INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC1433 Date ISDS Prepared/Updated: 21-Mar-2013 Date ISDS Approved/Disclosed: 25-Mar-2013 I. BASIC INFORMATION A. Basic Project Data Country: Ukraine Project ID: P128344 Project Name: Social Safety Nets Modernization Project (P128344) Task Team Katerina Petrina Leader: Estimated 23-Oct-2013 Estimated 24-Apr-2014 Appraisal Date: Board Date: Managing Unit: ECSH3 Lending Specific Investment Loan Instrument: Sector(s): Other social services (80%), Central government administration (20%) Theme(s): Social safety nets (60%), Other social development (20%), Other social protection and risk management (20%) Financing (In USD Million) Total Project Cost: 300.00 Total Bank Financing: 300.00 Public Disclosure Copy Total Cofinancing: Financing Gap: 0.00 Financing Source Amount Borrower 0.00 International Bank for Reconstruction and Development 300.00 Total 300.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives The development objective of the proposed project is to improve the performance of Ukraine’s social assistance and social services system for low-income families, to support gradual de- institutionalization of childcare services and strengthen the administration of both benefits and services. The Project Development Objective would be achieved by: • Designing and implementing improved parameters of the selected social assistance programs (eligibility criteria, benefits duration, recertification and intake processes) to support the living standards of low-income families, especially those with children, and protect the poor from the effects of energy price increases; • Establishing inter-program connections that would help increase synergy of support Public Disclosure Copy delivered through different programs and services to the same family on welfare; • Designing and implementing family support services to strengthen the ability of families to care for their children, prevent unnecessary placement of children in institutions and speed reunification; • Supporting measures for more efficient administration of social benefits and services through (i) strengthening performance management to be supported by the national MIS; (ii) streamlining oversight and control procedures under a central unit for social inspection; and (iii) integrating interfaces for various benefits and services in to a single MIS to support a one-stop shop business model for local welfare offices (LWOs). C. Project Description The proposed project would be implemented over six years, through a Result-Based Financing (RBF)/Specific Investment Loan (SIL) IBRD loan in the amount of US$ 300 million plus government counterpart funds of approximately US$ 2.3 billion to finance GMI program. The proposed project would consist of two inter-related components. As an RBF type operation, the first component would co-finance a share of the family transfer system aimed at protecting both large and single parent families, as these programs become more efficient in addressing poverty and as other categorical programs are consolidated and downsized. In this component, disbursements would be triggered by achievement of specific results (as discussed in more detail below). This component would foster the Government reform agenda, namely (1) stronger reliance on means-tested programs with higher impact on poverty and improving targeting accuracy through parametric reforms; and introduction of pro-poor mitigation measures in the face of energy price increases; (2) effective social support to families in need and vulnerable families through concerted provision of benefits and services and supporting de-institutionalization of children services; (3) modernization of administration to ensure efficient oversight and controls in both benefits and services and reduced Public Disclosure Copy administrative costs and private beneficiaries’ costs. The second component to follow standard World Bank procedures for investment lending would, through an array of TA activities, facilitate the implementation of parametric and administrative reforms envisaged under Component 1 and also help enhance the quality of social support with a stronger link between benefits and services and their greater customization aimed at sooner social activation of welfare recipients of working age but not employed, not receiving education or training and not disabled as well as family preservation and child institutionalization prevention. Administrative modernization would be supported with the further development of Management Information System built under the previous SASMP. This TA would contribute, inter alia, to improved oversight and control procedures. This component would also help to build the institutional framework for outsourcing services and, by way of supporting the Governments's plan for de-institutionalization of children services, would finance the investments and TA intended for transformation of institutional care into family- and community-based care in two selected oblasts. The relevant plans for transformation of the residential care in the two oblasts will be prepared and costed under the ECA Capacity Development grant. The two components are inherently linked through the definition of the results framework. Specifically, technical and system improvements as well as development of new models of service delivery supported by Component 2 contribute to the achievement of results that would trigger disbursements under Component 1 (they represent necessary, but not sufficient conditions to achieve the DLIs). With this approach, the value added would be generated from the interaction of the co- financing, the results framework, implementation support, direct technical investments in SSN Public Disclosure Copy administration, and the deeper, longer-term partnership and engagement between the World Bank and the GoU on SSN reforms. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be located nationwide; the specific project sites are going to be selected during implementation. E. Borrowers Institutional Capacity for Safeguard Policies The Ministry of social policy has extensive experience in implementing WB- financed operations, including management of civil works under Social Assistance System Modernization project and Social Investment Fund project. The proposed project will rely on institutional and safeguard capacity of the Social Investment Funds to conduct civil works in two selected oblasts. F. Environmental and Social Safeguards Specialists on the Team II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The project has been classified as Category B BP 4.01 because anticipated transformation of institutions for orphans and disabled children might include some small civil works (renovations) within the existing footprint of the facilities. The scope of these works will not be known before appraisal. An Environmental Public Disclosure Copy Management Framework (EMF) will be prepared prior to appraisal. Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/ No BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP No Any works that might be financed under the 4.12 project will not involve any change in the existing footprint of facilities and all land used are public and that there are no squatters or occupants that will be involuntarily displaced, either physically or economically, therefore OP4.12 is not triggered. Safety of Dams OP/BP 4.37 No Projects on International No Public Disclosure Copy Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 16-Sep-2013 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: Environmental management framework (EMF) will be prepared prior to Appraisal, September 2013. IV. APPROVALS Task Team Leader: Name: Katerina Petrina Approved By: Regional Safeguards Name: John R. Butler (RSA) Date: 21-Mar-2013 Coordinator: Sector Manager: Name: Andrew D. Mason (SM) Date: 25-Mar-2013 Public Disclosure Copy 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.