The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Local Governance and Services Improvement Program (P148896) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Social, Urban, Rural and Resilience Global Practice Global Practice | Requesting Unit: MNC04 | Responsible Unit: GSU11 Special Financing | Program-for-Results Financing | FY 2016 | Team Leader(s): Christopher T. Pablo Seq No: 7 | ARCHIVED on 07-Jun-2019 | ISR37287 | Created by: Dana Mohammad Luai M. Almubaied on 23-May-2019 | Modified by: Dana Mohammad Luai M. Almubaied on 31-May-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The development objective of the proposed program is to strengthen the local government financing system and improve local servicedelivery in Program villages. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions A Program Implementation Support Mission for the Local Governance and Services Improvement Program (LGSIP) was carried out in April 2019. The mission found that the project continues to show progress in meeting its Project Development Objective. In terms of strengthening local government financing, the program has initiated predictable and timely announcement and transfer of grants to Village Councils VCs. For three (3) consecutive years, the Ministry of Finance and Planning issued a directive announcing the amounts to be allocated to VCs and completed the transfer of these grants. In FY 2019, 74.5% of the VCs received their Annual Capital Investment Grants (ACIG), surpassing the target of 60%. In terms of improving local service delivery in program villages, the project benefited a total of 338,157 people, surpassing the Mid-Term Review target of 230,000. The beneficiary survey, which would indicate the extent by which beneficiaries feel that program investments reflect their needs, is expected to be shared with Development Partners before end of June 2019. To ensure that the program sustains the momentum in achieving the Disbursement-linked Indicators (DLIs), the Ministry of Local Government (MOLG), the Ministry of Finance and Planning and the Municipal Development and Lending Fund (MDLF) need to execute the final action relating to the reform of the Transportation Fee allocation and disbursement mechanism, i.e., that at least 25% of the allocation for Local Government Units (LGUs) is disbursed according to the allocation formula introduced by the LGSIP-supported reform program). Also, MDLF needs to intensify the efforts of implementation of the approved joint projects. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P148896 TF-A1039 Effective USD 5.00 5.00 0.00 4.70 0.30 94% P148896 TF-A4511 Effective USD 13.00 13.00 0.00 2.31 10.69 18% Key Dates (by loan) 6/7/2019 Page 1 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P148896 TF-A1039 Effective 14-Mar-2016 14-Mar-2016 02-Jun-2016 31-Dec-2020 31-Dec-2020 P148896 TF-A4511 Effective 14-Mar-2017 14-Mar-2017 23-May-2017 31-Dec-2020 31-Dec-2020 Program Action Plan Action Description Decree for disbursement of grant to larger VC bank account issued Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Nov-2015 Completed Completion Decree issued and transfers are executed to large VCs annually Measurement Decree was issued and disbursement of annual capital grants are being transferred from MOLG to large VCs Comments annually. Action Description Development of program Environmental and Social Management Manual (ESSM) Source DLI# Responsibility Timing Timing Value Status Client Due Date 15-Jun-2016 Completed Completion Measurement Comments Action Description Development of the Program Operation Manual Source DLI# Responsibility Timing Timing Value Status Client Due Date 26-May-2016 Completed Completion Measurement Comments Action Description Annual Capital Investment Plans (ACIPs) prepared according to prescribed format Source DLI# Responsibility Timing Timing Value Status Client Due Date 01-Oct-2016 Completed 6/7/2019 Page 2 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Completion Measurement Comments Action Description Draft proposal prepared for revised LGU functional assignments Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 01-Mar-2018 Delayed Completion uncompleted Measurement This DLI requires more consultations with government and LGUs. A draft proposal prepared by consultants is under Comments review by the team and will be discussed Q1 of FY20. Action Description Establish Program Committee to ensure effective inter-ministerial coordination Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2015 Completed Completion Measurement Comments Action Description Allocation of the transportation fee to VCs reformed Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Jun-2018 Completed Completion Transportation Fee reform directive was approved by the Minister of Local Government Measurement Comments Action Description Design and implement a comprehensive VC/JSC monitoring system Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2016 Completed Completion Measurement 6/7/2019 Page 3 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Comments Action Description Assessment and ranking of JSCs carried out in accordance with Program schedule Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2016 Completed Completion Measurement Comments Regular training to be provided on FM, procurement, social and environment systems and participatory monitoring Action Description and evaluation focusing on women and youth, at the village council, directorate, and central levels (MDLF and MoLG) Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments All VCs to submit their budgets, annual plans, annual financial statements and audit reports to the MoLG on a regular Action Description and timely basis Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement Comments VCs to prepare annual action plan to address audit findings within a period of six months after the receipt of the audit Action Description report Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due Completion Measurement Comments 6/7/2019 Page 4 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Qualified VCs, JSCs, MDLF and MoLG post their procurement and contract award notices on single procurement Action Description portal Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due Completion Measurement Comments Action Description Procurement complaint handling mechanism and Dispute Review Unit operational Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Delayed Completion Measurement Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- High High Sector Strategies and Policies -- High High Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Substantial Substantial Other -- -- -- Overall -- High High Results 6/7/2019 Page 5 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) PDO Indicators by Objectives / Outcomes Strengthen local government financing system and improve local service delivery in Program villages. IN00707760 ►PDO indicator 1: VCs receiving transparent and predictable Annual Capital Grants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 53.00 74.50 70.00 Date 16-Sep-2015 20-Sep-2018 16-Apr-2019 31-Dec-2020 Achieved target for current year Comments IN00707781 ►PDO indicator 2: Timely communication to VCs of the formula based Annual Capital Investment Grant (ACIG) allocations and timely transfer of ACIGs to eligible VCs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 16-Sep-2015 20-Sep-2018 16-Apr-2019 31-Dec-2020 Achieved target for current year Comments IN00707782 ►PDO indicator 3: People benefiting from improved service delivery in Program villages (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 369,778.00 338,157.00 350,000.00 Date 16-Sep-2015 20-Sep-2018 16-Apr-2019 31-Dec-2020 Achieved Target for current year Comments IN00707783 ►PDO indicator 4: Beneficiaries that feel Program investments reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 No data yet. Beneficiary survey to be initiated by October 2018. Comments Intermediate Results Indicators by Results Areas Results area 1: Strengthening local government financing system IN00707784 ►One: Annual Capital Grant Allocation Formula approved by MoLG (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/7/2019 Page 6 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Value No Yes Yes Yes Date 16-Sep-2015 20-Sep-2018 16-Apr-2019 31-Dec-2020 Achieved target for current year Comments IN00707786 ►Two: Steps to improve transparency and predictability of Transportation Fee adopted by MoLG (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target By FY 18, at least 25% of Annual Capital Grants allocation to VCs is disbursed Value Not available Delayed Delayed annually per capita and on time in line with LGSIP Annual Capital Grant Flow Chart. Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 Partially achieved. Transportation Fee reform directive was submitted for approval to Cabinet of Ministers. Comments However, end target remains to be achieved. IN00707788 ►Three: Percentage of VCs submitting their annual budget to MoLG electronically on time and have disclosed budgets publicly (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 53.00 74.50 60.00 Date 16-Sep-2015 20-Sep-2018 16-Apr-2019 31-Dec-2020 Achieved target for current year of 40% Comments Results area 2: Strengthening institutional systems for improved service delivery IN00707785 ►Four: Percentage of VCs that have implemented at least 60% of their ACIPs (in terms of expenditure) by the end of each FY (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 No data yet. MOLG raised issues in measuring achievement of target for this indicator. After MTR, it was agreed with MOLG to refine this indicator to become “Percentage of VCs that have initiated the Comments implementation of their ACIPs in the same fiscal year” IN00707787 ►Five: Cumulative number of joint projects approved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 18.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 Comments Achieved target for current year 6/7/2019 Page 7 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) IN00707789 ►Six: Number of JSCs qualifying for financing under the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.00 19.00 19.00 22.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 Achieved target for current year Comments IN00707790 ►Seven: Share of vulnerable groups who participated in ACIP consultations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 31-Dec-2020 No data yet. MDLF and MOLG to identify and qualify “vulnerable groups”. Comments IN00707791 ►Eight: Direct beneficiaries (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 369,778.00 338,157.00 350,000.00 Date 16-Sep-2015 20-Sep-2018 16-Apr-2019 31-Dec-2020 Achieved target for current year Comments IN00707792 Direct beneficiaries of which female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 52.30 49.00 50.00 Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 DLI 1: Enabling steps to strengthen local governance by MoLG (Output, 1,800,000.00, 56%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes -- Date 16-Sep-2015 31-Jul-2017 31-Jul-2017 -- 20-Sep-2018 Comments ►DLI 2 DLI 3: Percentage of VCs meeting the Program eligibility criteria annually (Process, 5,000,000.00, 0%) 6/7/2019 Page 8 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 53.00 74.50 70.00 Date 16-Sep-2015 20-Sep-2018 31-May-2019 -- Comments ►DLI 3 DLI 2: Timely communication to VCs of the formula-based Annual Capital Investment Grant (ACIG) allocations and timely transfer of ACIGs to eligible VCs (Process, 3,200,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes Yes Date 16-Sep-2015 20-Sep-2018 31-May-2019 -- Achieved Comments ►DLI 4 DLI 4: Cumulative number of Joint Projects approved (Output, 4,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 10.00 10.00 18.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 -- The project achieved the current target for FY2018 Comments ►DLI 5 DLI5: Aggregated expenditure percentage of approved Joint Projects (Process, 1,500,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value 0.00 0.00 0.00 50.00 Date 16-Sep-2015 20-Sep-2018 20-Sep-2018 -- MDLF just approved 10 joint projects for FY2018. Preparation of and procurement for joint projects is ongoing Comments ►DLI 6 DLI 6: Steps to improve transparency and predictability in the allocation of Transportation Fee adopted by MoLG (Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY20 Value no No No -- Date 20-Jan-2016 20-Sep-2018 20-Sep-2018 -- Not achieved Comments 6/7/2019 Page 9 of 10 The World Bank Implementation Status & Results Report Local Governance and Services Improvement Program (P148896) ►DLI 7 DLI 7: Capacity Building Activities delivered by MoLG based on their Annual Capacity Development Plan (Process, 1,500,000.00, 13%) Baseline Actual (Previous) Actual (Current) FY20 Value No Yes Yes -- Date 16-Sep-2015 20-Sep-2018 31-May-2019 -- Achieved Comments 6/7/2019 Page 10 of 10