FOR OFFICIAL USE ONLY Report No: ICR00006715 IMPLEMENTATION COMPLETION AND RESULTS REPORT IDA- 66930, IDA-D6650, and IDA -D7660 ON A CREDIT (IDA – 66930) IN THE AMOUNT OF SDR 4.7 MILLION (US$6.4 MILLION EQUIVALENT) A GRANT (IDA-D6650) IN THE AMOUNT OF SDR 4.7 MILLION (US$6.4 MILLION EQUIVALENT) AND AN ADDITIONAL GRANT (IDA-D7660) IN THE AMOUNT OF SDR 15.2 MILLION (US$21.6 MILLION EQUIVALENT) TO THE REPUBLIC of MALDIVES FOR THE COVID-19 EMERGENCY INCOME SUPPORT PROJECT June 28,2024 Social Protection & Jobs Global Practice South Asia Region The World Bank COVID-19 Emeregency Income Support Project (P174014) CURRENCY EQUIVALENTS (Exchange Rate Effective Jun 03, 2024) Currency Unit = Maldivian Rufiyaa (MVR) MVR 15.46= US$1 US$ 1.32 = SDR 1 FISCAL YEAR July 1 - June 30 Regional Vice President: Martin Raiser Country Director: Faris H. Hadad-Zervos Regional Director: Nicole Klingen Practice Manager: Cem Mete Task Team Leader: Francesca Lamanna ICR Main Contributor: Suzana Abbott The World Bank COVID-19 Emeregency Income Support Project (P174014) ABBREVIATIONS AND ACRONYMS AAA Analytical and Advisory Activities ADB Asian Development Bank AWP Annual Work Plan BML Bank of Maldives CERC Contingent Emergency Response Component COVID-19 Coronavirus Disease 2019 CPF Country Partnership Framework DA Designated Account DPD Deputy Project Director ERP Economic Relief Program FM Financial Management FY Fiscal Year GDP Gross Domestic Product GoM Government of Maldives GRS Grievance Redress Service HDI Human Development Index HIES Household Income and Expenditure Survey IA Implementing Agency IPF Investment Project Financing IR Intermediate Result ISR Implementation Status and Results Report IFR Interim Financial Report M&E Monitoring and Evaluation MCEP Maldives Clean Energy Project MMA Maldives Monetary Authority MoED Ministry of Economic Development MoF Ministry of Finance MoGFSS Ministry of Gender, Family and Social Services MPAO Maldives Pension Administration Office MRPS Maldives Retirement Pension Scheme MTR Mid-Term Review NSPA National Social Protection Agency OHS Occupational Health and Safety PD Project Director PDO Project Development Objective PMU Project Management Unit POM Project Operations Manual The World Bank COVID-19 Emergency Income Support Project (P174014) PSC Project Steering Committee PTC Project Technical Committee RF Results Framework SAP Strategic Action Plan SEP Stakeholder Engagement Plan SPIS Social Protection Information System STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance TOC Theory of Change TOR Terms of Reference UN United Nations WB World Bank The World Bank COVID-19 Emergency Income Support Project (P174014) TABLE OF CONTENTS DATA SHEET ........................................................................................................................... I I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 1 A. CONTEXT AT APPRAISAL .........................................................................................................1 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................4 II. OUTCOME ...................................................................................................................... 6 A. RELEVANCE OF PDOs ..............................................................................................................6 B. ACHIEVEMENT OF PDOs (EFFICACY) ........................................................................................7 C. EFFICIENCY ........................................................................................................................... 10 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 10 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 11 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 12 A. KEY FACTORS DURING PREPARATION ................................................................................... 12 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 13 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 14 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 14 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 14 C. BANK PERFORMANCE ........................................................................................................... 15 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 16 V. LESSONS AND RECOMMENDATIONS ............................................................................. 16 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 18 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 26 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 29 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 30 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 34 ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) ..................................................................... 51 The World Bank COVID-19 Emergency Income Support Project (P174014) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P174014 COVID-19 Emergency Income Support Project Country Financing Instrument Maldives Investment Project Financing Original EA Category Revised EA Category Organizations Borrower Implementing Agency Republic of Maldives Ministry of Economic Development Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to mitigate the economic impact of the COVID-19 crisis on workers and their families, and to increase the capacity of social protection programs to respond to future emergencies. i The World Bank COVID-19 Emergency Income Support Project (P174014) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 6,400,000 6,259,039 6,583,743 IDA-66930 6,400,000 5,980,947 6,252,698 IDA-D6650 21,600,000 21,600,000 21,177,371 IDA-D7660 Total 34,400,000 33,839,986 34,013,812 Non-World Bank Financing 0 0 0 Total 0 0 0 Total Project Cost 34,400,000 33,839,986 34,013,812 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 09-Jun-2020 26-Jun-2020 01-Feb-2022 30-Jun-2022 31-Dec-2023 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 05-Dec-2020 12.07 Other Change(s) 25-Jan-2021 12.07 Additional Financing Change in Results Framework Change in Components and Cost 13-Dec-2021 28.11 Change in Results Framework Change in Loan Closing Date(s) Reallocation between Disbursement Categories Change in Disbursements Arrangements Change in Legal Covenants Change in Implementation Schedule 12-Dec-2022 31.10 Change in Results Framework Change in Loan Closing Date(s) Reallocation between Disbursement Categories ii The World Bank COVID-19 Emergency Income Support Project (P174014) KEY RATINGS Outcome Bank Performance M&E Quality Highly Satisfactory Highly Satisfactory High RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 14-Sep-2020 Highly Satisfactory Highly Satisfactory 4.12 02 27-Apr-2021 Highly Satisfactory Satisfactory 26.42 03 15-Dec-2021 Highly Satisfactory Satisfactory 28.11 04 30-Jun-2022 Highly Satisfactory Satisfactory 31.51 05 17-Nov-2022 Highly Satisfactory Satisfactory 31.10 06 22-Jun-2023 Highly Satisfactory Satisfactory 33.20 07 19-Dec-2023 Highly Satisfactory Satisfactory 34.01 SECTORS AND THEMES Sectors Major Sector/Sector (%) Social Protection 100 Social Protection 97 Public Administration - Social Protection 3 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 94 Jobs 94 iii The World Bank COVID-19 Emergency Income Support Project (P174014) Social Development and Protection 100 Social Protection 100 Social Safety Nets 94 Social Insurance and Pensions 6 Social protection delivery systems 6 Human Development and Gender 100 Gender 6 Disease Control 100 Pandemic Response 100 Environment and Natural Resource Management 1 Climate change 1 Adaptation 1 ADM STAFF Role At Approval At ICR Regional Vice President: Hartwig Schafer Martin Raiser Country Director: Zviripayi Idah Pswarayi Riddihough Faris H. Hadad-Zervos Director: Lynne D. Sherburne-Benz Nicole Klingen Practice Manager: Stefano Paternostro Cem Mete Task Team Leader(s): Thomas Walker Francesca Lamanna Suzana Nagele de Campos ICR Contributing Author: Abbott iv The World Bank COVID-19 Emergency Income Support Project (P174014) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. Maldives, an island state comprising nearly 1,200 dispersed coral islands grouped into 26 atolls, had gone from being one of the poorest countries in the world in 1980 to being classified as an upper-middle-income country with a gross domestic product (GDP) per capita of US$10,331 in 2018. Its sustained economic growth over this period had resulted in significant poverty reduction. Maldives performed well on poverty outcomes compared to its regional, income and small island peers with tourism having been the key to the country’s development success. Tourism directly and indirectly contributed to two-thirds of its economy, 80 percent of exports and at least 40 percent of state revenue collections. However, the high share of tourism in the economy also makes the economy vulnerable to adverse external developments. The COVID-19 pandemic was this type of adverse development that severely affected tourism and the entire economy. In addition to a health sector response, a short-term social safety net emergency response to maintain livelihoods was required. 2. At the time of appraisal of the COVID-19 Emergency Income Support Project (CEISP, the Project), Maldives was expected to be one of the hardest hit economies in the world from the coronavirus disease 2019 (COVID-19) pandemic. The Government of Maldives (GoM) had taken proactive steps to contain the spread of the virus, including a full border closure beginning March 27, 2020. This measure, coupled with a general lockdown enacted in mid-April 2020, were having significant, adverse impacts on the economy, state revenues, and the livelihoods of many households whose incomes depended on the tourism sector. After having grown 5.3 percent in 2019, real GDP was projected to contract by at least 11.5 percent in 2020. Widespread job and income losses were being observed despite the GoM’s efforts to protect jobs through industry support packages. Many firms had begun laying off casual staff and asking contract staff to take leave without pay or significant pay cuts; informal sector workers were suffering sharp falls in their income. The GoM expected that about 15,000 to 20,000 people would lose their jobs or incomes. 3. Maldives had a well-developed but narrowly targeted social protection system, comprising social assistance (cash transfers to vulnerable groups and various subsidies), social insurance (health insurance and pensions), and social empowerment programs (training and job placement). The system included: (a) the Aasandha program that provided free public health care, covering the cost of treatment in public and many private facilities; (b) a well- developed pension system, with a national defined-contribution pension scheme run by the Maldives Pension Administration Office (MPAO) and a relatively generous social pension that topped up the incomes of those over 65 years of age to MVR 5,000 (about US$330) per month; (c) social cash transfer programs run by the National Social Protection Agency (NSPA) that were narrowly targeted to a few vulnerable groups—persons with disabilities, single and foster parents, and the elderly; and (d) various subsidies for food, electricity, fuel and housing that helped defray the costs of living. However, Maldives had no broad-based cash transfer program for poor households not falling into the above “vulnerable” categories, and no unemployment insurance program. Inefficiencies and generous subsidies in social spending limited fiscal space for more targeted and scalable social assistance and were flagged for attention in the GoM’s Strategic Action Plan (SAP) 2019-2023. 4. Despite the limited scope of the NSPA’s programs--its cash transfers covered less than one percent of the population—it had relatively well-developed delivery systems. It operated a modern customer service center in Malé to receive applications and handle matters relating to beneficiaries. It drew upon support from island council (local government) offices to receive applications and update beneficiary information from inhabited islands. The NSPA maintained a robust, but off-line, beneficiary registration system called the Social Protection Information System (SPIS), which securely collected and maintained applicants’ data, determined eligibility, and served as a management information system. The NSPA’s payment system was well developed; benefits were transfe rred Page 1 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) electronically to beneficiary bank accounts at the Bank of Maldives (BML), and were readily accessible through branches, automatic teller machines and point-of-sale devices. Payments were made monthly to beneficiaries with no reported delays. 5. A new Job center had recently been established to improve matching between employers and jobseekers. Run by the Ministry of Economic Development (MoED), the Job center published job advertisements and general information about participating employers, on an online platform that allowed registered Jobseekers to be notified whenever a new job offering appropriated to their skills and experience was posted. The MoED was using the job center to register terminated and furloughed workers and receive contract violation unfair dismissal complaints for investigation by the labor Relations Authority. 6. The GoM anticipated that despite its announced measures to encourage businesses to retain employees and help those affected by the pandemic, many workers would temporarily lose income or be made redundant as employers would be unable to continue paying wages. The Economic Relief Program (ERP) was designed to provide relief to businesses only on the condition that firms did not dismiss any of their workers before or during the period of support.1 Still, there were reports of casual and informal sector workers being laid off, while the self-employed were expected to see significant drops in their incomes. 7. As part of its proactive measures to prevent the negative impact on the population as a result of mass unemployment, on May 13, 2020, the GoM approved a temporary COVID-19 Income Support Allowance (ISA) program for formal and informal sector workers and the self-employed whose income had been affected by the pandemic. The allowance would be offered to all Maldivian adults of working age, who were employed until March 1, 2020, and whose incomes were now below MVR 5,000 (about US$330) per month. The allowance was to top-up any income received to a level of MVR 5,000 per month. The program was initially authorized for three months but could be extended if needed. The GoM was also considering additional policies to assist workers to cover their basic needs, stay active and keep their skills current until activities resumed, including skills training and other activities that could add value to workers and businesses. The COVID-19 ISA program was considered by the GoM to be a temporary safety net for affected workers until a contributory unemployment insurance program was developed, as prioritized in its SAP 2019-2023. Its implementation would use NSPA’s administrative and payment systems, and beneficiary data would be stored in the SPIS. Theory of Change (Results Chain) 8. The Project’s Theory of Change (TOC), as presented in the Project Appraisal Document is provided in Figure 1 below. Revisions to the TOC introduced through the Project’s restructurings are shown in italics The Key Expected Outcomes are presented in the column under Impact. Those under the column Outcome are longer-term outcomes that would result from the Project. This was the first engagement by the World Bank in Maldives’ focused on social safety nets , and while the Project aimed to mitigate the pandemic’s impact on a short -term, emergency basis, it was framed within a broader context and aimed to invest in building a more resilient, adaptive, and fiscally sustainable SP system. 1 The ERP was designed to provide relief packages to businesses with annual revenue above MVR 10 million through the Bank of Maldives (BML) and to those with revenues below MVR 10 million through the SME Development Financing Corporation. The MoED was to pay a key role in verifying the applications for the ERP, using its data on employment contracts in consultation with other actors such as the MPAO, to ensure that firms did not violate the conditions on retaining workers. Page 2 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Figure 1: Theory of Change Project Development Objectives (PDOs) 9. The PDO was to mitigate the economic impact of the COVID-19 crisis on workers and their families, and to increase the capacity of social protection systems to respond to future emergencies. Key Expected Outcomes and Outcome Indicators 10. The Key Expected Outcomes and PDO Indicators (PDOI) defined to assess progress were as follows: a. Mitigate the economic impact of the COVID-19 crisis on workers and their families. i. PDOI 1 and 2: Number of beneficiaries enrolled in COVID-10 Support Allowance (and number of female); (Baseline: 0; Target: 10,000, of which 3,000 female); b. Increase the capacity of social protection programs to respond to future emergencies. i.PDOI 3: Island councils with access to NSPA SPIS to view and update records (percentage); (Baseline: 0; Target: 50 percent); ii.PDOI 4: National Social Protection Framework formally adopted by competent authority (Yes/No); (Baseline: No; Target: Yes). The Project’s Results Framework (RF) also included eight Intermediate Results (IR) Indicators (Annex 1). Page 3 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Components Component 1: Temporary assistance to workers affected by the COVID-19 pandemic (US$12 million equivalent) 11. This component was designed to finance: (a) a program of temporary income support for individuals who had lost a job since the onset of the COVID-19 pandemic or suffered a loss of income as a result of the pandemic, including provision of a COVID-19 ISA; (b) data collection and storage in NSPA’s Social Protection Information System (SPIS) to facilitate follow-up and future support; and (c) a program of media outreach to inform the public of the program and eligibility conditions. 12. The financial support would be a top-up of any existing income to a maximum of MVR 5,000 per month. It would be offered to anyone applying through the Job center (online or in persons at local island council offices) and demonstrating that they had either lost a job since the crisis’ onset or were suffering a total loss of income as a result of the crisis. NSPA would support persons requiring assistance in preparing the required application and documentation. Applications would be reviewed by the MoED team, assessed against transparent criteria and the final list of beneficiaries would then be sent to NSPA for payment. Component 2: Strengthening social protection delivery systems and institutions (US$0.8 million equivalent) 13. This component was designed to help strengthen the GoM’s social protection system to better respond to future crises and disasters through: a. Strengthening NSPA’s Delivery and Targeting Systems: (i) expanding and improving the NSPA SPIS; (ii) reviewing the GoM’s social protection programs and eligibility criteria; and (iii) testing and rolling out new systems in major population centers in each atoll; b. Developing a Fiscally Sustainable Unemployment Insurance Program: designing and implementing a fiscally sustainable unemployment insurance program that would be financed in part through employer/employee contributions and cover both formal and informal sector workers; c. Improving Retirement Pension Programs: developing a plan to improve the fiscal sustainability, coverage and benefits of the Maldives Retirement Pension Scheme (MRPS) and other government- financed pension schemes and social pensions programs; d. Developing a National Social Protection Framework: developing a comprehensive National Social Protection Framework, including a gender gap analysis to strengthen gender-sensitive programming; and e. Project implementation, management and reporting: financing for incremental operating costs, project staff and consultants, monitoring and evaluation (M&E), communication and relevant training. Component 3: Contingent Emergency Response Component (CERC) (US$0 million) 14. The Project would contribute to providing immediate and effective response in the event of an eligible crisis or emergency. The allocation to this component would minimize time spent on reallocation of funds from programmed activities. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) 15. The Project was adjusted four times: (a) the first project restructuring in December 2020; (b) an SDR 15.2 million (US$21.6 million equivalent) Additional Financing (AF) Grant was approved in January 2021; (c) a second project restructuring in December 2021; and (d) a third project restructuring in December 2022. Revised PDOs and Outcome Targets 16. The PDOs were not revised. With the AF, three new PDO Indicators and corresponding targets were included to measure progress towards PDO 1, and targets for PDOIs 1, 2 and 3 were increased. The PDOI targets were Page 4 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) subsequently adjusted in the second and third project restructurings. There were no adjustments to PDOIs or targets to measure progress towards PDO 2. Revised PDO Indicators 17. The adjustments to the PDO Indicators and targets are presented in Table 1 in Section II B. Revised Components 18. The AF scaled up the allocation of component 1 by US$21.6 million to finance payments made to ISA beneficiaries through December 2020. No changes were made to the design of the ISA program, its intended beneficiaries, or the implementation arrangements. Final targets for the core PDO indicators (number of beneficiaries and number of female beneficiaries) were increased as more beneficiaries would register for the program and new indicators were added to capture the number of person-months of support provided and the number of female self-employed beneficiaries. 19. While the focus of the first restructuring before the AF was to allow for payments to continue past June 2020 with remaining funds under the parent project and to extend the eligibility criteria for the program, the second restructuring -which took place after the AF -expanded the scope of component 1 to the following: a. Temporary assistance to workers: Same as original description of component 1; b. Upskilling of jobseekers in priority trades: Providing certificate-level training courses for 1,200 unemployed Maldivians through accredited training institutes. Courses would be offered in accounting, information technology and tourism. The subject of training would be decided by the beneficiary upon submission of an expression of interest and selection would be contingent on satisfaction of prior learning requirements. The Project would finance the cost of training paid directly to the training provider, a stipend of MVR 5,000 per month, conditional on attending 80 percent of classes and passing required examinations, and a transport allowance, if needed; c. Apprenticeship programs: Providing apprenticeships for 400 unemployed Maldivians in local firms and state-owned enterprises in priority sectors. The apprentices would be selected competitively from ISA beneficiaries expressing interest in the program, and employed in the firm for six months, during which they would benefit from on-the-job training. The Project would finance an allowance of MVR 7,000 per month directly to the beneficiary conditional upon satisfactory attendance, and a transport allowance, if needed; and d. Entrepreneurship program: Providing business skills training and capital improvement grants to 1,200 informal self-employed workers impacted by the pandemic. The workers would attend a 10- day business skills clinic conducted by the Maldives Business Center Corporation, including modules on business planning and proposal writing, financial literacy, marketing and coaching. The Project would finance ongoing mentoring to beneficiaries and a business development grant of MVR 60,000 to beneficiaries that complete the clinic successfully and present a business plan. Other Changes 20. The original credit and grant closed as planned on June 30, 2022 while the AF closing date was extended by six months to December 31, 2022 in the second restructuring and by one year to December 31, 2023 in the third restructuring. Page 5 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Rationale for Changes and Their Implication on the Original Theory of Change 21. The GoM extended the ISA program to September 2020 by issuing a gazette notification on August 9, 2020 so the rationale for the first restructuring was to allow for the reimbursement of funds for the extended months of July to September for ISA, and such further extension as may be required.2 The rationale for changes through the AF was to scale up temporary assistance to workers and retroactively to extend the period for providing transfers from June 2020 through December 2020 (Section III b). This was in view of the continued high prevalence of the virus worldwide whereby Maldives’ hotels and resorts were forecasting continued weak demand through the peak winter seasons (December 2020-February 2021). This scaling up did not impact the TOC. The rationale for changes under the second restructuring was that: (a) the amount allocated for September to December 2020 transfer payments exceeded the amount required by approximately US$8.2 million equivalent, and (b) the GoM requested that these funds be applied to more targeted support to wage and self-employed workers to enhance their skills and find more productive employment in the post-COVID economy. These changes were consistent with and expanded the original TOC. These activities were designed to assist the remaining unemployed/under-employed beneficiaries to recover fully from the economic shock of the pandemic through the piloting of a new productive inclusion approach that the GoM considered incorporating into the unemployment insurance program being developed under the Project’s component 2 (c). The rationale for changes under the third restructuring was to provide additional time for completion of the employment programs introduced in the second restructuring in view of the longer time required for consultations with stakeholders (including training providers), development of new modules including for training providers, self-employment applicants, a new payment workflow module, and the design of the grant program. II. OUTCOME A. RELEVANCE OF PDOs 22. When it was approved, the Project was aligned with the World Bank Group’s strategy to support the GoM in providing a fast and flexible, emergency response to the COVID-19 crisis, within a broader objective to strengthen the capacity for delivery and adaptability of the Maldives’ social protection system. It also contributed to the three strategic objectives of the World Bank Group Country Partnership Framework (CPF) for Maldives (Report No. 103724-MV) and updated by the Performance Learning Review of the CPF FY16-20 (Report no. 123696-MV). Its PDOs continue to be fully aligned with the country’s needs and the World Bank’s assistance priorities as described in the new CPF for the Republic of Maldives for the Period FY2023-2027 (Report no. 177788-MV). Specifically, the PDOs are fully aligned with the CPF’s Higher Level Objective (HLO) 3, Improved Human Capital Outcomes. The new CPF highlights the challenges to be addressed under HLO 3, including the following: (a) in the near term, the need to continue containing the threats from COVID-19; (b) poorly targeted and expensive pension and social safety nets; (c) the unemployment insurance program that is only temporary; and (d) limited vocational training and linkages with labor markets. The Project as originally appraised addressed the first three of these; its later AF and restructuring helped maintain its relevance in these areas, and, in fact, strengthened relevance by addressing training and linkages with labor markets as well. Most importantly, the outcomes of the Project are well aligned with the 2023-2027 CPF’s first high-level outcome of improved resilience to shocks. The project rapidly 2 The Project’s Financing Agreement provided that the loan would finance transfers for the three-month period ending in June 2020. The GoM subsequently extended the ISA program to September 2020 through a Gazette Notification dated August 9, 2020. This voided the original May 13, 2020 notification. It also made one change to the eligibility criteria: persons that had lost their jobs any time after December 1, 2019 (previously the cutoff what March 1, 2020) would be eligible for July-September 2020 payments. Page 6 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) responds to an unprecedented shock, through an income support program, while also further strengthening the system to be better prepared to respond to future shocks is fully in line with this critical high-level objective. 23. The PDOs continue to be aligned fully with the GoM’s development program anchored to the 2019-2023 Strategic Action Plan in its Caring State pillar that aims to better target social assistance programs, and with its development priorities. The GoM took decisive actions to ease the impacts of the pandemic, including those supported by the Project. With its strong response and a robust bounce back in tourism, the Maldives’ economy recovered quickly in 2021-22, with GDP recovering to close to its pre-COVID level. Nevertheless, improving the country’s social protection system, including a sustainable unemployment insurance program, is required to help protect Maldivians in the event of an economic slow-down. This is reflected in the GoM’s post-COVID-19 priorities highlighted in the document “Building National Resilience and Recovery 2020-2022” that are built around three principles—decentralization, diversification, and building resilience. The document emphasizes the key role of refining social protection to better target the most vulnerable. 24. As highlighted in the CPF, as the immediate assistance needs precipitated by the COVID-19 pandemic subsided, the World Bank’s assistance main focus turned to longer term needs, building upon background work supported by the Project. A follow-up project—Sustainable and Integrated Labor Services Project (SAILS, P177240)—aims to pilot a longer-term sustainable unemployment insurance program that is integrated with helping workers find gainful employment through training programs. The goal would be the launch of a sustainable unemployment insurance program covering at least 30 percent of the working population, of which 33 percent would be women while continuing to invest in enhancing skills and job placement for workers. Assessment of Relevance of PDOs and Rating 25. Relevance of PDOs is rated High in view of their continued relevance to the World Bank Group’s CPF and the GoM’s needs and priorities. As the need for ISA payments subsided, the second restructuring approved in December 2021 maintained the relevance of the PDOs by refocusing investments and activities on policies and instruments needed to strengthen the social protection system’s capacity to respond to future emergencies and promote resilience of Maldivians. B. ACHIEVEMENT OF PDOs (EFFICACY) 26. The Project achieved its objectives, as measured by the PDO and IR Indicators in its RF. PDO Indicators and targets, as adjusted during implementation are presented in Table 1. Overall, the Project was able to overachieve most of its targets, and deliver rapid emergency relief during a crisis, as well as invest in preparing the labor market for the transition out of the pandemic, and further investing in enhancing resilience and opportunities for the population. The tracer study conducted by GoM, shows that not only the project was successful in providing support during a time of crisis but that training was very successful in enhancing resilience and wellbeing of workers. Seventy-five percent of the surveyed training beneficiaries reported that the training helped them in getting a better job or finding better job opportunities. Over a third reported that training helped in salary increments and 16 percent in getting a promotion. Other factors reported are matching the training skills with the transferable skills, getting a certification and knowledge gained through the training which helped them with getting a job—all of which is expected to have long lasting impact. The Project also financed the setting up of a decentralized system for registering beneficiaries of social assistance and important technical assistance to develop a social protection framework, and the design of an unemployment insurance and input for pension reforms. Page 7 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Table 1: Adjustments to PDO Indicators and targets over implementation Indicator Baseline Appraisal 1st Restruct. AF Target 2nd Restruct. 3rd Restruct. Achieved Target Target Target Target PDO INDICATORS PDO 1: Mitigate the economic impact of the COVID-19 crisis on workers and their families Beneficiaries of Safety Net Programs 0 10,000 No change 15,000 24,000 No change 27,104 Beneficiaries of Safety Net Programs, female 0 3,000 No change 4,500 9,400 No change 10,742 Indicator Baseline Appraisal 1st Restruct. AF Target 2nd Restruct. 3rd Restruct. Achieved Target Target Target Target Beneficiaries of Safety Net Programs, self- 0 1,100 6,500 No change 8,064 employed female Cash transfers paid to eligible beneficiaries 0 80,000 100.000 95,000 97,334 during pandemic (person months) (number) Cash transfers paid to eligible female 0 24,000 33,000 No change 35,180 beneficiaries during pandemic (person months) (number) PDO 2: Increase the capacity of social protection programs to respond to future emergencies Island councils with access to NSPA SPIS to 0 50 No change No change No change No change 85 view and update records (%) National Social Protection Framework formal No Yes No change No change No change No change Yes approved by competent authority (Yes/No) PDO 1: Mitigate the economic impact of the COVID-19 crisis on workers and their families: Achieved 27. The ISA program completed payouts to 27,104 beneficiaries (of which 10,742 were women and 8,064 were self-employed female workers), exceeding the targets for PDO Indicators 1 through 5, as presented in Table 1 in Section I B. The MoED addressed some initial issues that delayed the application process (Section III B) by streamlining processes for registering for the program and adding staff so that by completion, the payment of transfers was timely: first payments were made within four weeks of application meeting the IR Indicator target. The GoM also met or exceeded all IR Indicator targets for the ISA program. All grievances were addressed within two weeks, 100 percent of beneficiary records were stored and accessible in SPIS, and 92 percent of ISA beneficiaries at closing of the program were satisfied with the program’s enrollment and payment processes. 28. With the expanded focus of Category 1 in the second restructuring, applications for the training were opened through the Job Center portal in April 2022. A total of 3,830 applications were received in two phases, of which 3,508 were enrolled successfully. Approximately 23 percent of enrolled applicants were female. Eighty six percent of the enrolled beneficiaries successfully completed the training programs and earned industry accepted certifications. The highest number of beneficiaries completed programs in diving, accounting, ICT and tourism, showing very promising results for the program in the tourist sector. A tracer study of the training programs found that 49 percent of the beneficiaries were employed six months after completing the training; and the main reasons for the rest not being employed were pursuing further studies and looking for more flexible job opportunities. 29. The apprenticeship program was conducted in two phases during which 547 applications were received and 153 beneficiaries were enrolled. The program had a large rejection rates. High rejection was mainly because numerous applicants did not meet the basic eligibility requirements—they were either employed or worked more than 20 hours per week. At the end of the program, 97 applicants successfully completed the program, of which 25 percent were female. Page 8 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) 30. A total of 2,824 applications were received for the entrepreneurship program, of which 2,319 were trained. A deliberate effort was made by the project team to ensure high participation rates of women into the program. Significant percentage of participants were women (85 percent) apparently according to surveys since young women felt that becoming self-employed allowed then to better control of their time. Trained applicants were given the opportunity to apply for the self-employed grant program which was carried out in three phases. By the end of the project, 844 self-employed workers received financial assistance, out of which 60 percent were women. The main challenge in implementing the self-employment programs related to difficulties faced by applicants with providing proof of their status as self-employed. PDO 2: Increase the capacity of social protection programs to respond to future emergencies: Achieved 31. The GoM implemented several tasks aimed at defining the future direction of its social protection system to respond to future emergencies. Progress towards PDO Is for PDO 2 are presented in Table 1 in Section I B. The SPIS was improved to address NSPA’s needs, with the objective of improving connectivity with island council offices and other government agencies. A beneficiary portal was developed for the NSPA’s social registry to allow online applications and updates to be submitted by local council offices (as opposed to mailing a written form to be entered manually by NSPS officials at headquarters). By completion, 85 percent of island councils had access to NSPA’s SPIS to view and update beneficiary records, exceeding the PDO Indicator target (50 percent). 32. A National Social Protection Framework presenting a detailed assessment of the sector’s structure, existing programs, their financing and impact, and laying out a multi-stakeholder action plan for the sector’s future direction was officially launched and adopted by the NSPA and Ministry of Gender, Family and Social Services in January 2023. 33. The GoM developed a comprehensive design for an unemployment insurance program, comprising the program design, its components, financing, implementing arrangements, M&E structure and plan, staffing requirement, risks and mitigation strategies. The new unemployment insurance will provide fiscally sustainable job search assistance, training and income support to the unemployed for a fixed period, and will be self-financing based on contributions from employers and workers. It will complement the initiatives being undertaken in the MEERY Project to deepen and broaden vocational training by creating a platform through which jobseekers can access training opportunities. This program is being implemented under the World Bank-financed SAILS Project (Section II A). 34. The GoM also developed an assessment on retirement income support, including strategies for improving compliance with MRPS contribution rules, a strategy for reform of social pensions and government pensions, a strategy for maximizing retirement savings and worker coverage, a payout phase assessment and a strategic direction for the sector. It presents recommendations on how to address issues such as low contribution rates, difficulties with compliance monitoring, and coverage and financing management. Justification of Overall Efficacy Rating 35. Overall efficacy is rated High, as the Project met or exceeded targets for all indicators in its RF, and thereby achieved its objectives. Page 9 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) C. EFFICIENCY Economic Impact 36. The Project’s economic impact is rated High. The economic analysis carried out at Appraisal indicated the Project was expected to have a positive economic impact. The Project was designed to provide temporary emergency income support to people most impacted by income loss due to the COVID-19 pandemic. Due to the Maldives not having scalable income support programs similar to those that are already established in many other upper-middle-income countries, the ISA was a temporary measure established in response to the economic shock. It followed international best practices in providing support to workers, offering a top-up of income to those currently employed, and a guaranteed minimum income for those who have lost their jobs or incomes due to the pandemic. Analysis of expected costs and benefits of the main interventions used the best evidence from income support programs in Spain and the USA. Moreover, the project, was later restructured and extended with a pilot of active labor market programs to support skills development and entrepreneurship of Maldivian workers which also had a positive impact in terms of increased employability and annual earning as a result of program participation. 37. The computed return on investment was conservative as it underestimated the likely impact of spillovers, not only in the broader economy but also within the household. Beneficiaries with children likely also benefited from the protection the income support offers to their nutrition and emotional well-being, protecting their human capital and thereby their lifelong welfare and earnings prospects. Additionally, the analysis did not consider the potential benefits of the program in promoting social stability at a time of mass unemployment, which could have broader consequences for the country’s economic future. The rate of return also did not consider the expansion of the program to skills development and business development after the restructuring. Active Labor Market Programs are proven effective in improving labor market outcomes and can have significant positive multiplier effects on the economy3. Implementation Impact 38. The Project’s implementation was efficient. It was implemented with only a one-and-a-half-year closing date extension of the AF, and that was only to provide additional time to complete the newly introduced skills development and entrepreneurship programs under component 1. Maldives could not count on a large-scale social registry to register beneficiaries, but government was able to rapidly set up an efficient system to register and pay beneficiaries. Implementation was all the more efficient when considering the physical environment in which the Project was implemented—a country with population scattered across more than 1,190 islands, and the consequent transportation and communications difficulties that the geography created. Assessment of Efficiency and Rating 39. Overall efficiency is rated High, as the Project is deemed to have a positive economic impact, was mostly implemented within the planned timeframe, and even scaled up with a pilot adding to the positive impact. D. JUSTIFICATION OF OVERALL OUTCOME RATING 40. Overall outcome is rated Highly Satisfactory, based on the Project’s high relevance, high efficacy and high efficiency. 3 Escudero, V. Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison. IZA J Labor Policy 7, 4 (2018). Page 10 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 41. Special effort was made to benefit women as they were expected to be severely hit by the pandemic. Female labor force participation in Maldives was only 46 percent in 2019, compared to 77 percent for men. Further, one in four working women was self-employed or employed in an informal family enterprise, compared to only 13 percent for men. Women made up 56 percent of self-employed workers in Maldives. The loss of employment due to COVID had the potential to push self-employed women out of the labor force permanently. While the ISA was expected to help women remain in the labor force, the absence of formal contracts, lack of documentation and the informal nature of their work made it more difficult for women to prove income loss and apply for temporary benefits. Some women, in the initial stage of the program, simply did not apply due to assumptions that they would not be eligible. To address this, the PMU encouraged and assisted women in self-employment to apply for benefits by: (a) targeting outreach and communications to women; (b) tailoring support services for female self-employed workers to help them apply, including training island council officials to support those workers with their applications and publicizing the support hotline; and (c) providing flexibility in documentation requirements to be eligible for income support. Specifically, self-employed workers could provide documentation such as receipts and letters from customers or the council. Outreach programs publicized this. PDO Indicators disaggregated achievements for women beneficiaries and in the AF a PDO Indicator was introduced to measure the number of self-employed female beneficiaries. Institutional Strengthening 42. The PDO aimed to increase the capacity of social protection systems to respond to future emergencies. The activities and investments under component 2 achieved several important outputs and intermediate outcomes that will have an important impact on the future capacity of the Maldives’ social protection system (Section II B). 43. The Project contributed to enhancing the SP system responsiveness and resilience for the future. It provided extensive technical assistance to the government over the period of implementation to strengthen the system and programs, particularly more responsive for future economic crises and disasters. The remarkable improvements were to: (a) the Social Protection Information System (SPIS) of the National Social Protection Agency (NSPA) to enhance presence and connectivity with other government databases; (b) the design of a new contributory unemployment insurance scheme, which is expected to serve as a fiscally sustainable source of temporary income support for workers who lose their jobs or incomes in the future; and (c) the development and adoption of a National Social Protection Framework to ensure broad-based and adaptive social protection coverage of Maldivians across their life cycle and improve coordination and data sharing between programs. Mobilizing Private Sector Financing 44. N/A Poverty Reduction and Shared Prosperity 45. The project specifically targeted workers impacted by the pandemic. The ISA program was open to informal and self-employed workers as well as formal workers that came to be unemployed or under-employed. As of September 2020, 21.4 percent of applicants were self-employed. The ISA raised workers’ incomes to a minimum of MVR 5,000 per month and tapers so that those still earning more than that amount would not receive support. As a result, the allowance was highly progressive. Skills development interventions introduced in the second restructuring were also targeted to unemployed and underemployed workers that had been negatively impacted by COVID-19, enhancing workers employability and future well-being. Page 11 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Other Unintended Outcomes and Impacts 46. N/A III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 47. The Project was part of a broader response by the World Bank to address the impacts of the COVID-19 crisis. The Project’s income support was expected to encourage beneficiaries to shelter at home to avoid infection, thereby complementing efforts under the World Bank-financed COVID-19 Emergency Response and Health Systems Preparedness Project (P173801) to contain the virus’ spread. Similarly, the MoED was expected to link beneficiaries to training provided under the Maldives Enhancing Employability and Resilience of Youth Project (P163818). 48. The Project was designed for a short implementation to provide immediate, emergency response, and, further, to invest in designing priority reforms to the Maldives’ social protection system that would have longer lasting impact. Activities under component 2 were all priorities in the GoM’s SAP 2019-2023 and counted upon its full commitment. 49. The rationale for World Bank involvement was strong. Preparation built upon a successful track record of collaboration with the GoM in establishing social protection institutions. In 2009, with support under the Pension and Social Protection Administration Project (PSPAP) (P104743), the GoM quickly established the MPAO and the MRPS. As of 2020, the MRPS had net assets of MVR 11.2 billion (US$726 million) under management, paid benefits to almost 20,000 retirees, and had around 95,000 active contributors. The MPAO has continued to develop its administrative systems, including developing a mobile application for beneficiaries to check their balances on demand. With support under the PSPAP, the GoM set up the NSPA, which operates the country’s largest beneficiaries’ registry, implements the country’s main antipoverty programs, and played a pivotal role as the payment agent for the Project’s ISA program. 50. The Project’s implementation arrangements were streamlined but effective and ready for implementation. The MoED established a Project Management Unit (PMU) headed by a Project Director and comprising a Deputy Director and the following specialists: financial management (FM), procurement, environmental and social (E&S), M&E and communications. By appraisal, the positions had all been filled by consultants meeting required qualifications. A Project Steering Committee (PSC), chaired by a senior MoED official and comprising high-level officials from the MoF, NSPA, MPAO, and the President’s Office, was established to periodically review progress, coordinate activities and make necessary adjustments and decisions. In view of the challenges posed by social distancing at the time, the project planned to rely upon online and mobile-based applications. 51. The Project’s risks were considered Substantial reflecting the high macroeconomic risk combined with substantial political and governance and institutional capacity risks. The macroeconomic risk included the possible worsening of the economic situation with larger job losses compounded with a tightening fiscal position, but the Project itself and development partner financing and technical support were expected to help Government weather this risk. The political and governance risks were associated with the prospect of pressures associated with lockdowns, global uncertainty, and financing and the fact that political conditions could change at any time. The Project’s short implementation period, especially for the income support element that did not require sustained commitment, mitigated this risk. Finally, the institutional capacity risk stemmed from the MoED’s lack of experience in managing World Bank-financed projects. Despite the establishment and staffing of the PMU, its staff faced a steep learning curve that could pose a substantial risk for a project but, with close World support to ensure capacity, especially during initial implementation, the team was expected to learn and respond very quickly. Page 12 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) B. KEY FACTORS DURING IMPLEMENTATION 52. The World Bank’s SDR 4.7 million credit and SDR 4.7 million grant for the CEISP was approved by the Board of Directors on June 9, 2020, signed on June 13, 2020 and became effective on June 26, 2020. The Project was ready for implementation after approval. The financing was made effective and all covenants met within one month of effectiveness. The disbursement conditions for component 1 were lifted promptly, and a disbursement of US$4.1 million (32 percent of funding) was made by August 2020. 53. The ISA program was initially announced for April, May and June 2020, but was later extended. Its targeted beneficiaries were persons working in Maldives (with or without written agreement, for full time or part time work, and self-employed for the previous six months) whose employment status had changed or been impacted after March 1, 2020, and who met the following criteria: (a) terminated or suspended with no pay; (ii) sent on leave without pay; or (iii) had salary reduced. The online portal functioned without technical difficulties since its launch. For those without internet access, applications could also be submitted in hardcopy through local island councils. On August 9, 2020, the GoM announced an extension of the ISA program for July, August, and September 2020 in response to the worsening employment situation in the country. With the extension of the ISA program beyond June, the GoM relaxed the requirement that the applicant needed to have been employed before March 1, 2020. Given the increasing number of workers laid off after July, as well as the broader definitions of eligibility, there was a surge in applications for July, August and September, and its duration was then further extended. 54. The AF was approved expeditiously and flexibly in response to a request from the GoM to count upon continued financing for the ISA program through at least December 2020. The World Bank processed the AF proposal using flexibilities provided under World Bank Policy for Investment Project Financing, paragraph 12: Projects in Situations of Urgent Need of Assistance or Capacity Constraints. This permitted preparation of the AF using condensed procedures and with a 40 percent retroactive financing ceiling. Further, the World Bank approved an exception to the Investment Project Financing Policy to process additional financing only for projects that have been under implementation for more than 12 months. 55. The main initial constraints in the ISA program related to the MoED’s capacity to process applications rapidly. Applicants needed to provide documentation electronically to MoED, including a national identity card, contact information, employment information, including documentation to support the claim of employment or income loss. The applications were reviewed individually by MoED officers, often requiring follow-up or clarification with the beneficiary or employer. The PMU addressed the processing delays through system improvements and increased staffing, and the application processing time was reduced from 41 days to 27 days by July 2020. A further 30 claims processing staff were hired in October 2020 to handle the surge in applications in July through September 2020. 56. The World Bank’s team coordinated the design of new employment activities introduced in the second restructuring with the team supporting the World Bank-financed Enhancing Employability and Resilience of Youth Project (MEERY, P163818) that was under implementation at the time. This was to ensure that the activities to be financed to enhance skills development and employability of workers impacted by the pandemic would complement rather than duplicate the efforts under that project. The teams agreed that activities to be financed would be limited to the ISA program acting as a buyer of skills training services, for which it would rely on the MEERY project PMU to advise on minimum standards, develop curricula, and expand the set of qualified training providers and course option in the Maldives. Page 13 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 57. The Project’s RF was concise and consistent with its PDOs and TOC. The RF as appraised contained four PDO and ten IR Indicators; all were well defined and described in the Project Appraisal Document (PAD), along with the methodology and responsibility for data collection, data source and frequency. PDO Indicators were mostly intermediate outcome or output indicators, that were complemented by IR Indicators to measure progress in achieving outputs required for their achievement. This was appropriate in view of the Project’s emergency nature and its planned very short, two-year implementation period. Baseline values were all zero and target values for indicators were realistic for the Project. The MoED Department of Project Management and Monitoring (DPMM) was responsible for project monitoring, with oversight from the MoF, and was to provide quarterly reports on progress towards achieving the results indicators for review at meetings of the PSC and with the World Bank. M&E Implementation 58. The Project’s M&E Specialist in the PMU collected and maintained data regularly to update the RF in accordance with an M&E Plan detailed in the Project Operations Manual. The RF was adjusted in the AF and all three restructurings. The adjustments in the AF reflected the scaling up of component 1 and introduced two new PDO Indicators to track both the number of persons supported and the scale of support provided in terms of months supported. The RF was subsequently adjusted with the second restructuring whereby two new IR Indicators were included to monitor progress of new programs that were introduced. Several surveys were carried out: (a) beneficiary feedback surveys were conducted at the conclusion of each of the three phases of the ISA; (b) a training beneficiary survey; and (c) a phone survey to track individuals who received self-employment support grants. M&E Utilization 59. M&E was utilized to track the Project’s progress, keep implementation on track, and will provide input to adjust different programs to reflect beneficiary feedback and outcomes. Justification of Overall Rating of Quality of M&E 60. The Quality of M&E is rated High. There were no shortcomings in the M&E system’s design, implementation or utilization. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE Environmental and Social 61. The Project Appraisal Document highlights that its social risks were considered moderate. A Stakeholder Engagement Plan (SEP), a Labor Management Procedure, and an Environmental Social Management Framework were prepared that involved measures for community outreach and stakeholder consultations, assistance from island councils to submit the required documentation and establish bank accounts, Occupational Health and Safety (OHS) standards for workers to prevent the spread of infection, and a hotline for support with application and to register grievances. 62. Environmental and Social (E&S) compliance was satisfactory. The PMU was staffed with focal persons responsible for consultations, communications, the grievance redress mechanism (GRM) and labor management. Campaigns and awareness raising was done through social and traditional media channels, 188 island councils participated to consultations to inform the process of registration and verification, media and civil society group Page 14 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) participated and helped in disseminating information about the ISA program and registration, and the private sector and business associations participated into consultation on the targeting and verification. The Project’s GRM functioned well, with 45,728 grievances received, of which 45,698 had been resolved, all within a two-week period. About 65 percent of grievances were related to request for guidance on the application process and the status of applications submitted, and the remainder were related to delays in payments or expressions of dissatisfaction with the application process, including the amounts received. The PMU carried out periodic beneficiary satisfaction surveys following each phase. In phase 1 (April-June 2020), the application approval rate was 66 percent and the percentage of female applicants was 23 percent. Measures were taken to reduce application processing times and island councils reached out to vulnerable groups to assist with applications. As a result, the application approval rate increased to 93 percent in phase 2 (July-September 2020) and the percentage of female applicants increased to 45 percent in phase 3 (October-December 2020). The GRM was then extended successfully to the skills development and self-employment grants activities. From October 2022 to December 2023, the GRM system reported 3,207 general inquires for the skills development and entrepreneurship grant programs, 559 related to payments for stipends, 1070 for issues and inquires related to the job portal to submit documentation. All the inquiries were rapidly resolved. Fiduciary 63. The PMU was responsible for financial management (FM) and procurement functions. Capacity was weak at the start of implementation but improved over implementation. Some FM issues were identified as needing improvement during implementation, especially in view of the additional activities that were introduced with the first restructuring. The issues were: delays in submission of financial reports, issues in the accuracy of the reports, delays in the audit process and submission in delays of audit reports. These issues were addressed by staffing the PM with suitably experienced, qualified and dedicated full-time experts. There were no issues with procurement management. C. BANK PERFORMANCE Quality at Entry 64. The World Bank rapidly responded to the GoM’s request for emergency assistance and helped prepare a very focused project, with streamlined implementation arrangements and a correct balance between emergency response and activities aimed to institutionalize results based on technical work and project experience. The Project built upon earlier assistance provided by the World Bank and was designed following best practice for social protection programs while considering the situation of urgent needs. The Project’s risks were well identified and mitigated to the extent possible. Its RF was simple, contained, and appropriate for an emergency project with a short implementation period, and M&E arrangements were in place. The Project was ready for implementation. In sum, the preparation team put in place a project with all elements required for strong implementation. Quality of Supervision 65. The World Bank’s supervision was timely, focused and responsive to challenges and opportunities. With a very well performing project, the supervision team responded expeditiously to the GoM’s request for AF to provide continuation to the ISA program in view of the longer than originally expected impact of the pandemic. When the need for pandemic response waned in early 2021, the team seized the opportunity to work with the GoM to advance the piloting of complementary employment support programs in its agenda in coordination with the team supporting the MEERY project to avoid duplicating efforts under that project. The team prepared seven thorough Implementation Status and Results Reports with updated monitoring data and realistic assessments of performance and worked closely with the GoM in the preparation of its Completion Report. Page 15 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) More importantly, the team supported the GoM in identifying measures to course-correct when beneficiary surveys revealed that need for more expedited processing of applications and when minor FM issues surfaced. In its final stages, the same team worked with the GoM in preparing the next stage project aimed at putting in place an unemployment insurance program and workers upskilling/re-skilling built upon the Project’s findings and outputs and considering its lessons of implementation. Justification of Overall Rating of Bank Performance 66. Overall World Bank performance is rated Highly Satisfactory in view of its strong performance in supporting quality at entry and similarly strong performance in providing timely and responsive implementation support. D. RISK TO DEVELOPMENT OUTCOME 67. The risk to development outcome is low. Precipitated by the COVID-19 pandemic, the Project financed a program that the GoM had prioritized in its SAP 2019-2023. The Government is fully committed to the Project’s objectives and a continuation and formalization of them in the form of an unemployment insurance scheme that will protect workers in the face of future emergencies. That process is being supported by the World Bank under the SAILS Project (Section II A), that is financing two interlinked schemes: (a) an unemployment insurance scheme that will provide unemployment benefits and insurance against shocks, and (b) an employment services scheme that will provide counseling, job search assistance, targeted training and coaching to assist jobseekers to find suitable jobs. The Government’s growth prospects have improved. With the GoM’s strong response and a robust tourism bounce back, the economy recovered quickly in 2021-22. Nevertheless, the Government will need to continue improving the efficiency of its social protection system and will likely continue to count upon external financing to support the process. On the political front, elections were held in September 2023. The new government assumed office on November 17, 2023, confirming its full commitment to the social protection and skills development agenda. V. LESSONS AND RECOMMENDATIONS 68. Emergency support needs to be timely, simple in design, easy to monitor, with strong and ready implementation arrangements and capacity, and, to the extent possible, rely on existing, proven systems. The Project had all of these characteristics and was successful in delivering timely assistance to its intended beneficiaries. The ISA program piggy-backed seamlessly on the existing NSPA payment system. The ISA program administration coordinated with MPAO to establish automated validity checks of ISA benefit claims. The Project’s implementing agency had the capacity to design the intervention rapidly and implement it successfully. The integrations were established quickly and improved long-term collaboration that are expected to contribute to a more adaptive and inclusive social protection system in Maldives. 69. Proactive outreach and partnerships with local government and non-government agencies are key to inclusion of vulnerable beneficiaries. Under the CEISP, in addition to harnessing social and traditional media, the PMU reached out to local governments, self-employment associations, and women’s groups to disseminate the ISA program. This led to a significant boost in enrolment including of vulnerable groups (i.e. women). In providing continuity to these efforts, under the SAILS project, the government will expand the Job Center at the local level, and Job Center staff will be trained and incentivized to reach out proactively to the local community to enroll in the ES program, raise awareness, provide information to youth, women, and jobseekers on job profiles and career paths, and refer individuals to other government services. Page 16 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) 70. The main challenge in implementing new programs, such as those supported by the Project, relate to disseminating information on application requirements and obtaining necessary documents and support. This is a common challenge in small island states and proved to be a challenge under the Project, and MoED. This was especially the case for self-employed beneficiaries, that encountered difficulties in providing sufficient proof of their status as self-employed. Under the Project, the MoED addressed these difficulties by requesting inspection services and referral through line offices and state-owned enterprises, such as regional job centers and Business Center Corporation. Where reach was limited, virtual and physical inspections had to be carried out by the PMU team. 71. Strengthening the collaboration with island’s councils as satellite offices for NSPA, is making the overall social protection system more prepared to respond to future crisis, including climate crises. The rapid implementation of the emergency response relied on the exiting SP system and on the use of technology to register and make timely payments to beneficiaries. Meanwhile, the Project also invested in enhancing the role of the island’s council in supporting NSPA at the island level for registering and providing follow up support to families most in need. All of the above is contributing to building an adaptive SP system that can be easily scaled up in time of crisis. 72. Combining integrated labor market services with income support can enhance the income-generating potential of the unemployed or underemployed and facilitate inclusive recovery following labor market shocks. The Project proved that workers need additional support (in this case, in the form of skills development and grants for entrepreneurship) to re-enter the workforce after job loss. By creating reliable sources of labor market information including for migrants, matching jobseekers with opportunities, developing skills in the labor force, and encouraging transition to sectors and occupations with high employment potential, governments can accelerate post-shock economic recovery, as well as improve the labor market’s resilience to future shocks. 73. Gender constraints to women employment remain high in Maldives and require a set of diverse complementary interventions to foster women participation. The implementation brought to light the conflict between the aspiration and willingness to participate to self-employment and upskilling interventions, and the reported lack of time and competing priorities at home in taking care of family members and social norm. This is an important lesson for future ALMPs in the Maldives in general and for (short course) skills trainings in particular, implying the need for temporary income support (e.g., stipends) and / or childcare opportunities to accompany skills training interventions targeting women. Also, targeted outreach and communications, tailored support to assist with completing applications, and flexibility in formal documentation requirements were all important in addressing the challenges women faced under the Project. . Page 17 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Mitigate the economic impact of the COVID-19 crisis on workers and their families Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Beneficiaries of social safety Number 0.00 10,000.00 24,000.00 27,104.00 net programs 01-Apr-2020 09-Jun-2020 12-Dec-2022 30-Nov-2023 Beneficiaries of social safety Number 0.00 3,000.00 9,400.00 10,742.00 net programs - Female Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Beneficiaries of social safety Number 0.00 1,100.00 6,500.00 8,064.00 net programs - self-employed female 01-Apr-2020 09-Jul-2020 12-Dec-2022 30-Nov-2023 Comments (achievements against targets): Page 18 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Cash transfers paid to eligible Number 0.00 80,000.00 95,000.00 97,344.00 beneficiaries during pandemic (person months) 30-Apr-2020 09-Jul-2020 12-Dec-2022 30-Nov-2023 Cash transfers paid to Number 0.00 24,000.00 33,000.00 35,180.00 eligible female beneficiaries during pandemic (person 30-Apr-2020 09-Jul-2020 12-Dec-2022 30-Nov-2023 months) Comments (achievements against targets): Objective/Outcome: Increase the capacity of social protection programs to respond to future emergencies Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Island councils with access to Percentage 0.00 50.00 85.00 NSPA SPIS to view and update records 01-Apr-2020 09-Jul-2020 12-Dec-2022 30-Nov-2023 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Page 19 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) National Social Protection Yes/No No Yes Yes Framework formally approved by competent 01-Apr-2020 09-Jul-2020 12-Dec-2022 30-Nov-2023 authority Comments (achievements against targets): A.2 Intermediate Results Indicators Component: Mitigate the economic impact of the COVID-19 crisis on workers and their families Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Time to receive first payment Weeks 0.00 4.00 4.00 after application 09-Jul-2020 09-Jul-2020 30-Nov-2023 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Grievances addressed within Percentage 0.00 80.00 100.00 2 weeks 01-Apr-2020 09-Jul-2020 30-Nov-2023 Comments (achievements against targets): Page 20 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Beneficiary records stored Percentage 0.00 90.00 100.00 and accessible in SPIS 01-Apr-2020 09-Jul-2020 30-Nov-2023 Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Beneficiary satisfaction with Percentage 0.00 75.00 92.00 COVID-19 Support Allowance enrollment and payment 01-Apr-2020 09-Jul-2020 30-Nov-2023 processes Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of beneficiaries Number 0.00 400.00 150.00 153.00 enrolled in apprenticeships 13-Jul-2021 13-Dec-2021 12-Dec-2022 30-Nov-2023 Page 21 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of beneficiaries Number 0.00 2,000.00 3,508.00 trained 13-Jul-2021 09-Jul-2021 30-Nov-2023 Comments (achievements against targets): Component: Increase the capacity of social protection systems to respond rapidly to future emergencies Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion National Social Protection Yes/No No Yes Yes Framework drafted and presented to competent 27-May-2020 09-Jul-2020 30-Nov-2023 authority Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Unemployment insurance Yes/No No Yes Yes Page 22 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) program designed and 27-May-2020 09-Jul-2020 30-Nov-2023 presented to competent authority Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Program for reforms to Yes/No No Yes Yes pension programs drafted and presented to competent 27-May-2020 09-Jul-2020 30-Nov-2023 authority Comments (achievements against targets): Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Improvements to SPIS Yes/No No Yes Yes completed and tested 27-May-2020 09-Jul-2020 30-Nov-2023 Comments (achievements against targets): Page 23 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: PDO 1: Mitigate the economic impact of the COVID-19 crisis on workers and their families 1. PDI 1-2: Exceeded: The total number of beneficiaries of the program with respect to the parent project target was more than doubled and share of females tripled. It also exceeded revised targets by over 1,000 beneficiaries and 1,342 for females. 2. PDI 5: Exceeded: The total number of beneficiaries female self-employed was over seven times the initial Outcome Indicators target and by 1,564 the revised target (indicator added in the Additional Financing). 3. PDI 6. Exceeded: The scale of support measured by the number of cash transfer paid to eligible beneficiaries was also exceeded by over 20 percent and for female beneficiaries by 47 percent (indicator added in the Additional Financing). 1. IRI 1: Achieved: The target on time to receive payments after application was achieved (4 weeks). 2. IRI 2: Exceeded: All of the grievances were addressed within two weeks, surpassing the initially proposed 80 percent. 3. IRI 3: Exceeded: All the beneficiary records were stored and accessible, surpassing the original target of 90 percent. Intermediate Results Indicators 4. IRI 4: Exceeded: 92 percent of beneficiaries reported being satisfied with the support received, while the initial target was for 75 percent, showing a higher level of satisfaction with the program. 5. IRI 9: Not Achieved: The total number of beneficiaries enrolled in apprenticeships did not reach the target of 400 youth, target achieved at closing of the project 153. 6. IRI 10: Exceeded: The total number of beneficiaries trained surpassed by 75 percent reaching a target of 3,508 beneficiaries trained under the project. Key Outputs by Component Component 1: Temporary assistance to workers affected by the COVID-19 pandemic. (linked to the achievement of the Same as PDO 1 Objective/Outcome 1) Objective/Outcome 2: DO2: Increase the capacity of social protection programs to respond to future emergencies 1. PDI 3: Exceeded: The share of island councils with access to NSPA SPIS to view and update records on Outcome Indicators beneficiaries surpassed the targets by 70 percent, reaching a target of 85% of the islands having access to the system at project’s closing. Page 24 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) 2. PDI 4: Achieved: The national social protection framework was formally approved by competent authorities before project closing. 1. IRI 5. Achieved. The National Social Protection Framework was drafted and present to the competent authorities. 2. IRI 6. Achieved. The unemployment insurance program was designed and presented to the competent Intermediate Results Indicators authorities. 3. IRI 7. Achieved. The proposal for reforms for the pension program programs was drafted and presented to the competent authorities. 4. IRI 8. Achieved. The improvements to SPIS were completed and tested. Component 2: Strengthening social protection delivery systems and institutions. Key Outputs by Component Same as PDO 2 (linked to the achievement of the Objective/Outcome 2) Page 25 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Thomas Walker Task Team Leader(s) Asif Ali Procurement Specialist(s) Bernadeen Enoka Wijegunawardene Financial Management Specialist Gangadari Kamalalatha Ranawaka Ranawaka Arachchige Environmental Specialist Aishath Azfa Team Member Shanek Mario Fernando Social Specialist Sankha Maldeepa Gamage Team Member Shadiya Adam Team Member FNU Zaineb Team Member Hawwa Lubna Team Member Bandita Sijapati Social Specialist Srinivas Varadan Team Member Kamani Madhya Jinadasa Team Member Anita Lakshmi Fernando Team Member Sonya M. Sultan Team Member Frank Anthony Fariello Counsel Hasanthi Shalika Subasinghe Team Member Kaluhath Nadeera De Abrew Rajapakse Environmental Specialist Antonia T. Koleva Team Member Page 26 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Supervision/ICR Francesca Lamanna Task Team Leader(s) G. W. Anjali U. Perera Vitharanage Procurement Specialist(s) Bernadeen Enoka Wijegunawardene Financial Management Specialist Disna Kumari Bandara Makumbure Gedara Environmental Specialist Aishath Azfa Team Member Thisuri Jinadhi Wanniarachchi Team Member Shanek Mario Fernando Social Specialist Jyoti Maya Pandey Team Member Srinivas Varadan Team Member Kamani Madhya Jinadasa Team Member Anita Lakshmi Fernando Team Member Matteo Morgandi Team Member Sofia Said Siraj Team Member Antonia T. Koleva Team Member Milan Vodopivec Team Member B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY20 14.312 51,902.88 FY21 8.051 18,493.78 FY22 2.250 6,488.10 FY23 0 2,891.64 Total 24.61 79,776.40 Supervision/ICR FY21 27.900 149,805.31 FY22 18.200 112,256.48 Page 27 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) FY23 7.481 46,064.89 FY24 3.967 62,318.81 Total 57.55 370,445.49 Page 28 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 3. PROJECT COST BY COMPONENT Table below shows the Initial and Final allocations by components Actual at Amount at Project Percentage Components Approval Closing of Approval (US$M) (US$M) Component 1: Temporary assistance to workers 12 33.95 282.92 affected by the COVID-19 pandemic Component 2: Increase the capacity of social protection programs to respond to future 0.8 0.45 56.25 emergencies Total 12.8 34.4 268.75 Page 29 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 4. EFFICIENCY ANALYSIS The project was designed to provide temporary emergency income support to people most impacted by income loss due to the COVID-19 pandemic. Due to the Maldives not having scalable income support programs similar to those that are already established in many other upper-middle-income countries, the Income Support Allowance (ISA) was a temporary measure established in response to the economic shock. It followed international best practices in providing support to workers, offering a top-up of income to those currently employed, and a guaranteed minimum income for those who have lost their jobs or incomes due to the pandemic. A transfer of MVR 5,000 per month was provided for up to 9 months to help beneficiaries offset income losses from pandemic-related job losses and to aid the possibility of them eventually regaining employment at their former wage level. This was the flagship component of the Project and was able to be delivered rapidly using existing delivery systems, and the expedited set up of an emergency social assistance program. The financing was done retroactively, and the rapid response to the economic shock of the pandemic had significant positive effects on the Maldivian labor market and economy. As part of the second restructuring under the additional financing the project added add on 3 subcomponents that aimed at making workers more employable, and/or gave them the skills and resources needed to establish a means to generate a sustainable income coming out of the crisis. The 3 subcomponents were: (1) Upskilling of jobseekers in priority trades, which included certificate-level training courses to unemployed Maldivians through accredited Maldivian training institutes. (2) Apprenticeship program, which financed apprenticeships for unemployed Maldivians in Maldivian firms and SOEs in priority sectors as an avenue to get on-the-job training at the firm. And finally (3) entrepreneurship program, which financed business skills training and capital improvement grants to informal self- employed workers impacted by the COVID-19 pandemic. Attendance to this skill training program was a prerequisite for the self-employment grant program. 1. COVID-19 Support Allowance Emergency cash transfers are expected to have reduced human capital depletion during the crisis . The program protected individuals from changes in labor income, remittances, and prices in a time of crisis. In the absence of savings and other formal or informal safety nets, households would likely try to smooth their consumption through negative coping strategies like cutting down the number of meals consumed or taking children out of school or selling productive assets. The adverse effects of these could be intergenerational4. Emergency cash transfers have proven to reduce the risk of beneficiaries resorting to negative coping mechanisms during a crisis5. The cash transfers are therefore expected to have supported beneficiary households to protect their human capital accumulation. The cash transfers are expected to have had a significant multiplier effect on the Maldivian economy. Cunha et al. (2022): cross-sectional use of 2SLS on Brazil’s 2020 federal cash transfers to vulnerable households estimated a GDP 4 Bird, Kate and Higgins, Kate, Intergenerational Transmission of Poverty: Research Brief 5 (December 6, 2010). Chronic Poverty Research Centre Research Brief No. 5. 5 Tesliuc, E., L. Pop, M. Grosh, and R. Yemtsov. 2014. Income Support for the Poorest: A Review of Experience in Eastern Europe and Central Asia. World Bank: Washington, DC. Page 30 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) multiplier in the range of 0.5- 1.56. The most immediate multiplier effect is the economic gains that are realized through spending and consumption. Beneficiaries spending their cash may lead to an increase in demand for goods and services, injecting liquidity and stimulating economic activity7.It is likely that beneficiaries with children will also benefit from the protection the income support offers to their nutrition and emotional well-being, protecting their human capital and thereby their lifelong welfare and earnings prospects. Additionally, the analysis does not consider the potential benefits of the program in promoting social stability at a time of mass unemployment, which could have broader consequences for the country’s economic future. Around 56% of the self-employed people who applied for the allowance is women. Evidence suggests that cash transfers can reduce intimate partner violence (IPV) across a wide range of programs and contexts8. More than half of them engaging in low paid work such as farming, preparing local food and other products9. Cash transfers can also help such workers find higher-paying opportunities in the future. Research suggest that cash transfers can have a positive effect on reallocation of labor10. Generous unemployment benefits can increase the likelihood of wage increase once reemployed. The emergency ISA essentially functioned as an unemployment benefit by providing temporary relief to those who can submit a proof of loss of income or job with the application. Critics of unemployment benefits usually highlight the perverse incentives of unconditional cash transfers on incentives to work. However, in the pandemic crisis where work was being suspended for exogenous reasons, social protection experts had advised that such incentive effects could have been discounted. Indeed, there is a body of research that shows that unemployment benefits can help displaced workers find better jobs once economic activity resumes. Similarly, it can lead to more redistribution of income and better protection of workers. According to one study, workers receiving unemployment benefits find jobs with an average wage higher than their previous wage by 0.5 percent. More broadly, generous unemployment benefits increase the likelihood of wage increase that ranges between 0 percent and 10 percent and reduces the likelihood of wage cut that is larger than 40 percent. The positive wage effect is seen to persist over time.11 The project reduced the risk of affected workers adopting negative coping mechanisms (such as pawning of productive assets, forced relocation, and taking children out of school) and protected their human and intangible capital. This is especially true of young and female workers in Malé, who in many cases had moved there from outlying atolls and pay high rents to live near job opportunities. A survey of ISA beneficiaries highlighted the positive impact that the project has had on their lives. Zahida, 30, worked at a concession at Malé’s Velana International Airport. She was put on no-pay leave from her job in April. “[The ISA] helped me to pay my rent,” she said in an interview with the project team. “Without the allowance, I cannot afford to live in Malé … and [would] have to return back to my island.” Women in Maldives face considerable barriers to working, including social pressures and difficulties finding suitable accommodation away from family. Such a setback could plausibly prevent women like Zahida from returning to their jobs after the crisis has passed. The temporary cash transfer protected workers against longer-term impacts to their employment, earnings capacity and the labor market as a whole. International evidence shows that unemployment spells have a significant negative 6Gassmann, Franziska; Gentilini, Ugo; Morais, Julieta; Nunnenmacher, Conrad; Okamura, Yuko; Bordon, Guilio; Valleriani, Giorgia. 2023. Is the Magic Happening?: A Systematic Literature Review of the Economic Multiplier of Cash Transfers. Policy Research Working Papers; 10529. © World Bank, Washington, DC. 7 Kuss, M. K., Gassmann, F., & Mugumya, F. (2021). How Inclusive are the Local Economic Impacts of Social Protection in Uganda? European Journal of Development Research, 1-23. 8 Peterman, A. R. (2022). Cash transfers and intimate partner violence: A research view on design and implementation for risk mitigation and prevention. Intl Food Policy Res Inst. 9 Maldives Ministry of Economic Development and Trade, 2021. The Impact of COVID-19 Pandemic on Employment in the Maldives 10 Baird, S., McKenzie, D. & Özler, B. The effects of cash transfers on adult labor market outcomes. IZA J Develop Migration 8, 22 (2018). 11 Weber, A. 2015. “Do Unemployment Benefits Help People Find Better Jobs?” World Economic Forum. Page 31 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) impact on wages upon reemployment as well as lifelong earnings. Furthermore, it also reduces the cost employers of finding new employees once the crisis had passed and the indirect social costs of the dislocation of 10 percent of the workforce (most of whom are younger Maldivians). 2. Training, Apprenticeships, and Self-Employed Grants As part of these subcomponents, 1190 received upskilling opportunities and over 2,000 self-employment training and support. This included apprenticeship (97), 844 self-employed workers received financial assistance, (out of which 60 percent were female), and more than 2,000 self-employed workers completed the entrepreneurship training (a total of 2284 ALMP beneficiaries). For skills development stipends up to 5,000 and for the participants enrolled in the training were provided a corridor to avail the funding up to MVR 60,000, after undertaking the training session for business grants. Studies indicate that ALMPs are helpful at lowering unemployment. Moreover, ALMPs typically appear to have the most positive effects for women12. According to a tracer survey conducted of training beneficiaries, 75 percent of the surveyed training beneficiaries reported that the training helped them in getting a better job or finding better job opportunities. Out of 31 respondents, 13 reported that training helped in salary increments and 5 in getting a promotion. Other factors reported are matching the training skills with the transferable skills, getting a certification and knowledge gained through the training which helped them with getting a job. 3. Systems strengthening activities The Project also enhanced the capacity of the Maldives’ social protection delivery system. The ISA also resulted in the further development and population of the Social Protection Information System (SPIS). The Project financed the complete overhauling of the SPIS to a full stack development, by incorporating Geographic Information System (GSI) capabilities, identity verification tools, payment processing, case management and monitoring tools to ensure ISA payments were processed through the system and data are stored for future support and smoothly operation of National Social Protection (NSPA) programs. The Job Center Portal which was originally developed to facilitate the ISA, was then also used by both beneficiaries and non-beneficiaries to apply for employment opportunities. Furthermore, this platform provided critical information to economic actors on employment and earnings prospects for different occupations, thus enhancing the overall efficiency of the labor market. Activities conducted under Component 2, helped fill policy gaps, contribute to potential future reforms to the Maldives social protection system more fiscally sustainable and adaptive to shocks in the long term. The design options for an Unemployment Insurance (UI) program for the Maldives produced under the project provided the foundation for the UI legislation and scheme subsequently drafted under the Sustainable and Integrated Labor Services (SAILS) project. The potential economic impact of setting up a UI program for the Maldives has been simulated to be highly positive13. The National Social Protection Framework delivered under Component 2 can have significant positive implications for strengthening social protection institutional partnerships in the Maldives. The framework that provides the longer-term vision for social protection in Maldives was designed through a consultancy service and officially adopted 12 Irandoust, Manuchehr; 2023. Active labor market as an instrument to reduce unemployment 13 SAILS Project Appraisal Document, 2022. World Bank. Page 32 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) by the government in May 2023. The framework provides a mapping of institutions involved in social protection and could serve as a foundation for strengthening and streamlining partnerships between various agencies involved in shock response. Strengthened partnerships between NSPA and the other government agencies, including island councils also is expected to increase coordination and create a better understanding of local needs, thereby allowing for more efficient delivery. This will not only make it possible for the government to respond rapidly after a shock hit but will also enable policymakers to focus on building resilience among vulnerable populations even prior to the onset of shocks14. The project also aided the kickoff of the work on an important reform area- pensions. There is a dire need for assessing the fiscal sustainability and poverty impact of the Maldives pensions systems . As part of component two an assessment was conducted on the Maldives’s Pensions system, which can be used by policy makers to aid future reforms. While the assessment was only a mapping of the pensions system in the country and a preliminary analysis of its sustainability, this could lay the foundation for future discussions and studies on potential sector reforms. Overall, the Project was able to successfully overachieve almost all its targets, and deliver rapid relief during a crisis, as well as invest in preparing the labor market for the transition out of the pandemic. 14 Responsive by Design: Building Adaptive Social Protection Systems in South Asia (English). Washington, D.C. : World Bank Group. Page 33 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS Verbatim: Borrower’s Project Completion Report REPUBLIC OF MALDIVES THE COVID-19 ECONOMIC RELIEF PROGRAM MALDIVES COVID-19 EMERGENCY INCOME SUPPORT PROJECT 31st January 2024 Page 34 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Executive Summary The Maldives Covid 19 Emergency Income Support Parent project (CEISP) was approved on 13 May 2020 and concluded on 31st December 2023. The primary objective of the CEISP was to aid workers affected by the pandemic and to strengthen social protection delivery systems of the Maldives. Under the first component of the project, (a) financing the COVID-19 Support Allowance, was implemented by MoEDT in partnership with National Social Protection Agency (NSPA). The allowance was given to salaried employees and self- employed people whose income was affected because of job or work loss, forced unpaid leave or salary reduction. A total of 27,151 applied for the scheme, 22,940 individuals received the allowance. Among the people who received the allowance, 11,976 applicants were employed people and 10,964 were self-employed people. 39% (8,842 individuals) of the people who received the allowance was female and 61% (14,098) was men. Under the second component of the project the existing Social Protection Information System (SPIS) overhauled to a full stack development; developed modalities of Unemployment Insurance program option deemed suitable for the Maldives; an activity carried out to formulate a strategy for maximizing retirement savings and worker coverage, and formulation of a Strategy for the elimination of “Double Pensions” including strategic direction; and a framework that provides the longer-term vision for social protection in Maldives was designed. On May 25 and June 6, 2021, the government submitted requests to the World Bank to restructure the Project to allow these funds to be used for more targeted support to the long-term unemployed, aimed at reskilling and re- employment. Under this aim, the project is restructured to provide training and upskilling in priority trade areas and an entrepreneurship support program. With the high volume of demand for the training, the project was further extended till the end of December 2024. By the end of the project, 26,448 individuals benefited from various components of the project. Over 22,940 individuals received income support allowance, 1190 received upskilling opportunities, 844 self-employed workers received financial assistance, out of which 60 percent were female and more than 2,000 self-employed workers completed the entrepreneurship training. The project exceeds its original Project Development Objectives (PDO) targets as well as the revised targets. Page 35 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Introduction The Maldives COVID-19 Emergency Income Support Project (CEISP), implemented by the Ministry of Economic Development and Trade (MEDT) with assistance from the World Bank to strengthen social protection delivery systems and institutions by making the safety net more responsive to future economic and disasters. The project was launched in May 2020 and concluded in December 2023. Under the first component of the project, (a) financing the COVID-19 Support Allowance, was implemented by the MoEDT in partnership with National Social Protection Agency (NSPA). The allowance was given to salaried employees and self-employed people whose income was affected as a result of job or work loss, forced unpaid leave or salary reduction. All Maldivians who were employed since December 2019 and whose income fell below MVR5,000 were eligible for the program. An allowance of MVR5,000 was provided for those who were facing complete loss of income, while a difference of up to the maximum amount was paid to those who were earning less than MVR5,000. During the program, 22,940 affected individuals received support between April and December 2020, of which 8,842 were women. The program was concluded in December 2020 and the project was restructured to allow the remaining funds of the project be used for more targeted support to the long-term unemployed. Under the second component of the project the existing Social Protection Information System (SPIS) overhauled to a full stack development; developed modalities of Unemployment Insurance program option deemed suitable for the Maldives; an activity carried out to formulate a strategy for maximizing retirement savings and worker coverage, and formulation of a Strategy for the elimination of “Double Pensions” including strategic direction; and a framework that provides the longer-term vision for social protection in Maldives was designed. Component 3: Contingent emergency response component to provide immediate and effective response to this crisis or emergency. The Project Management Unit (PMU) proactively complied with all covenants, safeguard, monitoring and evaluation and reporting requirements. Moreover, the project exceeds its original PDO targets as well as the revised targets. In recognition to the tremendous success of the project, World Bank rated the overall progress of the activities as “highly Satisfactory”. The project was scaled up through Additional Financing (AF) due to strong demonstration of need for continued support for the workers, and the tremendous performance of the program. The scale-up of ISA was approved with additional indicators added to the results framework. The AF allocated to the program exceeded the amount utilised by, leaving the resources available for additional project activities. The World Bank approved the request of the government to restructure the Project to allow the funds to be used for more target support to the long-term unemployment, aimed at reskilling and re-employment. In addition, the objective of the restructuring was to support self-employed workers to enhance their skills and find more productive employment in the post-COVID economy. The restructured component includes funding for data collection and an impact evaluation of the productive inclusion interventions, by proposing a design of the Unemployment Insurance program. By the end of the project’s period, 31 December 2023, the PMU successfully achieved the PDO targets. See ANNEX 1: Results Framework for further details. This report provides detailed information on achievement of project objectives; program details with challenges and action taken to address; financial details by allocations; and lessons learned. Page 36 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Goals and objectives of the project The primary objective of the CEISP was to protect workers against losses to human capital and provide mitigation support in times of economic crisis. As part of the objectives of the project, ensuring female self-employed workers to ensure they remains in the workforce was an added objective as part of project restructuring. Program Activities The activities under the parent project includes. Component 1: COVID-19 Income Support Allowance The ISA program provided temporary income support to individuals who have lost a job since the onset of the COVID- 19 pandemic or suffered a loss of income because of the pandemic. This included data collection and storage in NSPA’s Social Protection Information System (SPIS) to facilitate follow-up and future support. The support will top up any existing income to a maximum of MVR 5,000 per month. This assistance was offered to anyone applying through the Job Center (online or in person at local island council offices) and demonstrating that they have either lost a job since the onset of the crisis or are suffering a total loss of income because of the crisis. Documentation to substantiate eligibility would be required as part of the application. Anyone requiring assistance in preparing the application or receiving funds will be provided support by the NSPA through their partners in the local island councils. Applications was reviewed individually by the MoEDT team and assessed against a set of transparent criteria, and the final list of beneficiaries will be sent to the NSPA for payment Component 2. Increase the capacity of social protection programs to respond to future emergencies. Improvements to the Social Protection Information System (SPIS) of the National social Protection Agency (NSPA) and to enhance connectivity with other government databases. Design of a new contributory unemployment insurance scheme to serve as a fiscally sustainable source of temporary income support for workers who lose their jobs or incomes in the future. Reform to the Maldivian Retirement Pension Scheme and social and government pensions to ensure adequate income protection for the elderly and address design issues that create a fiscal burden and distort labor markets. Development of National Social Protection Framework, to ensure broad-based and adaptive social protection coverage of Maldivians across their life cycle and improve coordination and data sharing between programs. As part of the structuring, Component 1 of the parent project was modified as; COVID-19 Income Support Allowance. The ISA program to provide temporary income support to individuals who have lost a job since the onset of the COVID-19 pandemic or suffered a loss of income as a result of the pandemic. This includes data collection and storage in NSPA’s Social Protection Information System (SPIS) to facilitate follow-up and future support. Upskilling of jobseekers in priority trades. Certificate-level training courses to unemployed Maldivians through accredited Maldivian training institutes. The courses were accounting, information technology and tourism. Page 37 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Apprenticeship program. Financing apprenticeships for unemployed Maldivians in Maldivian firms and SOEs in priority sectors as an avenue to get on-the-job training at the firm. Entrepreneurship program. A subcomponent to finance business skills training and capital improvement grants to informal self-employed workers impacted by the COVID-19 pandemic. Attendance to this skill training program is a prerequisite for the self-employment grant program. Component 2 and 3 of the project remined unchanged. Improvements to the Social Protection Information System (SPIS) Through a consultancy, the existing SPIS overhauled to a full stack development, by incorporating Geographic Information System (GSI) capabilities, identity verification tools, payment processing, case management and monitoring tools to ensure ISA payment are processed through the system and data are stored for future support and smoothly operation of NSPA programs. This activity was successfully completed within the timeline. Developing a Fiscally Sustainable Unemployment Insurance Program An international consultant contracted to design a UI program option deemed suitable for the Maldives, proposed a model that will provide fiscally sustainable job search assistance, job placement services, soft skills development and improving employability acquiring hard skills and income support for a fixed period to the unemployed. The proposed model under this consultancy was to introduce a self-financing scheme, based on contributions from employers and workers. This deliverable under the activity was successfully delivered within schedule, followed by formulating sustainable and integrated labor market services (SAILS) project to implement the proposed model. Reform to the Maldivian Retirement Pension Scheme An activity carried out through a consultancy service to monitoring and supervision of contribution remittance, treatment of Non-salary allowances in defining pensionable wages, evaluation of the Old Age Basic Pension and formulation of a reform strategy, formulation of a strategy for maximizing retirement savings and worker coverage, formulation of a Strategy for the elimination of “Double Pensions” including strategic direction and opt ion were proposed and deliverable completed on time. Development of National Social Protection Framework A framework that provides the longer-term vision for social protection in Maldives was designed through a consultancy service. The purpose of the developing a new framework was to define the scope, the system that will be put in place, delivery services, institutional and governance arrangement and a roadmap for how to take forward the new framework. The assignment was successfully completed and delivered on time. The National Social Protection Framework was officially launched on 3rd May 2023. Upskilling of jobseekers in priority trades A certificate-level training opportunity designed to facilitate training and upskilling opportunities for job seekers in priority trade areas to create a pathway to enhance employability skills of the individuals whose employment were affected due to the COVID-19 pandemic. Applications for the program were accepted in two phases. The courses were offered through accredited Maldivian training institutes. The training providers interested in offering upskilling programs were empaneled with MoED. The training programs as well as the training providers requirements were Page 38 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) gazetted and advertised on the Job Center portal for interested training providers (TP) to submit proposals. The applications were thoroughly checked and evaluated by a committee established at MoED. Upon successful verification, the providers along with the programs were listed on JC where the public can access the applications. The criterion that applied individuals are required to be either unemployed or if employed, should demonstrate that they are currently working less than 20 hours a week at the time of application, a Maldivian between 16-65 years, and not be receiving any financial support or scholarship at the time of application. PMU was responsible for carrying out Initial Checks on applications submitted to JC and guide enrolled students for the duration of the course. PMU and TP communicates throughout the course duration collecting course fee invoices and facilitating communication between applicants and TPs. Once courses have been completed, PMU obtain supporting verification documents from students who have completed the course and update the application status on JC accordingly.. The cost of the training was paid directly to the TP by the Project. A stipend of MVR 5,000 per month was given to the trainees for the duration of their course, conditional on maintaining at least 75% - 80% attendance and performance requirements. Apprenticeship program The program’s goal was to facilitate apprenticeships to currently unemployed Maldivians and to provide them work - based trainings that will enable them to gain job-specific skills. An important aim of the program is to ensure the trainings are geared towards certificate level training (apprenticeship programes approved by Maldives National Skill Development Authority - MNSDA). The prospective agencies for apprenticeship are registered and licensed bodies, with previous experience in conducting such programs. Over 55 apprenticeship program opportunities under Construction, Transportation & Social related areas were offered for applicants. Refer to ANNEX 2: Apprenticeship Programmes Offered for program details. The six SOEs partnered in providing apprenticeship opportunity are; FENAKA Corporation Limited Public Service Media (PSM) Maldives Transport and Contracting Company (MTCC) Plc Waste management Corporation Limited (WAMCO) Housing Development Corporation (HDC) Road Development Corporation Limited (RDC) The program sponsored the apprentices for up to 6 months (depending on employers' requirement); providing them with a monthly stipend, conditional on satisfactory attendance and performance at work. The apprenticeship opportunities had been offered not only in the Greater Male’ region, but across the country at regional sites as well. Entrepreneurship program A program to support financial skill training and capital improvement grant to informal workers; (including freelance and home-based workers) whose livelihood were affected due to COVID-19 pandemic. The participants were required to attend a business skill training, that provides business planning and proposal writing skills, financial literacy, Page 39 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) marketing, and coaching. Under this training program, hard-to reach women self-employers were identified through business center corperation (BCC) and Island councils. The participants enrolled in the training were provided a corridor to avail the funding up to MVR 60,000, after undertaking the training session. The eligibility criteria for the funding includes, completing the training, must not be employed for more than 20 hours per week, be self-employed for at-least 6 months for the set timeframe and be a Maldivian between 18 to 65 years old. Key selected areas of entrepreneurship are; Handicraft Beauty and Makeup Photography & Videography Tailoring and Garment Production Information & Communication Technology Creative Arts and Music Sports and Fitness Reef Fisheries (owners of vessels below 30ft only) Electrical wiring and maintenance Welding and carpentry work Financial Management The Financial Management (FM) capacity at the initial stage of implementation was weak. However, PMU addressed these issues with the Bank Support and strengthened FM capacity to ensure the quality and timelines of the financial reporting. Table below shows the Initial and Final allocations by components. Category Category Description Allocated Disbursed Undisbursed No. 1 COVID-19 Support Allowances under Part 1(a) 13,865,793.57 13,865,684.14 2 Emerg exp CERC. 0.00 0.00 3(I) Stipends (including transport allowances) under 1,091,994.00 909,019.49 Part 1(b) 3(II) Apprenticeship allowances (including transport 193,096.50 38,760.07 allowances) under Part 1(c) 3(III) Business development grants under Part 1(d) 2,989,666.50 1,960,643.40 4 Goods, non-consulting services, and consulting 2,101,289.43 1,832,766.00 services, Training and Workshops 20,241,840.00 20,230,204.92 Table 1: Financial allocations by components Page 40 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Procurement plan The project follows the World Bank’s Procurement Regulations for IPF Borrowers and uses the Systematic Tracking and Exchanges in Procurement (STEP) system to conduct all procurement transactions. The project has procured goods, works, non-consulting services and consulting services for various activities, such as developing online platforms, conducting surveys and audits, and providing technical assistance and training. The following table summarizes the completed procurement activities for the project from 2019 to 2023: Procurement Description Procurement Method Contract Contract Value (USD) Status Acquisition of 30 Office Chairs and 30 Office Tables for Request for 5,800.52 Completed the COVID-19 Income Support Project Quotations (RFQ) Acquisition of 30 Laptops for COVID-19 Income Support Request for 31,882.28 Completed Project Quotations (RFQ) Internal Auditor Consultant Direct 13,877.65 Completed Selection (CDS) Contract for Services of Individual Consultancy Services Individual Consultant 150,000 Completed for Development of Unemployment Insurance Benefit Selection (ICS) under COVID-19 Emergency Income Support Project Services of Individual Consultancy to Facilitate Individual Consultant 96,120.00 Completed Development of a National Social Protection Framework Selection (ICS) under COVID-19 Emergency Income Support Project Services of Individual IT Developer for the National Social Individual Consultant 150,000 Completed Protection Agency (NSPA) under the COVID-19 Selection (ICS) Emergency Income Support Project Individual Consultancy Service to review Government Individual Consultant 12,160.41 Completed Pension Selection (ICS) Table 2: Completed Procurement Activities The project has used different procurement methods, depending on the nature, complexity, and value of the contracts. The project has used RFP for large and complex contracts, RFQ for small and simple contracts, CQS for consulting services that require specific qualifications, CDS for consulting services that are of a unique nature, and ICS for individual consultants that have the required expertise and experience. The project has followed the World Bank’s procurement guidelines and procedures and ensured the principles of economy, efficiency, transparency, and fairness in the procurement process. The project has also maintained proper documentation and records of the procurement activities and reported the procurement progress and results to the World Bank regularly. The Maldives COVID-19 Emergency Income Support Project has conducted the procurement activities in a satisfactory manner and has achieved the procurement objectives and outcomes. The project has also faced some challenges and delays in the procurement process, due to the COVID-19 pandemic and its impacts on the market conditions, the availability of suppliers and consultants, and the delivery of goods and services. The project has taken appropriate measures to address these issues and to ensure the quality and timeliness of the procurement activities. Page 41 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Communication and stakeholder engagement At the start of the project stakeholder engagement plan was developed to ensure strategic engagement for the project. The plan provided a high-level framework for interactions and consultations with external and internal stakeholders, in order to coordinate their engagement and to establish close relationship with stakeholders and beneficiaries. The project utilized various approaches and communication vehicles to disseminate relevant information about project activities. Primarily, personal interactions, online and digital media and broadcast media were the channels utilized. Apprenticeship and Upskilling program updates were communicated to the communities, beneficiaries, and stakeholders by the PMU and MED media team. National Job Centre (NJC) and Business Center Corporation (BCC) were the major vehicles that played the key role in disseminating training relevant information and self-employment grant program to the communities, and general public. BCC reached out to the Self-employed worker without internet access and with lack of digital literacy skills to support in application process. Programs were promoted through different social media platform to help raise awareness of the target group. In-person information sessions were held across Maldives with assistance from island councils, and WDCs. Furthermore, online sessions were conducted to target groups to educate and raise awareness of the program. Program information was disseminated through broadcast media as well. Important information related to the project was made available on National Job Center website and MED website. Refer ANNEX 3: Stakeholder Engagement Activities for details. Safeguards The GRM mechanism established for beneficiaries, stakeholders, and those who are directly and adversely affected by the project are allowed to submit grievances through the following channels. Via Job Centre Portal Via email: support@jobcenter.mv, contact@jobcenter.mv Via letters address to Project Director Via hotline: 1516 Via direct messages through social media platforms (Facebook/Twitter/Instagram) The automated GRM system enables a ticket to be raised in relation to GRM submitted through hotline and portal. Grievances submitted through letters, in-person and social media gets recorded into the system. All the grievances received were reviewed, sorted, categorized and assigned to a coordinator within 24hrs. The coordinators assess and investigate the grievance and gather facts to generate a clear understanding of the circumstances and logs all communications into the GRM system. Grievances of complex nature were referred to the GRM Committee for further consideration and feedback. The result of the investigation with proposed response were referred to the project director for consideration. After a decision has been made on the course of action the decision gets communicated to the grievant. Once the grievance has been addressed the coordinator closes the ticket. See ANNEX 4: GRM Summary for details of the commonly received grievances. Page 42 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Monitoring and Evaluation During the reporting period the PMU focused its effort on ensuring that contractual deliverables were in line with the project plan. Additionally, the team diligently monitored and documented the project activities outlining the milestones, and outcomes associated with different project activities. Important records of CEIPS’s progress that may inform reporting indicators were periodically submitted to the World Bank. (See ANNEX 1: Results Framework.) Training beneficiary survey have been conducted to gauge level satisfaction and areas of improvement. Majority of the participants responded they were satisfied with the training program, GRM and financial support. A tracer survey to identify valuable insights on the implication of post-training employment, skills enhancement to job-matching shows that 66% are in employment, out of which 331 are male and 98 are female. A phone survey to track individuals who have received the Self-employment support grant was conducted. The purpose of the survey was to determine the tools and mechanism to support the self-employed workers. The section 8 describes the achievement summary of program activities. Achievements Upskilling and Training Program For the Upskilling and training program a total of 3,830 applications received from phase I and II, 69% male and 31% female. The applicants who did not reached the final stage of evaluation were due to failure in meeting the criterion and did not submit the required information. The rejection rate of the program was 19%, of which 91% were rejected due to not meeting the due to failed to meet the criterion and 9% were rejected by the provider as the applicant did not meeting the training program requirements. 1057 applicants successfully met all the criterion of the program and enrolled in the program. Women comprised 23 percent of the enrolled pool, while men were 77 percent. 86 percent of the enrolled beneficiaries successfully completed the training program and earned industry accepted certifications. Of these, 30 percent are from Greater Male’ area, because majority of the programs offered were being conducted in this region. 14% of those who did not obtain industry accepted certificate within the duration of the program reported that employment opportunities, ill health, and relocation were reasons why they withdrew from the program. Upskilling and Training Program 1200 1057 Number of application 1000 904 800 600 400 153 200 0 Enrolled Completed Dropped Application Status Figure 1: No of Application - Upskilling and Training Program Page 43 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Amongst the 4 training areas, the highest number of beneficiaries who completed the program were Diving, followed by Accounting, ICT and Tourism. Program Completioin by Area 800 Number of Application 581 600 400 154 166 200 3 0 Diving ICT Accounting Tourism Program Area Figure 2 Completion status by program area Apprenticeship The apprenticeship program under the CEISP was conducted in two phases. A total of 547 applications received, and 133 applicants were accepted into the program and started the apprenticeship. The program had a 14% rejection and a 26% dropout rate. Similar to the training program the main reason for rejection was failure in meeting the eligibility criterion. At the end of the program 97 applicants successfully completed the program, of which 25% were female. Of the total enrolled in the program, 45% were from greater Male’ Area. For the combined Upskilling and Apprenticeship program a combined total of 4,377 (71% male: 29% female) applications received. The rejection rate was 19% and the most common reason for rejection was, the applicants were either employed or worked more than 20 hours per week. Out of the total 1190 beneficiaries, who successfully completed the training and apprenticeship programs, the data shows that a greater percentage of male (77%) than female (23%) engagement in these programs. Self-employed Support Program A total of 2,824 applications received for the program, of those 61% are female. 844 self-employed workers received the funding of which 34% are men and 66% women. The geographical dispersion shows that majority of the applicants who received funding were from Greater male area with 26%, followed by Fuvahmulah and Gaafu Alif with 13 and 10% respectively. Out of the 12 application categories, the highest number of beneficiaries were from the Tailoring and Textile category at 31%. Of the total self-employed workers that benefited from programs, were 23 percent were of the beneficiaries were under 35 years of age. The underlying motivation for young women chooses to become self- employed were that they prefer to be independent and in control of their own time as per the surveys conducted through the program. Looking at the gender comparison of the self-employed grant program, a great percentage of female received financial assistance than male. The interaction had with the self-employed workers female beneficiaries mentioned that they prefer self-employment because of the flexibility it provides for household and childcare responsibilities. This could be the main reason for the gender gap in self-employment and skill enhancement programs, lack of time to pursue Page 44 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) training due to being self-employed. By gaining insights into the reasons why enrollment rates of female are less in skill enhancement programs, institutions that design the programs can begin to develop strategies to increase female participation rate. Beneficiaries by application category Reef Fisheries Electrical Wiring and Maintenance Welding and Carpentry Works Application Category Education (Quran and Tuition Centers) IT Services Beauty and Cosmetics Handicraft M Tailoring and Textile processing F Photography and Videography Sports and Fitness Creative Arts and Music Food Manufacturing 0 50 100 150 200 250 300 No of Application Figure 3: Beneficiaries by application category Challenges and Action Taken Training and Upskilling Program Acclimating applicants to the user interface took more time than expected, would account for this in the future as older demographics had markedly more difficulty in navigating the portal. The team assisted these applicants via both call and email to successfully submit their applications. Partner organizations noted that some candidates were unable to apply by the deadline because of difficulties acquiring the required documentation requested by the Ministry. After discussion with the partner organizations, leniency in requirements was granted based on the request of the training providers. Frequent delays in the application process were caused by difficulties in contacting applicants (disconnected contact number, unresponsive, missing contact information) The limited time frame was also a deterrent to conducting physical outreach programs outside of the Greater Male area, which the team noted to be the most effective way to disseminate information. The number and types of courses that could be offered under this program were limited due to the project duration. In addition to the course duration, payment processing, registration, and other administrative tasks required by training providers excluded several potential courses. Page 45 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) Administrative and supporting tasks had to be completed within a shorter period than anticipated, as the majority of courses exceeded the initial course duration set due to various reasons such as registration delays or weather. Some students stopped attending classes without any reason provided to the training provider or the Ministry, which caused some administrative difficulty. A drop-out review committee was created to review these cases and that of any other dropouts regularly. Diving training providers highlighted the issue that to qualify for the Instructor Development Course, applicants must first have completed the Dive Master Course; however, most people planning to pursue a career in the field who have already obtained a Dive Master qualification are already employed, automatically making them ineligible for the program. Almost all training providers offering the Instructor Development Course expressed that they felt the most deserving candidates were excluded due to this criterion. Manual processing of attendance verification on the first phase of the training program was extremely time consuming. To resolve this issue additional modules were added to the portal and system enhancement and further developments are planned under SAILS project. Self Employed Grant Program It was noted that there was a lack of documentation amongst self-employed applicants. While some applicants did not practice bookkeeping due to lack of knowledge, many applicants did not feel a need to maintain accounts due to the small community, and that orders were paid for in cash. The team carried out physical inspections for these applicants to verify their scale and work, and a virtual training course was carried out for all applicants covering the basics of bookkeeping and its importance. Physical inspections outside of the greater Male area were limited due to the geographical dispersion of the applicants. Teams were sent to islands or atolls with a high number of applicants, and aid was requested from regional BCC's. Virtual inspections via teams were introduced to counter this issue. Limited vendors and/or stock availability on islands caused delays in both submitting applications and the post verification process. In cases where local shops were out of stock, or the items were unavailable, applicants needed to get quotations from vendors based in Malé. Multiple applicants highlighted that this was difficult as very few vendors have an adequate online presence; rather, they relied on family and friends in the capital to obtain quotations for them. Subsequently, any changes that had to be brought to the quotations proved difficult, and delays in the post verification process occurred due to the time taken to ship the items to the applicant (usually by boat.) Frequent delays in the application process were caused by difficulties in contacting applicants (disconnected contact number, unresponsive, missing contact information) Lessons learned. An initial orientation for program eligibility and the application process for potential students will improve familiarity to the Job Center portal and ease users during the application process. Need for additional travel regionally- outside Greater Male’ Area to conduct outreach programs. Need for improved marketing- longer duration to create traffic and exposure for social media post interactions Page 46 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) The World Bank eligibility criteria limits the number of enrollment. The criterion that applied individuals are required to be either unemployed or if employed, should demonstrate that they are currently working less than 20 hours a week at the time of application. A frequent concern raised by unsuccessful applicants was that they were extremely eager to pursue careers in the fields offered under the program but had been employed in areas they were uninterested in due to the lack of necessary training. The team noted that many of these applicants mentioned they had to seek employment regardless of field due to sheer necessity. Page 47 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 1: Results Framework Project Development Objective The Project Development Objective (PDO) is to mitigate the economic impact of the COVID-19 crisis on workers and their families, and to increase the capacity of social protection programs to respond to future emergencies. These results are at Project Level Project Development Objective Indicators Intermediate Target Indicator Name Baseline End target target achieved 15,000 Beneficiaries of social safety net programs (Number) 0 24,000 (revised) 27,104 (achieved) Of which female 0 4,500 9,400 (revised) 10,742 Beneficiaries of social safety net programs – self-employed female 0 1,100 6,500 (revised) 8064 (Number) Cash transfers paid to eligible beneficiaries during pandemic 95,000 (revised) 97,334 (person months) Of which female 33,000 (revised) 35,180 Island councils with access to NSPA SPIS to view and update - - 50% 85% records (Percentage) National Social Protection Framework formally approved by No - Yes Yes competent authority (Yes/No) Intermediate Results Indicators Target Intermediate Target Indicator Name Baseline End target target achieved Component 1 Time to receive first payment after application (Weeks) - 4 4 4 Grievances addressed within 2 weeks (Percentage) - 80 80 100 Beneficiary records stored and accessible in SPIS (Percentage) - 90 90 100 Beneficiary satisfaction with COVID-19 Support Allowance - 75 75 92 enrollment and payment processes (Percentage) NEW: Number of beneficiaries enrolled in apprenticeships 150 153 (Number) NEW: Number of beneficiaries trained (Number) 2000 3508 Component 2 National Social Protection Framework drafted and presented to No No Yes Yes competent authority (Yes/No) Unemployment insurance program designed and presented to No Yes Yes Yes competent authority (Yes/No) Program for reforms to pension programs drafted and presented to No Yes Yes Yes competent authority (Yes/No) Improvements to SPIS completed and tested (Yes/No) No No Yes Yes Page 48 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 2: Apprenticeship Programmes Offered SOE Area of Apprenticeship MNFQA Level/ Qualification Title Welder Trainee National Certificate III in Welding Techniques Storekeeper Trainee National Certificate III in Inventory Management Heavy Vehicle Operator Trainee National Certificate III in Heavy vehicle operations WAMCO Marine Mechanic Trainee National Certificate III in Marine Mechanic Automotive Maintenance (Light National Certificate III in Automotive Maintenance Vehicle) Trainee Electrical Installation / C3 in Electrical Installation and Maintenance Fenaka Maintenance Operator (Sewerage) C3 in Sewerage Operations and Maintenance Gardner National Certificate 3 in Gardening Mason National Certificate 3 in Mason Welder National Certificate 3 in Welding Construction site supervisor National Certificate 3 in Assistant Site supervisor for Building Construction Electrician National Certificate 3 in Electrical Installation and Maintenance Heavy vehicle operator National Certificate 3 in Heavy vehicle operators Plumbing National Certificate 3 in Plumbing HDC Building maintenance National Certificate 3 in Building Maintenance Carpenter National Certificate 3 in Carpentry Refrigeration & air conditioning National Certificate 3 in Refrigeration and Air Conditioning Mechanic Computer Hardware National Certificate III in Computer Hardware and Networking Health & Safety National Certificate III in Health and Safety in Construction Painting & Decoration National Certificate III in Painting and Decorations Housekeeping National Certificate III in Housekeeping Front Office Service National Certificate III in Front Office Services Crane Operator National Certificate III in Heavy Vehicle Operations + Crane License Excavator Operator National Certificate III in Heavy Vehicle Operations + Excavator License Loader Operator National Certificate III in Heavy Vehicle Operations + Loader License Dump Truck Operator National Certificate III in Heavy Vehicle Operations + C0 License Carpenter National Certificate 3 in Furniture Carpentry Tiles Mason National Certificate III in Masonary Works Welder National Certificate III in Welding Techniques MTCC Marine Mechanic National Certificate III in Marine Mechanic Automobile Mechanic National Certificate III in Automative Maintenance Tug Mechanic National Certificate III in Marine Mechanic Electrician National Certificate 3 in Electrical Installation and maintenance Surveyor National Certificate 3 in Land Surveying Site Supervisor National Certificate 3 in Construction Site Supervision Bus Driver National Certificate III in Bus Operations + B0 License Page 49 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 3: Stakeholder Engagement Activities Summary Total Media appearances promoting WISE and Training programs 7 Press release _ promoting grant + Training opportunities 12 Stakeholder engagement session/meeting 57 Established partnership (Training providers and Apprenticeship Providers) 34 ANNEX 4: GRM Summary GRM Summary - Oct 2022 to Dec 2023 General inquiries Application Decision (Expired/Rejected) 474 Course Withdrawal Inquiry 1 Program/ Course General Inquiry 2732 - To clarify on the upcoming training programs - To clarify on the self employment support program - How to register in the job portal - How to apply for income support program - Categories open for self employment support program - To get updates on the mails sent to support@jobcenter.mv 3207 Payment related Payment Disbursement Inquiry 417 Stipend delay 15 Stipend Inquiry 127 559 JC application issue Application form inquiry 925 Application Process Difficulties 24 application submission issue 58 Document uploading issue 60 Issues Receiving Documents (offer letter, notes, timetable) 1 JC Page Redirected (Error page) 2 1070 Page 50 of 51 The World Bank COVID-19 Emergency Income Support Project (P174014) ANNEX 6. SUPPORTING DOCUMENTS (IF ANY) Page 51 of 51