovery include the Regional Disease Surveillance System Enhancement Project Part IV (REDISSE IV, P167817), which aims to build a robust, integrated pandemic-preparedness system with neighboring countries (the Democratic Republic of the Congo, Republic of Congo, and Chad); the Consolidation and Social Inclusion Development Program (CSIDP2, P168474), which supports free health care and teacher recruitment; the Rural Connectivity Project (P160500); the Water and Electricity Upgrading Project (PASEEL, P162245), which seeks to expand access to water; and the supplemental financing to the CSIDP 1 approved on June 11, 2020 (Figure 2). Strengthening policies, institutions and investments for rebuilding better is supported by CSIDP 2 (P168474) (US$50 million), which was approved on September 1, 2020 and supports structural reforms that will help strengthen the Central African Republic’s economic position to navigate the COVID-19 crisis and its aftermath. 14 World Bank. 2020. COVID-19 Crisis Response Approach Paper Saving Lives Scaling up Impact and Getting Back on Track. Page 18 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Figure 2. The World Bank’s Coordinated Three-Phased Response to the COVID-19 Crisis PACAD AF (US$16 million) 37. It is well recognized that social protection tools, such as cash transfers, can contribute to development policy and reduce vulnerabilities by: (i) ensuring that income is redistributed to the poorest and most vulnerable; (ii) enabling households to make better investments in their future; (iii) helping households to manage risks; and (iv) allowing the Government to make choices that support efficiency and growth.15 Social safety net programs are now widely used in different contexts, such as the Umurenge Program in Rwanda, which helped reduce the poverty rate by 12 percent,16 or the Juntos Project in Peru. This conditional cash transfer helped halve stunting among children under age five (from 29 percent to 14 percent in less than a decade).17 38. The PACAD Project’s cash transfers component (Component 2) makes it a readily -available instrument to respond to the Government’s request for urgent assistance. The PACAD provides 77,880 poor and vulnerable IDP households with predictable quarterly cash transfers over two years to meet their consumption gaps, and provides protection against food insecurity, malnutrition risks and reduce negative coping mechanisms such as the sale of personal/productive assets. The PACAD cash transfers program is well established and in its third year of implementation. The Project is supporting cash transfers to affected IDP households and can be easily and quickly scaled up. The Project also contributes to building government capacity to manage safety net programs, which is an essential element of the emergency response and also critical to fostering development, social cohesion, and peace. 39. The PACAD’s cash transfer beneficiaries have realized important benefits. The beneficiary satisfaction survey18 conducted in Bambari demonstrates the important benefits realized by the cash transfer beneficiaries of the PACAD Project. Of the 1,567 beneficiaries surveyed, the vast majority (99.62 percent) felt that PACAD cash transfers had a positive impact on their respective households, while 91 percent reported that the transfers helped to better meet their consumption needs and 90 percent said 15 Grosh, Del Nino, Tesliuc, Ouerghi. 2008. For Protection and Promotion: The Design and Implementation of Effective Safety Nets. Washington, DC: World Bank. pages 1–2. 16 Podesta, John, and Casey Dunning. 2013. "Social safety nets don't handicap economies, they save lives and provide continued opportunities to grow out of poverty." The Guardian, May 7, 2013. 17 Dan Collyns, 2016. The Country That Cracked Its Stunting Crisis. The Guardian 30 September 2016. 18 Enquête De Satisfaction Auprès Des Bénéficiaires De Transferts Monétaires À Bambari – Rapport D’Analyse (March 2020), UNOPS Page 19 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) they helped to increase their assets. It is envisioned that the AF would provide similar benefits to IDPs impacted by the pandemic and floods. 40. The proposed AF is an important component of World Bank support to respond to the threat of COVID-19, aligns well with government policy objectives and the World Bank’s CPF. The CPF for FY21– 2519 (Report No. 150618) includes the provision of AF to PACAD to provide cash transfers to vulnerable households affected by COVID-19. The proposed AF would support rapid scale up of coverage to support vulnerable IDP households affected by the COVID-19 pandemic and current floods. The AF would provide assistance to stop beneficiary households from falling into deeper food insecurity, as well as preventing the sale/loss of their assets through the provision of cash transfers. The implementation of the Project would benefit from the delivery system and procedures established under the PACAD, in continued partnership with UNOPS. 41. Donor support in response to COVID-19 has also been strong. The United Nations Children’s Fund (UNICEF) has provided US$20.3 million for risk communications, infection prevention and control, health and nutrition, education, child protection, and cash transfers. The UN Central Emergency Response Fund allocated US$5 million to nongovernmental organizations (NGOs), the International Rescue Committee, the International Medical Corps, the Alliance for International Medical Action, and Médecins d’Afrique to scale-up the COVID-19 response in the central, eastern and northern regions of the country. The European Commission granted €54 million to help the Government shore up public expenditure negatively impacted by the fight against the virus. Rwanda also donated US$200,000 worth of COVID-19 screening supplies. 42. Cash and in-kind transfers are a critical element of the country’s safety net. In 2019, 649,000 persons (13.7 percent of the population) benefitted from US$28.95 million in cash-based initiatives from donors, including the World Bank, United Nations High Commissioner for Refugees, UNICEF, the World Food Program, and the OCHA. These donors have adopted a common approach to provide cash assistance and avoid parallel systems or duplicate financial instruments by operational agencies. As of June 30, 2020, 263,000 beneficiaries had benefitted from similar cash-based initiatives totaling US$6.2 million. These cash-based initiatives are focused on the west and center of the country, as well as in Bangui (Figure 3). The food security programs, which benefitted an estimated 653,000 persons during the first quarter of 2020, aim to reach 1.4 million beneficiaries in 2020. 19 CPF for the Central African Republic FY21–FY25, World Bank (August 4, 2020), Report No.150618-CF. Page 20 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Figure 3. Cash-Based Initiatives (January 1–June 30, 2020) Source: OCHA and Cash Working Group. II. DESCRIPTION OF THE ADDITIONAL FINANCING A. Overview and Development Objective 44. The proposed US$16.00 million equivalent AF would support the Government’s effort to mitigate the impacts of COVID-19 and climate-related floods on affected communities while continuing to support IDPs and the most vulnerable, strengthen the country’s safety net, and promote stability. 45. The proposed AF would modify the PDO to: “increase access to basic services, infrastructure, and safety nets for communities affected by crises, including forced displacement and COVID-19.” The original PDO was to “increase access to basic services, infrastructure, and safety nets for communities affected by forced displacement.” This modification would allow the Project to provide support to populations affected by COVID-19 and climate-related crises (i.e. the current floods), protecting their food security and assets. Page 21 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) 46. The proposed AF would finance the following activities: a. Scale-up safety nets component (Component 2) of PACAD to provide cash transfers to an incremental number of households, including those affected by COVID-19 and other crises (US$12.00 million); and b. Scale-up the community mobilization and accompanying measures, capacity building and technical assistance, and project management activities (Component 3) to implement activities related to the safety nets component (US$4.00 million). 47. The AF would scale up cash transfers. The AF would not finance access to basic services and infrastructures (Component 1). The AF would scale-up Component 2 activities in areas impacted by displacement to cover new communities most affected by COVID-19 and flooding, including Bangui and other urban and peri-urban areas. The following funding allocation has been agreed for the AF (Table 2). Table 2. Funding Allocations (US$, millions) Allocation under the Original Component Financing Allocation under the AF Total Component 1 – Access to basic services and 15.00 0.00 15.00 infrastructure Component 2 – Safety nets 8.00 12.00 20.00 Component 3 – Community mobilization, capacity building, technical assistance, and 5.00 4.00 9.00 project management Total 28.00 16.00 44.00 48. Implementation arrangements would remain the same as PACAD. MAHRN would enter into a standard service agreement with UNOPS to support implementation of all Project activities. The Fiduciary Agent within the Ministry of Public Works would bear all fiduciary responsibilities related to the Project. The MAHRN Technical Unit would remain responsible for Project activity coordination and technical oversight. The Project Steering Committee would provide overall institutional oversight, ensuring that Project activities align with national plans and guidelines. 49. Recurring crises, such as COVID-19 and the current climate-related floods are amplifying an already dire and widespread situation of food insecurity. The overlapping crises are displacing populations, causing significant loss of assets and livelihoods, and threatening the food security and economic wellbeing of poor households. The proposed AF would respond to this threat by providing rapid temporary emergency cash transfers to IDPs affected by the climate-related floods to alleviate their food insecurity and protect and/or build their personal and productive assets. Progress of outcomes on the climate-related crises response would be measured by gender-disaggregated data in the M&E framework Page 22 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) through the PDO-level indicator on “Beneficiaries/individuals of safety net programs affected by climate- related crises.” Similarly, the AF would support IDPs affected by the COVID-19 pandemic, with outcomes to be measured by gender-disaggregated data through the PDO level indicator on “Beneficiaries/individuals of safety net programs affected by COVID-19.” B. Components Component 2: —Safety nets (AF: US$12.0 million equivalent) 50. The AF would scale up the cash transfer program. It would provide incremental temporary income to vulnerable households in communities impacted by COVID-19 and climate-related crises (i.e. the current floods) in areas affected by forced displacement. The UNOPS delivery mechanisms under the parent Project would be used to implement the cash transfers. The intervention areas, criteria for selecting beneficiaries, and benefit amount would be determined in collaboration with development and humanitarian partners. Such collaboration would avoid duplication and create synergies with other food and cash transfer programs, thereby maximizing the impact on the ground. For example, the Project could select communities with the following characteristics to receive the flood- and COVID-19-related cash transfers: (i) greater share of its population diagnosed with COVID-19 and/or affected by floods; (ii) larger impact of lockdown/social-distancing measures on earnings; and (iii) inability to purchase food because of scarcity or higher prices. 51. Locations. Current cities of intervention are Bambari, Kaga-Bandoro, Paoua, Bangassou, and Berberati, where cash transfers have been financed directly with government resources. The AF would be implemented in Bambari, Kaga-Bandoro, Paoua, and Bangassou, and extended to Bangui, Bria (if the security situation permits), and another city along the border with Cameroon (to be defined). Final targeted areas will be identified during project implementation according to selection criteria and procedures identified in the Project Implementation Manual. 52. Targeting mechanism. Targeting would be based on the methodology used for PACAD in areas impacted by displacement. First, the team would identify the areas within the intervention locations with high poverty and COVID-19 infections, as well as the areas affected by flooding. Next, screening for household eligibility using economic criteria (presence of women, IDPs, housing characteristics) would be conducted. Lastly, community-based targeting would validate beneficiaries. As per the parent Project, community targeting would be preceded by simple and easy-to-deliver household assessments using targeting tools or quick surveys. In order to address the gender gap that limits female voice and agency, the AF would ensure women’s participation in the community consultation process and community committees with equal representation. 53. Beneficiaries would be heads of households – preferably females who are IDPs, hosts of IDP returnees, or households in communities affected by displacement or by crises, including COVID-19 and floods. International experience shows that cash transfers enable poor households to spend more on goods (food, clean water, and medicine) and services (health and education) that generate human capital accumulation. Regular and predictable cash also allows families to meet their food security and consumption needs, improve livelihood strategies and reduce negative coping mechanisms, such as the Page 23 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) sale of assets, including during crises. In an effort to address the gender gap, particularly in terms of access to income, the preference would be to make females the direct beneficiary of the cash transfers in eligible households. Potential beneficiary households would be registered in the social registry. Accompanying measures would seek to promote community participation, ensure that cash transfers are used for their intended purposes, as well as raise awareness to reduce the spread COVID-19. 54. There would be two types of cash transfers: standard cash transfers and crisis-response (COVID- 19, floods, etc.). The standard cash transfers would remain the same as under the parent Project. That is, over a two-year period, households would receive quarterly payments of CFAF 25,000 (approximately US$50), which is about the cost of a 50 kg bag of rice and represents 15 percent of food consumption for a five-person household in line with international experience. Due to their emergency nature, the crisis- response cash transfers (for COVID-19 and floods) would consist of four quarterly payments of CFAF 25,000 to protect their food security and assets. The crisis-response cash transfers would be available only to those who do not already benefit from the PACAD standard cash transfers in order to spread benefits. The total number of expected beneficiaries is estimated at 30,000 households, corresponding to 150,000 individuals. 55. The AF would pursue mobile cash transfer payments. Initially, payments would be in cash as per the parent project. The payment mechanism would progressively switch to that used in Berberati, which transferred government-funded cash transfers through mobile payments. Mobile payments would reduce security challenges related to the physical transport and delivery of cash and also the potential health risks associated with the COVID-19 pandemic. Where mobile payments are not feasible, UNOPS would continue making direct cash transfer payments. UNOPS could consider purchasing mobile phones for beneficiaries when appropriate. Transitioning the payment system to mobile money and providing mobile phones to beneficiary households would contribute to linking them to communication, financial and education services (such as accompanying measuring messages transmitted via SMS). Synergies with other World Bank projects such as the upcoming Development Policy Operation (Second Consolidation and Social Inclusion Development Program, P168474) to be delivered by December 31, 2021, and the forthcoming Digital Development Project would also be investigated to identify the most appropriate payment mechanism for cash transfers. 56. COVID-19-related awareness measures would accompany cash transfers. Such measures could include health and hygiene briefings and promotional materials to ensure household and community awareness of necessary safety precautions. Beneficiaries of both the standard cash transfers and crisis- response cash transfers would be required to attend the COVID-19-related accompanying measure sessions. Throughout the duration of the pandemic, the authorities through the Service Provider would ensure that all beneficiaries attend these COVID-19 accompanying measures sessions. Component 3 – Community mobilization, capacity building, technical assistance, and project management (AF: US$4.0 million equivalent) 57. The AF would scale-up community mobilization, accompanying measures, GRM, capacity building, technical assistance and project management, and create a social registry. This component would finance the costs associated with implementing Component 2 (community mobilization, cash transfers and accompanying measures), including capacity building, technical assistance to national and Page 24 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) local institutions, project management and the creation of a social registry. Community engagement and consultations have been conducted in all communities where the Project is implemented and will be conducted periodically throughout implementation. The feedback from the consultations will be taken into account and addressed in project interventions. This component has three sub-components as follows: a. Subcomponent 3.1: Community mobilization, accompanying measures, and GRM. Activities under this subcomponent would support community mobilization and the provision of accompanying measures for cash transfers that promote beneficiary community engagement, foster community dialogue, and promote activities for healthy and peaceful coexistence among different groups. It would also finance the costs associated with the implementation of the GRM. b. Subcomponent 3.2: Capacity building and technical assistance. This subcomponent would provide technical assistance to the government institutions involved in cash transfers, including MAHRN and especially its Technical Unit, the Ministry of Labor, Employment and Social Protection (Ministère du Travail, de l’Emploi et de la Protection Sociale) and the Ministry for the Promotion of Women, Family and the Protection of Children (Ministère de la Promotion de la Femme, de la Famille et de la Protection de l’Enfant) to gradually provide the Central African Republic with the tools and the capacities to effectively implement cash transfers. To reach this objective, UNOPS would preferably recruit and train local consultants. This subcomponent would also support the development of a social registry, which would support future program expansion and interventions. c. Subcomponent 3.3: Project management. This subcomponent would support the costs associated with project management, coordination, implementation, transfer fees, and monitoring and evaluation. C. Gender 58. Poverty and vulnerability in the Central African Republic take on specific gendered dimensions, such that women are disproportionately affected. With a Gender Inequality Index of 0.682, it ranked 159 out of 162 countries in 2018.20 Challenges permeate the entire life cycle of females in the country. Women experience poor maternal health due to high adolescent fertility (with 104 births per 1,000 women aged 15–19 years) and higher lifetime fertility (with maternal mortality estimated at 882 per 100,000 live births). The high rates of teen pregnancy and early marriage result in elevated school dropout rates, poor educational outcomes, and low literacy (68 percent of women are illiterate compared to 48 percent of men). As a result, women have low economic empowerment and low participation in the labor force (61 percent for women compared to 80 percent for men), mainly in agriculture and the informal sector. Discriminatory laws, social norms and poor access to justice, further limit women’s economic empowerment, for example from having to rely on their husbands for access to land. Women also suffer from female genital mutilation, lack of access to basic social services, exposure to gender-based violence, 20 Gender Inequality Index 2018. http://hdr.undp.org/en/content/gender-inequality-index-gii. Page 25 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) and geographic mobility constraints because of personal safety concerns. According to a UNESCO study, GBV is so normalized that over 80 percent of women reported that they believe wife-beating is acceptable. 59. While the parent project exceeded gender results targets, the proposed AF would explore making women in targeted households the primary recipient of cash transfers to ensure their empowerment. These include giving preference to making females the direct cash transfers beneficiary to enhance their financial inclusion and build assets, ensuring community consultations and community committees include equal representation, and provision of training to women to increase their voice and agency. Progress on gender-specific outcomes would be measured through gender-specific and gender-disaggregated data in the monitoring and evaluation framework, particularly through the PDO-level indicator on “Female direct recipients of the cash transfers” in the Results Framework. D. Results Framework 60. The Results Framework would be revised to reflect the scaling-up of PACAD, including the relevant end-of-project targets as well as revisions to the end target dates to match with the newly established closing date. Targets impacted by the expansion of cash transfers to additional beneficiaries would be revised upward. In addition, some indicators would be modified and added to measure the response to COVID-19 and climate-related crises. Changes to the Results Framework would be as follows. a. Proposed changes and additions to PDO-level results indicators: i. “Direct Project beneficiaries/individuals” would be revised to include an additional 134,000 individuals, bringing the total to 324,000. ii. “Beneficiaries/individuals of safety nets programs” would be revised to include an additional 150,000 individuals, bringing the total to 225,000 individuals. iii. One new PDO-level results indicator would be added to measure the “Female direct recipients of cash transfers”. The target would be 50 percent of all recipients. iv. One new PDO-level results indicator would be added to measure the “Beneficiaries/individuals of safety net programs affected by COVID-19, of which female”. The target would be 30,000 individuals, 50 percent of whom are female. v. One new PDO-level results indicator would be added to measure the “Beneficiaries/individuals of safety net programs affected by climate-related crises, of which female”. The target would be 15,000 individuals, 50 percent of whom are female. b. Proposed changes and additions to Intermediate Results Indicators: i. “Roads rehabilitated, non-rural” would be revised downward to 5km. The initial forecast did not correspond to the infrastructure projects that were subsequently selected by the communities. ii. “Person-days of employment created” would be revised downward to 80,000 to reflect Page 26 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) the infrastructure projects that were selected by the communities that were less labor intensive. Since other infrastructure was prioritized, those targets would need to be revised downwards. iii. New Component 2 indicator would be added “Number of households who have benefited from at least one cash transfer payment, of which affected by COVID-19”. The overall Project target would be 45,000 households. This would include 15,000 households under the parent Project and 30,000 new households under the AF (including 6,000 households for COVID-19 and 3,000 households for climate-related crises). iv. New Component 2 indicator would be added “Amount of cash transfers made to households (CFAF), of which affected by COVID-19”. The overall Project target would be to transfer CFAF 9.0 billion to beneficiary households. This would include CFAF 3.0 billion under the parent Project and CFAF 6.0 billion under the AF (including CFAF 1.2 billion for households affected by COVID-19 and CFAF 600 million for households affected by climate-related crises). v. “Participants in consultation activities during project implementation, of which female and displaced” would be revised to 2,200, 900, and 1,300 individuals, respectively. vi. New Component 3 indicator would be added: “Social Registry (SR) has been developed and deployed (Yes/No)." vii. “Grievances registered related to delivery of project benefits (%)” would be revised to “Grievances registered related to delivery of project benefits addressed within the project GRM timeframe (%)” III. KEY RISKS 61. Overall Risk. The overall risk rating for this AF is Moderate (SORT in Summary Table of Changes). The main risk arises from the security conditions as Project activities could occur in areas where armed groups are present. Periodic violence could prevent access to these localities for implementation and supervision. UNOPS would work closely with MINUSCA to ensure that security measures are in place during activities. The security risk is accounted for under “Other risks” and is Substantial. The political risk is also Substantial. Political commitment to the COVID-19 response remains high, with the Government continuing to mobilize resources and putting in place enhanced efforts to prevent and contain the pandemic. The proposed AF is consistent with the renewed contract between the Government and the population outlined in the National Plan for Recovery and Peacebuilding (RCPCA) that covers the five-year period 2017-2021. The negotiated Political Accord for Peace and Reconciliation is under implementation mitigates the political risk, which remains Substantial due to the upcoming elections. The risks of the AF are lower than those of the parent project because of an established record of successful implementation. Page 27 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) IV. APPRAISAL SUMMARY A. Economic and Financial Analysis 62. The Project is expected to reduce poverty of displaced populations and improve their ability to cope with shocks. Cash assistance typically provide immediate relief, enabling beneficiaries to smooth their food consumption and pay for health and education services, improve human capital and potentially save lives. Emergency cash transfers also help to ensure food security and reduce negative coping mechanisms. Empirical studies show that programs that combine cash benefits with accompanying measures, such as training and sensitization activities (i.e. essential family practices) help graduate the ultra-poor and vulnerable groups more effectively than programs providing only cash or only training. 63. The cash transfers component would provide support to poor households to increase their income and consumption. Empirical evidence indicates that cash transfers have a significant development impact, leading, for example, to increased spending on health, education, and food security, as well as to economic investment. Bastagli et al. (2016)21 report that international studies show that cash transfers have positive impacts on educational attendance (52 percent) and heath service use (60 percent). In addition, about 40 percent of beneficiaries found positive impacts on saving, 71 percent found statistically significant increases in livestock assets, 21 percent found increases in work participation, and 86 percent found decreases in domestic violence. Obviously, the design of the programs evaluated varied greatly and not all programs aimed to have an impact on every dimension examined. Fears that cash transfer recipients misuse the transfers have also been proven largely unfounded. Evans and Popova (2014) examined data on 19 programs and found almost without exception no significant evidence of increased spending on temptation goods such as alcohol and tobacco.22 64. Accompanying measures would support human capital development and promote peaceful co- existence. The 2011 World Development Report,23 notes that developmental and economic impacts of conflict are extremely high, resulting in destruction and degradation of infrastructure, lost employment opportunities and livelihoods options, capital flight, weaken institutions, prevention cost, and decline in human and social capital. In a country marked by repeated conflict, it is envisioned that accompanying measures with sessions on community reconciliation, peaceful coexistence and prevention of violence would promote acceptance of IDPs, social cohesion and help to reduce conflict. Social benefits from accompanying measures, such as community sanitation, children’s health and nutrition, family health and hygiene, financial literacy, promotion of savings behaviors and COVID-precautionary measures are also likely to be high as they foster human capital. 65. The economic rate of return from the cash transfers program and accompanying measures is 21 Bastagli, Francesca, Jessica Hagen-Zanger, Luke Harman, Valentina Barca, Georgina Sturge and Tanja Schmidt. 2016. “Cash Transfers: What Does the Evidence Say?” Overseas Development Institute. 22 Evans and Anna Popova, "Cash Transfers and Temptation Goods," Economic Development and Cultural Change 65, no. 2 (January 2017): 189-221. 23 World Bank. 2011. World Development Report, Conflict, Security, and Development . Washington, DC: World Bank. Pages 59–65. Page 28 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) expected to be high. Cash transfer programs do not fit a traditional cost-benefit analysis. Although the costs are known (consisting primarily of quarterly cash payments of US$50 to beneficiary households, which represents about 10-15 percent of food consumption for a five-person household), the benefits of alleviating immediate hardships within the targeted and vulnerable households (including immediate food insecurity) are not readily quantifiable. The fees for the implementation and payment agencies represent about five percent of the total amount of cash transferred and are aligned with international experience. Consequently, the economic rate of return from the proposed AF would likely be high. B. Technical 66. The Project’s proposed technical design is the most appropriate to meet the Recipient’s objectives of supporting COVID-19 and flood-affected communities and improving the welfare of selected vulnerable households in the country’s poorest communities. The project design reflects accumulated experience and operational practices adopted by the World Bank, NGOs, and UN agencies that have intervened in insecure areas in the country, outside the capital, Bangui. The Project would also benefit from the technical experience of the service provider, which has acquired significant experience in the implementation of PACAD. Technical aspects of project design include: (i) Adopt a set of Do No Harm principles, based on knowledge of local context, to guide implementation. (ii) Use existing and tested criteria, developed by NGOs and others, to target households (cash transfers) and beneficiaries (temporary job opportunities). (iii) Promote shared benefits of investments between host populations and the displaced to avoid further social polarization. (iv) Ensure inclusive and participatory processes when possible to support opportunities for community dialogue, collaboration among groups, and peaceful coexistence of communities. C. Procurement 67. The procurement arrangement for the proposed AF would remain the same as that of the parent project. The latest procurement review of January 31, 2020 rated procurement performance of the parent Project as Satisfactory. MAHRN would sign a service agreement with UNOPS for carrying out the AF. The direct selection of UNOPS as the service provider would be made in accordance with paragraphs 6.47 and 6.48 of the “Procurement Regulations for Borrowers Applying for Financing of Investment Projects” dated July 2016 revised November 2017 and August 2018. The direct selection of UNOPS is justified based on the following criteria: (i) UNOPS’ successful implementation of the parent project; (ii) UNOPS’ expertise in delivering urgent assistance in countries with capacity constraints; and (iii) UNOPS’ established delivery mechanism including strong field presence, strong capacity to mobilize staff, and material and technical resources. 68. The Fiduciary Agent within the Ministry of Public Works would maintain overall fiduciary responsibility for the Project. The Fiduciary Agent would record the Service Agreement in the Systematic Tracking of Exchanges in Procurement (STEP). The Service Agreement would ensure that UNOPS procure Page 29 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) services to implement Project components. D. Financial Management 69. The financial management of the AF would remain the same as that of the parent project. The financial management arrangements comply with the fiduciary requirements outlined in the World Bank Policy on IPF. The overall financial management of PACAD is rated Satisfactory. The Fiduciary Agent (the unit in the Ministry of Public Works with responsibility for all fiduciary matters related to the project) is adequately staffed. Proper books of accounts and supporting documents have been kept in respect of all expenditures. The Fiduciary Agent would maintain responsibility for the financial management of the Service Agreement with UNOPS. The Service Agreement would ensure that UNOPS report to the MAHRN Technical Unit on project progress and present payment requests to be then processed by the Fiduciary Agent. 70. The Service Agreement would ensure that UNOPS provide the Fiduciary Agent with quarterly unaudited Interim Financial Reports (IFR), annual external audits and all financial information required to prepare the financial reports. The Fiduciary Agent would submit the quarterly unaudited IFRs to IDA within 45 days after the end of each quarter. Financial statements would be prepared for each financial exercise covering 12 months. The external audits would be submitted to the Fiduciary Agent and then to IDA no later than six months after the end of each audited fiscal year. E. Disbursement 71. The AF would continue to use transaction-based disbursements and finance 100 percent of eligible expenditures inclusive of taxes. The Designated Account (DA) opened under the parent project would be used for the AF. An initial advance would be made to UNOPS up to the ceiling of the DA. Subsequent disbursements would be made against submission of Statements of Expenditures (SoE) reporting on the use of the initial or previous advance. The option to disburse against submission of quarterly unaudited IFR (also known as report-based disbursements) could be considered once the Project meets the relevant criteria. Other fund disbursements (reimbursement, direct payment, and special commitment) would also be available. The minimum value of applications for these methods is 20 percent of the DA ceiling. The AF would sign and submit withdrawal applications electronically using the eSignatures module accessible from the World Bank’s Client Connection website. The disbursement categories are provided in Table 3 below. Page 30 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Table 3. Disbursement Categories Category Amount of Financing Percentage of Allocated (US$) Expenditures to be Financed (inclusive of Taxes) (1) Goods, training, operating costs, consulting 4,000,000 100% services, and non-consulting services for the Project, except for Part 1, Part 3(a)(i) and cash transfers under Part 2 of the Project (2) Cash transfers under Part 2 of the Project 12,000,000 100% of amount disbursed Total amount 16,000,000 72. The proposed closing date for the AF would be June 30, 2023. The closing date of the original financing (parent Project) would be extended from June 30, 2021, to June 30, 2023, to align with the AF’s closing date. This additional time is necessary to process the eight quarterly cash transfer payments under the standard cash transfers and conduct an evaluation of the cash transfers program. F. Safeguards 73. The Project’s overall compliance with Safeguards requirements is currently rated Satisfactory and has remained so during the last 12 months. 74. Waiver of the Environmental and Social Framework (ESF). On July 31, 2020, in preparation for the proposed AF, the OPCS VP approved a memo to waive the ESF, the Environmental and Social Directive for IPF, and the Directive on Addressing Risks and Impacts on Disadvantaged or Vulnerable Individuals or Groups. As a result, the existing safeguard instruments, documents, and systems would apply to the activities financed under the proposed AF. 75. Deferred preparation of safeguards instruments. As already noted, the proposed AF is being processed in accordance with the condensed procedures outlined in Paragraph 12 on ‘Projects in Situations of Urgent Need of Assistance or Capacity Constraints’ of the World Bank IPF Policy. On November 2, 2020, the Regional Vice President for West and Central Africa approved to defer preparation of safeguards instruments under Paragraph 12. 76. The proposed AF is classified in Category B due to its low level of social and environmental risks and impacts of its foreseen activities. As already stated, the proposed AF would not finance basic services and infrastructure (Component 1). It would finance cash transfers, which do not trigger any environmental safeguard policies. 77. Safeguard documents. The Government prepared an Environment and Social Management framework (ESMF) in April 2018 and a Resettlement Policy Framework (RPF) in October 2018 for the original financing. Only the ESMF remains relevant for the AF since Component 1 would not be scaled-up. Page 31 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) The ESMF prepared to govern the original financing has been updated in accordance with the World Bank’s Social Development guidance for operations responding to the COVID-19 pandemic.24,25 It has also been updated to cover the inclusion of minority groups such as Persons with Disabilities, and for GBV and Gender. The finalization and disclosure of the ESMF both in-country and on the World Bank Infoshop is a condition for effectiveness. The Project Information Document–Integrated Safeguards Data Sheet has been updated and re-disclosed on November 3, 2020. 78. Institutional Arrangement for Safeguards. The AF would follow the safeguards arrangements that are in place under the parent project. The overall responsibility for safeguards rests with the MAHRN Technical Unit, with support from UNOPS’ Social and Environmental Safeguards Specialist who would continue to be responsible for the safeguards aspects of Project implementation. Social and Environmental Safeguards Specialists from IDA would provide support when necessary. The Project GRM that has been updated in preparation for the AF would remain in place. UNOPS would continue screening all activities to determine whether they trigger any safeguard policies. 79. Social Safeguards. The following actions have been adopted to strengthen social safeguards: (i) updating the ESMF (see above); (ii) updating the assessment of the GBV/SEA/SH risks and action plan; and (iii) strengthening the GRM to ensure a safe, confidential channel for all potential survivors and adequate referral for response. During implementation, UNOPS would minimize the possibility for SEA/SH, including through community engagement, strengthening of community organizer training, improving of SEA/SH- sensitive channels in the GRM, and strengthening oversight of the selection of community organizers and beneficiaries to minimize the risk of exploitation. 80. In compliance with the UN and UNOPS guidelines, UNOPS has already developed procedures for the logistics of cash transfers to mitigate the incremental risks brought about by COVID-19. UNOPS already applies the UN, UNOPS, and MINUSCA COVID-19-related guidelines for the consultation process with the population and follows MINUSCA’s overall instructions and UNOPS’s Health and Safety measures for fieldwork. Further assessments would be conducted to assess the risks from COVID-19, and appropriate mitigation measures, including using the COVID-19 ESMF/ESMP template, could be incorporated. 81. The proposed Project has been screened for climate change and disaster risks. The climate risk rating based on exposure is moderate and the risk to the outcome that the project is aiming to provide is low. CAR is vulnerable to extreme climate hazards, with recurring droughts and torrential rains followed by extreme precipitation and flooding, according to the Central African Republic’s Nationally Determined Contribution (NDC).26 Vulnerable groups such as rural communities, women, children, and the elderly are most exposed. Floods account for the largest share of natural disaster-related losses, mainly in the southern part of the country, impacting housing, buildings, roads, and other infrastructure. Unusually 24 Operations Policy and Country Services (OPCS) ESF Resources: https://worldbankgroup.sharepoint.com/sites/wbunits/opcs/Pages/pc/Operations-COVID19-Coronavirus-Information- 03092020-081859/Environmental-a-04202020-163137.aspx. 25 Social Sustainability and Inclusion Social Development and COVID-19 Response: https://worldbankgroup.sharepoint.com/sites/social/Pages/Social-Development-and-COVID19-Response-04132020- 080313.aspx. 26 Central African Republic NDC 2016. Page 32 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) heavy rains in late 2019 caused flooding and damage across eight of the country’s 16 prefectures, impacted 57,000 people, displaced 20,000 people, and destroyed over 10,000 homes.27 Droughts, which are common in the north and northeast of the country, and the dry season impact agriculture, food security, public health, and sanitation. These conditions expose people to many diseases, including typhoid, respiratory infections, acute meningitis, diarrhea, and malaria. Climate changes could impact the Project, as precipitation and flooding, which result in part from global warming, increase the risk of climate-related crises, such as displacing already vulnerable populations. 82. Climate co-benefits refer to the share of World Bank’s lending commitments that contribute to climate change mitigation and/or adaptation. Social protection, such as cash transfer programs can help build poor and vulnerable households’ and communities’ resilience to climate change through diversifying livelihoods, encouraging savings, preventing poor coping decisions and managing transitions to alternative income-generating activities, including reducing poor households’ reliance on deforestation as a livelihood. The AF would generate incremental climate co-benefits. The AF would include the provision of cash transfers to IDPs affected by climate-related crisis, such as floods, which would help to (i) diversify the income of poor and vulnerable households; (ii) provide beneficiaries with a source of regular or emergency income/cash transfers during crises to meet urgent needs and mitigate risks to their livelihoods and food security; (iii) promote resilience by allowing them to save and/or invest in risk mitigating measures, for example building homes with the roof made of corrugated zinc or walls with cement; and (iv) improve their ability to access basic services, such as health care and transport. The cash transfers system and the social registry would also allow the Government to respond more quickly to climate-related crises, including floods, by identifying and targeting new and existing beneficiaries for emergency assistance. V. WORLD BANK GRIEVANCE REDRESS 83. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project-affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel, which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank’s attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit http://www.inspectionpanel.org. 27 IOM 2019; NRC 2019. Page 33 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) VI. SUMMARY TABLE OF CHANGES Changed Not Changed Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ VII. DETAILED CHANGE(S) PROJECT DEVELOPMENT OBJECTIVE Current PDO The PDO is to increase access to basic services, infrastructure and safety nets for communities affected by forced displacement. Proposed New PDO The PDO is to increase access to basic services, infrastructure and safety nets for communities affected by crises, Page 34 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) including forced displacement and COVID-19. COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Component 1 – Access to 15.00 No Change Component 1 – Access 15.00 basic services and to basic services and infrastructure infrastructure Component 2 – Safety nets 8.00 Revised Component 2 – Safety 20.00 nets Component 3 - Community 5.00 Revised Component 3 - 9.00 mobilization, capacity Community building, technical mobilization, capacity assistance and project building, technical management assistance and project management TOTAL 28.00 44.00 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications IDA-D1920 Effective 30-Jun-2021 30-Jun-2021 30-Jun-2023 30-Oct-2023 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2017 30,000.00 30,000.00 2018 7,547,327.00 7,577,327.00 2019 7,337,496.00 14,914,823.00 2020 13,085,177.00 28,000,000.00 2021 4,000,000.00 32,000,000.00 2022 4,000,000.00 36,000,000.00 2023 4,000,000.00 40,000,000.00 Page 35 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) 2024 0.00 40,000,000.00 2025 0.00 40,000,000.00 2026 0.00 40,000,000.00 2027 0.00 40,000,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance ⚫ Substantial ⚫ Substantial Macroeconomic ⚫ Low ⚫ Low Sector Strategies and Policies ⚫ Low ⚫ Low Technical Design of Project or Program ⚫ Low ⚫ Low Institutional Capacity for Implementation and ⚫ Low ⚫ Low Sustainability Fiduciary ⚫ Low ⚫ Moderate Environment and Social ⚫ Moderate ⚫ Moderate Stakeholders ⚫ Low ⚫ Low Other ⚫ Substantial ⚫ Substantial Overall ⚫ Moderate ⚫ Moderate LEGAL COVENANTS2 LEGAL COVENANTS – AF for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Sections and Description OPS_LEGAL_CONVENANT_CHILD_NODATA No information available Conditions Type Description Effectiveness The Service Agreement has been executed on behalf of the Recipient and the Service Provider under terms and conditions acceptable to the Association. Type Description Effectiveness The Recipient has updated and thereafter adopted the Project Implementation Manual (PIM) in form and substance satisfactory to the Association Page 36 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Type Description Effectiveness The Recipient has prepared, adopted and disclosed the Environmental and Social Management Framework (ESMF) in form and substance satisfactory to the Association. Page 37 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Central African Republic AF for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project Project Development Objective(s) The PDO is to increase access to basic services, infrastructure and safety nets for communities affected by crises, including forced displacement and COVID-19. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Increase access to basic services and infrastructure for communities affected by crises. (Action: This Objective has been Revised) Direct project beneficiaries (Number) 0.00 169,000.00 200,000.00 250,000.00 300,000.00 324,000.00 Action: This indicator has been Revised Female beneficiaries 0.00 45.00 48.30 47.40 50.00 50.00 (Percentage) of which displaced (Percentage) 0.00 20.00 30.00 30.00 30.00 30.00 People provided with improved urban living conditions 0.00 0.00 34,000.00 68,000.00 99,000.00 99,000.00 (Number) of which female (Percentage) 0.00 30.00 40.00 50.00 50.00 50.00 of which displaced 0.00 20.00 30.00 30.00 30.00 30.00 (Percentage) Page 38 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Increase access to safety nets for communities affected by crises (Action: This Objective has been Revised) Beneficiaries of safety nets 0.00 77,880.00 120,000.00 160,000.00 200,000.00 225,000.00 programs (Number) Action: This indicator has been Revised of which female 0.00 40.00 50.00 50.00 50.00 50.00 (Percentage) of which displaced (Percentage) 0.00 20.00 30.00 30.00 30.00 30.00 Female direct recipients of 0.00 50.00 cash transfers (Percentage) Action: This indicator is New Beneficiaries of Safety net programs affected by COVID- 0.00 7,000.00 14,000.00 21,000.00 27,000.00 30,000.00 19 (Number) Action: This indicator is New of which female 0.00 50.00 (Percentage) Action: This indicator is New Beneficiaries of Safety net programs affected by climate- 0.00 3,000.00 6,000.00 9,000.00 12,000.00 15,000.00 related crises. (Number) Action: This indicator is New of which female (Percentage) 0.00 50.00 Page 39 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Component 1 – Access to basic services and infrastructure Number of people in urban areas provided with access to all-season roads within a 500 0.00 0.00 34,000.00 68,000.00 99,000.00 99,000.00 meter range under the project (Number) of which female (Number) 0.00 0.00 7,000.00 15,000.00 40,000.00 45,000.00 Roads rehabilitated, Non-rural 0.00 1.50 2.00 3.00 4.00 5.00 (Kilometers) Action: This indicator has been Revised Person-days of employment 0.00 44,356.00 50,000.00 60,000.00 70,000.00 80,000.00 created (Number) Action: This indicator has been Revised of which displaced 0.00 30.00 (Percentage) of which female (Percentage) 0.00 20.00 25.00 30.00 30.00 30.00 Page 40 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Component 2 - Safety nets Registry of beneficiaries of No Yes Yes Yes Yes Yes safety nets program (Yes/No) Cash transfer payments received by beneficiaries 0.00 50.00 70.00 90.00 90.00 90.00 within five days of scheduled date (Percentage) Number of households who have benefited from at least 0.00 15,576.00 23,000.00 31,000.00 39,000.00 45,000.00 one cash transfer payment (Number) Action: This indicator is New of which affected by COVID- 0.00 6,000.00 19 (Number) Action: This indicator is New of which affected by climate-related crises 0.00 3,000.00 (Number) Action: This indicator is New Amount of cash transfers made 3,000,000,000.00 4,500,000,000.00 6,000,000,000.00 7,500,000,000.00 8,000,000,000.00 9,000,000,000.00 to households (CFAF) (Number) Action: This indicator is New of which affected by COVID- 0.00 1,200,000,000.00 19 (Number) Page 41 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Action: This indicator is New of which affected by climate-related crises 0.00 600,000,000.00 (Number) Action: This indicator is New Training sessions (accompanying measures/peaceful co- 0.00 433.00 450.00 470.00 490.00 500.00 existence activities) successfully delivered to beneficiaries (Number) Action: This indicator has been Revised Beneficiaries who report accompanying measures/peaceful co- existence activities have 0.00 50.00 600.00 70.00 70.00 70.00 benefitted their community (Percentage) of which women 0.00 30.00 40.00 50.00 50.00 50.00 (Percentage) of which displaced 0.00 20.00 30.00 30.00 30.00 30.00 (Percentage) Beneficiary households reporting to have increased their assets because of the 0.00 60.00 safety nets program (Percentage) Page 42 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Beneficiary households reporting to have better met their consumption need 0.00 60.00 because of the project (Percentage) Social Registry (SR) has been developed and deployed No Yes (Yes/No) Action: This indicator is New Component 3 - Community mobilization, capacity building, technical assistance and project management Participants in consultation activities during project implementation (number) 0.00 2,067.00 2,100.00 2,130.00 2,160.00 2,200.00 (Number) Action: This indicator has been Revised Participants in consultation activities during project 0.00 806.00 830.00 860.00 890.00 900.00 implementation - female (Number) Action: This indicator has been Revised of which displaced 0.00 1,261.00 1,270.00 1,280.00 1,290.00 1,300.00 (Number) Action: This indicator has been Revised Grievances registered related to delivery of project benefits 0.00 50.00 70.00 80.00 80.00 80.00 addressed within the project Page 43 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 GRM timeframe (%) (Percentage) Action: This indicator has been Revised IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children who benefit from an immunization program; MAHRN families that have a new Technical unit, piped water connection). the main MAHRN Technical Unit Please note that this Annually service supported by the main Direct project beneficiaries indicator requires provider, and service provider. supplemental information. other service Supplemental Value: providers Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are Page 44 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) female. This indicator is calculated as a percentage. MASRN Based on the assessment technical unit, and definition of direct MASRN technical unit, main service project beneficiaries, Annually supported by the main Female beneficiaries provider, specify what percentage of service provider. other service the beneficiaries are providers female. Project beneficiaries who are or have been forcibly of which displaced displaced during project activities. MASRN Technical unit, MASRN technical main service unit, local government provider, local People provided with improved urban Corporate Results Indicator Annually agencies, supported by governments, living conditions (CRI) the main service and other provider. service providers of which female Project beneficiaries who are or have been forcibly of which displaced displaced during project activities. This indicator measures the Main service MAHRN Technical unit, Bi- number of individual provider and main service provider Beneficiaries of safety nets programs annually. beneficiaries covered by other service and other service safety nets programs providers. The providers. Page 45 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) supported by the Bank. information Safety nets programs comes from intend to provide social the registry assistance (kind or cash) to the service poor and vulnerable providers put individuals or families, in place in including those to help each cope with consequences of implementing economic or other shock. area. The main service provider aggre gates this information in its M&E system. of which female Project beneficiaries who are or have been forcibly of which displaced displaced during project activities. This indicator measures the Main service number of individual provider and female beneficiaries other service MAHRN Technical unit, covered by safety nets providers. The Bi- main service provider programs supported by the information Female direct recipients of cash transfers annually. and other service Bank. Safety nets programs comes from providers. intend to provide social the registry assistance (kind or cash) to the service poor and vulnerable providers put individuals or families, in place in Page 46 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) including those to help each cope with consequences of implementing economic or other shock. area. The main service provider aggregates this information in its M&E system. Main service provider and other service This indicator measures the providers. The number of individual information beneficiaries affected by comes from COVID-19 covered by the registry safety nets programs the service MAHRN Technical unit, supported by the Bank. providers put Bi- main service provider Beneficiaries of Safety net programs Safety nets programs in place in annually. and other service affected by COVID-19 intend to provide social each providers. assistance (kind or cash) to implementing poor and vulnerable area. The individuals or families, main service including those to help provider aggre cope with consequences of gates this economic or other shock. information in its M&E system. Page 47 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) of which female Main service provider and other service This indicator measures the providers. The number of individual information beneficiaries affected by comes from climate-related crises the registry covered by safety nets the service programs supported by the MAHRN Technical unit, providers put Bank. Safety nets programs Bi- main service provider Beneficiaries of Safety net programs in place in intend to provide social annually. and other service affected by climate-related crises. each assistance (kind or cash) to providers. implementing poor and vulnerable area. The individuals or families, main service including those to help provider aggre cope with consequences of gates this economic or other shock. information in its M&E system. of which female ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Number of people in urban areas All-season road is defined MASRN MASRN Technical unit Annually provided with access to all-season roads as a road that is motorable Technical supported by the main within a 500 meter range under the all year by the prevailing unit and the service provider. Page 48 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) project means of transport (e.g. a main service car, fire truck or ambulance provider. which may not have four- wheel-drive). Predictable interruptions of short duration during inclement weather (e.g. heavy rainfall) are acceptable, particularly on low volume roads. Road access in slums often does not exist and presents additional risks to residents in the case of emergencies as ambulances or fire trucks cannot enter. It also reduces ability for home based income generating activity as it is difficult to bring goods and supplies in and out without road access. Guidance on people with access: The data on the number of people provided with access will come from estimates by TTLs, and can be measured by assessing the kilometers of roads constructed or rehabilitated, and estimates of the population in the project area within a Page 49 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) 500 meter range that will access these roads (based on population density estimates). 500 meters is roughly equivalent to 5-10 minutes walking time. It is expected that the baseline value for this indicator will be zero. MASRN Technical unit MASRN Technical unit, Annually and main supported by the main of which female service service provider. provider. Kilometers of all non-rural roads reopened to motorized traffic, rehabilitated, or upgraded under the project. Non- rural roads are roads MAHRN functionally classified in Technical MAHRN Technical unit various countries as Trunk Annually unit and the supported by the main Roads rehabilitated, Non-rural or Primary, Secondary or main service service provider. Link roads, or sometimes provider. Tertiary roads. Typically, non-rural roads connect urban centers/towns/settlements of more than 5,000 inhabitants to each other or to higher classes of road, Page 50 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) market towns and urban centers. Urban roads are included in non-rural roads. MAHRN Technical MAHRN Technical unit Bi-annually unit and the supported by the main Person-days of employment created main service service provider. provider. MASRN Technical unit, MASRN Technical unit, Annually and main supported by the main of which displaced service service provider. provider. The MASRN Technical unit The MASRN Technical Quarterly and main unit and main service of which female service provider. provider. M&E system of the main This indicator captures the MASRN Technical unit, service availability of the registry main service provider Registry of beneficiaries of safety nets Annually provider of beneficiaries for the and other service program and other cash transfer component of providers service the project. providers Cash transfer payments received by This indicator measures the The indicator MASRN Technical unit Quarterly beneficiaries within five days of scheduled percentage of cash transfer will be and the main service date payments made to generated provider. Page 51 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) beneficiaries within five through the days of the scheduled date. establishment The indicator captures of a delays in payment of cash beneficiaries' transfers to beneficiaries. registry and it's updating with payment information in each implementing area by service providers, and aggregated in the M&E system of the main service provider. Main service provider and other service This indicator measures the providers. The number of households information MAHRN Technical unit, Number of households who have covered by safety nets Bi- comes from main service provider benefited from at least one cash transfer programs supported by the annually. the registry and other service payment Bank who have benefited the service providers. from at least one cash providers put transfer. in place in each implementing area. The Page 52 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) main service provider aggre gates this information in its M&E system. of which affected by COVID-19 of which affected by climate-related crises Main service MAHRN Technical unit, This indicator measures the Bi- provider and main service provider Amount of cash transfers made to amount of cash transfers, annually. other service and other service households (CFAF) in CFAF, that have been providers. providers. made to households. of which affected by COVID-19 of which affected by climate-related crises MAHRN Technical unit, the main MAHRN Technical unit, Training sessions (accompanying Bi-annually service supported by the main measures/peaceful co-existence activities) provider, and service provider. successfully delivered to beneficiaries other service providers. Beneficiaries who report This indicator measures the The MAHRN MAHRN Technical unit, accompanying measures/peaceful co- percentage of participants Bi-annually Technical supported by the main existence activities have benefitted that participate in Unit, the main executing agency their community accompanying service Page 53 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) measures/peaceful co- provider and existence sessions that find other service those sessions useful. providers. Main executing MASRN Technical unit, Bi-annually agency, and supported by the main of which women service executing agency providers MASRN Technical unit, local government MASRN Technical unit, Bi-annually agencies, the supported by the main of which displaced main service service provider. provider, and other service providers. Beneficiary households reporting to have increased their assets because of the safety nets program Beneficiary households reporting to have better met their consumption need because of the project M&E system MAHRN Technical unit, of the main This indicator captures the main service provider Social Registry (SR) has been developed Annually service availability of a Social and other service and deployed provider Registry providers and other service Page 54 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) providers This indicator measures the level of community engagement in project implementation. During the upcoming mission, discussions will be held to MAHRN sensitize/provide guidance Technical unit, to the PACAD team local (MAHRN/UNOPS), and government MAHRN Technical Unit particularly given the Participants in consultation activities Bi-annually agencies, the supported by the main recent recruitment of the during project implementation (number) main service service provider. M&E officer as part of provider, and MAHRN technical unit. other service Emphasis will be placed providers. during the session on the need for effective monitoring, data recording and aggregation, following which the data regarding consultations' participants will be further updated. MAHRN Technical Unit, main MAHRN Technical Unit Participants in consultation activities service Bi-annually supported by the main during project implementation - provider, local service provider. female governments, and other service providers. Page 55 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) MAHRN Technical unit, local government MAHRN Technical unit, Bi-annually agencies, the supported by the main of which displaced main service service provider. provider, and other service providers. This indicator measures the transparency and accountability mechanisms established by the project MAHRN so the target beneficiaries Technical unit, have trust in the process the main MAHRN Technical unit Grievances registered related to delivery and are willing to Annually service supported by the main of project benefits addressed within the participate, and feel that provider and service provider. project GRM timeframe (%) their grievances are other service attended to promptly. It is providers. understood that local sensitivities and tensions will not allow grievance or redress mechanisms to be established in all projects. ME IO Table SPACE Page 56 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacement Project (P174547) Page 57 of 58 The World Bank Additional Financing for COVID-19 Response under the Service Delivery and Support to Communities Affected by Displacem Page 58 of 58