Report No: ICR00006587 IMPLEMENTATION COMPLETION AND RESULTS REPORT CREDIT NO. 6374-LA ON A CREDIT IN THE AMOUNT OF SDR 19.6 MILLION (US$ 27 MILLION EQUIVALENT) TO THE LAO PEOPLE’S DEMOCRATIC REPUBLIC FOR REDUCING RURAL POVERTY AND MALNUTRITION (P162565) FEBRUARY 25, 2025 Social Protection & Jobs East Asia And Pacific The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT CURRENCY EQUIVALENTS (Exchange Rate Effective February 6, 2025) Currency Unit = Lao Kip (LAK) XDR 1 = US$1.30 LAK 21,734.41 = USD 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Manuela V. Ferro Country Director: Mariam J. Sherman Regional Director: Alberto Rodriguez Practice Manager: Manuel Salazar Kenichi Victor Nishikawa Chavez, Ali Winoto Subandoro, Task Team Leader (s): Yasuhiro Kawasoe ICR Main Contributor: Jorge Avalos and Yashodhan Ghorpade The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT ABBREVIATIONS AND ACRONYMS ANC Antenatal care ASA Advisory Services and Analytics CCT Conditional cash transfer CPF Country Partnership Framework DRDC Department of Rural Development and Cooperative ECE Early Childhood Education FM Financial Management GoL Government of Lao PDR HANSA Health and Nutrition Services Access Project HGNDP Health Governance and Nutrition Development Project IBM Iterative Beneficiary Monitoring ICR Implementation Completion and Result Report MAF Ministry of Agriculture and Forestry M&E Monitoring and Evaluation MIS Management Information System MOH Ministry of Health MOES Ministry of Education and Sport MPI Ministry of Planning and Investment NNC National Nutrition Committee NNSPA National Nutrition Strategy and Plan of Action PAD Project Appraisal Document PEDIS Poverty Eradication and Development Information System PDO Project Development Objective PDR People’s Democratic Republic PMT Proxy Means Test PMU Project Management Unit PRF Poverty Reduction Fund Project SBCC Social and Behavior Change Communication VF Village-Based Facilitator WASH Scaling-up Water Supply, Sanitation and Hygiene Project The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT TABLE OF CONTENTS DATA SHEET ................................................................................................................................................. i I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................................................1 II. OUTCOME ...................................................................................................................................................5 III. KEY FACTORS AFFECTED IMPLEMENTATION AND OUTCOME................................................................... 10 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME ............................ 11 V. LESSONS AND RECOMMENDATIONS .......................................................................................................... 15 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................................................ 18 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ....................................................... 24 ANNEX 3. PROJECT COST BY COMPONENT ......................................................................................................... 27 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................................................ 28 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ................................. 29 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT DATA SHEET @#&OPS~Doctype~OPS^dynamics@icrbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P162565 Reducing Rural Poverty and Malnutrition Project Product Operation Short Name Investment Project Financing (IPF) Reducing Rural Poverty & Malnutrition Operation Status Approval Fiscal Year Closed 2019 Original EA Category Current EA Category Partial Assessment (B) (Restructuring Data Sheet - 31 Mar Partial Assessment (B) (Approval package - 14 Mar 2019) 2024) CLIENTS Borrower/Recipient Implementing Agency Lao People’s Democratic Republic Ministry of Agriculture and Forestry DEVELOPMENT OBJECTIVE Original Development Objective (Approved as part of Approval Package on 14-Mar-2019) The Project Development Objective is to support the design and implementation of a nutrition-sensitive social assistance program to improve nutrition behaviors, and enhance the convergence of nutrition-focused interventions. s s s s @#&OPS~Doctype~OPS^dynamics@icrfinancing#doctemplate FINANCING Financing Source Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 27,000,000.00 22,452,226.03 23,475,699.59 i The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT IDA-63740 27,000,000.00 22,452,226.03 23,475,699.59 Total 27,000,000.00 22,452,226.03 23,475,699.59 RESTRUCTURING AND/OR ADDITIONAL FINANCING Amount Disbursed Date(s) Type Key Revisions (US$M) • Components • Results 22-Nov-2023 Portal 20.85 • Loan Cancellations • Reallocations • Loan Closing Date Extension 31-Mar-2024 Portal 23.04 • Reallocations @#&OPS~Doctype~OPS^dynamics@icrkeydates#doctemplate KEY DATES Key Events Planned Date Actual Date Concept Review 24-Jan-2018 24-Jan-2018 Decision Review 25-Sep-2018 25-Sep-2018 Authorize Negotiations 13-Dec-2018 28-Nov-2018 Approval 14-Mar-2019 14-Mar-2019 Signing 09-May-2019 Effectiveness 26-Apr-2019 21-Jun-2019 ICR/NCO 27-Feb-2025 25-Feb-2025 Restructuring Sequence.01 Not Applicable 22-Nov-2023 Restructuring Sequence.02 Not Applicable 31-Mar-2024 ICR Sequence.01 (Final) -- 24-Feb-2025 Operation Closing/Cancellation 31-Aug-2024 31-Aug-2024 @#&OPS~Doctype~OPS^dynamics@icrratings#doctemplate RATINGS SUMMARY Outcome Bank Performance M&E Quality ii The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Satisfactory Satisfactory High ISR RATINGS Actual Disbursements No. Date ISR Archived DO Rating IP Rating (US$M) 01 14-Jun-2019 Satisfactory Satisfactory 0.00 02 26-Dec-2019 Satisfactory Satisfactory 1.09 03 16-Jun-2020 Satisfactory Satisfactory 1.09 04 20-Dec-2020 Satisfactory Satisfactory 5.00 05 30-Jun-2021 Satisfactory Moderately Satisfactory 5.00 06 07-Jan-2022 Satisfactory Satisfactory 11.20 07 28-Jun-2022 Satisfactory Satisfactory 13.66 08 13-Jan-2023 Satisfactory Satisfactory 16.67 09 24-Aug-2023 Satisfactory Satisfactory 20.85 10 10-May-2024 Satisfactory Satisfactory 23.04 @#&OPS~Doctype~OPS^dynamics@icrsectortheme#doctemplate SECTORS AND THEMES Sectors Adaptation Mitigation Major Sector Sector % Co-benefits Co-benefits (%) (%) FY17 - Health FY17 - Health 10 0 0 FY17 - Information and FY17 - ICT Infrastructure 1 0 0 Communications Technologies FY17 - ICT Services 3 0 0 FY17 - Public Administration - Social 27 0 0 FY17 - Social Protection Protection FY17 - Social Protection 59 0 0 Themes Major Theme Theme (Level 2) Theme (Level 3) % iii The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT FY17 - Human Development and FY17 - Nutrition and Food Security FY17 - Nutrition 89 Gender FY17 - Private Sector FY17 - ICT FY17 - ICT Solutions 38 Development FY17 - Data production, 38 accessibility and use FY17 - Public Sector FY17 - Data Development and FY17 - Institutional Management Capacity Building strengthening and 38 capacity building FY17 - Participation and FY17 - Social Inclusion 89 FY17 - Social Civic Engagement Development and FY17 - Social protection 38 Protection FY17 - Social Protection delivery systems FY17 - Social Safety Nets 89 iv The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT ADM STAFF Role At Approval At ICR Practice Manager Philip O'Keefe Manuel Salazar Regional Director Daniel Dulitzky Alberto Rodriguez Global Director Michal J. Rutkowski Iffath Anwar Sharif Practice Group Vice President Annette Dixon Mamta Murthi Country Director Ellen A. Goldstein Mariam J. Sherman Regional Vice President Victoria Kwakwa Manuela V. Ferro ADM Responsible Team Leader Francesca Lamanna Kenichi Victor Nishikawa Chavez Ali Winoto Subandoro, Yasuhiro Co-Team Leader(s) Nkosinathi Vusizihlobo Mbuya Kawasoe ICR Main Contributors Jorge Avalos and Yashodhan Ghorpade I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. The RRPM was appraised in 2019, when Lao People’s Democratic Republic (PDR) had experienced strong economic growth with low-to-moderate poverty reduction gains. Despite strong growth, poverty remained high. Rural areas and ethnic groups faced high levels of poverty and had not benefited as fully as other groups from the economic growth in the 2000s.1 Poverty incidence was 23.2 percent nationally, but it was 40 percent in rural areas compared to 10 percent in urban areas. Poverty and human development indicators were also worse for ethnic minorities, and in remote and highland areas in Northern Lao. 2. The persistence of high levels of childhood undernutrition represented considerable loss of human and economic potential for Lao PDR, with significant geographic and income disparities. Stunting has long-term adverse developmental impacts that far surpass childhood and has been linked to slower learning outcomes, poor academic performance, and lower productivity and wages in adulthood. About 33 percent of children under five years were stunted, 21 percent underweight, and 9 percent wasted according to the latest nationally representative survey in 2017.2 The burden of high maternal and childhood malnutrition on the Lao PDR economy was estimated to be at least $200 million annually, representing about 2.4 percent of the country’s GDP. 3. In Lao PDR, the key determinants of children undernutrition are multisectoral. These include: (i) women’s limited access to health and nutrition services preventing them from receiving antenatal care services, (including iron and folic acid supplementation and nutrition counseling), (ii) diet affordability and diversity, (only 55 percent 1 Gross Domestic Product (GDP) growth averaged 7.6 percent per year over the past decade and poverty declined from 33.5 percent to 23.2 percent between 2002/03 and 2012/13 (RRPM PAD). 2 Lao Statistics Bureau. 2018. Lao Social Indicator Survey II 2017, Survey Findings Report. Vientiane, Lao PDR: Lao Statistics Bureau and UNICEF. Page 1 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT of households in Lao PDR could afford a nutritious diet), 3 (iii) low coverage of basic sanitation (32 percent of households practiced open defecation) and high prevalence of E. coli contamination (over 83 percent of households) in water; and (iv) women’s socio economic status, agency and empowerment, or lack thereof.4 4. By project appraisal, the government of Laos (GoL) had placed an increased emphasis on reducing malnutrition. This was evident in the promulgation of the 2016-2025 National Nutrition Strategy and Plan of Action (NNSPA). Anchored in the 8th National Social Economic Development Strategy (NSEDP) 2016–2020, the NNSPA aimed at accelerating the reduction of stunting in children under five years from 44 percent to 25 percent by 2025 using a multisectoral convergence approach. The Ministry of Health (MOH), Ministry of Education and Sport (MOES), Ministry of Planning and Investment (MPI), and the Ministry of Agriculture and Forestry (MAF) are the four leading agencies in charge of implementing the strategy. 5. To support the Government’s efforts in tackling childhood stunting through multisectoral program, the World Bank made a commitment to a multisectoral action plan. In 2019, in coordination with GoL, the World Bank launched the Nutrition Convergence Program to tackle the multidimensional causes of undernutrition in Lao PDR by optimizing operational and technical assistance commitments, as well as policy dialogue on nutrition, anchored in a defined mechanism to lead multisector policy dialogue. It was agreed that nutrition-sensitive and nutrition- specific interventions will be coordinated to the extent feasible in four key areas: (a) geographic convergence of nutrition-specific and nutrition sensitive interventions in the same communities and households; (b) use of common Social and Behavior Change Communication (SBCC) strategy, action plan, and tools; (c) leveraging of each other’s delivery platforms, for example, pre-established community structures; and (d) using common monitoring and evaluation (M&E) frameworks. The program targeted the most nutritionally vulnerable window of opportunity, which is the first 1,000 days (period from conception to age two). This is also a period that is the most crucial for the development of the child’s body, brain, metabolism, and immune system. 6. During its first phase, the nutrition convergence approach aimed to lay the institutional and operational foundations for the multisector convergence before possible scale-up in subsequent phases.5 Five World Bank operations were identified as nutrition-sensitive and were designed to maximize reductions in stunting prevalence by working simultaneously in the same geographical areas and reaching the same households. The operations include the RRPM; Health Governance and Nutrition Development Project (HGNDP; P151425); Health and Nutrition Services Access Project (HANSA; P166165); Scaling-up Water Supply, Sanitation and Hygiene Project (SWSHH: P164901); the Early Childhood Education (ECE; P145544); and Poverty Reduction Fund Project (PRF III; P157963) and its additional financing (P168620). Each of these interventions aimed to address key causes of undernutrition in Lao PDR such as access to health services (HGNDP, HANSA), feeding and caregiving resources (RRPM, ECE), food security (PRF III), and safe and hygienic environment (SWSSH). The operations jointly contributed to tackling the immediate and underlying causes of malnutrition in twelve priority districts in provinces with the highest shares and absolute numbers of stunted children. 7. The social protection system in Lao PDR was nascent and did not explicitly address malnutrition. At project appraisal, social protection programs, including social insurance, reached a small percentage of population6 and none explicitly addressed child malnutrition. Furthermore, social protection policies and the underlying building blocks of a social protection system to support poor and vulnerable households, including systems for 3 World Food Program (WFP) and Ministry of Health. 2017. Fill the Nutrient Gap Lao-PDR. Vientiane 4 Kamiya, Y., Nomura, M., Ogino, H. et al. Mothers’ autonomy and childhood stunting: evidence from semi-urban communities in Lao PDR. BMC Women's Health 18, 70 (2018). 5 The World Bank-Lao PDR Phased Multisectoral Approach to reduced stunting runs from 2018 to 2028. 6 Only about 12 percent of the population was covered by any form of social protection, including social insurance. World Social Protection Report 2017–19: Universal social protection to achieve the Sustainable Development Goals International Labour Office – Geneva: ILO, 2017. Page 2 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT identification, registration, payments, coordination, monitoring, or evaluation were underdeveloped or did not exist. Social assistance programs were fragmented, small scale, and financed mainly by development partners. Overall spending on social protection was about 1.7 percent of GDP (including pensions), far below neighboring Viet Nam at 6.7 percent and the East Asia region average of 5.7 percent. 8. As part of the nutrition convergence approach, this project was designed to address the demand side constraints that poor households face to access maternal and infant health and nutrition services. Implemented by the Ministry of Agriculture and Forestry (MAF) whose mandate comprised rural development and poverty reduction, this entailed: (i) addressing the low uptake of health and nutrition services known to contribute to stunting reduction through conditional cash transfers (CCT) and targeted communication to parents (SBCC), (ii) improving household nutrition practices through behavior change communication sessions; (iii) developing the systems to deliver conditional cash transfers (social protection building blocks), and (iv) addressing the low government capacity to coordinate, implement and monitor a multisector intervention. In this regard component one supported the establishment of social protections building blocks; component two supported the design and implementation of conditional cash transfers, and Component 3 the multisectoral coordination and monitoring implemented by MPI. Theory of Change (Results Chain) 9. The project employed three components to the achievement of the PDO target (Figure 1). Figure 1. Results Chain Project Development Objectives (PDOs) 10. The PDO was “to support the design and implementation of a nutrition-sensitive social assistance program to improve nutrition behaviors, and enhance the convergence of nutrition-focused interventions.” Key Expected Outcomes and Outcome Indicators Page 3 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT 11. The Results Framework and monitoring was framed with four PDO indicators and thirteen intermediate results indicators. These included milestones such as the development of a social registry and progress in data collection, as well as indicators of service delivery for the CCT program. Four PDO indicators measured the two intended outcomes of the PDO: (a) Percentage of households with periodically updated socio-economic survey information reported in the social registry, (b) number of beneficiaries of social safety net programs, (c) percentage of children ages 6–23 months from cash transfer beneficiary households consuming foods from four or more recommended food groups, measure the improvements in nutrition behaviors; and (d) number of villages in project districts where at least three nutrition convergence projects have been implemented, tracked geographical convergence of the nutrition focused interventions. Components (Original US$; Actual US$) Component 1: Developing the building blocks of a social protection system (US$3 million; US$3 million) 12. This component supported to develop a household targeting method, create a social registry, and create a beneficiary registry. Specifically, the project financed (a) two rounds of data collection for a social registry, including hiring and training of staff, and logistical and administrative costs; (b) a management information system (MIS) for the social registry; (c) development and operationalization of a targeting method; (d) establishment of an integrated beneficiary registry. Component 2: Conditional cash transfer program (US$16.70 million; US$13.57 million) 13. This component supported setting up and delivering a CCT program. The goals of the CCT program were to incentivize nutrition-promoting behaviors such as improving dietary quality (diversity and amount), increase the utilization of essential health and nutrition services, and contribute to poverty reduction in targeted areas. The benefit value was set at LAK 180,000 per individual beneficiary per month (around US$19 in 2021), which was about 14 percent of household consumption for the poor. This component financed activities across three subcomponents. Subcomponent 2.1 supported the development of the delivery mechanism, including (a) MIS to support implementation and monitoring; (b) an effective system to enroll eligible households; (c) a system for delivery of secure and timely cash payments; and (d) a system for grievance redress. Subcomponent 2.2 financed cash transfer benefits to households with pregnant women and children under age two and the service fee of a third-party payment provider. Subcomponent 2.3, which required close collaboration with MOH, and other nutrition convergence projects, supported the development of new SBCC modules, innovative audio- visuals tools to deliver these, and allowance paid to Village-based Facilitators (VFs). Component 3: Coordination, management, monitoring, and evaluation (US$7.30 million; US$7.30 million) 14. This component financed project management and coordination, monitoring, and evaluation of the multisector nutrition convergence approach through two subcomponents. Subcomponent 3.1 supported (a) staff costs for day-to-day implementation in MAF (communication, procurement, financial management, safeguards management, and coordination of the project), (b) training, (c) operational costs, and (d) implementation of key process monitoring tools of the CCT program. Subcomponent 3.2 supported multisectoral coordination efforts of the MPI, through (a) the development of guidelines for planning and coordination, (b) training and operational costs for the execution of the coordination, development, and implementation of M&E functions, (c) surveys and citizen engagement activities to assess operational effectiveness and impact of the convergence approach. This subcomponent supported an M&E system for the multi-sectoral convergence approach through five tools7 and financed the evaluation of the convergence approach. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) 7 Village score cards, iterative beneficiary monitoring (IBM), administrative data (sector and convergence projects’ MIS), spot checks, and key informant interviews. Page 4 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT 15. The project was restructured two times. The first restructuring, in September 2023, cancelled project funds (Category 2 cash transfers) under component 2 (SDR 2,382,686.95, equivalent to US$3,129,301) and revised the intermediate indicator thirteen. This cancelation was necessary given that the CCT program was delayed due to field restrictions caused by COVID-19 pandemic in 2020. The project started field enrollment and payment in March 2021, (instead of March 2020 as was initially planned). The second project restructuring, in March 2024, extended the project closing date from March 31, 2024, to August 31, 2024, to ensure the full use of savings in cash transfers (approximately US$960,000)8 for two additional cash transfer cycles (April-May and June- July) to be paid to about 22,000 beneficiaries. The second restructuring also included a reallocation of US$1,101,486 from Expenditure Category 2 to Expenditure Category 1 due to a projected overrun of Category 1 expenses. The project costs by component at approval and actual disbursements are in Annex 3. Cancellation and reallocation of project funds had no impact on the PDO, which was fully achieved.9 II. OUTCOME A. RELEVANCE OF PDO Rating: High 16. The PDO was highly relevant to the Government’s development agenda and the World Bank’s multisectoral nutrition strategy at appraisal and remained relevant during implementation. i) Relevance to the GoL objectives. The project responded to the GoL’s efforts to accelerate the reduction of stunting in children under five years. The project helped establishing the coordination and oversight mechanism for multisectoral program supported by a robust monitoring system. The project implementation provides a learning experience for the GOL in operationalizing a convergence approach coordinated by an oversight agency, such as MPI. The project also supported the National Social Protection Strategy – Vision 2030, adopted in 2020, aiming to expand and improve social protection and contribute to human capital development. The project was successful in establishing key building blocks for Social Protection and improving nutrition convergence, key tools to support the development of human capital and poverty reduction as outlined in the 8th National Social Economic Development Strategy (NSEDP) 2016–2020, and further articulated in the 9th NSEDP 2021-2025. The nutrition convergence program was included as one of the key commitments delivered by the Prime Minister at the 2nd Human Capital Summit in June 2024. Furthermore, the positive impact of the CCT in combination with other nutrition convergence interventions has served as evidenced to inform policy, as the NPAN 2021-2025 include social protection and the CCT as key elements of the government vision to combating malnutrition. ii) Relevance to the Country Partnership Strategy/Country Partnership Framework objectives. The World Bank supported the GoL in its efforts to improving nutrition to achieve children’s full potential and building resilience and mitigating risks, which are anchored in the ‘Building Assets of People’ Pathway of the Country Partnership Strategy (CPF) 2017 (Report No. 112241-LA).10 In the Country Partnership Framework (CPF) for FY17–FY22 (Report No. 110813-LA), 11 the project supported Focus Area ‘Investing in People’ and Objective 2.1 and 2.4 to reduce malnutrition and reducing vulnerability and inclusive access to social services. The CPF FY2023-2026 (Report No. 177311-LA) continued the focus areas of the previous CPF on reducing malnutrition and improving access to and quality of maternal and child health services, through Objective 5 on expanding use among women and children of practices and services beneficial to nutrition. 8 Savings originated due to the significant depreciation of the Lao Kip vis a vis the US Dollar that set in a few months after the beginning of the CCT program and continued thereafter. 9 For instance, while the periods of benefit payment were shorter for some beneficiaries, the number of enrolled CCT beneficiaries was surpassed. 10 Lao PDR: Systematic Country Diagnostic 2017. March 9, 2017. 11 Laos - Country partnership framework for the period FY2017-FY2021. Washington, D.C. World Bank Group. Page 5 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT B. ACHIEVEMENT OF PDOs (EFFICACY) Rating: Substantial 17. The efficacy of PDO achievement is Substantial. The PDO sought to achieve two project level outcomes – to enhance nutrition behaviors and to enhance nutrition convergence. With regard to enhancing nutrition behaviors, the project successfully supported the development and implementation of the CCT and developed and rolled out four new SBCC modules that improved nutrition behaviors. The CCT contributed to better nutritional outcomes by increasing the affordability of nutritious food and stimulated the increased demand for and utilization of essential health and nutrition services known to improve nutritional outcomes. Despite a slow progress at the beginning, the project enhanced nutrition convergence through the development of guidelines and funding of coordination meetings and capacity building for the nutrition committees at national, provincial, and district levels. It also incentivized the co-location of complementary health services, cash transfers, and livelihood activities to enable beneficiaries to access services and food resulting in significant impact in mitigating stunting during the project. These activities were supported by a set of monitoring tools developed to track convergence objectives. 18. The project was successful in achieving three of the four PDO indicators, exceeding their end target values. While PDOs 1, 2 and 4 were fully achieved, the final value for PDO 3 was slightly lower than the target. However, the midline survey12 showed that a larger share of CCT children 6-23 months were consuming foods from four or more food groups (37 percent) compared to children who did not receive the program until later (30 percent) due to the phased-in approach to enrollment to accommodate the impact evaluation design. Table 1. PDO Indicators Target PDO Indicators Baseline Achieved Value Value 1. Households with periodically updated socio-economic information in the 0 80 100 social registry (percentage) 2. Beneficiaries of social safety net program (number) 42,743 49,536 0 Beneficiaries of social safety net program - Female 38,460 47,799 3. CCT children 6-23 months consuming foods from four or more Not 40 37 recommended food groups (percentage) Recorded 4. Target villages where at least three nutrition convergence projects have 0 528 544 been implemented (number) Almost all intermediate indicators were achieved, and many of them were significantly surpassed. One exception was the “percentage of cash transfer reaching target areas within five days of scheduled payment date.” Frequent and timely delivery of benefits were sometimes challenging due to bottlenecks in finalizing beneficiary payrolls at different level of government (district, province, and central) and in payment reconciliation. The project has addressed the challenge by promoting digital payment and improving communication with beneficiaries, while it remains as a challenge to be addressed in the subsequent project (RRPMII). Table 2. Intermediate Results Indicators Intermediate Results Indicator Baseline Target Achieved Value Value Component 1: Developing the building blocks of a social protection system Development of a social registry No Yes Yes 12Data source for PDO 3 was the endline impact evaluation survey. However, the endline survey was postponed to RRPM II and as a result the midline survey is used to provide estimates. Page 6 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Percentage of households surveyed with the PMT questionnaire in target areas (percentage) 0 90 100 Component 2: Conditional cash transfer program Percentage of project beneficiary households who participate in community nutrition 0 90 98 sessions at least once per month. (Percentage) Percentage of cash transfers reaching target areas within 5 days of scheduled payment date. 0 80 36 (Percentage) Percentage of children under 2 years from cash transfer beneficiary households receiving growth monitoring and promotion services according to the standard monitoring schedule. 0 40 97 (Percentage) Number of female village facilitators trained to use new SBCC tools. (Number) 0 1,600 2,117 Percentage of grievances addressed and/or resolved within the stipulated service standards 0 90 98 for response times. (Percentage) Percentage of female direct cash transfer recipients who report increased decision-making 0 90 97 power on spending decisions for the household. (Percentage) Percentage of pregnant women from cash transfer beneficiary households with at least 4 0 60 94 ANC contacts during their pregnancy (Percentage) Component 3: Coordination, management, monitoring, and evaluation Number of spot checks implemented (Number) 0 3 3 Percentage of project districts convening a multisectoral nutrition coordination meeting at 0 90 100 least once every three months (percentage) Percentage of cash transfer monthly reports generated in a timely manner (Percentage) 0 90 100 Number of cross-sectoral surveys carried out to evaluate different convergence 0 2 2 interventions. (Number) 19. Beyond the indicators, evidence based on the impact evaluation shows positive impact of the CCT and nutrition convergence. The CCT program effectively improved selected nutrition outcomes (i.e., the CCT reduced wasting in children under two years old by 4.2 percentage point), and dietary quality (increased the share of children 6 –23 months old consuming foods from four or more recommended food groups by 10.7 percentage points). Further, the evaluation found that stunting and wasting among children under two years old would have been 7.7 percentage points and 3.4 percentage points higher, respectively, if the convergence interventions had not been put in place before the onset of COVID-19.13 Child dietary diversity and household diversity among the targeted beneficiaries also increased by 12.7 percent and 6.6 percent, respectively. Other stakeholders have also noticed the impact of the program, for instance, health care staff mention that immunization increased among non-Lao Tai ethnic groups known for traditional reluctance towards vaccination. 20. Furthermore, as a result of the project, Lao PDR now has a comprehensive national social registry, with high population coverage, which is regularly updated and used by several social programs. As envisaged in the PAD, the social registry was first successfully developed and tested in four project provinces in 2020. Upon satisfactory rollout, in 2022 the GOL requested to extend financing nationwide to all provinces, representing a breakthrough in the information management of the Decree 348 Poverty data relative to the pre-project situation. Two rounds of data collection were conducted in 2020 and 2022/2023,14 and regular updating is conducted to keep data accurate in project provinces. The registry includes 6.5 million individuals residing in 8,402 villages across 148 districts in eighteen provinces resulting in coverage of 85 percent of the population. The social registry and the introduction of the targeting method of social protection programs, play a significant role in implementing the Government’s nutrition 13 Results show that the interaction of the PRF and CCT, in addition to health supply and SBCC provided through HANSA, improved anthropometric measurements in children under two and five years old. The WASH intervention was not part of the impact evaluation due to late rollout. 14 RRPM financed data collection in four target provinces in the first round (2020). For the second round in 2022/23, the project financed partly the nationwide data collection (i.e., enumerator training and logistic costs). Page 7 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT convergence approach and is also used by development partners to plan and deliver interventions. Currently, the CCT and PRF interventions at MAF, and the subsidized health insurance program at MOH and four development partners have used the social registry for planning and implementation of programs.15 Justification of Overall Efficacy Rating 21. The overall Efficacy rating is Substantial. Three PDO indicators and all intermediate indicators were achieved (and the fourth PDO reached over 90% of the target value), and some of them significantly surpassed end target values. C. EFFICIENCY Rating: Substantial 22. Project investments generated substantial efficiencies, though not all can be quantified. While it will take time to realize the full potential benefits of the project investments, the modernization of the administration of poverty data (under Decree 348) and the development of the CCT resulted in efficiency gains across several dimensions, this include: (i) establishment of a social registry to modernize Decree 348 Poverty data administration and management improved efficiency for administrators and beneficiaries, and (ii) although the cost-effectiveness of the CCT program was modest given the large initial costs, the program became a key contributor to addressing stunting and supported poor households during periods of high inflation. 23. The cost efficiencies generated by the Social Registry outweighs the costs of developing and operating the system over time. The cost of developing the Social Registry is reasonable in relation to the volume of beneficiaries it can serve and is comparable internationally. The estimated cost at US$1.6 per household16 is minor relative to the savings generated by improved administration of data. 17 As a comparison, Türkiye’s Integrated system cost US$1.3 per household, excluding training cost. Some of these cost efficiencies include reducing paper and storage costs across all districts in the country; identifying objectively potential beneficiaries for social protection and disaster response programs;18 preventing, detecting, and remedying data collection errors; and reducing processing time and cost for monitoring and reporting. It is expected that overall and over time resource savings are substantially higher than the US$3 million invested in hardware, designing, and developing the system, and providing training to operate it. Table 3: Cost breakdown for the Social Registry Item Amount (US$) Design and development of database and MIS 766,000 Computers and other hardware 632,340 Training and technical support19 1,380,000 Data collection (per diem and logistics)20 675,100 Total 3,453,440 24. Although the CCT program required large initial investments to set up, efficiency gains will be possible in the medium- and long-term. The cost-effectiveness analysis shows that the CCT program led to a 0.03 percentage point reduction in stunting per US$100 spent (or a cost of US$4,430 per case of child stunting averted). The Cost 15 These include Asian Development Bank, the Food and Agriculture Organization of the United Nations, World Food Program, and the United States Agency for International Development. 16 Estimate based on the costs to establish the social registry and conduct data collection (except training), and the 1.2 million households enumerated. 17 Estimating cost efficiency of the SR presents a challenge given that estimating and comparing registries is not straightforward. Registries incur different types of administrative costs, and the costs are spread out over time. 18 Potential beneficiaries may have been left out without the development of the Social Registry. 19 Technical support includes hiring of IT officers at central and provincial level during project implementation. 20 Data collection expenses for two rounds of data collection. Page 8 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Effectiveness Analysis (CEA) estimate for the CCT is probably an underestimation of the cost-effectiveness of the program given that program’s impact is only measured over two years, but costs are included for goods that can continue to be used over many more years. The CEA estimate does not exclude costs that may overlap with other programs in the future (e.g., new programs utilizing the Social Registry and targeting method to identify beneficiaries). Moreover, the CCTs aim to achieve objectives other than reducing malnutrition. CEA estimates for the CCT over a longer period are more favorable as they suggest greater cost-effectiveness due to the lower administrative cost of implementing the program and an expected higher significant impact on stunting.21 D. JUSTIFICATION OF OVERALL OUTCOME RATING 25. The overall rating is Satisfactory based on its High relevance, Substantial efficacy, and Substantial efficiency. 26. The relevance of the project design is rated high. The development objective of the project was and remains highly relevant to Lao PDR development priorities. High relevance rating reflects appropriate activities to develop SP building blocks, a conditional cash transfer program, and improving convergence coordination by supporting the complimentary delivery of health, cash transfers, and livelihood programs. 27. Efficacy is rated Substantial. Achievement of the objective to enhance nutrition behaviors is rated Substantial, particularly regarding the implementation of the nutrition-sensitive CCT, which employed an objective targeting mechanism, and continued actively searching and enrolling new pregnant women throughout the project implementation. Achievement of the objective in enhancing nutrition convergence is rated Substantial. Most target villages received at least three nutrition specific or nutrition-sensitive interventions resulting in statistically significant impacts to mitigate stunting and, with some challenges in implementation, monitoring tools tracked and informed convergence activities effectively. 28. Efficiency is rated Substantial. Over time, the cost efficiencies that were generated by the social registry will outweigh the costs of developing and operating the system. Likewise, the initial investments in service delivery of the CCT and capacity will be more cost-effective as the program scales up in urban and peri-urban areas and the proportion of administrative to transfer costs (the amount of money transferred to families who have met the program conditions) decreases further. E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 29. The project targeted the most vulnerable population group – poor ethnic women – and activities were gender informed. The project supported a gender-sensitive intervention by targeting pregnant women and providing benefits directly to women. The CCT program selected women as recipients of the cash benefits (96 percent of benefit recipient were women) with the objective to improving women’s decision-making power on spending decisions within the household. Results from the impact evaluation show that 97 percent of beneficiary women have improved their decision-making power in their household. This can be attributed to the communications and information activities conducted during enrollment and the SBCC sessions. The project also considered gender- sensitive factors to select CCT frontliners. More than half of CCT frontliners and Village Facilitators were ethnic women, which created favorable conditions for participation in the program activities (e.g., facilitating communication in local ethnic languages). Finally, the MIS allows all indicators to be disaggregated by gender. Institutional Strengthening 21Excluding convergence and M&E activities, transfer cost represents nearly half of project financing (48 percent), followed by administrative cost (35 percent) and targeting (17 percent). Page 9 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT 30. The project built the capacity of MAF and MPI staff responsible for the project operations at central and local offices. Throughout implementation, capacity-building activities were continuously implemented with an emphasis on transferring knowledge to operate the MIS, improve payment and grievance redress systems, and generally seeking to improve the business processes of the CCT and M&E for convergence. Despite some challenges at the beginning of the implementation, the project established regular coordination meetings at national, province and district level that brings different sectors to discuss services relevant to nutrition improvement. Furthermore, the World Bank team organized study tours for government counterparts to visit countries that operate interventions like the CCT. Key activities such as trainings, support to develop operational manuals, communication strategies, and M&E carried out during project implementation helped build institutional capacity for social protection and nutrition convergence coordination. Poverty Reduction and Shared Prosperity 31. The interventions financed by the project are expected to contribute to sustained impact of the social protection system on poverty reduction in the medium to long term. During the outbreak of the COVID-19 and during periods of high inflation, the GOL was able to provide income support to poor and vulnerable households beneficiaries. This economic support mitigated the deepening of poverty in target areas. Moreover, the strong focus on the poor and ethnic groups (non-Lao Tai made about 85 percent of all CCT beneficiaries) through rigorous targeting method further emphasized the project’s focus on supporting the poorest households within target areas. III. KEY FACTORS AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 32. A critical factor affecting implementation at the preparation stage of the project was the ex-ante coordination of various World Bank projects to co-locate their interventions in target areas. The dialogue on nutrition and coordinated approach for rolling out interventions in the same target areas was influenced by the emerging evidence from countries tackling stunting in a convergent manner, strong analytical work in Laos,22 and the nudging of the Country Management Unit (CMU) which facilitated coordination among relevant Global Practices (GPs to co- locate their pipeline projects). Furthermore, coordination with other development partners interventions (e.g., Agriculture for Nutrition funded by the International Fund for Agricultural Development) ensured synergies while avoiding the implementation of similar interventions in the same geographic areas. B. KEY FACTORS DURING IMPLEMENTATION 33. During implementation, the active involvement of local stakeholders and continuous support of the central level government agencies such as MAF and MPI were important factors. Key activities which brough together central and local level stakeholders were the annual and semi-annual project and nutrition convergence coordination meetings at national, province and district level, which increased awareness of the CCT and nutrition convergence activities, gained local level support for project activities, and discussed implementation issues and challenges. At the village level, Village Nutrition Day, a designated day in each village where convergence interventions deploy their activities in a coordinated manner, 23 helped demonstrate the importance of village level convergence activities. Further the implementation of the CCT and nutrition convergence activities required the creation of village CCT sub-committees by MAF through ministerial regulation.24 Through the issuance of this circular/decree, the sub- committee supported implementation by establishing communication channels to raise awareness and provide 22 Osornprasop, Sutayut; Pimhidzai, Obert. Nutrition in Lao PDR: causes, determinants, and bottlenecks (English). Washington, D.C.: World Bank Group. 23 The Village Nutrition Day was piloted in sixty villages across the twelve target districts. 24 MPI employed the CCT coordinator as the Nutrition Convergence coordinator in most target villages. Page 10 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT information about the CCT to villagers, provide updates on the status of program activities, monitor beneficiaries, and collect feedback and complaints from the community. 34. The COVID-19 disruptions and inflation created important challenges in implementation. The COVID-19 disruptions created difficulties to carry out project operations in the field and delayed project rollout by one year. For the CCT implementation, this resulted in limited in-person training of CCT staff at province and district level, difficulties to enroll eligible pregnant and children under two years on time, and ultimately a shorter time for CCT implementation. This in turn meant that cash transfers under Category 2 funds were not fully utilized. For convergence activities, the COVID-19 disruptions postponed quarterly district meetings, and resulted in cancellation of in-person supervision and monitoring activities. Moreover, high levels of inflation affected Laos during project implementation, the main challenges were related to access to fuel to conduct registration and updates to the social registry and monitoring activities. 35. Joint activities undertaken by MAF and MPI often required lengthy coordination which resulted in considerable delay. Project activities were undertaken primarily by the Project Management Unit (PMU) under the MAF. However, some activities, such as monitoring of convergence program, were under the purview of MPI. Agreeing on scope of work, activity costs, and budget management took time and resulted in some delays which had subsequent implications on project implementation. 36. Cross-project coordination was a challenge in implementing some nutrition convergence activities, especially at the beginning of the project implementation. While co-location of projects was achieved, inter-program coordination took some time to be effective. It was not until early 2023 that MPI played a larger coordinating role across programs. Initially, the coordination meetings focused on sharing information with limited use of monitoring data to improve implementation. Technical support and cross-country learning helped building MPI capacity to perform effective coordination function. While MPI has been able to continue this role in the RRPM II, the lessons learned from early implementation experiences were useful in improving the coordination mechanism in RRPM II. The coordination on SBCC and delivery platforms also proved to be challenging. Each convergence project developed their SBCC modules, however, leveraging their respective delivery platforms using pre-established community structures proved to be a challenge. Under each project, different delivery platforms involved project specific frontline workers, however only HANSA and RRPM collaborated and used the same VFs to support the CCT and SBCC delivery. Coordination to deliver SBCC topics could have been better as beneficiaries reported receiving repetitive SBCC content over a short period of time.25 37. Project staff turnover affected project activities at the central level for implementation of the CCT. Although the PMU remained well staffed during project implementation, key roles for social and communication positions were vacant for an extended period. Provincial and district level turnover was less affected. By design, most provinces and district level teams housed appropriate number of project consultants on key positions (IT, management, and monitoring). Local staff had to take on additional tasks while also having to carry out their project activities. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 38. A comprehensive M&E plan was designed to monitor the implementation and impact of the multisectoral nutrition convergence approach. An M&E framework was designed to track the convergence of nutrition interventions at the village level, report on nutrition indicators, and quantify the impact of the convergence approach. The framework outlined indicators, tools, information sources, timing, responsibilities, and reporting. Five main tools were developed 25 Feedback received during ICR interviews with beneficiaries. Page 11 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT to monitor the delivery of interventions of the convergence approach: village score cards, iterative beneficiary monitoring (IBM), administrative records from project MIS, spot checks, and key informant interviews. The impact evaluation design leveraged the staggered rollout of the different projects in convergence districts, allowing for embedding an experimental impact evaluation design. Three impact evaluation surveys were anticipated to be deployed, corresponding to the baseline, midline, and end line of the convergence approach implementation. Lao is among a very few countries (aside from Rwanda and Cambodia) that has robust impact evaluation design for multisectoral convergence program, providing significant contribution to generating credible evidence on the effects of multisectoral program in addressing malnutrition. 39. All the M&E activities and surveys, except the end-line evaluation, were completed within the project implementation timeline. Village score cards served its purpose of reporting on interventions being delivered in each of the target villages. A total of eight surveys, five IBMs and three spot checks, were planned to be deployed to track implementation of activities and assess beneficiary perception and participation in program activities. Spot checks were used to validate if projects are functioning as intended and to troubleshoot problems related to the program’s processes. For instance, the spot checks assessed whether CCT beneficiaries were complying with the requirements of the CCT program and receiving grants on time. The programs’ MIS served its purpo se as a monitoring tool. Specifically, the social registry and the program MIS, known as Poverty Eradication and Development Information System (PEDIS)26 established at MAF, provided regular administrative reporting about implementation of convergence interventions and CCT-specific output, providing stakeholders the ability to extract relevant data, as needed. Key informant interviews were also conducted to have an in-depth understanding of project actors (i.e., community mobilizers, village facilitators, district convergence committee) perspectives on implementation process. Moreover, a process evaluation towards the end of the project was completed to examine the business processes of the CCT program. 40. Rather than conducting the end-line evaluation survey in December 2023, it was decided that it would be more valuable to conduct the evaluation by early 2025, after the project’s completion. To assess the impact of the nutrition convergence approach, a baseline survey was conducted in October 2020 and a midline survey in November 2022. Originally, the endline survey was planned for December 2023. However, considering the proximity between midline and endline surveys, the potential impact on utilization and outcomes of nutrition and health services was likely limited. Instead, it was decided to provide allow more time in between evaluation surveys and to use the mid- line evaluation results to report on PDO indicator 3. M&E Utilization 41. The M&E results informed decisions and adjustments throughout project implementation. Monitoring tools provided information about implementation issues of the convergence interventions, including convergence at the village level, and feedback from beneficiaries about activities introduced by the projects. Although with some delay, the government was able to use some of the findings to inform implementation. For example, corrective measures were taken after program implementers received feedback that value of the CCT benefit had eroded due to inflation.27 IBMs and spot checks identified issues in enrollment procedures for CCT beneficiaries (lack of identification and supporting documents), challenges of CCT frontliners in their role of providing information about the projects’ features and nutrition knowledge (that is, challenges to provide appropriate nutrition advice and referral to health centers), and low awareness of activities to improve gender relations, which the government tried to address. Furthermore, the baseline and mid-line surveys presented key characteristics and trends of beneficiaries and non- beneficiaries and assessed the impact of the convergence strategy. Although, the M&E findings were valuable for 26 Access through the following domain: https://pedis.maf.gov.la. 27Until then the value of the grant had not been adjusted, despite inflation, but corrective action entailed modest upward revisions of the benefit amount. Page 12 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT improving implementation and assessing impact, better dissemination and follow-up on corrective actions could have maximized the utilization of M&E results. Justification of Overall Rating of Quality of M&E 42. M&E is rated Substantial. An M&E system was embedded from the project design stage to track the performance of convergence projects’ activities and the programs it supported. The project benefited from rich quantitative and qualitative feedback collected from beneficiaries, frontliners, and local government officers. Importantly, the evaluation findings provide valuable information and served as key evidence to continuing supporting the convergence approach and expanding it to other provinces. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 43. Environment. The project Environmental Assessment Category is B-Partial Assessment. Environmental Assessment (OP/BP 4.01) was triggered at project appraisal due to its potential socioeconomic impact on vulnerable groups. Given the nature of project activities and locations, there was no activity with potential adverse risks and impacts on the environment. The environmental performance was rated satisfactory for most of the implementation period. The project environmental risk at the ICR is low. 44. Social. Throughout implementation, the project worked towards inclusion of ethnic groups as well as gender and cultural sensitivity. The project prepared and used key elements of the Social Assessment into the overall project design and implemented appropriately (for example, consultations with non-Lao Lum ethnic groups and information dissemination in ethnic minority languages). Project activities tried to address cultural and language challenges by hiring local frontliners and providing training and in-time technical assistance on gender and inclusion of non-Lao Lum ethnic groups. Delivery of benefits to each village through an independent payment provider gave accessibility to all beneficiaries, including non-Lao Lum ethnic group beneficiaries living in remote villages. Focal persons were assigned to support the mainstreaming of gender and ethnic groups in operational information systems, operations manual, and social marketing. Moreover, the tracking and reporting of the CCT systems, including the grievance redress mechanism, enabled using sex- and ethnicity-disaggregated data. 45. Financial management (FM). At appraisal, the project FM risk rating was High. MAF FM capacity, experienced FM staff, systems, and documented procedures, were considered relatively weak for implementing a CCT program, given the project complexity and geographic spread. The following actions were agreed upon to mitigate the risks: (a) developed an operations manual and update existing FM manuals to be tailored for CCT payouts; (b) assign FM personnel for the project and complement with FM consultants; (c) use Complete and Comprehensive Program for Accounting Control (ACCPAC) software; (d)provide training to staff; (e) prepare an annual budget and work plan to be approved by the World Bank; (f) conduct annual audits by an independent firm; and (g) prepare and submit quarterly IFRs to IDA no later than 45 days after the quarter ends. 46. During implementation, lack of FM capacity, affected project implementation. FM arrangements and maintenance of accounting records were a challenge during implementation. Although, the World Bank team provided FM training to project consultants, operational issues such as delays in payment processing and payout and liquidation, delay in submitting documentation of incurred expenditure, and overall poor maintenance of accounting records limited better accounting, planning, and use of funds. In some instances, CCT payment periods were combined and delivered late. Furthermore, coordination with regards to FM between MAF and MPI were also challenging. Funds allocated for MPI were used for conducting MAF-related activities leaving limited funds for executing monitoring tools. As a result, the FM rating remained Moderately Satisfactory until project completion. 47. Procurement: At appraisal, the project procurement risk was rated Moderate based on the capacity in implementing World Bank procurement rules and procedures and risk assessment carried out in June 2018. During Page 13 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT implementation, PMU adopted the project operational manual (POM) including a detailed procurement section. The PMU recruited qualified procurement consultants to manage procurement activities. The World Bank team provided training to the PMU on procurement rules and procedures and provided hands-on support on request. Despite minor delays, the PMU effectively used the POM, procurement training was provided to staff, and there was assistance to procurement consultants who were recruited to accelerate and keep the project implementation progress on track. Therefore, the overall procurement performance maintained a “Satisfactory” for most of the project duration. C. BANK PERFORMANCE Quality at Entry 48. The World Bank team actively engaged in policy dialogue and TA in nutrition in Laos, which became instrumental in developing the project. During preparation, the World Bank team facilitated partnership among MAF and MPI and provided technical assistance. The Advisory Services and Analytics (ASA) on social protection and on nutrition (P160711, P165482) contributed to the policy dialogue on social assistance and helped developed a common M&E framework for nutrition convergence. The project preparation team ensured that the project design was relevant and met the GOL’s development priorities and the World Bank’s CPF at the time. The operation is built on international evidence which shows that efforts to accelerate stunting prevention are more effective if nutrition- specific and -sensitive interventions are implemented in a convergent manner. CMU encouraged collaboration across relevant GPs to identify opportunities for co-locating the project areas. The project design also took into consideration the recommendations from peer reviewers, and lessons learned from other World Bank- and donor- supported projects. The project was subject to a quality enhancement review process and the preparation team identified the appropriate risks and incorporated design features to mitigate them. Based on this, the quality at entry is rated Satisfactory. Quality of Supervision 49. The World Bank team provided strong and proactive support to MAF and MPI throughout project implementation. The World Bank team conducted regular implementation support missions, including a midterm review, and this was supplemented by interim technical support missions as needed. The World Bank team reported the project progress toward achieving its objectives, and progress by each component, performance on fiduciary management, compliance with safeguards, and kept the government counterparts and the World Bank management informed of progress and key issues. ASA resources were used to provide TA for activities related to CCT and nutrition convergence. A major supervision challenge was the travel restrictions due to the COVID-19 pandemic. The World Bank team was not able to provide direct support to the PMU when it wanted to initiate the social register survey and CCT for the first time. Although the team provided supervision and support remotely, these activities were delayed as discussed above. Nevertheless, the World Bank team based in Lao PDR office was instrumental to continue providing timely support to the PMU with remote support from the broader team. 50. Beyond supervision, the project team supported greater coordination with the other World Bank nutrition convergence projects to achieve the PDO. Specifically, during supervision, the World Bank team actively promoted the availability of health services for CCT beneficiaries in close coordination with HANSA. More broadly, for nutrition convergence, the team, with support from CMU, conducted a regular meeting among different nutrition convergence projects to align efforts toward the same goal of addressing child malnutrition. By coordinating with other projects, the project helped to integrate nutrition convergence indicators into the other projects. An example is the CLEAR project, which includes indicators on the use of the Child Scorecard. Justification of Overall Rating of Bank Performance Page 14 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT 51. Considering the World Bank’s sustained efforts in supporting project implementation and making relevant and timely interventions to achieve high levels of efficacy, the World Bank’s performance is rated as Satisfactory. The World Bank supported the government, at the central and local levels, to overcome the delay in the first years of implementation due to COVID-19; enabled vendors and service provider firms to build a new MIS and payment systems by advising the PMU on time and in an effective manner; promoted coordination across convergence projects and implemented a sound M&E system to measure project outcome and inform implementation. D. RISK TO DEVELOPMENT OUTCOME 52. Financial and government ownership risks. Given the IT linkages between the social registry and the PEDIS, it is expected that the latter can support management of other social protection interventions nationwide. However, a prerequisite to continue using the social registry for coordination, planning, and identification of beneficiaries effectively is the timely update of household information in the system. Information updating is regularly done for households in the project target districts, but updating of information is a challenge in non-target areas. Updating the poverty status of households is done once a year, creating a burden because of the large volume of information that should be processed at the district level every year. Currently, the PEDIS supports the CCT program and data from the convergence approach. In the future, PEDIS needs to be linked and be able to share information with other registries, support cross-verification with the other government databases such as the Civil Registration and Vital Statistics (CRVS) in the Ministry of Home Affairs, and build faster connections with payment delivery providers. The risks identified may limit the benefits of the information systems. These financial risks will be mitigated by the RRPM II and investments from other development partners (e.g., Asian Development Bank) which also support the development, management, update and use information systems as foundational tools for implementing social protection programs efficiently. 53. Sustainability. Sustainability for this project can be assessed across three dimensions: institutional/operational, human development, and fiscal. The project has established key social protection building blocks (i.e., Social Registry, MIS, payment system, targeting system and M&E) to support poor and vulnerable households. These investments are expected to be sustained and enhanced in the short- and medium-term as the government use them to scale up the interventions and support the poor, and to respond to disasters in a more effective and efficient manner. The significant impact on stunting mitigation will be sustained among beneficiaries whose lives are already on a better trajectory with higher chances of better educational outcomes, jobs, and earnings. While evidence of the CCT and the convergence approach provides a basis for the government to scale it up, the fiscal context presents a risk for these investments to be sustained over time. In the near term, the World Bank and other development partners will have to continue to support these systems to combat malnutrition and poverty in Lao PDR. Despite these efforts, the sustainability of the activities introduced remains low because of the government’s relatively weak fiscal outlook. Given the current fiscal situation, in the short term, it is unlikely that the Government will significantly allocate budgetary resources for the expansion of the interventions. V. LESSONS AND RECOMMENDATIONS 54. The government commitment, and World Bank support, to implement a multi-sectoral approach to accelerate stunting reduction has showed promising early results. Against the backdrop of the COVID-19 disruptions and rising inflation, the convergence of interventions has showed an important impact in terms of mitigating worsening of malnutrition outcomes. Lessons learned from this project, collected through the monitoring tools and the rigorous impact evaluation, have informed the design of the second phase of nutrition convergence.28 Notably, convergence 28All four projects, RRPM II, HANSA II, CLEAR, and WASH project, have used findings and data generated from RRPM to enhance their follow-up operations. Page 15 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT projects have improved coordination to expand to new target areas, enhancements to the delivery platform and village coordination through local committees and secretaries. 55. Coordination for convergence, appropriate local funding, and human resource capacity are critical determinants of success. The overarching national nutrition policy advocates for the involvement of national and subnational levels, and the engagement of multiple sectors, to combat malnutrition. The Nutrition Convergence has led to several accomplishments (i.e., regular coordination meetings at national, province and district level, nutrition convergence coordination guidelines, implementation of monitoring tools). There are emerging lessons learned in the operationalization of the nutrition convergence program: (i) data-driven and action-oriented coordination meetings are important to ensure its effectiveness in improving program implementation; (ii) adequate resources and capacity of provincial and district coordination team are critical to optimally perform its oversight, monitoring and troubleshooting functions to resolving critical bottlenecks; (iii) clarity on the complementarity between different coordination mechanisms (District Convergence Committee vs District Nutrition Committee) to ensure synergy; and (iv) community engagement is essential to facilitate collaboration across different community-level workers and coordination of services delivery to reach the most vulnerable households. Recommendations 56. Consider cash transfers indexation to prevent erosion of benefit purchasing power by inflation. Since project appraisal in 2019, the CCT program increased the amount of benefit twice, just before program launch in 2021 and late in 2022, but its real value remains lower than what it was in 2021 at the time of its launch: between 2021 and 2023, the nominal value increased by 11 percent, but the real value decreased by 47 percent. The decision to increase the benefit value was ad hoc and based on the availability of funds. Given the country’s vulnerability to shocks, including inflation, policy makers can consider establishing a protocol to systematically adjust the benefit, as appropriate. Furthermore, the balance between maintaining purchasing power and fiscal sustainability should also be carefully pondered, along with considerations for the “cost of inaction” (the plausible economic gains or forgone economic multipliers due to non-adjustment of the real benefit value).29 57. Consider expanding the interoperability of the social registry and CCT beneficiary registry with the CRVS. Connecting social protection management information systems (social registry and beneficiary registry) with the CRVS, and other administrative databases, can play a crucial role in ensuring the well-being and inclusiveness of individuals across various socio-economic spectrums, while promoting the efficiency of the social registry operations for sustainability. Effective and seamless data exchange between these systems is pivotal for enhancing service delivery, policy formulation, and monitoring of social protection programs. For instance, if social protection MIS are interoperable with CRVS, programs can have real time access to new birth registration, and in turn, provide timely access to health and nutrition services, and social protection benefits. Furthermore, interoperability with other databases can support improved data quality, reduction in the amount of information requested from individuals, and early verification of program eligibility and faster enrollment processes. 58. Consider increasing the engagement of National Nutrition Committee (NNC) Secretariat in the nutrition convergence program coordination. Although MPI is neutral agency and has convening power for coordinating multisectoral program, it would need technical support to effectively lead the coordination and discussion at substance level. The Department of International Cooperation (DIC) at MPI has mostly conducted program-based coordination, not a policy or sector wide coordination. Furthermore, MPI-DIC has limited capacity and resources - limited number of staff dedicated for convergence program – while the NNC Secretariat is better equipped with staff and resources as well as nutrition knowledge to facilitate the technical and policy discussions. 29“Gentilini, Ugo; Iyengar, Hrishikesh TMM; Valleriani, Giorgia; Aziz, Sheraz; Arimbi, Hana Rakhma; Miranda Nogueira, Jusaine L is; Trujillo, María Angélica; Cheng, Calvin. 2024. Keep the Pace: How Inflation Erodes Cash Transfers and What to Do About it. Page 16 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT 59. Consider engaging the Planning Department of MPI to support the integration of the nutrition convergence program into local government planning and budgeting. In addition to the work being done with the DIC and the Development Research Institute (DRI) in MPI, for coordination and M&E respectively, the Planning Department of MPI could be more engaged in the nutrition convergence program. This department, as part of their mandate, supports the regular planning and budgeting process at the provincial and district levels. This will help with the prioritization of nutrition services in the local government plan and budget, which in turn helps institutionalizing the convergence program for sustainability. The Planning Department will also play a significant role in the development of nutrition resources tracking, in collaboration with Ministry of Finance, to better understand the resources going to nutrition and evaluate the spending efficiency of the limited resources. Page 17 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS @#&OPS~Doctype~OPS^dynamics@icrresultframework#doctemplate A. RESULTS FRAMEWORK PDO Indicators by Outcomes Objective 1: Develop a targeting, information, and monitoring system for social protection programs Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year 0.00 Sep/2018 80.00 Dec/2023 100.00 Feb/2024 Indicator 1: Percentage of Comments on achieving targets Numerator: Number of households in the target area for whom the socio-economic PMT questionnaire has households with periodically updated been administered at the household level and data migrated to the social registry. The PMT will be applied socio-economic survey information every two years and information will be available in the social registry no later than 2 months after reported in the social registry. implementation of the survey. Denominator: Total number of estimated households living in the target area. (Percentage) The estimated number of overall households living in the target area would come from population estimates. Objective 2: Improve nutrition behaviors Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Beneficiaries of social safety net 0.00 Nov/2018 42,743.00 Dec/2023 43,597.00 Dec/2023 programs (Number) Beneficiaries of social safety 0.00 38,460.00 39,302.00 net programs - Female (Number) Indicator 3: Percentage of children 6– 0.00 Sep/2018 40.00 Dec/2023 36.10 Jun/2023 23 months from cash transfer Comments on achieving targets Numerator: Children, 6-23 months old from cash transfer beneficary housholds who are reported to have beneficiary households consuming consumed at least four out of the seven reccomended food groups (using a classification of food groups based foods from four or more on international recommendations) during the 24 hours preceding the time of interview. Denominator: Total recommended food groups. number of children 6-23 months from cash transfer beneficary housholds in the area of intervention. (Percentage) Objective 3: Enhance convergence of the multisectoral nutrition approach in targeted provinces Page 18 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Indicator 4: Number of villages in 0.00 Oct/2018 528.00 Dec/2023 544.00 Dec/2023 project districts where at least three Comments on achieving targets Number of villages in the target districts in which three or more projects (from health, WASH, nutrition convergence projects have PRF, IFAD financed project, and this project) are implementing their respective project been implemented. (Number) activities. IFAD and PRF will be implemented in separate villages. Intermediate Indicators by Components Component 1: Developing the building blocks of a social protection system Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year No Sep/2018 Yes Dec/2023 Yes Dec/2023 Comments on achieving targets This indicator is met if the social and beneficiary registry information systems are developed and operational Indicator 1: Development of a social where developed means that the information systems software are developed and operational means that they registry. (Yes/No) are working on line. The information collected as part of the socio-economic survey will be regularly migrated into the social registry, and for the beneficiary registry in the aea of interventions information on CCT program beneficiaries and on beneficiaries of WB financed nutrition convergence programs will be reported. 0.00 Sep/2018 90.00 Dec/2023 100.00 Dec/2023 Indicator 2: Percentage of households surveyed with the PMT Comments on achieving targets Numerator: Number of households surveyed with the PMT questionnaire in the target areas Denominator: questionnaire in target areas. Number of households living in the target area. The estimated number of overall households living in the target (Percentage) areas would come from population estimates and from the household level survey collected for the overall nutrition convergence approach impact evaluation every other year. Component 2: Conditional cash transfer program Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Indicator 3: Percentage of project 0.00 Sep/2018 90.00 Dec/2023 92.24 Dec/2023 beneficiary households who Comments on achieving targets This information is from the CCT MIS. Since the MIS data cannot differentiate those who participate in community nutrition sessions at least once per month. actually received the services and those who could not receive the services due to a lack of (Percentage) services, the record reported here could be higher than the actual rate. Page 19 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT 0.00 Sep/2018 80.00 Dec/2023 35.55 Dec/2023 Indicator 4: Percentage of cash Comments on achieving targets This indicator is meant to capture the efficacy of project delivery systems, specifically payment systems. A transfers reaching target areas within schedule for cash transfer payments will be developed once all systems are in place, taking into consideration 5 days of scheduled payment date. the time it takes for each step to be completed, to the point where the cash is made available for collection by (Percentage) its intended beneficiary. This indicator will only measure the timeliness of the cash transfer in terms of when it is made available to the beneficiaries (in cash or as electronic payment). Cash collection by beneficiaries will not be measured by this indicator. Indicator 5: Percentage of children 0.00 Sep/2018 40.00 Dec/2023 97.08 Dec/2023 under 2 years from cash transfer Comments on achieving targets This information is from the CCT MIS. Since the MIS data cannot differentiate those who beneficary housholds receiving growth monitoring and promotion actually received the services and those who could not receive the services due to a lack of services according to the standard services, the record reported here could be higher than the actual rate. monitoring schedule. (Percentage) Indicator 6: Number of female village 0.00 Jul/2018 1,600.00 Dec/2023 1,846.00 Dec/2023 facilitators trained to use new SBCC Comments on achieving targets The new SBCC tools are being developed. tools. (Number) 0.00 Jul/2018 90.00 Dec/2023 100.00 Dec/2023 Indicator 7: Percentage of grievances Comments on achieving targets As discussed in the GRM section, the stipulated service standards for response times are addressed and/or resolved within the stipulated service standards for currently being reviewed and updated in the Cash Transfer Manual, and thus the actual data response times. (Percentage) could not be captured in the current reporting period. It is expected to be repoted from the next reporting period. Indicator 8: Percentage of female 0.00 Oct/2018 90.00 Dec/2023 97.50 Dec/2023 direct cash transfer recipients who Comments on achieving targets This indicator refers to the CCT beneficiaries and will only be reported after the impact report increased decision-making power on spending decisions for the evaluation mid-line will be collected in summer 2022. household. (Percentage) Indicator 9: Percentage of pregnant 0.00 Jul/2018 60.00 Dec/2023 94.72 Dec/2023 women from cash transfer beneficary Comments on achieving targets This information is from the CCT MIS. Since the MIS data cannot differentiate those who housholds with at least 4 ANC contacts during their pregnancy. actually received the services and those who could not receive the services due to a lack of (Percentage) services, the record reported here could be higher than the actual rate. Component 3: Coordination, management, monitoring and evaluation Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Page 20 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Result Month/Year Result Month/Year Result Month/Year Result Month/Year 0.00 Sep/2018 3.00 Dec/2023 1.00 Dec/2023 Indicator 10: Number of spot checks Comments on achieving targets Although COVID-19 delayed the implementation of a systematic spot check, the first spot implemented. (Number) check was implemented. Indicator 11: Percentage of project 0.00 Sep/2018 90.00 Dec/2023 100.00 Dec/2023 districts convening a multisectoral nutrition coordination meeting at least once every three (3) months. (Percentage) 0.00 Jul/2018 90.00 Dec/2023 100.00 Dec/2023 Indicator 12: Percentage of cash Comments on achieving targets The PMU prepares the report monthly using the CCT MIS. However, it is currently relying on transfer monthly reports generated in a timely manner. (Percentage) the manual process of exporting and creating a report. The PMU is in the process of automating the reporting functions of the MIS. Indicator 13: Number of cross- 0.00 Nov/2018 3.00 Dec/2023 2.00 Dec/2023 sectoral surveys carried out to Comments on achieving targets The objective of this indicator is to report on the evaluation of the overall nutrition convergence approach. The evaluate different convergence number of cross-sectoral surveys refers to independent surveys carried out for the purpose of evaluating the interventions. (Number) impact of the convergence approach. Page 21 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Objective 1: Develop a targeting, information, and monitoring system for social protection programs 1. Percentage of households with periodically updated socio-economic survey information reported in the social registry. PDO Indicators 2. Beneficiaries of social safety net programs 3. Percentage of children 6–23 months from cash transfer beneficiary households consuming foods from four or more recommended food groups. Objective 2: Improve nutrition behaviors 3. Beneficiaries of social safety net programs 5. Indicator 3: Percentage of children 6–23 months from cash transfer PDO Indicators beneficiary households consuming foods from four or more recommended food groups. Objective 3: Enhance convergence of the multisectoral nutrition approach in targeted provinces 4: Number of villages in project districts where at least three nutrition PDO Indicators convergence projects have been implemented. Page 22 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Component 3: Coordination, management, monitoring and evaluation 10: Number of spot checks implemented. 11: Percentage of project districts convening a multisectoral nutrition coordination meeting at least once every three (3) months. Intermediate Results Indicators 12: Percentage of cash transfer monthly reports generated in a timely manner. 13: Number of cross-sectoral surveys carried out to evaluate different convergence interventions. Component 2: Conditional cash transfer program 3: Percentage of project beneficiary households who participate in community nutrition sessions at least once per month. 4: Percentage of cash transfers reaching target areas within 5 days of scheduled payment date. 5: Percentage of children under 2 years from cash transfer beneficary housholds receiving growth monitoring and promotion services according to the standard monitoring schedule. Intermediate Results Indicators 6: Number of female village facilitators trained to use new SBCC tools. 7: Percentage of grievances addressed and/or resolved within the stipulated service standards for response times. 8: Percentage of female direct cash transfer recipients who report increased decision-making power on spending decisions for the household. 9: Percentage of pregnant women from cash transfer beneficary housholds with at least 4 ANC contacts during their pregnancy. Component 1: Developing the building blocks of a social protection system 2. Indicator 1: Development of a social registry. Intermediate Results Indicators 3. Indicator 2: Percentage of households surveyed with the PMT questionnaire in target areas. Page 23 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Kenichi Victor Nishikawa Chavez Team Leader Ali Winoto Subandoro Team Leader Yasuhiro Kawasoe Team Leader Siriphone Vanitsaveth Financial Management Specialist Sirirat Sirijaratwong Procurement Specialist Viengkeo Phetnavongxay Environmental Specialist Martin Fodor Environmental Specialist Upulee Iresha Dasanayake Social Specialist Sybounheuang Phandanouvong Social Specialist Mei Wang Counsel Thongdeuane Nanthanavone Procurement Team Silima Keopaseuth Procurement Team Kalesh Kumar Anandavalliamma Karunakarakurup Procurement Team Alina Phonvisay Procurement Team Tanida Arayavechkit Team Member Manuel Salazar Team Member Boualamphanh Phouthavisouk Team Member Anorath Douangphachanh Team Member Lattana Thoommaly Team Member Ashish Joshi Team Member Yashodhan Ghorpade Team Member Luisa Patricia Fernandez Delgado Team Member Thao Do Team Member Chindavanh Vongsaly Team Member Jorge Eduardo Avalos Team Member Page 24 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT @#&OPS~Doctype~OPS^dynamics@icrannexstafftime#doctemplate B. STAFF TIME & COST Staff Time & Cost Stage of Project Cycle No. of Staff Weeks US$ (including travel and consultant costs) Preparation FY17 32.305 159,352.44 FY18 36.428 182,134.83 FY19 34.718 233,099.83 FY20 0.000 16,405.55 Total 103.45 590,992.65 Supervision/ICR FY19 2.025 48,483.08 FY20 43.602 303,565.95 FY21 67.958 351,269.55 FY22 29.211 286,753.82 FY23 37.304 303,343.59 FY24 37.114 273,808.64 FY25 13.393 67,713.06 Total 230.61 1,634,937.69 Page 25 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Page 26 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT ANNEX 3. PROJECT COST BY COMPONENT Component Amount at Approval (US$M) Actual at Project Closing (US$M) Component 1: Developing the building blocks of a social protection 3.0 3.00 system Component 2: Conditional cash 13.6 13.57 transfer program Component 3: Coordination, management, monitoring and 7.3 7.30 evaluation Page 27 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT ANNEX 4. EFFICIENCY ANALYSIS The project investments generated substantial efficiencies, though not all can be quantified. While it will take time to realize the full potential benefits of the project investments, the modernization of the administration of the Decree 348 Poverty data, the development of the CCT , and convergence coordination resulted in efficiency gains across several dimensions, including: (i) establishment of a social registry to modernize Decree 348 Poverty data administration and management improved efficiency for administrators and beneficiaries; (ii) although the cost-effectiveness of the CCT program was modest given the large initial costs, the program became a key contributor to addressing stunting and supported poor households during periods of high inflation; and (iii) the co-location and coordination of project activities contributed significantly to better nutrition outcomes. The cost efficiencies generated by the Social Registry outweighs the costs of developing and operating the system over time. The project has significantly improved the efficiency of managing Decree 348 Poverty data in Lao PDR through its support of the Social Registry (information system and database) and the introduction of the PMT method. Before the project, the management of the Poverty data was manual and paper based and encoded in spreadsheets, which resulted in a highly inefficient and non-transparent system. Provincial- and district-level staff were only able to aggregate household level data but could not track, manage, or report on the socio-economic data of households and individuals given that the information was not digitalized, centralized, and easily accessible. The Social Registry was designed to capture household and individual level information to generate efficiencies and savings on administration costs and allow for ranking of households based on a proxy-welfare indicator (through the PMT method). Some of these cost efficiencies include reducing paper and storage costs across all districts in the country; identifying objectively potential beneficiaries for social protection and disaster response programs;30 preventing, detecting, and remedying data collection errors; and reducing processing time and cost for monitoring and reporting. It is expected that overall and over time resource savings are substantially higher than the US$3 million invested in hardware, designing, and developing the system, and providing training to operate it. The cost of developing the Social Registry is reasonable in relation to the volume of beneficiaries it can serve and is comparable internationally. The estimated cost at US$1.6 per household31 is minor relative to the savings generated by improved administration of data.32 As a comparison, Türkiye’s Integrated system cost US$1.3 per household, excluding training cost. The project investments on the Social Registry and the PMT method enable administrators to have timely access to socio-economic indicators for operational management and policy making, as it also supports planning, assessing of potential demand, monitoring, reporting, and other analytics. Table 1: Cost breakdown for the Social Registry Item Amount (US$) Design and development of database and MIS 766,000 Computers and other hardware 632,340 Training and technical support33 1,380,000 30 Potential beneficiaries may have been left out without the development of the Social Registry. 31 Estimate based on the costs to establish the social registry and conduct data collection (except training), and the 1.2 million households enumerated. 32 Estimating cost efficiency of the SR presents a challenge given that estimating and comparing registries is not straightforward. Registries incur different types of administrative costs, and the costs are spread out over time. 33 Technical support includes hiring of IT officers at central and provincial level during project implementation. Page 28 The World Bank Reducing Rural Poverty and Malnutrition Project (P162565) ICR DOCUMENT Item Amount (US$) Data collection (per diem and logistics)34 675,100 Total 3,453,440 Note: Total cost does not include development of the PMT method. The cost-effectiveness of the CCT program was modest given the large initial investments in setting up its targeting and service delivery mechanisms. An analysis of the costs and benefits of the CCT suggests that the program was a ‘moderate’ cost-effective option for reducing (or mitigating) stunting and other maternal and child indicators. Cost-effectiveness analysis (CEA) calculates the ratio of the amount of “effect” a program achieves for a given amount of cost incurred, or conversely the amount of cost required to achieve a given impact.35 The cost-effectiveness analysis estimated shows that the CCT program led to a 0.03 percentage point reduction in stunting per US$100 spent (or a cost of US$4,430 per case of child stunting averted). The cost-effectiveness of CCTs was modest given the large initial costs of establishing the building blocks for a national social protection system.36 The CEA estimate for the CCT is probably an underestimation of the cost- effectiveness of the program given that program’s impact is only measured over two years, but costs are included for goods that can continue to be used over many more years. The CEA estimate does not exclude costs that may overlap with other programs in the future (e.g., new programs piggybacking on the Social Registry and targeting method to identify beneficiaries). Moreover, the CCTs aim to achieve objectives other than reducing malnutrition. CEA estimates for the CCT over a longer period are more favorable as they suggest greater cost-effectiveness due to the lower administrative cost of implementing the program and an expected higher significant impact on stunting.37 Furthermore, ratios of cash transfer to administrative cost will improve as the CCT program expands geographically to other areas.38 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS Comments sent by email from Mme. Bakeo Souvannalath, Deputy Director General, Department of Rural Development (DRD) on February 12, 2025. Dear Mr. Kenichi Nishikawa, Thank you for your email. We have reviewed the World Bank’s Implementation Completion and Results Report. We found it consistent with MAFs own Implementation Completion Report and hence agree with the assessment presented in it. Best regards, Bakeo Souvannalath on behalf of the RRPM project team 34 Data collection expenses for two rounds of data collection. 35 CEAs are unable to capture all benefits of a particular program. Instead, they compare interventions on a single common outcome. Dhaliwal et al 2012 provides a standardized approach to applying cost-effectiveness analysis. 36 The social registry investment was a countrywide investment. While the CCT was implemented only in twelve districts of four provinces, most of the processes and systems develop can support nationwide scale up. 37 Excluding convergence and M&E activities, transfer cost represents nearly half of project financing (47 percent), followed by administrative cost (35 percent) and targeting (17 percent). 38 The Asian Development Bank is preparing a project which will expand the CCT program to other provinces in Lao PDR. Page 29