The World Bank Report No: ISR9688 Implementation Status & Results Honduras Social Protection (P115592) Public Disclosure Copy Operation Name: Social Protection (P115592) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 07-Apr-2013 Country: Honduras Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): PRAF, UAP-SDP Key Dates Board Approval Date 29-Jun-2010 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date Last Archived ISR Date 25-Aug-2012 Effectiveness Date 29-Oct-2010 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 08-Oct-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed Project would support the Government's objective of building an improved social protection system mainly by improving institutional capacity for designing and implementing a Conditional Cash Transfer (CCT) program. Within this context, the Project#s development objectives are to: (i) strengthen institutional capacity of the Ministry of the Presidency and the PRAF agency to administer and manage a CCT program through the development of mechanisms and instruments for targeting of beneficiaries, monitoring compliance, making payments and transparency; and (ii) increase school attendance among students in grades 1 to 6 and the utilization of preventive health services among families participating in the CCT Program. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Institutional strengthening of the Bono 10,000 Program 8.70 Co-financing Conditional Cash Transfers (grants) 31.30 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The Honduras Social Protection Project ($40 million), effective since 2010 and closing in December 2014, has already disbursed 54% of funds. The project supports the implementation of the Conditional Cash Transfer (CCT) program “Bono 10,000�, the first nation-wide CCT in Honduras, through co-financing transfers (in the amount of $32 million, which represents 80% of the project funds). It also includes TA technical assistance to strengthen institutions in charge of implementing Bono 10,000 (Secretary of Presidency and Page 1 of 7 The World Bank Report No: ISR9688 PRAF), as well as to the Ministry of Social Development, which is in charge of designing and implementing a national Social Protection policy, and as well as the instrument to target social interventions (Registro Unico de Beneficiarios). The Bono 10,000 program is also co-financed by the Inter-American Development Bank (IADB) and the Central American Bank for Economic Integration (CABEI), and is already the main pillar of the social protection system in the country (the program with the largest coverage and budget). Public Disclosure Copy The Bono 10,000 Program's focus on the accumulation of human capital and its expanding coverage position has constituted a key pillar of the country's social protection system and an entry point for other interventions focusing on the poor and vulnerable. Since 2010, the Program has reached 350,000 poor families, with 267,000 currently receiving payments on a regular basis (214,000 in rural areas, and 53,000 in urban areas), and of which 25,762 rural families are financed through the World Bank Social Protection Project. During 2012, the team has worked closely with the Government in strengthening program implementation and impact, and also identifying and overcoming challenges. In April 2012, the team organized a two-day intensive internal workshop, with participation of high-level authorities, co-financing partners, and external advisors, in which the various parties discussed and agreed on a reform path on issues related to: a) coverage and targeting of the program;, b) information systems and verification of co-rresponsibilities;, c) payment mechanisms;, d) institutional arrangements;, and e) fiscal sustainability (all activities supported by the TA technical assistance component of the Bank project). The project also supports the formulation of the national social policy (PPS), the national evaluation system of social programs and policies (SUEPPS), and the design and implementation of the National Registry of Beneficiaries of Social Programs (RUB) within the Secretary of Social Development (SDS). The PPS has been formulated and approved by Social Cabinet on April 2012, and the conceptual design of the RUB and the implementation of its modules were completed by the end of 2012. The RUB has a coverage of 1.3 million actual and potential beneficiaries and has information of 29 databases corresponding to 18 public institutions and 17 programs and projects. Different targeting exercises were conducted by the SDS using information in the RUB to feed in the design and implementation of programs at central and municipal levels. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage of conditional cash transfers Percentage Value 0.00 65.00 received by households in the poorest quintile Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments Program level indicator. Unable to measure, income/ Baseline value recorded at consumption data not negotiations. regularly monitored for program beneficiaries. Public Disclosure Copy Percentage of registered households of the Percentage Value 0.00 74.00 80.00 Program whose co-responsibilities are verified Date 19-May-2010 19-Oct-2012 31-Dec-2014 and reported Comments Program level indicator. Program level indicator. Baseline value recorded at negotiations. Page 2 of 7 The World Bank Report No: ISR9688 Percentage of students in grades 1 to 6 Percentage Value 0.00 83.00 80.00 participating in the Program who comply with Date 19-May-2010 19-Oct-2012 31-Dec-2014 the co-responsibility Comments Program level indicator. Program level indicator. Public Disclosure Copy Baseline value recorded at negotiations. Percentage of children, aged 0-5 years Percentage Value 98.00 participating in the Program with complete Date 19-May-2010 14-Mar-2013 31-Dec-2014 vaccination scheme Comments National level indicator. There Not available. was no baseline value recorded at negotiations. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage of schools reporting compliance in Percentage Value 0.00 99.00 90.00 accordance to payments cycle Date 19-May-2010 19-Oct-2012 31-Dec-2014 Comments Program level indicator. Program level indicator, Baseline value recorded at school enrollment and negotiations. attendance reported. Percentage of Health Centers reporting Percentage Value 0.00 85.00 50.00 compliance in accordance to payment cycle Date 19-May-2010 19-Oct-2012 31-Dec-2014 Comments Program level indicator. Program level indicator, only Baseline value recorded at registration in health center negotiations. reported so far (not attendance). Monitoring and Evaluation System Developed Text Value N/A In process System running and and publicly available information publically accessible. Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments Program level indicator. MIS design finalized. Public Disclosure Copy Baseline value recorded at Consultants hired and negotiations. expected to finalize implementation in June 2013. Communication Strategy Implemented Text Value N/A In process Running: At least five national radio/TV stations broadcast results on Program Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments Baseline value recorded at Firm has been hired and finalizing communication Page 3 of 7 The World Bank Report No: ISR9688 negotiations. Program level campaign design. Expected to indicator. implement it in April 2013. Percentage of families registered in SIRBHO Percentage Value 3.00 0.00 50.00 with updated information Public Disclosure Copy Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments Baseline value recorded at Delayed. negotiations. Program level indicator. Percentage of complaints and appeals Percentage Value 35.00 80.00 attended to and resolved Date 19-May-2010 19-Oct-2012 31-Dec-2014 Comments No baseline data at time of Complaints system is being negotiations. developed. Number of visits to the Progam webpage Number Value 0.00 6330.00 500000.00 Date 19-May-2010 19-Oct-2012 31-Dec-2014 Comments Baseline value recorded at PRAF is developing a new negotiations. Program level web page to replace the indicator. current one, to also include information of Program beneficiaries. Strategy for streamlining social assistance Text Value None Strategy approved by Social Strategy approved by Social programs and subsidies approved and Cabinet Cabinet implemented Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments Baseline value recorded at Social Protection Strategy negotiations. approved on March 2012 Number of families receiving payments on a Number Value 0.00 25762.00 30000.00 regular basis Date 19-May-2010 19-Oct-2012 31-Dec-2014 Comments Baseline value recorded at WB project only. negotiations. Number of families whose complaince with co- Number Value 0.00 30413.00 30000.00 responsibilities is verified and reported Date 19-May-2010 19-Oct-2012 31-Dec-2014 Public Disclosure Copy Comments Baseline value recorded at WB project only. negotiations. Percentage of students in grades 5 and 6, Percentage Value 10.00 8.80 particiapting in the Program, who dropout of Date 19-May-2010 14-Mar-2013 31-Dec-2014 school Comments Baseline value recorded at No Data is Available on negotiations. Progress. Ministry of Presidency and PRAF will work with Ministry of Education to provide updated information. Page 4 of 7 The World Bank Report No: ISR9688 Percentage of students, participating in the Percentage Value 63.00 80.00 Program, that graduate from 5th to 6th grade Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments National level indicator. No Data is Available on Public Disclosure Copy Baseline value recorded at Progress. Ministry of negotiations. Presidency and PRAF will work with Ministry of Education to provide updated information. Percentage of pregnant women who receive Percentage Value 75.00 prenatal controls Date 19-May-2010 14-Mar-2013 31-Dec-2014 Comments National level indicator. No No Data is Available on baseline value was recorded Progress. Ministry of at negotiations. Presidency and PRAF will work with Ministry of Health to provide updated information. Data on Financial Performance (as of 11-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P115592 IDA-47740 Effective 29-Jun-2010 02-Aug-2010 29-Oct-2010 31-Dec-2014 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115592 IDA-47740 Effective XDR 26.50 26.50 0.00 14.32 12.18 54.00 Disbursement Graph Public Disclosure Copy Page 5 of 7 The World Bank Report No: ISR9688 Public Disclosure Copy Key Decisions Regarding Implementation In October, 2012, the team conducted a Mid-Term Review (MTR) that discussed advances and challenges in program implementation, which are described below. As a consequence of these recommendations, the program operational guidelines were adjusted with consent of all co-financing institutions. Joint WB-IADB-CABEI missions on February and March 2013 also checked verified on implementation progress and progress on agreements set out during from the MTR. Coverage: Initially , the Government aimed to increase program coverage from 100,000 in early 2011 to 600,000 households by the end of the current administration (December 2013). All co-financing partners recommended early that operational complexities and financial constraints would not allow reaching such an ambitious target. The Government agreed in June 2012 to contain the expansion of program coverage to not exceed 350,000 households. Due to families dropping out of the program due because ofto outdated information (changes in family compositions, newborns, new pregnancies, deaths, etc.) the IADB and the Bank projects will finance the recertification of families in extreme poor communities with outdated data. Benefit Level: Benefits, at Lps. 10,000 ($500) a year, are quite generous per international standards, and represent about 25% of the consumption/income levels of extreme poor families. The Government agreed with the Bank and other donors on the importance of containing benefits levels to ensure financial sustainability and limit the potential for labor Public Disclosure Copy disincentives, and thus has committed not to increase them. Targeting: The program targets poor households through a formula that combines geographic targeting with household-level targeting. The recent baseline impact evaluation shows that 84% of Bono's beneficiaries are poor (and 74% extreme poor), which suggests inclusion errors very well aligned with much more mature CCT programs in the region (Brazil, Mexico, Colombia). The recertification of families will likely further reduce leakages further. Exclusion errors: It is also important to improve the inclusion of families and reduce errors of exclusion from the following 3 three sources: (1) lack of national identity card (it is estimated that 20% of children, most of them in extreme poverty, do not havecount with proper IDs, and are thus unjustifiably excluded from the program), (2) exclusion of children ages 5-6 who are not covered by the health co-responsibility (age 0-5) nor the education co-responsibility (age 6-18), and (3) exclusion of households with children ages 14-18 who live in areas lacking a school for this age group. The WB team has recommended close coordination with the national registry of persons to prioritize attention to households without identification. The Bank is also providing TA on how to adjust co-rresponsibilities and means of verification for program operation in remote areas with scarce supply of services, given the inability of families to comply with co-rresponsibilities even if they are willing to so. Page 6 of 7 The World Bank Report No: ISR9688 Human Capital Conditionalities and Transparency: Transfers under the Bono 10,000 Program are conditioned on compliance with school enrollment and attendance of 6-18 year-old children, and inscription and attendance to regular health check-ups for pregnant women and children 0-5 years old. As of today, 99% of schools and 85% of health centers with Bono 10,000 beneficiaries report enrollment compliance on a regular basis. The management information system (MIS) in the Ministry of Education system has been strengthened to Public Disclosure Copy guarantee with compliance with attendance rates, and now is moving to online reporting. The Ministry of Health has also finalized geo-referencing health centers and proper monitor compliance with health protocols. Remaining challenges include supply-side gaps in education and health service provision in remote rural areas. Operating Systems, Oversight & Controls: The Bank project is also supporting the strengthening of PRAF MIS to handle a large number of beneficiaries: the design of the new MIS has finalized, and its implementation will be ready by mid 2013. In the meantime, the external audits serve an important role for oversight and controls, reviewing eligibility, payments and corresponsibilities for the beneficiary households. So far, audit findings have shown less than 4% of questionable cases (for which the Government has investigated and provided supplementary information as justification for eligibility). The impact evaluation results on poverty reduction and human capital accumulation are expected by June 2013. The Government is also finalizing a targeting assessment, a program process evaluation, the implementation of the communication campaign, the system of grievances and complaints (through a call center and webpage), and it is coordination a beneficiary assessment survey with civil organizations as part of the social audit process of the program. Payment Systems and Frequency: Under current program operational rules, transfers were made three times a year, conditional on corresponsabilities verified concurrently, and mostly delivered in cash through mobile units of a public bank. These caused substantial delays and unpredictability for beneficiaries. As an agreement from the MTR was to allow payments to be based in corresponsabilities verified in the previous period. Also, the Government is increasing payment through agencies wherever they are available (our TA has shown that around 40,000 households could be paid this way), and has moved forward (though with delays) with the implementation of pilots to test alternative payment mechanisms (cooperatives, cell phone payment). The Government has also revised the program operational rules to increase frequency of payments to a bimonthly schedule in 2013, which would allow better consumption smoothing, though effective implementation of this change will require moving forward with the suggested improvements. Institutional arrangements: The program institutional setting is complex, as in most CCT programs elsewhere. It counts with an Intersectoral Committee that dictates the general rules and dispositions such as the operational manual. The Secretary of Presidency (SDP) provides overall coordination; PRAF in the main executing agency, with Ministries of Health and Education as co-executors; and the Ministry of Social Development is in charge of the Social Protection policy formulation, targeting, and evaluation. In practice, in the past there have been duplication in roles and processes and information has not always flowed well among the multiple institutions involved. As part of the MTR, the team has provided TA and agreed with the Government to streamline operating processes by transferring all executing and fiduciary responsibilities to PRAF (which has a stronger technical and fiduciary team). Regarding the subcomponent that supports the strengthening of the SDS, in 2013 SDS will use the RUB to support the recertification process of the Bono 10,000 beneficiaries. The main challenge during the Government transition is to position the RUB in the social protection transition agenda as a well-developed and functioning platform for the identification of beneficiaries of the social policy. This is an instrument that has been gradually used by different institutions, and should be consolidated as a key element of the implementation of the social protection policy. The Project will thus finance training and dissemination workshops in the use and data uploading of the different systems (RUB, SUEPPS and related components) as well as for seeking agreements on institutional and operational arrangements for the implementation of the system beyond 2013. Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Projects P144928-Honduras Additional Financing Social Protection Page 7 of 7