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
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             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

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          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


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        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)                 %


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      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




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           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.



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           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.

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   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




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           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.

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           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.



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           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.

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           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).

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             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.



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           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).

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           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.



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              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.

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              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.

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         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


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     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


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           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.

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          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.

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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.




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                                                               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


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           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.


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                                              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



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                                          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.




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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.




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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.




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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




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@#&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




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         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




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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.



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                                                 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.



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