Document of The World Bank FOR OFFICIAL USE ONLY Report No: 86230-BO INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 15,083,200  (US$23.3 MILLION EQUIVALENT) TO THE PLURINATIONAL STATE OF BOLIVIA FOR A STRENGTHENING STATISTICAL CAPACITY AND THE INFORMATIONAL BASE FOR EVIDENCE-BASED PLANNING PROJECT May 19, 2014 Poverty, Gender and Equity Unit Poverty Reduction and Economic Management Sector Management Unit Bolivia, Chile, Ecuador, Peru, and Venezuela Country Management Unit Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective March 31, 2014 Currency Unit = Bolivian Boliviano 6.86 Bolivianos = US$1 US$1.5456 = SDR 1 PLURINATIONAL STATE OF BOLIVIA FISCAL YEAR January 1 – December 31 Vice President: Jorge Familiar Country Director: Livia M. Benavides Country Manager Faris H. Hadad-Zervos Sector Manager: Louise Cord Task Team Leader: Maria Ana Lugo 2   ABBREVIATIONS AND ACRONYMS   AF Additional Financing CAS Country Assistance Strategy / Country Partnership Strategy CPI Consumer Price Index CPS Country Partnership Strategy CUT Cuenta Única de Tesoro (Single Treasury Account) DA Designated Account DHS Demographic and Health Survey (Encuesta de Demografía y Salud) DO Development Objective EC Economic Census (Censo Económico) ECH Encuesta Continua de Hogares FAO United Nations Food and Agriculture Organization FM Financial Management IDA International Development Association (Asociación Internacional de Fomento) IFRs International Financial Review INE Instituto Nacional de Estadística (National Statistics Institute) IP Implementation Performance IPs Indigenous People ISDS Integrated Safeguards Datasheet ISR Status and Results reports LAC Latin America and the Caribbean M&E Monitoring and Evaluation MTR Mid Term Review NPHC National Population and Housing Census NyPIOC Naciones y Pueblos Indígena Originario Campesinos (Indigenous Peoples) ORAF Operational Risk Assessment Framework PDO Project Development Objective PID Project Information Document PPF Project Preparation Facility PSS Plurinational Statistical System SIGMA Government's integrated financial management system TA Technical Assistance UNFPA United Nations Fund for Population Agency UPA Unidad de Producción Agropecuaria (Agricultural Production Unit) WB World Bank 3   BOLIVIA STRENGTHENING STATISTICAL CAPACITY AND THE INFORMATIONAL BASE FOR EVIDENCE-BASED PLANNING PROJECT ADDITIONAL FINANCING CONTENTS Project Paper Data Sheet Page 5 Project Paper Page 11 I. Introduction Page 11 II. Background and Rationale for Additional Financing Page 12 III. Proposed Changes Page 16 IV. Appraisal Summary Page 24 Annexes Annex 1: Revised Results Framework Page 27 Annex 2: Revised Monitoring Indicators Page 29 Annex 3: Operational Risk Assessment Framework Page 34 Annex 4: Detailed Description of New Project Activities Page 39 Annex 5: Revised Estimate of Project Costs Page 48 4   ADDITIONAL FINANCING DATA SHEET Bolivia BO Strengthening Statistical Capacity AF ( P147051 ) LATIN AMERICA AND CARIBBEAN LCSPP . Basic Information – Parent Parent Project ID: P101336 Original EA Category: C - Not Required Current Closing Date: 15-Jun-2015 Basic Information – Additional Financing (AF) Additional Financing Project ID: P147051 Scale Up Type (from AUS): Regional Vice Jorge Familiar Proposed EA Category: C - Not Required President: Expected Effectiveness Country Director: Livia M. Benavides Date: 15-Dec-2015 Sector Director: J. Humberto Lopez Expected Closing Date: 15-Dec-2017 Sector Manager: Louise J. Cord Report No: PAD1000 Team Leader: Maria Ana Lugo Borrower Organization Name Contact Title Telephone Email Instituto Nacional de Luis Pereira Director (591-2) 2222333 lpereira@ine.gob.bo Estadisticas 5   Project Financing Data – Parent ( Strengthening Statistical Capacity and Informational Base for Evidence-Based Planning-P101336 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P101336 IDA-48450 Effective 13-Jan-2011 09-Mar-2011 01-Aug-2011 15-Jun-2015 15-Jun-2015 P101336 TF-13620 Effective 09-Oct-2013 09-Oct-2013 09-Oct-2013 31-Dec-2014 31-Dec-2014 Disbursements Dis- Un- % Project Ln/Cr/TF Status Currency Original Revised Cancelled bursed disbursed Disbursed IDA- P101336 Effective USD 50.00 50.00 0.00 42.81 5.97 85.61 48450 TF- P101336 Effective USD 0.24 0.24 0.00 0.00 0.24 13620 Project Financing Data – Additional Financing BO Strengthening Statistical Capacity AF ( P147051 ) [ ] Loan [ ] Grant [ ] IDA Grant [X] Credit [ ] Guarantee [ ] Other Total Project Cost: 26.16 Total Bank Financing: 23.31 Financing Gap: 0.00 Financing Source – Additional Financing (AF) Amount BORROWER/RECIPIENT 2.85 International Development Association (IDA) 23.31 Total 26.16     6   Policy Waivers Does the project depart from the CAS in content or in other significant respects? No Explanation Does the project require any policy waiver(s)? No Explanation Team Composition Bank Staff Name Title Specialization Unit Patricia Velasco E T Temporary LCCBO Lourdes Consuelo Sr Financial LCSFM Linares Management Specialist Karem Nathalia Program Assistant LCSPP Edwards de Izquierdo Elena Segura Labadia Senior Counsel Senior Counsel LEGLE Julio Ricardo Loayza Senior Economist co-TTL LCSPE Jonna Maria Lundvall E T Consultant LCSPP Jose Yukio Senior Procurement LCSPT Rasmussen Kuroiwa Specialist Pedro Jose Fernandez Consultant Technical Expert LCSPP Ayala Maria Ana Lugo Economist Team Lead LCSPP Jessica Diane Terry Operations Analyst Operations Analyst LCSPP Juan Marcelo Berthin Financial Management LCSFM 7   Heredia Specialist Marlene Siles Consultant LCSPP Adam John Behrendt Social Development Social Development LCSSO Specialist Specialist Non-Bank Staff Name Title Office Phone City Locations Country First Location Planned Actual Comments Administrative Division Bolivia National Bolivia X Institutional Data Parent ( Strengthening Statistical Capacity and Informational Base for Evidence-Based Planning-P101336 ) Sector Board Public Sector Governance Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Public Administration, Law, and Central government 46 Justice administration Public Administration, Law, and Sub-national 46 Justice government administration 8   Public Administration, Law, and Public administration- 8 Justice Agriculture, fishing and forestry Total 100 Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Economic management Economic statistics, modeling and 20 forecasting Public sector governance Managing for development results 40 Public sector governance Other public sector governance 40 Total 100 Additional Financing BO Strengthening Statistical Capacity AF ( P147051 ) Sector Board Poverty Reduction Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co- Co-benefits % benefits % Public Administration, Law, and Central government 46 Justice administration Public Administration, Law, and Sub-national 46 Justice government administration 9   Public Administration, Law, and Public administration- 8 Justice Agriculture, fishing and forestry Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Public sector governance Managing for development results 40 Economic management Economic statistics, modeling and 40 forecasting Public sector governance Other public sector governance 20 Total 100 10   BOLIVIA: Strengthening Statistical Capacity and the Informational Base for Evidence- Based Planning Project Additional Financing I. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide an additional credit in the amount of SDR 15,083,200 (USD$23.3 million equivalent, IDA Credit 5484-BO, IDA Credit 5485-BO) to the Plurinational State of Bolivia for the Strengthening Statistical Capacity and the Informational Base for Evidence-Based Planning Project (StatCap, P101336, Credit 4845-BO). 2. The proposed additional credit would help finance a scaled-up set of activities to enhance the impact of a well-performing project. In particular, the Additional Financing (AF) will support expanded activities, which complement the original project, with the aim of further strengthening of statistical capacity in Bolivia. This will be achieved through: (i) the updating of national economic statistics through an Economic Census, an Agricultural survey, and the construction of a new Consumer Price Index; (ii) the updating of national social statistics, through a Demographic and Health Survey and a Household Budget Survey; and (iii) the modernization of the country’s Statistical System with quality standards and methodologies, and up-to-date technology. These activities will support the development of better measures of poverty, growth and other social outcomes important for measuring progress towards the World Bank’s twin goals of poverty reduction and the promotion of shared prosperity, as well as contribute to greater transparency and accountability of government programs and policies. The new information will provide essential data to support the implementation of the 2025 Patriotic Agenda. The activities are fully aligned with the Project Development Objective (PDO) of the original project, which remains unchanged: The project development objective is to strengthen the statistical capacity and improve the informational base of the Recipient, in order to provide quality information, as defined by its reliability, timeliness, accuracy and representativeness with the level of disaggregation necessary to support systems for planning, designing, monitoring and evaluating public programs and policies. 3. Institutional Arrangements. The AF will maintain the same institutional arrangements and overall implementation mechanisms currently used by the parent project, with minor adjustments based on lessons learned from the implementation of the existing project. The implementing agency continues to be the National Institute of Statistics (INE, for the Spanish acronym), and the proceeds of the AF will be made available to INE through a Subsidiary Agreement. The execution of the agreement is established as an Effectiveness Condition in the Financing Agreement. 4. Additional Changes. This Project Paper also reflects: (i) the extension of the closing date of the original credit to December 15, 2017, in order to complete its activities (30 additional months); and (ii) modification to the disbursement categories, including a reallocation of resources across components. 11   II. Background and Rationale for Additional Financing in the amount of USD 23,3 million 5. The Original Credit. The original Project aims to strengthen statistical capacity and improve the informational base of the Recipient to serve as an input to the design, monitoring and evaluation of evidence-based policies and programs. In particular, the original project includes support for four core statistical operations: (a) Updating of the Multi-Purpose Cartography; (b) National Agricultural Census; (c) National Population and Housing Census (NPHC); and, (d) Continuous Household Survey. 6. Implementation of the Original Project. The original credit was approved on January 13, 2011 in the amount of SDR 31.9 million (US$50 million, at the time of signing) and became effective on August 1, 2011. Since effectiveness, the Project has satisfactory progress towards achievement of the Development Objective (DO) and Implementation Performance (IP). The exception was between April and November 2012 when both the DO and IP ratings were considered “Moderately-Satisfactory” due to slower progress than planned. This has been addressed through hiring new administrative staff in support of the project and specifically the Population and Housing Census and the Household Survey . To date, both Censuses have been completed in a satisfactory fashion. The coverage of the Population and Housing Census is close to 97% (above the 90% target) and 99% of municipalities have agricultural information collected. As of March 17, 2014, disbursement has reached 85.5% of the original credit amount. 7. Impacts and Dissemination. The core statistical operations funded by the original Project have already served as inputs to inform fiscal distribution of resources and to update the representation in the Asamblea Plurinacional. Additionally, the Government is improving its process of documentation and dissemination of data produced by INE. Specifically, the Government has prioritized developing the necessary systems to harmonize and disseminate micro data in a manner that is easily accessible to the public while preserving the anonymity of the respondents, using international standards. The documentation and dissemination activities are supported by a Recipient-Executed Grant (TF013620)1 that is linked to the original Project and funded by the Trust Fund for Statistical Capacity Building. The proposed statistical operations of the Additional Financing will also benefit from INE’s improved data documentation and dissemination capacity. Furthermore, the dissemination of the results will be based on considerations of the appropriate language, format and methods, and mobile teams will be set up to ensure that the information is widely accessible at the community level. 8. A Mid-term Review (MTR) was carried out in December 2013. The results achieved to date confirm that progress towards achieving the PDO remains satisfactory. The project objective remains a strategic priority for the Government. Several key lessons emerged from the MTR. In particular, it was agreed with the Government that for the continued success of the Project it will crucial to: (i) respect the carefully designed technical processes and timetables for the statistical operations; (ii) bring in international expertise to help ensure the quality of the statistical operations; and, (iii) expand INE’s technological capacity to respond to the public’s and government’s demand for timely information.                                                              1  The TFSBC (TF 013620) grant supports INE in to assure the quality and reliability of the statistical operations to be financed through the STATCAP credit.   12   9. With respect to implementation arrangements, the MTR stressed the importance of: (i) having an administrative team with experience in donor/externally-financed projects, in order to ensure timely progress of the project’s activities; (ii) ensuring that administrative and technical staff of INE are trained along with the consultants working on the project so that the knowledge is not lost once the project is over, and to allow them to apply their learning to other dimensions of INE not directly engaged in the project; and, (iii) maintaining adequate coordination and planning between the technical teams and INE’s administrative unit. 10. Rationale for Additional Financing. The original Project financed the development of core building blocks for an improved statistical information system in Bolivia. With technical assistance provided in the context of the original Project, the Government has demonstrated high capacity to perform these core statistical operations, which include updating the national cartography, conducting a Population and Housing Census, an Agricultural Census and annual household surveys. To build on the core statistical products of the original Project, the Ministry of Development and Planning has requested an Additional Financing to scale-up and support more sophisticated, non-routine statistical operations, as well as the consolidation of the Statistical System of the country. In particular, the AF will help finance the following complex activities that build on the activities of the original project through: (i) carrying out an Economic Census, an Agricultural survey, and the construction of a new Consumer Price Index towards updating the national economic statistics ; (ii) carrying out a Demographic and Health Survey and a Household Budget Survey towards updating national social statistics; and (iii) supporting the development of quality standards and methodologies, and up-to-date technology towards the modernization of the country’s statistical system. To ensure the effective and efficient implementation of these activities, technical and administrative cross-cutting teams will provide support throughout project execution. 11. Due to the nature of the activities, this Additional Financing is considered Technical Assistance (TA), in accordance with OP 8.40 (Technical Assistance) , which describes TA as “the transfer, adaptation, mobilization, and utilization of services, skills, knowledge, technology, and engineering to build national capacity on a sustainable basis.” More specifically, the activities under the AF will provide key information enhancing the capacity to monitor the effects of the country’s ongoing policy framework, including impacts on poverty, inequality and shared prosperity; undertake analytical work to underpin reform or policy development, including distributional and social analysis. Furthermore, the AF will strengthen the Recipient’s human and institutional capacity for policy reform. Overall, the results of the statistical operations described above will allow the Government to update its poverty line and will provide fundamental inputs for evidence-based decision making for economic, social and agricultural policies and programs. 12. The proposed Additional Financing is fully aligned with the development objectives of the original Project. The proposed AF is fully consistent with the current Country Partnership Strategy (CPS) 2012-2015 (Report No. 65108-BO), discussed by the Board of Executive Directors on December 1, 2011. In particular, the AF will contribute to the Results Area 4 on Public Sector Effectiveness, which identifies the limited amount of timely, reliable data with which to design policies and measure results as a key obstacle. Specifically, this AF will support the CPS’ established commitment to contribute to the improvement of the informational base for a monitoring and evaluation system and to build capacity in the National Statistics Institute. 13   Furthermore, the AF feeds directly into one of the three priority themes highlighted in the CPS Progress Report for the period FY2012-2015 (Report No. 82173-BO) discussed by the Board of Executive Directors on February 27, 2014., of enhancing the country’s systems to evaluate result-based development. 13. The Additional Financing is also fully aligned with Bolivia’s 2006 National Development Plan and the Bicentennial Patriotic Agenda 2025. The National Development Plan stresses the importance of collecting and disseminating information as a means to improve evidence-based decision-making and accountability, in a context of a strengthened role of the State in the country’s development process. Furthermore, as evidenced during the Mid-term Review of the original Project in December 2013, the information that has been produced so far has provided fundamental inputs for the development of policies such as the new 2025 Patriotic Agenda and of programs at both the sector and sub-national levels. The Government has identified further gaps and needs to be covered by the additional non-routine statistical operations proposed under this AF. The justification and link to specific priorities will be explained in more detail in the description of each activity in annex 4. 14. Partnerships. The World Bank in Bolivia has a strong presence in the technical donor group for monitoring for aid effectiveness, which provides a valuable setting for harmonization of development activities as well as for the sharing of information on monitoring and evaluation (M&E) related issues. In the implementation of the ongoing project, the World Bank has established strong collaboration with United Nations Population Fund (UNFPA) and the Food and Agriculture Organization (FAO). The collaboration will be strengthened and broadened in the implementation of the AF, with the Government of Canada, UNFPA, United Nations Children's Emergency Fund, the Pan-American Health Organization and the World Health Organization OPS/OMS on the Demographic and Health Survey (DHS), with FAO on the Agriculture Survey, and with the International Labor Organization for the Household Budget Survey and the Consumer Price Index. 15. Alternatives considered. Financing with the country's own resources was not an option due to limited resource availability. Alternative options were considered such as using a different lending instrument (Program-for-Results Financing / Development Policy Loan) or a new operation.. However, after careful considerations, the Government and the Bank agreed that an Additional Financing of the existing operation would be the best option to provide continuity to the current approach in supporting the intended capacity building while minimizing potential effectiveness delays. In this sense, the Bank financing will allow for the continuation of crucial technical support from the Bank, and from other international institutions and experts convened by the Bank. 16. Sustainability. A new Law of the Plurinational Statistical System (PSS) is currently under consultation with the relevant public entities and is expected to be approved in the coming months. This will strengthen INE’s role as the coordinating agency for the PSS and create mechanisms for the provision of resources for routine statistical operations. The activities under the Modernization component will further strengthen and support the capacity of INE and statistical units of the PSS to respond to the growing demands for official statistics. Within the new activities, there is also a stronger emphasis on the dissemination of results to a wide audience, intended to encourage continuous and broad use of the data and to foster a culture of using statistics for evidence based decision making. 14   17. Fiduciary arrangements. Procurement capacity and arrangements remain adequate. Since the last procurement review, INE has improved its contract information system. It has also recruited a dedicated procurement specialist for the project. These conditions need to be maintained to avoid procurement staff turnover and increase familiarity with Bank policies and norms. The Bank and INE have agreed to increase capacity by providing continuous training of technical and fiduciary staff in procurement and contract administration.  Proposed Financial Management arrangements are considered acceptable to the Bank, based on INE’s existing capacity and performance in the current STATCAP Project. Semi-annual financial reports will include original and AF proceeds and will be submitted to the Bank 45 days after the end of each calendar semester. Annual audited financial statements for the project as a whole will be submitted six months after the end of the Government’s fiscal year. The Project will require the transfer of funds to INE’s Regional Offices, which undertake responsibility for administrative tasks. In this context, INE is working on further strengthening its internal processes and procedures, mainly for the operation through Regional Offices. 15   III. Proposed changes Summary of Proposed Changes The proposed Additional Financing introduces six new statistical activities to scale up the developmental impact of the original project. The activities are described in detail in the Appraisal Summary. These proposed activities are fully aligned with the original Project Development Objective, which remains unchanged. To incorporate the new activities into the Project, the organizational structure of the components and the results framework will be updated.. The risks associated with the Project are included in the attached ORAF (see Annex 3). No new Safeguards are triggered, but based on the lessons learned during the implementation of the original Project a draft strategy for engagement with indigenous peoples (NyPIOCs, based on the Spanish acronym) that sets out the approach and practical methodological guidelines for the considerations of NyPIOC issues is now incorporated in the Operations Manual. The AF necessitates a modification and update to the disbursement table. Finally, the closing date of the original project will be extended from June 15, 2015 to December 15, 2017. Change in Implementing Agency Yes [ ] No [ X ] Change in Project's Development Objectives Yes [ ] No [ X ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ ] No [ X ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ X ] No [ ] Change in Legal Covenants Yes [ ] No [ X ] Change in Loan Closing Date(s) Yes [ X ] No [ ] Cancellations Proposed Yes [ ] No [ X ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ ] No [ X ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ ] No [ X ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] Change in Implementation Schedule Yes [ ] No [ X ] Other Change(s) Yes [ ] No [ X ] Development Objective/Results PHHHDO 16   Project’s Development Objectives Original PDO The project development objective is to strengthen the statistical capacity and improve the informational base of the Recipient, in order to provide quality information, as defined by its reliability, timeliness, accuracy and representativeness with the level of disaggregation necessary to support systems for planning, designing, monitoring and evaluating public programs and policies. Change in Results Framework Explanation: While the expected Project outcomes remain unchanged, the results indicators are being updated to reflect the new AF activities. The monitoring framework is being updated based on the inclusion of new activities and recommendations from the Mid-term Review to make existing monitoring milestones consistent. The updated Results Framework can be found in Annex 1 and the updated Monitoring Framework can be found in Annex 2.     17   Compliance l Other Changes to PHHOCS Safeguards Explanation: Like the original Project, OP4.10 is triggered for this AF given the significant presence of IPs in Bolivia and the importance of having quality statistical information on these communities. Given that the nature of the activities in the AF would help the Recipient to undertake analytical work necessary to underpin reform or policy development, as well as strengthen its human and institutional capacity for policy reform, they are considered technical assistance and hence, interim guidelines on the application of safeguards policies to Technical Assistance (TA) would apply. The technical assistance provided under the AF does not have direct adverse or positive impacts on Indigenous Peoples (based on the Bolivian constitutional definition of IPs as “naciones y pueblos indígena originario campesinos”, which together with Afro-Bolivians will be referred to as NyPIOCs in this document) during implementation of the Bank-financed activities. However, because the eventual use of outputs for policy-making could have potential social impacts, OP4.10 (Indigenous People) is triggered. In this context, and given INE’s demonstrated commitment in the original Project to ensure that the statistical activities are performed in a culturally appropriate manner it is not deemed appropriate or relevant to prepare any typical safeguards instruments prior to appraisal. Instead, based on the nature of the activities to be carried out, the existing institutional practices and the lessons learned from the implementation of the original Project, a draft strategy for engagement with NyPIOCs has been developed by the INE and incorporated into the Operations Manual to guide the execution of the AF. Extensive documentation has been provided by the INE concerning agreements and participation of the major indigenous organizations, as well as other social and economic organizations, and the modifications made as a result of these activities to the original Project. These documented activities demonstrate the institutional capacity and commitment of INE to engage with NyPIOCs and to take into account the diversity of these groups in Bolivia, as well as to adapt key elements of statistical operations to respond to cultural issues. A short note systematizing the documentation has been provided that includes lessons learned and best practices in engaging with NyPIOCs, as well as lists of the various agreements and participants. The main lessons learned during the implementation of the original Project is that involving community and local authorities in all the stages of the statistical operations has been key to ensure maximum coverage and quality of the data collected in both rural and urban settings. Other lessons include having “socialization” workshops where the objectives of the operation were presented and the questionnaires discussed with NyPIOC groups, adapting the training manual to local contexts, and having enumerators designated by the communities themselves which ensures that the questions can be asked in the relevant local language. Prior to the implementation of the National Agricultural Census, INE together with the five main NyPIOC organizations, developed a community engagement plan, and organized 200 information and feedback workshops (“talleres de socializacion”) with communities. These different engagements led, for instance, to the modification of the fieldwork strategy to ensure that key community members accompanied the enumerators when visiting production units so that they would be accepted. For the National Population and Housing Census, a lengthy process to reach consensus with a diverse range of organizations, including NyPIOCs, and the application of internationally 18   recognized standards, led to a change in the content and the way the information on ethnic identification was collected (allowing respondents to self-identify). INE has created a Unit for Liaison with Social Organizations that has the responsibility to respond to demands and to identify the social organizations, including NyPIOCs, with which the planned statistical operations will be socialized and coordinated. Drawing on these lessons, and as part of the Operations Manual, INE has prepared a draft strategy for engagement with indigenous peoples that sets out the approach and practical methodological guidelines for the considerations of NyPIOCs’ issues in all phases of the applicable statistical operations. The strategy is based on the constitutional mandate to treat all Bolivians as equals. It lays out the broad approach, methodology, timetable and key participants for the engagement with social organizations, including NyPIOCs in the different phases of the implementation of the statistical operations and activities, when relevant. These follow a similar strategy as the one used in the original Project. For each statistical operation in which this approach is applicable, INE will engage with relevant social organizations, including NyPIOCs, to inform, discuss and receive feedback on the objectives, instruments and methodology to be applied prior to the field work. The engagement strategy will include specific activities such as broad and continued socialization with the communities and key organizations prior to the operations, discussion of the questionnaire, adaptation of the training manual to local context, ensuring enumerators that are from and/or speak the relevant language of the NyPIOCs to guarantee that the questions are properly understood in language and meaning, and dissemination of results (“devolución”) taking into consideration language, format and modality relevant for each context. INE will document the results of the discussions and incorporate any relevant recommendations in the adequate instruments (such as the enumerator manual and/or the document that specifies the field work methodology). Accordingly, an appropriate covenant has been included in the Financing Agreement. The Integrated Safeguards Datasheet (ISDS) has been revised based upon the draft strategy for engagement on indigenous peoples that was received from INE, and reflects the fact that the AF activities are distinct from the original Project. Covenants - Additional Financing ( BO Strengthening Statistical Capacity AF - P147051 ) Source of Finance Date Funds Agreement Description of Covenants Due Recurrent Frequency Action Reference The Recipient shall cause INE to: (a) Section operate and maintain throughout I.A of Project implementation within INE, Schedule 2 IDA its technical units responsible for CONTINUOUS New to the statistical operations and an Financing administrative unit; and (b) assign Agreement responsibility internally for the 19   management, implementation, monitoring and reporting of the Project The Recipient shall cause INE to: (a) submit annual Project work plans Section I. and budget to the Association for D of their respective review and approval; Schedule 2 IDA and (b) thereafter, carry out such Yearly New to the annual Project work plan referred to Financing in (a) herein in accordance with its Agreement terms and in a manner acceptable to the Association. The Recipient shall cause INE to, prior to the carrying out of any activity under Parts 2.2, 2.3, 2.4, 3.3 Section I. and 3.4 of the Project: (a) prepare F of and furnish to the Association an Schedule 2 IDA engagement strategy, acceptable to CONTINUOUS New to the the Association; and (b) thereafter, Financing carry out said activities in Agreement accordance with said strategy, and in a manner acceptable to the Association. Section III. D. 2 of The Recipient shall cause INE to Schedule 2 carry out procurement audits, under IDA Yearly New to the the terms and conditions established Financing in the Financing Agreement. Agreement Conditions Source Of Fund Name Type IDA Article V- paragraph 5.01 (a) of the Financing Agreement Effectiveness Description of Condition The Subsidiary Agreement has been executed on behalf of the Recipient and INE. Source Of Fund Name Type IDA Article V- paragraph 5.01 (b) of the Financing Agreement Effectiveness Description of Condition The Operational Manual has been updated and adopted by INE. 20   Finance Loan Closing Date - Additional Financing ( BO Strengthening Statistical Capacity AF - P147051 ) Source of Funds Proposed Additional Financing Loan Closing Date International Development Association 15-Dec-2017 (IDA) Loan Closing Date(s) - Parent ( Strengthening Statistical Capacity and PHHCLCD Informational Base for Evidence-Based Planning - P101 336 ) Explanation: The closing date of the original loan (Loan 4845-BO) will be extended from June 15, 2015 to December 15, 2017 to incorporate the new activities and be consistent with the closing date of the AF loan. The Trust Fund for Statistical Capacity Building (TF-13620), linked to the original Project, will also be extended to June 15, 2017. Status Original Current Proposed Previous Ln/Cr/TF Closing Date Closing Date Closing Date Closing Date(s) IDA- Effective 15-Jun-2015 15-Jun-2015 15-Dec-2017 48450 TF-13620 Effective 31-Dec-2014 31-Dec-2014 15-Jun-2017 31-Dec-2014   Allocations - Additional Financing ( BO Strengthening Statistical Capacity AF - P147051 ) Source of Category of Allocation Disbursement %(Type Total) Currency Fund Expenditure Proposed Proposed Part 2 - Economic IDA XDR 6,651,258.00 100.00 Statistics IDA XDR Part 3 - Social Statistics 3,341,023.00 100.00 Part 4 - Modernization IDA XDR 1,345,632.00 100.00 of the Statistical System Part 5 - Project Cross- 3,745,287.00 100.00 IDA XDR cutting Teams Total: 15,083,200.00     21   Reallocation between Disbursement Categories PHHRBDC Explanation: The modification to the disbursement schedule reflects the reassignment of funds of the original credit, exchange rate fluctuations and the incorporation of additional activities. Current Category of Disbursement Ln/Cr/TF Currency Allocation Expenditure %(Type Total) Current Proposed Current Proposed GO, CS, TR and Wks TF-13620 USD 244,000.00 244,000.00 100.00 100.00 (incl. audits) TF-13620 Designated Account 0.00 0.00 0.00 0.00 Total: 244,000.00 244,000.00 GO,NON-CS,CS,TRN, IDA-48450 XDR 8,700,000.00 8,597,652.00 100.00 100.00 OP Part 1 GO,NON-CS,CS,TRN, IDA-48450 8,400,000.00 10,940,226.00 100.00 100.00 OP Part 2 GO,NON-CS,CS,TRN, IDA-48450 13,100,000.00 10,462,622.00 100.00 100.00 OP Part 3 GO,NON-CS,CS,TRN, IDA-48450 900,000.00 1,677,099.00 100.00 100.00 OP Part 4 IDA-48450 PPF REFINANCING 800,000.00 222,400.00 0.00 100.00 IDA-48450 Designated Account 0.00 0.00 0.00 0.00 IDA-48450 Designated Account 0.00 0.00 0.00 0.00 Total: 31,900,000.00 31,900,000.00 Components Change to Components and PHHCCC Cost Explanation: To organize both original and new activities into a limited number of components the following structure, based on the unit of analysis, is proposed: Component 1: Update of the Multipurpose Cartography. No change. The unit of analysis is the “territory” Component 2: Economic Statistics. Component 2 will be expanded and renamed "Economic Statistics" to incorporate the complementary AF activities; the units of analysis are the “economic units”. The existing activity (National Agricultural Census) will become a sub-component. The related activities under the AF (Economic Census, Agricultural Survey, and Consumer Price Index) will become sub-components under Component 2 as well. 22   Component 3: Social Statistics. Component 3 will be expanded and renamed "Social Statistics" to merge existing activities and complementary AF activities under one component; the units of analysis are the “households”. Previous Component 3 (National Population and Housing Census) and the previous Component 4 (Continuous Household Survey) will become sub-components under the new expanded Component 3. The related activities under the AF (Demographic and Health Survey and Household Budget Survey) will become sub-components under Component 3 as well. Component 4: Modernization of the Statistical System. This is a new component under the AF which seeks to modernize the country’s statistical system, through support to: (a) design and implement mechanisms for the management, coordination and dissemination of statistics of the Recipient’s Statistical System; (b) develop a monitoring and evaluation system for the production and exchange of statistics; and (c) carry out capacity building activities for strengthening the statistical units of the entities of the Recipient’s Statistical System. The units of analysis are the “institutions”.  Component 5: Project Cross-cutting Teams. This is a new component which includes provision of support to INE, through its technical and administrative cross-cutting teams, for the implementation, monitoring and evaluation (including their technical aspects) of all Project’s activities, including for the carrying out of Project audits (including Procurement Audits) and the design and implementation of the engagement strategy. Note: “Proposed Cost (US$M)” include reallocation of original project funds, exchange rate fluctuation and new activities. Current Component Current Proposed Proposed Component Name Action Name Cost (US$M) Cost (US$M) Update of the Multi- Update of the Multi-Purpose 14.80 13.63 Revised Purpose Cartography Cartography National Agricultural Economic Statistics 13.20 27.19 Revised Census National Population Social Statistics 20.60 23.93 Revised and Housing Census Continuous Household Continuous Household Marked for 1.40 0 Survey Survey Deletion Modernization of the 0.00 2.08 New Statistical System Project Cross-cutting Teams 0.00 5.79 New Total: 50.00 72.62   23   IV. Appraisal Summary Appraisal Summary Economic and Financial Analysis PHHASEFA Explanation: As was the case with the original Project, the characteristics of this Additional Financing do not allow for the standard calculation of the economic rate of return, given challenges in quantifying the stream of benefits derived from improved access to information, as well as some challenges in quantifying the indirect and direct economic costs of the project. The costs related to the activities that will be undertaken under the context of this Additional Financing include the direct costs of the activities (i.e. goods and services, human resources, etc.) including those finances covered by counterpart resources, as well as indirect costs, mainly related to the time spent by respondents to the survey and census. The indirect costs are further difficult to quantify, as the costs vary across respondents and not all have relevant market prices. Also, there could be hidden costs as the executing agency may be using unidentified resources to support the statistical activities under this AF. It is even harder to fully identify and quantify the benefits of the Project in monetary terms – both with respect to the statistical operations and the institutional component of the AF (the Modernization of the Statistical System of the country). The restriction of having no relevant market prices is probably the most significant challenge for calculating the benefits of statistical production, as the information is usually provided free of charge (or heavily subsidized) to users—as will be the case of the information generated under this AF. Normally, market prices would reflect the benefit obtained by users (both public and private) to collect and apply the new statistical information. The benefit would in turn reflect the quality of the information provided, in terms of frequency, accuracy and detail. In the absence of market prices, the benefit of using the new statistical information could be derived by assessing its contribution to a decision (either public or private) and comparing this contribution to the consequences of a wrong decision (i.e. a decision taken with no, incomplete or outdated information). Such estimations are not feasible for this Project. Despite the fact that an economic rate of return cannot be calculated, better data and a stronger statistical system offer clear social benefits. High quality statistical information is an important tool to enhance the planning, design, implementation, monitoring and evaluation of public policy, thereby supporting resource allocation decisions and overall transparency of government. This is particularly important given the high priority assigned by the Government to the eradication of extreme poverty—a pillar of the 2025 Patriotic Agenda—and the consolidation of the territorial autonomous entities (Entidades Territorias Autónomas –ETA). In particular: • The Economic Census will provide essential information to strengthen the National Accounts that will be published in 2014, as well as for the support of economic development policies, geared towards the promotion of private and public investment programs, and the development of markets. • The new Agriculture Survey will be crucial to support productivity enhancing and risk reducing measures in the agriculture sector, which is the largest employer in the economy, in particular for the poor which are concentrated in rural areas. • The Consumer Price Index will allow for improved implementation and monitoring of the monetary policy as well as the analysis of inflation and price formation. 24   • The Demographic and Health Survey will provide information needed to design public policies to reduce infant morbidity and mortality, to promote sexual and reproductive health, and to build a base line for non-transmissible diseases. • The Modernization of the Statistical System will promote the generation of higher quality statistical information and strengthen the country’s Statistical System. In general, the data produced from household budget, agricultural and demographic and health surveys will allow for a gender-differentiated analysis of different aspects of development, and thus has the potential improve the design of policies and programs that better target actions based on gender specific needs and constraints. Wide dissemination of statistical information generates additional benefits, both for the public and private sectors. In particular, widely available information supports relevant research and improves the relevance of the data, at the same time as it enhances the credibility of official statistics (and of the institution providing them) and reduces costs of potentially duplicated data collection. In a more general way, wide dissemination of the data increases the returns of producing costly, high quality statistical information as it allows for improved decision-making by other actors. In addition, easily available information enhances the transparency and accountability of the public sector, strengthening governance. To further strengthen the dissemination of the data, INE will develop guidelines based on internationally recognized standards, and specifically seek the technical support from OECD/Paris21 for data documentation, harmonization and dissemination practices. Technical Analysis PHHASTA Explanation: Building on the core activities in the Original Project, the Additional Financing will include the following six activities: ECONOMIC STATISTICS • Economic Census (EC): The census will provide a complete listing of economic establishments in cities of at least 10,000 inhabitants and other areas with high levels of economic activity in the sectors of manufacturing, trade and services. Information regarding their production, sales, raw materials, costs, and occupation will be collected (Activity 2.2.) • Agricultural Survey: Following the 2013 National Agricultural Census, the agricultural survey will provide updated information on agricultural production, prices and destination, as well as access to credit and agricultural insurance (Activity 2.3.). • Consumer Price Index (CPI): On the basis of the information collected in the Household Budget Survey as well as that of the Specification Survey and the Base Year Price Survey (included in this activity), the new baskets of goods and services for the calculation of the new base year will be constructed (Activity 2.4.) SOCIAL STATISTICS • Demographic and Health Survey (DHS) is a nationally representative survey on reproductive health, fertility, nutrition and infant mortality to be used to evaluate health public policies and establish a baseline for new sectoral strategies, plans and programs. (Activity 3.3.) 25   • Household Budget Survey: Survey to update information on the living conditions and structure of household consumption; becoming the main input for the change in the base year of the Consumer Price Index, the updating of poverty lines, and the household consumption estimate for national accounts. The survey will be representative of the nine departmental capital cities and El Alto, as well as of urban and rural areas (Activity 3.4.) MODERNIZATION • Modernization of the Statistical System: The overall objective of the activity is to redesign and update norms, methodologies, technology and quality standards for strengthening the country’s statistical system and its statistical units, which includes activities to ensure wide dissemination of results that aim to strengthen the statistical culture. (Activity 4.1.) To support the implementation of these activities, an additional component is added: • Project Cross-cutting Teams: This component includes planning, monitoring and evaluation of activities under the project, dissemination activities, supporting a unit for coordination and engagement with social organizations (including IPs), logistics and sampling, training, IT, data consistency, and cartography. (Activity 5.1) Social Analysis PHHASSA Explanation: See "safeguards" section. Environmental Analysis Explanation: No change has been identified. Risk Explanation: Most risks identified in the original project remain relevant, although some risks now have lower risk classifications. The overall implementation risk is moderate. The primary risk is related to ensuring the continuity of qualified and experienced staff within the implementing agency to ensure successful project execution. To mitigate this risk, the World Bank will maintain ongoing technical support, training and implementation support to strengthen the capabilities of the staff. 26   Annex 1: Revised Results Framework BOLIVIA: Strengthening Statistical Capacity and the Informational Base for Evidence-Based Planning Project . Project Development Objectives Original Project Development Objective - Parent: The project development objective is to strengthen the statistical capacity and improve the informational base of the Recipient, in order to provide quality information, as defined by its reliability, timeliness, accuracy and representativeness with the level of disaggregation necessary to support systems for planning, designing, monitoring and evaluating public programs and policies. Proposed Project Development Objective - Additional Financing (AF): No change. Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target Revised GOB has updated Text Value 0 Population census and Latest data quality statistical cartography processed and processed and information that has partially disseminated (full disseminated been disseminated dissemination expected by for all widely within the June 2014), 2012 household components Government and among survey processed and the public disseminated, agricultural census and 2013 household survey in processing stage (dissemination expected by second semester of 2014). Date 30-Jun-2010 20-May-2014 15-Dec-2017 Comment     27   Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target No Change List of Agricultural Text Value 0 .99 1 Production Units at the Date 30-Jun-2010 20-May-2014 31-Dec-2013 municipal level Comment No Change 90% of dwellings accounted Percentage Value 0.00 96.00 90.00 for in the National Date 01-Aug-2011 20-May-2014 29-Mar-2013 Population and Housing Census Comment No Change 90% of departments have Percentage Value 0.00 100.00 90.00 representative data on living Date 01-Aug-2010 20-May-2014 31-Dec-2014 standards Comment No Change 100% of physically Percentage Value 0.00 100.00 100.00 demarcated and non- Date 30-Jun-2010 20-May-2014 30-Jun-2013 demarcated areas have updated cartographic Comment information used in the preparation of the National Agricultural Census and the National Housing and Population Census New 100% of departments have Percentage Value 0.00 0.00 100.00 updated economic Date 27-Mar-2014 20-May-2014 15-Dec-2017 information (Agriculture, Industry, Trade & Services) Comment New 100% of departments have Percentage Value 0.00 0.00 100.00 updated information on Date 27-Mar-2014 20-May-2014 15-Dec-2017 agricultural production and its destination. Comment 28   Annex 2: Revised Monitoring Indicators BOLIVIA: Strengthening Statistical Capacity and the Informational Base for Evidence-Based Planning Project Note: When frequency of reports indicates twice a year, this refers to the period in which there are activities planned under each project indicator. To assess the progress, a combination of financial and physical progress (based on the more detailed task description managed by the implementing agency) is taken into account. Project indicators and milestones Target Values Data Collection and Reporting (Percentage Advance in Target over Baseline) Baseline Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Frequency Instruments for Data Responsibili (August and reports Collection ties for data 2011) collection Component 1: Updating of the MULTI-PURPOSE CARTOGRAPHY Updated Multi-Purpose Cartography used 0% 25% 40% 100% Twice a Continuous reports by INE for the preparation/application to relevant year and INE and independent statistical operations upon external verification finalization commissioned by INE in agreement with Bank Component 2: ECONOMIC STATISTICS Assessment of quality of economic statistics 0% 100% Upon Independent external Independent information, as defined by its reliability, finalization verification agency or timeliness, accuracy and representativeness commissioned by INE consultant with the level of disaggregation necessary to in agreement with the support systems for planning, designing, Bank monitoring and evaluating public programs and policies.  Perception survey conducted among expert 0% 33% 66% 100% Every two Survey conducted by Independent users of economic statistical information on years and Independent agency or agency or the quality of statistics produced in the upon consultant consultant context of the Project, reports on satisfaction finalization levels in terms of access and quality of information 2.1. National Agricultural Census Pre-census: develop a list of UPAs at the 0% 50% 100% Upon Independent external INE municipal level and conduct a pilot census finalization verification to test and adjust the instrument(s) to be commissioned by INE used; in agreement with Bank     29   Census: collect information on UPAs 0% 100% Twice a Report by INE INE through the use of internationally year recognized instruments, techniques, methods and standards adapted to the Recipient’s own context. Post-census: disseminate the processed 0% 50% 100% Twice a Report by INE INE information of the data collected year 2.2. Economic Census Pre-census: (a) develop the instrument; (b) 0% 10% 100% Twice a Report by INE INE conduct a pilot census to test and adjust the year instrument(s) to be used; (c) elaborate dissemination material to promote participation; (d) train enumerators Census: collect and process the census data; 0% 50% 100% Twice a Report by INE INE year Post-census: (i) list of economic 0% 80% 100% Twice a Report by INE INE establishments for the updated economic year survey’s sampling frame; (ii) disseminate the processed information of the data collected . 2.3. Agricultural Survey Pre-survey: (a) Design of the questionnaire; 0% 80% 100% Twice a Report by INE INE (b) Completion of the pilot test; (c) Train year enumerators Survey: collect and process the survey data 0% 100% Twice a Report by INE INE year Post-survey: disseminate the processed 0% 75% 100% Twice a Report by INE INE information of the data collected by the year survey 2.4. Consumer Price Index Specification survey 0% 10% 100% Twice a Report by INE INE year Base Price survey 0% 40% 100% Twice a Report by INE INE year Calculation of the CPI with the updated 0% 100% Twice a Report by INE INE basket with a new base year year 30   Component 3: SOCIAL STATISTICS Assessment of quality of economic statistics 0% 100% Upon Independent external Independent information, as defined by its reliability, finalization verification of agency or timeliness, accuracy and representativeness quality consultant with the level of disaggregation necessary to commissioned by support systems for planning, designing, INE in agreement monitoring and evaluating public programs with the Bank and policies. Perception survey conducted among expert 0% 33% 66% 100% Every two Survey conducted by Independent users of social statistical information on the years and Independent agency agency or quality of statistics produced in the context of upon or consultant consultant the project, reports on satisfaction levels in finalization terms of access and quality of information 3.1. National Population and Housing Census 2012 Pre-census: (a) develop the census 0% 50% 100% Twice a Continuous reports INE instrument for the collection of demographic year and by INE and information; (b) prepare training materials upon independent external and carry out training activities for finalization verification operational staff in charge of census commissioned by activities; (c) elaborate dissemination INE in agreement materials that will be used to promote the with Bank participation of the population in this data collection exercise; (d) develop a pilot census and experimental censuses to test and adjust accordingly the material that will be used in the main census Census: collect and process the census data; 0% 50% 100% Twice a Report by INE INE year Post-census: disseminate the processed 0% 20% 100% Twice a Report by INE INE information of the data collected by the year census 3.2. Continuous Household Survey Expanded sample size for the collection of Annual Independent external INE the ECH, based on the updated cartography Verification 0% 50% 75% 100% commissioned by INE in agreement 31   with Bank. Pre-survey: (a) Design of questionnaire; (b) Twice a Report by INE INE Piloting of any new element or tool; (c) 0% 33% 66% 100% year Training of enumerators Survey: collect and process the survey data Twice a Report by INE INE 0% 33% 66% 100% year Post-survey: disseminate the processed Twice a Report by INE INE information of the data collected by the 0% 50% 75% 100% year survey 3.3. Demographic and Health Survey Note: Part of the pre-survey preparatory process, including the development on the survey instrument, is financed by Canada, and is outside of the monitoring framework for this project Pre-survey: (a) Design of the questionnaire; 0% 100% Twice a Report by INE INE (b) Completion of the pilot test; (c) Training year of enumerators Survey: collect and process the survey data 0% 75% 100% Twice a Report by INE INE year Post-survey: disseminate the processed 0% 75% 100% Twice a Report by INE INE information of the data collected by the year survey, including analysis 3.4. Household Budget Survey Pre-survey: (a) Design of the questionnaire; 0% 100% Twice a Report by INE INE (b) Completion of the pilot test; (c) Training year of enumerators Survey: collect and process the survey data 0% 75% 100% Twice a Report by INE INE year Construction of household expenditure 0% 100% Twice a Report by INE INE baskets year Post-survey: disseminate the processed 0% 25% 100% Twice a Report by INE INE information of the data collected by the year  survey     32   Component 4: MODERNIZATION of the Statistical System Develop strategies and define coordination 0% 20% 100% Twice a Report by INE INE mechanisms based on a review of sector and year territorial diagnostics of statistical units Provide the system with updated 0% 33% 66% 100% Twice a Report by INE INE technological solutions year Develop methods and systems to capture data 0% 33% 66% 100% Twice a Report by INE and INE and support statistical units in its year by one independent implementation and exchange INE and external external verification report upon commissioned by finalization INE in agreement with Bank 33   Annex 3: Operational Risk Assessment Framework (ORAF) Bolivia: BO Strengthening Statistical Capacity AF (P147051) Project Stakeholder Risks Stakeholder Risk Rating Moderate Risk Description: Risk Management: Primary stakeholders are statistical data users—both public The statistical information and indicators produced respond to national and private—, in particular the Ministry of Development priorities and public policies to ensure their relevance and the consistency Planning, due to its Planning, Monitoring and Evaluation between information supply and demand. The Bank will continue duties, and its responsibilities with the National Development supporting INE and the Ministry of Development Planning, both Plan, the Agenda Patriotica 2025 and the Vivir Bien technically and logistically, while supporting the development of objectives. The risk is that the statistical information coordination mechanisms with other stakeholders, including other public generated by the Project would not be adequately exploited institutions. by the different sectors at the national and sub-national level Resp: Status: Stage: Recurrent: Due Frequency: in objectives related to structured Planning and M&E, due to Date: changing priorities or lack of institutional capacity. Both In Progress Implementation Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating Substantial Risk Description: Risk Management: The WB will continue to emphasize the need for the continuity of a strong technical INE has built a strong technical and and administrative team, and will maintain the technical support and supervision in administrative team with important expertise in planning and operational instruments (including the Operational Manual and the the implementation of WB-financed projects Procurement Plan) so these tools provide enough information to strengthen INE’s and has put in place processes, procedures, technical accountability. Also, as identified in the MTR, the Operations Manual will instruments and other operational arrangements be revised to include the details for the technical teams’ specific roles, not only in term (including financial management) to support of products, as is currently the case, but also in terms of procedures. Each project project implementation and provide reliable component will include specific training—in particular in fiduciary issues—to financial information for monitoring purposes. strengthen the capabilities of the staff while assuring that their roles and Regular training and support has been provided responsibilities are clearly assigned. Due to potential rotation, fiduciary training would 34   by the Bank in fiduciary and technical issues. be recurrent, as has been implemented in the past. Resp: Status: Stage: Recurrent: Due Date: Frequency: However, despite the capacity developed, effective operation of those arrangements is Both In Progress Both highly dependent on the availability of qualified Risk Management: and experienced staff. The risk of losing qualified professionals may reduce the Technical, operational and planning support from international partners will be experience accumulated by the teams thus strengthened through the creation of a component that provides support to project affecting the full implementation and effective coordination through cross-cutting teams. Also, the technical support will continue operation of financial management from relevant development agencies (following the successful experience during the arrangements, not only in relation to World NPHC), the International Committees (that is composed by experts from regional Bank policies and procedures, but also in INEs) and other South-South experience exchange, as well as international experts and relation to local requirements. In particular, consultants. there could be impacts on the time line of the Resp: Status: Stage: Recurrent: Due Date: Frequency: technical and administrative activities. Both In Progress Both Governance Rating Moderate Risk Description: Risk Management: Government priorities: The World Bank will maintain close engagement and dialogue Government priorities: Change in government with the concerned parties to provide additional guidance and support when needed to priorities that may imply pressures to take ensure that the objective of the Project is kept on track. decisions on non-technical reasons (including in the schedules and procedures of the activities, Resp: Status: Stage: Recurrent: Due Date: Frequency: and in the timely delivery of the final data), Bank In Progress Both particularly in light to the upcoming national elections at the end of 2014. Risk Management: Transparency: INE’s staff will continue to receive training on transparency and Transparency: While the implementation of the integrity and is enhancing its own Ethics Code, mandatory for all the staff, including original Project has not indicated any problems consultants. related to transparency, and INE’s staff received Resp: Status: Stage: Recurrent: Due Date: Frequency: training on transparency and integrity from the Minister of Transparency and it is enhancing its Client In Progress Implementation 35   own Ethics Code, the staff turnover constitutes a risk that makes it instrumental to closely monitor any issues related to transparency. Risk Management: Close supervision of ex-ante and ex-post contracts will be maintained. Strengthening of the technical, administrative and managerial teams, including in fiduciary and planning issues, will also be provided. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Implementation Project Risks Design Rating Moderate Risk Description: Risk Management: Technical Expertise: The Bank will continue providing intensive technical The design of most proposed activities (in particular the support, including in coordination with other relevant organizations as Census and the Surveys) will be implemented by a appropriate. technically experienced team, which in addition accumulated relevant experience during the execution Resp: Status: Stage: Recurrent: Due Date: Frequency: of the original Project. However, one new component Both In Progress Implementation of the project (the Modernization of the country’s Statistical System) is quite different in nature and Risk Management: requires different technical expertise. Project activities Processes & procedures: Processes and procedures, including internal controls, are straightforward and well defined, but require the for the operation of Regional Offices will be adjusted in the Operational transfer of funds to INE’s Regional Offices (department Manual. A thorough analysis will be made in order to determine specific level) which undertake responsibility for administrative necessities to hire additional staff, both technical and fiduciary. tasks. While basic procedures are in place, these need Resp: Status: Stage: Recurrent: Due Date: Frequency: to be strengthened to ensure timely disbursements and documentation. Both In Progress Both     36   Social and Environmental Rating Moderate Risk Description: Risk Management: There could be reluctance to participate in the statistical Participation & Acceptance: Negotiation mechanisms have been developed operations due to the criticism against the NPHC and will be maintained, including the creation of a specific unit to deal with preliminary results or fear against taxing or control politically or technically linked conflicts. Constant involvement of the issues. This may stem from the experience of the involved population, through a participative process will also be maintained. In original Project, in which the launch of results from the addition, the WB and INE will continue work to plan and implement an National Population and Housing Census caused some adequate communication campaign ensuring confidentiality of reporting and controversy that lead to some reluctance to participate technical soundness. Finally, the participation of other relevant stakeholders in the Agricultural Census. The controversies were will also help to bring trust and technical confidence to the exercise. largely associated with the population count for some Resp: Status: Stage: Recurrent: Due Date: Frequency: departments (with fiscal distribution and congressional seats implications). To a much lesser extent, there was Both In Progress Implementation a controversy over the change in the proportion of IPs in the country but the results can be largely explained by a methodological change in the collection of ethnic identification, taking into account the feedback from social organizations (including NyPIOCs). Still, the new activities of a very different nature as they do not include the entire population, and the results will not have the same impact on politically sensitive issues. There is a risk that the statistical information would raise non-technical objections or criticism reducing its acceptance among stakeholders. Program and Donor Rating Low Risk Description: No substantial program or donor Risk Management: risks have been identified. Resp: Status: Stage: Recurrent: Due Date: Frequency: 37   Delivery Monitoring and Sustainability Rating Moderate Risk Description: Risk Management: Continuity of statistical activities supported by the National authorities are aware of the need to insure financial resources to project—in particular, regular surveys—is not assured continue the statistical activities included in the Project. In any case, support once the project is completed, as public resources are from the Ministry of Development Planning will be sought to assure future not formally committed. Furthermore, the qualified funds allowing the continuous implementation of these activities. technical and administrative staff of the Project is The World Bank will support the coordination of capacity development working under temporary contracts which does not activities, including training for staff (independent of their type of contract) in allow for the capacity development of institutional relevant areas and exchange of international knowledge and experiences, as staff. has been implemented in the past. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client In Progress Implementation Other (Optional) Rating Low Risk Description: Risk Management: Heavy rainfall and Bolivia’s high exposure to natural The planning process will continue taking into consideration weather hazards could delay timely collection of census and contingencies and other potential disruptions through a robust logistic plan to survey data (approximately 38% of the population is in minimize the risks to the timely collection of the data. Lessons learned from areas at risk from two or more hazards). the previous activities will be considered, in particular in terms of detailed planning of the field work, flexibility to return more than once to certain areas—while assuring coverage—, schedule activities considering the rain season in different regions. Resp: Status: Stage: Recurrent: Due Date: Frequency: Not Yet Implementation Due Overall Risk Overall Implementation Risk: Rating Moderate Risk Description: The overall implementation risk was confirmed as "moderate". 38   Annex 4: Detailed Description of the Project BOLIVIA: Project for Strengthening the Statistical Capacity and Information Base for Evidence Based Planning Additional Financing (P147051) 1. Following the Additional Financing approval, the STATCAP project will be organized into four components and ten activities or statistical operations:  Component 1. Multipurpose Mapping Updating of the Multi-Purpose Cartography (Activity 1.1.)  Component 2. Economic Statistics National Agricultural Census (Activity 2.1) Economic Census (Activity 2.2.) Agricultural Survey (Activity 2.3.) Consumer Price Index (Activity 2.4.)  Component 3. Social Statistics National Population and Housing Census (Activity 3.1.) Continuous Household Survey (Activity 3.2.) Demographic and Health Survey (Activity 3.3.) Household Budget Survey (Activity 3.4.)  Component 4. Modernization of the Statistical System Modernization of the Statistical System (Activity 4.1)  Component 5. Project Cross-Cutting Teams Project Cross-Cutting Teams (Activity 5.1). 2. The detailed description of the statistical activities included in the first phase of the Project is contained in the Project Appraisal Document (Report No. 54971). The description contained in this section relates only to the new activities incorporated into the Project. Please note that, in order to address potential impacts on Indigenous People, referred to as NyPIOCs, and to ensure high quality statistical information, additional activities during preparation, implementation and dissemination of the results of each one of the statistical operations and activities will be identified and carried out in accordance with the strategies for engagement with NyPIOCs that is incorporated in the Operations Manual. Further details can be found in the ISDS. Furthermore, all data collected will include the sex of the respondent, thus allowing for gender-disaggregated analysis of the results. Component 2. Economic Statistics Activity 2.2 Economic Census (US$8 million) 3. In 1983, INE conducted the First National Directory of Economic Establishments, which was used to design and implement economic surveys on a continuous basis, including in manufacturing, trade, services and others. However, as the sampling frame became outdated, INE implemented a National Business Directory to collect information on the number of employees and the value of sales. In 1992, the "Second Census of Economic Establishments" 39   was implemented in all population centers with at least 2,000 inhabitants. This Census captured information on the number of establishments and occupied staff by type of economic activity. The National Business Directory was updated with this information, ultimately registering 245,133 economic establishments, of which 125,853 were shops, 48,973 were fixed locations posts, and 70,307 in mobile businesses. 4. Since over 20 years have passed since the last Economic Census, the country lacks updated statistical information on existing economic units. A new Economic Census will provide information to update the National Business Directory, and the sampling frame for economic surveys. Additionally, the information gathered will contribute to the formulation and monitoring and evaluation of policies and programs related to the national priority of Productive Sovereignty with Diversification and Comprehensive Development. 5. The project will support a new Economic Census. In particular, it will support the following tasks: (i) pre-census activities: develop the census instrument for the collection of the information on the Recipient’s economic establishments; prepare training materials and carry out training activities for operational staff in charge of census activities; elaborate dissemination materials that will be used to promote the participation of the economic establishments in this data collection exercise; and develop a pilot census to test and adjust accordingly the material to be used in the main census. (ii) census activities: collect and process the census data. (iii) Post- census activities: update the Recipient’s economic survey sampling frame based on the data collected by the census; and disseminate the processed information of the data collected by the census. 6. The main objective of the Economic Census is to provide information on production, sales, raw materials, costs, occupation, and other statistical information in the sectors of industry, trade and services, in population centers with at least 10,000 inhabitants (53 cities according to the 2012 Population and Housing Census). Smaller population centers with high density of economic establishments and specialized activities will be also included. The specific criteria to select these centers will be determined during the EC preparation. 7. The following specific objectives are proposed: a) obtain information on production, sales, raw materials, income and expenditure, employment and other variables, by economic activity, b) disseminate the results of the economic census for the preparation of production plans, investment policies and open markets, c) develop and disseminate the Directory of Economic Establishments, by industry, size and geographical area; and d) build the Statistical Sampling Frame for economic statistical research. 8. The enumeration unit used is the economic establishment. This could be a single business or part of one, principally engaged in one specific kind of economic activity at a single physical location. In this sense, the following types of establishments are considered: a) Shop, establishment that is located within a block, and has a solid structure, e.g. clothing factory, neighborhood shops, points of phone call; b) Fixed stall, economic units found on sidewalks, and not part of the block buildings but attached to them; and c) Economic establishments that perform economic activities within their dwelling. 9. The Census will also include mobile fair and market stalls, but only in terms of a listing of them, grouped by economic activity. The information on mobile posts will be provided by 40   qualified informants, for example by retailer union leaders, the so-called "Maestros Mayores" (Senior members) in informal markets, the municipal police, or institutions responsible for the defense, organization, or control of this kind of business. 10. The Census will collect the information using mobile devices (tablets). The software for data entry, manuals and criteria for design consistency will be piloted and enumerators will be given extensive training before applied. During the fieldwork, special brigades will be formed to have access to locations that report important economic activities that were not included in the geographical coverage. Before fieldwork, efforts will be made to raise awareness of the economic units, through contacts, socialization sessions and strategic alliances with ministries, chambers of commerce, organizations, business associations, unions and others. After completion of census fieldwork and processing of data collected, a wide dissemination strategy will be implemented. Activity 2.3 Agricultural Survey (US$ .5 million) 11. The National Statistics Institute has produced agricultural statistical information representative of nine departments through sample surveys in 1990, 1992, 1994 and 1997. This was based on the framework that generated the 1984 Second National Agricultural Census. Eleven years later, in 2008, a National Agricultural Survey captured updated information on planted area, production and yield for the 2007-2008 agricultural year, in addition to information on livestock species at the department level. The results allowed INE, in coordination with the Ministry of Rural Development and Land, to establish a unique source of agricultural information, structured at departmental and national levels. Through the information collected, a data series was constructed for 1984 to 2008, which provided indicators that served to inform the formulation, monitoring and evaluation of public policies. 12. In 2013, another National Agriculture Census was conducted with support from the Parent Project, which allows the construction of an updated sampling frame of agriculture production units. Soon after an agricultural census, it is good practice to conduct an agriculture survey to generate detailed information and key indicators for the design, monitoring, and evaluation of policies, plans, and programs. This is particularly relevant in the context of the national policies on sustainable agriculture, food sovereignty and agro-industrial production, and will support, among other things, the establishment of a baseline for strategies on food security investment. The main objective of the Agricultural Survey is to update and deepen the information on the production and destination of agricultural activity of the country, based on the results of the National Agricultural Census. The Agricultural Survey will provide more in-depth information regarding, for example, the production and destination of agricultural produce and livestock and the access to agricultural credits and insurances. It will also help deepen the knowledge on land use, conservation of agricultural natural resources and issues related to environmental and climate change. 13. The project will support a new round of the Agricultural Survey. In particular, it will support the following activities: (i) the design and piloting of the agricultural survey; (ii) the provision of training to operational staff responsible of conducting the agricultural survey; (iii) the collection, processing and analysis of the survey data; and (iv) the dissemination of the processed information of the data collected 41   14. The following specific objectives are proposed: a) determine the agricultural production and its destination; b) assess the coverage of agricultural insurance and access to agricultural credit; c) obtain information on agricultural producer prices, d) make agricultural data available for public and private researchers. 15. A two-stage sampling design for the selection of agricultural production units will be developed, for which the primary units will be the segments and the secondary the agricultural production units. The sample will be divided into nine departments with a total of at least 1,072 segments, rendering the data representative at the national and departmental levels. The survey will be conducted through direct interviews with producers, and the main variables will be: a) cultivated area and output by crop; b) livestock population and production by species, gender and age; c) destination of agricultural production; d) month of planting and harvesting; and, e) prices paid to producers. Activity 2.4. Consumer Price Index (US$1.7 million) 16. In Bolivia, the historical background of the Consumer Price Index (CPI) dates back to 1931 with the Cost of Living Index, which was in effect for 35 years. A study of income and expenditures was not conducted until 1965. This study defined the Consumer Price Index base year at 1966, with a limited coverage to the city of La Paz. In 1990, after 24 years, the Consumer Price Index was updated based on a Consumer Expenditure Survey that had a wider coverage that encompassed the cities of La Paz, Cochabamba, Santa Cruz and El Alto. A consumption basket of 332 products was established and divided into nine chapters. Finally, between November 2003 and November 2004, the Continuous Household Survey, with a sample of 9,770 households in nine capitals and including the city of El Alto, laid the grounds for the calculation of the new index with a base year of 2007. According to international recommendations, a Consumer Price Index base should be updated every five years. Due to rapid and complex changes in the economic structure of the country which have modified the consumption patterns of the population and have contributed to the decline in relative prices, it is necessary to calculate a new CPI. 17. The project will support the updating of the Consumer Price Index. In particular, the following tasks will be supported: (i) design, training, data collection and processing of the Specification Survey; (ii) design, training, data collection and processing of the Base Year Price survey. 18. The main objective of the Consumer Price Index component is to calculate a new CPI, with a new base year and the identification of goods and services to be included in the new baskets, based on the Household Budget Survey (activity 3.4.). 19. The following specific objectives are proposed: a) estimate the goods and services basket by household; b) generate the weighting scheme of the different items in the basket for the representative household; c) determine the specific products of the basket of goods and services; and, d) determine the average prices for the base year. 42   20. The updated and redesigned CPI will provide information needed to monitor price variations, perform economic analysis on prices and evaluate the monetary policy. Goods, services, prices, and tariffs to be included in the new basket will be identified using international standards. 21. Methodologically, based on information collected with the Household Budget Survey, a Specification Survey will be implemented in order to determine characteristics such as packaging, weight, origin, quality, size, make, model, etc. for the items to be included in the representative basket of goods and services. This survey will provide a directory of the establishments that will be used to collect prices. Following this step, two additional surveys will be conducted: a price survey to the establishments identified to obtain the prices of goods and services included in the basket in the base year, and a rental survey to households to obtain rental prices. These two surveys will collect data on a monthly basis. Component 3. Social Statistics Activity 3.3. Demographic and Health Survey (US$1.5 million) 22. Five Demographic and Health Surveys have been conducted in Bolivia, corresponding to the years 1989, 1994, 1998, 2003 and 2008. The DHS generally provides information about maternal and child health, family planning, fertility, maternal mortality, infant and child mortality, lactation, nutrition and sexually transmitted diseases.. More recently, violence against women and children has also been included. The first survey in 1989 was conducted in the framework of the Global Program on Demographic and Health Surveys (DHS) with a sample of 8,439 households. Since then, the sample has increased up to 20,003 (DHS 2008). 23. In recent years, the country has developed and implemented policies and programs aimed to support the wellbeing of mothers and children. In this sense, it is necessary and urgent to obtain updated, reliable, and timely information to assess the impact of these policies and programs, realign strategies and sectoral plans, and build baselines for new sector policies. 24. The project will support a new round of the Demographic and Health Survey (DHS). In particular, it will support the: (a) design of survey questionnaire –partly funded by the Canadian Government—and pre-fieldwork activities (b) carry out training activities for operational staff in charge of the survey; (c) collect, process and analyze the survey data; and (d) disseminate the processed information of the data collected by the survey. 25. The main objective of the DHS is to provide information to evaluate public health sector policies and to establish a baseline for new strategies plans and programs. 26. The following specific objectives are proposed: a) estimate fertility and infant mortality and, on this base, provide inputs to adjust population projections; b) determine the nutritional status of mothers and their children; and c) calculate indicators for reproductive health programs and family planning.2                                                              2 Data to calculate maternal mortality will not be collected through this DHS but instead through a specific study with this sole purpose, led by the Ministry of Health, with support by INE. The sample will be determined using a combination of the 2012 Population and Housing Census and administrative data. A similar approach was used 43   27. The DHS targets households, specifically the population of women of reproductive age between 15 to 49 years old, children under five years, and men from 15 to 64 years. The sample will be obtained from the master sample structured from the 2012 Population and Housing Census and the Multi-Purpose Cartography. The sample size will be 15,000 households (750 clusters, each with 20 sample units). Data will be collected using three types of core questionnaires: Household, Women and Men. Biomarkers, anthropometric measurement instruments, scales as well as Point of Care HemoCue and measuring rods will be used to collect key nutritional and health information 28. Given the complexity of the topics covered in the survey, extensive training of enumerators will be provided as a means to ensure homogenized criteria for the application of the different instruments. Fieldwork is expected to last four months. Field brigades will consist of a supervisor, an editor, three female enumerators to interview women, a male enumerator to interview men, and another female enumerator to obtain anthropometric measurements. To strengthen the quality of the final database, manual double data entry and programs of consistency and validation will be used. The final report, including the calculation of key indicators, will be prepared in close coordination with the Ministry of Health. Activity 3.4. Household Budget Survey (US$ 3.6 million) 29. Bolivia’s first Household Budget Survey was conducted in 1931. The Cost of Life Survey investigated 50 families and defined a basket of the most purchased 53 items. In 1965, the Income and Expenditure Survey was collected with a sample of 800 households and 161 items. In 1990, the Household Budget Survey identified 332 most purchased articles for households in La Paz, Cochabamba, Santa Cruz and El Alto, with a sample of 6,093 households. Between November 2003 and November 2004, the Continuous Household Survey with a sample of 9,770 households incorporated a detailed income and expenditure module, following international guidelines of standard Household Budget Surveys. 30. Household budget surveys of this kind provide information on the structure of household expenditures, an essential input into updating the base year of the Consumer Price Index. In addition, information of household consumption patterns and expenditure is used to update poverty lines and obtain information on the distribution of wealth. The international recommendation is that the CPI base year should be updated at least every 10 years, and if there have been significant changes in the economy that can affect the household expenditure structure, the CPI should be updated more often. 31. The project will support a new round of the Household Budget Survey. In particular, the project will support the: (a) design and piloting the survey; (b) carry out training activities for operational staff in charge of the survey; (c) collect, process and analysis of the survey data; and (d) construction of household expenditure baskets; and (e) disseminate the processed information of the survey data. 32. The main objective of this activity is to obtain updated information on the living                                                                                                                                                                                                   following the 2001 Population Census.   44   conditions and the structure of household expenditures and consumption patterns. 33. The following specific objectives are proposed: a) estimate the household structure of expenditure and consumption of goods and services; b) estimate the household income by sources; c) allow the calculation of indicators of poverty and wealth distribution; d) compare the changes in the household expenditure and consumption levels and structure over time as well as the disparities between socioeconomic and geographic groups; e) provide information for the Household Sector of the National Accounts System; and f) provide information on the elasticity of demand and supply of goods and services. 34. The survey will cover the nine department capitals and the city of El Alto, as well as towns and rural areas. The unit of analysis will be households. The main variables of interest will be the incomes and expenditures of the household budget. Expenditure refers to the value of all goods and services in the reference period (one year), regardless whether these were consumed. Income includes both monetary and in kind, obtained by any member of the household, and routinely granted at regular intervals. 35. The sample size will be of approximately 20,000 households, four survey instruments will be implemented: a) Household Characteristics Questionnaire, b) Diary of household expenses c) Diary of individual expenses, and d) a Major Expenses Questionnaire. Fieldwork will be done in 52 weeks (starting in January 2015) in order to record seasonal income and expenses. Enumerators will visit each household at least four times over nine days. Component 4: Modernization of the Statistical System (US$ 2 million) 36. The National Statistics Institute (INE), as the executive and technical organ of the country’s Statistical System, is the lead agency for the management, planning, execution, control and coordination of statistical activities (Decree 14100). INE has reached an important level of technical capacity and recognition by implementing a wide range of statistical operations, including highly complex censuses, as well as the consolidation of other routine statistical activities. 37. However, INE faces challenges in the consolidation and implementation of the statistical system of the country, evidenced by the fact that the National Statistical Council has never been effective as the mechanism responsible for coordinating and planning statistical activities produced by its member institutions. 38. Nowadays, there is a general consensus that high-quality, timely and reliable statistical information is key for the design, implementation, monitoring and evaluation of programs and projects. These circumstances require INE to take on a larger and more strategic role in the country’s statistical system by leading the planning, production, and dissemination of official statistics and providing regulations, methodologies, tools, technologies and procedures to sectors and sub-national levels that produce statistical information. Furthermore, there is a need to improve the mechanisms of accountability and transparency in the production of official statistics. 39. Given the nature and INE's governing role in the generation and dissemination of official 45   statistics and the need to respond to the demand for updated information that is timely, relevant and reliable, this Project is a strategic priority for the institution and for the country. 40. The main objective of the modernization component is to: redesign and update norms, methodologies, technology and quality standards for strengthening the Statistical System and its statistical units. This includes activities that aim to increase the public’s access to data and promote the use of statistical information. 41. The following specific objectives are proposed: a) design and implement mechanisms for the management, coordination and dissemination of statistics of the country’s Statistical System; (b) develop a monitoring and evaluation system for the production and exchange of statistics; (c) carry out capacity building activities for strengthening the statistical units of the entities of the country’s Statistical System; (d) develop, update and strengthen methodologies for statistics production of administrative records, censuses, surveys and national accounts, using international standards adapted to the national context; d) develop IT and geographic systems for interoperability of Statistical System members, to meet the needs of producers and users of statistical information; and e) provide INE with the capacity to store, process and safeguard data and information of the PSS for easy user access at all levels. 42. The key actions in this activity include: a) a needs assessment and status report on the statistics units of the Statistical System as a basis for common agreements on the governing body and coordination mechanisms of the Statistical System including the development of the Statistical Plan and procedural instruments for compliance; b) conformation of interdisciplinary and multisectoral thematic groups for the development of methodologies, standards, processes of collection, analysis and development of official statistics, in the areas of administrative records, censuses, surveys and national accounts; c) workshops for strengthening statistical human resources across sectors; and, d) development and management of platforms and information systems for the exchange of information among members of the PSS and external users, with programs and operating systems that meet new and growing information needs and demands. Component 5: Project Cross-Cutting Teams (US$ 5.7 million) 43. Any statistical project contains cross-cutting activities that are repeated in all processes independent of its objective. Generally, the processes of design, fieldwork, processing and generation of results count on internal teams dedicated to specific tasks, such as training, cartographic design, sampling, logistics, information technology, monitoring and evaluation, processing and coding, and dissemination. Strengthening these areas, as well as the administration, enhance the capacity for the execution of any statistical operation, which is why it is key to leverage existing knowledge and experience. These kinds of activities are identified as key factors for success for statistical operations in the United Nations Statistical Organization Manual and initiates with the planning phase, where a request for information is transformed into a series of activities to produce the data, to the dissemination stage in which the basic statistical information is delivered to all sectors of society. It is the responsibility of the coordinating statistical entity to ensure that these essential functions are performed in a timely and high- quality manner, and taking into account international best practices and standards. 44. The capacity to implement these cross-cutting activities ensures high quality and 46   scientific design of the statistical operations, and thus constitutes one of the most important intangible assets of the statistical entity, enhancing the credibility of the data among the public. At the same time, the financial and administrative areas play an important role for the ongoing process of progress analysis that allows for the alerting of potential problems that may affect the technical progress towards the project objectives. Also, the administrative area works closely with the technical teams to ensure the availability of financial, physical and human resources required for statistical operations. 45. The activities under this component include planning, monitoring and evaluation of project activities, reporting, liaison with social organizations (including NyPIOCs), sampling logistics, training, IT, data consistency and mapping. In the original project this component was not contemplated as a cross-cutting area for all the activities, which forced the creation of parallel teams in projects, duplicating efforts and creating both financial inefficiencies and operational, as well as creating overlapping demands for physical resources and infrastructure between operations. 47   Annex 5. Revised Estimate of Project Costs Additional Financing Additional Recipient Financing (National Total Project Cost Activities Treasury) USD USD USD 2. Economic Statistics 10,280,384 688,633 10,969,017 2.2. Census of Economic 8,004,452 552,624 8,557,076 Establishments 2.3. Agricultural Survey 528,198 0 528,198 2.4. Consumer Price Index 1,747,734 136,009 1,883,743 3. Social Statistics 5,163,984 201,050 5,365,034 3.3. Demographic and Health Survey 1,515,112 50,044 1,565,155 3.4. Household Budget Survey 3,648,873 151,006 3,799,879 4. Modernization 2,079,849 22,595 2,102,444 5. Project Cross-cutting Teams 5,788,829 1,936,952 7,725,780 Total general 23,313,046 2,849,229 26,162,275 48