The World Bank Report No: ISR7635 Implementation Status & Results Afghanistan National Solidarity Program III (P117103) Public Disclosure Copy Operation Name: National Solidarity Program III (P117103) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 18-Oct-2012 Country: Afghanistan Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Rural Rehabilitation and Development Key Dates Board Approval Date 29-Jun-2010 Original Closing Date 30-Sep-2015 Planned Mid Term Review Date 30-Sep-2012 Last Archived ISR Date 10-Jun-2012 Effectiveness Date 06-Oct-2010 Revised Closing Date 30-Sep-2015 Actual Mid Term Review Date 31-May-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To build, strengthen, and maintain Community Development Councils (CDCs) as effective institutions for local governance and social-economic development. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Capacity Building of CDCs 291.00 Community Grants for Economic and Social Development 1093.00 Project Implementation Support 122.00 Overall Ratings Previous Rating Current Rating Satisfactory Moderately Satisfactory Public Disclosure Copy Progress towards achievement of PDO Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview This Implementation Status Report (ISR) is based on the findings of the last Implementation Support Mission (ISM), which took placefrom June 17 - July 3, 2012. Overall, project implementation slowed down since the last ISM of December 2011. The ISM rated boththe overall project implementation and progress towards achieving its PDO as Moderately Satisfactory - down from the Satisfactoryrating achieved during the ISM of December 2011. This was primarily because NSP did not meet the targets for the: (a) procurementof Facilitating Partners (FPs) contracts for the second phases of roll-out and repeater block grants; (b) development ofstandardized training modules for implementation of the repeater block grants; and (c) procurement of consultants to undertaketransition and sustainability studies. These milestones are critical to the achievement of the project objectives and outcomes.According the Ministry of Rural Rehabilitation and Development (MRRD), the implementation momentum was lost partly because theNational Solidarity Project (NSP) Page 1 of 9 The World Bank Report No: ISR7635 management was preoccupied with the closing of NSP II accounts, and resolving pending ineligibleexpenditures; and partly due to the lack of a Financial Management Agent (FMA) to handle project finances. The action plan forreversing the downward trend to put the project back on track was agreed upon with MRRD/NSP management. Its implementation startedimmediately after the completion of the ISM. The task team is confident that these milestones will be achieved by the next ISM,which is scheduled for early January 2013. Public Disclosure Copy With regards to the procurement of FP contracts, MRRD/NSP should have contracted outsecond phase about 3,067 (Category II) and 5,272 (Category III) roll-out communities, at an estimated total cost ofUS$95.7 million,by May 2012. In addition, MRRD/NSP was to contract out 7,000 communities for second phase repeater block grants,at an estimatedcost of US$84.0 million, by July 2012. But, as of mid-July 2012, only 3,067 (Category II) second phase roll-out communities hadbeen contracted to FPs, while the contracting of 5,272 (Category III) communities was still at the stage of inviting expressions ofinterest. The process of contracting second phase 7,000 repeater block grants had not yet started. During the ISM, it was agreedthat MRRD/NSP would complete the contracting of the FPs for implementing the second phases of roll-out and repeater block grantsfor the remaining communities by December 31, 2012. This is key to ensuring that CDCs are able to complete their sub-projectsbefore the closing of NSP III, so that the project achieves its development objectives. Similarly, the ISM of December 2011, agreedto NSP proposal to develop six standardized training modules in-house with the help of individual consultants: (i) CDCoffice-bearer trainings; (ii) Interim Conflict mitigation/resolution; (iii) NSP community accounting and financial management; (iv)NSP community procurement management; (v) Community participatory monitoring and interim social audit; and (vi) Interim Gendermainstreaming. The development of these critical modules was supposed to be completed by February 29, 2012. In addition, NSP hadagreed to outsource the following training modules: (a) Basic rural appraisal/assessment and community development planningskills/ techniques; (b) Basic project proposal preparation; (c) Basic project implementation and monitoring; (d) Linkages to otherdevelopment and governance actors; and (e) Environmental and Social management. The procurement of consultants to develop thesemodules was expected to be completed by May 30, 2012. The ISM reviewed eight modules developed in- house and found only four of themto be in a usable form, albeit with extensive revisions. The remaining modules were of poor quality, thus needed substantialrevision and/or re- development work. With regards to outsourcing, there had been no progress in the procurement of consultants todevelop the remaining training modules as of end June 2012. Finally, the ISMs of May and December 2011 had recommended that theMRRD/NSP should launch three transition and sustainability studies that are critical for the future design of NSP, particularlywith regards to its management structure, rural infrastructure delivery system, local community institutions, and size of grants.The first study was on community maintenance of assets to fully understand the overall operations and maintenance (O&M)implications of NSP asset creation; and the factors underlying local decisions to maintain certain kinds of infrastructure over others. The second was regarding the transition of CDCs into interim Village Councils (VCs) to understand: (a) how VCs will besustained; (b) the extent to which VCs will take on the administrative responsibilities of government; (c) the precise linkages arebetween VCs and the District; and (d) the level and modality of funding to VCs in the future. The third concerned a transition planfor NSP as a program that clearly articulates a vision for the program post 2014. The Plan was supposed to be in the form ofInstitutional Options study. The following options were to be considered: (i) NSP continues post 2015 with a third round of blockgrants; (ii) the program and its staff are fully integrated into MRRD; (iii) FPs cease to be used as intermediaries and the programis delivered directly by government; (iv) the size of the block grants is reduced; (v) the overall size and scope of the program isreduced and becomes more targeted on particular areas; and (vi) the program transitions to become part of a local governmentframework. These studies were to be ready by March 2013, so that they provide inputs to the Mid-term review (MTR) in May 2013.However, by May 2012, the procurement of these critical transition and sustainability studies had not been initiated by theproject. Notwithstanding the above shortfalls, the project made good progress in the following areas: (i) the accounts of NSPI&II were fully reconciled and successfully closed. Balances from the IDA and ARTF Designated Accounts (DAs) were refunded to theBank; (ii) MRRD/NSP resolved the long standing ineligible expenditures related to the misappropriation of the project funds by theHawalla dealer in Paktika province; (iii) the Bank’s Implementation Completion and Results (ICR) Report rated NSP II implementationas Satisfactory; (iv) MRRD/ NSP signed Memorandum of Understanding with four line ministries for improving designs, technicalquality specifications, and O&M of sub-sectors’ infrastructure sub-projects; (v) NSP made further revisions to its EngineeringManual to make it more user-friendly - so as to help the project improve quality of infrastructure sub-projects for sustainability;and (vi) Public Disclosure Copy NSP had substantially improved its Human Resource (HR) management practice by developing a new human resource managementinformation system (MIS), and filled most of the key Project Management Office (PMO) and Project Management Units (PMUs) positions,which are critical to boosting the program implementation capacity; (vii) the M&E department monitored and regularly reported theproject field activities, by carrying out two Implementation Monitoring (IM), two Post Implementation Monitoring (PIM), and twoCommunity Participatory Monitoring (CPM), and disseminating quality reports to stakeholders – including the Bank, donors and FPs;(viii) the gender working group pro-actively worked on further strengthening gender mainstreaming in the project activities bycompleting the Gender chapter of the Operations Manual Version VI, developing a gender training module, and initiating the processfor establishing a Gender Office; (ix) the public communication department continued to produce communication materials, which wereaired by Radio and TV channels, including the state-run RTA (Radio TV Afghanistan), including 44 b-rolls and two documentaries, twoTV reports and two TV spots in Dari, Pashto and English languages. The cumulative numbers of NSP I & II communities reached22,579, approved sub-projects were about 51,489, of which 47,342 were completed; first block grants disbursed amounted toUS$731,678,774, of which US$676,262,677 were spent; and a total of 20,062 CDCs fully utilized block grants. NSP III continued withthe mobilization and capacity building in 8,010 new roll-out and 5,346 repeater block grants communities. By end of July 2012, FPcontracts worth US$90,868,836 and US$57,013,310 for new roll-out and repeater Page 2 of 9 The World Bank Report No: ISR7635 block grants had been signed. Also, about 6,771Community Development Plans (CDPs) had been prepared; approximately 11,119 sub-projects approved; and 10,826 sub-projects financed.This brought the cumulative number of communities mobilized by NSP to 29,505; sub-projects financed to 62,105; communities thathave received the first block grant to 28,687 (approximately 73 percent) out of the estimated 39,200 communities existing inAfghanistan. By end July 2012, cumulative committed block grants amount to US $1,016,690,379. Out of this, NSP had disbursed aboutUS$974,555,987 in community block grants, of which US$719,960,862 has been spent by the closed sub-projects. Public Disclosure Copy The Japanese SocialDevelopment Fund (JSDF) funded Clustering of the CDCs pilot under NSP was also progressing well. Three FPs had mobilized 67 ClusterCommunityDevelopment Councils (CCDCs); 67 Clusters Community Development Plans (CCDPs) had been prepared; and 69 sub-projectsfinanced in the pilot provinces of Balkh, Bamyan and Nangarhar. A total of US$3.72 million in block grants had been disbursed toCCDCs, and approximately US$3.52 utilized by July 31, 2012. Baseline for impact evaluation of CCDCs had been completed; and draftconcept paper and ToRs for the survey had been prepared. The process of recruiting a consultant/firm to undertake an impactevaluation of the CCDCs begun in July2012. The impact evaluation report for Balkh and Nangarhar provinces is expected to be readyin April 2013. The final report, including Bamyan province would be completed by April 2014. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Minimum of 70% sampled communities Text Value 22,513 CDCs elected. These values will be available 70% recognize CDCs as the legitimate institution when the impact evaluation and respresentative of communities has been completed Date 30-Sep-2011 01-Feb-2012 Comments Actual value achieved on This PDO indicator shows the completion of NSPII impact of NSPIII and will be measured using the Post Implementation Monitoring tool after full utilization of the CDCs block grant as well as from the Impact Evaluation to be conducted in NSP III Minimum of 60% of CDCs perform their Text Value 0 These values will be available 60% Public Disclosure Copy functional mandates in the areas of community when the impact evaluation development and coordination, project has been completed. implementation and conflict resolution Date 10-Jun-2010 01-Feb-2012 Comments To be determined using the This PDO indicator shows the CDC Maturity Assessment impact of NSPIII and will be form measured using the Post Implementation Monitoring tool after full utilization of the CDCs block grant as well as Page 3 of 9 The World Bank Report No: ISR7635 from the Impact Evaluation to be conducted in NSP III Minimum of 70% of sampled communities have Text Value Of the existing 17,400 CDCs, These values will be available 70% improved access to services. approx.34,800 subprojects when the impact evaluation Public Disclosure Copy have been completed. has been completed For new CDCs the baseline is 0. Date 10-Jun-2010 01-Feb-2012 Comments This PDO indicator shows the impact of NSPIII and will be measured using the Post Implementation Monitoring tool after full utilization of the CDCs block grant as well as from the Impact Evaluation to be conducted in NSP III Minimum of 70% of sampled communities have Text Value Of the existing 17,400 CDCs, These values will be available improved access to services. approx.34,800 subprojects when the impact evaluation have been completed. has been completed For new CDCs the baseline is 0. Date 10-Jun-2010 01-Feb-2012 Comments Minimum of 70% of sampled women Text Value 35% These values will be available 70% representatives in the CDCs take active part in when the impact evaluation decision-making related to community has been completed. development Date 30-Sep-2011 01-Feb-2012 Comments Actual value achieved on This PDO indicator shows the completion of NSPII impact of NSPIII and will be measured using the Post Public Disclosure Copy Implementation Monitoring tool after full utilization of the CDCs block grant as well as from the Impact Evaluation to be conducted in NSP III Page 4 of 9 The World Bank Report No: ISR7635 At least 50% of total beneficiaries are female Text Value 19 million from NSP I & II 25 Million (2003-2010) Date 10-Jun-2010 01-Feb-2012 Public Disclosure Copy Comments These values will be available when the impact evaluation has been completed. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Minimum of 60% of eligible CDCs have Text Value 0 Out of total number of CDCs 60% Community Participatory Monitoring teams established in NSP III, 85% of functioning CDCs have community participatory monitoring teams Date 10-Jun-2010 01-Feb-2012 Comments 35% of CDC members nationally are women Text Value 38% under NSP I and II 34% of women are CDC 38% members Date 10-Jun-2010 01-Feb-2012 Comments Minimum of 30% of sampled CDCs attempt to Text Value No information reported on • According to PIM 30% form linkages with government and non- this baseline indicator yet. from the sampled government actors. communities, 70% of CDCs have made attempt to contact government and non government authoritieswith regards to development activities Date 01-Feb-2012 Comments 500 randomly selected CDCs The Maturity Assessment formed the baseline survey will collect and report Public Disclosure Copy on the number of successful linkages made. 90% of CDCs have been trained on core and Text Value Under NSP I&II, 22,000 CDCs 82% of sampled CDCs 90% second phase training topics were trained in core topics. trained as per NSP OM For new and 2nd phase requirements by FP training the baseline is 0 Date 10-Jun-2010 01-Feb-2012 Comments Page 5 of 9 The World Bank Report No: ISR7635 Minimum of 80% of CDCs have new elections Text Value 22,513 CDCs elected through From the sampled 80% for leadership through democratice election democrative processes communities, 78% of CDCs and secret ballot at the appropriate time. participated in mobilization and pre-CDC election; Public Disclosure Copy 96.7% of mobilized communities conducted CDC elections as per mandated prodedures Date 30-Sep-2011 01-Feb-2012 Comments Actual value achieved on completion of NSPII Min. of 80% of new CDCs complete their CDPs Text Value 0 98% of new CDCs completed 80% according to NSp principles and operational their community development guidelines. plan according to NSP principles Date 01-Feb-2012 Comments At least one subproject completed by 80% of Text Value 0 16% of new CDCs 80% new CDCs. successfully completed at least one sub project Date 10-Jun-2010 01-Feb-2012 Comments The majority of sub-projects are expected to be completed in the third year of the project and onwards Min. of 70% of sampled infrastructure Text Value 0 Facilitation of repeater block 70% subprojects in new communities are functional grants has not yet started and used by communities one year after Date 01-Feb-2012 completion Comments Of the eligible CDCs, min. of 70% of CDPs Text Value 22,456 CDPs developed Facilitation of repeater block 70% Public Disclosure Copy revised and completed grants has not yet started Date 30-Sep-2011 01-Feb-2012 Comments Actual value achieved on completion of NSPII At least one subproject completed by 70% of Text Value 0 Facilitation of repeater block 70% eligible CDCs with repeater block grant grants has not yet started Date 10-Jun-2010 01-Feb-2012 Comments Page 6 of 9 The World Bank Report No: ISR7635 Min. of 75% of sampled infrastructure Text Value For NSP I & II 85% of Facilitation of repeater block 75% subprojects with repeater BG are functional sampled sub-projects were grants has not yet started. and used by communities one year after functional and used. The Post Implementation completion Monitoring has recently Public Disclosure Copy begun. Date 10-Jun-2010 01-Feb-2012 Comments Min. of 70% of sampeld CDCs conduct social Text Value Social audit meetings were 70% audit meetings added as an enhanced feature of NSP III, therefore baseline value is 0 Date 10-Jun-2010 01-Feb-2012 Comments 70% of sampled communities satisfied with FP Text Value 0 87% of sampled CDCs 70% performance monitored by IM officers are satisfied with performance of FPs in their communities Date 10-Jun-2010 01-Feb-2012 Comments The impact evaluation report, Implementation Monitoring and Post Imp. Monitoring reports will establish satisfaction with FP performance. 80% of complaints processed by NSP using Text Value System was not developed at 80% agreed service standards time of baseline data collection Date 01-Feb-2012 Comments One annual NSP progress report produced Text Value No annual reports Quarterly and annual reports 1 are produced regularly Public Disclosure Copy Date 10-Jun-2010 01-Feb-2012 Comments 90% of FP invoices paid in accordance with Text Value 75% Values for this indicator were 90% contractual timetable not collected Date 10-Jun-2010 01-Feb-2012 Comments Data on Financial Performance (as of 05-Sep-2012) Page 7 of 9 The World Bank Report No: ISR7635 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117103 IDA-H6030 Effective 29-Jun-2010 10-Aug-2010 06-Oct-2010 30-Sep-2015 30-Sep-2015 Public Disclosure Copy P117103 TF-98459 Effective 24-Jan-2011 24-Jan-2011 24-Jan-2011 30-Sep-2015 30-Sep-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117103 IDA-H6030 Effective USD 40.00 40.00 0.00 22.47 19.17 56.00 P117103 TF-98459 Effective USD 250.00 500.00 0.00 241.86 258.14 48.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation To bring the project implementation performance back to full Satisfactory, MRRD/NSP management need pay attention to the following most critical agreed actions: (i) Completing the contracting of the FPs for implementing the second phases of roll-out and repeater block grants for the remaining communities by December 31, 2012; (ii) Completing preparation and/or revision of eight standardized mandatory training modules for enhancing implementation capacity of the CDCs by December 31, 2012, and procurement of consulting firms to prepare the remaining four training modules by October 31, 2012, so that modules are ready for use by March 31, 2012; (iii) Collaborating with consulting firms contracted by the Bank to prepare three transition and sustainability studies (O&M of sub-projects, transition of CDCs into VCs, and linkages of VCs to sub-national governance), and an institutional options study of NSP beyond the 2014, as inputs to the mid-term review of NSP III, by March 31, 2013; and (iv) Finalizing the contract of the NSP’s Financial Management Agent (FMA); and facilitating the opening of the block grants and operations float accounts to be managed by the FMA by August 15, 2012. Page 8 of 9 The World Bank Report No: ISR7635 Restructuring History There has been no restructuring to date. Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 9 of 9