Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD750 PROJECT PAPER ON A PROPOSED RESTRUCTURING AND ADDITIONAL CREDIT IN THE AMOUNT OF SDR 7.9 MILLION (US$ 12.1 MILLION EQUIVALENT) TO THE REPUBLIC OF TOGO FOR THE COMMUNITY DEVELOPMENT AND SAFETY NETS PROJECT FEBRUARY 11, 2014 Social Protection (West) Country Department AFCF2 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 December 31, 2013) Currency Unit = CFA Franc CFA Franc 479 = US$1 US$ 1 = SDR 0.649 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing MTEF Medium-Term Expenditure Framework AFCF2 Africa Region Francophone Country NGO Non-Governmental Organization Unit 2 OP Operational Policy AFTCS Africa Region Post Conflict and Social ORAF Operational Risk Assessment Development Practice Group Framework AFTSW Africa Social Protection - West/Central PAD Project Appraisal Document AGAIB Agences d'appui aux initiatives de PDC Projet de Développement développement à la Base Communautaire CDD Community-Driven Development PDCplus Projet de Développement CPIA Country Policy and Institutional Communautaire et des Filets Sociaux Assessment PDO Project Development Objective CVD Comités Villageois de Développement PERI Projet Education et Renforcement DA Designated Account Institutionnel EA Environmental Analysis PRSP Poverty Reduction Strategy Paper FCFA Franc de la Communauté Financière PSD Private Sector Development Africaine PTA Parent Teacher Association FM Financial Management QUIBB Questionnaire des Indicateurs de Base GDP Gross Domestic Product du Bien-être HIPC Heavily Indebted Poor Countries SCAPE Stratégie de croissance accélérée et de IA Implementing Agency promotion de l'emploi IDA International Development Association SDR Special Drawing Right ILO International Labor Organization TS Technical Secretariat IMF International Monetary Fund UNDP United Nations Development Program M&E Monitoring and Evaluation UNICEF United Nations Children's Fund MDRI Multilateral Debt Relief Initiative WFP World Food Program MICS Multiple Indicator Cluster Surveys XDR Special Drawing Right Vice President Makhtar Diop Country Director Ousmane Diagana Country Manager Herve Assah Sector Manager Stefano Paternostro Task Leader John Van Dyck / Thomas Bossuroy 2 REPUBLIC OF TOGO COMMUNITY DEVELOPMENT AND SAFETY NETS PROJECT CONTENTS Project Paper Data Sheet ..................................................................................................................1 Project Paper I. Introduction ................................................................................................................................ 7  II. Background and Rationale for Additional Financing ............................................................... 7  III. Proposed Changes .................................................................................................................. 10  Annex 1: Results Framework........................................................................................................ 16  Annex 2: Operational Risk Assessment Framework (ORAF) ...................................................... 24  Annex 3: Detailed Description of Project Activities .................................................................... 28  Annex 4: Disbursements ............................................................................................................... 33  2 ADDITIONAL FINANCING DATA SHEET Togo Community Development and Safety Nets Project Additional Financing ( P146598 ) AFRICA AFTSW . Basic Information – Parent Parent Project ID: P127200 Original EA Category: B - Partial Assessment Current Closing Date: 31-Jul-2015 Basic Information – Additional Financing (AF) Additional Financing Project ID: P146598 Scale Up Type (from AUS): Regional Vice President: Makhtar Diop Proposed EA Category: B - Partial Assessment Expected Effectiveness Country Director: Ousmane Diagana 31-May-2014 Date: Sector Director: Tawhid Nawaz Expected Closing Date: 30-Sep-2016 Sector Manager: Stefano Paternostro Report No: PAD750 Team Leader: John Van Dyck Borrower Organization Name Contact Title Telephone Email Minister of H.E. Adji Otéth +228 22 21 35 54/ Republic of Togo Economy and minifintogo@yahoo.fr Ayassor +228 22 21 01 38 Finance Project Financing Data – Parent ( TOGO Community Development and Safety Nets Project-P127200 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P127200 IDA-H7670 Effective 22-Mar-2012 12-Apr-2012 10-Jul-2012 31-Jul-2015 31-Jul-2015 Disbursements Undis- % Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed bursed Disbursed P127200 IDA-H7670 Effective XDR 9.20 9.20 0.00 4.88 4.32 53.06 3 Project Financing Data – Additional Financing Community Development and Safety Nets Project Additional Financing ( P146598 ) [ ] Loan [ ] Grant [ ] IDA Grant [X] Credit [ ] Guarantee [ ] Other Total Project Cost: 14.20 Total Bank Financing: 12.10 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount 1 BORROWER/RECIPIENT 2.10 International Development Association (IDA) 12.10 Total 14.20 Policy Waivers Does the project depart from the CAS in content or in other significant No respects? Explanation Does the project require any policy waiver(s)? No Explanation Team Composition Bank Staff Name Title Specialization Unit John Van Dyck Sr Social Protection Team Lead AFTSW Specialist Itchi Gnon Ayindo Senior Procurement Senior Procurement AFTPW Specialist Specialist Aissatou Diallo Senior Finance Officer Senior Finance Officer CTRLA Esinam Hlomador- Program Assistant Program Assistant AFMTG Lawson Paivi Koskinen-Lewis Social Development Social Development AFTCS Specialist Specialist Alain Hinkati Sr Financial Sr Financial AFTMW Management Specialist Management Specialist Gbetoho Joachim Boko E T Consultant Social Protection AFTSW Specialist 1 This figure refers only to activities supported under the additional financing and does not include expected counterpart funds of FCFA 750 million ($1.5 million) for cash transfers. 4 Thomas Bossuroy Young Professional Economist AFTSW Nneoma Veronica Counsel Legal LEGAM Nwogu Mariam Denise Brain E T Temporary Program Assistant AFTSE Faly Diallo Financial Officer Financial Officer CTRLA Non Bank Staff Name Title Office Phone City Locations Country First Administrative Location Planned Actual Comments Division Togo Region des Savanes Region des Savanes X X Togo Region des Plateaux Region des Plateaux X X Togo Region Maritime Region Maritime X X Togo Region Centrale Region Centrale X X Togo Region de la Kara Region de la Kara X X Institutional Data Parent ( TOGO Community Development and Safety Nets Project-P127200 ) Sector Board Social Protection Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Health and other social services Other social services 70 Health and other social services Health 10 Education General education 10 sector Water, sanitation and flood protection General water, 10 sanitation and flood protection sector Total 100 5 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Social safety nets 46 Rural development Rural services and infrastructure 25 Social protection and risk management Other social protection and risk 22 management Human development Nutrition and food security 5 Rural development Rural non-farm income generation 2 Total 100 Additional Financing Community Development and Safety Nets Project Additional Financing (P146598 ) Sector Board Social Protection Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Health and other social services Other social services 70 Health and other social services Health 10 Education General education 10 sector Water, sanitation and flood protection General water, 10 sanitation and flood protection sector Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social protection and risk management Social safety nets 58 Human development Other human development 42 Total 100 6 I. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide an Additional Financing (AF) credit in the amount of US$12.1 million for the Togo Community Development and Safety Nets Project (PDCplus) (P127200). 2. The proposed additional financing would help finance the costs associated with: (a) scaling up the PDCplus by increasing support for community infrastructure sub-projects; and (b) providing financing for a new community-based school feeding sub-component, which was supported under the Community Development Project (PDC) (P110943) until it closed on September 30, 2013. An incremental increase will be made available for project management to manage the additional activities. This Project Paper also seeks approval for restructuring the PDCplus in order to extend the closing date, reallocate funds, and revise outcome indicator targets in line with the expanded activities. II. Background and Rationale for Additional Financing 3. Country background. Togo is one of the smaller countries in Africa, with an estimated land surface area of 56 600 square km and, according to the 2010 census, a population of 6.2 million with an annual population growth of about 2.7%. Togo is one of the poorest countries in the world and ranks 162nd out of 187 countries in the 2011 UNDP Human Development Index. With a CPIA score of 3.0 in 2012 the country is classified as fragile. Poverty has started to fall but remains high. In 2006 poverty was 62 percent; in 2011 it had come down to 59 percent. However this decline in poverty has largely been achieved by consumption growth in the upper six consumption deciles, while the depth and severity of poverty increased since 2006. Also in other aspects of welfare, progress has been limited. According to the 2010 Multiple Indicator Cluster Surveys (MICS) survey, infant mortality increased in urban areas from 49 per 1,000 live births in 2006 to 66 in 2010 while it declined in rural areas (from 89 per 1,000 live births in 2006 to 83 in 2010). Access to education improved, but not for the poorest wealth quintile in urban areas. The same holds for access to drinking water which increased on average but not for the poorest wealth quintiles in rural and urban areas. Access to health services deteriorated across the board but mostly for the poorest wealth quintile. 4. Sector background. Government capacity to deliver basic social services to the majority of its population has been hampered by the socio-political crisis that affected Togo for more than a decade. Needs in the social sectors remain high compared to the financial and administrative capacity of the Government, with the situation being especially dire in the social protection sector. In particular, social safety nets are very limited in size and scope, costing less than 0.5 percent of GDP and covering less than 10 percent of the population. According to a recent review conducted by the Bank, the majority of the safety net mechanisms in place is poorly targeted and suffers from significant inefficiencies, with over 70 percent of the programs consisting mainly of emergency food distribution. This situation leaves both poor and not-so- poor highly vulnerable to shocks. Nevertheless, important progress has been made in the social protection sector during the past two years. In response to the crises that affected the country between 2007 and 2010, the Government decided to rely increasingly on social safety nets as a 7 mechanism to manage social risk, improve the resilience of the population to economic shocks and address chronic poverty. With World Bank support, social safety nets were piloted as part of the Community Development Project (Projet de Development Communautaire – PDC) and constitute the first blocks of a national safety nets system, which is an integral part of the social protection policy that the Government has been elaborating with the technical and financial support of donors (especially the World Bank, UNICEF, UNDP and ILO). 5. Project background. The US$14 million IDA grant for PDCplus was approved on March 22, 2012 and became effective on July 10, 2012, with a closing date of July 31, 2015. To date, the grant is 53% disbursed. The PDCplus represents the second phase of the successful US$32.9 million PDC, which was approved on June 26, 2008 and closed on September 30, 2013. The PDCplus aims to provide poor communities in Togo with greater access to basic socio- economic infrastructures and social safety nets. It consists of three components: 1. Community subprojects (US$7 million). Subcomponent 1.1 - Infrastructure construction and rehabilitation (US$6 million). Subcomponent 1.2 - Income generating activities (US$1 million). 2. Social Safety Nets (US$4.2 million). Subcomponent 2.1 - Labor Intensive Public Works (US$2.2 million). Subcomponent 2.2 – Pilot Cash Transfers (US$2 million). 3. Management and Operating Costs (US$2.8 million). 6. Current project performance. Project performance is currently rated Satisfactory for likelihood of meeting development objectives and Moderately Satisfactory for implementation progress. As of the beginning of December 2013, the project has launched 90 community infrastructure sub-projects, of which 38 are completed (the PAD for the original project has an intermediate target of 50 completed by December 2013, and 170 by project closing). Ninety- seven income generating activity sub-projects had been launched by end-September 2013, of which 57 are completed (PAD intermediate target of 50 by December 2013 and 150 by project closing). Fifty-two labor-intensive works sub-project have been launched, of which 42 are completed. The progress would be greater except that the Moderately Satisfactory rating for implementation progress reflects delays in launching the cash transfer component due to protracted negotiations with La Poste Togolaise over a contract for payment of beneficiaries. This contract has since been signed, and implementation progress may be raised to Satisfactory once cash transfers commence in early 2014 as expected. 7. Rationale for the AF. The Republic of Togo has requested the World Bank’s support to scale up the PDCplus by financing for community-based school feeding, and increasing the funds available to support community infrastructure projects. The Government’s commitment and ownership of the project is demonstrated by its commitment of FCFA 1.75 billion (about US$3.6 million) in counterpart funding to the activities financed by the original grant (cash transfers) and the additional credit (school feeding). The additional financing is warranted because the remaining undisbursed funds are already allocated to expenditures and expected to be used rapidly. Moreover, the implementing agency has already demonstrated under the PDC that it has the absorptive capacity to deliver a greater volume of activities than what is currently financed under the PDCplus. 8 8. Support for school feeding was not included in the PDCplus due to lack of resources, leaving a financing gap for school feeding when the PDC closed on September 30, 2013. The PDC supported school feeding beginning in the 2008-2009 school year up to the recently ended school year (2012-2013). In 2008-2009, the program launched with support for 16,800 children in 84 schools. The program was subsequently scaled up to benefit 42,000 children for the whole of the 2012-2013 school year, and 60,934 children in the last 3 months of the 2012-2013 school year in 256 beneficiary schools. 9. By providing one diversified meal daily for primary school children across the five regions of the country, the school-feeding program aims to improve the nutritional well-being of children during times of food insecurity; improve school enrolment, attendance, and performance; transfer resources to households under stress. A 2011 evaluation found that the cost of the school feeding program under PDC was low compared to other sub-Saharan African countries and that it was effective in attracting and retaining beneficiary children in school, in providing access to school to children who are older and have not yet enrolled, and in increasingly attracting girls. 10. The focus on community infrastructure reflects the Government’s desire to scale up the impact of the well-performing “Infrastructure construction and rehabilitation” component of the PDCplus. The community infrastructure activities supported by the PDC and PDCplus have led to significant increases in access to improved schools, health facilities, and water supply. For example, the PDC has supported the construction of 621 primary school classrooms, 76 water supply points, and 16 health facilities. However, the needs for such infrastructure in Togo remain vast. 11. Sustainability. The proposed AF is aligned with the focus on “Addressing Urgent Poverty Reduction and Social Needs” of the current Interim Strategy Note for Togo, and the focus on basic service delivery and social protection outlined in the Government’s Strategy for Accelerated Growth and Employment Promotion (SCAPE). It also reflects an ongoing debate about reorienting Togo’s fiscal policy to create space for higher social sector spending with domestic resources. The Government’s recent commitment to provide counterpart funding of FCFA 2.0 billion (about US$4.0 million) to expand the school feeding programs as well as scale up the cash transfers piloted as part of the PDCplus points to a growing commitment by the Government to social protection. 12. Safeguards. Following exactly the principles of the original operation, the proposed AF is classified as environmental category B in recognition of the fact that the potential negative environmental impacts are expected to be limited and manageable. The AF triggers the same safeguards policies as the parent project; OP 4.01 on Environmental Assessment and OP 4.12 on Involuntary Resettlement. The AF will continue to apply the safeguards instruments; Environmental and Social Management Framework and Resettlement Policy Framework, which were prepared, consulted upon and disclosed in-country and at InfoShop for the parent project and have been re-disclosed on October 17 and 29, 2013 for the AF. 9 13. Alternatives to AF considered. At present, following the end of the PDC, there is no financing for large scale public school feeding programs in Togo. The IDA additional financing and Government counterpart funds will permit school feeding in Togo to restart. The current project performance, continued government support, and the Bank’s preference for consolidating portfolios in small economies are key factors for choosing an AF rather than a new project. III. Proposed Changes 14. The PDO, which already aims to support greater access to basic socio-economic infrastructures and social safety nets, will remain unchanged. A summary of the main proposed changes is presented in the table below. Summary of Proposed Changes The proposed additional credit would help finance the costs associated with: (a) scaling up the PDCplus by increasing support for community infrastructure sub-projects; and (b) providing financing for a new community-based school feeding sub-component, which was supported under the Community Development Project (PDC) (P110943) until it closed on September 30, 2013. An incremental increase will be made available for project management to manage the scaled-up activities. This Project Paper also seeks approval for restructuring the PDCplus in order to extend the closing date, reallocate funds, and revise outcome indicator targets in line with the expanded activities. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] 10 Development Objective/Results PHHHDO Project’s Development Objectives Original PDO The proposed Project Development Objective is to provide poor communities with greater access to basic socio-economic infrastructures and social safety nets. Change in Results Framework PHHCRF Explanation: Revision of the results framework is necessary to: (i) add new indicators to measure the results of the new financing for school feeding; (ii) revise target values for existing indicators to reflect the scaled-up activities; and (iii) specify certain target values that were missing in the original PAD and align indicators to the Bank's core indicators. Compliance PHHHCompl Covenants - Additional Financing ( Community Development and Safety Nets Project Additional Financing - P146598 ) Source of Finance Description of Funds Agreement Date Due Recurrent Frequency Action Covenants Reference Finance PHHHFin Loan Closing Date - Additional Financing ( Community Development and Safety Nets Project Additional Financing - P146598 ) Source of Funds Proposed Additional Financing Loan Closing Date International Development Association (IDA) 30-Sep-2016 Loan Closing Date(s) - Parent ( TOGO Community Development and Safety Nets PHHCLCD Project - P127200 ) Explanation: Extension of the closing date is requested to allow for completion of the scaled up activities, and to allow ample time for completion and impact evaluation of the pilot cash transfer component under the original financing. Status Original Closing Current Closing Proposed Closing Previous Closing Ln/Cr/TF Date Date Date Date(s) IDA-H7670 Effective 31-Jul-2015 31-Jul-2015 30-Sep-2016 Change in Disbursement Estimates (including all sources of Financing)PHHCDE Explanation: Disbursement estimates require revision to take account of the additional IDA resources. 11 Expected Disbursements (in USD Million) (including all Sources of Financing) Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual 2.00 7.00 7.00 7.00 3.10 0.00 0.00 0.00 0.00 Cumulative 2.00 9.00 16.00 23.00 26.10 0.00 0.00 0.00 0.00 Allocations - Additional Financing ( Community Development and Safety Nets Project Additional Financing - P146598 ) Disbursement Source of Allocation Currency Category of Expenditure %(Type Total) Fund Proposed Proposed IDA XDR 1 GDS,CS,NCS,TR&OC PRTS A,C 1,000,000.00 100.00 IDA XDR 2 GDS,CS,NCS,TR&OC PRT B 3,300,000.00 100.00 3 GRANTS PRT A 3,600,000.00 100.00 IDA XDR Total: 7,900,000.00 Reallocation between Disbursement Categories PHHRBDC Explanation: It is proposed to reallocate SDR 700,000 of the original credit from categories 2 (a) and (b) (covering the first and subsequent rounds of cash transfers, respectively) to category 1. This is to make more resources available for project management in light of the availability of counterpart funds and parallel financing of $2.55 million from the Japanese Social Development Fund for the pilot cash transfer component. Current Category of Disbursement %(Type Ln/Cr/TF Currency Allocation Expenditure Total) Current Proposed Current Proposed GDS,WK,CS,TR&OC IDA-H7670 XDR 8,100,000.00 8,800,000.00 100.00 100.00 PRTS A,B.1,B.2(b),C 1st Cash Trf installmt prt IDA-H7670 200,000.00 200,000.00 100.00 100.00 B.2(a) 2nd Cash trf instlmt part IDA-H7670 900,000.00 200,000.00 100.00 100.00 B.2(a) IDA-H7670 Designated Account 0.00 0.00 0.00 0.00 Total: 9,200,000.00 9,200,000.00 12 Components PHHHCompo Change to Components and Cost PHHCCC Explanation: Component 1: Community subprojects. The component will be scaled up as follows: • Subcomponent 1.1 - Infrastructure construction and rehabilitation. The subcomponent will be scaled-up from US$6 million to US$11.5 million to support additional community infrastructure sub-projects. • Subcomponent 1.2 - Income generating activities (US$1 million). No change. Component 2. Social Safety Nets. The component will be scaled up as follows: • Subcomponent 2.1 - Labor Intensive Public Works (US 2.2 million). No change. • Subcomponent 2.2 – Pilot Cash Transfers. The subcomponent will be increased from US$2 million to US$3.3 million as a result of Government's commitment to provide FCFA 750 million (US$1.5 million) in counterpart funds, and after a reallocation of US$0.2 million of IDA resources to Component 3 to cover management and operating costs related to this scale up. • Subcomponent 2.3 – School feeding (new). A new $7.1 million sub-component (consisting of IDA US$5.0 million and FCFA 1.0 billion (US$2.1 million) in counterpart funds) will be added to renew support for the school feeding model developed under PDC, and to finance school feeding programs for at least 35,000 students in targeted schools for the 2014-2015 and 2015-2016 school years. Component 3. Management and Operating Costs. The component, which had an initial allocation of US$2.8 million, will be increased by $1.8 million to US$ 4.6 million to support the administrative costs of the Technical Secretariat of the PDCplus related to the scale up. Current Component Proposed Component Current Cost Proposed Action Name Name (US$M) Cost (US$M)2 Infrastructure Infrastructure construction and construction and 6.00 11.50 Revised rehabilitation rehabilitation Income Generating Income Generating 1.00 1.00 No Change Activities Activities Labor Intensive Public Labor Intensive Public 2.20 2.20 No Change Works Works Pilot Cash Transfers Pilot Cash Transfers 2.00 3.30 Revised Management and Management and 2.80 4.60 Revised Operating Costs Operating Costs School feeding 0.00 7.10 New Total: 14.00 29.70 2 Includes expected counterpart funds of FCFA 750 million ($1.5 million) for cash transfers and FCFA 1 billion ($2.1 million) for school feeding. 13 Other Change(s) PHHHOthC Change in Implementation Schedule PHHCISch Explanation: In order to allow sufficient time for the implementation of the scaled up activities and for the implementation and impact evaluation of the pilot cash transfer component, the closing date of the project will be extended to September 30, 2016. Appraisal Summary PHHHAppS Economic and Financial Analysis PHHASEFA Explanation: Investments under the Community Infrastructure Sub-component are not pre-identified given their demand-driven nature, and for this reason an ex-ante cost-benefit analysis is not applicable. However, a comparison of the cost of infrastructure financed by the CDP with that of similar infrastructure built with other approaches suggests that the former was quite cost-effective, e.g., CDP schools were about 15 percent cheaper than schools financed by the EU and UNDP, and CDP latrines were at least 30 percent cheaper than others. Thus, it is reasonable to expect that infrastructure investments under the proposed project will continue to compare favorably to similar infrastructure investments. The economic benefits that will accrue from the project will include improved access to -among others – education, health and IGAs for poor rural communities. The design of the selection process for Infrastructure Subprojects incorporates measures to maximize economic benefits including: (a) a participatory community planning mechanism to select investments, which ensures that investments address the real needs of the population and will therefore be put to good use; (b) direct implication of local representatives of sectoral ministries, which ensures that investments are in line with national priorities and implemented according to sectoral guidelines; and (c) a comprehensive subproject screening process including a technical and feasibility review. The Additional Financing for the School Feeding Sub-component will use the same implementation approach as the PDC project. The approach is based on the existing informal system of village women who will prepare and distribute meals via the PTA and the support of well trained and experienced local NGOs. This system is well-tested and reasonably efficient, is far less expensive than building and running formal canteens, and generates additional income that remains in the community. The School Feeding Sub-component under the PDC has had a positive and significant impact on poor households. The economic benefits of the School Feeding Project go well beyond the immediate substitution effect in the expenditures of households of providing meals to children. A 2011 assessment of the PDC school feeding program showed a significant impact on poor families, school enrollment and overall health conditions. In particular: i) the net transfer of the project through meals was estimated at about 20 percent of households’ yearly food consumption (based on the 2006 QUIBB survey); ii) the enrollment of new students in beneficiary schools in 2009-2010 increased by 9 percent, well above the average increase experienced in non-beneficiary schools; and (iii) it was estimated that more than US$1,500 a month has been injected in communities as a result of the project approach to meal preparation, which relies on the local community, local food products and the work of village women. 14 Technical Analysis PHHASTA Explanation: The proposed technical design, both for the community infrastructure projects and the school-feeding program, has been successfully implemented in two previous Bank-supported projects. It was seen as the most appropriate to support the borrower objectives of alleviating poverty in rural areas and promoting community development. In fact, in a country with limited administrative and human capacity at the central level, a community-based delivery mechanism that relies on a decentralized institutional framework is the most suitable approach to reach disadvantaged rural communities and provide basic social infrastructures, employment opportunities and some form of social protection. The proposed design also promotes local decision making, community involvement and ownership. Social Analysis PHHASSA Explanation: No change Environmental Analysis PHHASEnvA Explanation: No change Risk PHHASRisk Explanation: In terms of the preparation of the additional financing, risks are limited because of Government's commitment and the pre-existing, well tested implementation arrangements. The level of implementation risk is attenuated by the satisfactory results produced by the same arrangements in the past. Staff in the implementing agencies is familiar with Bank procedures and has shown reasonable technical competence. Still, substantial country level risks and significant risk of fraud and corruption remain which will be mitigated at the project level by community participation and monitoring combined with technical and financial audits. Given the risks described above, overall risk is rated moderate (the same level as the parent project). 15 Annex 1: Results Framework Project Community Development and Safety Nets Project Additional Project Additional Financing Status: DRAFT Name: Financing (P146598) Stage: Team Requesting John Van Dyck AFCF2 Created by: John Van Dyck on 29-Aug-2013 Leader: Unit: Product Responsible IBRD/IDA AFTSW Modified by: John Van Dyck on 04-Feb-2014 Line: Unit: Country: Togo Approval FY: 2014 Lending Region: AFRICA Investment Project Financing Instrument: Parent Parent Project P127200 TOGO Community Development and Safety Nets Project (P127200) Project ID: Name: . Project Development Objectives Original Project Development Objective - Parent: The proposed Project Development Objective is to provide poor communities with greater access to basic socio-economic infrastructures and social safety nets. Proposed Project Development Objective - Additional Financing (AF): Results Core sector indicators are considered: Yes Results reporting level: Program Level . Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised Direct project beneficiaries Number Value 0.00 16180.00 125250.00 Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 Comment 16 No Change Female beneficiaries Percentage Value 0.00 0.00 50.00 Sub Type Supplemental Revised Students enrolled in Number Value 0.00 4450.00 30000.00 rehabilited/constructed schools Sub Type Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 Breakdown Comment Calculated on the basis of the following assumptions: 320 infrastructures built of which 50% are schools, 3 classrooms per school and 50 students per classroom, 33% student turnover in classrooms built per year Revised Beneficiaries with access to an Number Value 0.00 6750.00 40000.00 improved water source Sub Type Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 Breakdown Comment Calculated on the basis of the following assumptions: 320 infrastructures built of which 50 are water, and about 800 beneficiaries per water source Marked for Beneficiaries receiving cash Number Value 0.00 0.00 8000.00 Deletion transfers Sub Type Date 15-Jul-2012 10-Aug-2012 31-Dec-2015 Breakdown Comment replaced with core indicator 17 Marked for Beneficiaries from LIPW Number Value 0.00 0.00 100000.00 Deletion Sub Type Date 15-Jul-2012 10-Aug-2012 31-Dec-2015 Breakdown Comment New Beneficiaries of Safety Nets Number Value 0.00 3474.00 53000.00 programs (number) Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 Comment to align original indicator with the Bank's core indicator New Beneficiaries of Safety Nets Number Value 0.00 0.00 8000.00 programs - Unconditional cash Sub Type Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 transfers (number) Breakdown Comment Includes JSDF financing. Indicator revised to align original indicator with the Bank's core indicator New Beneficiaries of Safety Nets Number Value 0.00 3474.00 10000.00 programs - Cash-for-work, Sub Type Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 food-for-work and public works (number) Breakdown Comment to align original indicator with the Bank's core indicator New Beneficiaries of Safety Nets Number Value 0.00 0.00 35000.00 programs – School feeding Sub Type Date 20-Nov-2013 01-Dec-2013 30-Sep-2016 programs (number) Breakdown Comment new component under Additional Financing New Beneficiaries of Labor Market Number Value 0.00 1506.00 2250.00 programs (number) Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 18 Comment to align original indicator with the Bank's core indicator New Beneficiaries of Labor Market Number Value 0.00 1506.00 2250.00 programs - Supporting Sub Type Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 entrepreneurship (number) Breakdown Comment to align original indicators with the Bank's core indicators Revised Community subprojects Percentage Value 0.00 0.00 80.00 operating one year after Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 completion Comment to reflect new closing date Revised Households receiving cash Percentage Value 0.00 0.00 70.00 transfers on schedule Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 Comment to reflect new closing date Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised Basic socio economic Number Value 0.00 38.00 320.00 infrastructure Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 built/rehabilitated/maintained Comment Estimated based on assumptions of average cost of sub-projects Marked for Classrooms built or Number Value 0.00 0.00 0.00 Deletion rehabilitated Sub Type Date 15-Jul-2012 10-Aug-2012 31-Dec-2015 Breakdown Comment replaced with core indicator 19 Marked for health facilities Number Value 0.00 0.00 0.00 Deletion constructed/renovated and/or Sub Type Date 15-Jul-2012 10-Aug-2012 31-Dec-2015 equiped Breakdown Comment replaced with core indicator Marked for Improved community water Number Value 0.00 0.00 0.00 Deletion points constructed or Sub Type Date 15-Jul-2012 10-Aug-2012 31-Dec-2015 rehabilitated Breakdown Comment replaced with core indicator New Number of additional Number Value 0.00 89.00 500.00 classrooms built or Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 rehabilitated at the primary level resulting from project Comment Revised to align interventions. original indicator with the Bank's core indicator and to provide target value which was missing from original PAD.Calculated on the basis of the following assumptions: 320 infrastructures built of which 52% are schools, 3 classrooms per school New Health facilities constructed, Number Value 0.00 3.00 20.00 renovated, and/or equipped Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 (number) Comment Revised to align original indicator with the Bank's core indicator and to 20 provide target value which was missing from original PAD. Calculated on the basis of the following assumptions: 320 subprojects, of which about 6% are health facilities New Improved community water Number Value 0.00 9.00 50.00 points constructed or Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 rehabilitated under the project Comment Revised to align original indicator with the Bank's core indicator and to provide target value which was missing from original PAD. Calculated on the basis of the following assumptions: 320 subprojects of which 16% are water points Revised Basic socio economic Percentage Value 0.00 0.00 80.00 infrastructure assessed as Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 having satisfactory technical quality Comment to reflect new closing date No Change Income generating activities Number Value 0.00 57.00 150.00 subprojects Date 15-Jul-2012 01-Dec-2013 31-Dec-2015 Comment 21 No Change Person days of work provided Number Value 0.00 138960.00 400000.00 through this project Date 15-Jul-2012 01-Dec-2013 31-Dec-2015 Comment Revised Female participation in labor Percentage Value 0.00 4985.00 40.00 intensive public works Date 15-Jul-2012 01-Dec-2013 31-Dec-2015 Comment Revised to clarify that this indicator refers to female participation in labor intensive public works No Change Young people (aged less than Percentage Value 0.00 59.81 70.00 35) employed Date 15-Jul-2012 01-Dec-2013 31-Dec-2015 Comment No Change Public works schemes Percentage Value 80.00 0.00 85.00 completed with satisfactory Date 15-Jul-2012 01-Dec-2013 31-Dec-2015 technical quality Comment Revised Communal infrastructures Number Value 0.00 42.00 125.00 rehabilitated through the public Date 15-Jul-2012 01-Dec-2013 31-Dec-2015 works Comment To provide target which was missing from PAD Revised Registered households who are Percentage Value 0.00 0.00 100.00 receiving the cash transfers Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 Comment to reflect new closing date 22 Revised Beneficiaries complying with Percentage Value 0.00 0.00 95.00 the requirements to participate Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 in soft conditions Comment to reflect new closing date New Meals provided to students in Number Value 0.00 0.00 12000000.00 schools targeted for school Date 01-Dec-2013 01-Dec-2013 30-Sep-2016 feeding Comment New Schools benefitting from Number Value 0.00 0.00 150.00 school feeding program Date 01-Dec-2013 01-Dec-2013 30-Sep-2016 Comment New Percent of schools benefitting Percentage Value 0.00 0.00 90.00 from school feeding that are in Date 01-Dec-2013 01-Dec-2013 30-Sep-2016 the poorest 20% of cantons in their region (excluding schools Comment in villages targeted by the Impact Evaluation) Revised Maximum percentage of Percentage Value 17.00 0.00 17.00 project funds used for project Date 15-Jul-2012 01-Dec-2013 30-Sep-2016 management Comment reduced in light of economies of scale due to additional financing . 23 Annex 2: Operational Risk Assessment Framework (ORAF) Togo: Community Development and Safety Nets Project Additional Financing (P146598) . . Project Stakeholder Risks Stakeholder Risk Rating Low Risk Description: Risk Management: The WFP and UNICEF have already been consulted during bilateral meetings on this Other donors could raise objections to AF design and AF and support the operation. implementation. The government does not endorse the AF, causing lack of Resp: Status: Stage: Recurrent: Due Date: Frequency: ownership from the onset. Bank Completed Preparation 02-Aug-2013 Risk Management: The team has ensured that the project responds to Government priorities. This project enjoys strong government commitment, and is in line with its key priorities. The Minister of Community Development has expressed her support for the additional financing and the activities to be supported. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Completed Preparation 16-Aug-2013 Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Low Risk Description: Risk Management: The Technical Secretariat and regional AGAIBs have The project will continue to provide support to the implementing agency and AGAIBs to developed a strong capacity for CDD and safety nets build capacity to manage safety nets programs and to perform key project functions such projects (including FM capacity) during the as M&E. implementation of Community Development Project (PDC) Resp: Status: Stage: Recurrent: Due Date: Frequency: and Community Development and Safety Nets Project (PDCplus) with the World Bank. Their performance was Client Not Yet Due Both Yearly rated satisfactory during the last evaluation. 24 Governance Rating Moderate Risk Description: Risk Management: The implementing agency, the Technical Secretariat of the The Government should ensure strong coordination of the different actors involved in PDCplus, operates under the authority of the Ministry of community development and safety nets to enhance the project's complementarity and Community Development, Handicraft, Youth, and Youth synergies with the actions of other ministries and agencies. Employment. There is a clear delineation of responsibilities Resp: Status: Stage: Recurrent: Due Date: Frequency: between the Ministry, Technical Secretariat, the NGO service providers, and the communities. There are, Client In Progress Both Monthly however, many Government actors implicated in the area of school feeding in addition to the Ministry of Community Development, including the Ministries in charge of Risk Management: Education, Social Action, Agriculture, Finance, and Plan. Nine NGOs supervised implementation of the school feeding program in various areas of the country under the PDC. Despite generally good performance by these NGOs, all NGO contracts will be competitively re-bid to ensure that the best qualified NGOs are retained in each geographic area. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Both Risk Management: Beneficiary schools will be selected on the basis of a targeting formula taking into account food insecurity, poverty, and education statistics. This will protect the implementing agency from political pressures regarding selection of communities. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Preparation Risk Management: An independent evaluation of the delivery of school feeding, covering a representative sample of schools, will be undertaken in addition to the annual audits of the program to verify compliance with program guidelines. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation 20-Mar-2015 25 Project Risks Design Rating Low Risk Description: Risk Management: Design risk is low because the additional activities will The project implementation manual will be updated as needed to reflect the addition of follow the well-tested implementation mechanisms of the the school feeding sub-component prior to the approval of the AF. The section on IDA-supported school feeding program under the PDC. school feeding will be borrowed largely from the PDC which also supported school feeding. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Preparation 15-Jan-2014 Social and Environmental Rating Low Risk Description: Risk Management: Overall the project is rated environmental category B to The safeguards documents have been redisclosed. reflect the limited negative impact that it may have on the Resp: Status: Stage: Recurrent: Due Date: Frequency: environment compared to the benefits that it will provide. The existing safeguards documents will also apply to the Both Completed Preparation activities supported by the additional financing. Program and Donor Rating Moderate Risk Description: Risk Management: Discussions between the Ministry of Finance, Ministry of The new counterpart funds are a strong signal of the ownership of the program from the Community Development, the Bank, and the IMF about the Government. Delay in the availability of counterpart funds could delay program possibility of creating fiscal space for school feeding and implementation, but high level support for the project from Government makes this other social programs through the reduction of fuel unlikely. subsidies have been successful in mobilizing FCFA 1.75 Resp: Status: Stage: Recurrent: Due Date: Frequency: billion (US$3.6 million) in Government counterpart funds. The WFP is also planning to begin support for school Client Not Yet Due Implementation feeding. 26 Delivery Monitoring and Sustainability Rating Substantial Risk Description: Risk Management: Provision of continuous support for continuing to improve the Technical Secretariat's Monitoring and evaluation is a challenge in many projects M&E capacity and performance. and has been noted as the key area of improvement for the implementing agency. As a result, a new computerized Resp: Status: Stage: Recurrent: Due Date: Frequency: monitoring system has recently been installed in the Bank In Progress Both Yearly implementing agency and staff have been trained in its use. A recent mission noted that the system is being updated Risk Management: regularly and will continue to support the implementing Discussions are underway between the Ministry of Finance, Ministry of Community agency to continue progress in this area. Development, the Bank, and the IMF about the possibility of creating fiscal space for school feeding and other social programs through the reduction of fuel subsidies. Sustainability is a point of emphasis as school feeding is a recurrent expenditure by nature and there is a need to Resp: Status: Stage: Recurrent: Due Date: Frequency: secure long-term financing from the Government’s own Both In Progress Preparation 06-Mar-2014 resources to provide the Bank with an exit strategy. Other (Optional) Rating Risk Description: Risk Management: Resp: Status: Stage: Recurrent: Due Date: Frequency: Overall Risk Overall Implementation Risk: Rating Moderate Risk Description: The level of implementation risk is attenuated by the satisfactory results produced by the same arrangements in the past. Staff in the implementing agencies is familiar with Bank procedures and has shown reasonable technical competence. Still, substantial country level risks and significant risk of fraud and corruption remain which will be mitigated at the project level by community participation and monitoring combined with technical and financial audits. Given the risks described above, overall risk is rated moderate (the same level as the parent project). 27 Annex 3: Detailed Description of Project Activities Component 1: Scaling up the sub-component on community infrastructure This component facilitates access of the rural population to improved health, education, water and sanitation and other socioeconomic infrastructures as well as IGAs. It uses a CDD approach, whereby beneficiaries themselves are in the driver’s seat to select, plan and implement subprojects. The implementation of the sub-component will continue to follow the operational manual already established under the PDCplus. Under this approach, the Agencies to Support Community Development (AGAIBs) make sub-grants available to Community Development Committees (Comités Villageois de Développement or CVD) to finance basic infrastructure subprojects from a menu of eligible sub-projects consisting of the following: a) primary schools, literacy centers, and social centers; b) health infrastructure such as primary care centers or community pharmacies; c) water points and water retention infrastructure; d) rehabilitation of secondary roads and construction or rehabilitation of road infrastructure; e) other small community infrastructures such as market stalls and abattoirs; and f) accompanying support to ensure operability and quality of service for the infrastructure mentioned above, for example, to ensure access to education equipment (chairs, desks, etc) and health equipment and supplies. To train communities during the whole subproject cycle, the AGAIBs have typically recruited intermediaries (primarily NGOs, but also individuals), selected on a competitive basis, paying them 10 percent of the subproject cost. By its end, the project is expected to transition away from primarily using NGOs to use of a cascading training of trainers approach that has been successfully used in the Togo Education and Institutional Strengthening Project (Projet Education et Renforcement Institutionnel or PERI). This approach is expected to result in greater capacity building at the community level in the skills required for community mobilization and project management, including financial management, procurement, and monitoring and evaluation, thereby enhancing sustainability. The sub-projects will continue to be limited to a maximum cost of US$60,000 each, with an average of US$35,000 per sub-grant. Beneficiaries will contribute with an additional 5 percent (in cash or kind). Accordingly, in addition to the target of 170 sub-projects under the original financing, the additional financing will aim to support another 150 projects, for a total of 320 community infrastructure sub-projects. Targeting approach. Thanks to the availability of new and more detailed poverty data, the PDCplus has enhanced the targeting approach previously used under the PDC by making it more precise. Also, given the huge backlog of requests already received by the AGAIBs, it is crucial that the project utilizes a targeting mechanism that is perceived as fair and limits the scope for interference. Beneficiary communities will be selected through geographic targeting done at two levels: 28 (a) Regional allocation of funds: resources to finance subprojects will be distributed to the five regions of Togo according to criteria based on population size and poverty levels. A new household survey (2011) and a new census (2010) have informed a new poverty profile for the country, which includes estimates of the relative contribution of each region to national poverty. (b) Identification of poorest communities inside regions: the new data available will also make it possible to develop a national poverty map with reliable estimates down to the canton level. Based on the poverty map, therefore, some priority areas of interventions will be identified, corresponding to the poorest cantons inside each region. Only communities in those cantons will be eligible to submit a proposal and obtain financing. Subproject cycle. Community subprojects will be implemented by poor rural communities with the support of the AGAIBs. The first step will be to help communities strengthen their CVD, ensuring that women are included in it and that it is reasonably representative of the community. The CVD will: - be supported throughout the subproject cycle by the AGAIB and, if necessary, by the grassroots management trainers, NGO or other intermediary recruited by the AGAIB; - identify community needs and priorities through a participatory approach involving the whole community; - prepare and submit to the AGAIB a request for financing subprojects; - open a bank account; - select a construction firm, supplier or service provider using community-based procurement procedures; - sign a subproject grant agreement with the respective AGAIB and a contract with a construction firm, supplier or service provider; - mobilize the required community participation, in cash or kind, equivalent to 5 percent of subproject financing to be provided by the AGAIB; - supervise the implementation of works and disburse payments in tranches (40 percent, 50 percent and 10 percent), according to physical progress of works; - sign off at subproject completion and sign a handover agreement with both the AGAIB and the contractor; and - prepare and implement an operation and maintenance plan of the subproject. 29 Component 2: Additional Sub-component to support the School Feeding program Component 2 contained two sub-components under the original project: sub-component 2.1 supporting labor intensive public works and sub-component 2.2 supporting a pilot cash transfer program. The additional financing will add a third sub-component to support school feeding programs for an estimated 35,000 students in targeted schools for the 2013-2014 and 2014-2015 school years. Implementation Arrangements. The new sub-component 2.3 for school feeding will follow the procedures set forth in the operational manual for the PDC. The manual for the PDCplus will be updated subject to the no objection of the Bank to include these procedures and update them as required. The approach of the school feeding program is based on the existing system of village women who will prepare and distribute meals via the Parents-Teachers Association (PTA) and the support of well trained and experienced local NGOs. This system is well-tested and reasonably efficient, is far less expensive than building and running formal canteens, and generates additional income that remains in the community. At central level, a Steering Committee chaired by the Ministry of Primary Education will oversee the implementation of this Sub-component and provide overall strategic direction. The Technical Secretariat (TS) of the PDCplus will retain overall implementation responsibility. The TS selects and recruits NGOs that are responsible for organizing and implementing school feeding in beneficiary schools. Support from NGOs is both technical and financial, as they deliver subsidies to the existing informal system of village women. Supervision and support at the school level. The local Parents-Teachers Association (PTA) will help ensure that the program is adequately and transparently managed and implemented at the school level. The PTAs will distribute the vouchers to the children before each lunch. The PTAs will also monitor meal quality and quantity. PTAs in Togo are strong and well-established, and are organized in regional associations and a national association. Because of the protracted institutional and governance crisis, PTAs have played a major role in organizing, financing and staffing schools, mostly on a voluntary basis. Each morning, the school director will know the exact number of children attending classes that day and through members of the PTA it will inform the village women on how many meals will need to be preparing on that day. The women will then buy food, water and firewood and prepare the meals on time for the 12:00 noon lunch break. Food is usually bought by women on a weekly or biweekly basis with a proximate number of students in mind and the majority of food (rice, oil, tomatoes cans, etc.) can be stocked for several days. Women will buy fresh food, daily according to the exact number of students at schools. They will then serve the meals to pupils using a standard bowl. Usually at the end of the week, the village women will present the number of total meals they have prepared and will be paid a fix amount of FCFA 165 by meal per day. The value of this reimbursement will be the same in all participating communities and during the entire school year. Once the school feeding system has been organized (e.g., village 30 women and PTAs trained, responsibilities clearly identified), the TS will transfer enough funds to the NGOs to cover three months’ worth of payments for the schools under their responsibility. Funds will be replenished on the basis of implementation reports prepared by the NGOs and countersigned by PTAs and school representatives. This report will be based on the supervision visits made by the NGOs. Every three months, the Technical Secretariat will carry out a supervision mission to spot-check the implementation of the program. Administrative costs. Efforts have been made to keep the fees collected by regional level NGOs at a reasonable level, and to cap at 8 percent the profit allowed by the project in order to maintain good quality and quantity of food served. Strengthening monitoring tasks, reinforcing the role and capacity of PTA, setting an explicit ceiling for profit and encouraging the women to spend more resources in good quality meals are among the measures to reduce costs associated with meals preparation. Women will also be encouraged to keep a simplified account sheet tracking their weekly expenses on food. Nutritional quality and hygiene. Meals served at school provide an adequate caloric intake for children, but they lack vitamins. During the expansion phase of the project all efforts will be made to add a fruit to the menu. Systematic hand washing will take place before eating. Targeting. The school feeding Sub-component will continue to target schools in poor and remote areas of the country, and the project will use poverty-based targeting criteria to identify new villages. The availability of a new nationwide poverty map at the canton level will enable improved poverty targeting of beneficiary schools. In order to identify the impact of the school feeding program on the beneficiary schools, a preliminary group of schools two times larger than the number of schools to be supported will be identified using the poverty map. The selection of beneficiary schools from this preliminary group will be done on a random basis. The randomized selection of the beneficiary schools will allow for the creation of a control and a treatment group which will be used at the end of the project to identify the impact on beneficiary schools from the program. Impact evaluation. With this proposed AF, the PDCplus offers a unique opportunity to rigorously measure and compare the impact of two different social protection interventions, school feeding and cash transfers, as well as examine their interactions. The study will take place in the Kara and Savanes regions where the cash transfers pilot is set to be evaluated through a village-level randomized controlled trial in partnership with UNICEF. The implementation of the school feeding program will follow a cross-randomization design that will allow measuring its impact with the existing evaluation apparatus, thereby ensuring strict comparability of impacts and cost-effectiveness across both interventions. But it will also allow examining complementarity between the two programs in terms of nutritional and educational outcomes. In the other regions, the selection of beneficiary schools will be made through a random process within a pool of targeted schools. A preliminary group of schools two times larger than the 31 number of schools to be supported will be identified using the poverty map. The selection of beneficiary schools from this preliminary group will be done on a random basis. The randomized selection of the beneficiary schools will allow for the creation of a control and a treatment group which will be used at the end of the project to identify the impact on beneficiary schools from the program. The analysis may then be carried out based on administrative data or through a full-fledged data collection process for which external partnerships and resources would need to be mobilized. Component 3: Management and Operating Costs To support administrative costs of the Technical Secretariat of the PDCplus related to the scale up, an additional $1.8 million will be allocated to Component 3 (Management and Operating Costs). The activities under component 3 will continue to follow those described in the operational manual of the project. 32 Annex 4: Disbursements 1. The project will continue to use the report-based disbursement procedures. The existing Designated Account (DA) at Banque Togolaise pour le Commerce et l’Industrie will also be used for the additional financing. The designated account will receive an initial advance equivalent to the forecast for two quarters as shown in the quarterly Interim Financial Report upon project effectiveness. In addition to advances to the designated account, other disbursement methods will be available for use under the project, such as the direct payment, reimbursement, and special commitment methods. Further instructions on the withdrawal of proceeds and details of the disbursement arrangement will be outlined in the disbursement letter. 2. The disbursement schedule will be as follows: Percentage of Amount of the Amount of the Expenditures to be Category Grant Allocated Grant Allocated Financed (expressed in USD) (expressed in SDR) (inclusive of Taxes) (1) Goods, consultants’ services, non-consultant services, Training and 1,600,000 1,000,000 100% Operating Costs under Parts A and C (Components 1.1 and 3) of the Project (2) Goods, consultants’ services, non-consultant services, Training and 5,000,000 3,300,000 100% Operating Costs under Part B (Component 2.3) of the Project (3) Sub-project Grants under 100% of amount Part A (Component 1.1) of the 5,500,000 3,600,000 disbursed under Sub- Project project Grants TOTAL AMOUNT 12,100,000 7,900,000 33