The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) Local Governance Support Project - 3 (P159683) SOUTH ASIA | Bangladesh | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 06-Dec-2018 | ISR34866 | Implementing Agencies: Local Government Division, Ministry of Local Government, Rural Development and Cooperatives, Economic Relations Division, Ministry of Finance, Government of the People's Republic of Bangladesh Key Dates Key Project Dates Bank Approval Date: 31-Jan-2017 Effectiveness Date: 29-Mar-2017 Planned Mid Term Review Date: 28-Jun-2019 Actual Mid-Term Review Date: -- Original Closing Date: 31-Dec-2021 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives are to institutionalize the Union Parishad (UP) fiscal transfer system, and introduce a fiscal transfer system for Pourashavas on a pilot basis. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Institutionalization of UP Fiscal Transfers:(Cost $648.20 M) Audits and Performance Assessments, and Management Information Systems:(Cost $5.14 M) Expanded Block Grants to Pilot Pourashavas:(Cost $9.88 M) Capacity Development and Project Implementation Support:(Cost $32.91 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Local Governance Support Project-3 was approved by the Board on January 31, 2017 and declared effective on March 29, 2017. With recent implementation progress, namely i) disbursement to project account of Fiscal Year 2019 Basic Block Grants (BBGs) for UPs and Expanded Block Grants (EBG) for Pourashavas; ii) management Information System (MIS) and Monitoring and Evaluation (M&E) staff in place in the PMU; iii) UP and Pourashava Operational Manuals finalized and adopted, meeting legal covenants; and iv) Steering Committee for Institutionalization of BBGs established in Local Government Department (LGD), project implementation is back on track and Implementation progress is assessed as Moderately Satisfactory. . However, potential risk of achieving the Project Development Objectives (PDO) still remains if LGD is not able to expedite the BBG institutionalization process and meet the timeline of January 1, 2019 set out under the Legal Covenants and agreed to by GoB. Overall 12/6/2018 Page 1 of 7 The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) progress to achieve the PDO will be further assessed at Mid Term Review. LGSP3 PMU is advised to pay close attention to the actions agreed during the Review Mission towards supporting the institutionalization process. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Low Low Low Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability High High High Fiduciary Substantial Substantial Substantial Environment and Social Low Moderate Moderate Stakeholders Low Low Low Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Institutionalization of UP fiscal Transfer system IN00597920 ►Institutionalization of UP fiscal transfer system (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 1. It is in progress and partially completed 2. Draft Action Plan shared with WB Comments: 3. Official Guidelines is under preparation 4. Methodology of fiscal transfer will be part of official guidelines IN00597919 12/6/2018 Page 2 of 7 The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) ►Share of beneficiaries, disaggregated by gender, agreeing that UPs are meeting local priorities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 -- 55.00 70.00 Date 31-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 1. Data collection of beneficiaries, disaggregated by gender is ongoing 2. Draft ToR of Survey firm is underway and will be shared with WB very soon Comments: 3. Survey firm will be procured for assessing local priorities within 20, Jan 2019 IN00598074 Share of beneficiaries, disaggregated by gender, agreeing that UPs are meeting local priorities (Female) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 55.00 -- 55.00 62.00 Date 31-Mar-2016 15-May-2018 15-Nov-2018 31-Dec-2021 IN00598075 Share of beneficiaries, disaggregated by gender, agreeing that UPs are meeting local priorities (Male) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 -- 66.00 70.00 Date 31-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 IN00598061 ►Institutionalization of Annual financial audits and performance assessments for all UPs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 1. In progress 2. The methodology of financial audit and PA will be part of official guidelines Comments: 3. The guidelines will also cover procedure/process of recruitment of auditors Introducing a pilot fiscal transfer system for Pourashavas IN00598071 ►Number of EBG tranches released per year on a transparent and predictable basis to participating Pourashavas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 2.00 Date 31-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 EBG tranches for FY 2017-18 released on 10, June 2018 (2 tranches were combined and disbursed) Comments: Intermediate Results Indicators by Components 12/6/2018 Page 3 of 7 The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) Institutionalization of UP Fiscal Transfers IN00598068 ►The budget line item for BBG allocations reflected in the LGD’s MTBF for fiscal year 2021-2022 onwards (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 The budget line item of BBG for FY 2021-22 and onwards will be reflected in MTBF during preparation of related MTBF during January-June, 2019 Comments: IN00598062 ►UP Wing at LGD administers UP fiscal transfer system (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Mar-2017 15-May-2018 15-Nov-2018 30-Dec-2021 IN00598069 ►BBGs to Eligible UPs disbursed 100% out of GoB budget in accordance with the issued guidelines and/or regulations (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 GoB budget provisions of 100% BBGs for years 4 and 5 have been fully allocated by GoB funds Comments: Audits and Performance Assessments, and Management Information Systems IN00598070 ►UP annual audits and performance assessments managed and carried out by LGD in accordance with the issued guidelines and/or regulations (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes No Yes Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 1. The fees for audit firms and review firms will be paid from fully GoB funded BBGs budgets which Comments: have been transferred to the project account. IN00598067 ►The average performance score of UPs nationwide (Based on 40 point scale) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17.70 -- 21.15 30.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 IN00598063 12/6/2018 Page 4 of 7 The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) ►Annual percentage increase in UP own- source revenues (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 Audit expected to start by Oct, 2018. This data will be included after finishing audit Comments: IN00598065 ►Percentage of UP procurement reported using the procurement MIS system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 Although procurement documentation is on-going and reported, as there is not MIS in place these are not Comments: yet reported via the MIS. IN00598072 ►Percentage of the schemes selected by women annually (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 -- 32.00 38.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 30-Dec-2022 IN00598064 ►Percentage of UPs implementing at least one larger scheme using 25% of their annual BBG allocation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 Data updates are pending UP audits currently being undertaken. Comments: Expanded Block Grants to Pilot Pourashavas IN00598066 ►Annual Pourashava financial audits conducted in participating Pourashavas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 31-Dec-2021 Capacity Development and Project Implementation Support IN00598073 ►Number of new UP functionaries participated core training (cumulative) (Number, Custom) 12/6/2018 Page 5 of 7 The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 10,000.00 50,000.00 Date 01-Mar-2017 15-May-2018 15-Nov-2018 30-Dec-2022 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159683 IDA-59460 Effective USD 300.00 300.00 0.00 173.52 135.16 56% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159683 IDA-59460 Effective 31-Jan-2017 06-Mar-2017 29-Mar-2017 31-Dec-2021 31-Dec-2021 Cumulative Disbursements 12/6/2018 Page 6 of 7 The World Bank Implementation Status & Results Report Local Governance Support Project - 3 (P159683) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/6/2018 Page 7 of 7