Kyrgyz Republic: Third Village Investment Project COVID-19 Response Additional Financing and National Community Initiatives Project Implementation Support Mission September 17-October 1, 2024 Aide Memoire INTRODUCTION 1. A World Bank (WB) team conducted an implementation support mission for the Third Village Investment Project (VIP-3) COVID-19 Response Additional Financing (AF) and the National Community Initiatives Project during September 17-30, 2024.1 The main mission objectives for the VIP3 AF mission were to: (i) review project implementation status, procurement, financial management, disbursements, monitoring and evaluation activities and environmental and social safeguards; (ii) assess progress of implementation of socioeconomic infrastructure subprojects; (iii) assess progress of endline survey and project completion activities; and (iv) conduct community climate forum. The main mission objectives for the NCIP mission were to assess progress on: (i) project signing and effectiveness; (ii) project preparatory activities, including finalization of Project Operations Manual, development of training curricula, climate activities, and recruitment of staff. 2. The WB team is grateful to the Ministry of Finance (MoF), the Ministry of Economy and Commerce (MoEC) and the Community Development and Investment Agency (ARIS) for the cooperation during the mission.2 This Aide Memoire (AM) was discussed with Mr. Mirbek Dosuev, VIP-3 Project Coordinator, and Mr. Mayrambek Bayaliev, CASA-1000 CSP Coordinator, ARIS at the wrap-up meeting on September 30, 2024. The WB management endorsed the final version of this AM. PROJECT DATA AND RATINGS Table 1. Key Project Data Original Total Disbursem project disburse ent in Previous Current Source of Effective Closing Approval amount ment to FY24 to PDO/IP PDO/IP financing ness date (US$ date* date* rating rating millions) (US$ m) (US$m) VIP-3 AF IDA D727 September October November 8.50 7.07 0.6 MS/MS** S/S** IDA 6782 28, 2020 14, 2021 30, 2024 8.50 5.8 2.7 Total 17.00 12.87 3.3 *Based on client connection data accessed on September 30, 2024. **S = Satisfactory; MS = Moderately Satisfactory; PDO = Progress towards achievement of Project Development Objective; IP =Overall Implementation Progress KEY FINDINGS VIP-3 AF 3. Progress towards the Project Development Objective (PDO). Table 1 summarizes the project ratings. Given the progress in implementation and in achieving the PDO since the last mission, 1 The mission was led by Mr. Christopher Finch (Sr. Social Development Specialist/Task Team Leader) with participation of Ms. Damira Temirbaeva (Social Development Specialist/Co-TTL), Mr. Harjot Kaur (Senior Social Development Specialist & SSI ESF Coordinator, Central Asia), Ms. Syrga Asanalieva (Social Development Specialist, Safeguards), Ms. Inobat Allobergenova (Natural Resources Management Specialist), Mr. Fahad Alfahad (Environmental Specialist), Ms. Aliya Kim (Senior Financial Management Specialist), Mr. Tural Jamalov (Senior Financial Management Specialist), Ms. Dildekan Kulumbetova (Program Assistant), Ulugbek Begaliev (Technical Consultant). 2 Annex 1 lists of all officials met. 1 the Overall Implementation Progress (IP) and PDO ratings are upgraded to Satisfactory. IP for Component 2 is upgraded, as implementation of around 91% of social and livelihoods investments are completed and limited work remains. The project has achieved the PDO. ARIS will withdraw all IDA AF project funds and will complete all project activities before the project closing date on November 30, 2024. The project exceeded the targets for two of the three PDO indicators: (i) the percentage of sampled beneficiaries (male/female) who report that the community investments financed by the project reflect their priorities (99% against a target of 80%); and (ii) 423,076 (the number of persons) with access to project-built infrastructure and services. ARIS agreed to collect the data for the remaining PDO indicator: the percentage of sampled subprojects that result in infrastructure services of a satisfactory quality by October 31, 2024. To date, 2,243 women have been able to earn additional income as a result of project investments compared to the target 1,600 women. Over 90% of the project investments reflect women’s priorities against a target of 50%. 4. Summary. The mission noted that ARIS has accelerated implementation in recent months, and that the infrastructure and livelihood projects visited were functioning, with strong community and local government ownership, and appeared to be of high quality. ARIS has also addressed technical construction issues identified during the previous mission. The project has completed the mobilization of community members in 241 Aiyl Aimaks (AAs), resulting in the identification of 343 social and livelihood subprojects. Project activities have involved 223,543 community members, including 134,450 (60%) women. Around 3,600 community members (64% women) were trained on community mobilization, needs assessment, vulnerability mapping and online platform. At the time of the mission, out of 270 social infrastructure subprojects (SPs), 245 SPs have been completed, and 25 SPs are under implementation. Out of 73 livelihood SPs, 69 SPs have been completed, 3 SPs are underway and on track for completion, and one livelihood SP has been replaced by a social infrastructure investment. 5. Since the last mission, ARIS has delivered Livelihood Support Program (LSP) trainings in 241 AAs for 3,220 community members (89% women). Activities to enhance sustainability of each livelihood SP are underway. Climate change awareness campaigns have been delivered, targeting both Local Self-Governments (LSG) (Ayil Okmotu AO), and Community Village Investment Association (CVIA) members; in parallel, a high percentage of subprojects (>80%) incorporate climate change mitigation and adaptation measures. Given upcoming closure, discussions focused on the need for ARIS’s attention to complete all remaining SPs on time, to ensure the technical quality of infrastructure SPs, and to enhance sustainability of livelihood SPs. ARIS shared its action plan (Annex 4)to ensure that the SPs under implementation are completed by project closing date. The WB team and ARIS agreed on the additional works and equipment to be financed from project savings (>USD200,000) due to exchange rate fluctuations. 6. The mission also focused on documentation and dissemination of results from VIP3AF, including events to showcase community-level roles in climate action and in livelihoods, and completion of the endline survey and client’s project completion report. To enhance awareness of the project outcomes, ARIS organized a Community Climate Forum on October 1, 2024 that involved more than 120 participants and highlighted the role of communities and local governments in addressing climate challenges, and good practice examples supported under VIP3 AF and CSP. A follow up livelihoods forum is planned for November 14, 2024. ARIS will provide a draft of the VIP endline survey by October 25,2024 and a draft of project completion report by October 31, 2024. 7. Mission field visits. The mission visited recently completed subproject sites in Chuy and Naryn oblasts3 and held lengthy discussions with ARIS regional teams on lessons learned to inform the detailed design of NCIP. Community members and local government officials expressed satisfaction with community mobilization and prioritization processes, and strong ownership of the investments and livelihood facilities financed by the project. The mission visited a renovated secondary school canteen, two newly constructed first aid points, a renovated medical center for family group practitioners, and a renovated kindergarten provided with improved insulation and energy efficiency upgrades. The mission 3 List of all sites and SPs visited attached in Annex 2. 2 also visited a newly opened women’s workshop in Min-Bulak AA, Naryn oblast, which had been at an early stage of construction when visited during the previous mission – construction is complete, equipment has been installed, and women beginning to produce handicrafts and other products. 8. To inform the detailed design of the NCIP, the mission consulted with local self-government (LSG) officials regarding the recently enacted Administrative Territorial Reforms (ATR), which reduced the number of rural sub-districts (Aiyl Aymaks-AAs) from 452 to 235, consolidated local functions into municipal enterprises, and introduced an updated socio-economic planning process. The WB task team and ARIS representatives held a roundtable discussion with Aiyl Okmotu officials in Naryn to understand their experience with the reform and how NCIP can support them (see NCIP section below). VIP3 AF - PROGRESS BY COMPONENT 9. Component 1 (Capacity Building for Local Self-Governments (LSGs) and Communities). ARIS completed social mobilization activities in all 241 AAs (688 villages), resulting in the identification of 343 subprojects. More than 6,000 project activities were conducted, involving 223,543 community members, including 134,450 (60%) women. Around 3,600 community members (64% women) were trained on community mobilization, needs assessment, vulnerability mapping and online platform. 10. Livelihood investments: As a result of 15 value chains identified in market assessments, community members selected 73 livelihoods SPs for project financing in 61 of 241 AAs. ARIS finalized all biddings for livelihoods SPs, and informed the Bank team that 420 job places (55% women) have been created to date. One livelihoods subproject4 has been cancelled (because local government was unable to provide a facility as planned) and replaced with a social infrastructure project prioritized by community members. ARIS shared its action plan to improve the financial sustainability of each SP, and the Bank team requested specific improvements by October 31, 2024. In addition, ARIS will also (i) assess changes in beneficiary’s revenue; (ii) identify good practice examples including climate elements (e.g., agricultural livelihoods SPs with green economy products); (iv) describe how women have benefited. These will be included in the Project Completion Report (PCR) due October 31,2024. 11. Livelihoods Support Program (LSP). ARIS has completed LSP trainings for communities in all four regions since the last mission. To date, LSP trainings have been delivered in 241 AAs for 3,220 community members (86% women), mostly from vulnerable community groups. Training includes four modules for each participant: “Business Planning", "Business Development", "Business Management", and "Priority Value chain". Training videos have been developed for each module in Russian and Kyrgyz languages and disseminated through the online platform. Mentorship support will continue until November 30, 2024. ARIS agreed to analyze the results and identify lessons learned and recommendations for future livelihood investments in the project completion report. A short survey of beneficiaries showed that 89% hade developed business plans, 60% had created a ‘safety’ financial cushion, 20% had started their own business and 15% had applied for funding from other financing sources. 12. Gender activities. Since the last mission, 9 exchange visits with the participation of 232 local women leaders and entrepreneurs from 241 AAs were conducted to share good practice experience on social infrastructure and livelihood investments. Participants shared successful stories of community participation in decision making processes, in selection of climate smart investments in energy efficiency and climate adaptation technologies. Participants of exchange visits highly scored efficiency of the visits and developed future activities to be implemented at the community level. ARIS published all information, gained ideas and action plans to the online platform. As a next step, ARIS will include all outcomes to the PCR . 13. Climate Change (CC) activities. More than 120 representatives of rural communities, local government and national government gathered in Bishkek at a Community Climate Forum on October 4 ARIS-IDA-AF-VIP-3-GOODS-23-91-RT “Purchase of equipment for a refrigeration shop with blast freezing of berries and fruits �. 3 1, 2024. Co-hosted by the Government, the Community Development and Investment Agency, and the World Bank, the forum highlighted the importance of community and local government engagement on climate initiatives, and showcased examples of local climate awareness raising and investments supported under VIP3AF and the Community Support Project. This was followed by a CSO consultation on October 2, 2024, to inform WB Kyrgyz Republic Country Climate and Development Report (CCDR). Participants discussed how climate change is already impacting their communities and livelihoods – through reduced water availability as glaciers recede, changes in the productivity of crops and pastures and increasing frequency of natural disasters. They noted that climate impacts often fall harder on remote rural communities, women and the poor. They shared examples of innovative solutions to address these impacts – including climate-smart agriculture projects – as well as investments to reduce emissions. They highlighted the important role that communities, farmers, local governments, vulnerable groups and CSOs can play in the Kyrgyz Republic’s climate adaptation and mitigation objectives, as well as needs for more awareness raising, financing, and capacity building. 45 out of 800 Climate Change Ambassadors were awarded for their contributions in raising awareness of climate change challenges and solutions at the community level. 14. Social accountability activities. Social accountability activities were conducted in two stages, first to assess the results of social mobilization and then the results of subproject implementation. Both stages were conducted by community reporters, with the support of Aiyl Okmotu staff, the monitoring and evaluation group, and members of the executive committee (EC) of the CVIA. The first stage on social mobilization has been completed in all 241 AAs, where 4,563 community members participated (65.5% women). The second stage of site visits was conducted for 227 completed subprojects. The results of both stages of social accountability activities are presented in Annex 3. Social accountability activities for the remaining subprojects will be completed by November 15, 2024. 15. Component 2: Village Investments. The Implementation Progress rating upgraded to Satisfactory, as 314 social and livelihoods investments out of 343 SPs are already completed and ARIS provided action plan to finalize implementation of the remaining 28 SPs before project completion date. Based on the community mobilization process, 270 social infrastructure SPs and 73 livelihood SPs were selected for project financing. Table 2 provides a breakdown of Cycle 1, Cycle 2 and Cycle 3 SPs by sector. At the time of the mission, all biddings for social infrastructure and livelihoods investments have been finalized. Implementation of 245 social infrastructure SPs and 69 livelihoods SPs have been completed. Additional works and provision of goods and equipment were agreed and biddings processed, to utilize project savings. One livelihood subproject was changed to a social infrastructure investment. ARIS agreed: (i) to finalize all remaining biddings and amendments to the contracts by October 25, 2024; (ii) to complete implementation of 25 social infrastructure and 3 livelihoods SPs that involve the rehabilitation/construction of infrastructure, the purchase of goods and equipment and additional works to the existing contracts by November 15, 2024. The mission reiterated that all SPs should be implemented before the project closure date. Table 2. Component 2 Village Investments under Cycle 1, Cycle 2 and Cycle 3 by Sector Cycle 1, Cycle 2 and Cycle 3 Description Subproject type/sector Number % by sector Education 188 70% Renovation works for schools, kindergartens and equipment Health 69 25% Construction of new 38 medical facilities (first aid points) and renovation of existing 31 medical facilities Special equipment (vehicles) 13 5% Waste collection machinery Livelihoods 72 21% 55% cereals, 12% handicraft, 11% meat, 10% berries and fruits, 11% tourism, milk and etc. 4 Total 342 100% 16. Technical supervision. In September 2024, the WB engineering consultant conducted a technical review of 45 subproject checklists uploaded to the ARIS website for the period May- September 2024 on subprojects in Chui, Talas, Naryn, and Issyk-Kul oblasts. Preliminary findings revealed the following shortcomings: (i) the checklist information posted on the ARIS website is not sufficient for a complete analysis, a prompt inspection of ongoing construction works is needed; (ii) executive documents, including acceptance certificates of completed construction projects are not provided. The list of subprojects that require additional attention during supervision, as brick walls in those sites do not have vertical reinforced concrete inclusions.5 As a next step, ARIS agreed to: (i) provide comments on the technical report by October 31, 2024; and (ii) support WB engineering consultants to carry out field visits for an operational inspection of the implemented facilities; (iii) conduct screening of all subprojects, analyze all technical gaps and provide suggestions, how those technical comments will be rectified by October 31, 2024; and (iv) to address all comments by November 15, 2024. 17. Component 3. Project Management. The team will finalize all project activities, verify recording and filing of all documents in ARIS MIS across all four oblasts of project activities. 18. Monitoring and Evaluation (M&E). Table 1 in Annex 3 reports on the results framework indicators. ARIS also conducted additional rounds of social accountability activities following the completion of the social mobilization activities. The mission discussed the ongoing endline survey, the training for enumerators held in August, and the challenges in finding interviewees because many of them are engaged in fall harvest activities. Nonetheless, ARIS indicated that the survey firm is on track to finish field work by the end of September. ARIS also shared the outline for the PCR. For the PCR, ARIS will also assess: (i) the amount of co-financing raised for each VIP3 infrastructure sub-project; (ii) the sub-projects identified via the mobilization process that were financed from other sources. ARIS agreed to share the draft endline by October 25,2024 and ARIS PCR by October 31, 2024. 19. Online platform (OLP). To date, 726,635 community members (52% women) have participated in online prioritization activities. A total of 241 subprojects were selected on the online platform, and 3,638 windows were created for selection events. Additionally, next ranked 101 subprojects were selected within allocated funds. 578 windows were created on subprojects implementation and relevant information, as well as videos, were posted. 10,336 users actively left comments in the online discussion, 6,305 (61%) were women. The draft version of the OLP demo has been developed and will be presented to the WB task team by October 31, 2024. 20. Communications. The mission discussed communication objectives to increase awareness of community-level (and LSG) capacities, needs, and achievements in contributing to national development objectives – and how to increase community-level engagement. ARIS continued to develop and disseminate informational materials, and provide a platform for public information and exchange of good practices from the AF project via the ARIS website, its official Facebook and Instagram pages, Telegram channel, and central and regional media. As a next step, ARIS will include all outcomes of the communications activities to the PCR by October 31, 2024. 21. Beneficiary feedback mechanism (BFM). ARIS has set up a sophisticated and well functionating online GRM and BF platform, while grievances also could be submitted through traditional means. Since the last mission, ARIS has also received over 20 submissions through the BFM channels under the AF project—12 general queries related to participating in the AF, three complaints related to: (i) the implementation of construction works; (ii) delay in decision making and implementation of the subproject; (iii) delay in payment for sub-contractor from contractor; (iv) 5 "Construction of FAP in Novo-Konstantinovka village, Issyk-Kul oblast"; "Construction of FAP in Munduz village, Issyk-Kul oblast";"Construction of FAP in Dolon village, Issyk-Kul oblast". 5 livelihood subproject proposal. ARIS responded to all complaints by investigating the issues, meeting with community members and providing relevant information. There are no current outstanding requests or complaints. 22. Environmental and social safeguards. The project’s environmental and social safeguards performance is Satisfactory. Since the last mission, advancements have occurred with the successful development of environmental and social management plans (ESMPs) totaling now 270. The following issues were discussed during the mission: (i) the construction waste management status; (ii) medical waste management at the constructed/renovated primary healthcare facilities; (iii) the implementation of measures to mitigate/eliminate risks related to construction activities; (iv) hazardous waste management in the school renovation project; (v) special attention to the sanitary and hygienic condition of outdoor toilets subject to demolition; and (vi) in person participation of public consultations by ARIS safeguard specialist. The construction waste management within the project is currently under effective control. The project exhibits effective management of construction waste, conscientiously transporting it to local landfills while maintaining adherence to established environmental standards. However, further investigation is needed to determine whether the project Contractors have contracts with local authorities for efficient waste disposal, especially asbestos contained waste. The project, with a dedicated commitment to safety, has implemented proactive measures for risk mitigation during construction activities. This unwavering commitment ensures a secure working environment for project personnel. The project also shows commitment in management of the hazardous waste, like medical waste at the constructed and renovated primary level healthcare facilities by providing recommendations on safe management of generated medical waste in accordance with the government regulation. Furthermore, the project provided solutions in managing hazardous waste (fluorescent lamps) in one of the schools by the means of the hazardous management company and later the project shall check on duly utilization of these lamps by the contractor and report back to the Bank. 23. Furthermore, the project excels in community engagement by conducting public consultations and involvement practices that foster transparent communication and actively record community concerns, suggestions, and comments, particularly those linked to matters of environmental protection and occupational health and safety. Additionally, the project considers factors like dust, noise, and falling objects when scheduling reconstruction works in kindergartens and schools, thoughtfully planning such activities during holidays or online learning periods. The overall environmental safeguards performance is rated Satisfactory (S). 24. Social safeguards. A total of 270 ESMPs have been developed for sub-project proposals, publicly consulted, and publicly disclosed. The mission notes that in the public consultations to discuss these ESMPs held at sub-project sites had a prevailing number of 6,696 women out of a total of 9,767participants. No cases of gender related violations have been reported and thus registered in the GRM system. All ESMPs have a provision on the LMP and actions on how labor relations are being managed including the Code of Conduct, workers GRM are included in tender documents for sub- projects and are duly supervised. The most recent GRM data contains 12 inquiries, 3 complaints and 5 acknowledgments. Complaints are related to contract violations, dissatisfaction with contractor quality service provision. The system contains details of how these cases have been resolved in some cases. In view of the upcoming project closing date of November 30, 2024 , the mission recommends that all inputs in the system when reported have sufficient detail as some cases registered as completed are still lacking the details including the nature of complaints, as well as are not gender disaggregated. Related to the project completion, the mission reiterates its advice to the ARIS safeguards team to begin collecting cases of the unexpected outcome - both positive and negative - and any corrective actions taken up if/when needed. Such effort might feed into lessons learned that potentially would prove useful for the PCR. 25. Due diligence on land impacts is in place. Checklists on social issues for all sub-projects contain a provision on land ownership and sub-projects now in progress indicate that they are being implemented without impact on privately owned lands. The project has gained sufficient experience in 6 managing social and environmental issues, which might be useful for replication in future by ARIS implemented projects. The overall social safeguards performance is rated Satisfactory (S). 26. Procurement. Procurement Progress since Project Inception: As of the time of the Mission, 473 contracts (consulting services -103, goods -77, works -293) with a total value of US$ 13,125,811 equivalent have been awarded. Information in the Systematic Tracking of Exchanges in Procurement (STEP) system shall be updated and all contracts shall be uploaded to the contract administration module. ARIS needs to make sure that all contracts are completed in the Bank’s system by the project closing date. 27. Procurement Processes, Contract Administration & Management: The latest version of Procurement Plan was submitted to the Bank, duly reviewed and cleared on October 02, 2024. During the mission, post review of the procurement activities (PPR) was conducted in order to: i) verify the procurement procedures followed for the project in compliance with the agreed provisions of the Financing (Legal) Agreement and applicable Procurement Regulations; ii) check that the procurement arrangements agreed with the Implementing Agency are in place; and iii) identify procurement and contract management issues and suggest mitigation measures for implementing agency. PPR was conducted on-line based on the data available in the STEP and will be shared with ARIS for further implementation of recommendations. Findings from the Review of Procurement Processes: • Item-by-item evaluation was not opted for goods package with varying items. • Annual turnover qualification requirement was excessive for small-value procurement. • Planned dates in STEP were inaccurate in several cases. • Price monitoring information to support cost estimates was not available for goods procurement. Findings from the Review of Contract Administration & Management: • The payment schedule in the consultancy contract was unclear and should include specific deliverables. • One contract was terminated due to territorial reforms but notification did not reference relevant contract clauses. • The delivery period of three days was unrealistic in the goods’ contract; liquidated damages of 1% per week were excessive. • The defect liability period of 12 months is too long for a small civil works contract and may be reduced to 6 months. The contract is ongoing with inaccurate information in the Bank’s system. 28. The WB team confirmed that procurement arrangements in ARIS remain acceptable to the WB and the procurement performance rating is Satisfactory. ARIS follows agreed procurement and should focus on timely completion of all contracts by the project closing date. 29. PROJECT PROCUREMENT RISK RATING Moderate. Procurement arrangements, including procurement capacity, planning, the procurement process, and contract management, were reviewed and confirmed to be overall adequate and acceptable to the Bank. ARIS should ensure that all procurement records are timely completed in the STEP. 30. Financial management (FM). Based on the mission findings, the FM arrangements, including planning and budgeting, accounting, financial reporting, internal controls, funds flow, and external auditing, were confirmed to be in place for the AF project. ARIS submits quarterly interim financial reports (IFRs) on time; these IFRs, including the latest one for Q2 2024, have been acceptable to the WB. The auditor issued an unmodified (clean) opinion on the parent project’s financial statements (PFS) for the 2023 fiscal year (FY). Based on the current FM mission results, the residual FM risk rating remains Substantial due to the complex flow of funds, including the involvement of grants, within the project. The FM ISR rating of the project is Satisfactory following the FM supervision visit in April 2024. 7 National Community Initiatives Project Table 3: Key Project Data Government Request Financing Proposed Implementation Period MoF formal request $25 million (IDA) 5 years received $2 million (TF) Proposed PDO The PDO is to improve access to climate-resilient socio-economic infrastructure and increase economic opportunities for women and youth in target communities. Proposed Components and Sub-components Component 1 (US$19.9 million): Village infrastructure investments and institution strengthening. ▪ Subcomponent 1a (US$18.5 mln.): Socio-economic infrastructure investments. ▪ Subcomponent 1b (US$ 1.4 mln.): Mobilization and institution strengthening of communities and local self-governments. Component 2 ($5.7 million): Local economic development and livelihood opportunities for women and youth. Component 3 ($1.4 million): Project Management. Component 4: CERC Table 4: Project Milestones Negotiations conducted May 29, 2024 Board Approval July 30, 2024 Signing October 28, 2024 Effectiveness December 30, 2024 Closing date December 2029 31. Effectiveness. ARIS and the WB task team reviewed next steps for project signing, Parliamentary ratification, and effectiveness. Project preparations were completed and negotiations were concluded on May 29, 2024. The project was approved by the WB Board of Executive Directors on July 31, 2024. The package of project documents has been submitted to the Cabinet of Ministers and received clearance from 10 ministries and agencies. The Government proposes to sign the legal agreement at the Annual Meetings in October in Washington, DC. The mission discussed forthcoming steps for ratification and effectiveness, including preparation of the project operations manual (POM) and related training modules, including how they are being tailored to support the ATR, enhance participation and inclusion in the updated AA/sub-district planning process, enhance the climate focus of infrastructure and livelihood investments, and how to enhance livelihoods and jobs. The mission met with the Ministry of Finance and the Ministry of Economy and Commerce. MoEC noted that the operation is relevant and timely, given the potential to support the rollout of the administrative territorial reforms, and stated interest in expanding the size of the operation. As a next steps, to reach project effectiveness, ARIS set the following timetable: (i) sign Financing and Grant Agreements by October 29,2024; (ii) pass Parliament ratification process by December 30, 2024; (iii) develop and adopt the Project Operational Manual by November 29, 2024; (iv) issue and sign the Subsidiary Agreement by December 30,2024. 32. Selection of Aiyl Aimaks. ARIS provided the analysis of AAs versus the criteria and the signed minutes documenting the list of selected AAs. The mission requested ARIS to outline in the POM the steps that these AAs would need to take in order to initiate project activities. 33. Administrative Territorial Reforms and updated local planning process. To inform NCIP activities supporting local governments, the mission included meetings with local Aiyl Okmotu (AO) (sub-district) officials on the recently enacted Administrative Territorial Reforms and updated local 8 planning process. AO officials noted that with the consolidation of Aiyl Aymaks, a smaller number of staff is now responsible for larger areas and oversees a broader range of rural communities. While the administrative units have grown in size, operational budgets have not kept pace. This is challenging because AO staff provide frontline and data collection services that are labor intensive. They said that despite increased workloads, compensation remains unchanged. The ATR also provided for the formation of Municipal Enterprises (MEs) in each AA, consolidating local services such as water, sewage, waste, and pasture management. Whereas responsibilities and budgets for these services had previously been separate, now they are merged under a single entity and bank account. Local officials also noted that rural districts are often under-equipped in terms of technological infrastructure, including computers, internet access, and other essential office equipment – which may hinder the effectiveness of local governments. Finally, AO officials noted that the updated SEDP planning process is an improvement because it is more specific, uses a data-driven approach, and is aligned with available budget. However, it is also more labor intensive, and AO officials said additional support will be needed to fully operationalize the updated LSG planning process. 34. To inform related NCIP training modules, ARIS participated in trainings conducted by the Effective Governance for Economic Development program (EGED) on the updated social-economic development plan (SEDP) preparation methodology. ARIS reported that the quality of the trainings was good, but the volume of training material was large compared with the 3-day training window, and that there was little coverage of how to engage communities. Given that some LSGs had to submit SEDPs within a month, the planning process was very abbreviated. ARIS also noted that because 5-year SEDPs have already been prepared for some AAs, mobilization will need to be tailored depending on where each participating AA stands on its SEDP process. 35. Social mobilization and training, including support for LSGs and local planning. ARIS shared initial NCIP social mobilization plans and capacity building modules, including how the project will engage with LSGs and Working Groups preparing SEDPs. ARIS agreed to provide slides with an updated step-by-step breakdown of how NCIP mobilization and trainings will map to the updated SEDP process by October 25, 2024. The mission noted that the POM should be clear on how mobilization will be timed to match local government processes, and what steps will be added to ensure participation, inclusion of women and vulnerable groups. 36. Climate Change: The mission discussed ARIS’ draft climate change framework and discussed role of climate change ambassadors, what additional training they will need to inject climate considerations into SEDP and Working Group processes, how climate adaptation can be integrated into infrastructure proposals and livelihood activities. ARIS also shared proposed approach to ensure that buildings constructed under NCIP meet Kyrgyz standards for energy efficiency. The Bank team shared an example of a participatory community climate risk assessment being used in another operation and requested ARIS to review and integrate relevant steps into POM sections on the SEDP and prioritization of infrastructure and livelihood investments, and into relevant training modules. 37. Finalizing preparation and readiness for implementation: The mission discussed ARIS action plan to accelerate NCIP preparation. As a next step, ARIS agreed to provide following: (i) options to accelerate disbursements under the project by October 31, 2024; (ii) plans to reduce the operational expenses and increase efficiency of the work, including detailed list of the staff and detailed list of operational expenses by October 31,2024; (iii) provide TORs for the key project staff positions by October 31,2024; (iv) start recruitment of staff by November 15, 2024. All staff recruitment should be priorly agreed with the WB task team, according to the POM requirements. 38. Coordination of national level activities. The regulations for the Project Coordination Committee (PCC), comprising of representatives from the Ministry of Finance, the Ministry of Economy and Commerce, the State Agency for Public Service and Local Self-Governance under the Cabinet of Ministers of the Kyrgyz Republic, the Union of Local Self-Government and ARIS have been developed and agreed with the WB task team. As a next step, ARIS will organize a first meeting of the Project Coordination Committee by December 30, 2024. 9 39. Environmental and Social Risk Management. The overall environmental and social (E&S) risk of the project is Moderate. The Environmental and Social Standards (ESSs) 1, 2, 3, 4, 5, 6, 8 and 10 are relevant for the project. Towards addressing the E&S risks associated with the planned project activities, ARIS prepared, consulted upon, approved and disclosed all the E&S instruments as stated in the Environmental and Social Commitment Plan (ESCP) which is part of the Financing Agreement. The Stakeholder Engagement Plan (SEP) was adopted and disclosed prior to the project appraisal. The Environmental and Social Management Framework (ESMF), Resettlement Policy Framework (RPF) and Labor Management Procedures (LMP) have been finalized and disclosed prior to the Board approval. In accordance with the ESCP, the Bank team reminded ARIS to (i) hire one Social Development Specialist and one Environmental Specialist in accordance with ToR acceptable to the Bank within 30 days from the project effectiveness date, (ii) establish the grievance mechanism for Project workers prior to recruitment of Project workers, and (iii) operationalize the Project grievance mechanism prior to the commencement of Project activities. Given the expected project effectiveness in December 2045, the mission agreed that ARIS will submit to the Bank (i) the ToRs for E&S specialists by October 31,2024 and (ii) Stakeholder Engagement Program for first year of the project implementation by October 31, 2024. 40. Procurement. The evaluation of the proposed procurement framework for the project, including procurement planning, the procurement process, and contract management in ARIS, are acceptable to the Bank. These procurement arrangements have undergone consistent assessments, with the most recent review completed in April 2024. Identified procurement risks at the initial negotiations stage encompass: (i) ARIS' experience in implementing projects funded by various International Financial Institutions (IFIs), which may constrain its capacity to manage procurement for the new project; (ii) the limited capability of local beneficiaries to develop detailed designs and technical specifications for specified investments, potentially leading to substandard bidding documents; (iii) the effects of escalating gas, oil, and fuel prices on costs, creating the possibility of obsolete cost estimates; (iv) potential delays due to capacity constraints, limitations of the local market, and local currency depreciation, which may deter bidders from submitting bids in the local currency; (v) current challenges in logistical services, including the transportation of goods, which could cause delays in contract execution; (vi) an overall volatile procurement environment characterized by frequent changes in procurement laws and a high level of corruption, as indicated by Transparency International. The standalone procurement risk at the negotiations stage is deemed substantial and will be subject to revision during the project's implementation phase. ARIS has prepared the Project Procurement Strategy for Development (PPSD) and the Procurement Plan (PP) for the project. The Project Operational Manual (POM) should incorporate a detailed procurement section, adhering to the template provided by the World Bank. Upon the project’s effectiveness, ARIS is required to appoint two qualified procurement specialists, one each for the northern and southern regions, who will be responsible for managing the project’s procurement activities. ARIS should upload the Procurement Plan and PPSD in STEP and start preparation of the essential procurement packages by project effectiveness. 41. Financial management (FM). The assessment of the FM arrangements for the proposed project was updated during the mission. It was confirmed that FM arrangements established by the ARIS for implementation of the existing projects and used as a basis for FM assessment under the National CDD Project are overall adequate and acceptable to the Bank. FM function for the National CDD Project, including budgeting, accounting and reporting, flow of funds, internal controls and staffing, will rely on the existing arrangements that are found to be satisfactory a to the Bank. To strengthen capacity of the ARIS and ensure smooth start of the Project implementation the following actions were recommended and agreed with the ARIS: (a) development of project-specific FM arrangements as a section in the Project Operations Manual (POM); (b) recruitment of a dedicated disbursement specialist to support the FM manager of the ARIS, considering the existing workload of the FM staff and the complexity and size of the proposed project; (c) ARIS may also contract dedicated assistant accountant if and when needed to support the CDD activities; and (d) extension of the accounting software to include the new project within 30 days of project effectiveness. In addition, a separate Sub-grants manual will need to be developed. 10 NEXT STEPS AND AGREED ACTIONS Table 5. Summary of Agreed Actions Actions Responsible Due Date VIP 3 AF Component 1 1 Action plan to strengthen financially sustainability of livelihoods ARIS October 31, 2024 subprojects submitted to the WB 2 To inform/include to the project completion report good practice examples ARIS October 31, 2024 including climate elements, describe how women benefited from livelihoods investments and LSP 3 To finalize mentorship support ARIS November 30, 2024 4 All social accountability activities completed ARIS November 15, 2024 Component 2 5 All remaining biddings and amendments to the contracts finalized ARIS October 25, 2024 6 Implementation of 39 social infrastructure and 12 livelihood SPs that ARIS November 15, 2024 involve the rehabilitation/construction of infrastructure, the purchase of goods and equipment completed 7 Comments on the technical report provided to the WB ARIS October 31, 2024 8 Screening of all subprojects, analyze technical gaps and suggestions ARIS October 31, 2024 provided to the WB 9 All technical comments within SPs addressed ARIS November 15, 2024 Component 3 10 M&E: Draft endline report shared with the WB ARIS October 25, 2024 Project completion report October 31, 2024 Collect the data and include to the project completion report on percentage October 31, 2024 of sampled subprojects that result in infrastructure services of a satisfactory quality 11 Online platform Demo version of the OLP presented to the WB ARIS October 31, 2024 Procurement and Financial Management 12 Update information in STEP for all packages under parent and AF project ARIS November 30, 2024 National Community Initiatives Project Effectiveness and readiness for implementation 13 Financing and Grant Agreements are signed ARIS/MoEC October 29, 2024 14 Parliament ratified the Project ARIS/MoEC December 30, 2024 15 Project Operational Manual developed and shared with the WB ARIS November 29, 2024 16 Subsidiary Agreement is issued and signed ARIS/MoF December 30, 2024 17 Step-by-step breakdown of how NCIP mobilization and trainings will map ARIS October 25, 2024 to the updated SEDP process provided to the WB 18 Options to accelerate disbursements under the project provided to the WB ARIS October 31, 2024 19 Plans to reduce the operational expenses and increase efficiency of the ARIS October 31, 2024 work, including detailed list of the staff and detailed list of operational expenses provided to the WB 20 TORs for the key project staff positions, including E&S specialists ARIS October 31, 2024 provided to the WB 21 Recruitment of staff started ARIS November 15, 2024 22 First meeting of the Project Coordination Committee handled ARIS December 30, 2024 Environmental and Social Risk Management 23 Stakeholder Engagement Program for the first year of project ARIS October 31, 2024 implementation prepared and shared with the WB Procurement and Financial Management 24 Detailed procurement section developed and incorporated to the POM ARIS November 29, 2024 25 Procurement plan and PPSD uploaded in the STEP ARIS December 30, 2024 11 26 Project-specific FM arrangements are developed and included to the ARIS November 29, 2024 Project Operations Manual (POM) 27 New project accounting software enhanced ARIS December 30, 2024 28 Sub-grants manual developed and shared with the WB ARIS November 29, 2024 Table 6. Status of Agreed actions from the Previous AM Actions Responsible Due Date Status VIP 3 AF Component 1 1 Analyze remaining savings within all AAs allocations and ARIS May 31, 2024 Completed provide a list of subprojects/activities financed by savings budget to the WB 2 Participate in EGED conducted trainings on SEDP ARIS July 31, 2024 Completed preparation methodology and provide suggestions for NCIP support 3 Biddings for livelihoods subprojects finalized ARIS May 31, 2024 Completed 4 Action plan to strengthen sustainability of livelihoods ARIS May 31, 2024 Not completed subprojects submitted to the WB 5 Delivery of LSP trainings finalized ARIS July 31, 2024 Completed 6 To finalize mentorship support ARIS October 31, 2024 In progress 7 Analyze and provide outcomes/results and lessons learned ARIS June 28, 2024 In progress from the LSP activities and recommendations to strengthen LSP program for future to the WB 8 All gender trainings finalized ARIS July 31, 2024 Completed 9 All exchange visits finalized ARIS August 30,2024 Completed 10 Action Plan for organization of Climate Forum submitted ARIS June 14, 2024 Completed to the WB 11 All social accountability activities completed ARIS October 31, 2024 In progress Component 2 12 All biddings for subprojects and additional works/goods ARIS May 31, 2024 Completed completed 13 Implementation of 85 SPs that involve the ARIS June 28, 2024 Completed rehabilitation/construction of infrastructure, the purchase of goods and equipment completed 14 Implementation of the next 44SPs completed ARIS August 30,2024 Completed 15 Implementation of the next 40 SPs completed ARIS September 30, 2024 In Progress 16 Comments on the technical report, including previous ARIS June 14, 2024 Completed comments provided to the WB 17 Missing documents (checklists, design and estimate ARIS June 14, 2024 Completed documentation, construction estimate documentation, laboratory test results, concealed works certificates and acceptance certificates) provided to the WB 18 Screening of all subprojects, analyze technical gaps and ARIS June 14, 2024 In progress suggestions provided to the WB 19 All technical comments within SPs addressed ARIS August 30, 2024 Completed Component 3 20 Semi-annual report submitted to WB ARIS July 31, 2024 Completed 21 Online platform In progress Demo version of the OLP presented to the WB ARIS June 14, 2024 22 Communications Completed Action plan for communications activities including ARIS June 14, 2024 regional and nation level submitted to the WB 23 Provide suggestions and action plan to conduct Climate ARIS June 14, 2024 Completed forum Procurement and Financial Management 12 24 Update information in STEP for all packages under parent ARIS June 28, 2024 In progress project 25 Update information in STEP for all packages under VIP3 ARIS August 30, 2024 In progress AF project 26 The audit of the combined PFS for FY2022–FY2023 ARIS June 30, 2024 Completed submitted to the WB Annex 1: List of Officials Met during the WB Mission Ministry of Finance of the Kyrgyz Republic Danaker Tairbekova, Leading Specialist of the Department for Project Management of Public Investments, Ministry of Finance of the KR 13 Ministry of Economy and Commerce Choro Seitov, First Deputy Minister of the Ministry of Economy and Commerce Sopukeyev U., Head of the Interregional Department of the Ministry of Economy Askarov E., Head of the Department of Monitoring and Evaluation of External Assistance Orozkulov A. Head of the Department of Regional Development Policy Mamatov I., Head of Regional Development Policy Department Asanalieva M., Chief Specialist of the External Aid Monitoring and Evaluation Department ARIS Mars Naspekov, ARIS Executive Director Asel Mambetkulova, ARIS Deputy Executive Director Stalbek uulu Baktybek, ARIS Acting Financial Manager Mirbek Dosuev, VIP-3 AF Acting Coordinator Tanat Osmonkulov, Sr. Social Mobilization Specialist Asel Yrysbekova, Monitoring and Evaluation Specialist Aida Amankulova, Disbursement Specialist Irina Abdrahmanova, Communications Specialist Aibek Berdigulov, Procurement Specialist Ulan Bekkulov, Translator Nurdin Osmonov, Translator Akak Turalieva, Online Platform and MIS/BFM Specialist Ulan Isabekov, Sr. Economist Mirzhan Ozubekova, Gender Development Specialist Timur Kandzhebaev, Safeguards Specialist Mikhail Bodan, Infrastructure Engineer Rahatbek Musakov, Infrastructure Engineer Dzhenishbek Dzhusupov, Infrastructure Engineer Taalai Japarkulov, Business Skills Specialist Asylbubu Matkerimova, Climate Change Specialist Emilbek Kulchiev, Project Assistant Annex 2: List of all sites and SPs visited. Chuy oblast 14 1. Repair of the canteen of A. Aidaraliev Kairma secondary school, Kairma village, Dostuk Aiyl Aimak, Alamudun Rayon. KGS 2,961,187. Completed 9/20/2024. School serves 600 students in two shifts. Was subsequently visited by Managing Director Zhang during his field visit. 2. Construction of FAP, Zhany-Turmush village, Birimdik AA, Chuy Rayon. KGS 5,682,413, (o/w KGS 4,698,000 financed by VIP3). Completed 5/10/2024. 3. Renovation of the medical center (Family Group Practitioners) building in Chym-Korgon village, Chym-Korgon AA, Chym-Korgon village. KGS 6,971,448 (o/w KGS 4,698,000 financed by VIP3AF). Completed 6/1/2024. Naryn oblast: 1. Consultation with local government officials on administrative territorial reforms and updated AA socioeconomic development plan. 2. Improvement of energy efficiency and sanitary and hygienic conditions (Replacement of windows and doors in the kindergarten, repair of sanitary units), ZHERGE-TAL Aiyl Aimak, Naryn Rayon. KGS 2,174,820. Completed 20.12.2023. 3. Construction of FAP, Echki-Bashy village, MIN-BULAK Aiyl Aimak, Naryn Rayon. KGS 5,200,000 (o/w KGS 4,698,000 financed by VIP3AF). Completed 7/30/2024. 4. Construction of women’s workshop in Kuibyshev village in Mini-Bulak AA, Naryn rayon�.KGS 13,813,928 (o/w KGS 6,525,000 financed by VIP3AF. Completed 8/30/2024. 15 Annex 3: Additional Tables Information about the social accountability conducted under VIP-3 AF. Phase 1: Social accountability on social mobilization was carried out in 241 AAs and the following results were obtained: # Questions Social accountability results on social mobilization in (%) 1 Do the project-funded community investments 99 reflect your priority needs? 2 Has your decision-making role in the project 98 increased? 3 Has the agreed process of community 99 mobilization and social accountability been effectively completed? 4 Was your participation in decision-making on 98 project investments effective? 5 Were sub-projects prioritized in women's groups? 97 Phase 2: Based on the results of social accountability on the implementation of 227 completed subprojects, the following results were obtained: # Questions Social accountability results of subproject implementation in (%) 1 Has access to infrastructure and services improved 98 after completion of the subproject? 2 Does the subproject support meeting the post- 97 COVID-19 needs? 3 Does the implemented economic subproject help 91 in reestablishing additional sources of income? 4 Are measures for adaptation to climate change 88 envisaged and implemented in the subproject? 5 Have energy efficient materials and/or equipment 89 been used/installed? 6 Are actions for subsequent operation foreseen and 92 sufficient? 7 Are the costs and sources of funding for operation 89 and maintenance (O&M) costs accounted for? 16 Annex 4 VIP-3 AF remaining subproject implementation status as of October 23, 2024 Contract amount Timefra me for SP AO Oblast Rayon AA Subproject Total, Status completi Remarks # Grant contribut KGS on of ion works only additional Novo-Konstantinovka works remain, October 1 village: Construction 5,500,663 3,755,000 1,745,663 completed which will be 30, 2024 of FAP completed by October 30,2024 KEREGE Orlinoe village: Ak-Suu -TASH Repair of internal sanitary equipment and October 2 replacement of electric 1,778,959 1,317,000 411,959 completed 30, 2024 convectors at the "Baktyluuu bilba" preschool. Chon-Uruktu village: External insulation and replacement of electric October 3 convectors at the 2,461,754 2,461,754 completed 30, 2024 ORYUK secondary school Issyk-Kul named after Akun TINSKY Issyk-Kul Myktybek uulu. Novemeb Kok-Dobo village: 4 5,488,158 2,979,436 2,508,722 80% er Construction of a FAP 15,2024 construction works completed for 100%, SAN- Santash 3: October 5 Tyup 6,051,754 4,698,000 1,353,754 completed payments will be TASH Construction of a FAP 2024 conducted after submission of all documents construction works completed for 100%, Dolon village: October 6 Tyup ARAL 6,727,007 5,655,000 1,072,007 completed payments will be Construction of a FAP. 2024 conducted after submission of all documents construction works completed for 100%, KOCHK Construction of FAP in October 7 5,799,727 5,799,727 completed payments will be OR Tendik village 2024 conducted after submission of all documents Replacement of KARA- October 8 heating and lighting 4,743,480 4,743,480 98% SUU 30, 2024 system of the school. Novemeb SARY- Construction of kitchen 9 2,647,578 2,175,000 472,578 80% er 15, BULAK for the school Shamen. Naryn 2024 Balastan-Nuru kindergarten building. improvement - TALAA- Novembe 10 Construction of 2,294,048 2,294,048 90% insultation of BULAK r 15, 2024 network, replacement façade remain of heating system October 11 FAP Renovation 1,483,881 1,156,413 327,468 completed 30, 2024 Improve energy only additional efficiency and works remain, KAZAN- sanitation conditions Novembe which will be 12 2,174,820 2,174,820 0 completed KUIGAN (Replace windows and r 15, 2024 completed by doors kindergarten, November 15, repair sanitation units) 2024 17 Renovation and insulation of October 13 SARY-OI 2,373,490 2,175,000 198,490 completed kindergarten in Zylan- 30, 2024 Aryk village Construction of FAP in October 14 5,079,613 2,525,000 2,554,613 completed Ak-Kiya village. 30, 2024 TOGOLO K- Repair of school October 15 3,400,000 3,400,000 95% MOLDO sanitary facility 30, 2024 VSKY Construction of BAETOV Novembe 16 additional kindergarten 5,550,225 5,550,225 70% SKY r 15,2024 building. Annex for canteen in Novembe 17 6,798,127 3,259,049 3,539,078 90% A.Madumarov school. r 15, 2024 only additional Construction of works remain, additional building for AITMATO Novembe which will be 18 SHEKER the kindergarten 6,659,874 5,655,000 1,004,874 completed V r 15, 2024 completed by “Archa-Beshik� in November 15, Archagul village. 2024 Replacement of only additional windows, installation works remain, Talas KIRGISI of internal lighting, Novembe which will be 19 MANAS 3,096,998 3,096,998 completed A repair of the heating r 15, 2024 completed by system of the “Nariste� November 15, kindergarten 2024 Installation of entrance doors, replacement of only additional OSMON sinks in the canteen in works remain, KULOV Bakai-Tash school Novembe which will be 20 TALAS 719,400 659,223 60,177 completed (TALDY- named after r 15, 2024 completed by BULAK) M.Tuytunov" in Taldy- November 15, Bulak village, Talas 2024 district. only additional Replacement of works remain, electric heaters in Novembe which will be 21 Baitik uulu Kanai 4,196,734 4,196,734 completed r 15, 2024 completed by secondary school in November 15, October village. 2024 Renovation of sanitary ALAMUD units of secondary October 22 5,530,922 5,530,922 completed UN schools No. 1 and No. 30, 2024 2 in Alamudun village. KRASNO Construction of FAP Novembe 23 JAYIL VOSTOC building in Kara-Dobo 4,500,000 3,567,000 933,000 75% r 15, 2024 HNY village Replacement of wooden door blocks only additional and repair of wooden works remain, AK- floors in the secondary Novembe which will be 24 KEMIN 1,760,255 1,760,255 0 completed CHUI TYUZ school of Ak-Tyuz r 15, 2024 completed by village, Ak-Tyuz November 15, village, Ak-Tyuz aiyl 2024 okmotu. Installation of sanitary and technical units and ILYCHE October 25 KEMIN external sewerage in A. 2,523,104 2,523,104 0 completed VSK 30, 2024 Bakaev School in Ilyich village. KYZYL- Construction of FAP in Novembe 26 KEMIN OSTOYE 6,009,443 6,009,443 70% Kashkelen village r 15, 2024 RSKY only additional works remain, MOSKOV Repair of kindergarten 17,516,47 10,121,47 Novembe which will be 27 PETROV 7,395,000 completed SKIY in Petrovka village 4 4 r 15, 2024 completed by November 15, 2024 18 Renovation of internal sanitary units, replacement of electric wires, replacement of October 28 2,107,294 2,107,294 0 completed electric cables of 30, 2024 electric heating, secondary school Besh Koruk Construction of FAP SOKULU GAVRIL Novembe 29 building in Gavrilovka 5,356,054 5,356,054 0 95% K OV r 15, 2024 v. only delivery of additional equipment Construction of FAP SOKULU Novembe remain, which 30 FRUNZE building in Frunze 6,538,971 6,538,971 0 completed K r 15, 2024 will be village completed by November 15, 2024 only delivery of additional equipment Construction of FAP SOKULU Novembe remain, which 31 OROK building in Selektsiya 5,917,799 5,917,799 0 completed K r 15, 2024 will be village completed by November 15, 2024 Construction of FAP SOKULU KYZYZY Novembe 32 building in Novaya 5,862,348 5,655,000 207,348 80% K LTUUK r 15, 2024 village only delivery of additional Renovation of equipment KOSH- kindergarten premises Novembe remain, which 33 CHUI KORGO 2,378,176 2,378,176 0 completed in Kosh-Korgon r 15, 2024 will be N village completed by November 15, 2024 Purchase of furniture BURAN October 34 CHUI for the educational 6,833,795 4,698,000 2,135,795 completed A 30, 2024 institution Construction of FAP in Novembe 35 CHUI KEGETI 4,798,883 4,698,000 100,883 80% Sovetskoye village r 15, 2024 only additional works remain, Renovation of YSYK- UZUN- Novembe which will be 36 kindergarten in Jer- 2,947,293 2,871,000 76,293 completed ATA KYRSKY r 15, 2024 completed by Kazar village November 15, 2024 Replacement of windows of school in only additional Almaluu village and works remain, YSYK- YSYK- replacement of the Novembe which will be 37 4,986,363 4,698,000 288,363 completed ATA ATA roof, canopy and repair r 15, 2024 completed by of the facade of the November 15, school in Karagai- 2024 Bulak village. Purchase of special YSYK- KEN- October 38 machinery for solid 5,801,102 5,655,000 146,102 completed ATA BULUN 30, 2024 waste removal Renovation of YSYK- KOCHK October 39 kindergarten in 4,906,769 4,698,000 208,769 completed ATA ORBAEV 30, 2024 Budenovka village 19 Status of implementation of subprojects of the ARIS VIP-3 AF Completion Contract amount Status date # Oblast Rayon AA Type SP AO Total, ARIS contribut KGS grant ion completed. Construction of a Preparing October 510,328 grain cleaning documents for 30,2024 Economi station and payment 1 TEPKE c procurement of completed. equipment for Tepke Preparing October 472,548 village documents for 30,2024 Ak-Suu payment Construction of Construction grain cleaning completed. KARA- Economi station and October 2 2,075,662 1,848,000 227,662 Preparing DZHAL c procurement of 30,2024 documents for equipment for payment Tegizchil village Construction of a grain processing Economi October 3 LIPENSKY station and purchase 1,280,000 1,273,280 6,719 Fully completed c 30,2024 of equipment for Ichke-Bulun village Procurement of grain processing Economi equipment and Completed by November 4 ORGOCHOR 598,913 598,913 Issyk-Kul c construction of 70% 15,2024 Jeti-Oguz afabric building for Boz-Beshik village Repairs are Establishment of a being carried tourist out. 80% camp/camping site complete. The AK- Economi November 5 and purchase of 1,999,008 1,999,008 household SHYIRAK c 15,2024 household equipment will appliances in Uch- be delivered by Koshkon village October 30, 2024. Construction of grain cleaning Completed, Economi station and preparing October 6 ISSYK-KUL 1,531,000 531,000 1,000,000 c procurement of documents for 30,2024 equipment for Issyk- payment Kul village Tyup Construction of a grain cleaning Completed, Economi station and purchase preparing October 7 CHON-TASH 1,331,000 531,000 800,000 c of equipment for documents for 30,2024 Zhyluu-Bulak payment village The equipment Purchase of waste Economi will be delivered November 8 At-Bashy AK-ZHAR recycling equipment 4100 000 0 c by November 15,2024 for a small enterprise 15, 2024 Construction of a Completed, production premise Economi preparing October 9 Naryn MIN-BULAK and acquisition of 6525 000 7775 000 c documents for 30,2024 equipment for Naryn payment handicrafts Completed, Purchase of mill and Economi preparing October 10 AK-TAL wheat cleaning 350 000 0 c documents for 30,2024 machine payment Ak-Talaa Completed, KYZYL- Economi Purchase of grain preparing October 11 690 000 0 BELES c cleaner BIM documents for 30,2024 payment 20 Purchase of agricultural ONBIR- Economi machinery: seeders, October 12 Chuy Chuy 1680 000 1680 000 0 Fully completed ZHYLGA c mineral fertilizer 30,2024 spreader, front loader, front bucket Annex 5: Table 1. Results Framework Intermediate Intermediate result result Baseline End target (April 2024) (September 2024) Percentage of sampled beneficiaries (male/female) who report that community investments funded by the project reflect 99% 99% 80% women their priority needs 0 80% men 423,076 423,076 Number of persons with access to project- (204,100 (204,100 built infrastructure and services 0 women) women TBD Percentage of sampled SPs that result in infrastructure services of a satisfactory quality 0 80% Percentage of sampled beneficiaries who perceive their role in decision making has increased 0 99% 99% 70% Percentage of sampled female beneficiaries who perceive their role in 100% 100% decision-making has increased 0 70% Percentage of target communities that effectively complete the agreed community mobilization and social accountability process (percentage, 99% 99% custom) 0 80% Percentage of target AAs in which the 100% LSP is implemented 0 100% 100% Percentage of actually allocated vs. 89% planned funds for O&M 0 89% 70% Percentage of SP investments that were prioritized in women’s groups 0 97% 97% 50% Number of SPs completed 0 132 231 270 Percentage of sampled beneficiaries (male/female) who report improved 70% women access to infrastructure and services 0 98% 70% men AF VIP-3 AF VIP-3 465,243 491,866 beneficiaries beneficiaries Direct project beneficiaries 0 220,450 234,429 TBD 21 (47.3% (47.6% female) female) Percentage of sampled beneficiaries (male/female) who report that investments in social infrastructure support post- 97% 80% women COVID-19 needs 0 80% men Percentage of sampled beneficiaries (male/female) who report that investments 80% in livelihoods facilities supported the women/80% reestablishment of livelihoods 0% 91% men Percentage of relevant SPs that support CC adaptation or mitigation 0 85% 85% 80% Number of women able to earn additional income as a result of project investments 0 1400 2 243 1,600 Percentage of agreed data and information uploaded in the MIS according to procedures 0 100% 100% 80% 22 Annex 4: Women’s workshop, Kuibyshev village in Min-Bulak AA, Naryn rayon. Figure 1: Under construction April 27, 2024 Figure 2: Completed, as of September 20, 2024 23