INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA7561 Public Disclosure Copy Date ISDS Prepared/Updated: 30-Mar-2014 Date ISDS Approved/Disclosed: 31-Mar-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Niger Project ID: P145261 Project Name: Public Sector Capacity and Performance for Service Delivery (P145261) Task Team Robert A. Yungu Leader: Estimated 03-Mar-2014 Estimated 31-Mar-2014 Appraisal Date: Board Date: Managing Unit: AFTP4 Lending Investment Project Financing Instrument: Sector(s): General public administration sector (60%), General education sector (20%), Health (20%) Theme(s): Other public sector governance (100%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Public Disclosure Copy Total Project Cost: 40.00 Total Bank Financing: 40.00 Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 40.00 Total 40.00 Environmental C - Not Required Category: Is this a No Repeater project? 2. Project Development Objective(s) The project development objective is to strengthen public investment management capacity and civil servant performance evaluation processes in targeted ministries in order to improve service delivery outcomes 3. Project Description Page 1 of 10 A. Description Lending instrument and components Public Disclosure Copy 1. The proposed Project will be financed by an Investment Project Financing (IPF) grant of US$40.00 million. The modality for project implementation will consist of a combination of results- based financing, which will be linked to the achievement of agreed-upon performance indicators (Disbursement Linked Indicators - DLIs) and the reimbursement of a portion of eligible expenditures, as well as technical assistance support, where disbursements will be based on outputs. 2. The Project supports the implementation of critical capacity-building aspects of five national programs developed under the overarching PDES: the State Modernization Program (PNME), the 3rd Public Financial Management Reform Program (PRGFP3), the 3N Initiative, the National Health Sector Program (PDS) and the newly adopted Education Sector Program (PSEF). The Project will particularly target twelve eligible expenditure programs (EEP) which are part of the five selected sector programs. 3. The approach adopted by the Project is to support government-identified solutions to core public sector capacity and systems deficits and to apply these in selected sectors to produce tangible development and service delivery results in the medium term. The Project’s support for national programs facilitates a locally developed and owned and, therefore, feasible reform program. The focus on results-based disbursements is intended to address the collective action problem and create direct incentives to encourage the different sector actors to perform. 4. In order to address the governance risks associated with security in the country, the project will also provide limited support to the security sector in the form of (i) horizontal capacity building in core planning and budget execution functions and (ii) technical assistance to strengthen sectoral financial management information systems. The project follows carefully the recommendations of Public Disclosure Copy the 2013 Public Expenditure Review on Security and takes into account the institutional mandate of the World Bank Group with respect to the sector. 5. The project components will be phased to ensure that capacity-building support, technical assistance and coaching on change management and rapid results delivery will be available early during project implementation. In a low-capacity environment this will help to ensure that implementing ministries receive the necessary support to assist them in achieving the DLIs. A. Project Components 6. There are two components. The first finance selected sub-programs (Eligible Expenditures Programs – EEPSs) that support key government programs and the PDES. Funding of this component will be results-based and dependent on achievement of agreed-upon DLIs. The second will provide technical assistance to facilitate the achievement of the program results included in the first component. COMPONENT 1 Supporting Service Delivery Results 7. The Project will target its support towards the achievement of results in twelve sub- Page 2 of 10 programs (EEPs) within five selected sectors: civil service, public financial management, agriculture, health and education. With respect to the selection of sectors, the Project places the emphasis on sectors of particular importance to the country’s economic and social development. It seeks to Public Disclosure Copy harness existing momentum in sectors in which reform efforts have advanced and in which existing Bank or other development partner support is available. In so doing, the Project seeks to further catalyze results and fill the gap often identified in vertical sectoral support by (i) addressing systemic and cross-cutting public sector issues that affect sectoral performance; and (ii) introducing targeted rapid results initiatives and change management processes, as well as creating incentives to reward performance in achieving results. The selection of sectors has been guided by the Government and takes into account the comparative advantage of the Bank and those of other donors engaged in supporting the Global Capacity Building Program. Sub-component 1.1 Core Public Sector Reforms 8. This sub-component seeks to strengthen the Administration’s absorptive capacity to facilitate more rapid and efficient public investment management and service delivery. It will target critical aspects of human resource management and financial management by supporting the Government’s PRGF3 and State Modernization programs. As described below, Component 2 will provide complementary training and equipment to support the achievementof these reforms. Sub-component 1.1.1 Human Resource Management 9. The project will support the Ministry of Civil Service and Administrative Reform and the High Commission for State Modernization (HCME) to effectively carry out critical elements of the Government’s National Policy for State Modernization (PNME), which includes the Program for Administrative Reform. The objective of this new program is to promote improved performance and productivity of ministries and individual civil servants and strengthen the accountability of ministries towards the Executive. The project will focus on sub-program two of the State Modernization program and will assist the Government in improving and consolidating merit-based promotion and Public Disclosure Copy performance management processes. 10. EEP 1: Development of Human Resources Performance Evaluation System. Given the limited progress made to date in developing and applying a robust HR performance system, the Ministry will first focus on laying the regulatory and organizational framework needed to apply the Civil Service Organic Law 2007/27 . The Ministry will then focus on supporting the development, adoption and annual review of results-based performance contracts for ministries (plans d’actions) and civil servant managers (lettres de mission) in selected se ctors. Sub-component 1.1.2 Public Financial and Investment Management 11. This sub-component will support the Government’s ongoing PRGFP3 program, more specifically in the areas related to budget execution and public investment. The objective of this reform is to improve public investment management systems and strengthen budget formulation, monitoring and reporting processes. The project will target multiple sub-programs of the PRGFP3 : (i) sub-program 5, strengthen public policy budgeting at the center and sector levels (MTEF); (ii) sub-program 8, improve capacity for planning and execution of public procurement; and (iii) sub- program 9, rationalize and improve treasury management. Page 3 of 10 12. EEP 2: Establish coherent and realistic MTEFs (global and sector). Main activities will focus on the strengthening of the capacity of the Directorate of Budget and the Directorate of Financial Reforms of the Ministry of Finance, as well as the Directorates in charge of financial resources Public Disclosure Copy (DRFM) and planning (DEP) in line ministries. Special attention will also be given to improving the relevant information systems to ensure swifter preparation and implementation of policy-based and multi-year programs. 13. EEP 3: Strengthen capacity for public procurement. This sub-program seeks to introduce procedural guidelines to simplify administrative, financial and procurement processes. It will focus in particular on: (i) mainstreaming the use of procurement plans in line ministries, and (ii) strengthening the capacity of the General Directorate of Procurement (DGCMP). A key goal of this program is to ensure that all line ministries are able, at the beginning of fiscal year, to present a procurement plan of at least 10 million CFA for implementation during the year. 14. EEP 4: Rationalize and improve cash flow management. This sub-program will help to ensure that treasury plans are based on the amount and flow of expenditures. The treasury plan of the DGTP will be established based on the commitment plan issued by the DGB. The sub-program will also facilitate the closure of bank accounts owned by public entities and the consolidation of remaining accounts. 15. EEP 5: Strengthen capacity for planning, programming, monitoring and evaluation of development programs. This sub-program will help: (i) build the planning and prioritization capacity of the planning staff in line ministries; (ii) reorganize the structures in charge of public investment planning and equip them with tools to facilitate mandatory preliminary studies (technical feasibility, cost estimations and impact); and (iii) create a hierarchical system of risk-based controls for public investments and reorganization of the structures charged with public investment execution to formalize the modalities for cooperation between the General Directorate of Planning (DGP), the General Directorate of Budget (DGB) and the General Directorate of Treasury and Public Accounting (DGTCP). Public Disclosure Copy Sub-component 1.2 Agriculture Sector 16. This sub-component will assist in accelerating the pace of implementation of the large-scale 3N program. The project will specifically support the first and second sub-programs of the 3N initiative with the objectives of enhancing agricultural production and improving the coordination and implementation of the 3N initiative. 17. EEP 6: Improve agricultural productivity and revenue generation in irrigated areas. The project will target improved agricultural production by supporting rapid results-driven processes to: (i) strengthen advisory and technical support to agricultural producers; and (ii) increase the availability of high grade seed and irrigation equipment. 18. EEP 7: Improve productivity of rain-fed agriculture . The project will improve productivity by providing advisory and technical support to agricultural producers. 19. The agriculture sector sub-component will complement existing vertical World Bank support to the sector. In particular, it will enhance sectoral capacity to execute public investments in irrigation in complementarity to the support for irrigation provided by the Niger Basin Water Page 4 of 10 Resources Development project, the GFRP2 and the PRODEX. It will also focus on upstream issues of productivity to supplement the extensive support currently provided to downstream transformation and market-related activities through the PRODEX. Public Disclosure Copy Sub-component 1.3 Public Health 20. The objective of this sub-component is to improve the coordination, planning and human resource allocation associated with the implementation of the National Health Program. The Pro gram will target sub-programs three, four and six of the PSF. Sub-program three seeks to facilitate the sufficient provision of competent and motivated human resources across health facilities. Sub- program four targets the availability of quality pharmaceutical supplies and sub-program six aims to enhance governance and leadership in the sector. 21. EEP 8: Adequate human resources deployment. The sub-program seeks to facilitate the sufficient provision of competent and motivated human resources across health facilities. The project will support the application of a human resources planning and projection system, the introduction of regional competency pools and the elaboration and application of modern sectoral performance management and incentive systems. 22. EEP 9: Good provision of medicines and key medical inputs. The sub-program will help medical facilities to prevent stock-out of essential medical supplies. The reform of the pharmaceutical agency, the Nigerien Society of Pharmaceutical Industries (Société Nigérienne des Industries Pharmaceutiques – SONIPHAR), the streamlining of logistics processes and stronger accountability measures will be critical. The Project will assist: (i) improved regulatory arrangements in conformity with the WAEMU directives; (ii) the identification of reform options for the privatization/ restructuring of SONIPHAR; (iii) the elaboration of a strategy to combat the illicit market for pharmaceuticals; and (iv) tools to support the management of pharmaceuticals across the supply chain. Public Disclosure Copy 23. EEP 10: Governance and Leadership. Under this sub-program, support will be given to enhancing the planning, FM and monitoring and evaluation functions of the Ministry of Health in order to strengthen governance and leadership in the implementation of the PDS. It will include support for the development of Service Delivery Indicators (SDI) on the performance of health facilities (see Annex 2 for details). 24. The support proposed through this sub-component will complement the World Bank’s support of the health SWAp for PDS implementation which is expected to be extended through a new operation. Sub-component 1.3. Education 25. The objective of this sub-component is to strengthen management and institutional capacity in the sector to support the implementation of the new Education Sector Plan. In close coordination with the World Bank-managed basic education project under preparation (financed by the Global Partnership for Education), the Program will support more efficient use of resources for improved access and quality through the development and implementation of a human resource management strategy and improvements to the monitoring and evaluation system. The Project will assist the Ministry of Primary Education in the following two programs: Page 5 of 10 26. EEP 11: Improve teacher deployment and management. A strategy will be developed, as well as a performance-based management system based on best international practices. Public Disclosure Copy 27. EEP 12: Information system and M&E. Under this sub-program, support will be given to developing a process for the collection, analysis and capitalization of quantitative information on the performance school facilities across the country through the roll-out of facility based surveys and the introduction of Service Delivery Indicators (see Annex 2 for details). This process will ensure the availability of up-to-date, disaggregated quantitative data at the facility level which will enable the Ministry of Primary Education to make assess input avai lability, and human resource skills and effort at the facility level, measure the effects of key policies (evaluate progress) and take informed corrective actions (for instance teachers’ ratios). The publication of SDIs will also help to strengthen accountabil ity of service providers towards the final beneficiaries. COMPONENT 2 Technical Assistance 28. This component will complement the first component by financing selected inputs for which resources are not readily available in the national budget or for which the Government has requested more intensive supervision support. Funding of this component will not be linked to DLIs. It will finance IT systems and equipment and technical assistance. Sub-Component 2.1 Provision of Information Systems and Equipment 29. The objective of this sub-component is to facilitate efficient and effective public expenditure and service delivery through the installation or upgrading of modern information systems. The activities envisaged under this sub-component reflect the priorities identified by the Government and they complement the extensive assistance already provided by other partners including the French Public Disclosure Copy Cooperation, BAD, UNDP and EU. The project will specifically finance: (a) Upgrading the planning and M&E systems in selected sector ministries. Current planning systems lack dynamic decisional tools to allow for quick information updates about the project life cycle. Planners need to have ready access to reliable and current information in order to develop appropriate procurement plans and conduct effective monitoring and evaluation. (b) Interconnection of planning and financial management systems. Existing sectoral and investment planning systems are not adequately connected to financial management systems and this limits the ability of administrators to plan and manage procurement on the basis of reliable and up-to- date information on the availability of financial resources. Current advances in technology mean that dynamic dashboards can quickly be built, without significant financial investments, through the extraction of data across various information systems. (c) Upgrading of the security sector’s financial management information systems. Following the recommendations of the Public Expenditure Review of the Security Sector 2013, and in view of the Bank’s limited institutional mandate for engagement in the sector, technical assistance will be directed to strengthening the financial management information systems in the sector. This support has specifically been requested by the Government and satisfies the World Bank legal criteria for engagement (see Annex 9). Page 6 of 10 (d) Consolidation of the information systems managed by the National Statistical Institution. The support will assist the National Institute for Statistics (Institut National des Statistiques - INS) to Public Disclosure Copy upgrade its systems and ensure better interconnections with sectoral information systems to enhance the centralization and capitalization of data on development outcomes. (e) Support for the development of tailored one-stop customs and anti-money laundering information management systems. In order to address critical upstream bottlenecks that affect public investment management, the project will provide support for th e development of information management systems associated with (i) the creation of a one stop shop for customs transactions; and (ii) the anti-money laundering and financing of terrorism initiative led by the National Unit for the Treatment of Financial Information (Cellule Nationale de Traitement des Informations Financiers – CENTIF). Sub-component 2.2. Change Management 30. The objective of this sub-component is to cultivate a culture of collaboration for results and ownership of reform processes from within the Administration. Support will be given to the application of change management tools and targeted training in leadership, coaching, results-based management and rapid results initiatives. The process will be built around: (a) a series of seminars engaging high-level leadership to improve leadership skills, identify major challenges, build consensus, mobilize various levels of stakeholders and establish a favorable environment for implementation by the teams. (b) technical assistance to support the roll-out of successive cycles of rapid result initiatives (RRI) to achieve results fast (100 days) in the implementation of small-scale, tangible results in the agriculture, health and education sectors. These results will be aligned with high-level leadership priorities, which will be initially defined during the high-level seminars. The technical assistance Public Disclosure Copy will support the attainment of the sectoral DLIs under component one whilst simultaneously reinforcing a performance-driven and results-oriented culture in the public administration. (c) a network of international coaches will support the progressive development of national coaches to support national capacity building and the institutionalization of a results-oriented culture. National coaches will be selected on the basis of international standards and will be institutionally anchored in one or more training national institution (eg. The National Administration and Magistrates School - ENAM). Sub-component 2.3 Training This sub-component will focus on building the skill set of civil servants to undertake core public sector management functions through in-service training. The project will strengthen national training institutions and establish possible partnerships with foreign institutions, in order to upgrade the skills of current staff and also build the skill base of new entrants to the civil service. It will facilitate large scale training of civil servants and young people by local institutions such as the ENAM and, on an exceptional basis, by foreign training institutions. In particular, support will be given to (a) develop an accreditation program for national training institutions to ensure good quality and standardized training, (b) improve upon, and scale up, modular training of civil servants in planning, budgeting, monitoring, procurement, tax management and customs administration; and (c) Page 7 of 10 develop an accreditation program for trained civil servants. Sub-component 2.4 Project Implementation Support Public Disclosure Copy 31. Additional support will be provided to the Monitoring and Evaluation Unit in the Ministry of Planning to optimize coordination and swift implementation of the project. Given the added responsibilities that the unit will assume with respect to the implementation of the Project, extensive support will be required from both the Government and the donors to strengthen the unit’s operating capacity. This sub-component will accordingly support: (i) the recruitment of and payment of qualified staff (not public servants), as well as the provision of technical assistance and other capacity building inputs; (ii) a monitoring and evaluation review; and (iii) annual project external audits. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) 5. Environmental and Social Safeguards Specialists Paivi Koskinen-Lewis (AFTCS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ No BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Public Disclosure Copy Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No 4.12 Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Page 8 of 10 None 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Public Disclosure Copy 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. B. Disclosure Requirements If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP 7.60 - Projects in Disputed Areas Has the memo conveying all pertinent information on the Yes [ ] No [ ] NA [ ] international aspects of the project, including the procedures to be followed, and the recommendations for dealing with the Public Disclosure Copy issue, been prepared Does the PAD/MOP include the standard disclaimer referred to Yes [ ] No [ ] NA [ ] in the OP? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Page 9 of 10 Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in Public Disclosure Copy the project legal documents? III. APPROVALS Task Team Leader: Name: Robert A. Yungu Approved By Regional Safeguards Name: Abdoul Wahabi Seini (RSA) Date: 30-Mar-2014 Advisor: Sector Manager: Name: Miria A. Pigato (SM) Date: 31-Mar-2014 Public Disclosure Copy Page 10 of 10