The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) REPORT NO.: RES40485 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF EMPLOYMENT OPPORTUNITIES FOR VULNERABLE YOUTH PROJECT APPROVED ON MARCH 21, 2017 TO REPUBLIC OF TOGO SOCIAL PROTECTION & JOBS AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Coralie Gevers Regional Director: Amit Dar Practice Manager: Jehan Arulpragasam Task Team Leader: Friederike Uta Rother, Gbetoho Joachim Boko The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) ABBREVIATIONS AND ACRONYMS AGR Activité Génératrice de Revenus/Income Generating Activities ANADEB Agence Nationale d'Appui au Développement à la Base ANPE National Employment Promotion Agency ANVT Agence National du Volontariat du Togo CPF Country Partnership Framework ESMF Environmental and social Management Framework FAIEJ Fonds d’Appui aux Initiatives Économiques des Jeunes FM Financial Management FODA Formation en Développement d‘Affaires GMT Grassroots Management Training GoT Government of Togo IDA International Development Association M&E Monitoring and Evaluation MDBAJEJ The Ministry of Community Development, Artisanship, Youth, and Youth Employment PIM Project Implementation Manual PIU Project Implementation Unit PMT Proxy-Means Test WB The World Bank WINGS Women’s Income Generation Support YOP Youth Opportunity Project The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P157036 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 21-Mar-2017 31-Dec-2020 Organizations Borrower Responsible Agency Agence Nationale d’Appui au Développement à la Base Republic of Togo (ANADEB) Project Development Objective (PDO) Original PDO The objective of the proposed project is to provide access to income generating opportunities to targeted poor and vulnerable youth in Togo. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D1730 21-Mar-2017 05-Apr-2017 30-Nov-2017 31-Dec-2020 15.00 7.98 7.44 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status The Employment Opportunities for Vulnerable Youth Project (USD 15 million IDA grant) was signed on April 5th, 2017 and became effective on November 30, 2017. The project mid-term review (MTR) was completed on October 4th, 2019. The Project is 49 percent disbursed by mid-February 2020. Progress towards achievement of the Project Development Objective (PDO) and Project Implementation Progress (IP) are rated moderately satisfactory, given the level of achievement of project objectives and the time left till the initially planned closing date. The Project is a Category B project and the overall safeguards rating is moderately satisfactory, with the project risk level set at moderate. After some delays encountered during the first 12 months of project implementation, all components of the project are now running well. Project status by component is described in detail below. Component 1: Community Services and Training The objective of this component is to provide community service opportunities, as well as temporary employment opportunities to targeted poor and vulnerable youth, while equipping these youth with the life skills and micro entrepreneurship skills they need to develop sustainable income generating activities. The geographic targeting of Project sites has been finalized, with the selection of 200 villages benefiting from the Project interventions and an additional 174 communities on the waiting list. As of mid-February, this component covers 88 villages of the poorest communities of the country for its first phase of implementation serving 6,250 young people in the age bracket 18 to 40 years old. This represents an overall coverage of around 48 percent of the end target of 14,000 beneficiaries. 58 percent of beneficiaries are women. Of the 6,250 beneficiaries 6,151 have successfully completed their community service and participated in the on-the-job training and life skills, as well as the micro-entrepreneurial skills training. The second phase of implementation started early January 2020 and covers 112 communities. Component 2: Support for Income Generating Activities This component supports income generating activities (AGR) for 10,000 beneficiaries through the provision of a modest matching-grant to complement savings they would have generated from their earnings under Component 1. Under Component 2, 4,261 business plans have been submitted for final validation. The first cohort of contracts of beneficiaries launching businesses or income generating activities with a matching grant have been signed and coaching and mentoring activities are ongoing. A mobile payment system was developed and launched under this component to monitor savings and payments and lower transaction costs. Component 3: Capacity building The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) The project uses the community-driven development approach whereby beneficiary communities are capacitated through the Grassroots Management Training (GMT) modules to identify and implement labor- intensive public works community service subprojects. By mid-February 2020, 60 percent of beneficiary communities have received at least three GMT-training modules. The 88 Communities of the first phase of implementation have completed the eight GMT modules, including the modules on “Financial Management”, “Servicing” and “Maintenance of Community Infrastructure”. Currently, more than 20,000 community members across the 200 targeted communities have received the GMT training. Component 4: Project Management In accordance with the project design, ANADEB (Agence Nationale d'Appui à la Base/National Community Support Agency/ the Implementing Agency) set up the Project implementation unit, led by a Project Coordinator with full project management responsibilities. This arrangement improved the pace of implementation of project activities and delivery of expected results. Capacity building of the PIU-staff (including on M&E, procurement, safeguards, and mobile payment mechanisms) throughout project implementation has also led to improved acceleration in implementation. Additional funding was secured to deliver a value chain analysis for productive inclusion of young people to inform current and future operation and policy in Togo in the area of youth employment. First results of the mapping for potential value chains has been completed and presented to a larger audience of stakeholders (including relevant Ministries, donors, academia, and the private sector) and all partners of the Project in October 2019. The results of the study inform on a rolling base component 1 and 2 of the Project. Final results are planned to inform future operation in the area of inclusive job creation. The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) B. Rationale for restructuring This restructuring was requested by the Government in a letter dated September 12, 2019 outlining two main justifications. Even though all project activities are now on track, delays encountered at the beginning of the project are unlikely to be made up and consequently, additional time is needed to achieve project objectives and results. Specifically, and in order to consolidate and sustain the support provided to beneficiary youth through Components 1 and 2, additional time is needed to complete coaching and mentoring activities, especially for beneficiaries of phase 2 of Component 2. Coaching and mentoring during the first 6-12 months of launching a business is essential to ensure the sustainability of income generating activities for youth, as they help provide timely responses to challenges faced by youth during their experience as new micro-entrepreneurs. It has been agreed during project MTR that an additional 12 months would be sufficient to complete the six-month coaching and mentoring activities for the second cohort of youth and ensure the sustainability element of this intervention related to job creation. In addition, a restructuring is needed to reflect on the introduction of two new secondary intermediary indicators. These indicators will help improve the responsiveness of the project grievances and complaints filled by project beneficiaries, and particularly those coming from female beneficiaries. II. DESCRIPTION OF PROPOSED CHANGES Two levels of changes are proposed for this restructuring: (i) Adjustments to the results framework, especially with results indicators in Component 1 of the Project (ii) An extension of the Project Closing Date by 12 months. Consequently, project end targets will be set to December 31, 2021. A. Adjustment of the results framework During Project MTR, it has been agreed that one indicator will be revised for more clarity while two new secondary indicators will be included to better monitor and evaluate grievances and redresses during project implementation. As such, the indicator “Beneficiaries of components 1 and 2 under the national poverty line, living with a disability, or not having finished primary school “ will be modified as follows: “Beneficiaries of components 1 and 2 living with a disability, or not having finished primary school - living in the poorest 150 cantons targeted in Togo (Percentage)” The following two new intermediary indicators have been introduced: Indicator Baseline End target (2021) Intermediate Results Indicators Grievances treated according to the GRM manual (Percentage) 0 80 Grievances submitted by women and treated (Percentage) 0 80 B. Extension of Project Closing Date The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) In order to provide the follow support needed by the project’s young beneficiaries to sustain their income generating activities, it has been agreed at Project MTR that a 12-month extension to the project closing date will be needed. As such, the new proposed Project Closing date is set to December 31, 2021. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ DLIs ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D1730 Effective 31-Dec-2020 31-Dec-2021 30-Apr-2022 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 0.00 0.00 2018 2,000,000.04 750,000.00 2019 5,000,000.04 1,800,000.00 2020 5,000,000.04 6,000,000.00 2021 3,000,000.00 4,500,000.00 2022 0.00 1,950,000.00 2023 0.00 0.00 2024 0.00 0.00 2025 0.00 0.00 2026 0.00 0.00 . The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) . Results framework COUNTRY: Togo Employment Opportunities for Vulnerable Youth Project Project Development Objectives(s) The objective of the proposed project is to provide access to income generating opportunities to targeted poor and vulnerable youth in Togo. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target To provide access to income generating opportunities to targeted poor and vulnerable youth in Togo Direct project beneficiaries (Number) 0.00 14,000.00 Action: This indicator has been Revised Female beneficiaries (Percentage) 0.00 50.00 Action: This indicator has been Revised Number of person-days of participation in community service 0.00 1,120,000.00 subprojects (Number) Action: This indicator has been Revised Targeted youth initiating or expanding household enterprises 0.00 10,000.00 with support from the project (Number) Action: This indicator has been Revised Beneficiaries of components 1 and 2 living with a disability, or not having finished primary school - living in the poorest 150 0.00 90.00 cantons targeted in Togo (Percentage) Action: This indicator has been Revised The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Beneficiaries that feel project investments reflected their needs 0.00 80.00 (percentage) (Percentage) Action: This indicator has been Revised Beneficiaries that feel project inv. reflected their needs - 0.00 80.00 female (percentage) (Percentage) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Community Service and Training Community service sub-projects with satisfactory technical 0.00 80.00 quality (Percentage) Action: This indicator has been Revised Proportion of total cost of community service sub-projects 0.00 60.00 allocated to wages (Percentage) Action: This indicator has been Revised Payments to beneficiaries under component 1 made within one week of due dates specified in Project Implementation Manual 0.00 80.00 (Percentage) Action: This indicator has been Revised Beneficiaries of Labor Market programs (number) (Number) 0.00 14,000.00 Action: This indicator has been Revised The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Beneficiaries of Labor Market programs - Supporting 0.00 10,000.00 entrepreneurship (number) (Number) Action: This indicator has been Revised Beneficiaries of Labor Market programs - Female (number) 0.00 7,000.00 (Number) Action: This indicator has been Revised Beneficiaries of Labor Market programs - Training and re- 0.00 14,000.00 training (number) (Number) Action: This indicator has been Revised Number of youth preparing simple business plans (Number) 0.00 12,500.00 Action: This indicator has been Revised Youth completing community service activity and micro- 0.00 12,500.00 entrepreneurship training (Number) Action: This indicator has been Revised Support for Income Generating Activities Number of youth receiving start up grants (Number) 0.00 10,000.00 Action: This indicator has been Revised Beneficiaries who are employed or self-employed 6 motnhs after 0.00 60.00 receiving the start-up grant (Percentage) Action: This indicator has been Revised Capacity Building Communities receiving Grassroots Management Training (GMT) 0.00 140.00 to manage community service sub-projects (Number) Action: This indicator has been Revised The World Bank Employment Opportunities for Vulnerable Youth Project (P157036) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Project Management Grievance redress mechanism functional (Yes/No) No Yes Action: This indicator has been Revised Grievances treated according to the GRM manual (Percentage) 0.00 80.00 Action: This indicator is New Grievances submitted by women and treated (Percentage) 0.00 80.00 Action: This indicator is New IO Table SPACE The World Bank Employment Opportunities for Vulnerable Youth Project (P157036)