PROJECT INFORMATION DOCUMENT (PID) ADDITIONAL FINANCING Report No.: PIDA2692 Project Name Community and Social Development AF (P148215) Parent Project Name Community and Social Development Project (P090644) Region AFRICA Country Nigeria Sector(s) Public administration- Other social services (35%), Primary education (20%), Other social services (20%), Rural and Inter- Urban Road s and Highways (15%), General water, sanitation and flood protection sector (10%) Theme(s) Other social protection and risk management (50%), Participation and civic engagement (20%), Rural services and infrastructure (20%) , Decentralization (10%) Lending Instrument Investment Project Financing Project ID P148215 Parent Project ID P090644 Borrower(s) Federal Ministry of Finance Implementing Agency Federal Ministry of Finance Environmental Category B-Partial Assessment Date PID Prepared/Updated 19-Feb-2014 Date PID Approved/Disclosed 20-Feb-2014 Estimated Date of Appraisal 20-Feb-2014 Completion Estimated Date of Board 26-Mar-2014 Approval Decision Following the review, the decision was taken to proceed with Appraisal of the proposed Additional Financing. I. Project Context Country Context With its strong fundamentals, including consistent and strong growth since 1999, Nigeria qualifies as one of the continent's potential economic powerhouses. Nigeria is the most populous country of the continent (171 million in 2012) and the second largest economy after South Africa. As the world's 10th oil producer, Nigeria is Africa’s first oil producer and also holds the second highest proven reserves in the continent after Libya. After decades of military rule, the country has successfully engaged on the path of democracy since 1999, and since then has enjoyed consistent and strong growth. All of these make Nigeria one of the continent's potential economic powerhouses. Page 1 of 5 Responsible macroeconomic policies have supported a high degree of economic stability. The introduction of the fiscal reserve Excess Crude Account (ECA) in 2004 has facilitated the implementation of countercyclical fiscal policy, including the financing of an effective stimulus package during the world financial crisis of 2008-2009. Since 2011, the Government has actively pursued fiscal consolidation, and monetary policy has been tightened along with the recovery of the banking sector from the crisis of 2009. Inflation is also slowing down. Sectoral and institutional Context In Nigeria, public expenditure on social services and assistance programs has grown but is still insufficient. According to the annual reports of the Central Bank of Nigeria (CBN), spending on social programs provided by the federal government (including education and health but excluding pensions and other related transfers) rose from about 1.4 percent of GDP in 2004 to almost 2 percent in 2009. Social expenditures at the state level were significantly higher ‒ 2.9 percent of GDP in 2008. Social spending by the federal and state governments combined, increased between 2004 and 2008 to almost 5 percent of GDP, which is still quite low compared with other countries. Recent figures from the office of the Accountant General of the Federation (compiled by the International Monetary Fund and the World Bank in 2012) indicate that federal spending on social protection as a percentage of GDP has been stable but very low between 2009 and 2012, averaging 0.30 percent. As a percentage of the budget, it is still low, representing about 2 percent in 2010 and 3.5 percent in 2012. Per capita expenditure on social protection at the federal level rose slightly from $3.5 in 2009 to $6.3 in 2012. The Nigerian government has designed and implemented several national and state-level social services supply and demand-side interventions to address the shocks and risks faced by the poor and vulnerable. With the Support of International Agencies the Federal and State Governments instituted and implemented community driven development (CDD) –based interventions in selected States and communities. Such CDD type projects include Community-based Poverty Reduction Project (CPRP), the Local Empowerment and Environmental Management Project (LEEMP) and FADAMA supported by the World Bank and AfDB. Based on the considerable achievements by many of the above projects, and also the efficacy of the community-driven development approach and the partnership strategy, the CPRP and LEEMP were dissolved into a new program called the Community and Social Development Project, (CSDP). The CSDP promoted the human development of poor people at the grassroots level using a CDD approach. It was also a successful program, increasing the access of poor households to social and natural resource management services. The World Bank support to the CSDP is now to close December 2014, but the government has requested for additional financing to increase the scope and size of the intervention. II. Proposed Development Objectives A. Current Project Development Objectives – Parent Development objectives. The project development objective is to sustainably increase access of poor people to social and natural resource infrastructure services. The key performance indicators are: - Increased number of poor people (of which 70% are women) with access to social services. - Increased number of poor people with access to natural resources infrastructure services. - Increased percentage of participating Local Governments that are incorporating Community development plans in their budget. B. Proposed Project Development Objectives – Additional Financing (AF) Page 2 of 5 The project development objective remains the same, i.e. to increase access by the poor to improved social and natural resource infrastructure services in a sustainable manner throughout Nigeria. III. Project Description Component Name 1. Overall Project Support and Coordination Comments (optional) Component 1 remains unchanged from the parent CSDP project. Component Name 2. Capacity Building and Partnerships Development in State Ministries and LGAs Comments (optional) Component 2 remains unchanged from the parent CSDP project. Component Name 3. Community-Driven Investments Facility Comments (optional) Component 3 remains unchanged from the parent CSDP project. Component Name 4. Vulnerable Groups Investments Facility Comments (optional) Component 4 is a newly added component which provides grants as Component 3 but with an emphasis on vulnerable groups. IV. Financing (in USD Million) Total Project Cost: 176.00 Total Bank Financing: 140.00 Financing Gap: 0.00 For Loans/Credits/Others Amount BORROWER/RECIPIENT 36.00 International Development Association (IDA) 140.00 Total 176.00 V. Implementation As in the parent project the CSDP additional finance would operate at two levels: Federal, and State. At the Federal level, the Coordination and Program Support Component 1 - will be supervised by Federal Ministry of Finance through a restructured Federal Project Support Unit. The restructured Federal Project support unit (FPSU), reporting to the FMF, will be responsible for implementation of the activities at the Federal level of the project. There is also a multi-sectoral Program Advisory Committee chaired by the FMF and serviced by the FPSU. The FPSU will be the collaboration point for the various Federal Sectoral Ministries to mainstream support for the CDD agenda, such as NAPEP, National Bureau of Statistics, National Planning Commission, Ministries of Women Affairs, Environment, Intergovernmental affairs (for Local Govt.), Education, Health, Water Resources. At the State level, the State Government Agency set up by law, or any act of the Government in Page 3 of 5 agreement with the World Bank is responsible for implementing the capacity building and partnership, community investment and vulnerable groups investment components (Components 2, 3, & 4). The State Agency will continue to work in collaboration with the FPSU/FMF, but operate independently. As in the parent project the State Agency will have an advisory board or a technical committee and a Management Unit. The Board will include representatives from civil society and the government. The management unit headed by a General Manager who will supervise activities of staff within 3 major departments of the Agency: via: Operations, Finance and Administration, and Monitoring and Evaluation. The law or agreement used in establishing the agency will insulate the agency and specifically the management unit from undue political or administrative interference. VI. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✖ Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP 7.50 ✖ Projects in Disputed Areas OP/BP 7.60 ✖ Comments (optional) VII. Contact point World Bank Contact: Foluso Okunmadewa Title: Sector Leader Tel: 5359+247 Email: fokunmadewa@worldbank.org Borrower/Client/Recipient Name: Federal Ministry of Finance Contact: Mrs. Abidemi Aremu Title: Director, IERD Tel: Email: aremuklie99@yahoo.com Implementing Agencies Name: Federal Ministry of Finance Contact: Mr. Chudi Onuoha Title: National Coordinator, FPSU, CSDP Tel: Email: chudimarshi@yahoo.com Page 4 of 5 VIII. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop Page 5 of 5