The World Bank Report No: ISR9527 Implementation Status & Results El Salvador Income Support and Employability Project (P117440) Public Disclosure Copy Operation Name: Income Support and Employability Project (P117440) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 25-Feb-2013 Country: El Salvador Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 24-Nov-2009 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 04-Mar-2013 Last Archived ISR Date 21-Sep-2012 Effectiveness Date 18-Jan-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 04-Mar-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project aims to support the Government of El Salvador in its short-term response to the crisis, while at the same time contributing to the establishment of an integrated social protection system. Within this context, the Project development objectives are to: (i) provide temporary income support to the urban vulnerable poor; (ii) improve the coverage of labor intermediation and training services to the urban vulnerable poor; and (iii) improve the institutional capacity of the Borrower to develop an integrated social protection system. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Support the Design and Implementation of the Temporary Income 37.30 Support Program (Programa de Apoyo Temporal al Ingreso, PATI) Strengthening of labor intermediation, information, and occupational 10.30 training systems Support the design and development of the Universal Social Protection 2.40 Public Disclosure Copy System (SPSU) Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR9527 This is an update based on a supervision mission that took place in November 2012, and monthly virtual meetings over the last six months. Component 1. The Government is finalizing implementation of the third round of the Temporary Income Support Program (PATI) in 15 urban municipalities with the participation of 7,406 beneficiaries in 182 different community projects and 368 training sessions in exchange for the 6-month cash transfers. The cumulative figure including the three rounds of Public Disclosure Copy PATI is 25,742 participants that completed the full cycle (of a total of 40,000 of intended beneficiaries by December 2014). The program continues to attract a large percentage of women (70% of participants), low skilled population (63% of participants have not completed basic education), and a third of participants (34%) are youngsters (16-24 years old). The fourth round of PATI will start in February 2013, with 6,319 participants in 12 urban municipalities. This component has already disbursed around $18.5 million ($13.4 million in cash transfers) since implementation started, with execution advancing as expected. The Salvadoran Institute for Occupational Training (INSAFORP) has also made important advances, by better coordinating activities with Ministry of Labor (MTPS), and by launching a pilot survey on labor market opportunities at the local level to adjust content of program training courses. MTPS is working on the development of a new the labor orientation module that will be offered to PATI participants starting in the fourth round of the program. PATI impact evaluation's follow-up survey on participants from the second round has concluded, and preliminary results of program impact on employment and incomes after participation are expected by March 2013. Component 2. There have been important advances in this component in the second half of 2012. Since July, the Ministry of Labor (MTPS) has strengthened its technical and fiduciary team, and has finalized 27 procurement transactions worth $1.77 million, which will be executed during 2013. Most of these activities relate to subcomponent 2.1which aims at strengthening the labor intermediation system. MTPS is in the process of renewing contracts with municipalities for the continuation of its 58 local employment offices (most of them have already been renewed. It has also selected 4 municipalities (Apopa, Izalco, Soyapango and Jiquilisco) that will pilot models of services (job counseling, links with private sector) for the rest of the country, and has hired additional consultants that will help design and implement job counseling modules for less skilled job seekers. In subcomponent 2.2, on strengthening the Ministry's information system, MTPS has established the Labor Market Observatory under the Direction of Social Prevision (though formal legal step is still pending), and started the processes of staffing and technology upgrading of the new unit. Subcomponent 2.3 has also identified as priority activities to focus on mapping the occupational training sector and training staff to provide job counseling to looking for opportunities at the regional employment offices, though activities in this subcomponent are still delayed. Component 3. This component has advanced substantially in 2012, in particular in regards to the institutional strengthening of the Technical Secretariat of the Presidency (STP), the development of the Universal Social Protection System (SPSU) strategy, and the development of the Unique Registry of Participants (RUP) of social programs. STP has finalized staffing of its project implementation unit, and the component has already executed 40% of its assigned funds. With regards to the development of RUP, STP completed the definition of the PMT and thresholds that will allow beneficiaries of different social programs to be targeted, and this has been already approved by the Intersectorial Social Committee. STP has also advanced with the application of the socioeconomic survey, with data already collected for 34,000 households in 5 municipalities (t he target is to reach 320,000 in 44 municipalities). Locations Country First Administrative Division Location Planned Actual El Salvador Not Entered Municipio de San Martín Public Disclosure Copy El Salvador Not Entered Municipio de Ahuachapán Results Project Development Objective Indicators Page 2 of 6 The World Bank Report No: ISR9527 Indicator Name Core Unit of Measure Baseline Current End Target Number of individuals that receive PATI Number Value 0.00 23369.00 40000.00 income support Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Public Disclosure Copy Comments In 25 municipalities, first three rounds of PATI program Approval of a regulatory framework for the Yes/No Value No No Yes institutional coordination of SPSU Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments SPSU conceptual strategy in draft. Participation of 18-25 year old individuals Number Value 3700.00 11000.00 without secondary education enrolled in the Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Red Nacional de Empleo (RNE) Comments No data available from MTPS Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percent of households in the targeted Percentage Value 0.00 17.40 20.00 settlements that are covered by PATI Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 (coverage) Comments Provided by FISDL based on program and census data. Percent of female PATI participants Percentage Value 0.00 73.02 60.00 Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Accumulated, first three rounds of PATI Percentage of PATI participants that completed Percentage Value 0.00 83.47 90.00 the training and activity requirements Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Accumulated, first two rounds of PATI Percent youth among PATI participants Percentage Value 0.00 36.72 40.00 Public Disclosure Copy Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Accumulated, first three rounds of PATI Increase in the number of individuals enrolled Number Value 23572.00 40508.00 50000.00 in the RNE Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Data for second semester 2012 (MTPS) Number of established employment offices Number Value 28.00 58.00 66.00 Page 3 of 6 The World Bank Report No: ISR9527 Date 01-Nov-2009 30-Nov-2012 Comments Data for second semester 2012 (MTPS) Public Disclosure Copy Increase in the percentage of the enrolled Percentage Value 47.00 49.30 53.00 population in the RNE that are women Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Data for second semester 2012 (MTPS) Increase in the percentage of the enrolled Percentage Value 41.00 53.40 60.00 population without complete secondary Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 education Comments Data for second semester 2012 (MTPS) Number of new employers enrolling in the RNE Number Value 384.00 1084.00 800.00 Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Data for second semester 2012 (MTPS) Number of employment fares organized Number Value 32.00 38.00 50.00 Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Data for second semester 2012 (MTPS) Number of job seekers participating in Number Value 21860.00 18884.00 40000.00 employment fares Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Data for second semester 2012 (MTPS) Labor Market Monitoring Unit (Observatorio del Yes/No Value No No Yes Mercado Laboral, OML) up and running Date 01-Nov-2009 13-Jul-2012 31-Dec-2014 Comments Conceptual design of OML ready. Implementation pending Public Disclosure Copy Educational and occupational training strategy Yes/No Value No No Yes completed and discussed with relevant actors Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 Comments Developing diagnosis to map occupational training programs and actors. Percentage of frameworks defining the rules of Percentage Value 0.00 20.00 100.00 institutional coordination approved and Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 implemented Comments Page 4 of 6 The World Bank Report No: ISR9527 Percentage of beneficiaries of Comunidades Percentage Value 0.00 12.50 75.00 Solidarias registered in the Unified Registration Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 System Comments Delayed Public Disclosure Copy Percentage of programs of Comunidades Percentage Value 0.00 5.00 75.00 Solidarias which incorporated their Date 01-Nov-2009 30-Nov-2012 31-Dec-2014 programmatic offer into the Social Information Comments Delayed System of the SPSU Data on Financial Performance (as of 11-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117440 IBRD-78110 Effective 24-Nov-2009 19-Jul-2010 18-Jan-2011 31-Dec-2014 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117440 IBRD-78110 Effective USD 50.00 50.00 0.00 23.15 26.85 46.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Page 5 of 6 The World Bank Report No: ISR9527 Component 1. The team has discussed with the Government the provisions as the presidential election campaign approaches, and how to protect the program during the election period. An agreement has been reached to bring forward the fifth program round to end before elections, not to start the sixth (and last) round) of the program until the elections are over, and to speed up the information campaign on the rights and duties for program participation. It is critical that the Government moves forward with the implementation of the Management Information System (MIS) for the PATI program: the Government has agreed to hire a consultant to develop and implement it, but it presents substantial delays. After Public Disclosure Copy several months of delay, the process evaluation of the PATI program has started, and results are expected during the first semester of 2013. About 9 percent of participants are not attending training sessions as reported by INSAFORP, and the Bank team has asked FISDL and INSAFORP to investigate the main reasons for this situation. FISDL will also present an analysis on lower than expected youth coverage (the target is to reach 40% of youngsters, currently at 34%), which may obey to community projects and training that are not sufficiently attractive for this group, or the information campaign that needs to make additional efforts to reach out to the youth. Activities related to municipal strengthening (subcomponent 1.4), with the aim of improving the identification and supervision of community projects, are also delayed but starting in the first semester of 2013. The Bank team has received the results of the 2011 annual operative audit of the PATI program, which highlighted areas of improvement related to the MIS, the supporting documentation, and potential non-compliance of a few participants. FISDL will provide concrete actions to address these concerns. Component 2. Thanks to the strengthening of its team, MTPS has accelerated execution of this component in the second half of 2012. However, FISDL was not prepared for the additional workload in such a short time: processes totaling $1.8 million had to be postponed to 2013 due to this situation. The Bank team recommended hiring additional fiduciary personnel in FISDL to ensure timely processing of activities. MTPS also needs to continue strengthening its project implementation unit on preparation of technical documents (TORs, bidding documents, etc) in 2013. On subcomponent 2.1, key processes related to training of personnel of employment offices, technology upgrading, and instruments to improve monitoring of local labor demand opportunities for vulnerable population ought to start in the first semester of 2013. Subcomponents 2.2 (on labor statistics) and 2.3 (occupational training) are substantially delayed, though progress has been made by identifying key activities and hiring relevant personnel in the course of 2013. Component 3. Within this component, the development of a monitoring and evaluation system has been delayed. So far, STP has advanced with the development of the information system to monitor program indicators, and will finalize the inventory of social programs by March 2013. STP is also advancing with the evaluation of key selected programs, including ECOS (community health services) and school uniforms program. The conceptual document of the SPSU is still in draft form, but STP has announced that it expects its approval by the SPSU Intersectoral Committee by March 2013. Restructuring History Level two Approved on 21-Dec-2010, Level two Approved on 08-Mar-2012 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6