The World Bank Social Safety Net Project (P149323) REPORT NO.: RES48385 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SOCIAL SAFETY NET PROJECT APPROVED ON SEPTEMBER 16, 2015 TO THE REPUBLIC OF MADAGASCAR SOCIAL PROTECTION & JOBS AFRICA EAST Regional Vice President: Hafez M. H. Ghanem Country Director: Zviripayi Idah Pswarayi Riddihough Regional Director: Amit Dar Practice Manager/Manager: Robert S. Chase Task Team Leader(s): John Van Dyck, Julia Rachel Ravelosoa The World Bank Social Safety Net Project (P149323) I. BASIC DATA Product Information Project ID Financing Instrument P149323 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 16-Sep-2015 31-Oct-2024 Organizations Borrower Responsible Agency ONN/PNNC-SEECALINE,Ministry of Population, Social The Republic of Madagascar Protection and Promotion of Women,FID Project Development Objective (PDO) Original PDO The project development objective (PDO) is to support the government in increasing the access of extremely poor households tosafety net services and in laying the foundations for a social protection system. Current PDO To support the Government in increasing the access of extremely poor households to safety net services and in laying the foundations for a social protection system, and accelerating the COVID-19 social protection response. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D7740 19-Feb-2021 10-Mar-2021 23-Mar-2021 31-Oct-2024 150.00 0 147.57 IDA-D4340 01-Mar-2019 26-Mar-2019 24-Jun-2019 31-Mar-2022 90.00 83.46 7.43 IDA-D1450 10-Nov-2016 01-Dec-2016 15-Jan-2017 30-Mar-2022 35.00 34.87 0 The World Bank Social Safety Net Project (P149323) IDA-57080 16-Sep-2015 13-Nov-2015 10-Feb-2016 30-Mar-2022 40.00 39.81 .14 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES 1. On September 6, 2021, the Government of Madagascar requested restructuring of the Madagascar Social Safety Net (SSN) Project (P149323) to reallocate resources between disbursement categories for the extension of unconditional cash transfers in the drought-stricken South of the country. 2. Project status. The initial Madagascar SSN Project (IDA Credit 5708 MG), amounting to Special Drawing Rights (SDR) 33.8 million (US$40 million equivalent), was approved by the Board on September 16, 2015 and has been effective since February 10, 2016. This project was designed to support the Government of Madagascar in “increasing the access of extremely poor households to safety net services and in laying the foundations for a social protection system.” 3. The project received an additional financing (AF) (IDA Grant D1450) on November 10, 2016, for an amount of SDR25.1 million (US$35 million equivalent) to address the urgent need of the poorest population in the south of Madagascar suffering from severe drought. A second AF (IDA Grant D4340) in the amount of SDR 64.8 million (US$90 million equivalent) was approved on March 1, 2019 to ensure continuity of cash transfers to most of the current households and beneficiaries, while improving and expanding the current SSN programs, strengthening crisis response, and continuing work on delivery systems. A third AF (IDA Grant D7740) in the amount of SDR 104.2 million (US$150 million equivalent) was approved on February 19, 2021 to modernize and scale up the social safety net through core programs, while better protecting vulnerable urban populations in the face of the COVID-19 crisis and recurrent climate shocks. 4. Implementation progress to date has been satisfactory. The project is 50 percent disbursed (96 percent disbursed excluding the recently approved third AF). The project is achieving its main indicators, and progress towards achievement of Project Development Objective (PDO) and overall Implementation Progress (IP) are rated satisfactory. The project supports the government’s Human Development Cash Transfer (HDCT) program for families with young children, the Productive Safety Net Program (PSNP) cash for work program, and the Fiavota emergency drought response program in southern Madagascar. To date, approximately 2.5 million individuals have been supported across the three programs (PSNP, HDCT and Fiavota). Of these, over 1.5 million individuals (150,000 beneficiary households) have received regular cash transfers and other support, with women making up 79 percent of cash transfer direct recipients, across nine regions. Targeting has proven effective with 81 percent of beneficiaries belonging to the poorest 30 percent of the population. The programs have a strong emphasis on human capital, women’s empowerment, and productive inclusion. Among other results, the project has increased the share of primary school aged children of HDCT beneficiary families who attend school at least 80 percent of the time to 90 percent, above the target of 80 percent. All three programs’ midline impact evaluation results show tangible positive impacts on beneficiaries. The third AF will extend coverage to 9 additional districts in 5 additional regions, bringing the total The World Bank Social Safety Net Project (P149323) number of beneficiaries to around 4 million people, with an emphasis on those that remain vulnerable to current and future crises in both rural and urban areas, in particular those caused by climate change. 5. The current and prolonged crisis of food insecurity and malnutrition caused by severe drought and amplified by COVID-19, has deepened the poverty and vulnerability of the population in the south of Madagascar. According to the latest Integrated Food Security Phase Classification (IPC) update (July 2021), an estimated 1.3 million people are facing acute food insecurity (IPC Phase 3, or worse) of which 28,000 people living in district classified as IPC are in extremely emergency conditions. The World Bank Group has been quick to respond to the crisis via the project and the Contingency Emergency Response Component (CERC) of the Urban Development and Resilience Project for Greater Antananarivo (PRODUIR). In coordination with other partners, the unconditional cash transfer program ("Toseke Vonje Aigne") has been providing scaled-up emergency income support to 100,000 vulnerable households from January to September 2021 while the lean period will continue until April 2022. The needs of extremely poor people living in these severely drought affected areas will further grow and assistance will be needed for at least six more months. 6. Summary of proposed changes. This restructuring will reallocate project resources among disbursement categories 1 and 2 of IDA Grant D4340 (provided under the second additional financing). The reallocation will make available US$7.262 million under category 1(c) to extend unconditional cash transfers under Toseke Vonje Aigne in the drought-stricken south of the country through May 2022, as well as to cover the current category overdraw of about US$1.223 million. The extension through May 2022 allows support to continue through the end of the agricultural lean season. The reallocation will also permit an increase in the household cash transfer amount from 80,000 MGA (US$20 equivalent) per month to 100,000 MGA (US$25 equivalent) per month. US$277,000 will also be reallocated to category 1(b) for crisis response through infrastructure rehabilitation and cash for work infrastructure. The reallocated resources will be taken from categories 1(a), 1 (d), and 2 covering aspects of the Productive Safety Net Program (PSNP) and the Human Development Cash Transfers (HDCT) program. These programs are expected to remain on track to meet their respective results indicators despite the reduced allocation, since the reallocation affects only the period in which beneficiaries will receive transfers but not the number of beneficiaries. Therefore, no changes to the PDO or the results framework are required. III. DETAILED CHANGES REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Current Current Actuals + Proposed Disbursement % Ln/Cr/TF Expenditure Allocation Committed Allocation (Type Total) Category Current Proposed IDA-D4340- Cash4 WK, Cash 001 4 Trsf PA1, HDCT 36,100,000.00 18,550,344.64 32,959,000.00 100.00 100.00 Currency: PA2 XDR The World Bank Social Safety Net Project (P149323) Csh 4 WK & Infr rehb sub-proj 2,276,000.00 380,911.85 2,470,000.00 100.00 100.00 A3a,b Uncond Csh 10,182,000.00 11,048,360.36 15,272,000.00 100.00 100.00 transfer A3c,i Live Rec SubGrants and 3,000,000.00 1,642,547.86 2,142,000.00 100.00 100.00 CS A2b GD,WK,NCS,CS, OC & TR A3c,ii & 10,742,000.00 5,425,143.87 9,457,000.00 100.00 100.00 B GD,WK,NCS,CS, 2,500,000.00 139,300.95 2,500,000.00 0.00 0.00 OC & TR Pt C Total 64,800,000.00 37,186,609.53 64,800,000.00