The World Bank Cash Transfer Modernization Project (P160819) REPORT NO.: RES43153 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CASH TRANSFER MODERNIZATION PROJECT APPROVED ON JANUARY 31, 2018 TO PEOPLE'S REPUBLIC OF BANGLADESH SOCIAL PROTECTION & JOBS SOUTH ASIA Regional Vice President: Hartwig Schafer Country Director: Mercy Miyang Tembon Regional Director: Lynne D. Sherburne-Benz Practice Manager/Manager: Stefano Paternostro Task Team Leader(s): Ashiq Aziz, Kenichi Victor Nishikawa Chavez The World Bank Cash Transfer Modernization Project (P160819) ABBREVIATIONS AND ACRONYMS AFD: Agence Française de Développement CERC: Contingent Emergency Response Component CEROM: Contingent Emergency Response Operations Manual COVID-19: Coronavirus Disease 2019 DFIL: Disbursement and Financial Information Letter DSS: Department of Social Services DLI: Disbursement-Linked Indicator EEP: Eligible Expenditure Program EUR: Euro G2P: Government-to-Person IUFR: Interim Unaudited Financial Report MoSW: Ministry of Social Welfare NSSS: National Social Security Strategy PDO: Project Development Objective SDR: Special Drawing Rights US$: United States Dollar The World Bank Cash Transfer Modernization Project (P160819) BASIC DATA Product Information Project ID Financing Instrument P160819 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 31-Jan-2018 30-Jun-2023 Organizations Borrower Responsible Agency People's Republic of Bangladesh Department of Social Services,Ministry of Social Welfare Project Development Objective (PDO) Original PDO The Project Development Objective is to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations by modernizing service delivery. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-61630 31-Jan-2018 28-Oct-2018 02-Dec-2018 30-Jun-2023 300.00 189.47 111.91 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Cash Transfer Modernization Project (P160819) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Cash Transfer Modernization Project aims to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations.1 Institutional reforms towards this end have been undertaken by the Ministry of Social Welfare (MoSW), and the Department of Social Services (DSS), in line with the National Social Security Strategy (NSSS), 2015. The Project incorporates a results-based financing modality which co-finances Government expenditures on selected cash transfers against expected results under Component 1. It also provides technical assistance in modernizing service delivery under Component 2, which supports the achievement of expected results. Furthermore, as of June 2020, the Project includes the capacity for contingent emergency response under Component 3. 2. The Project is in its third year of implementation (FY 2021) and currently making reasonable progress. Progress towards the Project Development Objective (PDO) achievement is rated “Satisfactory” and Implementation Progress is rated “Moderately Satisfactory”.2 The Project has disbursed US$ 189.47 million to date, including US$ 165.84 million under its Contingent Emergency Response Component (CERC) to support the Government of Bangladesh with its social protection measures in tackling the coronavirus disease (COVID-19) crisis. Eight of the ten Disbursement-Linked Indicator (DLI) Targets due in FY 2019 and FY 2020 have been met as of September 30, 2020 (allocated amounts of two DLI Targets have been withdrawn). 3. The Project supports the modernization of five major aspects of cash transfer programs: (i) data digitization and capacity, (ii) targeting, (iii) application, (iv) payment, and (v) grievance redress. Several operational changes, supported by the Project, have already been made to the programs and are in the process of being formally incorporated in the Implementation Guidelines (2013) to become mainstreamed as program policy. Major forthcoming policy adjustments include protocols on program operation in response to shocks, and the use of national systems for targeting and payment. 4. On July 27, 2020, Government of Bangladesh requested the activation of the Project’s CERC. CERC activities entailed the partial reimbursement of cash transfer programs addressing vulnerable populations for the period March 25 to June 30, 2020, during which time DSS made efforts to disburse beneficiary entitlements as early as possible to enable households to cope with income losses and price shocks. The Bank authorized CERC activation on July 30, 2020, and the total amount diverted internally to the CERC was disbursed to the Government’s Consolidated Fund. The Old Age Allowance, Widow Allowance and Disability Allowance which provided approximately US$309 million to poor households during the stated period, thus benefitted from the Bank’s contribution which represented a 53.70% share of this continued social assistance during a period of severe health and economic hardships. 5. The request for CERC mobilization was based on the availability of a credit from the Agence Française de Développement (AFD) which had held consultations with both Government and the Bank from the initial period of the COVID-19 crisis, and expressed interest in supporting safety net programs addressing the poorest households in the country. The intent to co-finance the Project was conveyed to Government on April 30, 2020. On July 9, 2020, the AFD Board of Directors approved a credit of EUR 150 million as co-financing to the Project to contribute to the financing of 1 These cash transfer programs are (i) Old Age Allowance, (ii) Allowances for the Widow, Deserted and Destitute Women (alternately Widow Allowance), Allowances for the Financially Insolvent Disabled (alternately Disability Allowance), Stipend for Disabled Students (alternately Disabled Students' Stipend). 2 Implementation Status and Results Report, October 5, 2020, World Bank. The World Bank Cash Transfer Modernization Project (P160819) the Old Age Allowance as well as the service delivery modernization initiatives. These efforts will help build the Government’s adaptive capacity to respond to shocks and in turn help build resilience among vulnerable populations. B. Rationale for Restructuring 6. The Government of Bangladesh has prioritized safety net coverage to protect the extreme poor and low paid workers in the informal sector, among its four strategies to address the economic impacts of the COVID-19 crisis.3 Accordingly, there has been an increase in the FY 2021 national budget for the DSS cash transfer programs, with a particular focus on the hundred poorest upazilas (sub-districts). Component 1 of the Project partially finances the Old Age Allowance – one of the largest safety net programs in the country in terms of both budget and beneficiary coverage – against the achievement of DLI Targets which are also essential for the achievement of the PDO. 7. The activation of the CERC has created a financing gap of approximately US$ 165.84 million in Component 1 from which financing was reallocated to Component 3 for emergency expenditures. Therefore, the restructuring would serve to (i) document the usage of the CERC, and (ii) incorporate the AFD co-financing to replenish the financing gap. With the incorporation of the co-financing, subsequent withdrawals under Component 1 would be made from both the Bank and AFD credits. II. DESCRIPTION OF PROPOSED CHANGES 8. Since the restructuring does not entail new activities, the economic and financial, technical, social and environmental analyses remain unchanged. Changes to the Project as a result of the restructuring will cover the (i) results framework, (ii) DLIs (alternately referred to as performance-based conditions (PBCs), (iii) components and cost, (iv) disbursement categories (reallocation), (v) disbursements arrangements, (vi) disbursement estimates, (vii) implementation schedule, as well as (viii) other changes (co-financing inclusion). 9. Results Framework: A new intermediate result indicator “beneficiaries receiving cash transfers under CERC” is being added to document the output of the CERC. 4.36 million beneficiaries of the Old Age Allowance, Widow Allowance and Disability Allowance received benefits under the CERC. This actual achievement is as of June 30, 2020, only. 10. Performance-Based Conditions (Disbursement-Linked Indicators): PBCs/DLIs will remain unchanged as will their incremental targets over the course of the Project. The allocated amounts, however, are being adjusted due to the reallocation from Component 1 to Component 3. Since the reallocation utilized around two-thirds of the undisbursed Component 1 financing, the amount allocated to each outstanding DLI Target is being reduced by the same proportion. 11. Components and Cost: The costs for Components 1 and 3 are being changed as a result of the US$ 165.84 million reallocation between the Components. 12. Reallocation between Disbursement Categories: Components 1 and 3 correspond to Categories 1 and 3 respectively. Accordingly, SDR 117.79 million is being reallocated between the Components. 13. Disbursements Arrangements: The reduction of the Bank’s contribution to Component 1 (the eligible expenditure program (EEP)) due to the reallocation to Component 3 (the CERC) for emergency expenditures will result in the adjustment of the percentage of expenditures to be financed under Category 1. 3 Budget Speech 2020-21: Economic Transition and Pathway to Progress; Ministry of Finance (June 11, 2020). The World Bank Cash Transfer Modernization Project (P160819) (a) The CERC (Component/Category 3) provided a reimbursement of 53.70% of expenditures made under Old Age Allowance, Widow Allowance and Disability Allowance only for the period from March 25 to June 30, 2020. This Component/Category would continue to finance up to 100.00% of emergency expenditures in case of future use of the CERC in accordance with the Project’s Contingent Emergency Response Operations Manual (CEROM). As the Old Age Allowance is the EEP under Component/Category 1, the cumulative amount eligible for Bank financing under this Component/Category will cover the period from January 1, 2018, to the Project closing date, minus the portion of the Old Age Allowance financed under the CERC during the period from March 25 to June 30, 2020 (specifically, eligible expenditures for the period from the date of countersignature of the Amendment to the Financing Agreement would be based on a financing percentage). There is thus a segregation between Categories 1 and 3 with no risk of erroneous duplicate reporting or withdrawal. (b) The financing percentage applicable to the EEP (Component/Category 1) would be 15.00% from the date of countersignature of the Amendment to the Financing Agreement, reflecting the reduction in the Component/Category cost. AFD’s co-financing represents 22.00% in terms of the overall contribution of Component/Category 1 to the EEP. Interim unaudited financial reports (IUFR) would track expenditures financed by both the Bank and AFD. Withdrawal applications would be submitted as per the Disbursement and Financial Information Letter (DFIL). AFD co-financing would be subject to the same scalability provisions as the Bank financing, and similarly, AFD’s disbursements would be based on the lesser of (i) allocated amounts being claimed for DLI Target achievement, or (ii) proportion of the EEP which is considered eligible for financing. Fund flow, financial reporting and auditing arrangements remain unchanged. 14. Disbursement Estimates: Disbursement estimates are being revised to reflect actual progress till date and expected flow of funds going forward. This is primarily based on the disbursement under the CERC which has utilized over half of the Project’s cost by the beginning of the third year of implementation. In turn, this requires the adjustment of amounts allocated to DLI Targets which have not been met till and/or been drawn on. 15. Implementation Schedule: Although the cumulative disbursement amount is ahead of the Project’s original disbursement estimate, this achievement is due to the full utilization of the CERC financing. Withdrawal of amounts allocated to DLI Targets, however, are marginally behind schedule. Several activities are being expedited to bring actual achievement and subsequent withdrawal in line with the expected timeline provided in the DLI Framework. No targets are thus being changed in the results framework. However, the reallocation between Components 1 and 3 and the pace of implementation will result in a change in the schedule and thus the change in disbursement estimates. 16. Other Change(s): Component 1 of the Project would be funded by both the Bank and AFD under a Co-financing Agreement, as per the terms of the Bank and AFD’s Co-Financing Framework Agreement of June 13, 2018. Out of the thirty-one DLI Targets of which the associated allocated amounts have not been withdrawn, AFD will contribute EUR 150 million. As the lead financier, the Bank will provide (i) technical services, (ii) financial management services, (iii) disbursement services, and (iv) environmental and social services, to ensure fund flow from both IDA and AFD sources as DLI Targets are achieved. The World Bank Cash Transfer Modernization Project (P160819) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ PBCs ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Other Change(s) ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank Cash Transfer Modernization Project (P160819) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Enhancement of Cash Transfer Enhancement of Cash Transfer 270.00 Revised 104.16 Programs Programs Modernization of Service Modernization of Service 30.00 No Change 30.00 Delivery Delivery Contingent Emergency Contingent Emergency Response 0.00 Revised 165.84 Response TOTAL 300.00 300.00 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-61630-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Eligible Expenditure Program (Part 1) 192,200,000.00 15,628,344.75 74,411,915.00 30.00 15 Current Expenditure Category: Goods (ex. vehicles), works, non-consulting iLap Category Sequence No: 2 services, consulting services, service fees, training, OC (Part 2) 21,400,000.00 97,268.71 21,400,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Emergency Expenditures (Part 3) 0.00 117,788,084.86 117,788,085.00 100.00 100.00 Total 213,600,000.00 133,513,698.32 213,600,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes The World Bank Cash Transfer Modernization Project (P160819) Year Current Proposed 2018 1,000,000.00 0.00 2019 26,000,000.00 21,700,000.00 2020 28,000,000.00 1,770,000.00 2021 61,000,000.00 198,500,000.00 2022 73,000,000.00 35,000,000.00 2023 51,000,000.00 21,000,000.00 2024 60,000,000.00 22,000,000.00 . The World Bank Cash Transfer Modernization Project (P160819) . Results framework COUNTRY: Bangladesh Cash Transfer Modernization Project Project Development Objectives(s) The Project Development Objective is to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations by modernizing service delivery. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Improved Transparency and Efficiency P.01. Beneficiaries of cash transfer programs in lowest PBC 1, 51% 58% 65% 72% 80% two quintiles based on poverty 1 score (Text) Female (%) (Text) Not available 80% P.02. Vulnerable persons in lowest two quintiles based on 40% 45% 50% 55% 60% poverty score covered by cash transfer programs (Text) Female (%) (Text) Not available 60% P.03. Cash transfer program PBC 2, budget delivered using digital BDT 0.25 billion BDT 1.50 billion BDT 5.00 billion BDT 12.00 billion BDT 20.00 billion 2 payment (Text) Female (BDT) (Text) BDT 0.14 billion BDT 12.00 billion The World Bank Cash Transfer Modernization Project (P160819) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 P.04. Cash withdrawal time taken using digital payment 230.00 210.00 190.00 170.00 150.00 (Minutes) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Modernization of Service Delivery I.01. Beneficiary records PBC 3, digitized and poverty certified 0.00 4,000,000.00 5,500,000.00 2,000,000.00 4,000,000.00 6,000,000.00 3 (Number) Female (number) (Number) 0.00 3,600,000.00 I.02. Beneficiaries enrolled for PBC 4, 39,008.00 150,000.00 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 digital payment (Number) 4 Female (number) (Number) 22,384.00 700,000.00 I.03. Access points for PBC 5, applications and grievances 0.00 100.00 1,125.00 2,250.00 3,375.00 4,500.00 5 (Number) I.04. Access points for digital PBC 6, 58.00 150.00 500.00 1,000.00 1,500.00 2,000.00 payments (Number) 6 I.05. Unions using poverty PBC 7, score for beneficiary selection 0.00 0.00 450.00 900.00 1,350.00 2,250.00 7 (Number) The World Bank Cash Transfer Modernization Project (P160819) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 I.06. Unions with personnel PBC 8, trained on business processes 0.00 500.00 1,125.00 2,250.00 3,375.00 4,500.00 8 (Number) I.07. Enrollment decisions made within service standard Not available 35% 50% 65% 80% (Text) I.08. Grievances resolved Not available 35% 50% 65% 80% within service standard (Text) I.09. Community awareness of application and selection Not available 50% 60% 70% 80% process (Text) Female (%) (Text) Not available 80% I.10. Beneficiaries satisfied Not available 50% 60% 70% 80% with service delivery (Text) Female (%) (Text) Not available 80% Contingent Emergency Response (Action: This Component is New) I.11. Beneficiaries receiving cash transfers under CERC Not applicable 4.36 million beneficiaries (Text) Action: This indicator is New IO Table SPACE The World Bank Cash Transfer Modernization Project (P160819) Performance-Based Conditions Matrix DLI IN00904071 ACTION PBC 1 Targeting Modernization Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 30,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 51% Year 1 (FY 2019) 0.00 Year 2 (FY 2020) 0.00 Year 3 (FY 2021) 65% 15,000,000.00 Year 4 (FY 2022) 0.00 Year 5 (FY 2023) 80% 15,000,000.00 Action: This PBC has been Revised. See below. DLI IN00925364 ACTION PBC 1 Targeting Modernization Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 51% Year 1 (FY 2019) 0.00 The World Bank Cash Transfer Modernization Project (P160819) Year 2 (FY 2020) 0.00 Year 3 (FY 2021) 65% 5,000,000.00 Year 4 (FY 2022) 0.00 Year 5 (FY 2023) 80% 5,000,000.00 DLI IN00904074 ACTION PBC 2 P.03. Cash transfer program budget delivered using digital payment Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 30,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline BDT 0.25 billion Year 1 (FY 2019) BDT 1.50 billion 0.00 Year 2 (FY 2020) BDT 5.00 billion 0.00 Year 3 (FY 2021) BDT 12.00 billion 10,000,000.00 Year 4 (FY 2022) 10,000,000.00 Year 5 (FY 2023) 10,000,000.00 Action: This PBC has been Revised. See below. The World Bank Cash Transfer Modernization Project (P160819) DLI IN00925365 ACTION PBC 2 Payment Modernization Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline BDT 0.25 billion Year 1 (FY 2019) 0.00 Year 2 (FY 2020) 0.00 Year 3 (FY 2021) BDT 5.00 billion 3,333,334.00 Year 4 (FY 2022) BDT 12.00 billion 3,333,333.00 Year 5 (FY 2023) BDT 20.00 billion 3,333,333.00 DLI IN00904075 ACTION PBC 3 I.01. Beneficiary records digitized and poverty certified Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 38,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 5,500,000.00 11,000,000.00 Year 2 (FY 2020) 2,000,000.00 9,000,000.00 The World Bank Cash Transfer Modernization Project (P160819) Year 3 (FY 2021) 4,000,000.00 7,000,000.00 Year 4 (FY 2022) 6,000,000.00 Year 5 (FY 2023) 5,000,000.00 Action: This PBC has been Revised. See below. DLI IN00925421 ACTION PBC 3 Data Management Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 13,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 4,000,000.00 4,000,000.00 Year 2 (FY 2020) 5,500,000.00 3,000,000.00 Year 3 (FY 2021) 2,000,000.00 2,000,000.00 Year 4 (FY 2022) 4,000,000.00 2,000,000.00 Year 5 (FY 2023) 6,000,000.00 2,000,000.00 The World Bank Cash Transfer Modernization Project (P160819) DLI IN00904078 ACTION PBC 4 I.02. Beneficiaries enrolled for digital payment Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 38,000,000.00 28.95 Period Value Allocated Amount (USD) Formula Baseline 39,008.00 Year 1 (FY 2019) 500,000.00 11,000,000.00 Year 2 (FY 2020) 1,000,000.00 9,000,000.00 Year 3 (FY 2021) 1,500,000.00 7,000,000.00 Year 4 (FY 2022) 6,000,000.00 Year 5 (FY 2023) 5,000,000.00 Action: This PBC has been Revised. See below. DLI IN00925422 ACTION PBC 4 Payment Enrollment Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 20,000,000.00 55.00 Period Value Allocated Amount (USD) Formula Baseline 39,008.00 Year 1 (FY 2019) 150,000.00 11,000,000.00 The World Bank Cash Transfer Modernization Project (P160819) Year 2 (FY 2020) 500,000.00 3,000,000.00 Year 3 (FY 2021) 1,000,000.00 2,000,000.00 Year 4 (FY 2022) 1,500,000.00 2,000,000.00 Year 5 (FY 2023) 2,000,000.00 2,000,000.00 DLI IN00904081 ACTION PBC 5 I.03. Access points for applications and grievances Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 39,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 1,125.00 11,000,000.00 Year 2 (FY 2020) 2,250.00 9,000,000.00 Year 3 (FY 2021) 3,375.00 7,000,000.00 Year 4 (FY 2022) 6,000,000.00 Year 5 (FY 2023) 6,000,000.00 Action: This PBC has been Revised. See below. The World Bank Cash Transfer Modernization Project (P160819) DLI IN00925350 ACTION PBC 5 Contact Points Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 13,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 100.00 4,000,000.00 Year 2 (FY 2020) 1,125.00 3,000,000.00 Year 3 (FY 2021) 2,250.00 2,000,000.00 Year 4 (FY 2022) 3,375.00 2,000,000.00 Year 5 (FY 2023) 4,500.00 2,000,000.00 DLI IN00904083 ACTION PBC 6 I.04. Access points for digital payments Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 39,000,000.00 28.21 Period Value Allocated Amount (USD) Formula Baseline 58.00 Year 1 (FY 2019) 500.00 11,000,000.00 Year 2 (FY 2020) 1,000.00 9,000,000.00 The World Bank Cash Transfer Modernization Project (P160819) Year 3 (FY 2021) 1,500.00 7,000,000.00 Year 4 (FY 2022) 6,000,000.00 Year 5 (FY 2023) 6,000,000.00 Action: This PBC has been Revised. See below. DLI IN00925426 ACTION PBC 6 Payment Points Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 20,000,000.00 55.00 Period Value Allocated Amount (USD) Formula Baseline 58.00 Year 1 (FY 2019) 150.00 11,000,000.00 Year 2 (FY 2020) 500.00 3,000,000.00 Year 3 (FY 2021) 1,000.00 2,000,000.00 Year 4 (FY 2022) 1,500.00 2,000,000.00 Year 5 (FY 2023) 2,000.00 2,000,000.00 The World Bank Cash Transfer Modernization Project (P160819) DLI IN00904086 ACTION PBC 7 I.05. Unions using poverty score for beneficiary selection Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 28,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 450.00 0.00 Year 2 (FY 2020) 900.00 9,000,000.00 Year 3 (FY 2021) 1,350.00 7,000,000.00 Year 4 (FY 2022) 6,000,000.00 Year 5 (FY 2023) 6,000,000.00 Action: This PBC has been Revised. See below. DLI IN00925427 ACTION PBC 7 Selection Process Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 9,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 0.00 The World Bank Cash Transfer Modernization Project (P160819) Year 2 (FY 2020) 450.00 3,000,000.00 Year 3 (FY 2021) 900.00 2,000,000.00 Year 4 (FY 2022) 1,350.00 2,000,000.00 Year 5 (FY 2023) 2,250.00 2,000,000.00 DLI IN00904088 ACTION PBC 8 I.06. Unions with personnel trained on business processes Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 28,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 1,125.00 0.00 Year 2 (FY 2020) 2,250.00 9,000,000.00 Year 3 (FY 2021) 3,375.00 7,000,000.00 Year 4 (FY 2022) 6,000,000.00 Year 5 (FY 2023) 6,000,000.00 Action: This PBC has been Revised. See below. The World Bank Cash Transfer Modernization Project (P160819) DLI IN00925423 ACTION PBC 8 Capacity Building Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 9,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Year 1 (FY 2019) 0.00 Year 2 (FY 2020) 1,125.00 3,000,000.00 Year 3 (FY 2021) 2,250.00 2,000,000.00 Year 4 (FY 2022) 3,375.00 2,000,000.00 Year 5 (FY 2023) 4,500.00 2,000,000.00 Verification Protocol Table: Performance-Based Conditions DLI_TBL_VERIFICATION PBC 1 Targeting Modernization Share of beneficiaries of the cash transfer programs who are in the lowest two quintiles based on poverty scores ranked by the NHD, out of all beneficiaries of the cash transfer programs (cumulative). This is expected to increase over time as used Description of the NHD is institutionalized. It will measure transparency due to the use of objective criteria, and efficiency due to equitable and accurate resource allocation (addressing inclusion errors), as a result of a modernized targeting system. Data source/ Agency Verification Entity The World Bank Cash Transfer Modernization Project (P160819) Using the DSS MIS, an aggregate report would be generated showing (1) the total number of beneficiaries determined to be eligible as per NHD provided poverty scores within the limit of total spaces by unions (disaggregated by cash transfer program and gender), at any given time; and (2) the total number of beneficiaries (disaggregated by program and gender), at the same given time. This DSS MIS report would be submitted to the Bank. A third party would follow-up with a sample of beneficiaries to check whether, when and how their participation was confirmed, and their findings would also be Procedure submitted to the Bank. The percentage of beneficiaries would be calculated on a cumulative basis. • Numerator: Total number of beneficiaries who are determined to be eligible as per NHD provided poverty scores. • Denominator: Total number of beneficiaries as per the DSS MIS. DLI_TBL_VERIFICATION PBC 1 Targeting Modernization Share of beneficiaries of the cash transfer programs who are in the lowest two quintiles based on poverty scores ranked by the NHD, out of all beneficiaries of the cash transfer programs (cumulative). This is expected to increase over time as used Description of the NHD is institutionalized. It will measure transparency due to the use of objective criteria, and efficiency due to equitable and accurate resource allocation (addressing inclusion errors), as a result of a modernized targeting system. DSS MIS Reports & NHD Reports Data source/ Agency - Verification Entity Using the DSS MIS, an aggregate report would be generated showing (1) the total number of beneficiaries determined to be eligible as per NHD provided poverty scores within the limit of total spaces by unions (disaggregated by cash transfer program and gender), at any given time; and (2) the total number of beneficiaries (disaggregated by program and gender), at the same given time. This DSS MIS report would be submitted to the Bank. A third party would follow-up with a sample of beneficiaries to check whether, when and how their participation was confirmed, and their findings would also be Procedure submitted to the Bank. The percentage of beneficiaries would be calculated on a cumulative basis. • Numerator: Total number of beneficiaries who are determined to be eligible as per NHD provided poverty scores. • Denominator: Total number of beneficiaries as per the DSS MIS. The World Bank Cash Transfer Modernization Project (P160819) DLI_TBL_VERIFICATION PBC 2 P.03. Cash transfer program budget delivered using digital payment Aggregate amount of the cash transfer budget delivered using digital payments (cumulative). This is expected to increase over time as payment service providers pay more beneficiaries. It will measure transparency due to accountable and Description traceable administrative processes, and efficiency due to controlled and automated administrative processes, as a result of a modernized payment system. Data source/ Agency Verification Entity Using their own information systems, PSPs would generate aggregate reports showing the total BDT transferred to beneficiary accounts (disaggregated by cash transfer program and gender), at any given time. DSS would compile such reports into a consolidated administrative report. This administrative report would be submitted to the Bank. A third party Procedure would follow-up with a sample of beneficiaries to check whether, when and how they received their most recent payment, and their findings would also be submitted to the Bank. The aggregate amount of BDT delivered would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 2 Payment Modernization Aggregate amount of the cash transfer budget delivered using digital payments (cumulative). This is expected to increase over time as payment service providers pay more beneficiaries. It will measure transparency due to accountable and Description traceable administrative processes, and efficiency due to controlled and automated administrative processes, as a result of a modernized payment system. DSS MIS Reports & PSP Reports Data source/ Agency - Verification Entity Using their own information systems, PSPs would generate aggregate reports showing the total BDT transferred to beneficiary accounts (disaggregated by cash transfer program and gender), at any given time. DSS would compile such reports into a consolidated administrative report. This administrative report would be submitted to the Bank. A third party Procedure would follow-up with a sample of beneficiaries to check whether, when and how they received their most recent payment, and their findings would also be submitted to the Bank. The aggregate amount of BDT delivered would be calculated on a cumulative basis. The World Bank Cash Transfer Modernization Project (P160819) DLI_TBL_VERIFICATION PBC 3 I.01. Beneficiary records digitized and poverty certified Aggregate number of individual records of beneficiaries entered into the DSS MIS (Years 1 and 2; cumulative) and matched against the NHD (Years 3, 4 and 5; cumulative). This is expected to increase over time as all beneficiary data is digitized and Description all beneficiary selection is made using the NHD. It will measure transparency due to accountable and traceable administrative processes. Data source/ Agency Verification Entity Years 1 and 2: Using the DSS MIS, an aggregate report would be generated showing the total number of beneficiary records saved in the DSS MIS (disaggregated by cash transfer program and gender), at any given time. This DSS MIS report would be submitted to the Bank. Years 3, 4 and 5: Using the DSS MIS, an aggregate report would be generated showing the total number of beneficiaries Procedure determined to be eligible as per NHD provided poverty scores within the limit of total spaces by unions (disaggregated by cash transfer program and gender) at any given time. This DSS MIS report would be submitted to the Bank. The aggregate number of records which have been digitized (Years 1 and 2) and records which have been poverty certified (Years 3, 4 and 5) would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 3 Data Management Aggregate number of individual records of beneficiaries entered into the DSS MIS (Years 1 and 2; cumulative) and matched against the NHD (Years 3, 4 and 5; cumulative). This is expected to increase over time as all beneficiary data is digitized and Description all beneficiary selection is made using the NHD. It will measure transparency due to accountable and traceable administrative processes. DSS MIS Reports Data source/ Agency - Verification Entity The World Bank Cash Transfer Modernization Project (P160819) Years 1 and 2: Using the DSS MIS, an aggregate report would be generated showing the total number of beneficiary records saved in the DSS MIS (disaggregated by cash transfer program and gender), at any given time. This DSS MIS report would be submitted to the Bank. Years 3, 4 and 5: Using the DSS MIS, an aggregate report would be generated showing the total number of beneficiaries Procedure determined to be eligible as per NHD provided poverty scores within the limit of total spaces by unions (disaggregated by cash transfer program and gender) at any given time. This DSS MIS report would be submitted to the Bank. The aggregate number of records which have been digitized (Years 1 and 2) and records which have been poverty certified (Years 3, 4 and 5) would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 4 I.02. Beneficiaries enrolled for digital payment Aggregate number of beneficiaries enrolled by payment service providers to receive benefits via digital payment Description (cumulative). This is expected to increase over time as more beneficiaries are enrolled. It will measure transparency due to accountable and traceable administrative processes. Data source/ Agency Verification Entity Using their own information systems, PSPs would generate upazila/union-wise reports showing the total number of beneficiaries who have had a transactional account opened (disaggregated by cash transfer program and gender), at any given time. DSS would compile such reports into a consolidated administrative report. This administrative report would be Procedure submitted to the Bank. A third party would follow-up with a sample of beneficiaries to check whether they have had such accounts opened, and their findings would also be submitted to the Bank. The aggregate number of beneficiaries enrolled would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 4 Payment Enrollment Aggregate number of beneficiaries enrolled by payment service providers to receive benefits via digital payment Description (cumulative). This is expected to increase over time as more beneficiaries are enrolled. It will measure transparency due to accountable and traceable administrative processes. DSS MIS Reports & PSP Reports Data source/ Agency Verification Entity - The World Bank Cash Transfer Modernization Project (P160819) Using their own information systems, PSPs would generate upazila/union-wise reports showing the total number of beneficiaries who have had a transactional account opened (disaggregated by cash transfer program and gender), at any given time. DSS would compile such reports into a consolidated administrative report. This administrative report would be Procedure submitted to the Bank. A third party would follow-up with a sample of beneficiaries to check whether they have had such accounts opened, and their findings would also be submitted to the Bank. The aggregate number of beneficiaries enrolled would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 5 I.03. Access points for applications and grievances Aggregate number of locations where non-beneficiaries may apply to a cash transfer program and where beneficiaries can record grievances (cumulative). This is expected to increase over time as more non-beneficiaries and beneficiaries are made Description aware of the decentralized application and grievance recording process, and DSS staff (and others) are trained to assist such persons. It will measure efficiency due to greater program accessibility. Data source/ Agency Verification Entity Using the DSS MIS, an upazila/union-wise report would be generated showing the total number of unique MAC addresses using which applications and grievances have been logged using an internet-based form and given unique tracking numbers, at any given time. This DSS MIS report would be submitted to the Bank. A third party would follow-up with a sample of Procedure beneficiaries to check whether they logged applications or grievances, and their findings would also be submitted to the Bank. The aggregate number of contact points would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 5 Contact Points Aggregate number of locations where non-beneficiaries may apply to a cash transfer program and where beneficiaries can record grievances (cumulative). This is expected to increase over time as more non-beneficiaries and beneficiaries are made Description aware of the decentralized application and grievance recording process, and DSS staff (and others) are trained to assist such persons. It will measure efficiency due to greater program accessibility. DSS MIS Reports Data source/ Agency The World Bank Cash Transfer Modernization Project (P160819) - Verification Entity Using the DSS MIS, an upazila/union-wise report would be generated showing the total number of unique MAC addresses using which applications and grievances have been logged using an internet-based form and given unique tracking numbers, at any given time. This DSS MIS report would be submitted to the Bank. A third party would follow-up with a sample of Procedure beneficiaries to check whether they logged applications or grievances, and their findings would also be submitted to the Bank. The aggregate number of contact points would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 6 I.04. Access points for digital payments Aggregate number of locations where beneficiaries can receive benefits via digital payment (cumulative). This is expected to Description increase over time as more locations are established by payment service providers. It will measure efficiency due to greater program accessibility. Data source/ Agency Verification Entity Using their own information systems, PSPs would generate upazila/union-wise reports showing the total number of access points which have made digital payment for at least one quarter of a fiscal year, at any given time. DSS would compile such reports into a consolidated administrative report. This administrative report would be submitted to the Bank. A third party Procedure would follow-up with a sample of access points to check whether they possess relevant equipment, have received training, and have made any payment, and their findings would also be submitted to the Bank. The aggregate number of payment points would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 6 Payment Points Aggregate number of locations where beneficiaries can receive benefits via digital payment (cumulative). This is expected to increase over time as more locations are established by payment service providers. It will measure efficiency due to greater Description program accessibility. DSS MIS Reports & PSP Reports Data source/ Agency The World Bank Cash Transfer Modernization Project (P160819) - Verification Entity Using their own information systems, PSPs would generate upazila/union-wise reports showing the total number of access points which have made digital payment for at least one quarter of a fiscal year, at any given time. DSS would compile such reports into a consolidated administrative report. This administrative report would be submitted to the Bank. A third party Procedure would follow-up with a sample of access points to check whether they possess relevant equipment, have received training, and have made any payment, and their findings would also be submitted to the Bank. The aggregate number of payment points would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 7 I.05. Unions using poverty score for beneficiary selection Aggregate number of unions where beneficiaries are selected based on poverty scores ranked by the NHD (cumulative). This Description is expected to increase over time as DSS expands use of the NHD. It will measure transparency due to the use of objective criteria. Data source/ Agency Verification Entity Using the DSS MIS, an upazila-wise report would be generated showing the total number of unions which have made selections of beneficiaries based on NHD provided poverty scores within the limit of total spaces by each union (disaggregated by cash transfer program and gender), at any given time. This DSS MIS report would be submitted to the Procedure Bank. A third party would follow-up with a sample of unions to check whether they received potential beneficiary lists from DSS for final consideration, and their findings would also be submitted to the Bank. The aggregate number of unions would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 7 Selection Process Aggregate number of unions where beneficiaries are selected based on poverty scores ranked by the NHD (cumulative). This Description is expected to increase over time as DSS expands use of the NHD. It will measure transparency due to the use of objective criteria. DSS MIS Reports & NHD Reports Data source/ Agency Verification Entity - The World Bank Cash Transfer Modernization Project (P160819) Using the DSS MIS, an upazila-wise report would be generated showing the total number of unions which have made selections of beneficiaries based on NHD provided poverty scores within the limit of total spaces by each union (disaggregated by cash transfer program and gender), at any given time. This DSS MIS report would be submitted to the Procedure Bank. A third party would follow-up with a sample of unions to check whether they received potential beneficiary lists from DSS for final consideration, and their findings would also be submitted to the Bank. The aggregate number of unions would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 8 I.06. Unions with personnel trained on business processes Aggregate number of unions where personnel are trained on cash transfer program administration using modernized Description systems (cumulative). This is expected to increase over time as DSS expands its training program. It will measure efficiency due to controlled and automated administrative processes. Data source/ Agency Verification Entity An upazila-wise administrative report would be prepared showing the total number of unions where personnel have received training on the role and use of the DSS MIS (including names and designations of such personnel, as well as their respective scores on the basis of a standardized assessment), at any given time. This administrative report would be Procedure submitted to the Bank. A third party would follow-up with a sample of such personnel unions to check whether they have received adequate training, and their findings would also be submitted to the Bank. The aggregate number of unions would be calculated on a cumulative basis. DLI_TBL_VERIFICATION PBC 8 Capacity Building Aggregate number of unions where personnel are trained on cash transfer program administration using modernized Description systems (cumulative). This is expected to increase over time as DSS expands its training program. It will measure efficiency due to controlled and automated administrative processes. DSS Administrative Reports Data source/ Agency - Verification Entity The World Bank Cash Transfer Modernization Project (P160819) An upazila-wise administrative report would be prepared showing the total number of unions where personnel have received training on the role and use of the DSS MIS (including names and designations of such personnel, as well as their respective scores on the basis of a standardized assessment), at any given time. This administrative report would be Procedure submitted to the Bank. A third party would follow-up with a sample of such personnel unions to check whether they have received adequate training, and their findings would also be submitted to the Bank. The aggregate number of unions would be calculated on a cumulative basis. The World Bank Cash Transfer Modernization Project (P160819) Annex 1: Allocated Amounts per DLI Target by Financier The table below shows the US$ (approximate) and EUR (actual) values of each DLI Target, to be financed by the Bank and AFD respectively. The Bank portion of the financing would be disbursed in SDR4 while the AFD portion would be disbursed in EUR. Year 1 Year 2 Year 3 Year 4 Year 5 DLI Financier Total (FY 2019) (FY 2020) (FY 2021) (FY 2022) (FY 2023) 1. Targeting Modernization IDA - - US$ 5m - US$ 5m US$ 10m AFD - - EUR 9m - EUR 9m EUR 18m 2. Payment Modernization IDA - - US$ 3m US$ 3m US$ 3m US$ 10m * AFD - - EUR 6m EUR 6m EUR 6m EUR 18m 3. Data Management IDA US$ 4m US$ 3m US$ 2m US$ 2m US$ 2m US$ 13m AFD EUR 7m EUR 5m EUR 4m EUR 4m EUR 3m EUR 23m 4. Payment Enrollment IDA US$ 11m US$ 3m US$ 2m US$ 2m US$ 2m US$ 20m AFD - EUR 5m EUR 4m EUR 4m EUR 3m EUR 16m 5. Contact Points IDA US$ 4m US$ 3m US$ 2m US$ 2m US$ 2m US$ 13m AFD EUR 7m EUR 5m EUR 4m EUR 4m EUR 4m EUR 24m 6. Payment Points IDA US$ 11m US$ 3m US$ 2m US$ 2m US$ 2m US$ 20m AFD - EUR 5m EUR 4m EUR 4m EUR 4m EUR 17m 7. Selection Process IDA - US$ 3m US$ 2m US$ 2m US$ 2m US$ 9m AFD - EUR 5m EUR 4m EUR 4m EUR 4m EUR 17m 8. Capacity Building IDA - US$ 3m US$ 2m US$ 2m US$ 2m US$ 9m AFD - EUR 5m EUR 4m EUR 4m EUR 4m EUR 17m IDA (US$ million) Total (by fiscal year) US$ 29m US$ 18m US$ 22m US$ 15m US$ 20m US$ 104m Total (cumulative) US$ 29m US$ 47m US$ 69m US$ 85m US$ 104m - Share (cumulative) 28% 45% 67% 81% 100% - AFD (EUR million) Total (by fiscal year) EUR 13m EUR 33m EUR 41m EUR 28m EUR 36m EUR 150m Total (cumulative) EUR 13m EUR 46m EUR 86m EUR 114m EUR 150m - Share (cumulative) 9% 31% 58% 76% 100% - * SDR values of allocated amounts for each Target for DLI 2 are based on US$ 3.33 million. The summation variation is due to rounding. 4 SDR amounts for each DLI Target have been determined based on the July 27, 2020, exchange rate. All SDR values are included in the Amendment to the Financing Agreement.