Document of The World Bank Report No: NCO00003890 NOTE ON CANCELLED OPERATION REPORT (TF-14361) ON A GRANT IN THE AMOUNT OF US$1,250,000 TO THE REPUBLIC OF INDONESIA FOR A PNPM VILLAGE TRAINING PROJECT June 14, 2016 Global Practice for Social, Urban, Rural and Resilience Indonesia Country Management Unit East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2015) Currency Unit = Indonesian Rupiah US$ 1.00 = IDR13,797 FISCAL YEAR [January 1 – December 31] ABBREVIATIONS AND ACRONYMS ACS Administrative Client Support APBN Anggaran Pendapatan dan Belanja Negara (National State Budget) ASF Administrative Support Firm BAPPEDA Badan Perencanaan Pembangunan Daerah (Regional Development Planning Agency) BAPPENAS Badan Perencanaan Pembangunan Nasional (National Development Planning Agency BETF Bank Executed Trust Fund BPD Badan Permusyawaratan Desa (Village Council) CDD Community Driven Development CLT Country Leadership Team (of the Bank) CPS Country Partnership Strategy CSO Civil Society Organization DFAT Department of Foreign Affairs and Trade DIPA Daftar Isian Pelaksanaan Anggaran (Government Budget Authorization Document) GOI Government of Indonesia GP Global Practice IDR Currency Code for the Indonesian Rupiah (Rp.) ISR Implementation Status and Results Report KOMPAK Kolaborasi Masyarakat dan Pelayanan untuk Kesejahteraan (DFAT funded project) KPI Key Performance Indicator LPM Lembaga Pemberdayaan Masyarakat (Village Empowerment Body) MOHA Ministry of Home Affairs (Kementerian Dalam Negeri) MOF Ministry of Finance (Kementerian Keuangan) MOVDAT / Ministry of Villages, Disadvantaged Areas and Transmigration MOV (Kementerian Desa, Daerah Tertinggal dan Transmigrasi) MP3KI Master Plan Percepatan dan Perluasan Pengurangan Kemiskinan di Indonesia (Master Plan for Acceleration and Expansion of Indonesian Poverty Alleviation) i NCO Note on Cancelled Operation NGO Non-Government Organization OPCS Operations Policy and Country Services P3BM Pro-poor Planning, Budgeting and Monitoring PCN Project Concept Note PDO Project Development Objective PIU Project Implementation Unit PNPM Program Nasional Pemberdayaan Masyarakat (National Program for Community Empowerment) PMD Direktorat Jenderal Pemberdayaan Masyarakat dan Desa (Directorate General for Community and Village Empowerment ), Ministry of Home Affairs PPMD Pembangunan dan Pemberdayaan Masyarakat dan Desa (Directorate General for Community and Village Empowerment and Development PSF PNPM Support Facility SKPD Satuan Kerja Pemerintah Daerah (Local Government Technical Agency) TAL Technical Assistance Lending TKPKD Tim Kordinasi Penanggulanan Kemiskinan Daerah (Regional Coordination Team for Poverty Reduction) TNP2K Tim Nasional Percepatan Penanggulangan Kemiskinan (National Team for Accelerating Poverty Reduction) TTL Task Team Leader US$ United States Dollar VTP Village Training Project Vice President: Victoria Kwakwa Country Director: Rodrigo A. Chaves GP Senior Director: Ede Jorge Ijjasz-Vasquez GP Director: Maninder S. Gill Program Manager: Kevin A. Tomlinson Project Team Leader: Bambang Soetono NCO Team Leader: Bambang Soetono ii COUNTRY PNPM Village Training Project CONTENTS Data Sheet A. Basic Information…………………………..…………………………………………….iv B. Key Dates………………………………………………………………………………….iv C. Ratings Summary………………………………………………………………………….iv D. Sector and Theme Codes………………………………………………………………….iv E. Bank Staff………………………………………………………………………………….v F. Ratings of Program Performance in ISRs………………………………………………….v 1. Context, Project Development Objectives, and Design............................................. 1 2. Post-Approval Experience and Reasons for Cancellation ......................................... 4 3. Relevance of Objective and Design.......................................................................... 7 4. Assessment of Bank Performance ............................................................................ 8 5. Assessment of Borrower Performance ..................................................................... 9 6. Lessons Learned .................................................................................................... 10 Annex 1. Bank Lending and Implementation Support/Supervision Processes ............. 11 Annex 2. List of Supporting Documents ................................................................... 12 MAP iii A. Basic Information ID-PNPM Village Country: Indonesia Project Name: Training Project Project ID: P132945 L/C/TF Number(s): TF-14361 NCO Date: 06/15/2016 DG COMMUNITY Lending Instrument: TAL Borrower: AND VILLAGE EMPOWERMENT, MI Original Total USD 1.25M Disbursed Amount: USD 0.00M Commitment: Revised Amount: USD 0.00M Environmental Category: C Implementing Agencies: DG Village Governance, Ministry of Home Affairs (MOHA) Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 01/16/2013 Effectiveness: 03/25/2014 Appraisal: Closing: 12/31/2015 12/31/2015 Approval: 03/04/2013 C. Ratings Summary Performance Rating by NCO Outcomes: Not Applicable Risk to Development Outcome: Not Applicable Bank Performance: Moderately Unsatisfactory Grantee Performance: Unsatisfactory D. Sector and Theme Codes Original Sector Code (as % of total Bank financing) Sub-national government administration 100 Theme Code (as % of total Bank financing) Other accountability/anti-corruption 30 Other public sector governance 30 Other rural development 40 iv E. Bank Staff Positions At NCO At Approval Vice President: Victoria Kwakwa Axel van Trotsenburg Country Director: Rodrigo A. Chaves Rodrigo A. Chaves Program Manager: Kevin A Tomlinson Susanne Holste Project Team Leader: Bambang Soetono Hans Antlov NCO Team Leader: Bambang Soetono F. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 06/30/2014 Satisfactory Moderately Satisfactory 0.00 Moderately Moderately 2 01/12/2015 0.28 Unsatisfactory Unsatisfactory Moderately Moderately 3 08/18/2015 0.28 Unsatisfactory Unsatisfactory 4 12/28/2015 Unsatisfactory Unsatisfactory 0.28 v 1. Context, Project Development Objectives, and Design 1.1 Context at Appraisal The National Program for Community Empowerment (Program Nasional Pemberdayaan Masyarakat, PNPM) is the Indonesian Government’s flagship poverty reduction and community empowerment program, and has been the main program for building village capacity in Indonesia. Given its objective to improve socio-economic conditions and local governance in Indonesia, PNPM provided regular training programs by facilitators in competencies such as financial management, development planning, good governance and leadership skills. In January 2014, the President of Indonesia signed the Village Law into effect. The law effectively increased the authority and resources available to village governments to manage funds and provide public services, and was developed as part of a broader framework to optimize the impact of decentralization and poverty reduction initiatives. However as village governments’ authority grew, an increasing need emerged to balance these newfound powers with improved capacity and accountability mechanisms to ensure village governments had the necessary skills and systems to effectively implement the law. At the time, it was widely acknowledged that Government of Indonesia’s (GOI) regular capacity-development efforts for village governments and other village stakeholders were not yet comprehensive and effective. Training materials were often theoretical and normative, and used methodologies based on lectures and socialization rather than on adult learning techniques (including problem-based and collaborative learning). Further, training did not effectively address community-level development issues and topics (such as pro- poor planning, budgeting and transparency of information) and participants often went back to their villages without follow-up support. Addressing these weaknesses would require substantial investments in building the capacities of village governments and key institutions. The Directorate General for Community and Village Empowerment of the Ministry of Home Affairs (MOHA) - Direktorat Jenderal Pemberdayaan Masyarakat dan Desa (PMD 1 ), the implementing agency for the IBRD financed National Program for Community Empowerment in Rural Areas (PNPM Rural) 2012-2015 (P128832), requested assistance in the form of a PNPM Village Training Project (VTP). It was envisioned that the VTP would help strengthen the capacity of village government officials to prepare them for increased responsibilities and inflows of resources under the GOI’s new decentralization framework; and help explore options to improve the capacities of related village institutions, such as the Village Council (Badan Permusyawaratan Desa, BPD) and the Village Empowerment Institution (Lembaga Pemberdayaan Masyarakat, LPM). 1 Direktorat Jenderal Pemberdayaan Masyarakat Desa (Directorate General of Community Empowerment) - Ditjen PMD has since been renamed to Direktoral Jenderal Bina Pemerintah Desa or Ditjen Bina Pemdes (Directorate General of Village Government Oversight). 1 The VTP was aligned with the country’s master plan for “Acceleration and Expansion of Indonesia’s Economic Development 2011-2025”, which seeks to accelerate development through a pro-growth, pro-jobs, pro-poor and pro-green strategy. It was also aligned with the Bank’s Indonesia County Partnership Strategy for FY2013 -2105, particularly the local government and community development engagement areas. 1.2 The Project Development Objective The Project Development Objective (PDO) was “to develop and pilot a Government training program for village authorities on core functions and skills in order to prepare villages for responsibilities and inflows of resources under the new decentralization framework”. The project aimed to support the design of a comprehensive capacity development program for Indonesian villages. Capacity development was geared towards the individual level (experience, knowledge and skills), organizational arrangements (systems, procedures and institutional framework) and the enabling environment (policies, legislation, power relations and social norms). The VTP had three components: Component Budget Percentage Allocation Component 1: Development of an improved village US$944,000 75.5% training program. This component was to support the design of a training program for village government and key institutions. The key activities encompassed:  reviewing existing GOI and civil-society training materials  identifying key institutions to be trained and their learning needs; and  developing a training program for members of various village institutions based on PNPM principles and modules to prepare them for increased responsibilities and inflows of resources under the new decentralization framework. Component 2: Capacity enhancement of GOI US$171,000 13.7% training agencies and selected NGOs. This component focused on building the capacity of GOI training agencies (PMD, local PMD branches and training institutes) and trainers to strengthen the capacity of village institutions. 2 Component Budget Percentage Allocation Component 3: Strengthening Policy and Mechanism US$135,000 10.8% in village capacity building. This component focused on advising and providing inputs on the proposed national strategy of village capacity-building (Master Plan) in order to support the Village Law and self- community governing in Indonesia, as well as to align the policies and agenda of the GOI’s VTP with the PNPM Road Map and the Village Law. Total US$1,250,000 100% The key performance indicators for the project were:  Ten GOI training agencies have incorporated the improved training design and modules into their training program/agenda;  Five laws/regulations/guidelines developed and/or revised with the input from the project to support community-based institutional development;  Ten village training modules revised;  Ten policy recommendations on village and community-based institutional development produced and discussed with relevant parties; and  Five hundred master trainers trained. There were no revisions to either the PDO or project components. 1.3 Implementation Arrangements The project was to be implemented by PMD, the Directorate General which was responsible for PNPM. An Administrative Support Firm (ASF) was to be contracted to act as the Project Implementation Unit (PIU) to support VTP implementation. It was envisioned that the project would include an Advisory Group made up of representatives from the key GOI ministries related to village capacity and community development - including PMD, the National Development Planning Agency (Badan Perencanaan Pembangunan Nasional, BAPPENAS), the National Team for Accelerating Poverty Reduction (Tim Nasional Percepatan Penanggulangan Kemiskinan, TNP2K), as well as selected universities and civil society organizations (CSOs) concerned with village governance. The Advisory Group’s primary role was to advise the PMD on key substantive issues and to ensure the quality of services delivered. A Bank-Executed Trust Fund (BETF, TF013721 - US$ 395,000) was established to provide implementation support and technical assistance to the project, especially in terms 3 of reviewing existing training programs, public consultations and workshops, and supervising the implementation of project activities over a two-year period. The BETF was established to cover any initial works that needed to be undertaken to support the Directorate for Village and Ward Governments at PMD, which had not previously worked with the World Bank. The project was expected to require significant management and technical assistance in navigating the relatively complex project start-up and initial implementation phase. 2. Post-Approval Experience and Reasons for Cancellation. The project was never officially cancelled and concluded at the original grant closing date of December 31, 2015. However over the project life, the majority of project activities were not implemented and total disbursement was below 5% of the total grant amount.2 The following provides a brief overview of key events, issues and obstacles, as documented and verbally reported in interviews with key stakeholders. Stage 1 – Administrative Delays around Project Start-up (March 2014 – May 2015) The VTP was approved in March 2014. The first disbursement was made seven months later in October 2014, due to PMD’s delays in entering the project into the revised Government Budget Authorization Document or Daftar Isian Pelaksanaan Anggaran (DIPA) for 2014, which is required to officially confirm the GOI commitment to manage the project. The project was then further delayed for another seven months due to the introduction of new national procurement guidelines, which complicated and delayed the process for procuring the services of the ASF to act as the PIU. Under these new guidelines, the procurement, which was previously approved at the Directorate level, had to be reapproved at the Ministry level. At the Ministry level, procurement submissions are made together in periodic “rounds” and include submissions from across the Ministry. If one is rejected, all must wait until subsequent rounds. Given the importance of advancing the initiative, particularly in the context of pressing timeframes envisaged with the roll-out of the Village Law, the Bank Task Team Leader agreed to use a BETF in the amount of IDR 984,775,0003 to contract a local company to “support the preparation of the overarching project design” in conjunction with PMD. This support was provided between November 2013 and August 2014 and included the provision of additional local technical expertise to support MOHA with a range of preparatory activities including surveys, public consultations, workshops and the piloting of training. 2 There was no recipient executed trust fund project related expenditure during the implementation period, all monies have been return from the MOF to the World Bank excluding $19.50 in bank charges. 3 Approximately US$83,000. 4 Stage 2 - Institutional Changes (October 2014 – May 2015) While VTP was clearly a much-needed initiative, it suffered from a range of institutional uncertainties and was heavily affected by the GOI’s transition from the Yudhoyono to the Widodo Administration and the subsequent new ministerial restructuring and appointments. During this time, alternative resources outside of the grant financing were therefore used to support key activities. In October 2014, at the time of Indonesian President Widodo’s inauguration, a Presidential Regulation was issued on the “Task s and Functions of Working Cabinet,” which divided and delineated the roles of managing Village Law implementation between two Ministries: MOHA and the newly-created Ministry of Villages, Disadvantaged Areas and Transmigration (MOVDAT). With the establishment of a new ministerial structure, responsibility for implementing PNPM-related activities (including the VTP) was transferred from MOHA to the MOVDAT. 4 As a result of this transfer, there was significant confusion over the demarcation of responsibility for issues that had previously been the responsibility of MOHA and were now split between the two agencies. The new institutional arrangements took some time to evolve, with clarification provided by Presidential Regulation No. 11/2015 on the organizational structure of the MOHA, and Presidential Regulation No. 12/2015 on the organizational structure of the MOVDAT. Under these regulations, MOHA remained responsible for matters related to village government, while MOVDAT took responsibility for matters related to village development and community empowerment. Following this clarification, a meeting was held on May 7, 2015, where it was agreed that VTP should be returned to MOHA (from MOVDAT). From this meeting, two agreements, were reached, including: 1) Secretary-General of MOVDAT would submit a letter to DG Budget, MOF to release responsibility for the VTP grant; and 2) Secretary-General of MOHA would propose a top-up for the DIPA of PMD.5 At this time, MOHA indicated that it was willing to resume management of the VTP on the condition that the grant implementation period was extended from December 31, 2015 to December 31, 2016 and the project was restructured. Stage 3 – Further Administrative Delays (May – December 2015) In May 2015 a formal letter from MOF acknowledged the return of VTP to PMD, MOHA, however there was no DIPA allocation to support this. The Bank wrote to MOF in early June stating that a formal request for grant closing extension and restructuring was required and asked that it be sent before the end of June. However the formal letter from MOHA 4 At this time the DIPA was transferred from MOHA to MOVDAT, and therefore DIPA listing for VTP under MOHA was voided. 5 Letter by Director of Loan and Grant, MOF dated 19 May 2015 to distribute the agreements and minutes of meeting on arrangement of VTP. The meeting was held at 7 May 2015 and attended by MOHA, MOVDAT, MOF, Bappenas and the World Bank. 5 did not arrive until December 11, 2015, which was too late for the Bank to process the restructuring and extension. Implementation Support – 2015 During the time between project concept review (January 2013) and when the project was included in the DIPA (October 2014), MOHA secured alternative resources to begin financing VTP related activities. In 2013 and 2014, the BETF supported technical assistance on the project design and preparatory activities, including surveys, public consultations, workshops and training. During 2015, a new project called the “Village Government Strengthening Project”, financed under the Australian Governme nt’s Kolaborasi Masyarakat dan Pelayanan untuk Kesejahteraan (KOMPAK) program, provided support to continue both village apparatus training and policy advice on strengthening the framework for Village Law. As a result, the VTP design was effectively implemented from early 2015 with financial and management support from KOMPAK, 6 together with technical support from the Bank’s Village Law Trust Fund.7 The table below provides an overview of key events and delays. Key Events Date/Reference CLT endorsement of the project October 2012 Project Concept Note Approval January 16, 2013 Internal Bank Appraisal process (financial March 4, 2013 management, procurement, safeguards, legal) Draft Grant Agreement consultations and agreement October 2013 (World Bank and GOI – MOF/MOHA) Bank approval of the MOHA drafted Project November 2013 – January 2014 Management Manual (PMM) Signing of Grant Agreement (World Bank) February 25, 2014 Signing of Grant Agreement (GOI) March 25, 2014 National Government Restructuring, the division of October 27, 2014 (Presidential roles on village issues into two ministries Regulation No. 165/2014 on Tasks and Functions of Working Cabinet) January 21, 2015 (Presidential Regulation No. 11/2015 on MOHA) 6 KOMPAK progress Report 2, p8. 7 The BETF provided implementation support to the PMD in the form of: (i) workshops and policy advice for the overall design of the roll-out of village training in 2015, (ii) technical assistance to facilitate the drafting of Government Regulations (Peraturan Pemerintah) and technical guidelines related to the implementation of the Village Law, and (iii) advice on the training materials, encompassing topics such as development planning, financial management, village legal document drafting and village councils. 6 Key Events Date/Reference The establishment of MOVDAT resulted in some January 21, 2015 (Presidential key counterparts staff from MOHA moving to Regulation No. 12/2015 on MOVDAT MOVDAT Meeting regarding the place of VTP in the context of May 7, 2015 changed roles within Ministries and decision that VTP should return to MOHA Letter from MOVDAT to release the VTP grant May 7, 2015 Letter from MOF to all participants on the agreements and minutes of the meeting May 19, 2015 Letter from the World Bank to MOF, giving in- June 9, 2015 principle approval pending a formal letter of request for return of VTP to MOHA, and if required, to restructure and extend the grant closing date Letter from MOF on allocation of VTP budget August 14, 2015 Second letter from MOVDAT to release September 30, 2015 responsibility for the VTP grant As follow up to the Bank ’s letter of June 9, 2015, October 2015 several emails were sent from the Bank to MOHA requesting urgent action to provide the necessary formal letter of request for the extension/restructuring. The email of October 16 included the draft terms of reference for a mid-term review mission (which was to look into the issue of restructuring). Official letter of request to World Bank from MOHA December 11, 2015 to request extension and restructuring of VTP Official Closure of Project December 31, 2015 Return of unused funds March 2016 3. Relevance of Objective and Design Rating for Relevance of Objective: Substantial The project’s objective was relevant to supporting the GOI in implementing Village Law (enacted January 2014) as it was envisioned that VTP would help:  strengthen the capacity of village government officials to prepare them for increased responsibilities and inflows of resources under the GOI’s new decentralization framework; and  explore options to improve the capacities of related village institutions, such as the Village Council (Badan Permusyawaratan Desa, BPD) and the Village Empowerment Institution (Lembaga Pemberdayaan Masyarakat, LPM). However overtime, it became apparent that the PDO was too broad, unclear, difficult to measure, and too ambitious given the delineated timeframe and available resources. 7 Rating for Relevance of Design: Low The Project’s design and implementation arrangements are typical of CDD projects within the Bank’s portfolio, specifically projects under PNPM. The Bank’s support for this Project consisted of providing: (i) grants from a Trust Fund to support the Directorate for Village and Ward Governments at PMD to improve their capacity development program for village government and key village institutions; and (ii) a sizeable BETF for the management oversight and implementation support. However, the broad and vague nature of the objectives meant that the Project’s components, and activities were difficult to measure. Further, it was difficult to show how these activities and their outputs directly attributed to the achievement of the Project’s objectives. In addition, the original design did not anticipate the problems faced on the ground in light of the new decentralized framework under Village Law and government institutional changes. These problems included a lack capacity among village apparatus and other relevant Village institutions; the absence of adequate training approaches, design and methodologies; and the need for new relevant implementing policies and regulations of Village Law particularly on village capacity building. As the project did not adequately anticipate and address these issues, the overall design was not particularly relevant to the Client’s needs at the time. 4. Assessment of Bank Performance (a) Bank Performance in Quality at Entry Rating: Moderately Unsatisfactory The project design was developed in a collaborative way with selected staff from PMD. However, the PDO was unclear, too broad for the delineated timeframe and resources available, too ambitious and difficult to measure. The project’s logic and its causal chain (from project inputs to outputs to outcomes to PDO) was not clear and attributable. The indicators also did not include any references to gender. The Project Concept Note (PCN) and Project Paper identified two substantial risks. First, that PMD lacked the capacity to manage the project. In order to help mitigate this risk, the task team stated that it would frequently monitor implementation of the project through a separate BETF; identify and agree on specific strengthening measures after a procurement capacity assessment during project preparation; and establish a secretariat consisting of expert staff at PMD. The second substantial risk identified included risks relating to Financial Management. To mitigate this risk, the team stated that PMD would develop a Project Management Manual (technical guidelines) approved by the Bank prior to signing of Grant Agreement. The overall risk rating was “Moderate” and with adequate mitigation measures established. 8 Based on the appraisal summary and taking into account mitigation measures, risks associated with financial management, procurement and safeguards were manageable. The Environmental Assessment for VTP was category C. (b) Bank Performance in Quality of Supervision Rating: Moderately Unsatisfactory The task team made extensive efforts to advance the project’s progress in a difficult and changing political environment, which involved numerous stakeholders from a variety of GOI departments. With BETF support, the team demonstrated flexibility in providing a range of inputs and technical support, and as noted above, was able to achieve some progress in the absence of any grant expenditures. The Bank delivered quarterly and annual reports to track and document VTP progress, as well as implementation status reports (ISRs), despite the absence of any reporting from the borrower. While the ISRs were candid, no initial ISR was prepared and the project was downgraded to Moderately Unsatisfactory (MU) after 22 months with little disbursement and no grant financing for any of the activities. In the absence of grant execution, the team continued to support the implementing agency to execute activities that were supposed to be funded by the project. This support entailed the use of resources of the available APBN budget (Anggaran Pendapatan dan Belanja Negara), other donors/agencies such as KOMPAK and the Bank’s BETF for the Project. 5. Assessment of Borrower Performance (a) Borrower Performance in Quality at Entry Rating: Moderately Satisfactory The delays in project preparation were largely around capacity constraints in the Directorate for Village and Ward Governments in PMD, which were exacerbated by the directorate’s limited experience working with the Bank. The technical assistance provided through the BETF supplemented their capacity, as intended. Moreover, the debut of new Government procurement guidelines also delayed the project's implementation, because an ASF could not be hired in a timely fashion. In summary VTP had a difficult start, stemming from the borrower’s multiple bureaucratic delays and lack of experience working with the World Bank. (b) Borrower Performance in Quality of Supervision Rating: Unsatisfactory For reasons both within and outside of their control, PMD (the implementing agency), never utilized the grant financing. Despite the project’s readiness to implement activities at the time the project was approved, PMD was unable to program the grant financing into the DIPA, despite having lead time. As a result, the first disbursement was not made until 9 seven months after project approval. The grant financing was then never actually used as alternative resources were identified during these delays. As explained above, implementation progress was further hampered by a change in the national procurement guidelines, which necessitated procurement approvals at the ministerial level; while at the time of project approval, procurement was approved at the Directorate level. This change in procurement policy resulted in a further seven-month delay as PMD was unable to finance the PIU. The Presidential transition, subsequent reshuffling of cabinet ministers and the creation of MOVDAT (which was temporarily identified as the new implementing agency for the VTP), adversely impacted project implementation. In May 2015, with project closing scheduled for seven months away, a decision was taken by the Ministry of Finance to “return” 8 VTP to MOHA PMD for implementation. The Bank and PMD discussed a project restructuring, which would include reprogramming and extending the project. The formal request from MOHA, which was required by the Bank to process the extension, was received almost six months late and was therefore too late to act on. PMD did also not meet its commitments, as per the Grant Agreement with the Bank, to submit quarterly progress and financial reports prepared by the borrower. The reports would have been a useful tool by which counterparts could be encouraged to identify and explain any obstacles and delays they experienced in mobilizing and/or implementing the project. The reports also provide the borrower with an opportunity to formally flag alternative resources to support project implementation. 6. Lessons Learned Critical communications need to be targeted at key decision-makers. Much of the communication to attempt to resolve obstacles and bureaucratic hurdles occurred at middle-management levels (echelons II-III), rather than with key decision-makers at the Director General and/or Secretary General levels. This meant that while counterpart staff may have voiced verbal agreements to various issues and proposed actions, they were not in a position to affect action. The task team did not pursue the implementing agency about their outstanding progress and financial reports, despite it being a requirement under the Grant Agreement. This is arguably understandable, given the lack of progress in implementation. However upon reflection, it would have been useful for the team to pursue this requirement as developing the reports may have prompted the 8 The Grant Agreement between MOF and the Bank was never amended to transfer implementation of VTP from MOHA to MOVDAT. 10 Annex 1. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Jan Weetjens Lead Social Development Specialist EASID Sector Manager Hans Antlov Sr. Social Development Specialist EASID Task Team Leader Achmad Zacky Wasaraka Procurement Analyst EASRI Procurement I Gusti Ngurah Wijaya Kusuma Financial Management Specialist EAPFM Financial Management Arip Syaman Sholeh Financial Management Specialist EAPFM Financial Management Zulfi Novriandi Operation Analyst EASID Procurement Juan Martinez Sr. Social Scientist EASIS Safeguards Rani Dewi Maharani Team Assistant EACIF Administration Unggul Suprayitno Sr. Financial Management Specialist EAPFM Financial Management Grace Palayukan Consultant EASID Project Management Muhammad Fithriadi Consultant EASID Project Management Mariangeles Sabella Sr. Counsel LEGES Legal Ria Nuri Dharmawan Jr. Counsel LEGES Legal Chatarina Ayu Widiarti Program Assistant EACIF Project Operations Supervision/NCO Kevin Tomlinson Program Manager GSUID Program Manager Bambang Soetono Social Development Specialist GSUID Task Team Leader (2) Achmad Zacky Wasaraka Procurement Analyst GGO08 Procurement Ahsan Ali Lead Procurement Specialist GGO08 Procurement I Gusti Ngurah Wijaya Kusuma Financial Management Specialist GGO20 Financial Management Rani Dewi Maharani Team Assistant EASID Administration Unggul Suprayitno Sr. Financial Management Specialist GGO20 Financial Management Grace Palayukan Consultant Project Management Muhammad Fithriadi Consultant EASID Project Management Hans Antlov Sr. Social Development Specialist EASID Task Team Leader (1) Mariangeles Sabella Sr. Counsel LEGES Legal Ria Nuri Dharmawan Counsel LEGES Legal Jan Weetjens Lead Social Development Specialist EASID Sector Manager Susanne Holste Lead Social Development Specialist EASID Sector Manager Chatarina Ayu Widiarti Program Assistant EACIF Project Operations Julie Klugman Consultant GSUID NCO (Draft) Writer Niruban Balachandran Projects Monitoring Officer GSUID Portfolio Management Patricia Astiani Team Assistant GSUID Administration 11 (b) Staff Time and Cost Staff Time and Cost Stage of Project Cycle USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY13* 18 86 Total: 18 86 Supervision/NCO FY14 11 40 FY15 8 29 22 FY16 3 11 Total: 22 80 * VTP proposal was approved by the Joint Management Committee in early April 2012 and obtained Country Leadership Team endorsement on 12 October 2012. During project preparation in FY13, VTP was partially supported by LGCD (Local Government Capacity Development) project (BETF - TF098107). 12 Annex 2. List of Supporting Documents Minutes Joint Management Committee Meeting, September 2012 Country Partnership Strategy 2013 – 2015 (CPS, report No. 76501), December 2012 Small Grant Project Concept Note, April 2013 Project Information Document Project Procurement Plan, September 2013 Safeguard Review, September 2013 Project Paper, January 13, 2014 Grant Agreement, February 2014 ISR 1, June 2014 ISR 2, January 2015 ISR 3, August 2015 ISR 4, December 2015 PSF Progress Report 2014 PSF Progress Report 2015 Email communications between Bank and GOI counterparts 13 MAP 14