The World Bank Report No: ISR9498 Implementation Status & Results Sri Lanka Second Community Development and Livelihood Improvement Project (P087145) Public Disclosure Copy Operation Name: Second Community Development and Livelihood Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 08-Jun-2013 Improvement Project (P087145) Country: Sri Lanka Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Key Dates Board Approval Date 10-Sep-2009 Original Closing Date 31-Mar-2014 Planned Mid Term Review Date 29-Apr-2013 Last Archived ISR Date 17-Dec-2012 Effectiveness Date 11-Dec-2009 Revised Closing Date 31-Mar-2014 Actual Mid Term Review Date 22-Apr-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To enhance quality of life of poor households of the most poor divisions in the country and increase incomes and well being of the poor and most vulnerable,. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Intra-Village Development 59.40 Inter-Village Connectivity Development 30.00 Public, People, and Private Sector Partnerships 4.40 Project Management and Monitoring 7.80 Convergence and Policy Support 3.40 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status Overview The Implementation progress is based on Mid Term Review mission which was carried during April 22 -May 3 2013. The MTR was also carried out to review all issues for project restructuring and prepare Restructuring paper for the Board approval. Page 1 of 6 The World Bank Report No: ISR9498 Overall progress towards achievement of Project Development Objectives (PDO) and Implementation Progress are rated to be moderately satisfactory. Significant efforts were made by the project to speed up implementation and accelerate disbursement. As at time of MTR, the project had established 2,044 village organizations (VOs) – with 1,034 created under Phase 1 and 1,010 in Phase 2. Out of these, 2,015 VOs have accessed Village Development Fund (VDF) to undertake investments in social, economic and community infrastructure. However, only 1,738 VOs were reported to be active. Public Disclosure Copy The project has promoted 1,990 VSCOs comprising 38,707 Small Groups (SGs), managing own savings of US$ 3.68 million and Livelihood Support Fund (LSF) of US$ 14.07 million. The project team has also increased its technical assistance to the Inter connectivity programs, Producer Groups and provided linkages with technical departments of government agencies and the private sector. Work on the M&E and MIS has also gained traction with a new staff team in place, with improvements in capture and reporting of project data. But while there was a marked improvement in a good number of performance indicators, many were just being updated due to lack of significant implementation progress over the past 2 years. Owing to the changing institutional environment in which SCDLIP was operating during the second half of 2012, and the exigencies of responding to GOSL policy changes, the MTR reviewed all the proposed changes and prepare the Restructuring Paper identifying all areas for changes. Specifically, most of the changes proposed relate to new policy environment in Sri Lanka on poverty alleviation programmes. GOSL intends to implement a uniform, homogenized and centralized governance architecture with direct control and oversight for all rural poverty reduction programs in the country. As such, Gemi Diriya Foundation which hitherto had served as an autonomous implementation structure of the project became dysfunctional and was proposed by GoSL to be mainstreamed into the structure of its ministries for effective oversight. This necessitated changes in the governance and implementation structure of the project as the policy related performance triggers necessary for phase III of the APL are unlikely to be achieved. These performance triggers which involve horizontal scaling up and policy change were built around the functioning of the federation of the village institutions. But the federations are no longer considered viable and transformational in the context of rural development strategy of the GoSL. Therefore, the latter has decided to develop a converged service delivery approach at the village level incorporating its other rural development initiatives such as Samrudhi and Divineguma programs. This institutional change and policy orientation entail risk to the achievement of the project development objectives as envisaged in the APL unless some structural changes are made in the project. So it is proposed to change the credit instrument from APL to Investment Lending (IL) as the policy triggers are no longer relevant and achievable. The Results Framework was also revised accordingly. There is also reallocating funds across components. As Government wants to mainstream the program through Ministry of Economic Development, the restructuring also proposed a change in the Institutional arrangements from Gemi Diriya Foundation (already defunct) to a Project Management Unit within Ministry. Locations Country First Administrative Division Location Planned Actual Sri Lanka Province of Uva Province of Uva Sri Lanka Southern Province Southern Province Sri Lanka Province of Sabaragamuwa Province of Sabaragamuwa Sri Lanka Province of Sabaragamuwa Ratnapura District Sri Lanka North Central Province Polonnaruwa District Public Disclosure Copy Sri Lanka Central Province Nuwara Eliya District Sri Lanka North Central Province North Central Province Sri Lanka Province of Uva Monaragala District Sri Lanka Southern Province Matara District Sri Lanka Province of Sabaragamuwa Kegalla District Sri Lanka Southern Province Hambantota District Page 2 of 6 The World Bank Report No: ISR9498 Country First Administrative Division Location Planned Actual Sri Lanka Southern Province Galle District Public Disclosure Copy Sri Lanka Central Province Central Province Sri Lanka Province of Uva Badulla District Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target At least average 20% incremental (PREVIOUS Percentage Value 0.00 0.00 20.00 30%) increase in income against base year for Date 30-Jun-2010 30-Apr-2013 31-Mar-2014 [50 % of] targeted households by the end of Comments Baseline survey collection is Impact assessment will soon project under progress be carried out after the project is restructured in order to determine this variable. At least 70 % of targeted households utilizing Text Value 0% 43% 70 % [benefiting] improved community intra-village Date 13-May-2010 30-Apr-2013 31-Mar-2014 infrastructure and social services forintended Comments purposes At least 70 % of PS have implemented intra Text Value 0% 50% 70% and inter-connectivity sub-projects in Date 18-May-2010 30-Apr-2013 31-Mar-2014 accordance with agreed rules Comments At least 60% of villages are utilizing Text Value interconnectivity infrastructure for intended Date 18-May-2010 30-Apr-2013 31-Mar-2014 purpose Comments Data will be reported in next ISR At least 50 % of VO federations and VSCO Text Value 0% 50% Public Disclosure Copy federations (Phase 1) are rated as A or B, and Date 18-May-2010 30-Apr-2013 31-Mar-2014 are providing the services for livelihood Comments N.A. promotion to their members At least 60% of villages are utilizing Percentage Value 0.00 33.00 60.00 interconnectivity infrastructure for intended Date 30-Apr-2013 31-Mar-2014 purpose Comments This is a new indicator and is being updated by the project. Page 3 of 6 The World Bank Report No: ISR9498 Establish O&M Unit and O&M fund in 70% Percentage Value 0.00 40.00 70.00 project PS Date 30-Apr-2013 31-Mar-2014 Comments Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target At least 80 % of sub-projects are completed Text Value 0% 33% 80 (and ratified by Maha Sabha) operated and Date 18-May-2010 30-Apr-2013 31-Mar-2014 maintained by VOs Comments New sub projects were started which reduced the percentage completion of the projects. At least 80 % of VSCOs (Phase 1 & 2) with an Text Value 40 % 38% 80 % on-time repayment rate of 95 % and above, Date 18-May-2010 30-Apr-2013 31-Mar-2014 and PAR of less than 5% on both internal and Comments The repayment rate is external loans declining with an increasing PAR At least 65 % of households in the poor and Text Value 0% 30% 65 % poorest category as identified through Date 18-May-2010 30-Apr-2013 31-Mar-2014 participatory identification of poor and Comments The project is making more poorestmethodology have accessed at least once VSCO loans and engaged in th poor people bankable and credit worthy. At least 75% of the special group beneficiaries Text Value 87% 75 targeted (disabled, one-time grantee, Date 18-May-2010 30-Apr-2013 31-Mar-2014 vulnerable youth, aged, orphans) have Comments benefitted from livelihood funds and started either employment and/or incom At least 50 % of decision-making positions Text Value 80% (Chairperson or Treasurer of various sub- Date 18-May-2010 30-Apr-2013 31-Mar-2014 Public Disclosure Copy committees) are occupied by women, at Comments village level At least 70 % of Pradeshiya Sabhas have Text Value 41% accessed funds and have completed at least Date 18-May-2010 31-Mar-2013 31-Mar-2014 one cluster level sub-project as per the Comments rulesagreed within two years At least 70 % of households benefiting from Text Value inter-connectivity sub-projects Date 18-May-2010 30-Apr-2013 31-Mar-2014 Page 4 of 6 The World Bank Report No: ISR9498 Comments This indicator has been revised and will be reported in the restructured project. Public Disclosure Copy At least 70% of village organizations covered Text Value 20 70 during Phase 1 have formed network of Date 18-May-2010 30-Apr-2013 31-Mar-2014 federations at cluster and district level and Comments Indicator has been revised have been linked to private sector and/or other partners for income g and will be reported at the next ISR At least 12 partnerships established and linked Text Value 8 with the federation Date 18-May-2010 30-Apr-2013 31-Mar-2014 Comments Indicator has been revised and will be reported at the next ISR GDF has a Grievance redressal system Text Value functioning and 80% of complaints received Date 18-May-2010 30-Apr-2013 31-Mar-2014 have been addressed within agreed service Comments Existing Grievance handling standards system to be redesigned and revised At least 70 % of process monitoring Text Value recommendations implemented by Date 18-May-2010 30-Apr-2013 31-Mar-2014 management though taking actions Comments Not relevant and have to be dropped At least 50 % of Gama Neguma and Samurdhi Text Value 40% villages receiving and managing direct funds Date 18-May-2010 30-Apr-2013 31-Mar-2014 are planning, implementing, and maintaining Comments Will need to be revised during sub-projects according to the rules set out in the COM restructuring in view of change in policy environment Data on Financial Performance (as of 13-May-2013) Public Disclosure Copy Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P087145 IDA-46130 Effective 10-Sep-2009 22-Oct-2009 11-Dec-2009 31-Mar-2014 31-Mar-2014 P087145 TF-56903 Closed 25-Oct-2006 25-Oct-2006 25-Oct-2006 09-Oct-2007 30-Sep-2009 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P087145 IDA-46130 Effective USD 75.00 75.00 0.00 55.60 21.26 74.00 Page 5 of 6 The World Bank Report No: ISR9498 P087145 TF-56903 Closed USD 0.39 0.35 0.03 0.35 0.00 100.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6