International Business Center, 15th Floor, 107 B, Amir Timur Street, Tashkent 100084, Uzbekistan Tel: (99878) 120 24 00; Fax: (99878) 120 24 01 (02) November 18, 2024 Mr. Djamshid Kuchkarov #0683o/24 Deputy Prime Minister, Minister of Economy and Finance and WBG Governor Cabinet of Ministers Tashkent, REPUBLIC OF UZBEKISTAN Dear Mr. Kuchkarov, Re: Strengthening the Social Protection System Project (SSPSP) – Implementation Support Mission, October 7-11, 2024 Management Letter With this letter, I am sharing the Aide Memoire that summarizes the main findings and agreements on the next steps reached during the implementation support mission carried out during October 7-11, 2024. Below are several highlights of the mission that require your attention. While the project disbursement has slightly increased by 2.23 million during the last six months, there has been no progress on critical deadlines, agreed between the Bank and Ministry of Employment and Poverty Reduction (MEPR) teams for the successful completion of the project. The deadlines were: a. Launch of pending tenders for purchasing the equipment for Monocenters (US$8 million) by May 15, 2024. b. Finalization and adoption of the revised Subsidies Financial Manual (SFM) by the end of May 2024. c. PIU staff recruitment (M&E Specialist, Labor Specialist) by May 15, 2024. Additionally, several important technical assistance activities (including “Training of social workers staff of the National Agency of Social Protection (NASP) and Inclusion barriers assessment of professional education institutions (CQS/2-44) were cancelled. Consequently, the progress towards achieving the project development objective (PDO) and the overall implementation progress was downgraded to Moderately Unsatisfactory. Following your request for project funds cancellation (for $13 million USD) dated September 23, 2024, and follow-up communications with you during the Annual meetings, the final decision was made to close the project on the planned date (December 31, 2024), with the cancellation of the remaining funds (approx. US$20 million) and reprogramming of these resources to other projects in Uzbekistan. Therefore, we would appreciate receiving an updated request with the revised amount of $20 million USD by November 21, 2024, at the latest. To facilitate a smooth completion process, the Bank and the MERP has agreed on the following deadlines: • The MEPR will contribute to preparation of the final Implementation Completion Report (ICR) through: Mr. Djamshid Kuchkarov 2 November 18, 2024 • Preparation of a final project report by December 1, 2024, and • Support during the ICR mission in February - March 2025 • The MEPR/PIU will complete all the ongoing project activities (as listed in the AM) by December 31, 2024. • The PIU will complete all the ongoing tasks related to operating of PIU (PIU staff, individual consultants, PIU equipment) by December 31, 2024. All project goods, services must be received before the Project closing date to be eligible for the payment. Goods, services received after the Project closing date cannot be covered from the Project proceeds. The PIU shall document all incurred expenditures under the Project and refund back unused funds. No project related operating expenses including staff salary can be covered after the Project proceeds after the Closing date. The only exception is the final project audits, due to the nature of the audit, audit can be conducted after the application deadline and covered from the Project proceeds, however, it is highly recommended to start and finish the audits as early as possible after the Closing date and make all the audit related payments before the Application Deadline. We would appreciate the support of your office in monitoring the completion of the above activities by the agreed timelines and stand ready for further support from our side. Sincerely yours, Tatiana Proskuryakova Country Director for Central Asia Attachment: Aide memoire cc: Mr. Shukhrat Vafaev, Alternate WBG Governor Mr. Botir Zohidov, Minister of Employment and Poverty Reduction Mr. Mansurbek Olloyorov, Director, National Agency for Social Protection Mr. Ilkhom Norkulov, First Deputy Minister of Economy and Finance Mr. Jasur Karshibaev, Deputy Minister of Economy and Finance Mr. Shokhrukh Gulamov, Deputy Minister of Investments, Industry and Trade Mr. Shodbek Teshabaev, WBG Governor’s Office, Cabinet of Ministers Ms. Beatrice Maser, Executive Director, the World Bank Mr. Mariusz Krukowski, Alternate Executive Director, the World Bank Mr. Miroslav Delaporte, Sr. Advisor to Executive Director, the World Bank Mr. Makhamatutkir Uktamov, Advisor to Executive Director, the World Bank 2 Strengthening Social Protection System Project – Implementation Support Mission, October 7-11, 2024 Aide Memoire I. INTRODUCTION 1. On October 7-11, 2024, the Social Protection and Jobs (SPJ) team completed a mission to (i) conduct a critical review of the implementation progress towards achievement of the project development objectives and discuss closing arrangements with the Ministry of Employment and Poverty Reduction (MEPR) and Project Implementing Unit (PIU); ii) initiate preparation of the Implementation Completion and Results Report (ICR); and iii) conduct monitoring visits to selected regional monocenters and employment support centers (ESCs) supported by the Project. 2. The team would like to express its gratitude to the representatives of the MEPR, the National Agency for Social Protection (NASP), and the Agency for External Labor Migration (AELM) for the meetings and support in the organization of the mission. This Aide Memoire summarizes key findings and agreements reached during the mission, the immediate next steps, and agreed-upon actions. The conclusions of this Aide Memoire were discussed at a wrap-up meeting with the World Bank country management. A list of the counterparts met during the mission and the World Bank team is provided in Annex 1. The final version of the Aide Memoire was endorsed by the World Bank management. II. PROJECT DATA AND RATINGS Table 1: Key Project Data and Ratings Project Data USD (millions) Original Project Amount 50 Total Disbursement 29.54 Disbursement in FY 2.11 Closing Date December 31, 2024 Project Ratings: Last ISR Current PDO MS MU IP MS MU Component 1: Modernizing the Social Safety MS MS Net 1 Component 2: Improving the Effectiveness of MS MU Active Labor Market Programs Component 3: Project Monitoring and MS MU Management Project Management MS MU Procurement MS MS III. IMPLEMENTATION PROGRESS AND KEY FINDINGS Overall Implementation Status 3. Since its launch, the project has disbursed 59 percent of the credit amount. US$ 2.23 million has been disbursed during the last six months, mainly due to the payments related to one large contract for purchasing monocenter equipment (RFB/2-15). 4. During the previous implementation support missions on April 15-26, 2024 and July 17- 19, 2024, the Bank and MEPR/PIU teams had agreed on critical deadlines necessary for the successful completion of the project in December 2024, including: a. Launch of pending tenders for purchasing the equipment for Monocenters (US$8 million) by May 15, 2024. b. Finalization and adoption of the revised Subsidies Financial Manual (SFM) by the end of May 2024. c. PIU staff recruitment (M&E Specialist, Labor Specialist) by May 15, 2024. The deadlines have been continuously revised per the request of the MEPR/PIU. However, to date, there has been no progress on these critical steps. As a result, at least one out of six PDO indicators – on long-term employment of the subsidy recipients is unlikely to be achieved by the project closing. With this regard, the progress towards achieving the project development objective (PDO) and the overall implementation progress are downgraded to Moderately Unsatisfactory. 5. Project Closing and Cancellation of Funds. On September 23, 2024, the Bank received a letter from the MoEF (#0043o/24) requesting the cancellation of US$13 million of the remaining unused and unwithdrawn funds. In parallel, a new MEPR Minister, Mr. Botir Zohidov, was appointed on September 23 and requested a meeting with the Bank mission team to clarify on the MEPR’s view regarding the proposed cancellation and to discuss the possibility of and options for the project extension. 6. At the meeting on October 11, 2024 the MEPR Minister expressed his preliminary interest in extending the project and utilizing all the remaining funds under the extended project. However, due to the ongoing reorganization in the Ministry, he was not ready to confirm if the current project activities were in line with the new priorities of the MEPR and if the required changes in the project implementation and management would be taken if the project is extended. The team was informed that according to the Presidential Decree of the Republic of Uzbekistan, No.PP-347 dated October 4, 2024, the "Ishga Marhamat" 2 monocenters are to be rebranded as "Professional Skills Development Centers" that would require revision of their functions. The teams agreed to have a follow-up meeting with the Minister within 10 days to update him on the project activities completed and the challenges to project implementation and to discuss the way forward. However, the meeting did not materialize as the Bank team kept experiencing difficulties in follow-up communication with the MEPR and PIU. 7. On October 25, 2024, the Bank management team met with the DM of MOEF, Mr. Karshibaev during the Annual meetings, and the final decision was made to close the project on the planned date (December 31, 2024), with the cancellation of the remaining funds (approx. US$20 million). 8. The Bank and MEPR/PIU teams will work on technical project restructuring to allow for prompt reallocation of the funds to new or existing priorities. The Bank team will continue to monitor the project implementation closely via email communication and virtual meetings with the PIU to ensure the successful completion of the activities that have already been launched. The ICR mission is preliminarily scheduled for February-March 2025. Component 1 9. The project has made progress with promoting online submission of LIFA applications by women activists in makhallas including through the use of the tablets purchased by the project for the Single Register data entry (RFB/1-1R). This resulted in surpassing of the PDO indicator 1.1 Share of received applications for social benefits through makhalla activists (85.1 percent against the target of 40 percent as of October 1, 2024). 10. There has been limited progress with the remaining consultancies under Component 1. The task on the review of the Low-Income Families Allowance (LIFA) targeting formula (IC 1-55) is on track. It is expected to be completed by the end of the project with full disbursement of allocated funds. Two other consultancies submitted via STEP are agreed to be cancelled. The task on the “Training of social workers staff of the National Agency of Social Protection (NASP)” (CQS/1-56 – US$50,000) has been re-announced because only two firms applied in the previous round. 11. The Bank team agreed with the NASP to closely monitor the remaining activities to ensure their successful completion by the end of the project. 12. The remaining funds under Component 1 (namely the activities 1.1.8.; 1.2.2.; 1.2.3.; 1.2.7.; 1.2.6.1) in the total amount of US$ 741,361 are proposed for cancellation. Component 2 1 Please see Annex 2 for more details 3 13. Since the tenders for purchasing equipment for mono-centers in the total amount of US$ 10,064,000 (namely the remaining part of the activity 2.1.2.) and subsidies (i) to reimbursing to employers the vocational and advanced training fees of new hires; (ii) to cover part of the costs to start up a new business for vulnerable unemployed registered with ESC; (iii) wage subsidies for employers who hire socially vulnerable jobseekers above the minimum reserved number of positions (quota); (iv) to ensure employment in the field of home-based work; (v to business entities that provide employment for owners of household plots of land; (vi) for employing persons with disabilities in the total amount of US$3,322,612 have not progressed, the teams have agreed to cancel these activities. 14. On monocenters, the PIU had planned to run five big tenders with a total budget of US$ 9,700,000. However, this did not materialize as the internal decision had not been made on the technical specifications of the equipment and the list of monocenters that would receive it. The tender documentation that should be submitted to the Industry Council has not been finalized. With the new Minister in charge and in the context of reorganization/rebranding of monocenters, the completion of these activities in the foreseeable future does not seem realistic. 15. On the subsidies, the PIU had to prepare the amended SFM to include 3 new subsidies: (a) Subsidies for home-based work employment to cover costs for equipment and materials to facilitate home-based work; (b) Subsidies directed to owners of household plots of land for agricultural production on such plot to cover assets needed for such production; and (c) Wage subsidies to employers who hire job seekers with disabilities. However, the MEPR did not come up with the final decision on the list of subsidies, and the new Minister has not confirmed the subsidies as a priority. 16. The nationwide entrepreneurial skills training programs for recipients of microloans to socially vulnerable people (SSPS/QCBS/2-3/) are on track, with the training sessions for CY 2022-24 fully completed. According to the interim report by SABR, 15,206 participants completed this training. Out of them, 7454 (49 percent) participants started a business after the training (that includes officially registered entrepreneurs and self- employed). As of October 1, 2024, 33 percent of participants have a business that is operational within 12 months after completing training, which is higher than the 30 percent baseline indicator. Monitoring results indicate an increase in graduates' motivation to create microbusinesses, leading to higher incomes and, as a result, improved financial well-being for the trainees and their families. 22 percent of graduates who started a business did so using their own funds and without receiving any external resources (such as subsidies, microloans, etc.). The final report by SABR is pending approval by the MEPR. 17. The remaining consultancy task on Inclusion barriers assessment of professional education institutions (CQS/2-44) is to be canceled (after retendering) per the MEPR's request. The team is exploring the option of having this task supported by the Korean-World Bank Partnership Facility (KWPF). 4 18. The remaining funds under Component 2 (especially the activities 2.1.2; 2.1.4.; 2.1.10.; 2.2.2.; 2.2.3.; 2.2.7.; 2.2.8.; 2.2.9.; 2.4.3.; 2.4.7 and partly 2.2.1.2) in the total amount of US$ 18,902,290 are proposed for cancellation. Component 3 19. PIU is dysfunctional due to unfilled key positions, including the Head of PIU, Monitoring Specialist, and Labor Market Specialist. The Bank team has been repeatedly informed by PIU that the hiring of the staff is in progress. However, the positions are still vacant, affecting the unit's operational capacity. As a result, the PIU is unable to accomplish critical functions for the project implementation, and the Bank team has experienced difficulties in communication with the Ministry and PIU. Moreover, timely and quality data collection for project monitoring remains a major issue. 20. There has been modest progress with the consultancies under Component 3. Annual Social Audit (CQS 3.23) is on track and will be completed by the end of the project. The Beneficiary Assessment (BA1) (CQS/2-22) has started. However, its implementation is being delayed due to the more general issue of receiving the relevant data from MEPR. The rest of the tasks have been canceled due to the MEPR's lack of commitment. For instance, the ToR for the final project evaluation (designed with significant Bank support) was cleared by the Bank on July 29, 2024. However, it has not been submitted via STEP. 21. The remaining funds under Component 3 (especially the activities 3.1.1.; 3.1.6.; 3.1.9.; and partly 3.2.1.3) in the total amount of US$ 480,222 are proposed for cancellation. Meeting with the Agency for Labor Migration 22. The WB team met with Mr. Bekhzod Musaev, who was recently appointed as the Head of the newly created Agency for Labor Migration of Uzbekistan. He presented the future plans of the Agency and new policy priorities in the area of labor migration. According to the Presidential Resolution, the Government of Uzbekistan aims to improve the regulation of labor migration abroad by strengthening the institutional framework, protecting citizens' rights, and encouraging private sector involvement. Key policy measures will include: • Launching a platform to publicize foreign job opportunities and facilitate job matching for Uzbek workers. • Offering interest-free microloans to cover migration costs for organized labor migration. • Establishing adaptation centers for migrant workers, providing training in foreign languages and professional skills, and issuing internationally recognized certifications. • Enhancing the role of private recruitment agencies and reducing licensing costs. • Developing a support program for migrants from 2024-2026, including measures for skill development and legal assistance. 2 Please see Annex 3 for more details 3 Please see Annex 3 for more details 5 • Simplifying visa procedures and negotiating international agreements to support labor migration. • Expanding cooperation with diaspora organizations to support Uzbek workers abroad, providing social and legal assistance, and promoting better working conditions. The team introduced potential cooperation instruments, including lending, technical assistance (TA), and reimbursable advisory services (RAS). Both parties expressed interest in potential collaboration and agreed to explore further opportunities. Field visit to monocenters 23. On October 7, 2024, the team visited the "Ishga Marhamat" monocenter in Fergana city, where they engaged with management and students. The visit included an overview of the short-term (3-month) vocational programs offered, such as cooking, sewing, crane operation, auto mechanics, solar panel installation, and supplementary foreign language courses. The team observed classrooms and learned that new equipment, funded by the World Bank, had been received, enhancing training quality. The monocenter's management expressed their gratitude for this support, highlighting the positive impact the equipment has had on the program provision. Discussions with students revealed varied post- graduation aspirations, with some planning to pursue work abroad while others expressed interest in establishing small businesses locally. Later, the team visited the Employment Support Center (ESC) in Fergana to familiarize themselves with its services and daily operations, the typology of beneficiaries served, coordination mechanisms between the ESCs and monocenters in referring the beneficiaries applied and arranging guaranteed job placement with the employers partnering with the ESC. The following day, on October 8, 2024, the team visited the "Ishga Marhamat" monocenter in Namangan city, conducting similar discussions with management and students regarding program delivery and future career pathways. Management at this center also expressed strong appreciation for the World Bank's support in procuring essential training equipment. Procurement 24. The recent assessment of the risks is "Substantial" and the performance is "Moderately satisfactory". The project shall be closed on December 31, 2024 with USD29.54mln. or 59.09% of the total project amount disbursed. There are number of ongoing contracts which shall be completed, goods are delivered duly by the Project Closing date. Otherwise, the remaining, belated deliveries or services may not be financed out the project. As has been reported earlier, the project has improved it’s procurement performance recently but, as we learned recently, the Project Coordinator is under investigation for "abuse of power". The Bank project team was advised that we would be provided with a communication describing the details of the issue here, but nothing was submitted by the PIU yet. The Team/TTL will report the matter to the INT based on the facts learned during the mission. Financial management (FM). 25. The Project financial management arrangements are reviewed regularly by the Bank FM team. FM arrangements, including accounting, budgeting, planning, reporting, internal 6 controls, external audits, funds flow, organization, and staffing, are found to be Satisfactory in the Project Implementation Unit (PIU). Currently, the PIU is duly staffed. Periodic unaudited interim financial reports are submitted on time and found to be acceptable. However, audited project financial statements along with management letter for the year ended December 31, 2023, were submitted to the Bank with a delay of 3 months. The financial statements were reviewed and found to be acceptable. No internal control weaknesses nor accounting errors were noted and communicated by the auditor in the management letter. It must be noted that PIU should ensure full compliance with the fiduciary covenants i.e., reports should be submitted before agreed deadlines. The Bank financial management team shall conduct full FM supervision of the Project in November 2024, and the supervision findings will be communicated separately. Financial management and Disbursement at Project Closing 26. All project goods and services must be received before the Project closing date to be eligible for the payment. Goods and services received after the Project closing date cannot be covered by the Project proceeds. The PIU shall document all incurred expenditures under the Project and refund back unused funds. No project-related operating expenses, including staff salary, can be covered after the Project proceeds after the Closing date. The only exception is the final project audits, due to the nature of the audit, the audit can be conducted after the application deadline and covered from the Project proceeds. However, it is highly recommended to start and finish the audits as early as possible after the Closing date and make all the audit related payments before the Application Deadline. E&S Risk Management 27. The following Social Standards ESS 1,2 and 10 are relevant for this project and the risk rating remains Moderate. Social Development Specialist positions are currently in place with responsibilities spelled out in the POM. The project requires targeted approaches to capture the views of diverse groups, particularly vulnerable groups. Earlier efforts on the GM include dissemination of the existing channels (i.e., telegram-bot, project’s website, phone number) as well as direct reporting to PIU social specialist during field supervisions. The project’s website did not receive any submissions for reporting period. Project team has distributed the project brochures to all 55 mono-centers (each at least 10 pieces). PIU has disclosed project’s ESF documents throughout the new website of the Implementing Agency only in English language, mission recommends disclosing these instruments in Uzbek and Russian pages of the official webpage until 30 of November 2024. As projects official closing date is end of December 2024, Bank recommends project social development specialist to work on E&S performance completion report including the Status of Social Risk Management Implementation Performance, GRM implementation, Stakeholder engagement (public consultations), and key E&S implementation issues and send to Bank review until 15 of December 2024. 28. The Environmental performance rating is Satisfactory. Currently there is no significant environmental risks and impacts. Under Component 1 of the project 10,000 tablets are purchased to distribute to women activists in mahallas, empowering them to participate 7 actively in the project by submitting applications to the unified registry. This step not only enhances community involvement but also leverages technology for efficient project management. In a significant move towards enhancing educational and practical skills, equipment for mono-centers has been procured. These centers focus on 22 specialized training areas, with the World Bank financing 12 of these, including innovative fields like electric vehicle repair and solar panel installation. This aspect of the project underscores a commitment to developing skills in emerging and environmentally sustainable technologies. In terms of health and safety, all specialists at the mono centers have undergone training in occupational safety and health. This proactive approach to safety is diligently recorded in log-books, ensuring accountability and continuous learning. An essential part of the project's environmental responsibility is the effective management of waste, particularly concerning the disposal of packaging materials from the purchased equipment. The mono-centers have established active contracts for the disposal of such waste. Additionally, there's a recommendation to include specific clauses in equipment handover acts/documents, emphasizing the commitment to the proper disposal of packaging materials. This recommendation underlines the project's dedication to environmental sustainability and responsible waste management practices. 29. Based on the above project progress, the project’s environmental and social performance Moderately Satisfactory (MS). III. NEXT STEPS AND AGREED ACTIONS The Bank and the Government agreed on the following next steps: Next steps Responsible Target date Issuance of revised cancellation letter MoEF November 22, 2024 ICR mission WB February-March 2025 Final Borrower’s report on project completion PIU/MEPR December 1, 2024 Completion of the task SSPS/IC/1-55 PIU December 31, 2024 Completion of the task CQS/2-2 PIU December 31, 2024 Completion of the task RFB/2-15 PIU December 31, 2024 Completion of the task QCBS/2-3 PIU December 31, 2024 Completion of the task CQS/3-4 PIU December 31, 2024 Completion of the task CQS/2-30 PIU December 31, 2024 Completion of the task CQS/3-23 PIU December 31, 2024 Completion of the task CQS/2-22 PIU December 31, 2024 Completion of the activity 3.2.2. Operating costs PIU December 31, 2024 (PIU staff, individual consults, PIU equipment) Disclose project’s ESF documents throughout PIU November 30, 2024 the new website of the Implementing Agency in local languages Provide E&S performance completion report PIU December 15, 2024 based on template shared by the WB E&S specialists, including the description of regular consultations held with clients, PAPs (if any), 8 and other stakeholders in accordance with the SEP 9 Status update for the next agreed actions according to the previous Implementation Support Mission conducted April 15 to 26, 2024. Next steps Responsible Target date Current status Launch of the tenders for purchasing the equipment PIU May 15, 2024 Not implemented Finalization and adoption of the revised Subsidies PIU by end Not implemented Financial Manual (subsidies sub-component) September covering subsidies to owners of household land plots 2024 for agricultural production by end of May and full disbursement of subsidies Revised POM (with a new section on monocenters) PIU/MEPR May 17, 2024 Revised POM was prepared by PIU and approved to be finalized by the Bank Meeting with the Ministry of Investment, Industry PIU/MEPR May 10, 2024 Meeting was conducted on July, 2024 and Trade (MIIT) to formally communicate current progress of implementation and further plans for AF and consult on the further process Meeting with the MOEF to formally communicate PIU/MEPR May 10, 2024 Meeting with MoEF was conducted during the current progress of implementation and further plans Annual Meetings for AF Contracting task on the assessment of the PIU/MEPR May 17, 2024 Not implemented monocenter inclusiveness Beneficiary Assessment contracted PIU May 10, 2024 Beneficiary Assessment Round 1 has started ToR for Impact evaluation of monocenter courses PIU May 15, 2024 Not implemented submitted to the Bank Draft ToR package for the development of PIU May 15, 2024 Not implemented occupational standards and training programs for monocenters is finalized Conducting ToT on employers outreach by the PIU/MEPR May 14-16, Not implemented Ernest &Young (contractor) 2024 PIU staff recruitment: M&E Specialist, Labor PIU/MEPR May 15, 2024 Not implemented Specialist 10 Updating the project results framework on a monthly PIU by end of Next update was provided during the mission basis by the project closing date, with the next May, 2024 update provided Acceleration of disbursements, targeting 70% of PIU/MEPR by end of Not implemented total credit disbursed and the remaining funds are September committed and planned for disbursement until the 2024 closing date. Under the Procurement of IT equipment and PIU/MEPR by July 17, software for main and backup Data Processing 2024 Centers of LMIS (SSPS/RFB/2-12/) the IT equipment delivery for backup Data Processing Centers of UNLS had been accepted based on the conclusion/recommendations from contracted consultant Revised AF proposal (5 pages concept document) PIU/MEPR May 10, 2024 Not implemented with estimated costing submitted to the Bank Draft feasibility study shared with the Bank PIU/MEPR August 30, Not implemented 2024 Disclose project’s ESF documents throughout the PIU May 15, 2024 Done only in English language. new website of the Implementing Agency in Uzbek New due date November 30, 2024 and Russian Taking into account that the smaller number of GRM PIU May 15, 2024 Implemented for entire project period, Bank recommends providing corporate sim cards with mobile telephone (with data plans) for Social Development Specialist and include these contact numbers in project passports (in A3 format paper) in all 55 mono- centers and project brochures. Regular consultations are held with clients, PAPs (if PIU Regularly Implemented, any), and other stakeholders in accordance with the details should be included in E&S performance SEP completion report until 15 of December 2024 Provide E&S performance report based on template PIU Regularly Report was provided before the mission in October shared by the WB E&S specialists 11 Annex 1 List of Officials Met and Composition of the World Bank Team Ministry of Employment of Poverty Reduction Mr. Botir Zokhidov, Minister of Employment of Poverty Reduction Mr. Bekhzod Dimetov, Head of Department (acting PIU coordinator) Mr. Valijon Valiev, Senior Specialist of the Investment Projects Coordination, Public Procurement and PPP Development Department Mr. Jahongir Razzokov, Head of Department of International Relations and Cooperation with International Organizations National Agency for Social Protection Mr. Rafayel Klivleyev, Head of the Social Payments Department Agency for Labor Migration Mr. Bekhzod Musaev, Head of the Agency for Labor Migration Mr. Jasur Gayratov, Head of Department on VET and Implementation of National Qualification System PIU Mr. Rustam Khodjaev, Procurement Specialist Mr. Farkhod Xabibullayev, Social protection specialist Mr. Zufar Musharrapov, Social Programs Specialist Mr. Olimjon Ubaydulaev, FM World Bank team Mr. Ivan Shulga, Senior Social Protection Specialist and Task Team Leader Ms. Marina Novikova, Senior Social Protection Economist and Task Team Leader Ms. Maria Ustinova, Social Protection Consultant Mr. Fasliddin Rakhimov, Senior Procurement Specialist Mr. Mamanbek Reimov, Social Development Specialist Mr. Djamshid Iriskulov, FM Consultant Ms. Inobat Allobergenova, Natural Resources Management Specialist Ms. Natalya Shermetova, Team Assistant 12 Annex 2 Strengthening the Social Protection System Project - Implementation Support Mission October 7-11, 2024 Schedule of Meetings Time Meeting Participants Place Monday, October 7, 2024 07:30 – 18:00 Field Visit, Day 1 Ivan Shulga, Fergana Visits to regional-level monocenter and Marina Novikova, employment support center in Fergana region Maria Ustinova, PIU Tuesday, October 8, 2024 07:30 – 18:00 Field Visit, Day 2 Ivan Shulga, Namagan Visits to district/regional level monocenter in Marina Novikova, Namangan region Maria Ustinova, PIU Wednesday, October 9, 2024 11:00 – 13:00 Meeting with the PIU Ivan Shulga, Marina WB Novikova, Maria Ustinova, Issues for discussion: PIU - Overall implementation progress and status of activities; - Achievement of the PDO, final results framework; - Implementation plan by the end of project; - Pending issues and decisions; - Project completion and preparation of the ICR 14:00 – 17:00 Meeting with PIU Ivan Shulga, Marina WB Novikova, Maria Ustinova, Issues for discussion: Fasliddin Rakhimov, - Fiduciary aspects (procurement, disbursement); Djamshid Iriskulov, - Social and environmental issues Mamanbek Reimov, 13 Time Meeting Participants Place Inobat Allobergenova, PIU Thursday, October 10, 2024 TBC Meeting with NASP Ivan Shulga, Marina NASP Novikova, Maria Ustinova - Status of project activities under Component 1; PIU - Pending issues and decisions Friday, October 11, 2024 12:30 – 13:30 Meeting with the Agency for external Ivan Shulga, Marina Agency for migration Novikova, Maria Ustinova, External Migration - Potential collaboration on migration PIU 15:00 – 16:00 Meeting wityh the Ministry of Employment Ivan Shulga, Marina MEPR and Poverty Reduction Novikova, Maria Ustinova, - Status of project implementation; PIU - Pending issues and decisions 11:30-13:00 Follow-up meeting with the PIU Ivan Shulga, Marina WB Novikova, Maria Ustinova, - Agreed actions for the AM PIU - ICR preparation 14 Annex 3 Strengthening the Social Protection System Project Calculation of unspent and saved funds within the project, including new proposed activities / packages - as of November, 2024 Component reference To be Total Disbursed Subcomponent PP PP Fact disbursed To be No. Activities Amount Amount Status reference Reference Amount Contracted by Dec. Canceled (USD) (04.11.2024) 31, 2024 Procurement of Tablet 1.1.9. RFB/1-1R Completed Computers 3,897,200 4,000,000 3,897,200 3,897,200 - - Surveys and communication campaigns for improvement 1.1.4. of awareness and targeting CQS/1-09 50,000 - - - 50,000 of social protection (beneficiary survey) Household visits of Modernizing the Social Safety Net 1.1.5. Syrdarya district social CQS/1-1 Completed 190,909 200,000 190,909 188,848 - 2,061 workers Subcomponent Data analysis (targeting 1.1.6. CQS/1-2 Completed 1.1. Enhancing assessment) and report 93,069 90,000 93,069 93,026 - 43 and Rolling Out IT trainings (cybersecurity, the Single protection of private Registry information, enterprise - 1.1.7. architecture, IT CQS/1-05 Completed 49,500 50,000 49,500 49,591 - 91 management, large databases, etc), certification, external audit Software and services on IT management (source control, crisis control, 1.1.8. antivirus software and other 233,722 - - - - - 233,722 cybersecurity, IT infrastructure monitoring, etc) Subcomponent Procurement of licenses and 1.2. Improving 1.2.2. software development for 150,600 - - - - - 150,600 the Effectiveness improvement of 15 of Social effectiveness of social Benefits allowances Transportation costs for data collecting field work of 1.2.3. social workers, necessary 100,000 - - - - - 100,000 for design of models and algorithms of E&F control Social protection consultancy (individual SSPS/IC/1- 1.2.5. Ongoing consultancy) - International 65,000 55 29,975 29,975 - 29,975 35,025 consultants Training women activists and district specialists of the family and women's committee to work with 1.2.7. socially unprotected 120,000 - - - - 120,000 segments of the population by entering data into the IS "Single Register" for receiving benefits Capacity building for personnel of social protection system through study tours, international 1.2.6. workshops and conferences SSPS/CQS/1- 50,000 - - - - 50,000 Capacity Building For 66 social workers of the National Agency for Social Protection (NASP) Qualitative evaluation of the 1.2.7. Administrative Proxy SSPS/CQS/1- - - - - - Means Test Pilot 56 Subtotal for Component 1 5,000,000 - 4,369,975 4,260,653 4,228,664 29,975 741,361 Re-engineering of business - 2.1.1. CQS/2-1 Completed Effectiveness of Active Labor processes, aiming for 100,000 100,000 100,000 100,236 - 236 I+B18:P36mproving the Subcomponent optimization and Market Programs 2.1. Enhance the 2.1.1. satisfaction of employers CQS/2-2 Ongoing 218,695 200,000 218,695 207,875 10,820 - Capacity of and jobseekers Employment Doubtful Support Centers 2.1.2. Equipment of RFB/2-2 3,766,965 6,200,000 3,739,866 3,739,866 - 27,099 utilization to Implement Job multifunctional center of Intermediation employment services "Ishga - Services 2.1.2. Markhamat" (Welcome to RFQ/2-6 Completed 43,041 80,000 43,041 43,260 - 219 Job) - 2.1.2. RFQ/2-7 Completed 91,624 90,000 91,624 92,008 - 384 16 - 2.1.2. RFQ/2-8 Completed 37,877 90,000 37,877 38,036 - 159 2.1.2. RFQ/2-9 Completed 87,070 90,000 87,070 86,635 - 435 2.1.2. RFB/2-6 Completed 2,095,720 2,000,000 2,030,904 2,030,904 - 64,816 2.1.2. RFB/2-7 Completed 487,134 600,000 487,134 487,052 - 82 2.1.2. RFB/2-13 Completed 1,171,194 1,500,000 1,171,194 1,171,194 - - 2.1.2. RFQ/2-13 Completed 75,935 100,000 75,935 74,939 - 996 - 2.1.2. RFQ/2-14 Completed 67,988 100,000 67,988 68,124 - 136 - 2.1.2. RFQ/2-15 Completed 73,037 100,000 73,037 73,191 - 154 2.1.2. RFB/2-14/1 Completed 262,550 230,000 262,550 262,550 - - 2.1.2. RFB/2-14/2 Completed 269,325 270,000 269,325 269,325 - - 2.1.2. RFB/2-14/3 Completed 513,375 500,000 513,375 513,375 - - 2.1.2. RFB/2-14/4 Completed 630,000 600,000 617,076 617,076 - 12,924 2.1.2. RFB/2-14/5 Completed 491,625 450,000 491,599 491,599 - 27 2.1.2. RFB/2-14/7 Completed 496,675 450,000 496,675 496,675 - - - 2.1.2. RFB/2-14/8 Completed 323,780 300,000 323,845 323,845 - 65 - 2.1.2. RFB/2-14/9 Completed 1,034,379 1,000,000 1,049,939 1,049,939 - 15,560 RFQ/2- - 2.1.2. Completed 81,073 14/6/1 82,000 81,073 81,246 - 173 RFQ/2- - 2.1.2. Completed 16,613 14/6/2 18,000 16,613 16,645 - 32 2.1.2. RFB/2-15 Ongoing 1,786,000 1,900,000 1,748,071 1,569,094 178,977 37,929 2.1.2. RFB/2-21 1,900,000 - - - 1,900,000 2.1.2. RFB/2-17 1,970,000 - - - - 1,970,000 2.1.2. RFB/2-18 1,980,000 - - - - 1,980,000 2.1.2. RFB/2-19 1,950,000 - - - - 1,950,000 2.1.2. RFB/2-20 1,900,000 - - - - 1,900,000 17 2.1.2. RFQ/2-16 64,000 - - - - 64,000 2.1.2. RFQ/2-17 100,000 - - - - 100,000 2.1.2. NEW 200,000 - - - - 200,000 Procurement of IT 2.1.3. equipment for 202 district RFB/2-3 Completed 2,070,349 2,000,000 2,070,349 2,024,625 - 45,724 ESC Regular training sessions for 2.1.4. RFB/2-4 the ESC staff 246,000 246,000 - - - 246,000 Capacity building for labor inspection on reducing E&F - 2.1.6. RFQ/2-1 Completed in awarding subsidies and 98,937 100,000 98,937 99,894 - 957 social allowances Enhance the Capacity of Ishga Markhamat (Welcome to Job) Multifunctional 2.1.7. CQS/2-20 Completed Centers to Plan and Deliver 124,460 125,000 124,460 123,767 - 693 Vocational Trainings for Socially Vulnerable People Expanding the capabilities of the multifunctional centers "Ishga Markhamat" 2.1.8. to conduct vocational DS 2-25 Completed 114,214 115,000 114,214 110,690 - 3,524 training for socially vulnerable groups of the population Procurement of additional 2.1.9. equipment for the RFB/2-10 Completed 298,793 500,000 298,793 298,793 - - situational center ESC Inclusion barriers 2.1.10. assessment of professional CQS/2-44 100,000 100,000 - 100,000 education institutions Reimbursing to employers the vocational and advanced 2.2.1. training fees of new hires Subsidy 1,760,000 947,498 - 812,502 who are recruited based on Subcomponent the referrals of ESCs 2.2. Financial Subsidies to cover part of Support to the costs to start up a new Promote business for vulnerable Employment unemployed registered with 2.2.2. Subsidy ESC, including licensing 550,000 544,712 - 5,288 and business registration cost, insurance policy for loan and training fees 18 Wage subsidies for employers who hire socially 2.2.3. vulnerable jobseekers above Subsidy 287,000 185,178 - 101,822 the minimum reserved number of positions (quota) Subsidies to ensure 2.2.7. employment in the field of Subsidy 1,020,000 - 1,020,000 home-based work Subsidies to business entities that provide 2.2.8. Subsidy employment for owners of 1,005,000 - 1,005,000 household plots of land Subsidies for employing 2.2.9. Subsidy persons with disabilities 378,000 - 378,000 Implementation of communication campaigns on raising awareness among Doubtful 2.2.4. vulnerable population on 150,000 150,000 93,184 - 56,816 utilization application and granting procedures of subsidies CQS/2-5R Implementation of 200,000 communication campaigns on raising awareness among Doubtful 2.2.5. employers on application 36,035 36,035 - - 36,035 utilization and granting procedures of subsidies Subcomponent 2.3. Entrepreneurial skills 2.3.1. QCBS/2-3 Ongoing Entrepreneurship training programs 1,703,230 2,000,000 1,603,230 1,445,717 157,513 100,000 Skills Training 2.4.2. RFB/2-12/1 Completed Procurement of IT 933,200 1,100,000 933,200 932,900 - 300 equipment Subcomponent 2.4.2. RFB/2-12/2 Completed 2,436,800 3,000,000 2,436,800 2,436,000 - 800 2.4. Develop and Licenses for user software Implement an 2.4.3. as database management, RFQ/2-12 Integrated Labor 100,000 100,000 - 100,000 web applications, etc Market Information Capacity building for IT - System (LMIS) 2.4.5. staff (trainings and tools for CQS/2-7 Completed 149,350 150,000 149,350 149,796 - 446 IT specialists) 2.4.7. Consulting services 4,700,000 - 4,700,000 Subtotal for Component 2 42,547,043 - 26,786,000 22,109,875 23,297,443 347,310 18,902,290 19 Training of ESC staff on 3.1.1. analysis of LMIS data and CQS/3-1 100,000 100,000 - 100,000 compilation of reports - 3.1.5. LCS/3-3 Completed 77,280 100,000 77,280 77,489 - 209 Finance audit of the project 3.1.5. CQS/3-4 Ongoing 42,000 42,000 41,200 20,621 20,600 779 Technical assessment of Subcomponent 3.1.6. CQS/2-9 component 2 150,000 100,000 - 150,000 3.1. Strengthening 3.1.7. CQS/2-19 Completed 100,000 100,000 100,000 100,000 - - Labor Market Results evaluation of - Interventions 3.1.7. subsidies and CQS/2-32 Completed 48,210 50,000 48,210 48,294 - 84 Monitoring and entrepreneurship trainings Project Monitoring and Management Evaluation 3.1.7. CQS/2-30 Ongoing 50,000 50,000 50,000 40,067 9,933 - Social Risk Management 3.1.8. CQS/3-23 Ongoing Audit 49,500 50,000 49,500 7,425 42,075 - Beneficiary assessment 3.1.9. CQS/2-22 Ongoing Round 1 100,000 95,324 95,324 14,298 81,026 4,676 Beneficiary assessment 3.1.9. CQS/2-33 Round 2 100,000 100,000 - 100,000 Doubtful 3.2.1. RFQ/3-4 3,331 15,000 3,331 1,665 - 1,666 utilization Operating costs (PIU staff, Doubtful 3.2.1. IC/3-16 individual consults, PIU 99,975 100,000 99,975 90,075 - 9,900 utilization Subcomponent equipment) 3.2. Project 3.2.1. RFQ/3-1 Management 48,043 100,000 48,043 48,017 - 26 3.2.1. IC/3-18 10,000 50,000 10,000 9,982 - 18 Operating costs (PIU staff, PIU Staff + 3.2.2. individual consults, PIU Ongoing 1,474,618 operating 1,261,297 1,261,169 100,000 113,449 equipment) Subtotal for Component 3 2,452,957 - 1,052,324 1,884,160 1,719,101 253,634 480,222 Total 50,000,000 - 32,208,299 28,254,688 29,245,209 630,919 20,123,873 20