FOR OFFICIAL USE ONLY Report No: PAD4667 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 35.4 MILLION (US$50 MILLION EQUIVALENT) TO THE UNITED NATIONS OFFICE FOR PROJECT SERVICES (FOR THE BENEFIT OF THE REPUBLIC OF YEMEN) FOR A YEMEN EMERGENCY LIFELINE CONNECTIVITY PROJECT DECEMBER 3, 2021 Transport Global Practice Middle East and North Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS Exchange Rate Effective October 31, 2021 Currency Unit = SDR SDR1.3995 = US$1 US$ = SDR0.70652404 FISCAL YEAR January 1 - December 31 Regional Vice President: Ferid Belhaj Country Director: Marina Wes Regional Director: Paul Noumba Um Practice Manager: Ibrahim Khalil Zaki Dajani Mesfin Wodajo Jijo, Abdulhakim Ali Ahmed Al-Aghbari, Task Team Leader(s): Jocelyne Jabbour ABBREVIATIONS AND ACRONYMS APA Alternate Procurement Arrangement BSI Beneficiary Satisfaction Index CBC Capacity Building Consultant CERC Contingency Emergency Response Component EIRR Economic Internal Rate of Return EOCC Economic Opportunity Cost of Capital ESF Environmental and Social Framework ESMF Environmental and Social Management Framework ESRS Environmental and Social Review Summary ESSO Environmental and Social Standards Officer FCV Fragile Conflict and Violence FMFA Financial Management Framework Agreement GBV Gender-Based Violence GCRB General Corporation for Roads and Bridges GHG Green House Gas Emission GIS Geographic Information system GP Global Practice GM Grievance Mechanism GRS Grievance Redress Services IDA International Development Association IDP Internally Displaced People IUFR Interim Unaudited Financial Report ILO International Labor Organization IU Implementation Unit LMP Labor Management Plan LPG Liquified Petroleum Gas ME Micro Enterprise MENA Middle East and North Africa MFB Minimum Food Basket MIRR Modified Internal Rate of Return MIS Management Information System MPWH Ministry of Public Works and Highways MSME Micro, Small and Medium Enterprises M&E Monitoring and Evaluation ND-GAIN Notre Dame Global Adaptation Initiative O&M Operations and Maintenance PDO Project Development Objective PHSP Project Health and Safety Plan PMU Project Management Unit POM Project Operation Manual PP Procurement Plan PPSD Project Procurement Strategy Document PSI Project Safety Impact RAP Rural Access Program RAR Rural Access Roads RECA Remaining Engaged in Conflict Allocation RED Road Economic Decision RELP Restoring Education and Learning Project RF Resettlement Framework RMF Road Maintenance Fund ROW Right of Way SDR Social Discount Rate SEA Sexual Exploitation and Abuse SEP Stakeholders Engagement Plan SMEPS Small and Microenterprises Promotion Services SMP Security Management Plan STEP Systematic Tracking of Exchanges in Procurement TPMA Third Party Monitoring Agent UNOPS United Nations Office for Project Services VAR Village Access Roads WBG World Bank Group YER Yemeni Riyal YIUSEP Yemen Integrated Urban Services Emergency Project The World Bank Emergency Lifeline Connectivity Project (P177053) TABLE OF CONTENTS DATASHEET .................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 i. Sectoral Context ......................................................................................................... 9 ii. Institutional context ................................................................................................. 12 C. Relevance to Higher Level Objectives............................................................................................. 12 II. PROJECT DESCRIPTION.................................................................................................. 13 A. Project Development Objective ..................................................................................................... 13 B. Project Components ....................................................................................................................... 17 C. Project Beneficiaries ....................................................................................................................... 21 D. Results Chain .................................................................................................................................. 22 E. Rationale for Bank Involvement and Role of Partners ................................................................... 22 F. Lessons Learned and Reflected in the Project Design .................................................................... 23 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 24 A. Institutional and Implementation Arrangements .......................................................................... 24 B. Results Monitoring and Evaluation Arrangements......................................................................... 26 C. Sustainability................................................................................................................................... 27 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 28 A. Technical, Economic and Financial Analysis ................................................................................... 28 Economic Analysis Including Road Safety Benefits. .......................................................................... 28 B. Fiduciary.......................................................................................................................................... 31 C. Legal Operational Policies ............................................................................................................... 34 D. Environmental and Social ............................................................................................................... 34 E. Waiver of Specific Operational Policies .......................................................................................... 37 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 37 VI. KEY RISKS ..................................................................................................................... 37 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 41 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 48 ANNEX 2: Rural Roads Selection and Prioritization Methodology ................................... 52 ANNEX 3: Gender Action Plan ....................................................................................... 55 The World Bank Emergency Lifeline Connectivity Project (P177053) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Yemen, Republic of Emergency Lifeline Connectivity Project Environmental and Social Risk Project ID Financing Instrument Process Classification Urgent Need or Investment Project P177053 High Capacity Constraints Financing (FCC) Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [✓] Responding to Natural or Man-made Disaster [✓] Alternate Procurement Arrangements (APA) [ ] Hands-on Enhanced Implementation Support (HEIS) Expected Approval Date Expected Closing Date 04-Jan-2022 30-Nov-2025 Bank/IFC Collaboration No Proposed Development Objective(s) To provide climate resilient road access and employment and entrepreneurship opportunities to food insecure rural population of Yemen Page 1 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Components Component Name Cost (US$, millions) Component 1: Rural and Village Access Roads Improvement and Maintenance 39,000,000.00 Component 2: Strengthening Management Capacity of Transport Sector Public 3,030,000.00 Institutions, and Sector Studies and Preparatory Activities Component 3: Project Implementation and Monitoring Support, 7,970,000.00 Component 4: Contingent Emergency Response 0.00 Organizations Borrower: Republic of Yemen Implementing Agency: United Nations Office for Project Services (UNOPS) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 50.00 Total Financing 50.00 of which IBRD/IDA 50.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 50.00 IDA Grant 50.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Yemen, Republic of 0.00 50.00 0.00 50.00 National PBA 0.00 50.00 0.00 50.00 Page 2 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Total 0.00 50.00 0.00 50.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2022 2023 2024 2025 2026 Annual 20.00 15.00 10.00 5.00 0.00 Cumulative 20.00 35.00 45.00 50.00 50.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Agriculture and Food, Fragile, Conflict & Violence, Jobs, Transport Poverty and Equity Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ High 2. Macroeconomic ⚫ Substantial 3. Sector Strategies and Policies ⚫ Substantial 4. Technical Design of Project or Program ⚫ High 5. Institutional Capacity for Implementation and Sustainability ⚫ High 6. Fiduciary ⚫ Substantial 7. Environment and Social ⚫ High 8. Stakeholders ⚫ Substantial 9. Other ⚫ Substantial 10. Overall ⚫ High Page 3 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [✓] Yes [ ] No Have these been approved by Bank management? [✓] Yes [ ] No Is approval for any policy waiver sought from the Board? [✓] Yes [ ] No Page 4 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Cultural Heritage Not Currently Relevant Financial Intermediaries Not Currently Relevant NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). Legal Covenants Sections and Description (Section I.A.2 of Schedule 2) - PMU established and thereafter maintained by not later than a month of Effective Date (EF) Sections and Description (Section I.A.3 of Schedule 2) - UNOPS to engage RAP (and other local institutions if needed with the agreement of the World Bank) to facilitate the implementation of Parts 1, 2 and 3 of the Project and build skills and capacity Sections and Description (Section I.C of Schedule 2) - Project Operations Manual (POM) adopted and thereafter implemented by not later than a month after EF Page 5 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Sections and Description (Section I.D of Schedule 2) - TPMA hired and thereafter maintained not that than 3 months after EF Sections and Description (Section I.E of Schedule 2) - Annual Investment Plans and Budget prepared not later than 4 months after Effectiveness Date and thereafter on an annual basis Conditions Type Financing source Description Effectiveness IBRD/IDA Evidence satisfactory to the Association has been furnished that the Recipient has prepared LMP, SMP, SEA-SH/GBV Action Plan, ESMF and RPF, and disclosed when appropriate, under terms satisfactory to the Association Type Financing source Description Effectiveness IBRD/IDA Evidence satisfactory to the Association has been furnished that the Recipient has prepared and submitted a Procurement Plan for the Project satisfactory to the Association Type Financing source Description Disbursement IBRD/IDA Under Category (3), for Emergency Expenditures, under Part 3 of the Project, the Association is satisfied, and notified the Recipient of its satisfaction, that all of the following conditions have been met in respect of said activities: (i) the Recipient has determined that an Eligible Crisis or Emergency has occurred, and has furnished to the Association a request to withdraw Financing amounts under Category 3; and (B) the Association has agreed with such determination, accepted said request and notified the Recipient thereof; and; (ii) the Recipient has adopted the CERC Manual and Emergency Action Plan, in form and substance acceptable to the Association; Page 6 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) I. STRATEGIC CONTEXT A. Country Context 1. The ongoing conflict in Yemen continues to exacerbate the humanitarian crisis. Since March 2015, Yemen has descended into a full-fledged military conflict focused on its major population centers where half of the country’s 29.8 million people reside, resulting in significant loss of life, internal displacement, infrastructure destruction, and disruptions in service delivery throughout key sectors. The conflict caused an estimated 233,000 deaths, of which 131,000 from indirect causes, such as lack of food, health services and infrastructure.1 By 2021, more than four million civilians have been displaced due to the conflict,2 including at least 223,000 in December 2020 when the fighting in Marib Governorate intensified.3 2. Yemen scores low across most economic and social indicators and is characterized by high levels of poverty and inequality. Yemen’s economy has contracted by more than 40 percent since the 2015 conflict, which has left 40 percent of Yemeni households without a regular source of income and drove poverty levels to above 80 percent. Severe shortages of food and fuel, combined with the currency devaluation and high commodity prices, left many poor Yemenis unprotected. Critical lifeline infrastructure sustained heavy damages rendering access to basic needs very difficult. This resulted in increased transport cost, leading to an increase in food and essential commodity prices. Women are more severely affected than men4 due to a lack of job opportunities. Female-headed households are particularly vulnerable to food insecurity. In most local marketplaces, rural women are mostly excluded from commercial interactions. Mobility restrictions (for security and cultural reasons) are frequently an impediment to women and girls accessing humanitarian distribution locations. 3. The COVID-19 pandemic has further overloaded the existing precarious health care. Five years of war has shattered the country's health system, leaving it incapable of coping with the pandemic. The virus is reported to have infected 9,987 and caused the death of 1,946 people.5 By now, one percent of Yemen’s population have received the COVID-19 vaccine. At that current rate of about 4,500 doses administered each day, it will take a further 3.5 years to administer enough doses for another 10 percent of the population. 4. Emergency access to basic needs is critical in the fight against the looming famine. More than 16 million people,6 mostly women and children are food insecure, of which about 15 million are suffering from acute hunger.7 Low food availability is caused by a combination of high dependency on food imports, high food prices, and considerably reduced household income. Owing to the conflict, key lifeline roads, rural and interurban alike, have deteriorated severely, limiting the ability to deploy humanitarian aid to those who need it most, constraining the flow of basic supplies, and thus limiting access to income opportunities. Only 47 percent8 of Yemen’s rural households live within two kilometers of all-weather 1 https://gho.unocha.org/yemen 2 https://www.iom.int/news/yemen-millions-displaced-persons-and-migrants-desperate-aid-amid-funding-shortfalls 3 https://www.internal-displacement.org/countries/yemen 4 CEN, Yemen FY20-FY21 5 https://coronavirus.jhu.edu/region/yemen 6 https://www.wfp.org/countries/yemen 7 https://www.wfp.org/countries/yemen 9 Sustainable Mobility for All (SUM4ALL) Page 7 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) roads, a much lower percentage compared to the regional average of 68 percent.9 Compounded by low purchasing power of households to buy daily food needs, people’s lack of access pushes millions, mostly women and children, into famine.10 5. Key drivers of high food prices in Yemen include restricted access (both economic and physical), low productivity (due to shortage of agricultural inputs), economic shocks (such as global fuel price), conflict-related damages to the agriculture sector, natural disasters, COVID-19 impact and overall commodity price increases, weakening of the Yemeni Riyal (YER), and declining international assistance. Since 2015, the prices of food and life support commodities increased by more than 200 percent. In some governorates, the cost of Minimum Food Basket (MFB) increased by 125 percent compared to pre-crisis level. Food prices are estimated to have increased by nearly 62 percent between May and December 2020 in the South, outpacing inflation rate by 45 percent. According to data from the Food and Agriculture Organization (FAO), as of September 2021, the average price of the MFB in Internationally Recognized Government controlled regions is YER 85,919 in the northern governates YER 47,575 and the national MFB price is YER 66,807.11 During the past one and half years, COVID-19 movement restrictions, intermittent blockage of fuel imports, and the resulting disruptions of logistics and supplies contributed further to soaring food prices. The weakening of the YER has led to a rise in basic food prices and intensified the suffering of the rural population, especially women. 6. The rural poor, especially women and children, disproportionately suffer from lack of access to food. Women are taking added responsibilities to maintain the livelihoods of their families . Already faced with many challenges before the war, the lack of access to basic services and income opportunities, the on-going conflict, and the internal and external migration of rural male labor in search of income have forced rural women to take on more and more responsibilities. Yemen’s rural communities have become heavily reliant on women for agricultural works, maintaining farms and managing other demanding roles under harsh conditions such as fetching water and collecting firewood. There is ample evidence that better rural roads alleviate the workload of women and girls. If a road is available, small trucks equipped with water tanks are often used to fetch water from the riverbeds (wadis), and women do not have to spend several hours every day to carry water themselves, which is one of their household responsibilities among many others. Also, the use of liquified petroleum gas (LPG) cylinders becomes commonplace if a village has an access road. Villages with road access generally have higher school enrollment rates, especially for girls. In general, most rural roads benefit women at least to the same degree as men, and in some cases more. 7. Overall, the labor force participation rate for females between the ages of 15-64 is 6.29 percent12 compared to 72.2 percent for males in the same age range. Women’s access to economic opportunities in Yemen is very limited, with a female labor force participation rate of only 6.2 percent compared to 72 percent for men13 The effects of the conflict have disproportionately impacted women’s access to and participation in the economy, with job losses at an average of 28 percent among women compared to 11 percent among men.14 While the percentage of self-employed females (61.57 percent) exceeds that of self-employed males (54.57 percent), men occupy the vast share of employer and employee positions, 9 Sustainable Mobility for All (SUM4ALL) 10 https://www.wfp.org/countries/yemen 11 FAO-Food Security and Nutrition Information and EWS-Yemen. MARKET INFORMATION SYTEM. September 30, 2021. 12 International Labor Organization, 2019. 13 World Development Indicators, 2019. 14 Al Ammar et al., 2019. Page 8 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) and a higher number of women (60.65 percent) are represented in vulnerable work as own-account workers and contributing family workers.15 According to the latest International Labor Organization (ILO) statistics on the overall share of women in managerial positions, Yemen is, with four percent, the lowest in the Middle East and North Africa (MENA) region (e.g., compared to 22 percent for Iraq and 18 percent for Palestine). Firms owned by women in Yemen are even lower, representing less than one percent (World Bank Enterprise survey, 2014). B. Sectoral and Institutional Context i. Sectoral Context 8. Transport and logistic costs play a crucial role in the price of food to the consumer. In environments such as rural villages where food items are transported in small volumes, the share of transport and distribution cost is about 13 percent of the food price (Figure 1).16 This is a statistic from middle income countries where transport infrastructure is well developed, and logistics are efficient with high economy of scale. In Yemen, the state of the road network is largely in poor condition resulting in increased transport and logistics costs. Figure 1: Transport and Logistic Cost with Food Prices Source: World Bank Report No, 87933 Logistics, Transport and Food Prices in Latin America and the Caribbean 9. Road transport cost increase is strongly related to damages due to conflict and sustained deterioration due to neglect of maintenance. The transport price (per ton-km) decreases with the increase in percentage of paved road (Krygsman, 2017). This is highly pronounced in rural roads where trips are short, and the market is less competitive. The rural poor pay exorbitantly high fares to travel from the village to the nearest district centers in Yemen. These can be as high as US$30 for a single trip with the only available four wheel-drive (4WD) trucks, which can revolve better around the dilapidated road accesses. 15 International Labor Organization, 2019. 16 Logistics, Transport and Food Prices in LAC: Policy Guidance in Improving Efficiency and Reducing Costs, World Bank, Report No, 87933 Page 9 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 10. Improved rural access roads provided multiple socio-economic benefits to the rural population connected - decreased price of basic commodities (such as rice, wheat, flour, cooking oil and LPG cylinder) in the villages by up to 20 percent, decreased passenger transport costs to economic and social centers by up to 33 percent, and decreased travel time 65-70 percent17. Yet only 47 percent18 of Yemen’s rural households are fortunate enough to live within 2 kilometers of all-weather roads and enjoy these benefits, a far lower indicator even by the regional standard, 68 percent on the average.19 11. Isolated rural regions with no access to all-weather roads are experiencing a greater increase in food prices than urban areas. High domestic transport cost was fueled by: (i) the absence of all-weather road access in rural areas, and (ii) the continuous deterioration of key lifeline road corridors such as Hodeida-Sanaa, Aden-Sanaa, Aden-Taiz and Marib-Safar. Despite being a domestically produced commodity, LPG is more expensive than it should be, particularly in rural markets20 due to the total damage to Marib-Safar road, the only LPG supply corridor to the whole country. Similarly, the transport cost of 50 kg of wheat from Aden and Hodeida ports to Sanaa city spiked more than 300 percent (YER 188 to YER 550) between 2015 and 2018, challenging the effort to reaching out to as many food-insecure populations. 12. Poor rural road access constrained agricultural productivity, suppressed opportunities to diversify activities and increase household income, letting farmers to lean more on imports. Besides the lack of inputs and machineries and occurrence of natural calamities, low agricultural productivity is also attributed to absence of all-weather road access for agricultural inputs, aggregation, storage, sorting, processing, and marketing centers. Farmers are thereby not only dis-incentivized to produce more, but also not encouraged to diversify to high value perishable crops, in view of the risk of spoilage in transit. 13. Yemen fares low on road safety performance: Data from 2013 indicates mortality caused by road traffic injury (per 100,000 people) is 21.5,21 about 70 percent of road traffic causalities are people less 17 Study on the Impact of Rural Access Roads Improvement, April 2009 - Yemen Rural Access Program 18 https://www.sum4all.org/gra-tool/country-performance/country/yem (accessed on 8/26/2021) 19 Sustainable Mobility for All (SUM4ALL) 20 FAO of the UN - Monthly Market Monitoring Bulletin 21 SUM4ALL Page 10 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) than 30 years old.22 Although no recent reliable data is available, the situation is expected to have worsened since the conflict broke in 2015 as road conditions deteriorated, governance compromised (weak enforcement of traffic rules and vehicles safety inspections), vehicle conditions degraded mirroring the overall economic situations and a dysfunctional post trauma management system. 14. Women’s mobility is greatly constrained in Yemen’s rural areas. Data collected for a 2011 study on rural transport in Yemen indicated that men and women move differently: they move as much but while women remain mainly in the confines of the village, men tend to go further and use motorized means of transport more. Walking is the main transport mode in rural Yemen for both men and women. Motorized means of transport are used by men for transport outside the village to the market or the district center. Women use them on exceptional basis, and mainly to reach health care facilities or in case of health emergencies. Pick-up trucks are the preferred, most used, most available, and most convenient means of motorized transport in rural Yemen. However, this mean is not socially acceptable for women, who prefer to use passenger cars. Transport tariffs are similar for men and women. However, transport costs are 50 percent higher for women who usually need special seating conditions and are accompanied by a ‘mahram.’23 However, because women do not have control over the household resources, their ability to pay for transport is also lower.24 15. Inadequate accessibility is even more difficult for girls and women. In many rural areas, due to the conflict, the water supply system has been shut down because of the fuel crisis and has limited the availability of trucked waters. The price of trucked water reached YER 15,000, on average, which has forced rural women to walk long distances in search of clean drinking water under harsh conditions. Moreover, the rural poor are often required to walk long distances to reach education and health facilities. This impacts girls from rural households disproportionately because it is socially not acceptable for girls to walk long distances alone to get health care or attend school. 16. Climate change poses a significant threat to Yemen’s development overall - and particularly across the transport sector. Yemen is the 22nd most vulnerable country and the 14th least ready country to adapt in the Notre Dame Global Adaptation Initiative (ND-GAIN) index (2019),25 indicating extreme vulnerability and low readiness to adapt to climate change. Recurrent flooding events such as the one during April through August 2020, extensively damaged roads and bridges and physically cut off communities from food aid centers, markets, health care, and schools in several governorates. 17. Methods and standards of roads construction in Yemen have not been keeping pace with growing traffic load and with changing climate patterns. Historically, due to topography and economic factors, non-motorized (walk or bicycle) transport has been prevalent in Yemen. Rural areas in Yemen typically have gravel or dirt roads. Country territory has high to medium risk of landslides and high risk of floods.26 Rainfall pattern, terrain slope, geology, soil, land cover changes, are contributing factors. It costs more to build a road, especially safe and resilient road, in this environment. Heavier transportation such as cars are causing faster degradation of roads. Increasing volatility of weather and heavy rainfall are superimposing on this process, intensifying the pressure on existing roads and magnifying the negative 22 Pattern of road traffic injuries in Yemen: a hospital-based study (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6057599/ ) accessed on 08/27/2021 23 An adult, male family member considered safe for a woman or a girl to be accompanied by 24 Gender and Transport in the Middle East and North Africa Region: Case studies from the West Bank and Yemen. 2011. Transport and Energy Unit. Middle East and North Africa Region. World Bank. 25 ND-Gain https://gain.nd.edu/our-work/country-index/rankings/ 26 https://www.thinkhazard.org/en/report/269-republic-of-yemen/LS Page 11 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) effects. Floods and landslides make sections of rural gravel roads temporarily unusable for motorized vehicles, and these events are likely to become more frequent due to climate change. When a rural road is destroyed or flooded, residents of neighboring villages become disconnected from district centers and deprived of essential services: healthcare, food distribution centers, and schools. It takes on average several days to a week until the road connection is restored. During this time, people must walk or use non-motorized transport to reach district centers and markets. Such trips are both physically straining and could be dangerous in the areas with landslides. Weak individuals from vulnerable population groups may find it difficult or impossible to complete such trips. Residents of rural areas in Yemen are highly and regularly dependent on resources and services provided in the district centers. They are unable, due to lack of financial means, to accumulate sufficient supplies at home, in the village. When people are disconnected from district centers, they cannot get food. Inability to get timely medical help in villages due to interrupted road connectivity could lead to deaths otherwise preventable. 18. To reduce vulnerability of rural population in Yemen to climate change, heavy rains, floods, and landslides, quality and resilience of rural roads should improve. This project will support rehabilitating/rebuilding roads to higher standard of quality, appropriate to address the climate challenge. The direct outcome of this effort will reduce the number of days with interrupted road connection and improve access of rural residents to essential resources, business, and employment in district centers. ii. Institutional context 19. The sectoral institutions have strengthened in the past decades. The road network is developed and managed by the Ministry of Public Works and Highways (MPWH) and its agencies including the General Corporation of Roads and Bridges (GCRB), the Rural Access Program (RAP) and the Road Maintenance Fund (RMF). Pre-conflict, the MPWH had taken firm control of the sector and the strategies and expenditure programs necessary for sector development. Institutions and agencies in the public sector had evolved as well, pragmatically adjusting to changing demands and situations. However, long-lasting conflict has taken a heavy toll on the human resources capacity to effectively manage the road network and projects’ implementation, as well as losing pace with modern management trends. 20. Private sector capacity in transport needs to be increased. The growth of the private sector had been in a healthy trajectory during the period up to 2015. A diverse set of private road construction, maintenance contractors, and engineering firms have emerged with a cadre of qualified road specialists with good understanding of the special physical and human constraints of Yemen, despite the need for more qualified and well-trained engineers in the transport sector. However, the private sector has not matured to a level enough to mobilizing finance to the road sector, nor has there been a legal and regulatory environment conducive enough to attract private capital in the sector. It is necessary to explore avenues through which private capital could be mobilized to rural transport services, rural transport logistics, etc. while supporting government to set up/strengthen the regulatory and legal frameworks. C. Relevance to Higher Level Objectives 21. World Bank Group’s (WBG) strategic goals: The proposed Project is aligned with the WBG twin goals of ending extreme poverty and boosting shared prosperity in a sustainable manner. Provision of all- weather roads access to essential services and job opportunities will improve income, hence living conditions of the poorest rural communities sustainably. Page 12 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 22. MENA Regional Strategy: The Project contributes to the WBG Middle East and North Africa (MENA) enlarged strategy pillar on recovery and reconstruction through its focus on rehabilitation of lifeline rural access roads and their maintenance through private sector participation. 23. Yemen Country Engagement Note (CEN) 2020-21: The operation is also consistent and builds on both objectives of the CEN While emergency road maintenance ensures unimpeded access to basic services, it also creates the much-needed employment and entrepreneurship skills for the rural poor. 24. WBG MENA Infrastructure Strategy: The Project also responds to the WBG MENA Infrastructure green, inclusive, and sustainable growth Strategy, as well as the Green, Resilient and Inclusive Development approach by increasing efficiency of the use of local resources and reducing travel time thereby reducing CO2 emissions, building better resilient infrastructures and institutional capacity to respond to disasters and ensuring inclusiveness by targeting the most vulnerable to benefit from the project. 25. Remaining Engaged in Conflict (RECA). The project satisfies the criteria for providing International Development Association (IDA) resources to third parties in RECA countries and its criteria for working with UN agencies in conflict situations. The project demonstrates value-added of IDA financing with activities and outcomes consistent with IDA’s development mandate, attention to rebuilding national and/or local systems, and to sustainability. 26. The proposed project aligns with the WBG COVID-19 Crisis Response Approach Paper (‘Approach Paper’), Pillar 3 - Ensuring Sustainable Business Growth and Job Creation, which is the main thrust of Component 1 and, to some extent, Component 2; through the creation and nurturing of microenterprises to carry out road maintenance through a labor-intensive approach to maximize the number of jobs available by the project to the most vulnerable rural poor. II. PROJECT DESCRIPTION A. Project Development Objective PDO Statement The proposed project development objectives are to provide climate resilient road access and employment and entrepreneurship opportunities to food insecure rural pupulation of Yemen. PDO Level Indicators (i) Number of populations with all-weather road access in the targeted rural communities (number- female/male). (ii) Reduced number of days of climate-induced travel interruptions along project roads per year (number) (iii) Reduced vehicular travel time to the nearest center for humanitarian food aid center, social services including education, health and community centers (Percent) (iv) Number of labor-days generated through direct employment by the Project (number- female/male/ female headed household). Page 13 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Description 27. The project seeks to contribute toward addressing road access to food and other humanitarian needs, and employment, whilst laying the foundation to (i) build resilience to climate change induced vulnerabilities, (ii) reduce gender gaps, and (iii) build the capacities of RAP and RMF through a dedicated capacity building program. 28. The project is informed by the conflict context in which it takes place. The project will be implemented during the conflict, and as it involves rehabilitation of lifeline corridors and rural access roads, numerous risks are considered. The project's implementation strategy will thus carefully balance a series of significant considerations, guided by informed contextual analysis and local political economy dynamics. The programming will be conflict-sensitive in every step. In some cases, bridges were deliberately destroyed, and roads were blocked as part of the defense strategies of the warring parties or for taxation purposes. In other cases, local communities in conflict areas or the proximity of hostilities might resist such interventions, believing improved access might increase insecurity and expose communities to violent groups. Therefore, to comply with the ‘do-no-harm’ rule, the project will use a range of fragility, conflict, and violence context-related assessments and tools to contextualize project design during road selection/prioritization. This might be coupled with a range of analyses on FCV, socioeconomic, feasibility, sustainability, and other subjective indicators and the impacts of conflict and transport infrastructure on local communities. The project will also account for the threats posed using mines and improvised explosive devices. 29. One constraint to food security in rural villages will be addressed through the provision of improved road access for isolated villages and farmers who otherwise are unable to market their produce with competitive prices due to lack of all-weather roads. Besides, some households would have the opportunity to benefit from direct employment on the project to increase their income and address their food needs. While road access improvements under the project enable food aid to reach more needy people in a shorter time, reduced transport cost passed on to food prices will improve the purchasing power of the vulnerable population. 30. Project focuses on addressing unemployment. Maintenance of main and rural access roads would be executed through a labor-intensive approach with a view to maximize employment of the local people. A microenterprise (ME) approach initially introduced in Latin America with the help of the WBG, has been found to be the best way to create or revive local contracting industries, leading to job creation and poverty reduction, and help improve the relationship between the state and citizens, which usually results in increased socio-political stability. The project will be heavy on training of the local people on both technical (road maintenance) and managerial (bidding, contract management, and financing) aspects of the project. 31. The Project would target the poor and food insecure rural population. Given the limited financial resources, the targeted beneficiaries are physically isolated rural populations who have been denied access to income opportunities and humanitarian support, thereby suffering from inflated costs of transport and essential commodities. To maximize the benefits for the targeted population, selection of road links and associated facilities such as bus stops, service centers, markets and storage/aggregate centers, and formation of microenterprises would be in close consultation with the beneficiaries and relevant stakeholders. Very poor and female-headed households may be prioritized in the selection of labor to address gender disparity and income inequality. Page 14 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 32. Building the capacities of the road agencies is crucial for sustainability: The project will formulate a program of capacity building to enhance the capacities of the two road agencies - RAP and RMF with the aim to preparing them to efficiently manage the network in the medium to longer term. Further, RAP will provide project implementation support for tasks that will be agreed between UNOPS and the World Bank based on meeting pre-set triggers defined in the capacity building program. 33. The proposed operation cuts across multiple sectors: agriculture, jobs, climate change, and transport, and envisages strong collaboration among the relevant global practices. There will be strong collaboration with the Agriculture Global Practice (GP) in food security; that as much as addressing constraints of food availability is vital, it is important to tackle the constraints of physical access to food sources (markets, storages, aid distribution centers) through improving transport connectivity. It will be crucial to map out the food aid and agriculture-market logistic network jointly with the Agriculture GP to identify gaps and prioritize the required interventions under the project. To better understand the elements of food and other agricultural commodity costs, as well as their relationship with logistic costs, a joint study is being launched with the Agriculture GP to better inform the design of future projects and interventions. Working with the team on the Global Theme on Jobs would improve the design of the employment creation scheme, to better targeting of beneficiaries, organizing them in microenterprises and impart critical entrepreneurial skills to enhance their employability even after the project. The design of resilient rural infrastructures to withstand extreme climate events, building institutional capacity to predict and smartly respond would necessitate working closely with the Climate Change GP. The project will also conduct analytics on decarbonization of the transport system through the promotion of non- motorized transport, incentivizing the private sector to invest in public transport, adoption of cleaner technologies in infrastructure development, operation and maintenance, and improved asset management that integrates adaptation and mitigation strategies throughout the life cycle of the assets. 34. The project will demonstrate strong synergy with and a multiplier effect on other World Bank operations in Yemen. Improved accessibility to health centers, markets and schools will only be possible through providing reliable road connections to these facilities. The Yemen Restoring Education and Learning Project (RELP) (P175036) that aims to maintain access to basic education and to improve conditions for learning. The project outcomes will be strongly impacted by the rehabilitation of rural roads linking the RELP beneficiary rural villages to the schools. Improved road access to schools attracts affordable public transport service-providers including school buses, which encourages more children specifically girl’s enrolment to the nearest district school system. Innovative safety design features included in the road designs such as protected pedestrian crossings, speed bumps, and adequate warning signs in populated areas and especially near schools enhance student’s safety in their daily commute to and from school. The project will thus not only reduce the travel time but also ensure safer access to schools, multiplying the effect of the RELP. The synergies between this Emergency Lifeline Connectivity Project (ELCP) and parallel operations will consolidate the efforts to tackle the ongoing food security and health crises. The reduced travel time and costs to district centers imply an enhanced accessibility to local markets, which directly link to the development objective of the Yemen Food Security Response and Resilience Project (P176129) that seeks to improve the availability of and access to food and nutritious diets for targeted households, and to enhance Yemen's capacity to respond to food insecurity. Furthermore, these rehabilitated roads will improve access of farmlands and fisheries to markets. The complementarity of the two operations will improve access to food sources, hence contribute to food security of the beneficiary communities. It is also important to note that the rehabilitation of rural roads under ELCP will pave the way to the use of alternative means of transport, mainly buses which represent Page 15 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) a cheaper and higher-capacity alternative. Furthermore, the improved and more resilient access to health facilities will contribute to facilitating the provision of basic health and essential nutrition services aligning with the development objectives of the Yemen Emergency Health and Nutrition Project (P161809). The nuances of enhancing complementarity between the operations will be clearer during implementation when more geospatial information for each subproject under the various operations is made available and task teams have better opportunities to work together. 35. Mobilizing other donors’ financing leveraging Bank’s limited resources: The operation will appeal to donors interested in providing support to address food insecurity through improving rural access and creating employment opportunities. This requires a multi sectoral approach and will likely incentivize other donor partners to rally behind the project in their areas of interest. The project will thus be used as a platform for donors to scale up through parallel financing to respond to the national accessibility and efficient mobility for people and goods in rural Yemen. Other than scaling up investments, such collaboration in parallel financing by other donor partners will foster dialogue on strategic sector issues and shared objectives. Saudi Development and Reconstruction Program for Yemen, the Kuwait Fund for Arab Economic Development, the Arab Fund for Economic and social Development, and the Islamic Bank for Development have shown early interest in collaborating and discussions are ongoing. 36. Road safety will be integrated in the project design. This includes adoption of road safety audits of road designs, to ensure the design integrates the safety of road users not only motorists but more importantly vulnerable road users such as two wheelers, pedestrians, and passengers. Community led crowdsourcing accident data collection system would be piloted in the beneficiary villages introducing simple smartphone applications that enable bystanders to report accidents in real time through easy steps. The project would tap resources from Global Road Safety Facility and others to assess drivers of low road safety performance in Yemen and the findings will inform the formulation of a national road safety strategy and indicative investment plan. 37. Project interventions will be climate informed/integrated. Improvisation of local marginal materials through mechanical and chemical stabilization would be utilized to the extent feasible, to reduce high energy intensive production of materials, combined labor intensive (low energy demand) works mainly on maintenance, and to some extent on rehabilitation works. As for adaptation, measures such as the use of special species plants and locally available construction materials will be used for slope protection against intensive rain-induced landslides and road closures. The asset management system will be upgraded to include integrate climate change mitigation and adaption dimensions across the whole life cycle of the assets. 38. The Project will promote gender equality by supporting equal rights to jobs and access to markets and services. Better rural roads will benefit females disproportionately because of their improved access to markets and thus water and LPG cylinders instead of having to collect firewood. The roads that will be rehabilitated will link villages to health clinics and schools, so that women and girls will benefit from better access. Further, the project will identify transport patterns needs and constraints of women and men in rural areas by using surveys and focus groups. It will provide support for women’s participation in microenterprises for road rehabilitation and maintenance, including training for women and men on business management and road rehabilitation, and explore opportunities for increasing the density of rural markets by fostering local women’s trade organizations and cooperatives. The business management training will provide opportunities for women to build skills in running and managing operations of their enterprises. Finally, the project will provide technical assistance to RAP and the RMF to establish social/gender positions within agency staffing and incorporate a gender sensitive approach in monitoring Page 16 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) and evaluation systems and procedural manuals. As part of the project’s processes, female liaison officers will be hired to guarantee efficient communication and discussions among hard-to-reach women in rural communities and to aid the Project's broader public outreach and engagement efforts. Female liaison officers will be responsible for not only communicating about opportunities and benefits of the project but can also provide insight into what types of positions women are likely to take on in the project works, based on their targeted discussions with communities (See Annex 3). B. Project Components 39. Component 1: Rural and Village Access Roads Improvement and Maintenance (US$39.00 million) ▪ Component 1.A: Rehabilitation of Lifeline Rural Access Roads (US$32.50 million). This component seeks to improve the resilience of the targeted rural roads to climate change, the road network that sustains rural population’s access to markets, social services, and connectivity. The focus is on achieving safe and reliable flow of goods and passengers. The proposed upgrading and rehabilitation interventions would include (a) upgrading the pavement surface to asphalt standards; (b) spot improvement along selected road sections; and (c) construction of new, or rehabilitation of existing drainage structures (i.e.: stone-masonry and reinforced concrete culverts, protection works, rip-rap, stone-paving of ditches and shoulders) utilizing locally available construction materials to maximize job creation, improve sustainability and minimize life-cycle maintenance costs. This component will finance the following: (i) rural access road upgrading (150km) and spot improvement; (ii) procurement/installation of bailey bridges, and (iii) studies, designs, production of tender documents and independent supervision of the civil works. Activities under this component will adopt climate resilient and less carbon-intensive design and construction approaches including bioengineering for slope stabilization, utilization of locally available climate-friendly natural stones, sand and aggregates for side lopes, stone culverts, as well as planting trees along the roads as a carbon sink. ▪ Component 1.B: Road Maintenance through private sector participation and supply chain enhancement (US$6.50 million). This component will support road maintenance. Road maintenance is necessary to ensure sustainability through work that will take place on roads and to ensure they remain strong, safe, and efficient. Road maintenance will take many forms, from pothole repair to crack sealing, but the overarching aim is to keep road users safe, manage traffic and maintain upkeep. This might involve patching (filling potholes or excavated areas in the pavement), shoulder reshaping (necessary when road shoulders are eroded and surface deformed), grass cutting along shoulders and side drains, minor drainage repairs such as sealing of cracked mortar joints, culvert and side drain cleaning, removal of logs, etc. Local micro, small and medium enterprises (MSMEs) will be employed to undertake road maintenance, thus increasing economic opportunities for local communities. The project encourages the use of locally produced construction materials to maximize the benefits of the local private industry. The maintenance of 60km village access roads (VAR) and 150km rural roads will be performed by local MSMEs and will benefit from an ecosystem of supply chain providers and construction sector-specific services. MSMEs will be provided opportunities to participate in road maintenance in transparent and equitable manner. Many of these economic actors exist but need capacity and financial support in order to sustain themselves, reach quality and service standards that would allow them to access the construction or maintenance opportunities, or to participate actively in Page 17 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) the associated supply chains. It is foreseen that the project will, overtime, use the services of 20 MSMEs for road maintenance, thus providing at least 1000 income opportunities to local communities in which construction or maintenance contracts will be offered. To support such private sector participation, UNOPS will 1) mobilize consultancy services for studies, preparation of training modules, designs, production of tender documents and independent supervision linked to the civil works (US$0.5 million) and 2) mobilize the services of local implementing agency, Small and Microenterprises Promotion Services (SMEPS), specialized in private sector and entrepreneurship development, providing support to MSME’s and road maintenance (US$6.0 million). SMEPS will perform a series of activities to build the capacity of qualifying MSMEs (those participating in construction contracts and those not direct contractors of civil works but nonetheless participating to the wider construction- and road-related supply chains) and support them in accessing financing from micro finance institutions or other sources to enable them to finance their equipment upgrading. This includes: ▪ MSME strengthening services, such as training in business management, entrepreneurship, business quality standards, project management, and accessing finance through the local commercial finance market. ▪ MSME technical training on rural road maintenance: road maintenance techniques, quality control, maintenance pricing and tendering, contract management and project financial management. This will be performed with technical partners, such as the General Union for Yemeni Contractors. ▪ Administrative and regulatory support to MSMEs to help them participate. There is no specific law or regulation governing the formation and operation of microenterprises in Yemen, but the MPWH provides them licenses to take up public works below a certain threshold. In addition, the entities are required to possess Tax Card issued by the income tax authority against registration with the authority, Social security card for the workers, classification by MOPWH, usually 5th class or below. As part of the support to MSMEs, SMEPS will advise on how the businesses can be established and can operate, including their legal rights and obligations as well as their governance requirements. This will be performed with technical partners, such as the relevant MOPWH department. ▪ Internship schemes to promote vocational/on the job training and employment. UNOPS and/or SMEPS will support internships for female university students in road maintenance. This will be performed with local educational partners and relevant business associations. Page 18 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Figure 3: Map of rural roads to be rehabilitated by the project 40. Component 2: Strengthening Management Capacity of Transport Sector Public Institutions (US$ 3.03 million). Building on the recent assessment of Yemen’s local institutions to support their transition to national project implementation, this component will finance: (i) strengthen project management capacities of the RMF and RAP through a program of capacity building provided by a consulting firm, and for RAP to provide implementation support to the Project on certain tasks based on meeting triggers set in the capacity building program as will be agreed between UNOPS and the World Bank, with the aim to preparing them to efficiently manage the network in the medium to longer-term; (ii) support for the RAP to revive its Management Information System (MIS); and (iii) support RMF to reactivate its Road Asset Management System and tools, strengthen RAP’s and RMF’s capacity to predict, respond and design resilient roads infrastructure to extreme climate events such as floods, to assess vulnerability of infrastructure assets and prepare and implement resilient investment plans. This will be done through a technical assistance consultancy including targeted training, as well as equipment and knowledge acquisition. To ensure the long-term sustainability of project investments, adaptation measures to climate change impacts, such as more frequent extreme heat, drought, and extreme precipitation/flooding events, which are likely to take place in Yemen, would be mainstreamed into infrastructure design, Page 19 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) management, and maintenance. This component will also finance various studies and analytical works that will inform and underpin future sector investments, and a beneficiary satisfaction survey. 41. Component 3: Project Implementation and Monitoring Support (US$7.97 million). This component will support project management as well as monitoring and evaluation (M&E) to ensure that the Project is successfully and efficiently implemented. The component will finance: (i) UNOPS’ general management support, i.e.: indirect costs and direct project management and oversight costs; (ii) project monitoring and evaluation activities; and (iii) the Third-Party Monitoring Agent (TPMA). 42. Component 4: Contingent Emergency Response (US$0 million; to be capitalized in case of emergency). The objective of this component is to provide immediate response to an eligible crisis or emergency following the procedures governed by paragraph 12, Section III of the Bank Policy, Investment Project Financing. There is a possibility that, during project implementation, a natural disaster, epidemic or another emergency may occur, which would cause a major adverse economic and/or social impact. In anticipation of such an event, the Contingent Emergency Response Component (CERC) allows the implementing agency to receive support by reallocating funds from other project components or serving as a conduit to process additional financing from other funding sources for eligible emergencies to mitigate, respond to and recover from the potential harmful consequences arising from the emergency. Disbursements under this subcomponent will be subject to the declaration of emergency by Yemen, the international community, or the UN. Table 1 - Project Cost and Financing Project Components Project cost IDA (Million Financing US$) (Million US$) Component 1: Rural and Village Access Roads Improvement and 39.00 39.00 Maintenance 1.A. Rehabilitation of Lifeline Rural Access Roads 32.50 32.50 1.A.1 Rehabilitation of Rural Access roads (150km) and spot 31.00 31.00 improvements 1.A.2 Bailey bridges as temporary structures 1.00 1.00 1.A.3 Design, Tender Document Preparation and Supervision 0.50 0.50 1.B Road Maintenance through private sector participation and supply 6.50 6.50 chain enhancement 1.B.1 Strengthening Microenterprises 0.10 0.10 1.B.2 Training Microenterprises 0.10 0.10 1.B.3 ME-based Rural Access Road Maintenance 4.00 4.00 1.B.4 ME-based Village Access Road Maintenance 1.80 1.80 1.B.5 Design, Tender Document Preparation and Supervision 0.50 0.50 Component 2: Strengthening Management Capacity of Transport Sector 3.03 3.03 Public Institutions, Studies and Preparatory Activities 2.A. Strengthening project planning and implementation capacities of the 0.50 0.50 RMF and RAP 2.B. Reactivate RMF’s Road Asset Management System 1.00 1.00 2.C. Strengthening RAP’s MIS capacity 0.50 0.50 3.B. Beneficiary Satisfaction Survey 0.09 0.09 Page 20 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 3.D. Studies and preparatory activities 0.94 0.94 Component 3: Project Implementation and Monitoring Support 7.97 7.97 3.A. UNOPS’ general management support 7.43 7.43 3.A.1. Project Staff & Personnel 1.87 1.87 3.A.2. General Operational Expenses 1.94 1.94 3.A.3. Recipient Indirect Costs (equivalent to ~3%) 1.46 1.46 3.A.4. Project Technical Support 2.16 2.16 3.B. Third Party Monitoring Agent and Audit (TPMA) 0.54 0.54 Component 4: Contingent Emergency Response 0.00 0.00 TOTAL 50.00 50.00 C. Project Beneficiaries 43. Beneficiaries include physically isolated rural population who have been denied access to income opportunities, food, and humanitarian support, thereby suffering from lack of access to food and essential commodities. The project beneficiaries will be: (a) rural poor village populations connected by project roads, a large fraction of whom are women living in areas which currently suffer from a lack of access to food, humanitarian support, facilities and economic developmental options (b) women and children in rural areas, through reductions in transport and time and costs needed to meet basic human needs, such as food, motherhood and childhood clinics, and accessing education and health facilities; moreover, improved roads will facilitate the distribution of gas cylinders to remote areas, thereby reducing the time spent on, and demand for, environment-damaging collection of firewood, (c) rural shopkeepers and traders, through improved access to wholesalers, through more reliable transport and lower transport costs. It is to be noted that these short-haul carriers are already highly competitive; this makes it likely that transport savings will actually be passed on to the consumer, (d) road users and small transporters serving the rural areas, through improved travel conditions, time savings and reduced vehicle operating costs, (e) private sector contractors and consultants, who will benefit from business opportunities provided by the project, and project-sponsored capacity-building activities, and (f) the rural population at large, through better access to markets and services and lower transport costs. Selection criteria 44. The Rural Access Program was launched in 2001 with the goal to provide equitable all-weather road access to the rural Yemeni population. The program received strong support from the donor community including the World Bank. Given the huge demand for roads and limited resources available, the RAP, upon consultation with all stakeholders has developed a transparent multi-criteria selection and prioritization framework to develop the rural road network across Yemen. The framework has been applied to the national rural roads program, to all projects regardless of the source of financing, which provided donors the confidence to adopt it in their respective financing. The selection parameters include, level of accessibility, population, poverty, cost/benefit, per capita cost. The proposed project will consider additional dimensions such as vulnerability to climate change, food security, conflict (FCV), disadvantaged groups (IDPs, women, youth) to the framework and refine the currently prioritized list of sub projects. Special attention will be given to “do no harm” that improved roads will not be a platform for warring parties to fight on and affect the supposed beneficiary communities. The selection would therefore avoid subprojects from areas of active or potential conflict. The multiplier effect of other planned and ongoing Bank financed operations in the proposed project area will be factored in informing sub-project selection, Page 21 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) prioritization, and design. The project will benefit from the ongoing effort to develop a geospatial platform to synergize operations for a maximum impact on increasing food security, alleviating access constraints to basic services such as health, education, market and strengthen the agriculture-logistics-market value chain. D. Results Chain Figure 1 - Theory of Change E. Rationale for Bank Involvement and Role of Partners 45. The WBG will bring substantial value to the Project. It will be critical in ensuring: (i) the quality of the engineering design and physical works, (ii) the presence of a long-term management, operation, and maintenance system for the rural and village access roads, (iii) the MEs integration into Yemen's road sector strategy, (iv) the implementation of appropriate environmental and social risk management and safeguarding processes, and (v) the implementation of appropriate procurement and financial management procedures. 46. Experiences of the WBG and other international donors and organizations in FCV environment have shown that the improvement of roads condition through labor-intensive programs has significantly contributed to the youth not to opt to violent activities and thereby fostering peace within the target communities, strengthening social cohesion, improving community collaboration, and strengthening the trust between citizens and governments. Through the reduction of transport costs, the improvement of access to infrastructure and basic services, and the provision of labor and cash influx to the most disadvantaged and vulnerable (youth-at-risk, women, the poor, internally displaced persons, etc.), these Page 22 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) programs have substantially contributed to the reduction of social inequalities and isolation which are the root causes of conflicts and violence. 47. The WBG’s continued engagement through the conflict encourages other donors to follow. Yemen is reliant on a variety of donors; however, owing to the country’s overall political situation, some donors, who have been active before the conflict, have suspended their support. The Bank’s continued operation albeit in a different modality would encourage those donors to gradually return and build on the capacity created through Bank’s financed projects. F. Lessons Learned and Reflected in the Project Design 48. Design consciously, not incidentally, a capacity building program for local institutions: Reactivating the existing and developing new capacities of local institutions is critical to ensure a sustainable recovery of the sector. The proposed project will mobilize a technical assistant consultant, solely hired to identify institutional and project implementation gaps, design an intensive capacity building program financed by the project, and support national institutions to prepare them for implementation in the medium to long term 49. Labor intensive road maintenance through microenterprises is a pathway to promote entrepreneurship and ensure sustainability: The proposed project will create a platform for local laborers to form microenterprises which will be trained and supported to contractually engage in short-, medium- and long-term performance-based maintenance contracts on project roads. The MEs could then keep the entity to extend their experiences to upcoming similar road projects or public works even outside the road sector. Being part of the beneficiary communities served by the roads they maintain, MEs have a great sense of ownership for maintaining the asset not just as a source of livelihood but also a lifeline to their socio-economic needs. Experience in fragile and conflict-affected states shows, such schemes are likely to divert the susceptible youth from joining illicit activities for living, hence enhances social stability. 50. The industry capacity assessment is key to determine the size and method of contracting: Contracts will be structured to be in implementable sizes given the capacity of existing available private contractors and consultants in Yemen. An 18-month procurement plan and an Implementation Manual will be prepared by UNOPS on or about one month after the project effectiveness date. The market analysis will confirm that adequate construction capacity exists in the area willing and able to undertake road works under the contract sizes expected under the two works components and within the timeframe of Project implementation, and that also engineering firms are able and willing to undertake design services and on- site construction supervision. 51. Increased scope of Bank’s supervision missions – in person and virtual: Past experiences indicate the need to enhance ways of project monitoring including technologies to verify implementation of activities on the ground in the absence of Bank teams on the ground. A TPMA will be hired for the project by UNOPS. Frequent reverse supervision missions will also identify issues at early stages to address them adequately. 52. The Bank is well positioned in providing the necessary support in addressing disaster and climate- risk, exposure and vulnerability, climate change projections and the dynamics of environmental degradation. With regards to the rehabilitation of vulnerable and critical transport infrastructure, the Bank’s experience in other low income, low-capacity environments demonstrate: (i) regular maintenance is critical to sustainability of transport investments and is the most cost-effective investment in the Page 23 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) transport sector; and (ii) appropriate design, construction and rehabilitation standards are essential to reduce future maintenance liability. III. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements 53. The proposed Project is an emergency operation being processed under paragraph 3 of Bank Policy for “Development Cooperation and Fragility, Conflict and Violence” and paragraph 12 of the Investment Project Financing Policy and Directive (“Projects in Situations of Urgent Need of Assistance or Capacity Constraints”). Considering the emergency nature of the operation, UNOPS will receive the IDA grant for the benefit of the Republic of Yemen and will act as implementing agency of the project, while partnering with the RAP - World Bank’s experience in various countries has demonstrated that relying on existing local-level resilience and recovery mechanisms can support service delivery restoration, whilst offering a cost effective and efficient way to deliver services. In line with this principle, UNOPS will partner with RAP to get enhanced support to implement project activities. This arrangement maximizes development impact on the ground, whilst helping to preserve and build local institutional capacity, creating a platform for larger-scale reconstruction efforts in the future. 54. Given the country’s security situation, the proposed Project will be directly implemented by UNOPS in cooperation with RAP. UNOPS will: (a) take responsibility for project implementation; (b) monitor the project targets and results in coordination with the local partners; (c) handle relevant procurement, financial management, M&E, and disbursement management including the preparation of withdrawal applications under the project; (d) enter contractual arrangements with service providers and third-party monitors; and (e) ensure that all reporting requirements for the Bank are met per the Financing Agreement. UNOPS will decide on the appropriate procedures for selecting contractors, consultants, and implementation partner(s) in accordance with its own operational guidelines. 55. Besides its long experience working in FCV context globally, UNOPS has a strong presence in Yemen and the capacity to reach out to the most affected beneficiaries. With four years of experience working in Yemen, UNOPS has demonstrated strong capacity and readiness to implement investment projects in extremely challenging circumstances. UNOPS has preparedness and mobilization mechanisms in place, which enable optimal emergency procurement, and is well informed about the market response locally and internationally. To ensure implementation readiness, UNOPS will deploy an internationally experienced project manager who will oversee the day-to-day implementation of the project activities, and will be assisted by experienced engineers, and experts in procurement and financial management within its office in Sana’a. The team will be supported by experienced counterpart teams in its regional office in Amman. 56. UNOPS’s role as the recipient of the Bank funds for the benefit of the Republic of Yemen and alternative implementation agency on an exceptional basis is in line with the Financial Management Framework Agreement (FMFA) between the World Bank and UN agencies. The financial management arrangements will be governed by the FMFA, which provides for the use of the UN’s Financial Regulations. UNOPS will follow its own procurement procedures as Alternative Procurement Arrangements allowed by the World Bank’s Procurement Framework Policy, Section III.F. Page 24 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 57. UNOPS will implement the Project through its Yemen Country Office in Sana’a and the Operational Hub in Amman. A dedicated Project Management Unit (PMU) will be established to provide support in project management, technical aspects, procurement, financial management and financial sector aspects, communications, (M&E), social and environmental issues, logistics, administration, information technology (IT), and security will be handled by the Sana’a Office with close support on a day-to-day basis from Amman. UNOPS global staff will be drawn in on a need basis. Project oversight will come from UNOPS Regional Office and Operational Hub in Amman, as well as UNOPS headquarters in Copenhagen, Denmark. The core project management and implementation support team from UNOPS would include a project manager, an operations specialist, local engineers, IT and MIS Specialist, an environmental specialist, a social and communication specialist (with skills and experience in gender based violence (GBV) issues, gender mainstreaming in infrastructure projects), community mobilizer in small and medium enterprise centered schemes, an M&E specialist, two procurement specialists and an assistant, financial management specialist and an assistant, and an administrative assistant. 58. UNOPS Oversight. UNOPS’ regional office in Amman, Jordan has established capacity in the areas of finance, procurement, social and environmental issues human resources, IT, and security which will provide support and advice as needed. In addition, a Regional Oversight and Management Advisor oversees the operations in the region and provides management advice to the Regional Director. 59. UNOPS will partner with RAP to provide enhanced implementation support to the project: RAP will provide enhanced implementation support to the project based on its assessed capacity. A Capacity Building Consultant (CBC) will be hired by UNOPS to assess RAP’s initial capacity, identify needs, and prepare and implement a program of capacity building to RAP. As RAP’s capacity grows and meets certain triggers set in the capacity building program, the CBC will assess and recommend to UNOPS and World Bank’s considerations for increased level of implementation support by RAP. Tasks to be supported by RAP would be limited to coordinating with local stakeholders, preliminary assessment of bids, post qualification of bidders, possession of sites to contractors, construction quality oversight, monitoring construction schedules, reviewing change requests including designs and specifications, review of contractors claims and recommend to UNOPS, review of engineering designs, studies, technical reports. The final decisions on all these remain with UNOPS. UNOPS retains bid advertising, bid receipt, price evaluation, negotiations and award of contracts, issuing change orders, receiving interim/final payment certificates, certifying payments, singing off studies and reports. 60. World Bank implementation support missions (in person and virtual) and oversight. The World Bank task team, in close coordination with the Yemen Country Management Unit, will conduct scheduled implementation support missions through UNOPS in Amman for the Project. The World Bank team will closely coordinate with UNOPS, on regular basis, for the implementation and overall oversight of the Project, and will: (a) review technical and financial progress reports to assess achievement of the PDO and intermediate indicators; (b) provide technical support related to implementation, achievement of results, and capacity building; (c) ensure that adequate oversight mechanisms are in place; (d) discuss relevant risks and mitigation measures; and (e) conduct “reverse” implementation support mission with UNOPS regional office in Amman and its local partner(s). Additionally, regular virtual meetings will be conducted to coordinate project management. Bank supervision will be enhanced through a multipronged approach that enables it to verify outputs including: (i) engaging independent TPMA and (ii) deploying state of the art technologies to better monitor technical and fiduciary aspects of the project remotely; including the use of 360-degree geocoded video recording (VR), geocoded surface condition measurement, geocoded photos of Core tests, Field Sight monitoring platform being developed by UNOPS, etc. Project reports from Page 25 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) UNOPS and the TPMA would include geotagged visuals in the form of photographs, videos, and 3D images to demonstrate the changes before and after project interventions. B. Results Monitoring and Evaluation Arrangements 61. UNOPS will be responsible for results monitoring and will put in place an adequate system and procedures to ensure regular monitoring and reporting of project implementation and results. M&E would be through regular field visits to project sites, quality control, regular follow-up with local partner(s), progress review meetings, data collection and verification, and documenting progress towards achieving results and reporting in line with the results framework (see Section VI). Given the evolving conflict and security situation in Yemen, UNOPS will ensure that results monitoring is responsive to the changing circumstances on the ground. UNOPS will conduct a mid-term review jointly with the World Bank to evaluate all aspects of project implementation. As part of the reporting process, UNOPS will provide updated global information system (GIS) maps of the Project areas to help monitor progress towards infrastructure-related activities. UNOPS will submit to the Bank quarterly technical and semi-annual financial progress reports on Project activities and regular status reports of compliance with the Environment and Social Commitment Plan (ESCP) and the environmental and social instruments in accordance with the Financing Agreement. The contents of these reports will be described in the Project Operations Manual (POM). 62. The technical part of the report will include: (a) a summary of the progress and the context within which the Project is implemented; (b) ongoing and completed activities carried out during the reporting period; (c) any challenges encountered, and measures taken; (d) changes introduced during implementation, including changes in the budget; (e) achievements and results of the Project with reference to identified indicators; and (f) the work plan for the subsequent reporting period. 63. Independent TPMA): UNOPS will engage a TPMA to undertake independent results verification of project outcomes leading to documenting achievement of the PDO. The TPMA will also verify on the ground report on status of activities and outputs, namely employment opportunities created, kilometers of roads upgraded, rehabilitated and/or maintained, capacity development of RMF and RAP achieved through collecting data on outcome and intermediate results indicators, and monitor compliance of fiduciary and social and environmental processes by the local partners. As an extended supervision arm to the Bank, the TPMA shall be provided by UNOPS and its contractors, subcontractors and supervision consultants, with unlimited access to all relevant project information and documents and will attend project meetings as observer. The Bank will also conduct an in-depth review of the entire implementation process of selected subcomponents of the project (both completed and in progress). This will include examination of the quality of designs and studies, quality of works, procurement of goods and consulting services, conformance with quality norms and with performance criteria as described in the relevant project documents. 64. Technology Support for Monitoring: UNOPS shall deploy a digital platform to collect project data and information on project progress, quality, environmental and social issues, grievances, Occupational Health and Safety (OHS), protection against GBV, road traffic safety, etc. The platform should have the capability to produce reports with geotagged photos, videos, and 3D displays demonstrating changes before and after sub-project interventions. UNOPS shall provide the World Bank team and the TPMA with full access rights to the platform for viewing and downloading project information to enable remote Page 26 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) monitoring. Regular progress reports (quarterly) will be prepared by UNOPS and independently by the TPMA. 65. The World Bank will conduct regular “reverse” implementation support missions with UNOPS to carry out joint supervision with UNOPS, local institutions, and the TPMA. These missions will be conducted at least every six months with possible technical missions in between in order to: (a) review progress to achieving intermediate indicators, PDO indicators, overall implementation progress and the likelihood of achieving the PDO; (b) provide support for any implementation issues that may arise; (c) provide technical support related to implementation, achievement of results, and capacity building of local institutions; (d) discuss relevant risks and mitigation measures; and (e) review the financial management aspects of the project and monitor the overall project performance through progress reports, audit reports, and field visits, if and when they become possible. 66. Citizen’s Engagement Monitoring: UNOPS will mobilize beneficiary communities to elect their representatives (community monitors) to monitor implementation of the project within the community framework agreement. The community monitors will be trained on monitoring of the civil works on adherence to local social norms based on very less technical perspectives of the contracts performance and provide feedback for UNOPS’s consideration. Citizen’s feedback will be part of the monitoring mechanism on the digital platform and be accessible to the Bank’s and TPMA’s review. 67. The project will conduct beneficiary satisfaction surveys at three stages of the project cycle aiming at understanding the level of access related challenges the beneficiaries have, and to what extent the project addresses them. (i) A baseline survey will be conducted before roads rehabilitation and maintenance commences which, in conjunction with consultations made at preparation, will enable the project to establish the challenges and design beneficiary-centered optimal interventions to address these challenges. (ii) A mid-term survey will quantify the level of beneficiaries’ satisfaction of the project outcomes and draw lessons from the implementation on the first half of the project period. The implementing agency will prepare time-bound action plans to make appropriate course corrections in the second half of the implementation period based on the lesson drawn. (iii) The end line survey will be conducted after completing all subprojects to quantify the level of beneficiaries’ satisfaction vis-à-vis the intended outcomes and evaluate the impact of improvements made after the midterm survey. C. Sustainability 68. Empowering local institutions: To ensure sustainability of investments, the Project is designed to preserve and support implementation capacity of local institutions to facilitate project implementation as well as preparing them to efficiently manage the network in the medium to longer term. To this end, UNOPS will directly support RAP and RMF develop their institutional capacity. RAP will assume more implementation support activities over time as its capacity improves. This will help preserve the capacity of important local institutions during the crisis and can help enable a smooth transition to government functions once the crisis ends. 69. Improving asset management capacity: The Project will build capacities of RAP and RMF in managing their respective road network assets. Better knowledge of the asset inventory and condition will enable the authorities to optimize resource allocation for road maintenance and renewals. In addition, they will be equipped with better predictive tools to address extreme climate events such as flooding and related damages to infrastructure. Provision of Bailey type bridges under component 1 would allow for urgent Page 27 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) response to damages to structures caused by flooding and reduce impact of road closures to traffic. To ensure sustainability of investments in the road network, RMF has been allocating maintenance funding to all classified roads including rural roads. 30 percent of the total RMF’s revenue is channeled to the governorates for the maintenance of their rural road network. 70. Engaging beneficiary communities beyond consultation: Under the second component, the Project will also consult communities to identify the most pressing needs of connectivity and engage them in routine maintenance of rural and village access roads through micro enterprises. While upstream consultation ensures the project will do little or no harm to people and the environment, their direct involvement in road maintenance promote sense of ownership and improved livelihood. Consultation with communities will be conducted through face-to-face, virtual and/or hybrid, as indicated in the Preliminary Stakeholders’ Engagement Plan. 71. Preparatory works to scale up and follow-on complementary investments: The project includes a financial provision under the second component to carry out studies and preparatory activities to scale up project activities as resources become available and broaden complementary activities such as rehabilitation of key ports aiming at increasing the efficiency of transport system from first to last mile. IV. PROJECT APPRAISAL SUMMARY A. Technical, Economic and Financial Analysis Economic Analysis Including Road Safety Benefits. 72. Given the low traffic volume along the road links, the road economic decision (RED) model is adopted for economic analysis. Considering the large number of individual project roads (i.e., 14 roads totaling approx. 173km) spread out in the country, an aggregate economic analysis was carried out. The subject analysis assumes an economic internal rate of return (EIRR) and modified internal rate of return (MIRR), and positive cash flows from the investment are reinvested at the social discount rate (SDR) or economic opportunity cost of capital (EOCC) of 6 percent. Switching values were calculated along with associated economic net present value (ENPV) discounted at 6 percent (i.e., SDR). Aggregated EIRR under the base case and sensitivity scenarios was found to be above the minimum required SDR of 6 percent, thus rendering the targeted investments to be economically viable. Results of the road economic analysis carried out using the RED model also confirmed the feasibility of the 14 roads. EIRRs for all the 14 roads are found with more than the EOCC of 6 percent along with positive ENPV, see Table 2. Table 2: Results of Economic Analysis including Reduction in Gas Emission Benefits (US$ Million) – 14 Roads ENPV @6 Switching Sensitivity Scenario EIRR MIRR percent Value (SV) US$ Million Base Case 10.4 percent 8.2 percent 14 20 percent increase in Construction Cost 8.2 percent 7.1 percent 8 45 percent 20 percent increase in O&M Cost 10.4 percent 8.2 percent 13 2172 percent 20 percent decrease in project benefit 7.6 percent 6.8 percent 5 30 percent One-year delay 9.9 percent 7.8 percent 10 Page 28 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Combined effect (Worst Scenario) 5.5 percent 5.7 percent (2) Note: EIRR - Economic Internal Rate of Return MIRR - Modified Internal Rate of Return ENPV- Economic Net Present Value discounted @6 percent 73. Carbon Emission Reduction Benefits: Improved road surface from earthen to paved condition will result in increased motorized vehicles travel speed from 17.3 kilometers per hour (KPH) to 35 KPH, and a corresponding reduction in fuel consumption due to operating at optimal speeds when using project roads. Both the increased speed and the reduction in fuel consumption are projected to reduce carbon emission by 38,976 tones during the 15 years operation period, see Table 3. On the other hand, the project is expected to generate additional traffic during the 15 years analysis period, where there will be an increase in the total vehicle kilometer (VKM) from 393.55 million VKM - under ‘without project’ scenario - to 590.73 million VKM under ‘with project’ scenario. However, the reduction in greenhouse gas (GHG) emission from increased average speed far outweighs the increased emission due to the additional generated traffic, resulting in approx. 75 percent in net reduction in fuel consumption compared to the “without project” scenario. The detailed economic analysis is available in Project Files. Table 3 - Estimate of Carbon Emission Savings during 2023 – 2037 Details 14 roads (173.17km) Annual Vehicle km Annual Carbon emission - Annual Carbon emission - (2025 - (2025 - 2039) – Million (2025 - 2039) Tonnes 2039) Tonnes/Million vehicle km 1. Without Project 526.13 348,112 661.64 2. With Project 526.13 208,867 396.98 3. Savings - 139,245 264.66 74. The Road Safety Screening and Appraisal Tool was applied to assess the road safety impact of the proposed rehabilitation of the 14 rural roads under ELCP. Given the lack of relevant granular data, efforts focused on collecting, verifying, processing, and coding data from various sources and based on good practices. The engineering pre-feasibility design studies, World Health Organization estimates (2018), as well as speed and traffic data from RED were used. The estimated Project Safety Impact (PSI) score was calculated for each rural road. The PSI scores for the 14 roads are below 1 and the average estimated PSI is 0.74. To ensure a good final outcome, road safety is embedded in the project technical designs. The base designs include innovative safety design features such as: safety barriers near Wadi crossings and in hilly segments, installing of speed management facilities, protected pedestrian crossings and walking along facilities and adequate warning signs in populated areas and near schools, markets and health centers. The Road Safety benefits have been calculated as well. The results are presented in the Table 4 below. The Road Safety benefits in the amount of US$4 million account for 7 percent of the project net present value (NPV). Page 29 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 75. Carbon Emission benefits account for around 49 percent of the project benefits, travel time benefits for 40 percent, and road safety benefits for 7 percent. The table below presents the distribution of the project net benefits. Table 4: Distribution of Net Benefits (Million US$) Capital Maintenance Normal Normal Road CO2 Costs Costs VOC Time Safety Emissions Total -26.0 -0.6 1.5 21.6 3.6 26.5 26.6 76. The overall EIRR of the project is 15.0 percent and the NPV is US$26.6 million, at 6 percent discount rate. Technical 77. Technical design pertains to routine upgrading of about 150km Rural Access Roads (RARs) and the provision of longitudinal and transversal drainage structures, and routine maintenance of 150km rural access roads RARs and 60km of Village Access Roads (VAR). 78. Detailed design for 375km of Rural Access Roads (RARs) has been prepared although only 150km of rehabilitation/upgrading will be taken up for IDA funding. The RARs design pertains to upgrading existing earthen roads to a 6-meter carriage way asphalt concrete surfaced road including, to the extent possible, measures that will enhance resilience of the pavement and drainage structures to adverse climatic conditions. The works will be executed within the right-of-way (ROW) of existing roads and will include: (i) upgrading to pavement surfaces and granular shoulders, (ii) provision of new and upgrading of existing longitudinal and transverse drainage structures, (iii) slope stabilization works including treating slopes with bioengineering solutions, maintenance and rehabilitation of stone masonry and concrete protection structures and retaining walls. The design of the upgrading, rehabilitation and maintenance work is based on sound technical criteria and is in line with current international standards and due consideration of main factors affecting pavement performance; namely, surface condition, structural strength, traffic characteristics, and climate conditions. 79. To achieve dual objectives of upkeeping road condition and generating employment for the poor, the Project introduces a labor-intensive approach using MEs to carry out routine maintenance of the RARs and the VARs using simplified performance-based contracts for a period of two years. The technical standards of the maintenance and rehabilitation works are designed to maximize the labor content while also ensuring quality of works and the use of established standards. The estimated labor content of road works, as a percentage of contract value, ranges between 12-20 percent for roadway surface works, 20- 30 percent for drainage and protection works, and could reach 50-60 percent for routine maintenance and slope stabilization works. To operationalize the approach, the project will mobilize local communities to form MEs and provide them with training on entrepreneurship, road routine maintenance requirements, and bidding and contract management. The implementation of this activity would be in collaboration with the SMEPS. 80. The design of the Project is based on lessons learned from previous project implementation in Yemen and from Bank-wide experience with emergency response operations in FCV settings. These value-added lessons include promoting local resilience, supporting local institutions to build and preserve Page 30 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) their capacity, a flexible project design that allows for quick wins, geographic and sectoral scalability, and the establishment of partnerships with organizations that have presence on the ground. B. Fiduciary (i) Financial Management 81. The project’s financial management arrangements will be governed by the FMFA, which provides for the use of UNOPS’ Financial Rules and Regulations. The FMFA will be incorporated in the Financial Management section of the POM. UNOPS has developed a mobilization plan to ensure that adequate human resources and financial management systems in Yemen are in place. Implementation arrangements, internal control, and internal oversight functions will be detailed in the POM. 82. For the purposes of this proposed project, UNOPS’ financial management unit in the Yemen Office will be led by one international finance specialist supported by two finance officers, one associate and one assistant. The design of the staffing structure proposed by UNOPS is based on their assessment of the local partners and their respective financial management roles and responsibilities. The UNOPS financial management unit will be responsible for the daily financial management and disbursement functions of the project. The UNOPS regional office and the hub in Amman will continue to provide the UNOPS Yemen office with technical support, advisory services, and oversight. 83. UNOPS will be responsible for (a) recording all project transactions; (b) ensuring segregation of duties as per UNOPS Financial Rules and Regulations; (c) preparing and submitting detailed financial reports, both internally and to the World Bank, which will track commitments and expenditures by sector, city, component, and activity; (d) working with technical staff to prepare adequate cash forecasts; (e) preparing withdrawal applications; (f) carrying out bank reconciliations; and (g) ensuring adequate internal control functions as per UNOPS regulations and the POM. 84. UNOPS will: (a) maintain a financial management system, including records and accounts, that is adequate to reflect the transactions related to the project activities, in accordance with the requirements of their financial regulations; (b) maintain a separate ledger account (Grant Control Account) in their books to record the financial transactions of this project; and (c) prepare, on a six-month basis, interim unaudited financial reports (IUFRs), in accordance with accounting standards established pursuant to their financial regulations and in the format agreed upon with the World Bank, which are adequate to reflect and track the expenditures related to the IDA Grant. The IUFRs will be provided to the World Bank no later than 45 days after the end of each six-month period. UNOPS will ensure that the audit of the project activities is governed by their financial regulations and the FMFA. 85. To provide reasonable assurance that project funds are spent for the intended purposes , the following arrangements will be in place: (a) reliance on UNOPS’ internal control mechanisms and internal oversight functions throughout the financial management and disbursement arrangements, documentation of expenditures, and detailed reporting; (b) direct payments to contractors as well as controls in case of use of advances to local partners; (c) contracting technical experts to supervise the implementation of activities; (d) use of the TPMA to verify the physical implementation of activities and compliance of local entities with fiduciary arrangements as agreed with UNOPS; (e) establishing a real- time oversight, transparency, and accountability mechanism through a GIS-based expenditure tracking and information dissemination system; (f) providing updated GIS maps of the project areas to help Page 31 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) monitor progress and enhance project supervision; (g) using social media to analyze community perception of sub-projects on a real time basis, to identify red flags for fraud, corruption, and unequal treatment of communities, and to complement the grievance mechanism (GM); and (h) providing financial and progress reports submitted on a semiannual basis. 86. Flow of Funds and Disbursement Arrangements. Disbursement from the World Bank to UNOPS is simplified to ensure timely availability of funds to implement the proposed Project. Disbursement to UNOPS’ official bank account shall be made based on the IUFRs. Requests for disbursement will cover the projected expenditures and activities for six months. Withdrawal applications will be submitted to the World Bank every six months to document funds disbursed and to request a new advance to cover an amount representing UNOPS’ good faith projection of the expenditures for the following six months, up to the project’s closing date. Withdrawal applications will reconcile against amounts previously withdrawn against the project budget. 87. UNOPS will receive grant proceeds into a centralized corporate account and will then allocate funds to the project. It will start implementation by transferring funds to its local accounts in Yemen and/or it will pay from any of its accounts externally depending on the contracts. The local accounts will be maintained by UNOPS’ Yemen Office and will be replenished on a regular basis. To mitigate potential challenges associated with using the local banking system, UNOPS has established an additional payment mechanism whereby it would use cash suppliers to make payments in the country. 88. Retroactive financing: The project will use the proceeds of the credit to finance eligible expenditures made prior to effectiveness up to US$500,000 of the total Bank financing up to a period of 6 months before the signing of the Financing Agreement. (ii) Procurement 89. The project aims to finance the procurement of civil works for the upgrading and rehabilitation of priority sections of lifeline rural access roads (150km), and procurement of Bailey type truss bridges. The project will also support development of MEs and to implement labor-intensive maintenance works of rural roads (150km) and village access roads (60km). Furthermore, the project is expected to finance number of consultancy services, TPMA, and other consulting services to support the capacity of RMF and RAP. This is in addition to conduct studies, designs, preparation of tender documents, supervision services and training modules. UNOPS will be approaching the international market using its ongoing framework agreements as well as approaching the local market according to the goods/services availability. 90. Procurement Management. For the purposes of this project, UNOPS will ensure that the procurement unit is staffed with one qualified international procurement staff and at least two qualified national procurement specialists to conduct day-to-day procurement functions. UNOPS will ensure that all Implementing Partners have sufficient and experienced procurement staff with adequate skills to carry out the procurement functions under the Project. 91. Alternative Procurement Arrangements (APA) will be applied: UNOPS will apply its own procurement procedures as Alternative Procurement Arrangements found acceptable to the Bank under other agreements and allowed by the Procurement Framework Policy (Section III.F). This procurement arrangement is considered a fit-for-purpose arrangement for several reasons: ● UNOPS has a strong presence on the ground and has the capacity to reach out to the most affected beneficiaries. Page 32 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) ● UNOPS has preparedness and mobilization mechanisms in place, which enable optimal emergency procurement. ● UNOPS is well informed about the market response locally and internationally and has the capacity to work in conflict and post-conflict areas in Yemen. ● UNOPS’s procurement arrangements provide reasonable assurance that World Bank financing will be used for the intended purpose. ● UNOPS has an extensive pool of framework agreements with pre‐qualified suppliers in place (“Long‐ Term Agreements”) that can be tapped into for promptly placing the purchase orders for the Goods’ items. 92. UNOPS, under the APA arrangements, has experience in implementing several Bank funded projects in Yemen such as the Integrated Urban Services Emergency Project (YIUSEP), YIUSEP II, and the Emergency Electricity Access Project. The projects are on track to achieve - and in certain areas, exceed - PDO targets. Under these projects, the Bank’s procurement oversight of the APA processes for implementation of procurement has not raised concerns. Few challenges were identified regarding some contractors’ financial capability that were addressed by strictly applying the qualification criteria and conducting appropriate due diligences prior awarding the contracts. Other challenges were related to the country’s security situation and difficulties with logistics. Those challenges were properly mitigated through advance coordination by UNOPS with the different political parties. UNOPS has a procurement team within its office in Sana’a. The team is led by an experienced international procurement specialist who oversees four national procurement staff to carry out day-to-day implementation of procurement activities. The team is also supported by an experienced procurement team in the regional office in Amman. 93. UNOPS will be responsible for: (i) implementing the procurement plan as agreed with the Bank; (ii) preparing quarterly reports on the progress of procurement implementation; (iii) reporting on the indicators in the results framework; (iv) providing other relevant performance information to the World Bank as requested; and (v) ensuring pre-screening of companies/individuals prior to award any contract financed by the Project against the Bank’s lists of sanctioned or temporarily suspended companies; this includes ensuring that all Implementing Partners have procedures in place for such screening. 94. Local Partners. UNOPS will work with RAP for enhanced implementation support. UNOPS has assessed this local partner’s technical, financial, procurement, as well as environmental and social management capacity. Accordingly, UNOPS will decide on an appropriate contractual arrangement with RAP in accordance with its own operational guidelines and under terms satisfactory to the Bank. RAP will play a critical role on technical aspects, such as coordinating with local stakeholders, identifying initial investments, and preparing initial specifications. UNOPS will retain full fiduciary responsibility and accountability for procurements carried out by any local partner if any. During project implementation, UNOPS may engage additional local partners, if deemed necessary, after consulting with the World Bank and under terms satisfactory to the Bank. 95. Procurement risk is rated “Substantial” due to the potential risk of delay in implementation/supply because of COVID-19 situation, closure of borders, export restrictions and the security situation in Yemen, composition of the marketplace (limited competition and availability of service delivery), and the nature of project activities that might be impacted by the situation on the ground in conflict and post-conflict zones. Page 33 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 96. Project Procurement Strategy for Development (PPSD), Systematic Tracking of Exchanges in Procurement (STEP) and Procurement Plan (PP). Since this is an emergency operation, PPSD may be deferred to the implementation phase. The use of STEP is not recommended under this project due to the unique nature of the project implementation arrangements. In addition, there will be no contract subject to World Bank prior review, and UNOPS has its own tracking system that could generate procurement progress reports as required. The PP is a condition of Effectiveness that will be prepared by UNOPS using the agreed upon template, reviewed and cleared by the Bank. C. Legal Operational Policies . . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No . D. Environmental and Social 97. The Environmental Risk Rating is "Substantial". This project is expected to have greater environmental benefits than adverse environmental impacts; nonetheless, some potential environmental risks and impacts might be caused by the implementation of interventions under Components 1 and 2. The rehabilitation of lifeline rural access roads under Component 1, as well as the employment-intensive maintenance of village access roads under component 2 are expected to be carried out on existing road alignments with no significant environmental impacts envisioned. Nonetheless, site-specific, limited, reversible, and mitigatable impacts are anticipated including OHS concerns such as work related accidents and injuries, risks to workers from hazardous material used for construction such as acetylene, bitumen, petroleum, diesel, lubricating oil, paints and chemicals, poor onsite sanitation or water supply, leading to illness and disease; the risk of employing children for construction,; and risks to workers due to ongoing security concerns in project areas. Other potential impacts include increased road traffic flows due to construction transport for road rehabilitation; increased levels of noise and vibration due to heavy vehicles and construction equipment, which are a nuisance to the communities affected; air pollution due to emissions from construction vehicles and equipment; creation of liquid wastes which might cause soil pollution; creation of solid, or potentially hazardous, wastes from construction debris or the use of chemicals during construction; bad odors; dust generation during excavation, backfilling, compaction, or transportation of construction materials; as well as public safety during and after construction. Furthermore, poor coordination, planning and sequencing of activities could potentially lead the breakage of underground public utilities (electric power cables, telephone lines, water distribution pipes), destruction of vegetation, and damages to significant physical cultural property. 98. The Social Risk Rating is "High". While the Project will have broad social benefits, such as facilitating all weather access to rural residents to economic opportunities, markets, services and emergency relief, and enable job creation, the social risks of the project have been assessed as “substantial”. The key social risks identified are (i) the potential for excluding vulnerable and disadvantaged groups and individuals - including internally displaced persons (IDPs) and elite capture when selecting roads to be rehabilitated or maintained or when awarding contracts for road maintenance; (ii) given the conflict context in the Page 34 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) country, ensuring project workers and beneficiaries are safe and secure during project implementation; (iii) impacts associated with restriction on land use and involuntary resettlement, in particular impacts the livelihood of formal and informal street vendors and shops or fields along the selected roads. While physical relocation is expected to be limited given the nature of civils works, which will take place in-situ of the existing ROW, physical relocation and impacts on encroaching residences cannot be entirely excluded; (iv) road safety risks during both the construction and operational phases; (v) impacts associated with labor influx, such as illicit behavior, sexual exploitation and abuse and sexual harassment (SEA/SH), as well as the potential for an increase in the propagation of transmittable diseases, including COVID-19. The SEA/SH screening tool has been applied and SEA/SH risks have been rated as substantial. SEA/SH risks are mostly limited to the construction phase of the project and can be partly managed through compensatory and supervisory measures. 99. Applicable Environmental and Social Standards (ESS) to the Project: In accordance with the Appraisal Environmental and Social Review Summary (ESRS), which was disclosed on November 18, 2021 the following ESS as detailed in the ESRS, are considered relevant to the Project activities: (a) ESS1 Assessment and Management of Environmental and Social Risks and Impacts, (b) ESS10 Stakeholder Engagement and Information Disclosure, (c) ESS2 Labor and Working Conditions, (d) ESS3 Resource Efficiency and Pollution Prevention and Management, (e) ESS4 Community Health and Safety, (f) ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement, and (g) ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources. 100. UNOPS, the implementing agency, is already familiar with the ESF requirements and will ensure the supervision team is appropriately staffed. The PMU will include an Environmental and Social Standards Officer (ESSO), Gender Mainstreaming Officer, and Health and Safety Officer. To mitigate any potential negative risks and impacts which might be caused by the project and in line with the Environmental and Social Framework (ESF), UNOPS will prepare an Environmental and Social Management Framework (ESMF) and a Resettlement Framework (RF). At this stage, the project is using a framework approach, as the roads to be rehabilitated/maintained have not yet been selected. The ESMF and RF will include a screening procedure and checklist against which each proposed subproject road will be screened. Subprojects requiring land acquisition will be excluded. The ESMF will also include measures to manage SEA/SH and COVID-19 risks. Once each subproject roads are identified and screened, site-specific environmental and social Management Plans (ESMPs), and whenever relevant, Resettlement Plans (RPs) will be prepared. In addition, a Stakeholder Engagement Plan (SEP), Labor Management Procedures (LMPs) and a Security Management Framework (SMF) will be prepared. All ESF instruments will be consulted on, and disclosed in country, as well as on UNOPS and the World Bank external websites before the grant Effectiveness Date. 101. Deferral of Disclosure: The project is an emergency project and is being processed under the condensed procedure in an active conflict context where data collection and stakeholder consultation is difficult to carry out within the project’s delivery timeline. Two of the instruments, ESCP and Preliminary SEP have been prepared, cleared by the World Bank and disclosed prior to Appraisal on November 12, 2021 (https://ye.unopsmr.org/publications/yemen-emergency-lifeline-connectivity-project-documents/). However, the finalization (and disclosure when appropriate) of following instruments will be deferred to after Board approval based on paragraph 52 of the E&S Framework and made conditions for Effectiveness of the Financing Agreement: (i) ESMF: sets out the principles, rules, guidelines, and procedures to assess the environmental and social risks and impacts. It contains measures and plans to reduce, mitigate and/or offset Page 35 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) adverse risks and impacts, provisions for estimating and budgeting the costs of such measures, and information on the agency or agencies responsible for addressing project risks and impacts, including on its capacity to manage environmental and social risks and impacts. UNOPS will prepare the instrument financed from its own resources and retroactively funded by the Project. Preparation and disclosure will be completed before Effectiveness of the Financing Agreement. (ii) RF: will lay out the to clarify resettlement principles, organizational arrangements, and design criteria to be applied to subprojects or project components to be prepared during project implementation as provided in ESS5. Once the subproject or individual project components are defined and the necessary information becomes available, such a framework will be expanded into a specific plan proportionate to potential risks and impacts. UNOPS will prepare the instrument financed from its own resources and retroactively funded by the Project. Preparation and disclosure will be completed before Effectiveness of the Financing Agreement. (iii) Security Management Plan: defines how UNOPS will ensure security protection and duty of care to all project workers and project-affected parties during the implementation of the project activities. UNOPS will prepare the instrument financed from its own resources and retroactively funded by the Project. Preparation and disclosure will be completed before Effectiveness of the Financing Agreement (iv) LMP: set out the way in which project workers will be managed, in accordance with the requirements of national law and ESS2. UNOPS will prepare the instrument financed from its own resources and retroactively funded by the Project. Preparation and disclosure will be completed before Effectiveness of the Financing Agreement. (v) SEA/SH Prevention and Response Action Plan: The Action Plan details the operational measures to assess and mitigate the risks of GBV, most notably SEA and SH, and how they will be integrated over the life of the project. This includes procedures for reporting, responding, and managing grievances related to such abuse. UNOPS will prepare the instrument financed from its own resources and retroactively funded by the Project. Preparation and disclosure will be completed before Effectiveness of the Financing Agreement. 102. UNOPS and Local Partner(s)’ Safeguard Procedures. UNOPS has Environmental, Health and Safety (EHS) procedures and practices that include: (a) a Project Health and Safety Plan (PHSP), which is a management framework to ensure safer construction practices and to prevent dangerous acts that could lead to accidents on site; (b) standard contracts to which the PHSP is attached as an integral part; and (c) training programs for on-site staff on EHS aspects before projects begin. Furthermore, UNOPS’ local partner (namely, RAP) has track records of successful implementation of World Bank environmental and social standards requirements. RAP has retained its safeguard capacities and functionality despite the ongoing conflict. 103. Management of Project-Specific Social and Environmental Aspects. To ensure the proper management of environment and social aspects under the project, UNOPS retains a permanent environmental and social officer in the Sana’a office. The officers will be supported by an international expert who will be available on an as-needed basis to oversee the overall implementation, monitoring, and reporting of social and environmental aspects. In addition, RAP will have a social and environmental Page 36 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) focal point for ensuring on-site compliance with environmental and social mitigation measures and health and safety requirements. Reporting on compliance with the ESMF, RPF as well as other relevant and subsequent environmental and social instruments, will be monitored through regular progress reports that will be prepared by UNOPS and shared with the World Bank. Reporting on social and environmental standards compliance will also be incorporated in the scope of the TPMA. Furthermore, the project will provide technical assistance to the MPWH, the RAP and the RMF to establish social/gender positions within agency staffing and incorporate a gender sensitive approach. Additionally, UNOPS will be requested to provide adequate hands-on support and continuous capacity building to the environmental and social experts of local partners to ensure adequate implementation of the project’s ESMF and other relevant plans. E. Waiver of Specific Operational Policies 104. The following waiver is sought from the IDA Board of Executive Directors for third-party implementation: a waiver to the application of the Anti-Corruption Guidelines for the grant from IDA. Specifically, the waiver is sought for the Bank Directive for Investment Project Financing and Section 5.14 of the IDA General Conditions for Credits and Grants for Investment Project Financing, which would otherwise require application of the World Bank’s Anti-Corruption Guidelines, in favor of relying on the fraud and corruption procedures of UNOPS. V. GRIEVANCE REDRESS SERVICES 105. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance mechanisms or the WB’s GRS. The GRS ensures that complaints received are promptly reviewed to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, because of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. VI. KEY RISKS 106. The overall risk to the achievement of the Project’s development objectives is ’High’ as the Project will be implemented in a challenging conflict context. SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) 1 Risk category Political and Governance Risk assessment High Page 37 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Risk Opposing political entities being in charge in different parts of the state with no unified description central policy, weakened key governance systems and mechanisms. Given the active conflict situation and the diverse interests of political entities, conflicting political interests and possible interferences may affect implementation. Mitigating Project will be implemented outside the states governance system, through a third party measures capable of implementing projects in FCV. 2 Risk category Technical Design Risk assessment High Risk Project design adopts unusual approaches in normal operations (i) implementation description through a third party as a grant recipient, (ii) microenterprise approach to road maintenance MEs created as new, trained implemented the project, (iii) reliance on a third party for monitoring in the absence of Bank’s onsite supervision. Mitigating Project will be implemented with the support of experienced consultants to enable easy measures transfer of knowledge and know how, as well as smooth management of activities. Build on successful experiences in microenterprise-based public works in the region and globally. 3 Risk category Stakeholders Risk assessment Substantial Risk Given the high underemployment rate among low-skilled rural workers, there is a risk of description having high demand for participation in the project which could create dissatisfaction among individuals who were not employed as part of the project. High demands for business opportunities compared to what the project could offer may create tensions. Accommodating multiple donors’ interests which at times may conflict (selection of beneficiary villages, types of activities, responsibilities of the implementing agencies vis-à- vis UNOPS, may pose challenges both at preparation and implementation stages. Mitigating Creation of transparent conditions for selecting local contractors and suppliers, and for measures employment of labor and professionals. Clear description of requirements in the bidding documents and announcements for employment opportunities. 4 Risk category Environmental and social Risk assessment High Risk Environmental and social related risks may include localized emission of dust, noise, description vibration and generation and inadequate management of solid waste and oil spills and wastewater resulting from different project’s activities. Further p otential risks include community health and safety as well as Occupational Health and Safety (OHS) of project workers, child and forced labor, unfair treatment and discrimination, including for female workers (such as on wages and work-place sexual harassment and/or exploitation might materialize if unchecked). At the sub-project level, there would be a substantial workforce size compared to the host community, which may cause labor influx and associated gender-based violence (GBV) risks and competition for limited resources specially for component 2 as labor intensive for road maintenance activities. Potential exclusion of certain groups due to preferential treatment of some actors on religious, political or ethnic grounds. Due to the ongoing conflict security risk, including UXO, is another potential risk to the workers and assets. Impact of COVID pertaining to safety and health for labor management. Mitigating To ensure proper management of any potential environmental impacts resulting from the measures implementation of the project’s interventions, an Environmental and Social Management Framework (ESMF) will be prepared, consulted on, and will be disclosed in country and on Page 38 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) the World Bank external website. Furthermore, subprojects under Components 1 & 2 will be screened against criteria that are included in the ESMF, and subsequent site-specific environmental assessment instruments will be prepared - if needed - during the implementation phase and before the commencement of any physical activities. The ESMF will include a checklist for excluding any activities that might cause significant or irreversible environmental and social impacts or might cause negative impacts on biodiversity, natural habitats, cultural resources, activities that might involve permanent land acquisition, significant adverse social impacts, affect lands of vulnerable minorities, or physical relocation. Social exclusion risks will be mitigated by relying on a participatory, bottom-up, approach during public consultation processes to screen sub projects. Robust implementation guidelines will be detailed in the Project Operations Manual to ensure proper targeting, inclusiveness, fairness, meaningful consultations, and active citizen engagement in the participatory approach promoted by the Project. To ensure management of social risks and impacts, Resettlement Framework (RF), Labor Management Procedures (LMP), GBV Action Plan and Security Management Plan (SMP) will be prepared before Effectiveness of the Financing Agreement. 5 Risk category Procurement Risk assessment Substantial Risk 1) Low market response to procure Bailey type truss bridge. description 2) Delays due to unexpected events such as clashes breakout. 3) Difficulties with logistics, mainly importation, local transportation, and distribution arising from the need to obtain many security clearances from several political parties. 4) Undue political interference that may evolve from engaging local partner(s) and insufficient oversight from UNOPS. Mitigating - UNOPS to approach the international market and explore the limited/direct selection measures options when needed. - UNOPS to carry on advance coordination with the different political parties in Yemen to ensure smooth implementation/delivery. - Frequent reporting on the progress of the procurement plan implementation by UNOPS, supplemented by regular direct contact between the World Bank team and UNOPS to review the status of activities. Aside from this, the Bank will: a) review and approve the procurement plans and their updates; b) review the selection of the third-party monitoring agent; the procurement documents, TOR, evaluation report and draft contracts for such TPMAs shall be submitted to the Bank for its review prior to finalizing and issuing the contract for services of the TPMAs; and c) review the TPMA reports and take actions as needed. 6 Risk category Financial Management Risk assessment Substantial Risk UN agencies do not allow the Bank to access supporting documentation of reported description expenditures. Independently auditing UN agencies may be a challenge. Mitigating UNOPS will be responsible for managing fiduciary risks, establishing a set of financial measures management procedures based on their policy to address fraud, and providing reasonable assurances that funds are used for the intended purposes. On ongoing projects, UNOPS demonstrated timely and effective implementation of the World Bank Anti-Corruption Guidelines. The Bank can agree with UNOPS on having a specific audit for the project financed by project’s proceeds. UNOPS has also established a real-time oversight, transparency, and accountability mechanism through a GIS-based expenditure tracking system which will also be used for this project. Page 39 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) 7 Risk category M&E Risk assessment Substantial Risk Sub-projects will be scattered and in relatively remote locations and may cause challenge description for data collection Mitigating The project will adopt remote monitoring mechanisms including satellite imageries, measures geotagged photos, and video recordings to report on progress. To be later validated by TPMA when the sites are once more accessible. 8 Risk category Other Risks (Security) Risk assessment High Risk Security risks remain the major challenge that amplifies all other risk categories. endangers description the lives of contractors, UNOPS and other entities personnel working at site and disrupt project activities. The risk of conflict shifting to project areas which have been relatively safer in the evolving security situation needs to be considered Mitigating UNOPS and contractors would prepare a security plan that enables minimize the loss in measures active conflict situation. The security management plan will be a dynamic document that would be updated depending on the evolving situation on the ground. 9 Risk category Other Risks (COVID 19) Risk assessment Substantial Risk The active conflict and the uncertainty over the effectiveness of cold chain for vaccine and description availability of the vaccine as needed, the COVID pandemic will continue to be a major public health risk that may constrain movements of people and goods to and from the project. Mitigating Local labor and contractors to be employed for the project. Utilization of personal measures protective equipment and precautionary measures. 10 Risk category Other Risks (Fuel supply shortage) Risk assessment Substantial Risk Fuel shortage has been a prominent risk in the country in the recent past along with the description global movement restriction and supply shortages Mitigating This risk will beyond the control of contractors and UNOPS - contractors should have plans measures on (i) maintaining a capacity for some minimum reserve when the opportunity presents itself to continue operation, and (ii) smother downsizing of operation and workforce, and a swift return to normal operations when the crisis subsides Page 40 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) . VII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Yemen, Republic of Emergency Lifeline Connectivity Project Project Development Objectives(s) To provide climate resilient road access and employment and entrepreneurship opportunities to food insecure rural population of Yemen Project Development Objective Indicators RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline End Target Improved all-weather access Number of population with all-weather access in the targeted 0.00 575,000.00 rural communities (Number) Number of female population benefitted (Number) 0.00 281,750.00 Number of male population benefitted (Number) 0.00 293,250.00 Reduced number of days of climate-induced travel interruptions 7.00 2.00 along project roads per year (Number) Reduction of travel time Reduced vehicular travel time to the nearest center for humanitarian food aid center, social services including 0.00 15.00 education, health and community centers (Percentage) Reduced time to the nearest food aid center (Percentage) 0.00 15.00 Page 41 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline End Target Reduced time to the nearest market center (Percentage) 0.00 15.00 Reduced time to the nearest school (Percentage) 0.00 15.00 Employment creation Number of labor days generated through direct employment by 0.00 1,050,000.00 the Project (Number) Labor days - females (Number) 0.00 50,000.00 Labor days - males (Number) 0.00 1,000,000.00 PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline End Target Rehabilitation of Lifeline Rural Access Roads Roads rehablitated (CRI, Kilometers) 0.00 150.00 Roads rehabilitated - rural (CRI, Kilometers) 0.00 150.00 Surface area of slopes stabilized through bio-engineering 0.00 100,000.00 methods (Square Meter(m2)) Bailey bridges procured and/or installed (Number) 0.00 3.00 Number of traffic calming arrangements within the vicinities of schools, clinics, and markets (Number) 0.00 15.00 Employment-Intensive Road Maintenance Kms of Rural Roads maintained (Kilometers) 0.00 210.00 Kilometers of rural access roads maintained (Kilometers) 0.00 150.00 Page 42 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline End Target Kilometers of village access roads maintained (Kilometers) 0.00 60.00 Microenterprises created and trained (Number) 0.00 20.00 Number of female owned microenterprises (Number) 0.00 4.00 Strengthening Management Capacity of Public Transport Sector Institutions, Studies and Preparatory Number of RAP and RMF-IU staff trained in project 0.00 50.00 implementation (Number) RAP assigned first phase implementation support tasks (Text) No Tasks assigned Phase 1 tasks assigned RAP assigned second phase implementation support tasks (Text) No tasks assigned Second phase tasks assigned RAP MIS revived (Text) Non functioning MIS MIS system revived RMF's Roads Asset Management System revived (Text) Non functioning RAMS RAMS made up to date and functional Females internship provided in road maintenance (Number) 0.00 25.00 Beneficiary Satisfaction Index (BSI) (Number) 0.00 4.00 Project Implementation and Monitoring Support Third Party Monitoring Agent hired (Text) No monitoring agent TPMA hired and commenced assignment IO Table SPACE UL Table SPACE Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection The indicator measures the Number of population with all-weather number of beneficiaries in Annually CSI Secondary data UNOPS access in the targeted rural communities the rural area connected by all weather access to market Page 43 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) and other essential services Number of female population benefitted Number of male population benefitted Reduced number of days of climate- Annually UNOPS Progress report UNOPS induced travel interruptions along project roads per year Using typical passenger cars used on the road measured before and The indicator measures the after the project at Reduced vehicular travel time to the time saved by road users to different times of the nearest center for humanitarian food aid Once M&E report UNOPS travel between villages and day. Detailed center, social services including the nearest service centers methodology will be education, health and community centers (market, schools, clinics) developed by UNOPS and agreed with World Bank Reduced time to the nearest food aid center Reduced time to the nearest market center Reduced time to the nearest school The indicator measures the Contractors, extent to which the project Vendors in Contractor's records, Number of labor days generated through Annually UNOPS generates employment to the project survey direct employment by the Project the rural people in the area project area Labor days - females Page 44 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) Labor days - males ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Supervision Quarterly Field Measurement UNOPS Roads rehablitated Consultant Supervision Quarterly consultant Field survey UNOPS Roads rehabilitated - rural report Supervision Surface area of slopes stabilized Quarterly Field survey UNOPS Consultant through bio-engineering methods Quarterly UNOPS Field surveys UNOPS Bailey bridges procured and/or installed Number of traffic calming arrangements Supervision Quarterly Filed survey UNOPS within the vicinities of schools, clinics, and consultant markets This indicator measures kilometers of village access and rural roads maintained Supervision through labor intensive Quarterly Filed measurements UNOPS Kms of Rural Roads maintained Consultant methods to generate employment for the rural poor along the project roads. Page 45 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) This indicator measures kilometers of rural roads maintained through labor Supervision Kilometers of rural access roads Quarterly Field survey UNOPS intensive methods to Consultant maintained generate employment for the rural poor along the project roads. This indicator measures kilometers of village access maintained through labor Supervision Kilometers of village access roads Quarterly Field survey UNOPS intensive methods to Consultant maintained generate employment for the rural poor along the project roads. Quarterly UNOPS Progress report UNOPS Microenterprises created and trained Number of female owned Quarterly UNOPS Progress report UNOPS microenterprises Consultant's Number of RAP and RMF-IU staff trained Quarterly Consultant's records UNOPS Report in project implementation RAP assigned first phase implementation Quarterly UNOPS Progress report UNOPS support tasks RAP assigned second phase implementation support tasks Consultant's Quarterly Onsite inspection UNOPS RAP MIS revived report RMF's Roads Asset Management System Quarterly Consultant Onsite inspection UNOPS revived Females internship provided in road Quarterly UNOPS UNOP's records UNOPS maintenance Page 46 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) UNOPS The indicator in a scale of 1- Three The findings of the 6 measures the level of times: at surveys will be published satisfaction of beneficiaries project and/or that the served by project roads. An start, at implementing entity will Consultant Consultant's report Beneficiary Satisfaction Index (BSI) independent firm will be mid develop timebound hired, device methodology term, befor action plans to address and conduct the survey e project the feedback acquired before and after the project closes through the respective road rehabilitations beneficiary surveys. Once UNOPS UNOPS record UNOPS Third Party Monitoring Agent hired ME IO Table SPACE Page 47 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) ANNEX 1: Implementation Arrangements and Support Plan COUNTRY: Yemen, Republic of Emergency Lifeline Connectivity Project A. Overall Implementation Arrangement 1. UNOPS will implement the Project through its Yemen Country Office in Sana’a and the Operational Hub in Amman. A dedicated Project Management Unit (PMU) will be established to provide support in project management, technical aspects, procurement, financial management and financial sector aspects, communications, monitoring and evaluation, environmental and social issues, logistics, administration, IT, and security will be handled by the Sana’a Office with close support on a day -to-day basis from Amman. UNOPS global staff will be drawn in on a need basis. Project oversight will come from UNOPS Regional Office and Operational Hub in Amman as well as UNOPS headquarters in Copenhagen, Denmark. The core project management and implementation support team from UNOPS would include a project manager, an operations specialist, local engineers, IT and MIS Specialist, an environmental specialist, a social and communication specialist (with skills and experience in gender based violence (GBV) issues, gender mainstreaming in infrastructure projects, ), community mobilizer in SME centered schemes, an M&E specialist, two procurement specialists and an assistant, financial management specialist and an assistant, and an administrative assistant. 2. UNOPS has a regional structure with the regional office and hub based in Amman, Jordan. This structure has an established capacity in the areas of finance, procurement, environmental and social issues, human resources, IT, and security which will provide support and advice as needed. In addition, a Regional Oversight and Management Advisor oversees the operations in the region and provides management advice to the Regional Director. The Regional Office is supported from the UNOPS headquarters, based in Copenhagen, Denmark. 3. TPMA: UNOPS will engage a Third-Party Monitoring (TPM) agent to undertake independent results verification of project outcomes leading to documenting achievement of the PDO. The TPM agent will also verify on the ground report on status of activities and outputs, namely employment opportunities created, km of roads upgraded, rehabilitated and/or maintained, capacity development of RMF and RAP achieved through collecting data on outcome and intermediate results indicators, and monitor compliance of fiduciary and safeguard processes by the local partners. As an extended supervision arm to the Bank, the TPM shall be provided by UNOPS and its contractors, subcontractors and supervision consultants, with unlimited access to all relevant project information and documents and will attend project meetings as observer. The Bank will also conduct an in-depth review of the entire implementation process of selected subcomponents of the project (both completed and in progress). This will include examination of the quality of designs and studies; quality of works; procurement of goods and consulting services, conformance with quality norms and with performance criteria as described in the relevant project documents. 4. World Bank implementation support missions (in person and virtual) and oversight. The World Bank Task Team, in close coordination with the Yemen Country Management Unit, will conduct scheduled implementation support missions through UNOPS in Amman for the Project. The World Bank team will Page 48 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) closely coordinate with UNOPS, on a regular basis, for the implementation and overall oversight of the Project, and will: (a) review implementation progress and achievement of the PDO and intermediate indicators; (b) provide technical support related to implementation, achievement of results, and capacity building; (c) ensure that adequate oversight mechanisms are in place; (d) discuss relevant risks and mitigation measures; and (e) monitor the overall project performance through progress reports, financial reports, and “reverse” implementation support mission with UNOPS regional office in Amman and its local partner(s). Additionally, regular virtual meetings will be conducted to coordinate project management. Bank supervision will be enhanced through multipronged approach that enables it to verify outputs including: (i) engaging independent TPMA; and (ii) deploying state of the art technologies to better monitor technical and fiduciary aspects of the project remotely; including the use of 360-degree geocoded video recording, geocoded surface condition measurement, geocoded photos of Core tests, Field Sight monitoring platform being developed by UNOPS, etc. Project reports from UNOPS and the TPMA would include geotagged visuals in the form of photographs, videos, and 3D images to demonstrate the changes before and after project interventions B. Financial Management 5. FM Arrangements: The project will utilize the same FM arrangements implemented by UNOPS, while adopting mitigation measures agreed with the Bank throughout project implementation. 6. The YIUSEP project, which was implemented by UNOPS was subject to a project specific audit that covered its transactions since effectiveness till end of March 2020. The project audit opinion was Unmodified (clean) with Satisfactory internal control rating. 7. Accounting and financial reporting: UNOPS will: (i) maintain an acceptable FM system, including records and accounts, adequate to reflect the transactions related to the activities, in accordance with the requirements of the UN Financial Regulations; (ii) maintain a separate ledger account (Grant Control Account) in their books to record the financial transactions of this project; (iii) prepare, on a semi-annual basis, IUFRs, in accordance with accounting standards established pursuant to the UN Financial Regulations and in the format agreed with the Bank during negotiation of this project, adequate to reflect the expenditures related to the project. The IUFRs will be provided to the World Bank no later than 45 days after the end of the semester. 8. Internal controls: To ensure proper controls are applied over the use of funds, UNOPS will ensure the following: ● The finance team located in the field consists of sufficiently qualified staff to review and properly maintain and file all original supporting documents of the project. The finance team will also ensure that proper controls are in place over the use of funds and that payments are made for eligible expenditures with consideration to economy and efficiency. ● The compliance team will assist their finance team to ensure arrangements are in place for funds to reach the legitimate beneficiaries. ● The finance and compliance teams will ensure that proper measures are in place to prevent Page 49 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) double-dipping of activities. ● Adequate financial and technical reviews are conducted regularly by the TPMs and recipient’s finance and/or M&E teams. ● In case of payments to individuals, the recipient will ensure mobile banking, payment agencies or other methods are used that can provide a high level of assurance that funds reached the intended beneficiaries. ● The recipients will ensure that IUFRs are properly reviewed and approved before submission to the Bank. In addition, IUFR reported expenditures will include no advances other than those agreed with the Bank and disclosed in the IUFR. 9. Flow of funds: The project will use the IUFR based disbursement method for the flow of funds. The form and substance of the IUFR report currently used under the ongoing operation are acceptable. For this project, UNOPS will use the Direct Disbursement and Reimbursement modalities to the extent possible, to mitigate any risk associated with advances to IPs, by which funds will flow from the Bank to UNOPS and then to the ultimate beneficiaries/recipients without going through intermediary accounts. 10. Use of advances to IPs should be limited. In cases where advances are used, UNOPS will ensure proper controls are in place, such as: (i) the advances should not exceed certain thresholds; (ii) no new advances are released to implementing agents unless previous advances are fully settled (in cases of partial settlement, additional funds can be provided within the limit of the partial settlements made); (iii) all original supporting documents for expenditures incurred under the project will be maintained by the recipient; and (iv) all advances have proper audit trails. 11. UNOPS will exert all efforts to ensure that funds reach the ultimate beneficiaries with sufficient evidence provided. They will ensure that no funds are transferred to the central government or personal accounts of individuals unless those individuals are the legitimate recipients of cash for work or services rendered. 12. Audit: The Recipient shall ensure that the audit of the Project is carried out exclusively by its Financial Regulations and Rules. In addition, as agreed by the Recipient and the Association, the Recipient shall carry out any additional due diligence activities as agreed by the Recipient and the Association in separate terms of reference. 13. Supervision Plan: The Bank will carry out quarterly supervision of project activities. The supervision will include desk work, which will incorporate the review of financial reports provided by the recipients and TPMs, and field visits to review samples of expenditures supporting documentation and control procedures applied. 14. Fiduciary risk is Substantial. The FM risk in Yemen is high, but for this project it becomes substantial providing residual risks are mitigated through implementation of specific risk mitigation measures. For instance, fraud and corruption and misuse of IDA funds can be mitigated through use of mobile banking, regular FM reviews, and UNOPS use of the Direct Implementation modality. The Direct implementation modality and regular Bank reviews can also help to reduce the risks associated with limited footprint of staff on the ground. There are also high risks around the reliance of local TPMs/auditors, IPs, and M&E consultants, which can become substantial through mitigation measures such as carrying out Page 50 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) fresh assessment of the respective local consulting firms, providing support to the Yemeni Association of Accountants and Auditors, and the World Bank overseeing the process of appointing TPMs and auditors. High currency and exchange risks is also reduced to moderate through adoption of a streamlined mechanism for the use of market rate in the south for the Yemeni Rial. In addition, and similar to UNOPS arrangements for other projects where contracts are made in United States Dollar. C. Procurement 15. UNOPS will apply its own procurement procedures as Alternative Procurement Arrangements found acceptable to the Bank under other agreements and allowed by the Procurement Framework Policy (Section III.F). 16. UNOPS will be responsible for: (i) implementing the procurement plan as agreed with the Bank; (ii) preparing quarterly reports on the progress of procurement implementation; (iii) reporting on the indicators in the results framework; (iv) providing other relevant performance information to the World Bank as requested; and (v) ensuring pre-screening of companies/individuals prior to award any contract financed by the Project against the Bank’s lists of sanctioned or temporarily suspended companies; this includes ensuring that all Implementing Partners have procedures in place for such screening. 17. UNOPS will ensure that the project procurement unit is adequately staffed with one qualified international procurement staff and at least two qualified national procurement specialists to conduct day-to-day procurement functions. UNOPS will ensure that all Implementing Partners have sufficient and experienced procurement staff with adequate skills to carry out the procurement functions under the Project. 18. UNOPS has a procurement team within its office in Sana’a. The team is, led by an experienced international procurement specialist who oversees four national procurement staff to carry out day-to- day implementation of procurement activities. The team is also supported by an experienced procurement team in the regional office in Amman. 19. UNOPS will work with RAP for enhanced implementation support. UNOPS has assessed this local partner’s technical, financial, procurement as well as environmental and social management capacity. Accordingly, UNOPS will decide on an appropriate contractual arrangement with RAP in accordance with its own operational guidelines and under terms satisfactory to the Bank. RAP will play a critical role on technical aspects, such as coordinating with local stakeholders, identifying initial investments, and preparing initial specifications. UNOPS will retain full fiduciary responsibility and accountability for procurements carried out by any local partner if any. During project implementation, UNOPS may engage additional local partners, if deemed necessary, after consulting with the World Bank and under terms satisfactory to the Bank. Page 51 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) ANNEX 2: Rural Roads Selection and Prioritization Methodology 1. The Rural Access Program RAP has a well-established methodology for prioritizing and selection of rural secondary and tertiary roads for investment. The screening of roads involves socio-economic, engineering, environmental and social impact analysis. The primary objective is to establish a detailed operational framework for rational, effective, and efficient prioritization procedure for the improvements and upgrading of the rural roads, by efficient utilization of available resources. 2. The process takes into consideration the population served; the geometry and existing condition of the road network in each Governorate; special features in the Governorate which require access; current and future commercial and agricultural requirements; the environment; and the finance available for maintenance budgeting. Other factors considered are poverty and the availability of essential services. 3. By a process of data collection, field survey, stakeholder discussion and GIS analysis, information is sought, examined, and evaluated, then the criteria set, and a prioritized list of projects recommended. Additional information is usually obtained for tertiary roads, population, population density and poverty, is used in a GIS format to determine areas displaying the most distress. The long-term planning of the rural roads focus on how rural roads will be positioned to meet the emerging requirements of the community served by the road. This can be achieved by recognizing the impact roads have on the wider community and the contribution they can make to the community’s socio-economic objectives. Methodology for Selection 4. To achieve the purpose of rural roads planning, each candidate subproject is given a score/weight based on the following criteria: • The secondary or tertiary road categories, score (25 percent). • The Cost/Benefit Index the cost per beneficiary ratio, score (25 percent). • The indirect population taken as the district population being served by the road, score (15 percent). • The terrain where the road is flat, rolling or mountainous, score (10 percent). • The poverty of the district served by the road, score (25 percent). 5. The scores for the above criteria are added together to obtain a total score and the priority for the road project. This assessment is undertaken for both secondary and tertiary road projects. 6. Priorities are decided on the basis of the role of the road in the network and the cost per beneficiary which relate to population benefiting from road expenditure. Incorporating the above, the final outcome should support the following principles: • The road will provide access for all people, and will assist the rural community economy • There will be adequate finance for the project Page 52 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) • RAP will ensure a sustainable road network • Flexibility to increase (or decrease) expenditure on funded projects. 7. Digital mapping analysis is used to select those areas where road access is required. The method to determine and analyses areas requiring new road access involves a system of overlaying a base road map with various socio-economic, geographical and service utility mapping representations. By this graphical investigation, RAP can resolve geographical areas and services which are isolated from reasonable access to markets and health and educational facilities etc. 8. The analysis requirements of each overlay (layer) are noted below: a. The location and population information on each village within the Governorate. b. A buffer zone of 2-kilometres width (for asphalt roads), 1.5 kilometers (for gravel roads) and 1 kilometer (for earth roads) is established along each side of the existing roads on the base map. For purpose of the analysis, it is assumed that all villages located within the buffer zones are accommodated by that road. The areas outside all buffers are noted as ‘distressed’ areas for road access. “Distressed areas” in terms of road access “Distressed areas” in terms of road access “Distressed areas” in terms of road access “Distressed areas” in terms of road access “Distressed areas” in terms of road access Buffers are superimposed on each side of the existing roads to identify ‘distressed’ areas where the communities have limited road access. 9. The method chosen to prioritize the secondary road project list is as follows: a. The Category of the road project (25 percent of total), GC-DC: Governorate Capital to District Centre (1 point), DC-DC: District Centre to other District Centre (2 points), PR-DC: Primary Road to District Centre (3 points), PR-PR: Primary Road to Primary Road (4 points), Other: Other secondary road to population centers or to other governorate (5 points). Page 53 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) b. C/B Index (25 percent of total) 0-20 US$/Beneficiary (1 point), 21-50 (2 points), 51-100 (3 points), 101-150 (4 points), >150 (5 points). c. Indirect population (15 percent) divide max district population by the district population concerned with max number 5. d. Terrain (10 percent of total) Flat F (5 points), Rolling R (3 points), Mountains M (1 point). e. Poverty (25 percent of total) 0-20 percent poverty (5 points), 21-30 percent (4 points), 31-40 percent (3 points), 41-50 percent (2 points), > 50 percent (1 point). 10. Each points total is multiplied by 20 to bring the possible total to 100 points. The lower the final points score the higher the priority. Max Points x - Criteria percentage Points Times 20 percentage Category 25 percent 1-5 1.25 25 C/B Index 25 percent 1-5 1.25 25 District Population 15 percent 1-5 0.75 15 Terrain 10 percent 1-5 0.5 10 Poverty 25 percent 1-5 1.25 25 Total 100 percent 5.0 100 11. The proposed project will consider additional dimensions such as vulnerability to climate change, food security, conflict, disadvantaged groups (IDPs, women, youth) to the framework and refine the currently prioritized list of sub projects. Special attention will be given to “do no harm” that improved roads will not be a platform for warring parties to fight on and affect the supposed beneficiary communities. The selection would therefore avoid subprojects from areas of active or potential conflict. The multiplier effect of other planned and ongoing Bank financed operations in the proposed project area will be factored in informing sub-project selection, prioritization, and design. The project will benefit from the ongoing effort to develop a geospatial platform to synergize operations for a maximum impact on increasing food security, alleviating access constraints to basic services such as health, education, market and strengthen the agriculture-logistics-market value chain. Page 54 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) ANNEX 3: Gender Action Plan 1. In Yemen, more than 16 million people, mostly women and children are food insecure, of which about 15 million are suffering from acute hunger.1 Women are more severely affected than men[3] - due to a lack of job opportunities; female-headed households are particularly vulnerable to food insecurity as they have fewer assets to begin with. In most local marketplaces, women are mostly excluded from commercial interactions. Mobility restrictions (for security and cultural reasons) are frequently an impediment to women and girls accessing humanitarian distribution locations. 2. Already faced with many challenges before the war, the lack of access to basic services and income opportunities, the on-going conflict, and the internal and external migration of rural male labor in search of income have forced rural women to take on more and more responsibilities. For example, women’s access to economic opportunities in Yemen is very limited, with a female labor force participation rate of only 6.2 percent compared to 72 percent for men (WDI 2019). The effects of the conflict have disproportionately impacted women’s access to and participation in the economy, with job losses at an average of 28 percent among women compared to 11 percent among men (Al Ammar et al. 2019). While the percentage of self-employed females (61.57 percent) exceeds that of self-employed males (54.57 percent), men occupy the vast share of employer and employee positions, and a higher number of women (60.65 percent) are represented in vulnerable work as own-account workers and contributing family workers (ILO, 2019). Latest ILO Stats data for the overall share of women in managerial positions indicates that it is the lowest in Yemen (4 percent) for the MENA region (e.g., compared to 22 percent for Iraq and 18 percent for Palestine for instance). Firms owned by women in Yemen are even lower representing less than one percent (WB Enterprise survey 2014).27 3. Furthermore, women’s mobility is greatly constrained in Yemen’s rural areas. Data collected for a 2011 study on rural transport in Yemen indicated that men and women move differently: they move as much but while women remain mainly in the confines of the village, men tend to go further and use motorized means of transport more. Walking is the main transport mode in rural Yemen for both men and women. Motorized means of transport are used by men for transport outside the village to the market or the district center. Women use them on exceptional basis, and mainly to reach health care facilities or in case of health emergencies. Pick-up trucks are the preferred, most used, most available, and most convenient means of motorized transport in rural Yemen. However, this mean is not socially acceptable for women, who prefer to use passenger cars. Transport tariffs are similar for men and women. However, transport costs are 50 percent higher for women who usually need special seating conditions and are accompanied by a ‘mahram’.28 However, because women do not have control over the household resources, their ability to pay for transport is also lower. 29 4. The Project will promote gender equality by supporting equal rights to jobs and access to markets and services. Better rural roads will benefit females disproportionately because of their improved access to markets and thus water and LPG cylinders instead of having to collect firewood. The roads that will be rehabilitated will link villages to health clinics and schools, so that women and girls will benefit from better [3]CEN, Yemen FY20-FY21 27 Among the top issues faced by women owned businesses in the region is access to skills development. 28 An adult, male family member considered safe for a woman or a girl to be accompanied by. 29 Gender and Transport in the Middle East and North Africa Region: Case studies from the West Bank and Yemen. 2011. Transport and Energy Unit. Middle East and North Africa Region. World Bank. Page 55 of 56 The World Bank Emergency Lifeline Connectivity Project (P177053) access. Further, the project will identify transport patterns needs and constraints of women and men in rural areas by using surveys and focus groups. It will provide support for women’s participation in microenterprises for road rehabilitation and maintenance, including training for women and men on business management and road rehabilitation, and explore opportunities for increasing the density of rural markets by fostering local women’s trade organizations and cooperatives. The business management training will provide opportunities for women to build skills in running and managing their enterprise operations. To encourage women’s role in technical and managerial positions, the project will set up a partnership with local universities to offer internship programs for women in the Rural Access Program (RAP) and Rural Management Fund (RMF). It will also provide technical assistance to RAP and the RMF to establish social/gender positions within agency staffing and incorporate a gender sensitive approach in monitoring and evaluation systems and procedural manuals. As part of the project’s processes, female liaison officers will be hired to guarantee efficient communication and discussions among hard-to-reach women in rural communities and to aid the Project's broader public outreach and engagement efforts. Female liaison officers will be responsible for not only communicating about opportunities and benefits of the project but can also provide insight into what types of positions women are likely to take on in the project works, based on their targeted discussions with communities. 5. To measure the impact on progress in women’s access to economic and market opportunities, indicators will evaluate the (i) number of micro-enterprises created and trained in a sex-disaggregated way, (ii) number of females internship provided in RMF in road maintenance; and iii) number of labor days generated through direct employment by the Project (Number), of which 10 percent will be represented by women. Page 56 of 56