The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) REPORT NO.: RES37370 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF STRENGTHENING SYSTEMS FOR SOCIAL PROTECTION AND CIVIL REGISTRATION PROJECT APPROVED ON DECEMBER 2, 2016 TO NEPAL SOCIAL PROTECTION & JOBS GLOBAL PRACTICE SOUTH ASIA REGION Regional Vice President: Hartwig Schafer Country Director: Idah Z. Pswarayi-Riddihough Regional Director: Lynne Sherburne-Benz Practice Manager: Stefano Paternostro Task Team Leader: Jasmine Rajbhandary, Phillippe George Pereira Guimaraes Leite The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) ABBREVIATIONS AND ACRONYMS DONIDCR Department of National ID and Civil Registration CR Civil Registration DOCR Department of Civil Registration FM Financial Management IECCD International Economic Cooperation and Coordination Division LL Local Levels MOFAGA Ministry of Federal Affairs and General Administration MOHA Ministry of Home Affairs NIDMC National ID Management Centre SSA Social Security Allowances SSSPCR Strengthening Systems for Social Protection and Civil Registration SU Service Units NPR National Population Register The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) BASIC DATA Product Information Project ID Financing Instrument P154548 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 02-Dec-2016 30-Nov-2021 Organizations Borrower Responsible Agency Department of National ID and Civil Registration,Ministry Government of Nepal of Home Affairs Project Development Objective (PDO) Original PDO The project development objective is to improve the coverage of social security allowances and civil registration, and the deliveryof social security allowances. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59120 02-Dec-2016 23-Jan-2017 21-Jul-2017 30-Nov-2021 150.00 12.16 135.61 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. Project implementation has been under way for 2.5 years, and the achievement of the Project Development Objective (PDO) is rated Moderately Satisfactory while Implementation Progress (IP) is Moderately Unsatisfactory. 2. The Government of Nepal, through its Ministry of Finance, sent a letter to the World Bank on January 22, 2019 informing of the October 14, 2018 merger of the Department of Civil Registration (DOCR) and National ID Management Centre (NIDMC) into the Department of National ID and Civil Registration (DONIDCR). The letter further requested adjustment and changes to the project to address the merger. A two-stage restructuring was agreed to address the merger and changes in scope and implementation arrangements. 3. The first restructuring, to change the name of the implementation agency from the Department of Civil Registration (DOCR) /Ministry of Federal Affairs and General Administration (MOFAGA) to Department of National ID and Civil Registration (DONIDCR) / Ministry of Home Affairs (MOHA), was completed on March 2019. 4. This proposed second restructuring, aims to address the change in scope of the project, sub-national implementation arrangements and any changes necessary in the Results Framework to improve both Progress Towards achievement of PDO and Overall Implementation Progress. The proposed restructuring also includes a cancellation of SDR 25,461,200 (about US$37 million equivalent) as per the letter from MOF dated August 1, 2019 requesting the restructuring. 5. As far as disbursements, the project is at 8% disbursement rate. II. DESCRIPTION OF PROPOSED CHANGES 6. The Strengthening Systems for Social Protection and Civil Registration (SSSPCR) Project supports the development of the national population registry, strengthening of the civil registration system, and modernization of the payment system. It was designed to address some of the civil registration system gaps and to contribute to the development of a more robust and complex foundational system to uniquely, securely and accurately identity the Nepali population. The Project was prepared with MOFAGA team, and the Project Management Unit set at the DOCR, which was the department in charge of civil registration system and social security allowance payments. As a result of the institutional reforms to improve Government of Nepal management capacity, as well as efficacy of policies and programs in the new federal context, DOCR and NIDMC were merged, to form DONIDCR and placed under MOHA, which now is the project implementing agency. 7. To reach project goals, accommodate the institutional reforms and address the Government request to cancel of SDR 25,461,200 (about US$37 million equivalent), which is due to: i) dropping of door to the door data collection approach in component 1, ii) changes in implementation arrangements, and iii) the short remaining period of implementation, the proposed changes for the restructuring are on: Institutional and Implementation Arrangements, Finance management, Procurement, and Component Activities. More specifically: a. Institutional and Implementation Arrangements: i. Provisions for District Level Project Implementation Unit and District Level Project Coordination Committee will be removed. The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) ii. Local Levels will be responsible for project implementation at the local level with support from project-financed staff. iii. A Local Level Project Coordination Committee will be created to ensure broader local level stakeholder engagement. b. Financial Management: i. The PMU must hire one financial management specialist and a senior Accounts assistant to be assigned within 3 months of the restructuring completion. The financial management specialist will also support with project reporting, and one person in each of the Service Units will be trained to support LLs financial management activities for the project following the financial management guidelines prepared by the PMU. ii. The expenditures to be incurred by the LLs will be budgeted as Conditional Grants (one of the fiscal transfers from the Federal government to the Local Levels) for covering costs of Service Units (SU) and implementation of field activities. iii. The details of the required internal controls for the LLs in using project financing will be incorporated in the POM in line with the provisions of the relevant legal agreements. iv. Once the restructuring is completed, the financial progress of the project will be reported every 4 months through the Interim Unaudited Financial Reports (IUFRs) to be submitted within 60 days from the end of each period. PMU will consolidate financial information received from LLs into the IUFR. v. PMU will consolidate SOEs received from LLs before submission. vi. PMU will develop appropriate project reporting templates for the LLs and demonstrate implementation of timely and quality reporting from LLs in coordination with Financial Comptroller General’s Office and in line with Cabinet Decision of February 7, 2019 and Appropriation Bill FY 2019- 20; vii. PMU will incorporate appropriate provisions in the Operating Guidelines of the project issued by PMU for the entire implementation period of the Project to ensure implementation of reporting and control mechanism, and will ensure that the terms of Financing Agreement and the Project Operations Manual are passed down to all LLs as special conditions for their respective Conditional Grants following the Intergovernmental Fiscal Arrangement Act; viii. The PMU will hire a third-party auditor for assurance audit of LLs’ project expenditures until procedures and capacity are in place. c. Procurement: i. The devolution of project implementation to Local Level (LLs) will entail transfer of some small value procurement activities to the LLs. The LLs will be responsible for implementing procurement activities following national procurement procedure by incorporating them in respective annual procurement plan of the LLs. The procedures for local level procurement will be set out in Project Operation Manual (POM). ii. The PMU procurement specialist will also support with project reporting, and one person in each the Service Unit will be trained to support LLs in implementing procurement activities for the project following the financial management guidelines prepared by the PMU. iii. The PMU will also monitor the local level procurement related expenditure based on the independent/external audit reports prepared by the Office of the Auditor General (OAG) or outsourced third-party auditors, as per prevailing laws. d. Components: The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) i. Component 1: Improving Coverage of Civil Registration and Social Security Allowance. It will now focus on setting up the foundations for the Civil Registration System (CRVS). It will improve the accessibility of CR services to the population and gradually establish the NPR to improve the coverage of social security allowances and increase civil registration. This will be done by increasing demand for registrations in the CR system via targeted outreach and communication campaigns, focusing on birth registration for children under 5 and other events in the past 12 months as well as eligible individuals not registered for Social Security Allowances (SSA). As such, component 1 will finance an extensive registration campaign to address the demand and supply side constraints in expanding the coverage of CR and SSA, instead of door-to-door data collection to establish the NPR. This will entail extensive communication and outreach, and registration camps at ward level and below to capture unregistered civil events and unregistered eligible SSA beneficiaries with a focus on birth registration of children under ii. Component 2: Modernizing Social Security Delivery Systems. The EEP under the component will continue to be the SSA program budget for the EEP districts but the SSA budget line has been moved under DONIDCR as of GON’s FY 2019-20. Eligible Expenditure Program thus means the SSA under the budget line 365015 until July 16, 2019 and 31401012 after July 17, 2019 in the EEP Districts. The proposed changes to the component are: 1. Revision to the approved e-payment strategy to address new role of LLs while ensuring minimum service standards and protocols as outlined in the strategy. 2. Revision of the definition of DLI 2 as well as the verification protocol, to reflect the new government structure, and address some challenges observed by the PMU to implement the e-payment strategy. Therefore, DLI disbursement rule will change from per district to per Local Level, and consequently, target coverage will change from the original two-third of local bodies in 25 districts to around 190 Local Levels (LLs) (one fourth of the total LLs) to be selected from all seven provinces ensuring proportional representation of each province. 3. DLI 2 to be further disaggregated into and replaced by 3 DLIs to reflect key milestones towards implementing the e-payment strategy as follows: a. DLI 2: Number of LLs with contracts/agreements with Payment Service Providers for delivery of SSA. b. DLI 3: Number of LLs with one installment of SSA payments delivered via e-payments. c. DLI 4: Number of LLs with three consecutive installments of SSA payments delivered via e-payments. 4. The verification protocols will be revised to align with the above changes: a. For DLI 2, PMU must present copies of the signed contracts or agreements for a minimum of three years b. For DLIs 3 and 4, PMU must present payment delivery and reconciliation reports generated from MIS, including: i. details of SSA amount as per MIS, ii. amounts transferred to the PSP(s), iii. the beneficiaries to be paid per PSP, iv. payments made to each of the beneficiary accounts by the PSP(s), v. instances of bounce-back and the amount(s) involved, and vi. the balance amount returned to DONIDCR. The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) c. For DLIs 3 and 4, PMU must present verification reports by way of audits/spot checks of a sample of payment transaction records/data through a verification agent arranged by the Government. d. For DLIS 3 and 4, within each LL, e-payments must reach at least 50% beneficiaries in their respective jurisdiction The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) The summary table for DLIs DLI Year 1 Year 2 Year 3 Year 4 Year 5 Until July 15, 2018 July 16, 2018- July 15, July 16, 2019- July 15, July 16, 2020- July 15, July 16, 2021- closing 2019 2020 2021 date 1 SSA Payment DLI 1 Target: Reform Strategy SSA Payment Strategy approved approved and adopted by MOFALD Value in SDR 5,025,000 2 Number of Districts DLI 2.1 Target: DLI 2.2 Target: DLI 2.3 Target: where Social Payments of SSA by Payments of SSA by Payments of SSA by Security Allowances Payment Service Payment Service Payment Service are delivered via e- Providers completed Providers completed Providers completed Payments for 3 consecutive SSA for 3 consecutive SSA for 3 consecutive SSA Payment Periods and Payment Periods and Payment and payment payment reconciliation payment reconciliation recorded recorded in MIS in 5 reconciliation in MIS in additional 10 SSA Districts. recorded in MIS in SSA Districts. additional 10 SSA Value in SDR: Districts. Value in SDR: 5,025,000 10,050,000 Value in SDR: 10,050,000 Current Met and disbursed Not met due to Status structural changes, which affected contracting payment service providers as described in the e- payment strategy, despite the fact that 135 local governments making electronic payments. 2 Number of LLs with DLI 2.1 Target: DLI 2.2 Target: contracts/agreemen 150 LLs with An additional 40 LLs ts with Payment 6,907,895 contracts/agreements with Service Providers signed to allow SSA contracts/agreements for delivery of SSA entitlements to be signed to allow SSA delivered via e- entitlements to be 1,842,105 payments. delivered via e- payments. Value in SDR: 5,025,300 Value in SDR: Roll over: Yes 1,340,080 Disbursement Rule: Roll over: Yes SDR 1,675,100 each for the first two sets of 50 Disbursement Rule: LLs that achieve the DLI SDR 33,502 for each 2.1, and thereafter, SDR additional LL that 33,502 for each achieves DLI 2.2, with The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) additional LL that a maximum of SDR achieves DLI 2.1, with a 1,340,080 maximum of SDR 5,025,300 3 Number of LLs with DLI 3.1 Target: DLI 3.2 Target: one installment of 150 LLs with one An additional 40 LLs SSA payments installment of SSA with one installment of delivered via e- payments delivered by SSA payments delivered payments. e-payments. by e-payments. Value in SDR: Value in SDR: 2,680,000 10,050,000 Roll over: No Roll over: Yes Disbursement Rule: Disbursement Rule: SDR 67,000 for each SDR 3,350,000 each additional LL that for the first two sets achieves DLI 3.2, with a of 50 LLs that achieve maximum of SDR the DLI 3.1, and 2,680,000 thereafter, SDR 67,000 for each additional LL that achieves DLI 3.1, with a maximum of SDR 10,050,000 4 Number of LLs with DLI 4.1 Target: DLI 4.2 Target: three consecutive 50 LLs with three An additional 140 LLs installments of SSA consecutive with three consecutive payments delivered installments of SSA installments of SSA via e-payments. payments delivered by payments delivered by e-payments. e-payments. Value in SDR: Value in SDR: 4,740,120 1,692,900 Roll over: No Roll over: Yes Disbursement Rule: Disbursement Rule: SDR 1,692,900 for the SDR 1,692,900 for the first the first 50 LLs that first set of 50 LLs that achieve the DLI 4.2, and achieve the DLI 4.1. thereafter, SDR 33,858 for each additional LL that achieves DLI 4.2, with a maximum of SDR 4,740,120 i. Component 3: Institutional Strengthening. The proposed changes below reflect the transition to the new government structure: 1. Support activities to coordinate with relevant province level agencies, including orientation workshops for all stakeholders. 2. Increase administrative support to the Service Units (SUs) to be established in each LL to ensure all financial management, procurement, safeguards and reporting functions are The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) carried out as per standards and guidelines to reflect the increase in implementation role of LLs. ii. Component 4: Project Management, Monitoring and Evaluation. The proposed changes are: 1. Change in the organogram of the Project Management Unit (PMU) to reflect the new implementing agency’s structure. 2. Removal of District Level-Project Implementing Unit structure to reflect the changes following transition to federal structure. Possible role of district offices of the new implementing agency under discussion. 3. Local Level Governments to be the main implementing partner at the local level, with the executive office of the LLs being responsible for all project related financial management, procurement, reporting and oversight functions. A Local Level Project Coordination Committee to be formed to ensure broader stakeholder engagement at local level. I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Safeguard Policies Triggered ✔ EA category ✔ The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) APA Reliance ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Improving Component 1: Improving Coverage of Civil Registration and 37.00 Revised Coverage of Civil Registration 27.00 Social Security Allowances and Social Security Allowances Component 2: Modernizing Component 2: Modernizing 220.00 Revised Social Security Delivery 44.00 Social Security Delivery Systems Systems Component 3: Institutional Component 3: Institutional 50.00 Revised 37.40 Strengthening Strengthening Component 4: Project Component 4: Project Management, Monitoring and 16.00 Revised Management, Monitoring and 4.60 Evaluation Evaluation TOTAL 323.00 113.00 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation LOAN IDA-59120- Disburs 107,600,000.0 RESTRUCTUR XDR 25,461,200.00 15-Aug-2019 82,138,800.00 001 ing 0 ING, COST SAVINGS The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-59120-001 | Currency: XDR Current Expenditure Category: Goods, non-consulting services, consultants’ iLap Category Sequence No: 1 services, Training and Workshops, excluding those under C 64,550,000.00 138,046.28 15,054,900.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: Operating Costs excluding those under Category 4 12,900,000.00 36,911.00 822,800.00 100.00 100.00 Current Expenditure Category: Eligible Expenditure Program under Part 2.1 of iLap Category Sequence No: 3 the Project 30,150,000.00 5,001,401.97 30,553,400.00 100.00 100.00 Current Expenditure Category: Transfers to Local Levels for Goods, non- iLap Category Sequence No: 4 consulting services, consulting services, consultants’ services (including 0.00 0.00 35,707,700.00 100 Total 107,600,000.00 5,176,359.25 82,138,800.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 7,000,000.00 25,200.00 2018 20,499,999.96 223,500.00 2019 33,500,000.04 7,434,700.00 2020 39,999,999.96 34,316,600.00 2021 34,500,000.00 45,000,000.00 The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) 2022 14,500,000.00 26,000,000.00 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  High  Substantial Macroeconomic  Substantial  Moderate Sector Strategies and Policies  Moderate  Moderate Technical Design of Project or Program  Substantial  Substantial Institutional Capacity for Implementation and  High  High Sustainability Fiduciary  Substantial  Substantial Environment and Social  Moderate  Moderate Stakeholders  Substantial  Substantial Other Overall  High  Substantial OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action Finance Agreement :PSC, PTC, and PMU maintenance | Description :The Recipient shall maintain throughout the period of implementation of the Project, the Project Steering Committee and the Project Technical Committee with functions, composition, and resources IDA-59120 acceptable to the Association and the Project Complied with No Change Management Unit, housed within DOCR, with adequate professional and administrative staff, in numbers and with qualification and experience and under terms of reference satisfactory to the Association. | Frequency :CONTINUOUS Finance Agreement :Project Management Unit staffing (1) | Description :The Recipient shall hire two IDA-59120 Expected soon Revised procurement specialists and one financial management specialist, with qualification and experience, and under The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) terms of reference satisfactory to the Association, as part of the PMU. | Due Date :One month after the Effective Date Finance Agreement :Project Management Unit staffing (1) | Description :The Recipient shall hire one financial management specialist and a procurement specialist, Proposed SOON with qualification and experience, and under terms of reference satisfactory to the Association, as part of the PMU. Finance Agreement :Project Management Unit staffing (2) | Description :The Recipient shall hire a senior accounts assistant with qualification and experience IDA-59120 Expected soon No Change and under terms of reference satisfactory to the Association as part of the PMU. | Due Date : 3 months after the Effective Date Finance Agreement :Human Resources Firm | Description :The Recipient shall hire a human resources firm under terms of reference acceptable to the Association to assist the Recipient in the selection and IDA-59120 recruitment of qualified firms and individuals, including Expected soon Revised contractors and consultants serving in the DL-PIUs and SUs, in accordance with the provisions of the Operations Manual and the Procurement Plan. | Due Date : 10 months after the Effective Date Finance Agreement: Human Resources Firm | Description: The Recipient shall hire a human resources firm under terms of reference acceptable to the Association to assist the Recipient in the selection and Proposed SOON recruitment of qualified individuals serving in the SUs, in accordance with the provisions of the Operations Manual and the Procurement Plan| Due Date: 10 months after the Effective Date IDA-59120 Finance Agreement :District-level project Not yet due Marked for implementation units | Description :The Recipient shall Deletion establish, and thereafter maintain throughout the period of implementation of the project, a district-level project implementation unit (DL-PIU) at the respective DDC, to be led by the local development officer or his/her designate and meeting the requirements set The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) forth in the Operations Manual, including with adequate professional and administrative staff, in numbers and with qualification and experience, and under terms of reference satisfactory to the Association, including a project officer, an MIS assistant, and an administrative/accounts assistant. | Due Date : Prior to the initiation of any procurement activities under the project at the district level in a given district | Frequency :CONTINUOUS Finance Agreement :District Project Coordination Committees | Description :The Recipient shall establish, and thereafter maintain throughout the period of implementation of the project, a District Project Coordination Committee (DPCCs), at the respective Marked for IDA-59120 Not yet due DDC, to be chaired by the local development officer and Deletion with functions, composition, and resources acceptable to the Association. | Due Date: 1 month after the establishment of each DL-PIU. | Frequency: CONTINUOUS Finance Agreement :Service Units | Description :The Recipient shall establish one or more Service Units in numbers and with adequate professional and administrative staff, with qualification and experience, and under terms of reference satisfactory to the IDA-59120 Not yet due Revised Association at selected locations in each such district, all in accordance with the requirements set forth in the Operations Manual. | Due Date: 2 months after the completion of the data collection activities under Part 1.1 of the project. Frequency: CONTINUOUS Finance Agreement :Service Units | Description :Prior the initiation of registration camps, The Recipient shall establish one Service Unit with adequate professional Proposed and administrative staff, with qualification and NYD experience, and under terms of reference satisfactory to the Association, all in accordance with the requirements set forth in the Operations Manual. IDA-59120 Finance Agreement :Eligible Expenditure Program | Not yet due No Change Description :The Recipient shall provide social security allowances to enrolled beneficiaries in the EEP districts in accordance with eligibility criteria and procedures The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) acceptable to the Association and described in the Social Security Program Operation Procedure; and ensure that the amount of SSAs are paid to the intended eligible enrolled beneficiaries. | Frequency :CONTINUOUS Finance Agreement :Payment Agreement | Description :The Recipient shall engage the services of one or more PSPs in accordance with criteria acceptable to the Association as set forth in the SSA payment strategy and conclude, and thereafter implement, one or more IDA-59120 Not yet due No Change service agreements with each PSP operating in EEP districts, on terms and conditions acceptable to the Association. | Due Date: Prior to initiating e-payments for the delivery of SSAs in a given SSA district. Frequency :CONTINUOUS Finance Agreement :Safeguards | Description :The Recipient shall carry out the project in accordance with the Vulnerable Community Development Plan, and IDA-59120 pursuant to the objectives, policies, procedures, and Not yet due No Change other provisions set forth therein, in a manner and substance satisfactory to the Association. | Frequency :CONTINUOUS Finance Agreement :Mid-Term Report | Description :The Recipient shall prepare, under terms of reference satisfactory to the Association, and furnish to the IDA-59120 Not yet due No Change Association a midterm report on the progress achieved in the carrying out of the project. | Due Date :30-Sep- 2019 Finance Agreement :Mid-term Review | Description :The Recipient shall review jointly with the Association IDA-59120 the midterm report and take all measures required to Not yet due No Change ensure the efficient completion of the project and the achievement of its objectives. | Due Date :31-Oct-2019 IDA-59120 Finance Agreement :Audits | Description :The Recipient Expected soon No Change shall have its Financial Statements audited in The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) accordance with the provisions of Section 4.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one Fiscal Year of the Recipient. The audited Financial Statements for each such period shall be furnished to the Association not later than nine (9) months after the end of such period. | Frequency :Yearly Finance Agreement: POM: The Recipient shall: (a) update and adopt the Operations Manual, satisfactory to the Association within 30 days of the effectiveness of IDA-59120 Not yet due New this amendment to the Agreement; and (b) carry out the Project in accordance with such Operations Manual, . which manual shall set forth, inter alia:” The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) . Results framework COUNTRY: Nepal Strengthening Systems for Social Protection and Civil Registration Project Project Development Objectives(s) The project development objective is to improve the coverage of social security allowances and civil registration, and the deliveryof social security allowances. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Improving Coverage of Civil Registration and Social Beneficiaries in the SSA 2,260,400.00 2,377,000.00 2,532,300.00 2,741,200.00 2,959,000.00 2,959,000.00 program (Number) Action: This indicator has been Revised Female (Number) 1,446,700.00 1,521,300.00 1,620,700.00 1,754,400.00 1,893,800.00 1,893,800.00 Action: This indicator has been Revised Male (Number) 813,700.00 855,700.00 911,600.00 986,800.00 1,065,200.00 1,065,200.00 Action: This indicator has been Revised Number of births registered within the first year of birth 0.00 0.00 0.00 180,500.00 380,000.00 736,000.00 (Number) The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Rationale: Total number births registered in the DoNIDCR MIS within 12 months of birth While the project will monitor changes in the registration for other vital events, the PDO-level indicator will measure birth registrations because of their links to other essential public services as described in this Project Appraisal Document. Projections for other vital events (especially marriage, divorce, and migration) is Action: This indicator has difficult to calculate given lack of available data to base those on. been Revised Birth registrations for 2 to 4-year-olds (percentage) will be tracked as an intermediate results indicator. Note: The baseline figures capture percentage of births registered and not percentage of certificates issued. Estimated based on CBS projection of births with estimated 50% in Year 4 and 60% in Year 5 Modernizing Social Security Delivery System Number LLs with one installment of SSA DLI 3 0.00 0.00 0.00 0.00 150.00 40.00 190.00 payments delivered via e- payments (Number) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Component 1: Improving Coverage of Civil Registration and Social Security Allowances The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Number of births registered in MIS within the first year 7,000.00 173,800.00 371,200.00 440,400.00 of birth (Number) Action: This indicator has been Marked for Deletion Percentage of births registered for 0 to 4-year- 50.80 52.00 56.00 75.00 olds (less than 5 years) (Percentage) Rationale: Increase in coverage of birth registration as percent of population in that age group. Enumerator to be derived from the MIS data, denominator to be estimated Action: This indicator has based on CBS population projections. been Revised Note: The baseline figures capture percentage of births registered and not percentage of certificates issued. Number of LLs where targeted outreach 0.00 0.00 0.00 0.00 560.00 753.00 campaigns have been conducted (Number) Action: This indicator has been Revised Number of deaths registered in MIS within one 4,000.00 4,000.00 57,400.00 100,000.00 127,600.00 150,200.00 year of the event occurring (Number) Action: This indicator has been Revised The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Percentage of ineligible/unaccounted for 10% of beneficiaries 10% of beneficiaries 10% of beneficiaries 10% of beneficiaries in beneficiaries eliminated 0.00 0.00 in the new e- in the new e- in the new e-payment n.a. all e-payment districts from the SSA beneficiary list payment districts payment districts districts (Text) Action: This indicator has been Marked for Deletion Component 2: Modernizing Social Security Delivery Systems SSA Payment Strategy DLI 1 No Yes Yes approved (DLI 1) (Yes/No) Number of districts with an electronic population 0.00 11.00 23.00 49.00 75.00 75.00 75.00 register established (Number) Action: This indicator has been Marked for Deletion Percentage of SSA beneficiaries satisfied with 0.00 0.00 0.00 0.00 0.00 80.00 the improved delivery in SSA payments (Percentage) Action: This indicator has been Revised Number of LLs with contracts/agreements DLI 2 0.00 0.00 0.00 150.00 40.00 190.00 signed to allow SSA entitlements to be The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 delivered via e-payments (DLI 2) (Number) Action: This indicator is New Number of LLs with one installment of SSA 0.00 0.00 150.00 40.00 190.00 payments delivered via e- payments (DLI 3) (Number) Action: This indicator is New Number of LLs with three consecutive SSA payments DLI 5 0.00 0.00 0.00 0.00 50.00 140.00 190.00 delivered via e-payments (DLI 4) (Number) Action: This indicator is New Component 3: Institutional Strengthening Number of LLs with staff trained on improved 0.00 0.00 0.00 0.00 400.00 753.00 business processes (Number) Action: This indicator has been Revised Number of service units 0.00 0.00 0.00 0.00 753.00 753.00 established (Number) Action: This indicator has been Revised The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Grievance mechanism established and operational No No No No Yes Yes in the MIS (Yes/No) Action: This indicator has been Revised Linkage between CR and SSA system established No No No No No Yes (Yes/No) Action: This indicator is New IO Table SPACE Disbursement Linked Indicators Matrix DLI IN00709852 ACTION DLI 1 SSA Payment Strategy approved (DLI 1) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Yes/No 5,025,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No Date of the Financing 5,025,000.00 Agreement - July 15, 2018 July 16, 2018–July 15, 2019 0.00 The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) July 16, 2019–July 15, 2020 0.00 July 16, 2019–July 15, 2021 0.00 July 16, 2021- Closing date 0.00 DLI IN00709988 ACTION DLI 2 Number of LLs with contracts/agreements signed to allow SSA entitlements to be delivered via e-payments (DLI 2) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 8,750,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Date of the Financing 0.00 0.00 Agreement - July 15, 2018 July 16, 2018–July 15, 2019 150.00 0.00 July 16, 2019–July 15, 2020 150.00 6,907,895.00 $46,053 x 150 LLs July 16, 2019–July 15, 2021 40.00 1,842,105.00 $46,053 x 40 LLs July 16, 2021- Closing date 190.00 0.00 total Rationale: LLs where at least 3-year term contracts or agreements have been signed with PSPs to deliver SSA payments, as per the Action: This DLI is New standards defined in the ePayment Strategy The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) DLI IN00709853 ACTION DLI 3 Number LLs with one installment of SSA payments delivered via e-payments Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Number 5,025,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Date of the Financing 0.00 5,025,000.00 Agreement - July 15, 2018 July 16, 2018–July 15, 2019 0.00 0.00 July 16, 2019–July 15, 2020 150.00 0.00 July 16, 2019–July 15, 2021 40.00 0.00 July 16, 2021- Closing date 0.00 Rationale: Action: This DLI has been This DLI was cancelled due to the revision made in all DLIs to reflect the new government structure. Marked for Deletion DLI IN00735227 ACTION DLI 4 Number of LLs with one installment of SSA payments delivered via e-payments (DLI 3) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Number 17,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) Date of the Financing 0.00 Agreement - July 15, 2018 July 16, 2018–July 15, 2019 0.00 July 16, 2019–July 15, 2020 0.00 July 16, 2019–July 15, 2021 150.00 13,815,789.00 150 x US$ 92,105 July 16, 2021- Closing date 40.00 3,684,211.00 40 x US$ 92, 105 total target is 190 Action: This DLI is New DLI IN00709989 ACTION DLI 5 Number of LLs with three consecutive SSA payments delivered via e-payments (DLI 4) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output Yes Number 8,843,050.00 0.00 Period Value Allocated Amount (USD) Formula Baseline 0.00 Date of the Financing 0.00 0.00 Agreement - July 15, 2018 July 16, 2018–July 15, 2019 0.00 0.00 July 16, 2019–July 15, 2020 0.00 0.00 July 16, 2019–July 15, 2021 50.00 2,327,118.00 $46,542 x 50 July 16, 2021- Closing date 140.00 6,515,932.00 $46542 x 140 Action: This DLI is New The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) Verification Protocol Table: Disbursement Linked Indicators DLI_TBL_VERIFICATION DLI 1 SSA Payment Strategy approved (DLI 1) SSA Payment Reform Strategy will guide the DOCR's plans and actions to improve delivery of SSA payments, particularly the Description transition to e-payments where possible. Data source/ Agency Verification Entity Procedure DLI_TBL_VERIFICATION DLI 2 Number of LLs with contracts/agreements signed to allow SSA entitlements to be delivered via e-payments (DLI 2) LLs where at least 3-year term contracts or agreements have been signed with PSPs to deliver SSA payments, as per the Description standards defined in the ePayment Strategy DONIDCR Data source/ Agency DONIDCR Verification Entity Copies of at least 3-year term contracts or agreements which have been signed with PSPs to deliver SSA payments, as per Procedure the standards defined in the ePayment Strategy, which cover the respective LLs DLI_TBL_VERIFICATION DLI 3 Number LLs with one installment of SSA payments delivered via e-payments LLs where one installment of SSA benefit payment has been delivered by the PSP into individual beneficiary account and Description payment reconciliation recorded in MIS. Data source/ Agency Verification Entity The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) Procedure DLI_TBL_VERIFICATION DLI 4 Number of LLs with one installment of SSA payments delivered via e-payments (DLI 3) Must present payment delivery and reconciliation reports generated from MIS including: i) details of SSA amount as per MIS ii) amounts transferred to the PSP(s) iii)the beneficiaries to be paid per PSP iv) payments made to each of the beneficiary accounts by the PSP v) instances of bounce back and the amount(s) involved; and vi) the balance amount returned to DONIDCR Description For a LL to be eligible, e-payments must reach at least 50% beneficiaries in their respective jurisdiction. For a payment method to qualify as ‘e-payments’ as defined here, SSA benefit payments must be delivered by a PSP, based on a specific contract or a general agreement with the Government, through individual accounts in the names of the beneficiaries with a two-factor authentication (such as biometric) of the identities of the individual beneficiaries so as to ensure the right person receives the right amount of SSA benefits in each payment cycle. A payment is considered ‘delivered’ by e-payments once a corresponding benefit amount is electronically transferred into his/her beneficiary account at the PSP. DONIDCR Data source/ Agency Third party Verification Agent arranged by the Government Verification Entity Verification reports by way of audits/spot checks of a sample of payment transaction records/data through a verification agent arranged by the Government Procedure DLI_TBL_VERIFICATION DLI 5 Number of LLs with three consecutive SSA payments delivered via e-payments (DLI 4) LLs where SSA payments have been delivered into individual beneficiary accounts by the contracted PSP for three Description consecutive trimesters and payment reconciliation recorded in MIS. Three consecutive trimesters may cover more than one fiscal year depending on when e-payments start during a given fiscal year. The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) DONIDCR and Third Party Verification agent Data source/ Agency Third Party verification agent arranged by the Government Verification Entity 2. Verification report by way of audits/spot checks of a sample of payment transaction records/data. Verification agent to be arranged for by the Government. Data source: DLI verification agent For a LL to be eligible, e-payments must reach at least 50% beneficiaries in their respective jurisdiction. For a payment method to qualify as ‘e-payments’ as defined here, SSA benefit payments must be delivered by a PSP, based on a specific contract or a general agreement with the Government, through individual accounts in the names of the beneficiaries with a two-factor authentication (such as biometric) of the identities of the individual beneficiaries so as to ensure the right person receives the right amount of SSA benefits in each payment cycle. Procedure A payment is considered ‘delivered’ by e-payments once a corresponding benefit amount is electronically transferred into his/her beneficiary account at the PSP. Three consecutive payment cycles may cover more than one fiscal year depending on when e-payments start during a given fiscal year. One SSA payment period consists of a period of four calendar months. Once e-payment rollout is considered ‘accomplished’ in a LL and the corresponding DLI amount is disbursed, the same district cannot be counted again as another accomplished DLI. . The World Bank Strengthening Systems for Social Protection and Civil Registration Project (P154548) Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document