Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) Report Number: ICRR0024321 1. Project Data Project ID Project Name P166220 DJ: Cash Transfer & Human Capital Proj Country Practice Area(Lead) Djibouti Social Protection & Jobs L/C/TF Number(s) Closing Date (Original) Total Project Cost (USD) IDA-64150,IDA-68650,IDA-D4690 31-Dec-2022 29,074,951.31 Bank Approval Date Closing Date (Actual) 15-May-2019 31-Dec-2023 IBRD/IDA (USD) Grants (USD) Original Commitment 15,000,000.00 0.00 Revised Commitment 30,000,000.00 0.00 Actual 29,074,951.31 0.00 Prepared by Reviewed by ICR Review Coordinator Group Shiva Chakravarti Salim J. Habayeb Susan Ann Caceres IEGHC (Unit 2) Sharma P174566_TBL Project ID Project Name P174566 DJ-Cash Transfer & Human Capital AF ( P174566 ) L/C/TF Number(s) Closing Date (Original) Total Project Cost (USD) 0 Bank Approval Date Closing Date (Actual) Page 1 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) 31-Mar-2021 IBRD/IDA (USD) Grants (USD) Original Commitment 0.00 0.00 Revised Commitment 0.00 0.00 Actual 0.00 0.00 2. Project Objectives and Components DEVOBJ_TBL a. Objectives The development objective of the project was to: (i) support an expanded and more enhanced social safety nets project; and (ii) support access to basic services in targeted poor communities (Financing agreement, p.5). Note: The PAD defined an ‘enhanced’ Social Safety Net (SSN) system as improved targeting of program beneficiaries, an enlarged social registry, and effective accompanying measures in conjunction with conditional CTs. The objectives were revised to support: (i) an expanded and enhanced social safety nets system; (ii) access to basic services in targeted poor communities and (iii) rapid targeted food security safety net response to the COVID-19 pandemic (Amendment to Financing Agreement, p.1). A split rating will not be applied, as the project's scope has been expanded through the revision. b. Were the project objectives/key associated outcome targets revised during implementation? Yes Did the Board approve the revised objectives/key associated outcome targets? Yes Date of Board Approval 08-May-2020 c. Will a split evaluation be undertaken? No d. Components Component 1: Conditional CTs (Appraisal: US$8.5 million, Actual: US$15.6 million): This component supported rural households through quarterly cash transfers (CTs) under the Programme National de Solidarité Famille (PNSF) and community-based human capital development measures. Sub-component Page 2 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) 1.1 (US$7.5 million) provided phased CT payments to 8,362 poor households, with eligibility based on poverty levels, young children, and community-based targeting. Sub-component 1.2 (US$1 million) funded behavior change sessions on early childhood development, delivered by trained volunteers (mères conseillères) and open to all community members, including refugees and minorities. Component 2: Strengthening social protection delivery systems (Appraisal: US$2.1 million, Actual: US$2.3 million): This component aimed to enhance the PNSF and broader social protection system through technical assistance and capacity building. Key efforts included expanding the national social registry (covering refugees), improving targeting methods (Proxy-Means Test (PMT) and community- based approaches), and strengthening the program's MIS for enrolment, payments, and grievance management. Investments focused on building Secrétariat d’Etat chargé des Affaires sociales (State Secretariat for Social Affairs, SEAS) capacity for implementation, outreach, M&E, grievance redress, and upgrading social counters for service delivery. Additionally, it included a process evaluation, an assessment of the PMT mechanism, and an evaluation of its performance. Component 3: Community-Based Investments in Basic Services (Appraisal: US$3.1 million, Actual: US$3.8 million): This component focused on improving human capital by investing in basic services infrastructure in poor or isolated regions and communities hosting refugees, aligning with Component 1's geographic areas. It strengthened the capacity of the Ministry of Decentralization and regional councils to enhance social services infrastructure, including water supply, sanitation, resource management, schools, markets, and rural roads. Eligible community associations received small grants to select and implement sub-projects. Community members, including refugees, participated in training on grassroots management, needs assessment, procurement, financial management, participatory planning, M&E, and maintenance. Component 4: Project Management (Appraisal:US$1.3 million, Actual: US$2.0 million): This component funded project management and coordination through SEAS, covering consultant salaries, project equipment, operating costs, financial management, training, workshops, learning activities, communications, and implementation supervision. Component 5: Household Food Security Response to COVID-19 (added during 2020 Additional financing; Appraisal: 0 million, Actual: US$4.9 million) From April to June 2020, this component provided 27,000 food vouchers, primarily targeting women (60% of beneficiaries) listed in the national social registry. Each voucher, worth DJF 10,000 (US$56), allowed households to purchase food items from participating retailers in Djiboutiville and Balbala. Component 6: Contingent Emergency Response (CERC) (added during 2020 Additional financing; Appraisal: 0 million, Actual: US$0.0 million): This component enabled rapid crisis response in case of a worsening crisis or an eligible emergency, but no funds were utilized. e. Comments on Project Cost, Financing, Borrower Contribution, and Dates The project was approved on May 15, 2019, and became effective on November 29, 2019. A mid-term review was conducted on December 31, 2023, which also marked the project’s closing date. The original budget for the project was $30 million, which remained unchanged after revisions. The actual disbursed amount totaled $29,074,951.31. The project was approved on May 15, 2019, with the effectiveness date being 29 November 2019. The initial amount at approval was $15 million. The project was restructured on May 8, 2020, to support Djibouti’s COVID-19 response amidst rising global food prices and heightened food Page 3 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) insecurity, as 90% of Djibouti’s food is imported. Key changes included limiting rural cash transfers (CTs) to 5,000 households for 12 months, adding 2,500 urban households for quarterly CTs, reallocating $5 million from existing components to a new food security response component, and revising the project objectives and results framework. On March 18, 2021, an Additional Financing (AF) of $15 million ($10 million credit and $5 million grant) was approved to replenish funds used for the COVID-19 response, scale up activities, and extend CTs. New measures included productive inclusion activities, scaling up basic services, extending the project timeline to December 2023, and refining indicators to promote women’s leadership and community engagement. These changes ensured rapid emergency support for vulnerable households affected by food insecurity, economic shocks, and crises such as the COVID-19 pandemic and regional conflicts, expanding the project’s scope and impact. 3. Relevance of Objectives Rationale The project’s objectives were highly relevant to Djibouti’s development priorities and World Bank strategies at appraisal and closing. The project aimed to enhance the social safety net (SSN) system and improve access to basic services in targeted poor communities, addressing critical development challenges. At the time of project design, 21 percent of the population lived in extreme poverty, with poor communities facing limited access to basic services. The project also responded to added pressures from an influx of refugees, further underscoring its importance. The project aligned with the Government of Djibouti’s Vision 2035, which prioritizes harnessing human potential as a foundation for inclusive growth, and the National Strategy for Social Protection (NSSP, 2018–2022), which emphasized the need for effective social safety nets to build human capital and extended eligibility to refugees through legal reforms. Furthermore, the project built on the World Bank’s prior engagement in the country, including the Social Safety Net project, which provided a foundation for strengthening the SSN system. At closing, the project remained well-aligned with the Djibouti Country Partnership Framework (CPF) FY22– FY26 (Report No. 147787-DJ), contributing to two sub-objectives: (i) stimulating entrepreneurship and promoting small and medium enterprise development during and after the COVID-19 pandemic, and (ii) strengthening basic service delivery to improve access, quality, and inclusion while enhancing resilience to climate change and natural disasters. The project demonstrated adaptability by addressing urgent needs stemming from the COVID-19 pandemic, which exacerbated global food price shocks and disproportionately impacted Djibouti, where 90 percent of food is imported. Restructuring enabled emergency cash transfers (CTs) to 5,000 rural households for 12 months (four quarterly payments instead of six) and extended support to 2,500 urban households for the same duration. These measures were critical in safeguarding livelihoods during a period of heightened vulnerability. Rating Relevance TBL Rating High 4. Achievement of Objectives (Efficacy) Page 4 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) EFFICACY_TBL OBJECTIVE 1 Objective To support an expanded and enhanced social safety nets system Rationale The first objective of the project was to enhance the SSN system by improving its targeting mechanisms, enlarging the government’s social registry, and delivering effective accompanying measures. This objective included direct financing of cash transfers to households through an improved system, which involved refining the proxy means testing (PMT) methodology, targeting the poorest geographic areas, updating the social registry, upgrading the MIS, and enhancing the capacity of local staff. On the demand side, these system enhancements were complemented by community-based behavior change sessions, which served as the “soft conditionalities” for CTs. These sessions focused on themes aligned with human capital development and early childhood development, such as cognitive stimulation, good parenting practices, school attendance, malnutrition prevention, hygiene promotion, income-generating activities, and information for refugee and migrant households on their rights and responsibilities. The Theory of Change (ToC) for this objective was clear and well-articulated, with both demand- and supply- side interventions designed to strengthen the SSN system. These measures were expected to result in improved health and early childhood development outcomes, while simultaneously expanding the government’s capacity to implement and sustain an enhanced safety net system. Intermediate Indicators  5,206 community sessions were organized as part of accompanying measures to raise awareness, exceeding the target of 1,500 sessions.  414 community counselors were trained to lead community sessions, exceeding the target of 150 counselors.  375 women were trained as community counselors to lead community sessions, exceeding the target of 80 female counselors.  95 percent of beneficiaries surveyed indicated they were satisfied with community sessions, exceeding the target of 75 percent.  1,609 CT beneficiaries participated in Productive inclusion (PI) activities, falling short of the target of 2,000.  1,000 women beneficiaries participated in the PI program, falling short of the target of 1,200.  82 percent of beneficiaries surveyed indicated satisfaction with the PI program, meeting the target of 80 percent.  98 percent of PNSF beneficiary households were registered, including with biometric data in the social registry, exceeding the target of 80 percent.  41 percent of PNSF beneficiary households were paid within 15 days of the scheduled payment date, falling short of the target of 85 percent (48 percent achievement).  1,398 people registered in the social registry were given their national identity cards with the support of the project, exceeding the target of 1,000. Page 5 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220)  74 percent of PNSF-related complaints registered electronically were resolved by the time of the next CT payment, exceeding the target of 70 percent.  1,553 refugee households were included/registered in the social registry, exceeding the target of 1,500. Outcomes  5,500 beneficiaries were reached under the social safety net programs, meeting the target of 5,500 beneficiaries.  86% of the beneficiaries reached were below the poverty line and vulnerable to climate related shocks.  110,194 households were registered in the national social registry, exceeding the target of 90,000 households.  49 percent of beneficiary women with a child aged 0–6 months practiced exclusive breastfeeding, exceeding the target of 35 percent. The PDO indicators effectively measured the enhanced safety net system but faced challenges due to zero baselines, limiting the ability to compare pre-project performance or establish a clear counterfactual. The Theory of Change (ToC) linked cash transfers and community measures to improved outcomes, such as the rise in exclusive breastfeeding rates to 49% (14 percentage points above the target). However, the delayed implementation of cash transfers—with payments beginning only in early 2022 (ICR, p.21)—complicates the attribution of these improvements directly to the intervention. Despite these limitations, the ICR notes that community-based measures played a critical role in achieving meaningful human development outcomes. Over 5,200 bi-monthly sessions, led by 414 mères conseillères (91% women), covered themes such as nutrition, health, and financial literacy, resulting in high participant satisfaction (95%) and improved health service use and child monitoring. The project also made substantial progress in enhancing the safety net system. It expanded the social registry to 110,194 households, surpassing the target of 90,000, and introduced biometric enrollment for improved targeting and tracking. Comprehensive operational tools were developed, including guidelines for payments, grievance management, and monitoring, alongside an upgraded PNSF MIS that integrated with the social registry and biometric systems. These advancements strengthened service delivery, as measured by the world bank evaluations, though timeliness challenges remained, as only 41% of beneficiaries received payments within 15 days, well below the 85% target. Finally, the project also established the building blocks of the Productive Inclusion program. Considering the achievement of intermediate and outcome indicators but with moderate shortcomings and attribution challenges, this ICRR rates the objective as Substantial. Rating Substantial Page 6 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) OBJECTIVE 2 Objective To support the access to basic services in targeted poor communities Rationale The second objective of the project was to improve access to basic services in targeted poor communities. To achieve this, the project strengthened capacities at both the central and local levels through technical assistance and training to implement the Community-Driven Development (CDD) approach. Sub-project committees were established in 60 beneficiary communities, enabling them to open accounts to access funds and manage infrastructure project budgets. Training was provided on various aspects of grassroots management, including communication and information sharing, community organization and dynamics, participatory poverty assessment, operational planning of community investments, and project evaluation. The Theory of Change (ToC) for the second objective was clear and well-structured. By combining institutional strengthening at the formal level (capacity building for central and local authorities) with informal level (community-level training) and dedicated budgets for infrastructure projects, the project created a logical pathway for improving access to basic services in these communities. Intermediate Indicators 63 communities vulnerable to climate-related shocks were trained on the identification, implementation, and maintenance of community sub-projects, exceeding the target of 60 communities. 122 infrastructure sub-projects were constructed or rehabilitated in communities vulnerable to climate-related shocks, exceeding the target of 120 sub-projects. 86 percent of community sub-projects were functional one year after completion, exceeding the target of 80 percent. 85 percent of beneficiaries were satisfied with the community infrastructures financed by the project, exceeding the target of 80 percent. 11,724 people were provided with access to improved water sources, exceeding the target of 1,000 persons. 5,803 females were provided access to improved water sources, exceeding the target of 500 females. 3,100 refugees were provided with access to basic services infrastructure financed by the project, exceeding the target of 1,000 refugees. 1,600 female refugees were provided with access to basic services infrastructure financed by the project, exceeding the target of 500 female refugees. 34 percent of leadership positions in community sub-project committees were held by women, exceeding the target of 33 percent. Outcomes Page 7 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) 16,027 beneficiaries had to access to basic services, exceeding the target of 6,000 beneficiaries. The PDO indicator falls short of fully capturing the achievement of the objective, as it only tracks the number of beneficiaries without providing insights into the extent of actual access of the infrastructure by the communities. However, this is partially alleviated by some evidence from intermediate results indicators (IRIs). All beneficiary communities received training to identify, prioritize, implement, and maintain community infrastructures (IRI 12), and 86% of the infrastructure projects were reported to be functional one year after completion and handover to users (IRI 14), demonstrating a degree of sustainability and community engagement in infrastructure management. Considering the achievement of intermediate and outcome indicators with moderate shortcomings in measurement and in demonstrating full achievement of the stated objective, this ICRR rates the objective as Substantial. Rating Substantial OBJECTIVE 3 Objective To support a rapid targeted food security safety net response to the COVID-19 pandemic (New Objective) Rationale The third objective of the project aimed to provide a rapid and targeted food security response to mitigate the impacts of the COVID-19 pandemic. The Theory of Change (ToC) was clear and direct -- the project envisioned ensuring critical food access and adequate nutritional intake for poor and vulnerable households, thereby protecting human development during the crisis. This was to be achieved through the distribution of food vouchers, redeemable for essential food items, targeted at households below the poverty line and workers not previously covered by social safety nets. Outcomes 27,567 beneficiaries had access to social safety net programs, exceeding the target of 27,000 beneficiaries. Considering the achievement of the intended outcome, this ICRR rates the objective as High. Rating High OVERALL EFF TBL OBJ_TBL OVERALL EFFICACY Page 8 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) Rationale The original objectives to support an expanded and enhanced social safety nets system and to support the access to basic services in targeted poor communities were almost fully achieved; and the new object to support a rapid targeted food security safety net response to the COVID-19 pandemic was fully achieved. The achievements are consistent with a Substantial overall efficacy rating. Overall Efficacy Rating Substantial 5. Efficiency The PAD and Additional Financing did not include a cost-benefit analysis. However, an economic analysis estimated that US$56 monthly CTs to 5,000 rural households could reduce national headcount poverty by nearly one percentage point, from 21.14% to 20.28%. Infrastructure investments under the Community-Driven Development (CDD) approach were 40% cheaper than traditional methods, benefiting over 16,000 people in 63 communities, with 86% of facilities functional after one year. Despite increased project costs from additional activities, administrative costs declined from 9% to 7%, significantly lower than the regional averages of 15% in MENA and 20% in other regions. Additionally, the project’s adaptability was evident during the COVID-19 pandemic, where a swift restructuring enabled funds to be reallocated to emergency responses, strengthening delivery models and reducing targeting costs. While several project activities were implemented in a timely manner, the ICR reported substantial delays in the implementation of CTs and in establishing effective payment systems resulting in actual initiation of CTs only during the fourth year of implementation (ICR, p. 21). However, the efficiency analysis has certain limitations in its efficiency assessment. The lack of an ex-post economic analysis restricts the ability to directly quantify project benefits, as pandemic-related disruptions complicated isolating its impacts. Comparative cost estimates, such as the cost of CTs relative to similar programs in the region, are also absent. Furthermore, the ICR relies on tentative claims, such as the CDD approach improving allocative efficiency and the project reducing poverty and vulnerability, which remain plausible but not fully verified. While these gaps qualify the conclusions, the project’s demonstrates evidence on cost-effectiveness, strong administrative efficiency, and timely adaptability support a marginally Substantial efficiency rating. Efficiency was reflective of what would be expected in the operation’s sector. Efficiency Rating Substantial a. If available, enter the Economic Rate of Return (ERR) and/or Financial Rate of Return (FRR) at appraisal and the re-estimated value at evaluation: Rate Available? Point value (%) *Coverage/Scope (%) Page 9 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) 0 Appraisal 0  Not Applicable 0 ICR Estimate 0  Not Applicable * Refers to percent of total project cost for which ERR/FRR was calculated. 6. Outcome Relevance of project objectives is rated High throughout the project duration, as the objectives were aligned at project closing with the Bank's Country Partnership Framework for Djibouti and the government's policy efforts and reforms. Efficiency is rated as Substantial, reflecting what would be expected in the operation’s sector. Efficacy is rated Substantial, as the project almost fully achieved its original development objectives to support an expanded and enhanced social safety nets system and to support the access to basic services in targeted poor communities; and fully achieved the new object to support a rapid targeted food security safety net response to the COVID-19 pandemic. a. Outcome Rating Satisfactory 7. Risk to Development Outcome The ICR assessment did not identify any significant risks to the development outcome, citing several factors that support the sustainability of project achievements. First, there is high government commitment, with the PNSF platform now established as the government’s flagship program for addressing poverty. Second, the continuation of financing is evident through ongoing efforts, such as the preparation of the Integrated Community Resilience Project by the World Bank and the Government of Djibouti (GoD), which will sustain mitigation measures in the medium term. Additionally, the NSNSP 2023–2027 outlines comprehensive support for all programs implemented under this project and forecasts adequate budget allocations from government and development partners, including the UN system. The ICR also highlights achievements such as the functionality of 86% of infrastructure developed under the project one year after completion, which demonstrates the durability of investments. Overall, there is sufficient evidence to suggest that the high government commitment and continuation of project interventions would be sustained beyond the project. 8. Assessment of Bank Performance a. Quality-at-Entry The project design aligned with Djibouti’s priorities to strengthen the social safety net (SSN) system and improve access to basic services, focusing on poverty reduction, early childhood development, and Page 10 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) human capital outcomes. Drawing on lessons from prior projects and global best practices, the Bank refined targeting methodologies, expanded the social registry, and upgraded systems to enhance the PSNF platform’s adaptive and shock-responsive capabilities. The design also addressed institutional fragmentation, built implementation capacity, and prioritized cash transfers (CTs) as an efficient mechanism for poverty alleviation. The preparation process showcased thorough technical analysis and effective risk mitigation measures, including capacity assessments of implementing agencies and leveraging partnerships with UN agencies, e.g., delivery systems, such as the Management Information System (MIS) and monitoring frameworks, were strengthened to support cash-plus interventions. However, there was a lack of readiness and inadequate risk assessment for implementing conditional cash transfers (CCTs), resulting in significant delays; cash transfers (CTs) only began in early 2022. According to the Implementation Completion and Results Report (ICR, p. 21), the lack of readiness was attributed to several factors, including the absence of financial institutions in the regions and the absence of effective, appropriate payment systems that had yet to be established. Additionally, the implementation of CTs required substantial logistical support during each cycle and coordination among government agencies, local governments, and police departments. These risks were not identified in the Project Appraisal Document (PAD, p. 27) under key risks. Quality-at-Entry Rating Satisfactory b. Quality of supervision The team provided consistent oversight. Two Task Team Leaders (TTLs) ensured smooth leadership transitions, with continuity maintained despite the challenges of the COVID-19 pandemic. Supervision missions were conducted virtually during 2020–2021 and resumed in-person at six-month intervals thereafter. Additional workshops and technical meetings supported key areas such as monitoring and evaluation (M&E), targeting, and productive inclusion (PI). The findings from these missions were systematically documented, helping to monitor progress and address emerging issues in a timely manner. The team also mobilized additional resources, including an IDA credit of US$10 million and an IDA grant of US$5 million, by demonstrating tangible results on the ground. Technical assistance (TA) was leveraged to update the PMT, enhancing targeting at project inception, and to support market assessments and fieldwork that informed the design of the productive inclusion (PI) sub-component. The World Bank team also demonstrated flexibility in supervision, enabling adjustments to meet urgent country needs, such as those arising from the COVID-19 pandemic. The May 2020 restructuring repurposed project resources to address food insecurity, while a subsequent AF compensated for these funds and expanded the project scope. The introduction of PI activities during this period aimed to build beneficiaries’ economic resilience, helping to reduce dependency on cash transfers. The team’s ability to adapt the project in response to client needs while enhancing the PNSF platform’s adaptive capabilities underscores the Bank’s strong commitment to achieving development outcomes. Page 11 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) Quality of Supervision Rating Satisfactory Overall Bank Performance Rating Satisfactory 9. M&E Design, Implementation, & Utilization a. M&E Design The M&E design was well-structured, featuring a Results Framework (RF) with SMART (specific, measurable, relevant, and timely) indicators that were logically aligned with the project’s objectives. These output- and outcome-based indicators were directly linked to critical activities, allowing for systematic monitoring of progress. Furthermore, the inclusion of technical audits for cash transfers (CTs) and beneficiary satisfaction surveys enhanced data triangulation and provided valuable insights into project performance. However, the M&E design lacked a framework to establish clear attribution. Moreover, the presence of multiple donor programs in the region, particularly those addressing the refugee crisis, introduced complexities that made it difficult to isolate the project’s specific contributions within the RF. b. M&E Implementation The ICR notes that M&E activities were largely implemented as planned, with enhancements to the PNSF M&E architecture, including modules for real-time data collection for new components like productive inclusion (PI) and food stamp programs, as well as the Complaints' management system. Monitoring of "soft" conditionalities was supported by mères conseillères, who recorded unique barcodes during community sessions and entered the data into the PNSF MIS. Extensive training improved awareness of the Complaints mechanism among social workers and beneficiaries. While the first technical audit for sub-component 1.1 was delayed by over two years, subsequent semi-annual audits and evaluations were completed, including audits for components 1, 2, and 3 and a beneficiary satisfaction survey for sub-component 1.3. c. M&E Utilization The ICR notes that the M&E system was integral to the project’s implementation, enabling evidence- based adjustments to key activities. Research, evaluations, and on-site data informed changes, such as expanding cash transfers to urban households, initiating PI activities, and distributing food vouchers during COVID-19. The Results Framework (RF) facilitated tracking and timely adaptations, including enhanced communication to address low awareness of the complaints system and compliance monitoring for infrastructure safeguards. Although the beneficiary satisfaction survey for Component 1.3 was delayed, it ultimately provided high satisfaction ratings and recommendations for future interventions under SPECRP (P178992), highlighting the M&E system’s role in improving project delivery and planning. Page 12 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) M&E Quality Rating Substantial 10. Other Issues a. Safeguards The ICR notes that the project complied with all applicable environmental and social (E&S) safeguards policies. The Overall Safeguards Rating was Moderately Satisfactory in the last ISR, as recorded in the Operations Portal. A waiver for E&S requirements was obtained at Additional Financing (AF) approval, and the project was categorized as B due to Component 3 activities, triggering OP/BP 4.01 for Environmental Assessment and OP/BP 4.12 for Involuntary Settlement. An Environmental and Social Management Framework (ESMF) outlined eligible infrastructures and mitigation measures. In 2022, E&S performance was rated moderately unsatisfactory when work began on two sub-projects without prior approval of their Environmental and Social Management Plans (ESMP). Following a technical audit confirming compliance with Bank policies apart from delayed documentation, the suspension was lifted, and additional training was provided to ADDS and 590 Village Development Associations. By late 2022, performance improved to moderately satisfactory, with adequate supervision and timely preparation of E&S instruments. Social risks were moderate, with measures in place for beneficiary selection, COVID-19 protocols, resettlement screening, and preventing sexual exploitation and abuse. No incidents were reported during the project. b. Fiduciary Compliance The ICR notes that the project maintained financial management (FM) and procurement arrangements that were acceptable to the World Bank. Initially, FM risk was rated substantial, and procurement risk was high due to SEAS/MASS’s lack of prior experience with World Bank operations. Agence Djiboutienne de Développement Social (ADDS, Djiboutian Social Development Agency), with prior experience in Bank- funded projects, oversaw Component 3, while community associations managed fiscal and procurement responsibilities for subprojects, supported by training on community procurement and FM. No significant changes were required during Additional Financing (AF). Fiduciary risks were initially substantial but were downgraded to moderate in May 2021 as management and arrangements improved. c. Unintended impacts (Positive or Negative) The ICR notes that the project yielded several unintended positive impacts: (i) Micronutrient packages and leftover Plumpy Doz from the project were distributed to households severely affected by the COVID-19 lockdown, improving nutritional intake for at-risk populations; (ii) The food voucher platform attracted additional financing, enabling the Government of Djibouti to support 49,000 households for one month and donors to assist 14,000 households, including 1,000 refugee households, for six months; (iii) The social registry became a vital tool for identifying beneficiaries for programs by the World Food Program (WFP), Ministry of Health, and UNHCR, expanding its scope through biometric enrollment; (iv) the successful implementation of PITCH and the swift preparation of the SPECRP inspired and informed the 2023–2027 National Social Protection Strategy; and (v) the delivery of food vouchers also led to the approval of $30 Page 13 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) million for the Social Protection Emergency Crisis Response Project, which continues to support safety nets and adaptive social protection mechanisms in Djibouti. d. Other --- 11. Ratings Reason for Ratings ICR IEG Disagreements/Comment Efficacy was rated Substantial in Outcome Highly Satisfactory Satisfactory view of moderate shortcomings and attribution issues Shortcomings in readiness and Bank Performance Highly Satisfactory Satisfactory risk assessment for the timely implementation of cash transfers Quality of M&E Substantial Substantial Quality of ICR --- Substantial 12. Lessons 1. Integrated packages of interventions enhance sustainability and impact: Delivering an integrated package of cash transfers, productive inclusion, CDD projects, and accompanying measures strengthens human development outcomes and builds lasting systems. Under the project, this approach improved practices like exclusive breastfeeding, established a central social registry, and set up local social counters that continued serving beyond the project. This demonstrates the potential for scaling integrated approaches to amplify long-term benefits. 2. Foundational investments in social protection systems enable crisis responsiveness: Building robust systems, such as the social registry, enhances the ability to scale programs and respond to crises effectively. The registry supported accurate targeting and program expansion during COVID-19 and overlapping emergencies. Achieving global best practices requires dynamic interoperability, timely evaluations, and improved data-sharing mechanisms to harmonize efforts and optimize service delivery. 3. Leveraging local institutions and existing human resources improves cost- effectiveness and community engagement: Engaging local structures and local actors such as community workers (like mères conseillères) and Village Development Associations, fosters positive behavior changes while reducing costs. 4. Empowering women in community leadership enhances impact and service delivery: Incorporating gender considerations into CDD approaches ensures investments address women’s specific needs and priorities. Female leadership in community development Page 14 of 15 Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review DJ: Cash Transfer & Human Capital Proj (P166220) committees improved decision-making and directed resources toward critical infrastructure like water projects, which benefited families and relieved women of time-intensive tasks such as water collection 13. Assessment Recommended? No 14. Comments on Quality of ICR The ICR provided a comprehensive and internally consistent overview of the project, aligning well with established guidelines. While the report demonstrated adequate analysis and incorporated lessons from implementation, its outcome orientation was limited by moderate gaps rooted in the initial M&E design rather than shortcomings of the ICR itself. Although it presented a thorough account of implementation and monitoring, it did not sufficiently capture some of the project’s limitations and readiness issues for implementing cash transfers. The lessons drawn were evidence-based and reflective of project experience. The report was clearly written and well-organized, but its lengthy articulations could have been improved for clarity and candor. a. Quality of ICR Rating Substantial Page 15 of 15