Document of The World Bank FOR OFFICIAL USE ONLY Report No: 69666-IN PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 54.7 MILLION (US$84 MILLION EQUIVALENT) TO REPUBLIC OF INDIA FOR THE BIHAR INTEGRATED SOCIAL PROTECTION STRENGTHENING PROJECT December 3, 2013 Human Development Department South Asia 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. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 69666-IN
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 54.7 MILLION
(US$84 MILLION EQUIVALENT)
TO
REPUBLIC OF INDIA
FOR THE
BIHAR INTEGRATED SOCIAL PROTECTION STRENGTHENING PROJECT
December 3, 2013
Human Development Department South Asia 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.
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CURRENCY EQUIVALENTS (Exchange Rate Effective October 31, 2013)
Currency Unit = Rupee Rupee 61.47 = US$1
US$ 1.54 = SDR 1
FISCAL YEAR April 1 – March 31
ABBREVIATIONS AND ACRONYMS
ADSS Assistant Director Social Security IDA International Development Agency BCBTA Bihar Capacity Building Technical
Assistance IT M&E
Information Technology Monitoring and Evaluation
BDO Block Development Officer MGNREGA Mahatma Gandhi National Rural BPL Below Poverty Line Employment Guarantee Act BRDS BSBCCL
Bihar Rural Development Society Bihar State Building Construction Corporation Limited
MGNREGS MIS
Mahatma Gandhi National Rural Employment Guarantee Scheme Management Information System
BSIOPS Bihar State Integrated Older Persons Scheme
MOU NCB
Memorandum of Understanding National Competitive Bidding
BSRR Bihar State Resident Registry NGO Non Governmental Organization CBO Community Based Organization NSS National Sample Survey CBR Community-Based Rehabilitation ORAF Operational Risk Assessment Framework CEO Chief Executive Officer PDO Project Development Objective CHC Community Health Center PDS Public Distribution System CPS Country Program Strategy PHC Primary Health Center CPSMS Central Plan Scheme Monitoring System PPP Public Private Partnership DC Development Commissioner PRAMS Procurement Risk Assessment and DDRC District Disability Rehabilitation Centers Management System DEA Department of Economic Affairs PRI Panchayati Raj Institution DoSW Department of Social Welfare PWD Person With Disability DPMT District Project Management Team RDD Rural Development Department DRDA District Rural Development Agency RTI Right to Information EA Environmental Assessment RTPS Right to Public Service EMF Environmental Management Framework SECC Socio-economic and Caste Census FM Financial Management SSP Social Security Pensions GAAP Governance and Accountability Action SMF Social Management Framework Plan SP Social Protection GoB Government of Bihar SSUPSW State Society for Ultra Poor and Social GoI Government of India Welfare HR Human Resources TA Technical Assistance IAY Indira Awaas Yojna
Regional Vice President: Philippe H. Le Houerou Country Director: Onno Ruhl
Sector Director: Sector Manager:
Jesko S. Hentschel Pablo Gottret
Task Team Leader: Jessica Leino
TABLE OF CONTENTS
I. Strategic Context ......................................................................................................................... 1
A. State Context .......................................................................................................................... 1
B. Sectoral and Institutional Context .......................................................................................... 1
1. Program performance.......................................................................................................... 2
2. Constraints to effective SP delivery .................................................................................... 3
3. Government response to date .............................................................................................. 4
C. Higher Level Objectives to which the Project Contributes .................................................... 4
II. Project Development Objectives ................................................................................................ 5
A. PDO ........................................................................................................................................ 5
To strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar. .
Components
Component Name Cost (USD Millions)
Strengthening Social Protection Systems and Capacity 32.90
Strengthening Outreach and Social Protection Service Delivery
87.10
.
Institutional Data
Sector Board: Social Protection .
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector Sector % Adaptation Co-benefits %
Mitigation Co-benefits %
Public Administration, Law, and Justice
Public administration- Other social services
50
Health and other social services Other social services 50
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 %
Social protection and risk management Social safety nets 50
Social protection and risk management Other social protection and risk management
50
Total 100 .
Compliance
Policy
Does the project depart from the CAS in content or in other significant respects?
Yes [ ] No [X]
.
Does the project require any waivers of Bank policies? Yes [ ] No [X]
Have these been approved by Bank management? Yes [ ] No [ ]
Is approval for any policy waiver sought from the Board? Yes [ ] No [X]
Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ] .
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X .
Legal Covenants
Name Recurrent Due Date Frequency
Maintenance of BRDS and SSUPSW X CONTINUOUS
Description of Covenant
Bihar shall maintain the BRDS and SSUPSW throughout the life of the Project.
Name Recurrent Due Date Frequency
Specialized Project management teams X CONTINUOUS
Description of Covenant
Bihar shall maintain at all times during Project implementation, within BRDS and SSUPSW’s regular structure, specialized Project management teams.
Name Recurrent Due Date Frequency
Environmental Management Framework (EMF) and Social Management Framework (SMF)
X CONTINUOUS
Description of Covenant
Bihar, through BRDS and SSUPSW, shall carry out the Project in accordance with the EMF and the SMF and any plan developed under each of these instruments. .
Conditions
N.A Type
Description of Condition N.A
Team Composition
Bank Staff
Name Title Specialization Unit
Jessica Leigh Leino Economist Task Team Leader SASSP
Maria E. Gracheva Senior Operations Officer
Senior Operations Officer
SASHD
Pravesh Kumar Social Protection Specialist
Social Protection Specialist
SASSP
John Blomquist Lead Economist Lead Economist SASSP
Tanusree Talukdar Program Assistant Program Assistant SASHD
Silvia Redaelli Economist Economist SASEP
Puja Vasudeva Dutta Senior Economist Team Leader EASHS
Sangeeta Carol Pinto Operations Officer Operations Officer SASHN
Ashiq Aziz Operations Analyst Operations Analyst SASSP
Arun Kumar Kolsur Senior Procurement Specialist
Senior Procurement Specialist
SARPS
Non Bank Staff
Name Title Office Phone City
Srinivas Varadan Consultant, Social Protection
Gayathri Kalia Consultant, Safety Nets
Kalyani Kandula Environment Specialist
Wyly Wade Consultant, IT systems
Anirudh Srivastava Consultant, IT systems
Soumitra Bhattacharya Consultant
Kaustubh C. Devale Consultant
Prabhakar Vanam Consultant
Yutika Vora Consultant .
Locations
Country First Administrative Division
Location Planned Actual Comments
India State of Bihar Patna X
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I. STRATEGIC CONTEXT
A. State Context
1. Bihar is India’s third largest state with a population of 104 million of which approximately 54 million people currently live below the poverty line. Bihar’s economy has grown rapidly at 11% per annum between 2004-05 and 2010-11 with agriculture and related activities growing at 4% p.a. during this period. In the last decade, Bihar has also made impressive improvements in human development outcomes in terms of access to schooling and health. However, illiteracy, under-nutrition and infant and child mortality continue to be sources of major concern. Bihar is primarily rural and agrarian, with high levels of landlessness and land fragmentation, high dependency on agriculture and high levels of seasonal migration. The state is also vulnerable to natural disasters, with nearly three-fourths of the state prone to seasonal flooding.1 Despite the impressive growth, the share of the rural population living below the poverty line witnessed little change from 55.7% in 2004-05 to 55.3% in 2009-10. 2. In addition, certain groups including persons with disabilities, older persons and widows, are especially vulnerable to economic shocks and rising living costs. The 2001 Census estimated that there are about 5.5 million people aged 60 and above, 2 million widowed, separated or divorced women, and about 1.9 million persons with disabilities (PWDs) in Bihar, constituting about 6.6%, 2.4% and 2.3% of the population respectively.2 These groups are likely to experience multiple deprivations. About 28% of Bihar’s disabled population is economically dependent on others, while the dependency ratio amongst the disabled elderly and among older women, particularly widows, is even higher. Households with one or more disabled members also tend to be poor. In 2002, 72% of households with at least one disabled person had a monthly per capita expenditure of less than Rs. 400 – the poverty line for rural Bihar was Rs. 433 in 2004-05. Poverty among the elderly is often not significantly different from the general population although a key source of vulnerability for the elderly is rising health expenditure at a time of declining incomes. In 2004, the majority of older persons lived with their families, but as many as 15% lived either alone or just with their (equally elderly) spouses, making them particularly vulnerable. B. Sectoral and Institutional Context
3. Social protection (SP) spending is fairly high in Bihar (see Table 1) and there are several programs in place to meet the needs of the poor and vulnerable.3 These include three main types of social assistance programs with in-kind or cash transfers: (i) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) - a rights-based, demand-driven public works program that guarantees all rural households up to 100 days annually of unskilled public works employment on demand; (ii) Indira Awaas Yojana (IAY) - cash transfers to poor rural households for building houses; and (iii) Social pensions - cash transfers for older persons, widows and persons with disabilities. The total expenditures on these programs in FY2010-11 were Rs. 64,730 million (US$1.034 billion) and accounted for 74% of the total social protection 1 Flood Management Information System (FMIS), Water Resources Department, Government of Bihar. 2 However, there is growing evidence that people with disabilities comprise between 4 and 8 percent of the Indian population (World Bank 2009). Using this prevalence rate yields about 3.3 to 6.6 million PWDs in Bihar. 3 Central spending on SP was 2.2% in 2008-09 (World Bank, 2011), though this does not take into account the expansion of central MGNREGS and social pensions spending in recent years.
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spending in the state or about 3.04% of Gross State Domestic Product (GSDP). The other SP programs include the Public Distribution System (PDS) and social care services, representing a total of 25% of expenditures in 2010-11 (see Table 1). However, expenditures on social care services are minimal. 4. A number of departments are responsible for administering social protection programs in Bihar. The Rural Development Department (RDD) implements MGNREGS and IAY as well as implements the Below Poverty Line (BPL) list which is used across several SP programs to identify poor households in rural areas. Meanwhile, the Department of Social Welfare (DoSW) is responsible for social pensions and social care services.4 Both RDD and DoSW departments have set up autonomous societies, the Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW) respectively, as their program implementation arms.5 1. Program performance 5. While significant resources are provided for the three major programs, the performance of these programs can be improved by strengthening awareness and building capacity to implement. For instance, one study estimates that, if MGNREGS was implemented as intended, the extra labor earnings from MGNREGS could potentially bring down the poverty rate in Bihar by about 10% points rather than its actual impact of closer to 1% point.6 6. The potential to increase program coverage and thereby to address deprivation and poverty in Bihar is high. Both administrative and census data and a study conducted by the World Bank in 2009-10 suggest that coverage of most social protection programs, including MGNREGS, IAY, and social pension programs for rural households, is low. For instance, MGNREGS is designed as a demand-driven scheme, and only about one third of households that wanted to work on the scheme actually got work, though the number of days was short of the 100 day guarantee. The evidence on other aspects of performance is somewhat mixed.7
4 The two other major SP programs – Public Distribution System (PDS, subsidized food) and Rashtriya Swasthya Bima Yojana (RSBY, subsidized health insurance) - are administered by the Department of Food and Civil Supplies and the Department of Labor respectively. 5 In the Indian context, such autonomous organizations registered under the Societies Registration Act, 1860 are frequently set up by government departments. The chief advantage of a society vis-à-vis a government department is its relative flexibility with respect to financial, procurement and human resource management. 6 Estimates from an impact evaluation of MGNREGS conducted in 2009 and 2010 in rural Bihar by the World Bank at the request of the Rural Development Department (see Dutta et al (2013)). 7 There are varying estimates of leakage in MGNREGS for Bihar (See Imbert and Papp (2011) and Dutta et al (forthcoming).There is no corresponding information on IAY and social pensions. Targeting performance also varies by program. For MGNREGS, the evidence suggests that poor and Scheduled Caste/Tribe households are more likely to get work, though women were substantially less likely to get work than men. In the case of IAY and social
Table 1: SP spending in Bihar (2010-11)
Allocation (Rs. mn)
Expenditure (Rs. mn)
MGNREGS 31,938 26,320 IAY 34,151 30,226 Social Pensions 8,285 8,095 Total (3 main programs) 74,463 64,730 Other SP Programs 29,863 22,355 Total SP expenditure (all) 104,325 87,085 Expenditure on 3 main programs as % of total SP expenditure
71% 74%
Expenditure on 3 main programs as % of GSDP
3.49% 3.04%
Sources: Administrative data, GoB.
3
7. Social care service provision for older persons, persons with disabilities and widows is limited, and policies to cover these groups are still under development. Other than social pensions and some limited provision of institutional care, existing mechanisms for care and support for older persons and persons with disabilities are very limited. Provision of non-institutional care is largely restricted to sporadic NGO-led interventions. Bihar is yet to formulate a state policy for Older Persons, and has only recently adopted the national Maintenance and Welfare of Parents and Senior Citizens Act (2007) while the state Disability Policy is still in draft stage. The draft Bihar State Integrated Older Persons Scheme (BSIOPS) is currently under discussion, and if introduced by GoB, would include a provision for social care services and facilitator-led home and community-based care for older persons. 2. Constraints to effective SP delivery 8. Challenges in implementing SP programs have been identified collaboratively by GoB and the World Bank under the Bihar Capacity Building Technical Assistance program (BCBTA).8 These assessments were instrumental in examining current systems for SP delivery, identifying critical challenges and developing consensus for reform. Key findings of the assessments are described below. 9. Constraints related to awareness generation, enrollment, beneficiary management and benefit payments impede effective delivery. Awareness of rights and information about the processes to access these rights remains low, especially among women, due to inadequate communication and outreach coupled with social stratification and illiteracy. Standardization of processes for beneficiary enrolment would reduce ambiguity and make the process of enrolment more inclusive and transparent. Additionally, the poor and vulnerable are likely to be excluded where there is discriminatory access to information and benefits, where application procedures are too complex or impose high transaction costs. Finally, benefit payments are hampered because the banking network has low penetration in many blocks of the state, while the postal system has weak capacity. In addition, without real time financial management and monitoring systems, implementing agencies are unable to ensure sufficient funds are available in a timely fashion. As a result, there are significant delays in benefit payments that likely have serious implications for the very poorest and most vulnerable.9 10. Human resource gaps constrain the ability to deliver SP programs. At the state level, specific technical skills are required, including policy and program development for vulnerable groups, managing e-governance initiatives, financial and contract management, monitoring and performance management, among others. At the district-level and below, the current delivery structure is inadequate to meet the increasing needs of the target groups. For instance, there is a single district officer responsible for overseeing all social security policies, legislation and programs in the district. Social pensions and social care services do not have dedicated and
pensions, the Below Poverty Line (BPL) Census is used to identify the poor. However, there have been reports of inclusion and exclusion errors, as evidenced by the over 60 lakh appeals made in 2008 following an update of BPL status. 8 See Annex 6 for details. 9 For instance, field work during project preparation indicated that social pension beneficiaries typically received benefits once in six months, instead of Rs. 200 (approximately US$4) every month.
4
qualified staff at the district-level and below, and rely on the Block Development Officer, who is responsible for overseeing all rural development and social protection schemes in addition to performing all other administrative, revenue and law and order functions at the block level. MGNREGS is the sole exception, with dedicated contractual staff at the district, block and panchayat level, although the adequacy and volume of training remains an issue. Panchayati Raj Institutions (elected local governments) play a central role, but have limited capacity for implementation and oversight of SP programs. 11. Challenges relating to performance monitoring and accountability also impede service delivery. Existing monitoring and evaluation (M&E) systems do not provide adequate support for planning and decision making. At present, implementing agencies lack the requisite IT systems to track beneficiaries and benefits in a timely fashion. Field level validation of program performance and social audits needs to be strengthened. There is limited ability to systematically monitor performance, address bottlenecks at different stages of delivery, and provide timely feedback to program administrators. 12. Finally, like most states in India, the state system for SP delivery in Bihar is spread across various Departments, and therefore, often lacks coordination and convergence across programs or the implementing departments. At present, beneficiary records are stored in multiple formats across various government agencies, resulting in fragmented information of variable quality. The lack of an authoritative and unified registry of beneficiaries transfers the burden of proof of identity and eligibility to beneficiaries, who often face problems and incur costs in the process. This can lead to the exclusion of eligible beneficiaries (due to lack of required documents on age and identity), inclusion of ineligible beneficiaries (due to fake identity and lack of cross-checking between program databases) and high transaction costs for both beneficiaries and program administrators. 3. Government response to date 13. In recent years, the government of Bihar has made a commitment to its citizens for good governance and guaranteed delivery of social protection programs and services. The government is bound by national legislation to ensure care and support services to older persons and persons with disabilities and by the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The government has enacted state rules under the Maintenance and Welfare of Parents and Senior Citizens Act 2007 that aim to ensure need-based maintenance for parents and senior citizens and their welfare in the state of Bihar. In addition, Bihar’s Right to Public Services (RTPS) Act of 2011 is a major milestone that reinforces the government’s commitment for ensuring the delivery of notified public services to citizens within a stipulated time. The Act has made it mandatory for public agencies to adopt citizens’ charters with time-lines for delivering services. It further makes public officials accountable in the event an agency fails to deliver a service within the time limits or standards specified in the charter. GoB has recently established block-level RTPS counters to accept applications for social pensions and other services guaranteed by the Act. C. Higher Level Objectives to which the Project Contributes
14. The proposed Bihar Integrated Social Protection Strengthening (BISPS) project will help India accelerate progress towards MDG 1 (eradicating extreme poverty and hunger), specifically
5
through its focus on strengthening capacity and systems to improve delivery of social safety net programs to poor and vulnerable households, as well as older persons, widows, and persons with disabilities in the state of Bihar. Institutional and system constraints to providing these services have been a consistent challenge in the development of coherent policies and efficient service delivery systems in Bihar. The project focuses on addressing these challenges by strengthening institutions and improving and expanding service provision. The proposed project would support the Government of Bihar in its core agenda of promoting better governance and service delivery in the state. In the process, the project would also provide evidence of good practices that could be replicated in other states in India. 15. The project goals are aligned with the Government’s Twelfth Five Year Plan (2012-2017) goals of inclusive growth and development for long term sustainability. Low Income States including Bihar are a top policy priority for GoI and a number of initiatives have been launched in recent years to target the poor and vulnerable population in order to reduce poverty and inequality, including MGNREGA. The project objectives are also consistent with the India Country Program Strategy FY13-17 (Report No. 76176-IN) discussed by the Board of Executive Directors on April 11, 2013. Engagement area three in the CPS focuses on increasing the effectiveness of service delivery in the social sectors by improving governance and institutional effectiveness, decision making processes, administrative capacity, interagency coordination and empowering local institutional and beneficiaries, particularly in lagging states. In addition, the CPS underlines the importance of improving infrastructure and e-service delivery, as well as enhancing M&E capacity and systems for improved accountability.
16. The proposed project also meets the “Finance Plus” criteria defined by the Department of Economics Affairs (DEA, Government of India) (2011) to govern the selection of projects for external financing, specifically those projects that strive to achieve: (i) systemic or transformational impact, by aiming for greater convergence and integration within government services and programs and mainstreaming across key sectors; (ii) innovations and piloting of new approaches; and, (iii) leveraging of resources, notably significant domestic resources. The project’s goals of improving and expanding social service provision and ensuring a more effective use of GoB resources on social services meet all of the DEA finance plus criteria.
II. PROJECT DEVELOPMENT OBJECTIVES
A. PDO
17. The Project Development Objective (PDO) is to strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar. 1. Project Beneficiaries 18. The project beneficiaries are the intended target population of the programs being supported, i.e., poor and vulnerable rural households, persons with disabilities, older persons and widows. There are about 5.5 million people aged 60 and above and about 1.9 million persons with disabilities (PWDs) in Bihar, and 2.0 million widowed, divorced and separated women who could benefit from the project, as well as over 50 million rural poor in Bihar. These groups are
6
characterized by high levels of illiteracy and face barriers of access to services. The project will build effective mechanisms for reaching these groups, ensuring their rights and providing them an effective and responsive safety net. 19. The project will also enhance capacity of government officials and functionaries engaged in delivery of the selected SP programs at the state, district, block and GP level, members of PRIs, NGOs, disabled persons organizations (DPOs), senior citizen associations, and other community based organizations (CBOs) by simplifying procedures and clarifying roles, building skills and incentivizing performance. 2. PDO Level Results Indicators 20. The following key performance indicators (KPIs) would be used to measure the outcomes of the project: • Increased coverage of SP programs and services, as measured by number of program
beneficiaries and share of vulnerable groups in total beneficiaries. • Increased resources available for SP programs, as captured by increase in percentage of
funds drawn by Bihar from central resources. • Improved quality and satisfaction with SP service delivery, as measured by awareness of
entitlements and share of beneficiaries served reporting satisfaction with services received. III. PROJECT DESCRIPTION
21. The proposed project focuses on programs administered by the Department of Social Welfare (DoSW) and by the Rural Development Department (RDD). Specifically, the project would provide support for: (1) strengthening capacity to implement and monitor these programs at the state, district and block levels; and (2) strengthening outreach and social protection service delivery. A. Project components
The proposed project includes two components (see Annex 2 for detailed description): 22. Component 1: Strengthening Social Protection Systems and Capacity (total estimated cost US$32.9 million, of which US$23.0 million IDA financing). This component will strengthen core systems and capacity of the Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW), which are the program implementation arms of the Rural Development Department and the Department of Social Welfare respectively, at the state, district and block levels. This component has two sub-components, reflecting support to each of the two state implementing agencies, BRDS and SSUPSW, as follows: 23. Sub-Component 1.1: Strengthening systems and capacity for safety net delivery (total estimated cost US$24.4 million, of which US$17.1 million IDA financing): Support will be provided to BRDS to strengthen the delivery of MGNREGS and IAY programs, focusing on: (i) Streamlining program delivery mechanisms by developing standardized procedures and tools for effective management of the benefits process, for outreach and communications to citizens, and for disbursement of benefits and grievance redressal. The creation of a Bihar State Resident
7
Registry (BSRR) to track beneficiaries of selected social protection schemes will be supported, as will strengthening financial management systems and capacity at the state, district and block levels for all central and state schemes and scaling up e-payments to beneficiaries; (ii) Strengthening staff capacity and performance incentives by developing a HR policy, performance management system, and training system for building staff capacity and for monitoring the quality of training delivered; and (iii) Putting in place monitoring and accountability mechanisms to enable program and project implementation, monitoring and evaluation. A comprehensive M&E strategy will be developed and capacity built to operate management information systems (MIS) as well as to undertake field assessments and social audits. Procedures for dealing with appeals/grievances related to selected social protection schemes, especially MGNREGS and IAY, will also be developed. Consulting and non-consulting services, additional technical staff, required training and capacity building, goods, and incremental operating costs will be provided.
24. Sub-Component 1.2: Strengthening systems and capacity for social pension and social care service delivery (total estimated cost US$8.5 million, of which US$5.9 million IDA financing): Support will be provided to SSUPSW to strengthen the delivery of social pensions and social care services for persons with disabilities, widows and older persons, focusing on: (i) promoting an enabling policy environment by developing policies, programs and operational guidelines for institutional and non-institutional care targeted to persons with disabilities, older persons and widows; (ii) Streamlining program delivery mechanisms by developing standardized procedures and tools for effective management of the identification, disability certification and enrolment of intended beneficiaries, for outreach and communications to citizens, for disbursement of benefit payments, and for grievance redressal. Procedures for public-private-community partnerships would be developed and capacity would be built for contract and performance management of private sector service providers and other partners to support SSUPSW put in place a mechanism for partnership management. IT applications for social pensions and social care services will be developed to enable case management and tracking of all stages of service delivery; (iii) Strengthening staff capacity and performance incentives by developing a new HR policy, a new performance management system, and a training system for building staff capacity and for monitoring the quality of training delivered; and (iv) Setting up monitoring and accountability mechanisms to enable the monitoring of social pensions and social care services. A comprehensive M&E strategy will be developed and capacity built to operate the management information system (MIS) that will be developed as well as to undertake field assessments and social audits. Support for improving funds management by designing and piloting e-payments for social protection schemes will be provided. Consulting and non-consulting services, technical staff, required training and capacity building, goods, and incremental operating costs will be provided. 25. Component 2: Strengthening Outreach and Social Protection Service Delivery (total estimated cost US$87.1 million, of which US$61.0 million IDA financing). Under this component, the project would support state-wide coverage of social care services by establishing 101 Social Care Service Centers. The component would also support pilots to improve outreach through mobile therapy services, test models of community based rehabilitation, and an “Innovation Window,” which would test innovative proposals to further improve social services.
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26. Sub-component 2.1: Establish and Strengthen Social Care Services (total estimated cost US$69.5 million, of which US$48.6 million IDA financing): This sub-component would support establishing social care services across the state through Social Care Service Centers (referred to as Buniyad Centers) that would provide high quality care, support and rehabilitation services for older persons, widows and persons with disabilities. A Buniyad Center would be set up in each of the 101 sub-divisions across the state.10 From among the 101 centers, 38 centers would be strengthened as district level centers with additional human resource and infrastructure to undertake monitoring and supervision of social care services in each district. The services offered at the Buniyad Centers would include basic care and support, legal aid, therapy, counseling and rehabilitation, emergency outreach services through a state level toll free Helpline Service and district level response teams, assessment and disability determination, provision of assistive devices, and would be provided either in-house or through a referral network. This sub-component would finance the construction, maintenance and operations of the Centers. It would also finance renovations of select government buildings, which will house temporary centers where service provision will be initiated during the initial project period in order to fine-tune the service delivery model before the state-wide expansion of services.
27. Sub-component 2.2: Pilot Models in Social Protection Delivery (total estimated cost US$12.7 million, of which US$8.9 million IDA financing): Under this sub-component, the Project would support strengthening access and outreach of select social protection services in the state through:
(i) Establishing mobile outreach and therapy services to improve coverage and outreach of
social care services and other social protection services for the target beneficiary groups. The project would support one mobile therapy service van in each district, fully equipped with diagnostic, therapeutic equipment and audio-visual systems.
(ii) Developing and piloting workable models for Community Based Rehabilitation (CBR) of
older persons, widows and persons with disabilities. This would involve provision of care and rehabilitation services in family and community settings for the poorest and most vulnerable individuals. Local community facilitators (identified through partnerships with community based organizations (CBOs) and NGOs) would be trained to serve as focal service providers for these groups.
28. Sub-Component 2.3: Innovation window (total estimated cost US$4.9 million, of which US$3.4 million is IDA financing): This sub-component would finance small-scale pilots that contribute toward the project objectives by testing innovative mechanisms for increasing community level outreach for effective delivery of social protection programs and services at the local level; enhancing promotion and participation of stakeholders and project beneficiaries; and providing social protection for the poor and vulnerable during emergencies and disasters. This sub-component would be initiated in the third year of the project and would finance eligible expenditures (including goods, services and operating costs) for the pilots.
10There are a total of 38 districts in Bihar, which are divided into 101 sub-divisions. Each sub-division is comprised of between 5 and 7 blocks.
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B. Project Financing
1. Lending Instrument 29. The Project would be financed by an Investment Project Financing (IPF) instrument. This instrument was selected because the project requires specific technical inputs to strengthen institutions involved in social protection delivery, and physical infrastructure inputs, i.e. the establishment and maintenance of physical infrastructure (social care service centers) and virtual infrastructure (MIS and payment systems). 2. Project Cost and Financing
30. The Project would be financed by an IDA Credit of SDR 54.7 million (US$84 million equivalent) with an estimated Government of Bihar contribution of US$36 million. IDA would retroactively finance eligible expenditures incurred by the Government during the one year period prior to Credit signing (expected in March 2014) up to SDR 2 million. These expenditures will include those incurred in conducting the necessary environmental and social safeguard assessments, advance procurement action taken for large contracts, and recruitment of contractual staff for both implementing agencies, among others. Project cost estimates by sub-components are shown in Table 2 below. Table 2: Project cost estimates by sub-component
Components IDA Financing (US$ million)
GOB Financing (US$ million)
Project Total (US$ million)
1.1 Strengthening Systems and Capacity for Safety Net Delivery 17.1 7.3 24.4 1.2 Strengthening Systems and Capacity for Social Pension and Social Care Service Delivery
5.9 2.5 8.5
Sub-Total Component 1 23.0 9.9 32.9 2.1 Establish and Strengthen Social Care Services 48.6 20.8 69.5
2.2 Pilot Modes in SP Delivery 8.9 3.8 12.7 2.3 Innovation Window 3.4 1.5 4.9 Sub-Total Component 2 61.0 26.1 87.1 T o t a l s 84.0 36.0 120.0
31. The project design is such that the focus in the initial two years would be on providing the necessary technical assistance and other inputs to build the capacity of the SP system (Component 1) and to lay the groundwork and design for the expansion of services (Component 2). As a result, initial expenditures will be made largely for technical consultancies and hence disbursement is not expected to be very high. In addition, the experience of other projects in Bihar indicates that it takes time to build capacity to absorb and disburse funds in a low capacity setting. Disbursements are expected to pick up in the third year of implementation once there is adequate institutional capacity and construction of the social care service centers is ongoing and service provision has started, as capital investments and center operating costs including staff salaries comprise a large share of the financing. 32. The project length is estimated to be six years to allow adequate time to design, construct, equip, staff, operate and evaluate the provision of services at the proposed service centers. It is
10
estimated that two to three years would be required to fully set up these centers, leaving another three to four years to engage in service provision. C. Lessons Learned and Reflected in the Project Design
33. The project design has drawn extensively on relevant global, regional and national experience in supporting systemic reforms of social protection programs and services and has also greatly benefitted from extensive Bank experience of working in Bihar over the past several years under the Bihar Capacity Building Technical Assistance program (BCB TA).11 Specific lessons are as follows: 34. In an effort to ensure capacity building and sustainability, the implementation arrangements do not entail separate project management units staffed during the project period. Instead, the existing state-level societies under the two departments, BRDS and SSUPSW, that have been tasked with the mandate of delivering these programs and services in the state as a whole will also be fully in charge of project implementation. This arrangement will ensure greater overall cohesion in implementation and greater incentives for staff to ensure a more sustainable outcome. Both societies are sustainable institutions with central and state funding beyond the project. The head of each society reports to the head of the government department. Several Bank financed projects rely on societies for project implementation in India; for example in the case of the Bihar Rural Livelihoods Project, a society was established specifically for project implementation. This lesson has been learned for the Bank portfolio as a whole but makes particular sense in the context of Bihar. 35. A major lesson from the 2009-2012 India Country Assistance Strategy (Report No. 46509-IN, December 11, 2008) is the need to focus on governance, i.e.: strengthening implementing agencies management/administration functions, introducing clarity, transparency and consistency in program processes, and putting in place real-time M&E systems to increase accountability. In line with this lesson and the needs identified during the Bank’s collaboration under the BCB TA project, the design of the proposed project strongly reflects the focus on improvements in stewardship/governance of the programs in order to delivery better quality timely services for the vulnerable groups in Bihar. 36. The Bank team has worked closely with the GoB, under the BCB TA, to identify challenges and solutions in providing more effective SP delivery in Bihar. This collaborative effort over the past several years has yielded several lessons which have been critical in conceptualizing the proposed project. These include, among others, the need to: (i) substantially increase awareness and coverage of most safety net programs in order to increase their utilization, (ii) re-engineer business processes in order to streamline program administration, (iii) redefine social care policies on disability and older persons, (iv) establish transparent and efficient funds flow management, (v) foster partnerships for SP delivery, and (vi) strengthen monitoring and evaluation. 37. The design and the implementation modality of the social care services centers (under sub-component 2.1), reflects lessons from experience of similar models delivery of social
11 See Annex 6 for a brief description of the activities undertaken under the BCB TA.
11
services in India and Bangladesh. A learning event was specifically organized by RDD, DoSW and the World Bank in April 2012 in Delhi to learn from Indian experiences, based on which several key decisions were taken with respect to how the centers will be designed, built and operated. Similarly, the proposed MIS and state registry work (Component 1) builds on the growing experience in other Indian states and on national e-governance initiatives, notably the National e-Governance Plan (NeGP). The design of social care and outreach services draw lessons from the Disability and Children at Risk Project in Bangladesh. Based on the learning from these experiences, the project provides for a heavy initial focus on design and consultation and on linking with existing state and central e-governance initiatives. The project also provides support for building technical and project management capacity to guide and manage such work. 38. Finally, lessons have also been learned in the context of working in the state of Bihar through collaboration with other projects, such as the Bihar Rural Livelihoods Project (BRLP) and the Bihar Panchayat Strengthening Project (BPSP) as well as other initiatives such as the state-wide support for administrative reform being provided by DFID (through the Bihar Administration and Governance Reform Program). Importantly, this collaboration has demonstrated the ability to work effectively in Bihar on complex issues as well as on community based and driven initiatives. This has also underlined the importance of the need to maximize synergies with these projects. Indeed, this project builds on the DFID project support for state-wide administrative reforms. IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
39. The project will be implemented by the SSUPSW and the BRDS, who will oversee operations through their existing institutional structures, with the heads of each Society reporting to the Secretaries of their respective line Departments, i.e. RDD and DoSW. IDA financing would provide for the costs of the selected staff at SSUPSW and BRDS, as well as for outsourced technical agencies for additional support to the implementing agencies. 40. BRDS and SSUPSW will have specialized staff for program management, monitoring and evaluation, communication, training, e-governance and partnerships. The society staff would also include domain specialists for their respective areas of business, i.e. programs and services targeted to the rural poor and vulnerable, older persons, widows and persons with disabilities. 41. SSUPSW would be responsible for the overall oversight of construction of 101 Buniyad Centers. Bihar State Building Corporation Limited (BSBCCL), which will sign a detailed Memorandum of Understanding (MOU) with SSUPSW, will be responsible for the procurement of all the proposed civil works. Operations at the service centers would be facilitated and monitored by the District level Buniyad Centers (referred to as the District Unit of SSUPSW). These District Units would function in close collaboration with the Assistant Director – Social Security. Staffing at these Units would consist of contractual staff appointed by SSUPSW.
42. BRDS would undertake the implementation and supervision of project activities, particularly the financial management strengthening which includes streamlining funds flow of various programs managed by RDD, standardized accounting and reporting systems, e-payments
12
to beneficiaries in large centrally sponsored schemes (CSS) programs and strengthening audit assurance by way of internal pre-audit functions. For this BRDS will contract in financial management specialists at the state and district level and accountants at the block level on contractual basis. The district level team would function in close collaboration with the District Rural Development Agency (DRDA). At the block level, BRDS will appoint an accountant who would work under the Block Development Officer (BDO) to facilitate scheme wise and unit wise accounting, financial reporting, bank and inter unit reconciliations, funds management, etc. 43. The oversight and overall coordination function for the project would be provided by the Development Commissioner, Government of Bihar, in keeping with existing institutional mechanisms and procedures (see Annex 3 for further details). B. Results Monitoring and Evaluation
44. Results monitoring is expected to utilize the existing framework within both implementing agencies. This would be supplemented by a strengthened monitoring system to be introduced through the MIS and beneficiary tracking applications developed for selected programs under Component 1, in combination with independent third party validations and surveys. The capacity of the implementing agencies for monitoring would also be developed through training. Further details on these activities are provided in Annex 3. Details of the set of standardized indicators to be used to assess the effectiveness of the outputs of project activities are provided in Annex 1. C. Sustainability
45. The implementing agencies for this project are existing state institutions, with a large share of central and state funding already in place. This would ensure sustainable operations after the project closes. The state is in the process of approving a state scheme for PWDs and older persons with a budgetary provision of about Rs.450 million (US$7.2 million) and Rs. 615 million (US$9.8 million), with Rs. 282 million (US$4.5 million) for social care centers and Rs. 41 million (US$0.65 million) for community based rehabilitation respectively. It is expected that the Buniyad Centers will be incorporated into this program at the conclusion of the project. It is also expected that the block level accountants supported under Component 1.2 would be absorbed into a cadre for block-level accountants that is currently under development.
V. KEY RISKS AND MITIGATION MEASURES
46. An Operational Risk Assessment Framework (ORAF) is attached in Annex 4 and describes the key risks and mitigation measures which have been discussed and mutually agreed with the two implementing agencies. The composite rating for preparation is Substantial because of delays incurred thus far in obtaining the necessary clearances and hiring key staff, including financial management and procurement specialists and subject area specialists, in the implementing agencies. However, the overall risk for project preparation is mitigated by the extensive Bank collaboration with the Government of Bihar over the past several years in the area of social safety nets and provision of social services. This has laid a strong foundation for the preparation of this project. Also, project preparation has benefited from extensive involvement of both agencies (including through special seminars and learning events) in project design.
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47. The overall risk for project implementation is deemed to be Substantial. This is due to High and Substantial risks in the following four critical areas: (i) the operating environment sector risks associated with the current high fragmentation of SP programs and services and the potential that this fragmentation will hamper and delay project activities; (ii) implementing agency risks, including limited capacity to administer services, relatively new implementing agencies, fiduciary limitations and potential delays in decision-making due to institutional constraints; (iii) project design risks associated with the novelty of the operation; and (iv) delivery monitoring and sustainability risks, mainly the risk of failure to adequately test and evaluate critical investments proposed under the project. 48. Key mitigation measures for the above-mentioned risks are as follows: (i) Component 1 of the project focuses on strengthening core systems and capacity to improve the administration of service delivery, including the development of an MIS and strengthening the financial management system at the block, district, and state levels; (ii) the proposed project includes financing to monitor and evaluate the effectiveness of the project, including both process assessments and quantitative surveys to evaluate impact, which would provide timely inputs for course correction as required during the project. This would ensure an understanding of the areas of success or under-performance and their underlying factors, ensuring a robust evidence base for decision-makers in Bihar. VI. APPRAISAL SUMMARY A. Economic and Financial Analysis
49. The economic rationale for the investments proposed is provided by the expected benefits to the target groups of the selected SP programs and the expected reduction in costs incurred by government in delivering these programs (see Annex 7 for detailed analysis). 50. The eligible population targeted by the selected programs would benefit from greater access to these services, lower transaction costs, and timely and transparent benefit payments. The project has the potential to significantly increase the coverage and the poverty impact of the selected SP programs. While it is not feasible to quantify the benefits of institutional strengthening, the increase in coverage can be simulated assuming that these programs are implemented as intended. National data for such analysis is only available for MGNREGS, but the findings are illustrative of the other programs covered under this project. In Bihar, only 10% of rural households got some work on the scheme in the past year, compared to 36% all-India.12 Simulating participation if the scheme’s 100 day guarantee was actually implemented as intended indicates that coverage in Bihar would increase to 46% and total expenditure would increase to Rs. 4,495 per rural household. Further, the study estimates the current poverty impact at about 1 percentage point. Based on simulations of the potential impact of MGNREGS alone, the project has the potential to reduce rural poverty in Bihar by 10 percentage points. There are also indirect effects through the stimulus to the non-farm economy if the assets built are sustainable and relevant to the local economy. By increasing the menu of
12 Based on NSS survey data for 2009-10.
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available social care services for older persons and persons with disabilities, the project would increase utilization of these services and free caregiver time for other activities. 51. The project is also expected to reduce the costs to government of SP delivery by making program procedures more efficient, increasing transparency and reducing leakages. It is difficult to quantify the expected gains, but the experience of initiatives in other Indian states suggests that gains could be substantial: (i) savings to government of about 15-20% through use electronic funds management systems over manual systems (McKinsey, 2010); (ii) lower leakage through cross-checking financial information against program outcomes (a recent pilot in Haryana revealed that 34% of beneficiaries could be eliminated by checking bank accounts against enrolment); (iii) reducing leakage through elimination of duplicate and ghost beneficiary records (AP eliminated about 10% MGNREGS beneficiaries and close to 5% social pension beneficiaries; applying these estimates to Bihar, potential savings arising from the digitization of beneficiary databases and identity authentication through the BSRR can be as high as Rs. 1 billion); and (iv) cost savings through developing IT solutions for common functional needs. B. Technical
52. The design of the project responds to key constraints impeding SP delivery specifically in relation to existing institutions, incentives for performance, outreach and communications as well as monitoring and accountability mechanisms. The extensive engagement with GoB in the course of the BCB TA was instrumental in arriving at a common understanding of the challenges in delivering social protection programs and services in Bihar. Global experiences combined with an examination of good practices across India have suggested possible innovations with the potential to help Bihar achieve better program outcomes. The Project interventions are based on the reform priorities of GoB and are designed to support Bihar’s vision of a SP system that effectively addresses the diverse needs of Bihar’s poor and vulnerable population. C. Financial Management
53. The project has adequate financial management systems in place to account for and report on project expenditures. There are two special purpose vehicles - BRDS and SSUPSW – both being societies registered under the Societies Registration Act, which will be responsible for implementation and all financial management aspects under the project. Funds will be drawn by these two entities based on two separate budget heads in GoB annual budget. The funds so drawn will be deposited in project specific bank accounts. A centralized fund management arrangement will be agreed with commercial bank(s) to facilitate payments at state, district, block and facilities level (i.e., the Buniyad Centers). Financial management manuals (including reporting formats) have been prepared. The construction of Buniyad centers will be entrusted by SSUPSW to BSBCCL, which will be responsible for technical (architectural design, quality control), contractual (bidding, placing contracts, financial payment, maintenance of related account), and administrative (supervision of civil works) execution of civil works (Buniyad Center) under the project. BSBCCL will submit monthly financial reports to SSUPSW, which will account for and submit a consolidated IUFR including the civil works component to Bank. 54. Accounts will be maintained in an off-the-shelf accounting system, which has been installed in the two societies at the state level - this will be extended to the district units. The accounting records for the civil works and activities in relation to construction of Buniyad
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Centers will be maintained at BSBCCL and will be subject to both internal as well as external audit of the project. Based on the two accounting systems at BRDS and SSUPSW, both units will submit separate quarterly IUFRs which will be used for reporting and disbursement. Both agencies have contracted/are in the process of contracting finance professionals at the state level. Similarly, finance staff will be contracted for the district units and at the block level for BRDS and SSUPSW in line with the approved HR manuals. The annual financial audit will be carried out by firms of chartered accountants contracted, as per Bank procurement procedures, and as per terms of reference acceptable to the Bank. The detailed financial management arrangements are described in Annex 3. D. Procurement
55. Procurement for the proposed project will be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” (January 2011) [Procurement Guidelines]; “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers (January 2011)” [Consultancy Guidelines]; and the provisions stipulated in the Legal Agreement.
56. The two societies BRDS and SSUPSW, and BSBCCL will manage procurement for the activities supported by the project. Draft procurement manuals have been prepared by the two societies and have been cleared by the Bank and need to be adopted by the societies. Assessments of the capacity of the three entities to carry out procurement have been carried out and detailed out under Annex 3. The procurement plan for the first 18 months of project implementation has been prepared and is in Appendix 1 to Annex 3. For each contract to be financed under the Credit, procurement methods or consultant selection methods, estimated costs, prior review requirements and time frames are reflected in the Procurement Plan which will be updated at least once a year to reflect the latest changes. The Procurement Risk Assessment and Management System (PRAMS) had been done and the procurement risk rating is High.
E. Social
57. The project will not have any land acquisition as the civil works would be carried out on available government land. The screening process to identify suitable unencumbered sites has been provided in the Social Management Framework (SMF). The Project triggers OP/BP4.10 (Indigenous People) safeguard policy because project beneficiaries include tribal population of more than 2 percent of the total population in 10 districts in Bihar. The policy is triggered to ensure that any adverse effects of the project are avoided or minimized and that the Scheduled Castes and Tribes receive culturally appropriate social and economic benefits. In order to mitigate possible adverse effects on these groups and to ensure that project benefits are culturally appropriate, the SMF has been prepared. The SMF provides a guidance tool for implementation, monitoring and supervision and will serve as a guide for addressing the specific social inclusion issues through the Social Inclusion Plan. The SMF includes a Tribal Development Plan, specifically targeting the scheduled tribe population. Further details on the implementation arrangements for social safeguards, as specified in the SMF, are provided in Annex 3. The SMF has been disclosed through the websites of the RDD and DoSW on October 23, 2013 as well as through the Bank Infoshop.
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F. Environment
58. In line with the nature and scope of proposed project activities, the OP4.01 (Environment Assessment) has been triggered and the project has been assigned category ‘B’. The Forest (OP 4.36) and Pest Management (OP 4.09) policies have also been triggered because while the project does not directly finance MGNREGA, the project seeks to strengthen the delivery of the MGNREGA program, which includes afforestation/tree plantation activities in which pesticides might be used. The Physical Cultural Resources (OP 4.11) policy has also been triggered as some sites may be located close to sites, structures, natural/man-made features that have historical, archaeological, religious or other cultural significance and since civil works are involved, ‘chance finds’ at work sites may need to be managed. 59. An environmental assessment (EA) was undertaken by the Government of Bihar for the proposed project in selected sites. The EA also included a review of the existing capacity in RDD, DoSW and the BSBCCL for environmental management. The Environmental Management Framework (EMF), developed as an outcome of the EA, provides guidelines for site selection, design, construction and maintenance of environment-friendly Buniyad Centers in line with relevant legal and regulatory requirements related to environment aspects. It also provides environmental guidelines and describes a capacity building plan to enable their adoption as a good practice for MGNREGS and IAY works. Further details on the implementation arrangements for environment safeguards, as specified in the EMF, are provided in Annex 3. The EA and EMF have been disclosed through the websites of the RDD and DoSW on October 23, 2013 as well as through the Bank Infoshop.
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ANNEX 1: RESULTS FRAMEWORK AND MONITORING
A. Introduction and Rationale for Results Framework Indicators
1. The development objective of the Project is to strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar. This would contribute to a higher level objective to improve the effectiveness with which resources are managed and deployed to provide quality services to programs beneficiaries. 2. Component 1 of the Project addresses the lack of capacity of implementing institutions. Activities under this component contribute directly to increasing the efficiency of resources management (human, financial and technical) and efficacy of programs’ implementation. In the absence of a composite indicator to accurately measure capacity at the State level, the project relies on intermediate indicators to capture the outputs of various capacity strengthening activities such as: (i) improved policy environment for older persons and PWD; (ii) standardized procedures and tools for program delivery developed; and (iii) improved human resource capacity for SP delivery. At the PDO level, outcomes of capacity strengthening are captured using an indicator of increased resources available for SP programs.13 Capacity strengthening and systems development would also have indirect effects on improving the coverage and quality of service delivery, which is measured by increased coverage (through the increase in available resources and ability to reach and enroll beneficiaries), increased quality of service delivery and beneficiaries’ satisfaction.
Table 1.1: Correspondence between PDO, PDO indicators and Project components PDO 1 PDO 2 PDO 3
Objective Strengthening state-level capacity
Improving service delivery outcomes
Increased resources available for SP programs
Increased coverage of SP programs and services
Improved quality and satisfaction with SP service delivery
Component 1
Promoting an enabling policy environment for older persons, widows and PWDs
X X
Streamlining delivery procedures and tools X X X Improving human resource capacity for SP delivery
X X X
Component 2
Social care services
X X
Pilot innovations in access and outreach of social protection services
X X X
13 As discussed in the Economic and Financial Analysis section, field studies indicate delays and shortfalls in funds availability at the district and lower levels of government, largely due to limited capacity to manage funds and prepare accurate reports on utilizations. These in turn lead to lower coverage and delays in benefit payments.
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3. Component 2 of the Project addresses inadequacy of service provision, particularly of social care services, at the block and community levels. At the PDO level, outcomes of Component 2 will be measured by increased (i) coverage of beneficiaries (including coverage of vulnerable groups); (ii) increased quality of service delivery; and (iii) satisfaction of beneficiaries.
Table 1.2: Correspondence between Intermediate Outcomes and Indicators Intermediate Outcomes
Intermediate Indicators Use of Intermediate Results Information
Component 1
Promoting an enabling policy environment for older persons and PWDs
1. State policies developed adopted and implemented
Signals major change towards the improvement in the policy environment and supports the improvement of SSP and Social Care coverage (PDO1), improved quality of service delivery and beneficiary satisfaction (PDO3)
Streamlining delivery procedures and tools
2. Operation manuals developed and adopted for the selected programs (MGNREGS, IAY, SSP)
3. Standards of care developed and adopted 4. % grievances addressed 5. Building and operating program MIS
Monitor progress toward increasing effectiveness and efficiency of service delivery. Milestones set the basis for the achievement of all PDO indicators
Improved capacity for SP delivery
6. % concerned officials and partners trained on program procedures
7. % staff satisfying performance standards 8. % of benefits received on time 9. % of blocks submitting audit reports and
utilization certificates on time
Effective implementation of policies and skilled and motivated staff achieving performance targets are a precondition for achieving service delivery targets and increasing resources available for SP programs. These indicators will be used to monitors progress toward all PDO indicators.
Component 2: Establish and strengthen social care services
10. % of Buniyad Centers constructed 11. % of centers operational
Signal progress toward effective development of interventions. Progress in these indicators is expected to positively affect the pace of improvement in PDO indicators 1 and 3.
Support strengthening access and outreach of social protection services
12. Number of mobile therapy units operational and providing services
Monitor progress toward improving access to services. Progress in this indicator is expected to positively affect the pace of improvement in PDO indicators 1 and 3.
B. Data Sources
4. Data for the result framework will come from three sources (i) administrative records; (ii) household survey data; and (iii) citizen score cards. (i) Administrative records will provide regular information to assess the progress toward
intermediate outcomes and state level PDO indicator one. Current administrative records provide aggregate information, whereas this project would put in place IT-based information
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systems that would provide beneficiary-level information. M&E cells in BRDS and SSUPSW will be mainly responsible for producing monitoring and progress reports. Other administrative cells (HR, Training and Capacity building etc.) will be involved in monitoring specific indicators as detailed in the Result Framework and Monitoring Table.
(ii) Household survey data will provide sample based information on outcome indicators (PDO 1 and 3). Household survey data will be collected three times: in YR1 (Baseline); in YR3 (Midterm) and in YR6 (Final). Household survey data will be designed to obtain a representative sample of the target population of the SP programs in both project and non-project districts. Household survey will serve two objectives; (a) provide information to monitor progress toward outcome indicators; (b) evaluate the impact of the project.
(iii) Citizen score cards will be used to assess the project’s performance based on clients (beneficiaries) experience with it. In particular, beneficiary surveys will be used to monitor outcome under PDO 3 (satisfaction of SP programs’ beneficiaries). Beneficiary surveys will be implemented in three points in time (Y2, Y4, Y6) with one year lag with respect to the household survey data baseline to allow time for construction of the Buniyad centers.
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India: Bihar Integrated Social Protection Strengthening Project (P118826)
Results Framework
Project Development Objective (PDO): to strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar.
PDO Level Results Indicators*
Cor
e Unit of Measure
Baseline
Cumulative Target Values**
Frequency
Data Source/
Methodology
Responsibility for Data Collection
Description (indicator definition
etc.) YR 1 YR 2 YR3 YR 4 YR5 YR6
1) Increased coverage of SP programs and services as measured by number of program beneficiaries (1.1) MGNREGS & IAY (1.2) SSP (1.3) Social Care
X C Interim baseline 1
MGNREG - 383454 IAY – 338788 SSP- 529547 Social care – N/A
Systems established to provide beneficiary-level information and establish baseline
Increase over baseline: (1.1) 5% (1.2) 5% (1.3) 10%
Increase over baseline: (1.1) 7.5% (1.2) 7.5% (1.3) 20%
Increase over baseline: (1.1) 10% (1.2) 10% (1.3) 30%
Increase over baseline: (1.1) 15% (1.2) 15% (1.3) 40%
Increase over baseline: (1.1) 20% (1.2) 20% (1.3) 50%
Annual
Administrative data
(program MIS)
BRDS, SSUPSW (M&E cells) & third
party evaluation
2) Increased coverage of SP programs and services as measured by the share of vulnerable groups in total beneficiaries (1.1) MGNREGS & IAY (1.2) SSP (1.3) Social Care
X % Interim baseline 2 MGNREGS: SC/ST - 18% N/A
Systems established to collect information and establish baseline
15% increase over baseline
25% increase over baseline
Thrice Household survey data
BRDS, SSUPSW (M&E cells) & third
party evaluation
Vulnerable groups: - ST/SC -women
3) Increased resources available for SP programs, as measured by % of funds drawn from central resources (1.1) MGNREGS & IAY (1.2) SSP
% No system in place to track
Systems established to track funds requested and released
5% increase over baseline
10% increase over baseline
15% increase over baseline
20% increase over baseline
25% increase over baseline
Annual
Administrative
(progress reports)
BRDS(FM specialists)
Numerator: Funds utilized by state out of central resources Denominator: Funds allocated by GoI
4) Improved quality and satisfaction with SP service delivery as measured by %
% Baseline not established
Systems established to establish
20% 40% Thrice
Household survey data
BRDS (M&E cells) & third
Awareness: To be defined as a composite
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eligible population aware (1.1) MGNREGS & IAY (1.2) SSP (1.3) Social Care
baseline; Awareness campaigns implemented
party evaluation indicator of awareness of process & entitlements
5) Improved quality and satisfaction with SP service delivery as measured by % of beneficiaries reporting satisfaction with services received (1.1) MGNREGS & IAY (1.2) SSP (1.3) Social Care
% Baseline not established
Systems established to collect information and establish baseline
20% increase over baseline
40% increase over baseline Thrice
Citizen score cards
& household survey data
BRDS, SSUPSW (M&E cells) & third party evaluation
Satisfaction: To be defined as a composite indicator of various dimensions of service delivery
INTERMEDIATE RESULTS Intermediate Result (Component One): (a) To strengthen core systems and capacity for delivering safety nets and social care services; (b) improve service delivery outcomes
Intermediate Indicators
Cor
e Unit of Measure
Baseline
Cumulative Target Values**
Frequency Data Source/ Methodology
Responsibility for Data
Collection
Description (indicator definition
etc.) YR 1 YR2 YR3 YR4 YR5 YR6
Intermediate Result One: Improved policy environment for older persons and PWDs as measured by:
State policies developed, adopted and implemented
M National level legislation adopted by the state.
(i) State Disability Policy revised and adopted. (ii) State Older Persons Policy developed
(i) State Disability Policy implemented (ii) State Older Persons Policy adopted
(ii) State Older Persons Policy implemented.
Once Administrative
records SSUPSW
(M&E cells)
Developed: Draft state policy documents prepared. Adopted: State cabinet approval. Implemented: Key actions in policy initiated.
Intermediate Result Two: Standardized procedures and tools for program delivery developed and implemented as measured by: Number of Operations Manuals developed for MGNREGS IAY SSP
C National/ basic state guidelines exist 1 3 Once
Administrative records
BRDS, SSUPSW
OM to include: procedures for awareness generation, enrollment, disability
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certification, payment, grievance & M&E
Standards of care developed and adopted
% Some standards in various documents
Initiate preparation and consultation
Standards of care developed, manuals distributed and partners trained
At least 10% institutions apply common standards
At least 20% institutions apply common standards
At least 30% institutions apply common standards
At least 50% institutions apply common standards
Annual (admin)
Administrative monitoring
reports + third party
assessment
SSUPSW, participating institutions &
third party assessment
Institutions: Old age homes, institutions for PWDs and disabled children, and widows
% grievances addressed (1.1) MGNREGS & IAY (1.2) SSP (1.3) Social Care
% No system in place
Grievance Redressal procedures and system established
20% increase over baseline
40% increase over baseline
Thrice
Household survey data
BRDS (M&E cells) & third party evaluation
Grievance addressed: Registered and addressed according to OM guidelines
Building and operating program MIS
M nil System built
System operational
Annual
Administrative (progress & monitoring reports)
BRDS and SSUPSW (e-governance cell)
Intermediate Result Three: Improved human resource capacity for SP delivery as captured by:
% Concerned officials and partners trained on program procedures: 1.1. BRDS 1.2. SSUPSW
%
Some ad hoc training for MGNREGS; none for rest
Training needs assessment completed and materials developed
Intermediate Result Two: Support strengthening access and outreach of social protection services as measured by: Number of mobile therapy units operational and providing services
C
Nil 10 20 30 38 38 38 Annual Administrative
records
SSUPSW (M&E cell)
M: Milestone, C: Count, %: Percentage Notes: Outcome indicators measured through household survey data and citizen report cards (three rounds: Y1 - baseline, Y3 - mid-term, Y6 – end-term). In several cases, systems do not yet exist to measure many of the indicators on which project implementation would be monitored. As a result, the project will put these systems in place in the first year and establish the baseline, following which incremental changes over time will be monitored. 1\ Interim baseline determined on the basis of administrative data based on aggregate reports, not beneficiary-level information, and it is possible the baseline will change once systems are put in place to provide beneficiary-level information. 2\ Interim baseline determined on the basis of a survey to study the impact on poverty of MGNREGS (see Dutta et al, 2013). The data is representative for the state.
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ANNEX 2: DETAILED PROJECT DESCRIPTION
1. The Bihar Integrated Social Protection Strengthening (BISPS) Project aims to strengthen institutional capacity of the Department of Social Welfare and the Rural Development Department to deliver social protection programs and services and expand outreach of social care services for poor and vulnerable households, persons with disabilities, older persons and widows in the state of Bihar. In doing so, the Project would help ensure that programs reach the intended target groups and improve the efficiency of public spending on social protection. 2. The first component of the Project would provide technical assistance to the program implementation arms – the Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW) – of the RDD and DoSW to strengthen core systems and capacity. The second component of the Project would provide state-wide social care services and outreach services through the “Buniyad Centers” as well as pilot other innovations in social protection service delivery. A. Project components
The Project is composed of the following components: Component 1: Strengthening social protection systems and capacity (US$32.9 million total, of which US$23.0 million IDA financing) 3. The objective of this component is to support the Government of Bihar in strengthening social protection systems and capacity to deliver programs and services. The focus would be on strengthening institutions engaged in social protection delivery by: (a) introducing clarity, transparency and consistency in policies and regulations and their implementation and operation; (b) strengthening roles and responsibilities and putting in place performance incentives; and (c) putting in place control and accountability mechanisms for bringing transparency and enforceability in the system. 4. This component is structured into two sub-components, reflecting support to each of the two state institutions responsible for delivering the bulk of SP programs in Bihar. These investments are expected to contribute to an enabling policy environment and stronger accountability relationships through clearly defined, standardized and simplified procedures and well-trained motivated staff, partners and other stakeholders. These process improvements are expected to lead to improved program outcomes with respect to greater demand for services, greater transparency to enable tracking of benefits and reducing leakage, and the ability to deliver programs and services. Sub-component 1.1: Strengthening systems and capacity for safety net delivery (US$24.4 million total, of which US$17.1 million IDA financing): 5. This sub-component would strengthen BRDS systems and capacity for the delivery of MGNREGS and IAY in the state. This would take the form of consultancy services as well as specialized cells in BRDS, for instance for training, partnerships with non-government agencies,
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communications and awareness, monitoring and evaluation, etc.14 Technical assistance would be provided for a number of key activities, as follows: (i) Streamlining delivery mechanisms 6. This activity would support BRDS in reviewing existing processes for MGNREGS and IAY delivery and develop simplified, standardized processes for outreach and communications, identification and enrolment of beneficiaries, financial management and disbursement of benefits, as well as in developing mechanisms for tracking delivery of selected SP schemes and institutionalizing partnerships for delivering these programs. Specific support includes:
• Developing operational manuals: There have been recent revisions to the national MGNREGS guidelines that need to be adapted to Bihar’s specific context and gaps in the current guidelines need to be addressed. An operational manual for MGNREGS would be developed, including mechanisms for the registration of demand for work and planning and work execution under the scheme. The procedures for implementing IAY are less well-defined and there is a complex system of preparing a wait list of potential beneficiaries and sanctioning of benefits. The project would support development of an operational manual for strengthening implementation of IAY in the state.
• Strengthening systems for outreach and communication for MGNREGS and IAY: A Communications Cell would be established in BRDS to develop a comprehensive communications and mobilization strategy to make rural citizens aware of their rights, know the process by which to access these entitlements, and feel sufficiently empowered to demand these rights. The design and development of awareness campaigns and other communications tools and materials would be provided keeping in mind the high levels of illiteracy among potential beneficiaries and the specific needs of women, persons with disabilities and scheduled castes and tribes. Systems for internal communication within BRDS would also be developed to support an increased focus among government functionaries on responsiveness to citizen needs.
• Strengthening financial management systems and benefit disbursement: The Project would strengthen financial management systems and capacities to support the Department’s ability to obtain and consolidate timely and reliable financial and expenditure information from Panchayats, Blocks and Districts on key centrally financed programs and submit the same to the central Ministry of Rural Development (MoRD). This, combined with timely preparation of annual financial statements and submission of audit reports and utilization certificates to MoRD, will enable timely release of grants. The project would support GoB in contracting accountants and financial management staff at the state, district and block level. In addition to supporting the overall financial management activities of RDD, the state level team will support the development of guidelines on financial management, evaluate and implement options for streamlining the funds flow across various levels, development and management of a consistent financial reporting system based on a uniform program based chart of accounts in TALLY,
14 BRDS is expected to be fully staffed with personnel responsible for implementing and monitoring MGNREGS, financed by, or represented by, the Government of Bihar.
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development of training programs and capacity building of staff at district and block level, overall funds monitoring, auditors’ selection and monitoring of auditors performance; establish systems for resolution of audit paras, support in implementation of e-payments and funds management arrangements with commercial banks. Further, the district level team will facilitate accounting, consolidation of reports, oversight and audit of block units, scheme wise audit for district and blocks, submission of UC and settlement for audit objections, among others. The financial management staff supported by the project at the block level would facilitate scheme wise and unit wise accounting, financial reporting, bank and inter unit reconciliations, and funds management, among others.
• Institutionalizing partnerships: The project would support the institutionalization of partnerships with non-government agencies for joint implementation of MGNREGS and IAY. A Partnerships cell would be established in BRDS to develop policies, operational strategies and systems for partner selection, accreditation, management and performance assessment.15 The cell would identify areas of partnership and provide technical capacity to design, contract and manage pilot partnership projects.16 The Secretary / Principal Secretary, RDD, would approve specific partnership projects up to a specified threshold value. Proposals above the threshold would need to be deliberated and approved by the Society’s General Body (see Annex 3).
• Developing applications for strengthening tracking of selected social protection schemes: Financing for the design and development of a transactions-enabled application for MGNREGS and IAY would be provided. It would also involve the development of operation guidelines with respect to entry and cleaning of legacy data in order to build a program-level complete and accurate database. An e-Governance Cell would be established for program management and oversight of all e-governance initiatives of BRDS and to coordinate with other e-government efforts in the state.
• Bihar State Resident Registry (BSRR): At present, citizen records are stored in multiple
formats across various government agencies, often in manual formats. This leads to fragmented, incomplete and possibly inaccurate information across different databases. The BSRR is envisioned as master database of residents that will eventually be used for beneficiary identification and authentication across select SP programs.17 The project would support the creation of a database built on the Socio-Economic Caste Census (SECC), which is a digital survey currently being carried out nation-wide, including in Bihar, to generate information on a number of socio-economic indicators on households
15 State-level PPP units, such as the one housed in the Bihar Industrial Area Development Authority (BIADA), can help leverage human, administrative and financial resources. In several states, PPP for social development is now starting to be taken up by the PPP cell originally constituted for infrastructure development. However, a small, specialized cell within an implementing agency would ensure greater ownership and allow specific domain expertise to be fully incorporated in the design and management of such partnerships. Depending on the experience of piloting such models and the ability of Bihar’s civil society to participate in such partnerships, this model of engagement could be scaled up and transitioned to a state-level cell. 16 See Annex 6 for details on the extensive work undertaken under the BCB TA on this issue. 17 The BSRR would support interfaces with other identification initiatives in the state and country.
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to generate poverty ranking (the database is currently being authenticated and is expected to be available by the end of 2013).
(ii) Strengthening capacity and performance incentives 7. This activity would support BRDS in defining accountability relationships vertically across levels of government, as well as horizontally between Government and other agencies involved in the delivery of MGNREGS and IAY. Specific support includes:
• Developing an HR policy for BRDS and an effective Performance Management System (PMS): This would contribute towards creating a positive work environment, empowering staff and facilitating their work through appropriate delegation of authority and separation of responsibilities, promoting and rewarding excellence and offering space for individual growth. The PMS would help align incentives for MGNREGS and IAY delivery among staff, contract workers and other agents.
• Strategizing, facilitating and monitoring training: A Training and Capacity Building cell would be set up in BRDS for identifying training requirements and setting up a system for building the capacity of staff, contract workers and other stakeholders (e.g., block and district administration, functionaries of other line departments engaged in MGNREGS and IAY delivery, post office and bank staff, etc.).
(iii) Putting in place monitoring and accountability mechanisms 8. This activity would support BRDS in building capacity for monitoring performance and in setting up appropriate external review mechanisms. An M&E cell would be set up in BRDS to develop a comprehensive M&E strategy for MGNREGS and IAY, build capacity of staff to operate the management information systems, undertake field assessments and promote social audits. The cell would oversee the adoption of the strategy and monitoring tools state-wide. Procedures for dealing with appeals related to MGNREGS, IAY and SECC/BPL Census, in a manner consistent with the state-wide grievance redressal system and program guidelines would also be developed. 9. This activity would also support the evaluation of the impact of reform actions supported by the project. This includes data generation and collection for monitoring SP program outcomes such as awareness, coverage, targeting, and leakage and an evaluation of the project interventions. Data collection would include entail household and village-level information gathering through three rounds of quantitative surveys (baseline, mid-term, and end-term). These surveys would sample households and provide a framework to evaluate the project’s impact on SP program outcomes, as well as differential impacts by gender, caste and disability to inform future program design and reforms. In addition to household surveys, this sub-component would support user satisfaction surveys for the innovations piloted by this project. Sub-Component 1.2: Strengthening systems and capacity for social pensions and social care service delivery (US$8.5 million total, of which US$5.9 million IDA financing): 10. This sub-component would support SSUPSW in creating an enabling policy environment to address the needs of persons with disabilities, widows and older persons. It would also provide
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support for strengthening systems and capacity for the effective delivery of social pensions and social care services. This would take the form of consultancy services as well as specialized cells, for instance for managing services for older persons, widows and persons with disabilities, training, managing e-governance initiatives, partnerships with non-government agencies, advocacy and communications, monitoring and evaluation, among others. (i) Promoting an enabling policy environment 11. This activity would set up specialized cells for Services for Persons with Disabilities and Services for Older Persons and Widows in SSUPSW to develop policies and programs for these groups, given that specific policies for these groups are in their infancy (or non-existent), and as programs are unable to provide the necessary coverage. This would include support for conducting a situation assessment to identify needs and gaps in existing service provisions, defining standards of care, and developing other relevant guidelines for provision of institutional and non-institutional care, including models for family and community based rehabilitation (CBR). (ii) Streamlining delivery mechanisms 12. This activity would support SSUPSW in reviewing existing processes for social pensions and social care to develop simplified and standardized program processes for outreach and communications, identification and enrolment of beneficiaries, and disbursement of benefits, as well as in developing applications and institutionalizing partnerships for delivering social pensions and social care services. This process restructuring would emphasis role allocation between government functionaries, private service providers, NGOs and CBOs. Specific support includes: • Developing operational manuals and procedures: In order to deliver more reliable,
standardized, and time-bound services, program level processes need to be examined thoroughly and be re-engineered, if necessary, to improve productivity and accountability. The specialized cells for older persons and widows and persons with disabilities would develop simplified and transparent procedures for identification and enrolment of target groups (including disability certification), disbursement of benefit payments, and grievance redressal.
• Strengthening systems for advocacy, outreach and communication: An Advocacy and Communications cell would be established in SSUPSW to provide support along two dimensions: (i) advocate the rights of persons with disabilities, widows and older persons among policy makers, government officials, functionaries, communities and other stakeholders; and (ii) help raise awareness among the target group and caregivers on their rights and entitlements under national and state programs, as well as on issues related to self-care, preventive health care, disease management, and productive ageing. This cell would develop a comprehensive advocacy and communications strategy, facilitate the design and development of advocacy materials, awareness campaigns and other communications materials, keeping in mind the high levels of illiteracy among potential beneficiaries and the specific needs of women, persons with disabilities, older persons, widows and scheduled castes. Systems for internal communication within SSUPSW would also be developed in
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order to bring about behavioral change among government functionaries and reinforce the re-orientation of delivery mechanisms to be more responsive to the needs of these target groups.
• Institutionalizing funds management and e-payments of pension benefits: SSUPSW will also implement innovative systems for funds management, including the potential for electronic funds transfer and monitoring across the state. At a later stage, based on the development and population of a beneficiary database, e-payments of pensions will be piloted and scaled up using suitable fund management systems.
• Management Information Systems for social pensions and social care services: This would support the design and implementation of a comprehensive MIS, including: (i) setting up an electronic registry of persons with disabilities and older persons; (ii) developing a beneficiary database of persons who are currently receiving social pensions; and (iii) design and development of transactions-enabled applications for social pensions and social care services.
• Institutionalizing partnerships: This would support the institutionalization of partnerships with non-government agencies for advocacy and action research for older persons, widows and persons with disabilities. It would also promote partnerships with non-government agencies for delivering social care services in a manner consistent with the defined standards of care and regulations. A Partnerships cell would be established in SSUPSW to develop policies, operational strategies and systems for partner selection, accreditation, management and performance assessment. The Secretary/Principal Secretary, DoSW, would approve specific partnership proposals up to a specified threshold value. Proposals above the threshold would need to be deliberated and approved by the Society’s General Body (see Annex 3).
(iii) Strengthening capacity and performance incentives 13. This activity would support SSUPSW in defining accountability relationships vertically across levels of government, as well as horizontally between government and other agencies involved in delivery of social pensions and social care services. Specific support includes:
• Developing an HR policy for SSUPSW and an effective Performance Management System (PMS): This would include support for the design, development and implementation of HR policies and procedures and an effective performance management system to align incentives for delivery of social pensions and social care services among staff and contract workers.
• Strategizing, facilitating and monitoring training: A Training and Capacity Building cell would be set up in SSUPSW for undertaking regular assessments of the training needs, developing training strategy and plans, facilitating and monitoring training delivery. The cell would also develop standardized training and learning materials on core thematic areas pertaining to social pensions, social care and rehabilitation services. This would be primarily focused on the meeting the needs of the DoSW and SSUPSW staff at the state and district level, the Buniyad Center staff and community-based facilitators (see Component 2). However, given the scarcity of qualified personnel for social care service provision, this would also help introduce courses in relevant academic institutions at the
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state and national levels to expand the pool of technical professionals such as therapists, counselors, technicians, etc.
(iv) Setting up monitoring and accountability mechanisms 14. This activity would support SSUPSW in building capacity for monitoring performance and in setting up appropriate external review mechanisms. An M&E cell would be set up in SSUPSW to develop a comprehensive M&E strategy for social pensions, social care services and relevant state schemes (e.g., BSIOPS), build capacity of staff to operate the management information system, undertake field assessments and promote social audits. The cell would facilitate the adoption of the strategy and monitoring tools. This cell would also develop procedures for dealing with appeals related to social pensions and social care services, in a manner consistent with the state-wide grievance redressal system and program guidelines. Component 2: Strengthening Outreach and Social Protection Service Delivery (US$87.1 million total, of which US$61.0 million IDA financing) 15. This component would strengthen service provision by providing state-wide social care services and outreach services through the “Buniyad Centers”. The Project would support state – wide coverage of social care services by establishing 101 Social Care Service Centers in all sub-divisions of the state. This component will also support small-scale pilots to be financed from an “Innovation Window” which would test innovative proposals to further improve SP services. These pilots are expected to be operational in the second/third year of project implementation in order to provide adequate time for their design, set-up and operation. In particular, the focus in the first year of the project would be on streamlining processes and capacity building in order to ensure clear allocation of functions and strong institutional oversight for effective functioning of these pilots. Sub-Component 2.1: Establish and Strengthen Social Care Services (US$69.5 million total, of which US$48.6 million IDA financing) 16. This sub-component would support the establishment of the social care service centers (referred to as Buniyad Centers) to provide high quality care, support and rehabilitation services for older persons, widows and persons with disabilities in 101 sub-divisions across the state.18 From among the 101 sub-divisional centers, 38 Buniyad Centers located in district headquarters would function as the District level Buniyad Center and will have additional manpower and infrastructure to coordinate and supervise all sub-divisional centers in their respective district in addition to catering to beneficiaries in the sub-division where the District level centers are located.19 All Centers would be equipped with specialized diagnostic and therapeutic equipment and the District level Centers will also have mobile outreach infrastructure to provide emergency services. 17. Provision of social care and rehabilitation services to these groups require specialized service provision, yet government interventions in this regard are limited. The Buniyad Centers provide an opportunity to extend the provisions of the draft Bihar State Integrated Older Persons 18 Sub-divisions cover approximately 4 to 5 blocks. 19 Preliminary estimates for these Centers is approximately 5000 sq. ft. for the District level Buniyad Centers and 4000 sq. ft. for the Sub-divisional level Buniyad Centers.
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Scheme (BSIOPS) scheme in two ways: by exploring the potential for converging services for older persons and persons with disabilities; and by promoting greater access through service provision closer to the target population.20
18. In the first year of the Project, the design, operational guidelines and service standards of the Buniyad Centers would be developed, based on a detailed assessment of the demand for social care services across the state. At the end of the first year of the project, a number of centers will be started in existing government buildings to pilot the model of service delivery and ensure that any changes to the operational model can be incorporated in guidelines and implemented before the roll-out of services across the state. After buildings are constructed in each of the 101 locations, the staff and equipment of the centers operating in existing buildings will be transferred to continue their operations in the new premises. 19. The Centers would follow a case management process through which individuals would either be provided the appropriate services either within the Center or through a pre-identified referral network (see Figure 2.1). The services offered at the Buniyad Centers would include basic care and support, legal aid, therapy, counseling and rehabilitation, emergency outreach services through a state level toll free telephone helpline service and district level response teams, assessment and disability determination, provision of assistive devices, etc. The referral network would include potential government and non-government service providers and institutions such as, Primary/Community Health Centers (PHCs/CHCs) and District Hospitals under National Rural Health Mission (NRHM), depending on the need and type of health care services required by the client.
Figure 2.1: Integrated service provision at the Buniyad Centers
OPs – Older Persons; PWDs – Persons with Disabilities; PHC – Primary Health Center; CHC – Community Health Center; DDRC – District Disability Rehabilitation Center; CRC – Composite Resource Center; ADSS – Assistant Director Social Security; CBOs – Community Based Organizations
20 BSIOPS provides for social care service centers for older persons at the sub-division level.
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Sub-Component 2.2: Pilot Models in Social Protection Delivery (US$12.7 million total, of which US$8.9 million IDA financing) 20. Under this sub-component, the project would support strengthening access and outreach of select social protection services in the state for older persons, widows and persons with disabilities, through: (i) Establishing mobile outreach and therapy services: 21. Since the Buniyad Centers would be located at the sub-divisional / district headquarters, the most vulnerable of the target beneficiary groups might not be able to travel to these Centers to access services. With the aim of improving coverage and outreach of care and support services for the persons with disabilities, older persons and widows, 38 fully equipped mobile outreach and therapy units would be procured under the project. The mobile therapy service van would be fully equipped with diagnostic, therapeutic equipment and audio – visual systems. The vans would be located at the District level Buniyad Centers and would provide direct care and support services, such as assessment and disability determination, therapeutic and counseling services, in all the blocks of the district on a roster basis in close consultation with the respective sub-divisional Buniyad Centers. The vans would also undertake awareness generation activities for the target beneficiary groups. (ii) Community-based rehabilitation (CBR) 22. Poor awareness, lack of empowerment and mobility may constrain access of older persons, persons with disabilities and widows to social care and other services as well as inhibit active participation in their communities. CBR is a strategy within general community development for the rehabilitation, equalization of opportunities and social inclusion of people with disabilities and other vulnerable groups by making optimum use of local resources. This sub-component would extend the provisions under the proposed BSIOPS state scheme to pilot facilitator-led home rehabilitation and CBR for the poorest and most vulnerable individuals among both older persons and widows and persons with disabilities. The Project would partner with existing community level organizations to identify local facilitators, who would be trained to serve as independent service providers at the community level for the target beneficiary groups. The Project would support training and capacity building of these Community Facilitators to enable them to provide services and to promote access to more specialized services as required through a referral network with the Buniyad Centers, health centers and other service providers. This would include, for example, practical assistance for managing contact with external agencies, support in applying for social assistance, promoting access to health and social care services by facilitating regular health checkups, and health-related home improvements. Sub-Component 2.3: Innovation window (US$4.9 million total, of which US$3.4 million IDA financing) 23. This sub-component would finance small-scale pilots that contribute towards the project objectives. The pilots would be proposed by the district units of the two Societies with the
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objective of testing innovative service delivery mechanisms for increasing community level outreach for effective delivery of social protection programs and services at the local level; enhancing promotion and participation of stakeholders and project beneficiaries; and providing social protection for the poor and vulnerable during emergencies and disasters. The innovation window would promote learning from existing good practices across India and design appropriate models for Bihar, for eventual streamlining into program implementation. This sub-component would be initiated in the third year of the project and would finance eligible expenditures (including goods, services and operating costs) for the pilots.
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ANNEX 3: IMPLEMENTATION ARRANGEMENTS
1. Both the Rural Development Department (RDD) and Department of Social Welfare (DoSW) work with specifically mandated entities which will function as the project implementation agencies for the purpose of the BISPS Project. Respectively, the Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW) will serve as the focal points for day-to-day coordination and management of activities under the project as per Government of Bihar and IDA policies and procedures. The Chief Executive Officer (CEO) and Executive Committee of both State Societies headed by their respective Secretary (i.e. of RDD and SSUPSW) would provide guidance during Project implementation.
1. Institutional arrangements State Level Entities Oversight arrangements 2. The Project would rely on the existing institutional mechanisms for management oversight and streamlined coordination between the activities of both Societies. The office of the Development Commissioner (DC) of the Government of Bihar, in his ex-officio position as the chairperson of the General Body of BRDS and of SSUPSW would play the coordinating and oversight role. The DC also holds similar office in other societies (such as for the Bihar Panchayat Strengthening Project). The DC and the societies’ General Bodies would provide overall policy advice and oversight and ensure coordination between the implementing agencies for effective implementation of the Project.
Bihar Rural Development Society (BRDS) 3. BRDS has been set up as an entity registered under the Societies Registration Act, 1860, to help guide RDD in the implementation of rural development schemes, and is primarily tasked with management of the MGNREGS implementation and monitoring. The Society is committed to eradicating poverty, promoting sustainable development and productive employment, as well as fostering social justice for the rural poor population.
4. Project support to the Society will provide financing for program management, training, establishment of partnerships, outreach and awareness, development of policy and guidelines, applications for RDD programs and services, etc. as part of the capacity and systems strengthening activities for BRDS, i.e. under Sub-Component 1.1. In addition, the Project would finance goods, services and operating costs for small-scale pilots under the innovation window (Sub-Component 2.3).
5. The Executive Committee of BRDS has the Secretary, RDD, as the President, providing an effective link with the Department. BRDS is headed by a Chief Executive Officer (CEO), a position held by the IAS officer appointed as the state’s MGNREGS Commissioner who provides management oversight of daily business activities, including those financed by the Project. In order to strengthen management oversight of daily business activities, including
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those financed by the Project, BRDS will also hired the services of a Deputy Project Director. The Society is expected to be fully staffed with personnel responsible for implementing and monitoring MGNREGS, financed by, or represented by, the Government of Bihar. Bank support would finance remaining contract staff involved in the implementation and monitoring of the Project, thus utilizing mandated positions in BRDS rather than creating time-bound Project-specific positions. The Society would also hire a number of technical agencies to support functions such as Financial Management and e-Governance management, and Bank support would finance such selected contractual service providers in agreement with BRDS. Key positions and service providers are shown in table 3.1 below:
Table 3.1: Key Positions and Service Providers
Function Position Service Providers (contractual)
Senior Management President (1) – Secretary, RDD Chief Executive Officer (1) Project Coordinator / Deputy Project Director BISPS
-
Social Audits, M&E and Learning
Director (1) Manager, Independent Evaluation, Learning & Research (1) Coordinator, Social Audit / Grievance Redressal Committee (1) Ombudsmen Coordinator / Establishment (1) Team Members, M&E and Learning (4)* Program Executives (2) Assistants (10)
-
IAY
Program Officer (1) BPL Coordinator (1) MIS Team Members (2) Program Executives (2) Assistants (2)
-
MGNREGS
Regional Program Officers (3) MIS Team (1) Program Executives (4) Assistants (3)
Director (1) * IT Manager (1) MIS Expert (1) * Program Executive (1)* IT Team Member (1) IT Manager cum MIS Expert (38) IT Assistants (4)
e-Governance Agency *
* Project-funded individuals and agencies; all others financed by, or on deputation from, Government of Bihar
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State Society for Ultra-Poor and Social Welfare (SSUPSW) 6. SSUPSW has been established under the Societies Registration Act, 1860, in order to implement and monitor DoSW programs and services. The Society has been set up with a view towards creating an enabling policy environment for the welfare of DoSW’s target beneficiaries, planning and managing policy actions, and supporting DoSW and its three Directorates in program review and institutional strengthening activities.
7. Project funding would be primarily for staffing and training costs, but also other technical assistance (as similarly provided for BRDS) as part of the capacity and systems strengthening activities under Sub-Component 1.2. The social care service centers to be operated at the sub-division level by SSUPSW would be overseen by the monitoring units in the designated district level centers, which would also ensure that service in the Buniyad centers adheres to defined service standards. SSUPSW would be responsible for the overall oversight of construction of 101 Buniyad Centers and will hire a civil engineer for this purpose. Procurement for the construction of the Buniyad centers, as well as architectural design, quality control and supervision, will be carried out by the Bihar State Building Construction Corporation Limited (BSBCCL), which will sign a detailed Memorandum of Understanding (MOU) with SSUPSW. As with BRDS, the Bank would also finance goods, services and operating costs for small-scale pilots under the innovation window (Sub-Component 2.3).
8. The Society is headed by a Chief Executive Officer (CEO), a position in which an IAS officer would be appointed as per Government sanction. At present, the position is held by Director, Integrated Child Development Services (ICDS). Besides, in order to ensure day to day implementation and supervision of the BISPS Project, the Department of Social Welfare has designated the Director, Directorate of Social Welfare, an IAS officer as the Project Director. In order to strengthen management oversight of daily business activities, including those financed by the Project, SSUPSW has hired the services of a Deputy CEO (DCEO). The DCEO would also provide the direct linkage to the district-level monitoring units based in the district level Buniyad Centers, which in turn would manage the SSUPSW sub-division level centers. The Society’s organogram has recently been revised and formally adopted, keeping in mind its long term development strategy, as well as to provide a functional structure for the purposes of the Project without delinking the two imperatives. The staffing structure is shown in table 3.2 below:
Older Persons Services State Program Manager (1) * Program Manager (2) * Program Associate (1) *
Persons-With-Disabilities Services
State Program Manager (1) * Program Manager (2) *
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Function Position Program Associate (1) *
Communication, Policy & Research
State Program Manager (1) * Program Manager (1) * Program Associate (1) *
Monitoring & Evaluation
State Program Manager (1) * Program Manager, M&E and MIS (2) * Program Associates (2) * Civil Engineer (1) *
e-Governance & Partnership Development
State Program Manager (1) * Program Manager (1) * Program Associate (1) *
Training State Program Manager (1) * Program Manager (1) * Program Associate (1) *
* Project-funded individuals
District Level Entities 9. In line with the vision of strengthening existing institutions and systems of the Government, the Project would support BRDS and SSUPSWS in setting up and strengthening their respective District Units to implement and monitor Project activities, and serve as an interface between the state, sub- division and block levels. This would ensure that sustainable and technically equipped units are established for effective implementation of social protection programs. In addition, the District Magistrate and the District Development Commissioner (reporting to RDD) are an integral part of the delivery chain for the programs implemented by BRDS and SSUPSW and would play a critical role in the implementation of the systemic reforms and pilots.
BRDS District Units 10. At the district-level, BRDS has District Program Management Teams (DPMT) which would support the Society in the implementation of RDD programs and services. These DPMT would also act as the administrative hub for the project activities in their respective districts. These units would primarily be Government financed, with staff directly recruited by BRDS, while incremental staff required for Project implementation and monitoring would be financed by the Bank. Particularly, for the financial management strengthening and internal pre-audit functions supported by the Project, a district level team of six personnel would be provided. This district level team would function in close collaboration with the District Rural Development Agency (DRDA) and the DPMT. Other personnel may be deputed by the Society or recruited on a contractual basis. The incremental staff supported under the Project at the District Units of BRDS would include: one District Finance Manager, one District Finance Officer, one District Audit and Accounts Officer, one Audit Officer, one Accounts Assistant, and one Audit Assistant.
SSUPSW District Units 11. The District level Buniyad Centers will serve as the SSUPSW District Units and would support the Society in the implementation of DoSW programs, provide services for older persons, widows and persons-with-disabilities at the district, manage and monitor the sub-divisional level centers, and coordinate the duties of the mobile outreach and therapy units. These District Units would function under the overall supervision of the Assistant Director Social Security (ADSS), DoSW. Led by a District Program Manager cum Center Manager, the District Units would report to the ADSS at the district level and the Deputy CEO of SSUPSW at the state level. Other personnel may be deputed by the Society or recruited on a contractual
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basis. The Project would support additional staff in the District level Buniyad Centers for discharging the duties of a District Unit responsible for coordination and supervision of sub – division level Social Care Service Centers as well as other project activities. The additional staff positions would include two Program Officers (Coordination & Supervision) and one Accountant.
Block Level Entities 12. The Block Development Offices (BDO), of the Government of Bihar, are responsible for overseeing all rural development and social protection schemes, performing all other administrative, revenue and law and order functions at the block. The BDO would play a critical role in the implementation and supervision of activities proposed under this Project. The financial management staff supported by the project at the block level would work under the supervision and guidance of the BDO to facilitate scheme wise and unit wise accounting, financial reporting, bank and inter unit reconciliations, funds management, among others. The BDO would also coordinate with the relevant Project personnel at the district level.
13. The diagram below shows the various units of the two implementing agencies with their reporting channels.
Figure 3.1. Institutional Arrangements for the Project
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2. Financial Management and Disbursements
14. The project has adequate financial management systems in place to account for and report on project expenditures.
15. Two special-purpose vehicles, BRDS and SSUPSW – both being societies registered under the Societies Registration Act, will be responsible for implementation and all financial management aspects under the project. In addition, SSUPSW will entrust the work pertaining to construction of the Buniyad Centers and renovation of existing GoB building identified for use as Buniyad Centers to BSBCCL, a government owned corporation registered under Companies Act. Their respective Memoranda of Association define the roles and responsibilities of the General Body, the Executive Committee and the staff. The project financial management manuals supported by administrative rules and delegation of powers define the detailed processes related to project financial management.
16. Budget & funds Flow: The funds for the project will be budgeted under two budget lines in the State budget: one each for the BRDS and SSUPSW. They will draw funds from the state budget on a quarterly basis based on their approved Annual Work Plans and deposit funds in project specific bank accounts with commercial banks. All fund transfers from BDRS and SSUPSW to district units will be through regular banking channels using the mechanism of e-transfers. A centralized fund management system will be agreed with a commercial bank (parent-child zero balance account) to facilitate payments at state including BSBCCL, district and facilities level (i.e., Buniyad centers).The procurement and payment for capital equipment (e.g., mobile vans, equipment for Buniyad centers) will be centralized at the state level at SSUPSW. For decentralized expenditures (e.g., operating cost including salary at Buniyad centers and civil work payments at BSBCCL), the concept of zero balance parent child account will be put in place whereby limits will be allocated to each child account, based on which payments will be released. This concept will facilitate fund handling and monitoring of payments made at decentralized locations. The Buniyad centers will be operated and managed by the SSUPW. The salaries of staff at the centers will be paid from the district units, while the Buniyad centers will operate on an imprest basis for meeting monthly operating costs and submit the bills/ supporting documents the 38 district units. These 38 district units will be the accounting centers for the 101 Buniyad centers (including the 38 operational at the district level). All fund transfers from BRDS/SSUPSW to district units will be through regular banking channels
17. Accounting and financial reporting: The two societies will use an off-the-shelf accounting system (TALLY) for project accounting and financial reporting. The system currently implemented at the state level will be extended to the district units of BRDS and SSUPSW. The buildings for the service facilities (Buniyad centers) will be constructed by SSUPSW (with support of the Bihar State Building Construction Corporation Limited) and SSUPSW will also be responsible for the actual operations of these centers at the district and sub-division levels. These facilities will operate on an imprest basis and submit monthly expenditure report with supporting documents to the district units. A uniform chart of accounts has been developed to capture the project components and activities and the accounts of the various offices will be consolidated to generate quarterly and annual financial reports. BSBCCL will submit monthly extract of the cash book for payments made under the project, which will
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be used to update the expenditures (contract-wise) in the TALLY system installed SSUPSW state office, while the supporting documents will remain with the respective divisions of BSBCCL. Based on this the two societies will prepare individual IUFRs and submit the same independently to the Bank on a quarterly basis.
18. Staffing: The finance function in BRDS and SSUPSW will be headed by a Financial Controller/Director (Finance) respectively. They will have overall responsibility for financial management (fiduciary aspects) and will be supported by 3-4 finance and accounts support staff at the state level. Each district will have a district finance manager and an accountant. Both BRDS and SSUPSW have recruited finance specialists at the state level.
19. Internal Control & internal audit: BDRS and SSUPSW have their own general body and executive committee. The internal control frameworks of the two societies are being elaborated in the administrative manual, delegation of powers and the financial management manual. The societies will engage firms of chartered accountants to conduct quarterly internal audit of the state, district and facilities, on a sample basis, with the objective of providing the project management with timely fiduciary assurance. The ToRs included in the manual will be agreed with the Bank.
20. External Audit: BRDS and SSUPSW will engage a firm(s) of chartered accountants, acceptable to the Bank to audit and certify the annual financial statements of the project and the society (in case funds from other sources are also received by the society). The ToRs for the audit are documented in the FM manuals. The audits would be conducted on an annual basis and the audit reports would be submitted to the Bank within six months of the close of each financial year. The following audit reports will be monitored in ARCS:
Implementing
Agency
Audit Report Auditors Date
BRDS Audit Report on the Project Financial Statements
Firm of Chartered Accountants
30th Sept each year
SSUPSW Audit Report on the Project Financial Statements
Firm of Chartered Accountants
DEA/GoI Designated Account Comptroller & Auditor General of India
21. The audited project financial statements will be made publically available by the project in line with the disclosure policy of the Bank.
22. Disbursements and Designated Account: Applicable disbursement methods would be Advance and Reimbursement. IDA funds may be advanced into a segregated Designated Account (DA) maintained in USD at Reserve Bank of India, Mumbai, by Controller of Aid Accounts and Audit, GoI. The ceiling for advances into the DA will be US$8,000,000. The initial advance amount into the Designated Account and subsequent increases up to the established ceiling will be based on the needs of the project and will be made at the request of project authorities through GOI. Withdrawals from the DA will be made on the basis of reported expenditure in IUFRs by BRDS and SSUPSW. As per standard Center- State mechanism of Additional Central Assistance, GoI will transfer the funds from the Bank to GoB
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on a back to back basis. Applications for requesting Advances into DA and reporting expenditures paid from DA would be prepared by Controller of Aid Accounts and Audit, GoI. The recipient may also request for reimbursement of the project expenditures pre-financed by its own financing resources on the basis of IUFRs.
23. Retroactive Financing: Project expenditures incurred one year prior to FA signing and procured following Bank procurement guidelines will be eligible for retroactive financing up to a maximum of SDR2 million.
3. Procurement Management
24. Procurement for the proposed Project would be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers” (January 2011) [Procurement Guidelines]; “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” (January 2011)” [Consultancy Guidelines]; and the provisions stipulated in the Legal Agreement.
25. E-procurement System. The Government of Bihar is using an e-procurement system for all its procurements above the estimated value of Rs. 1 million as mandated by state government circulars. The e-procurement system assessment was carried out against the Multilateral Development Banks (MDB) requirements, and a draft assessment report was shared with the Government (as part of project preparation of Bihar Kosi Project), which has identified some action areas for compliance which need to be completed prior to acceptance of the system for procurement by the Bank. The Bank will be able to accept the use of e-procurement system for procurements under the project only once the action areas identified have been addressed and completed.
26. The Project comprises of two components namely, Strengthening Social Protection Systems and Capacity (Component 1) and Strengthening Outreach in Social Protection Service Delivery (Component 2). Both the components will involve procurement of works, goods, non-consultancy and consultancy services.
Procurement Capacity and Risk Assessment of Implementing Agencies 27. The Procurement activities will be carried out by the two implementing agencies namely Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW) and the Bihar State Building Corporation Limited (BSBCCL) would be responsible for the procurement of all the proposed civil works under an MOU signed with SSUPSW. Procurement under the project would be conducted only at State level and no decentralized procurement is envisaged. 28. Procurement capacity assessment of the three agencies was carried out as part of project preparation. The agencies have no previous experience in implementing projects following Bank Procurement Guidelines. The procurement capacity of the two societies is noted to be
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very weak. BSBCCL is carrying out procurement of mostly works following the state government rules and regulations.
29. The Procurement Risk Assessment and Management System (PRAMS) had been carried out and procurement risk for the project is assessed as “High”. A state-wide regulatory system limited to Financial Management Rules without detailing of methods, conditions, systems and service levels for procurement; lack of dedicated procurement staff or appropriate training and capacity building for other technical and administration staff on procurement requirements; varied and inconsistent levels of procurement administration, openness, clear and transparent evaluation, selection and award process; poor or limited participation in competition by bidding community; non-availability of procurement data and a dispute resolution mechanism makes the procurement management a High-risk proposition at department level.
30. The following measures were agreed to mitigate the risks: A procurement manual has been developed by both the agencies with formats to guide
procurement and threshold based methods for goods, works and services. The manual details the proposed systems, delegated authorities along with capacity development needs and SBDs, various protocols and formats to be used. The manual has been reviewed to ensure that Bank’s concerns for transparency, fairness, economy and efficiency are met.
To enhance its capacity BRDS and SSUPSW will each hire an Individual Procurement Specialist at the state level.
Procurement staff of the corporation would undergo training of World Bank procurement procedures.
Transfer of Procurement staff after they have undergone training is a possibility. The implementing agencies will endeavor that the trained procurement staff will normally not be transferred during the project’s life.
A Complaints and Dispute Resolution Mechanism has been specified in the procurement manual.
A half yearly report of all complaints received and action taken will be submitted to the Project Director, for review by implementing agencies. This will also be submitted to the Bank and disclosed in the public domain.
Implementing agencies will be trained in the beginning of the project on record keeping and documentation.
The Bank will provide close monitoring of tenders/selections and during post review. All specific procurement notices will be published in the project website in addition to a
national newspaper, the procurement plan will be published on the website, and there is agreement to disclose all contract awards of NCB on the implementing agencies websites, as well as publish a list of purchase orders/contracts placed every month.
There will be a quarterly report of all the ongoing contracts: a detailed status report including contract management issues such as delays, payments, etc., will be submitted to the Project Director.
Supervision or third party quality assurance consultants for civil works will be hired. Technical individual consultants in societies will be hired.
After these mitigation measures, the overall procurement risk is assessed as ‘Substantial.’
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31. Bihar State Building Corporation Limited (BSBCCL): Based on the discussion and information provided, the procurement processes followed by the BSBCCL have deviations in comparison with Bank’s Procurement Guidelines. Some of these are: (i) two envelop system for procurement estimated to cost over INR 4 Million (approximately USD 80,000), (ii) percentage contracts instead of item rate contracts, (iii) rejection of bids which are lower than 15% of the estimate. 32. The standard bidding document for works being used for works estimated to cost more than INR 20 million was reviewed and noted that the document is similar to the NCB document agreed with GOI for NCB, with modifications to a few provisions such as: (i) the post qualification criteria; (ii) formula for bid capacity assessment; (iii) Maximum Liquidated Damages is 5 % instead of 10 %; (iv) the bid document has provision to supply material by the employer instead of having a single responsibility contract with the contractor; and (v) lack of provision for advance payment.
33. The Corporation has been carrying out building works procurements and will be responsible for carrying out works procurement under the project under an MOU signed with SSUPSW. Bank guidelines will be followed by the Corporation for all procurement under the Bank funded project.
34. All records pertaining to award of tenders, including bid notification, register pertaining to sale and receipt of bids, bid opening minutes, Bid Evaluation Reports and all correspondence pertaining to bid evaluation, communication sent to/with the World Bank in the process, bid securities, approval of invitation/evaluation of bids would be maintained in the respective agencies in electronic and physical files. For each contract, a separate file will be maintained.
Procurement Plan 35. For contracts to be financed by the Bank, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time-frame are agreed between the Borrower and the Bank in the procurement plan. All the civil works planned to be taken up under the project have been identified. The goods and consultancy services have also been identified. The procurement plan for the first 18 months of project implementation has been prepared and is enclosed as Appendix-1 to this Annex 3. The procurement plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. It will also be available on the Society / corporation website and on the Bank’s external website. The use of Procurement monitoring software (SEPA) for monitoring the Procurement Plan would be tried out. The following major procurements are envisaged under the project: 36. Procurement of works: Works procured under this project would include construction of approximately 101 buildings for Social Care Service Centers (referred to as Buniyad Centers) having an estimated cost of INR 8.5 million for each building. A majority of these works packages will be procured following National Competitive Bidding. However, a few of the
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packages may be procured following the shopping procedure. The procurement of civil works is not likely to involve any ICB. The procurement activities for these works would be carried out by BSBCCL. The BSBCCL would hire a Design and Supervision consultant for preparation of designs and subsequently for supervision of the Buniyad buildings. The Standard Bidding Documents of the Bank as agreed with GoI task force (as amended from time to time) for all procurement under NCB will be used. There may be a requirement for minor civil works for renovation / repairs of select government buildings identified for housing temporary centers for providing services during the initial project period. 37. Procurement of Goods and non-consulting services: Procurement of Goods for the proposed project will include the purchase of mobile therapy vans, therapeutic equipment, diagnostic equipment, office equipment such as computers, software, lab equipment, furniture, etc. While some software being proprietary in nature will be procured by direct contracting, other goods and software will be procured by ICB, NCB, and Shopping methods. Framework Agreements using DGS&D rate contracts can be used to procure goods up to the NCB threshold subject to incorporation of right to audit and Fraud & Corruption clauses. The Standard Bidding documents of the Bank as agreed with GoI task force (as amended from time to time) for all procurement under NCB will be used. For ICB contracts, the World Bank’s latest Standard Bidding Documents (SBDs) will be used.
38. For the National Competitive Bidding (NCB) method for procurement of goods and works, the value of thresholds will be conducted in accordance with paragraph 3.3 and 3.4 of the World Bank Procurement Guidelines and the additional provisions as agreed with the GOI task force and detailed in the Procurement Plan.
39. Domestic Preference: The provisions of paragraphs 2.55 and 2.56 of the Procurement Guidelines, providing for domestic preference in the evaluation of bids is not applicable. 40. Selection of Consultants: The project includes hiring of a number of consultancy services as indicated in the procurement plan. For selection of Consultants for providing services, the project will use Quality and Cost Based Selection (QCBS), Quality Based Selection (QBS), Selection based on Consultants’ Qualification, Fixed Budget Selection, Least Cost Selection, Single Source Selection, and Selection of Individual Consultants as appropriate, subject to approval by the Bank. The Bank’s Standard Request for Proposal Document will be used for Selection/ hiring of all consultancy services to be procured under the Project. The short list of consultants for services estimated to cost less than US$800,000 equivalent per contract may be comprised entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
41. Procurement method thresholds and Prior-Review thresholds: The thresholds and methods of Procurement Decisions subject to Prior Review by the Bank are indicated in the procurement plan attached in Appendix 1. The thresholds are based on the procurement capacity assessment. The thresholds will be reviewed and updated in case of changes in procurement capacity during the life of the project.
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42. Disclosure: The following documents shall be disclosed in the Societies / Ministries websites [and until the website is ready, in the notice boards]: (i) procurement plan and updates, (ii) invitation for bids for goods and works for all ICB and NCB contracts, (iii) request for expression of interest for selection/hiring of consulting services, (iv) contract awards of goods and works procured following ICB/NCB procedures, (v) list of contracts/purchase orders placed by IAs and BAPEPS following shopping procedure on quarterly basis, (vi) short list of consultants, (vii) contract award of all consultancy services, (viii) list of contracts following DC or CQS or SSS on a quarterly basis, and (xi) action taken report on the complaints received on a half yearly basis.
43. The following details shall be sent to the Bank for publishing in the World bank external Website and UNDB: (a) invitation for bids for procurement of goods and works using ICB procedures, (b) request for expression of interest for consulting services with estimated cost more than $300,000, (c) contract award details of all procurement of goods and works using ICB procedure, (d) contract award details of all consultancy services with estimated cost more than $300,000, and (e) list of contracts/purchase orders placed following SSS or CQS or DC procedures on a quarterly basis.
44. Further the implementing agencies will also publish in their websites, any information required under the provisions of suo moto disclosure as specified by the Right to Information Act.
45. Complaint Handling Mechanism: To deal with the procurement complaints received by the IAs, a complaint handling mechanism will be developed at an appropriate level. On receipt of complaints, immediate action will be initiated to redress the grievances. All complaints will be dealt at levels higher than that of the level at which the procurement process was undertaken. Any complaint received will be forwarded to the Bank for information and the Bank will be kept informed after the complaint is redressed. 46. Frequency of Procurement Supervision. Given the large number of contracts, and the general risks involved, a minimum of two missions in a year each at an interval of six months are envisaged for procurement supervision of the project. In addition, the Bank will also carry out an annual ex-post review of procurement that falls below the prior review threshold. Bank will also carry out small thematic and focused Mission depending on the need and as required with agreement from the Project.
4. Environmental and Social Safeguards
47. The project involves building capacity of state level institutions (BRDS of RDD and SSUPSW of DoSW) and extending the delivery of social care services. The project activity that is likely to cause limited environmental impact is the construction of about 101 sub-division level Buniyad Centers (social care service Centers for older persons, widows and for persons with disabilities). The impact is limited as the Buniyad Centers have a relatively small demand for land (approximately 4000-5000 sft) and will not involve any change in land use (the Service Centers will be located on government land).
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48. The following environmental impacts may result due to direct interventions from the proposed investments under the project: (a) impacts related to inappropriate site selection and design of Buniyad Centers (leading to sub-optimal access, ventilation, drainage, sanitation, loss of trees.); (b) construction related impacts (such as worker and public safety issues; improper management of borrow areas and debris/waste material) and; (c) impacts related to management of Service Centres (inadequate water and sanitation facilities, noise and air pollution from generators, poor waste management and building maintenance). Civil works may involve ‘chance finds’ at work sites may need to be managed by incorporating appropriate provisions in the bidding/contract documents.
49. By strengthening delivery mechanisms for MGNREGS and IAY, the project is expected to contribute to an increased uptake of these programs, and hence to their environmental impact, both positive and negative. Certain environmental impacts related to MGNREGS works (such as change in land use, poor drainage, abandoned borrow pits, loss of trees) and impacts related to IAY housing (such as poor ventilation, indoor air pollution, lack of sanitation facilities, risk from AC roofing sheets) also need to be considered as the project seeks to strengthen delivery mechanisms and improving capacity for such programs. In addition, MGNREGS involves work be taking up on forest land for afforestation and tree plantation, which may involve reliance on chemical pesticides, and water conservation or rural road construction works may also have some impact on forests. While direct physical interventions are not envisaged under this project, addressing/mainstreaming sustainable environmental dimensions into institutional strengthening activities/actions (such as improving operational procedures/manuals) for MGNREGS and IAY would help in improving service delivery and in attaining the intended project objectives. As the project is not likely to have any significant adverse and/or irreversible environmental impacts, it has been classified as belonging to environmental screening category B.
50. The project triggers the Environmental Assessment (OP 4.01), Forest (OP 4.36), Pest Management (OP 4.09), Physical Cultural Resources (OP 4.11) and the 4.10 (Indigenous People) World Bank's safeguard policies. OP 4.12 (Involuntary Resettlement) is not applicable to the project as involuntary land acquisition and land purchase will not be done for any project activity as the civil works would be carried out on available government land. In establishing these Centers, guidelines and space standards for barrier free built environment of disabled and elderly persons would be followed as provided in the social management framework. The project triggers OP/BP4.10 (Indigenous People) safeguard policy because project beneficiaries include the tribal population of the state of about 1.28 percent of the total population scattered across different districts, with the highest concentration in Paschim Champaran. Katihar, Jamui, Banka and Purnia also have a relatively high proportion of tribal population, and there are a total of 10 districts where more than 2 percent of the population is tribal. The policy is triggered to ensure that any adverse effects of the project are avoided or minimized and that the indigenous people receive culturally appropriate social and economic benefits.
51. An Environmental assessment (EA) study was undertaken by the Government of Bihar for the proposed project. The EA study provides detailed analysis of the potential positive and negative impacts of the project activities including the Service Centers, MGNREGS works, IAY houses. It also includes a review of the existing capacity in the RDD, DoSW and the Bihar State
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Building Construction Corporation Limited (which is the technical agency for design and supervision for the construction activities) for environmental management.
52. An Environmental Management Framework (EMF) was prepared based on the environmental assessment. This provides guidelines for site selection, design, construction and maintenance of environment-friendly Buniyad Centers in line with all relevant legal and regulatory requirements on environmental safeguards. Options for integrating energy conservation, resource (building construction material) optimization, water conservation, disaster proofing, waste utilization/reduction, sanitation, safe water supply and fire safety practices, will be explored. The EMF contains a code of practice to be followed by the contractors during and after construction along with monitoring criteria. The EMF also provides environmental guidelines and describes a training and communication strategy to enable their adoption as a good practice for all MGNREGS works and IAY houses.
53. Given the social inclusion focus of the project, several field-based assessments were undertaken during preparation and have informed the project design. A Social Management Framework for the project has been prepared based on the field assessments and other relevant studies such as social management carried out for Bihar Rural Livelihood Project, National Rural Livelihood Project and Bihar Panchayat Raj Project.
54. The Social Management Framework (SMF) was prepared with the following objectives: (i) to ensure the objectives of the BISPS are fully addressed especially for the poorest and most vulnerable people in the project areas, including Scheduled Tribes, Scheduled Castes, and poor minorities; (ii) to integrate social inclusion, accountability, safeguards, risk management and sustainability strategies in the BISPS structures, institutions and interventions; and (iii) to ensure that the BISPS does not support any activities likely to cause significant adverse social impacts and that all activities comply with the laws, regulations and policies of India and the social safeguard policies of the World Bank. The SMF is designed as a guidance tool for implementation, monitoring and supervision of interventions that address social issues and risks, including social safeguard risks. It therefore addresses the needs of the World Bank’s Operational Policy (O.P. 4.10) on ‘Indigenous Peoples’ (or Tribal Peoples, as they are known in India), and includes a Tribal Development Plan. The SMF also provides a strategy to promote inclusion by gender and vulnerability as part of overall project design and identifies the procedures to be followed for selection of land for service centers.
55. Monitoring and reporting requirements for EMF and SMF compliance, relevant roles and responsibilities, and performance indicators have been specified in the EMF and SMF. Independent external monitoring of the Buniyad Centers will be undertaken during the project duration to check compliance, assess impacts and identify ways of strengthening implementation of environmental management. The responsibility for ensuring the implementation of the EMF and SMF will be anchored with an identified officer in the State Units of both BRDS and SSUPSW. The roles and responsibilities for ensuring the implementation of the EMF and SMF have been detailed for both the RDD and DoSW programs at the district and block levels. The budget required for the EMF implementation has been included in the detailed project costs; no additional budget is required for SMF implementation as these are mainstreamed in the project activities.
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56. Public consultation was undertaken as part of the EA and development of the EMF and SMF. Field studies undertaken in the project districts covered Block Development Offices, the District Disability Rehabilitation Center (DDRC), a representative sample of MGNREGS works and IAY houses. Discussions with the staff of the Block Development Office, the DDRC, MGNREGS staff and with representatives of Gram Panchayats were held in several districts. In addition to the field level consultations, consultation workshops were held at the state level twice (in July 2012 and in October 2013) to elicit comments and inputs on the draft EA, EMF and SMF reports from key project stakeholders at the state and district level. District level consultations were held in Katihar, Madhubani, Buxar, Nalanda (in August 2012) and in Motihari, Gaya and Purnea (in October 2013), with representation from stakeholders at the block and panchayat level, representatives from NGOs, etc., and additional district consultations are planned.
57. To respond to the Bank’s O.P. 4.10 (Indigenous Peoples), the project shall continue to ensure free prior and informed consultations with tribal people, their consent to and broad community support of its activities during project implementation. It shall aim to provide equitable and culturally compatible benefits to tribal people and the other socially disadvantaged groups identified. Staff in the BRDS and SSUPSW and community mobilisers shall be trained in socially- and culturally-sensitive ways of working with tribal people and others. To respond to the Bank’s OP 4.01 (Environmental Assessment), the project shall build capacity of staff in BRDS and SSUPSW and in RDD on planning, implementation and monitoring of schemes, including their environmental impact. The design of the Buniyad centers will also integrate environmentally friendly aspects.
58. The EA, EMF and SMF reports have been disclosed through the websites of the RDD and DoSW on October 23, 2013 as well as on the Bank Infoshop.
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Appendix 1: Procurement Plan
I. General
1. Project Information Country : India Borrower : Government of India Project Name : Bihar Integrated Social Protection Strengthening Project
2. Bank’s Approval Date of the Procurement Plan : November 21, 2013
3. Date of General Procurement Notice : October 22, 2013
4. Period Covered by this procurement plan : 18 months
II. Goods, Works and Non consulting Services
1. Prior Review Threshold
Method of Procurement Thresholds for Method (USD Equivalent)
Prior Review thresholds
ICB (Goods, equipment and non-consulting services) > 3 Million all contracts
NCB (Goods, equipment and non-consulting services) > 50,000 and up to 3 Million
first three contracts and all contract above US $ 500,000
Shopping (Goods, equipment and non-consulting services) Up to 50,000 first two contracts
Direct Contract (Goods, equipment and non-consulting services)
as per paragraph 3.7 of Procurement Guidelines
all contracts above US $ 10,000
Framework Agreements (Goods, equipment )
as per paragraph 3.6 of Procurement Guidelines
First two contracts and all contracts above US $ 500,000
ICB (Works) > 40 Million all contracts
NCB (Works) > 100,000 and up to 40 Million
first three contracts; and any contract equal to or over US$ 5,000,000
Shopping (Works) Up to 100,000 first two contracts
Direct Contract (Works) as per paragraph 3.7 of Procurement Guidelines
all contracts above US$10,000
Note: The Prior Review Thresholds will be reviewed during the implementation of the project and suitably modified based on assessment.
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In the case of contracts subject to prior review, before granting / agreeing to (a) a material extension of the stipulated time for performance of a contract; or (b) any substantial modification or waiver of the scope of services or other significant changes to the terms and conditions of such that the contract, including issuing; or (c) any change variation order or orders under such contract amendment (except in cases of extreme urgency) which would in aggregate, singly or combined with all variation orders or amendments previously issued, increase the original contract amount of the contract by more than 15% (fifteen percent); or (d) the proposed termination of the original price contract, the Borrower shall seek the Bank’s no objection to the proposed extension, modification, or change order. A copy of all amendments to the contract shall be furnished to the Bank for its record.
2. Prequalification
Not Applicable
3. Reference to Project operational/Procurement Manual Standard Bidding Documents agreed between Project and Bank will be used for all works, consultancy and goods procurements.
4. Any Other Special Procurement Arrangements:
I. National Competitive Bidding (NCB) method for procurement and goods and works as per the above value thresholds will be conducted in accordance with paragraph 3.3 and 3.4 of the World Bank Procurement Guidelines and the following provisions:
a. Only the model bidding documents for NCB agreed with the GoI Task Force (and as amended for time to time), shall be used for bidding;
b. Invitations to bid shall be advertised in at least one widely circulated national daily newspaper (or on a widely used website or electronic portal with free national and international access along with an abridged version of the said advertisement published in a widely circulated national daily inter-alia giving the website/electronic portal details from which the details of the invitation to bid can be downloaded), at least 30 days prior to the deadline for the submission of bids;
c. No special preferences will be accorded to any bidder either for price or for other terms and conditions when competing with foreign bidders, state owned enterprises, small scale enterprises or enterprises from any given state;
d. Extension of bid validity shall not be allowed with reference to Contracts subject to Bank prior review without the prior concurrence of the Bank (i) for the first request for extension if it is longer than four weeks; and (ii) for all subsequent requests for extension irrespective of the period (such concurrence will be considered by Bank only in cases of Force Majeure and circumstances beyond the control of the Purchaser/ Employer).
e. Re-bidding shall not be carried out with reference to Contracts subject to Bank prior review without the prior concurrence of the Bank. The system of rejecting
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bids outside a pre-determined margin or “bracket” of prices shall not be used in the project;
f. Rate contracts entered into by Directorate General of Supplies and Disposals will not be acceptable as a substitute for NCB procedures unless agreed with the Bank on case to case basis. Such contracts will be acceptable however for any procurement under the Shopping procedures. Framework Agreements using DGS&D rate contracts can be used to procure goods up to NCB threshold subject to incorporation of right to audit and Fraud & Corruption clauses.
g. Two or three envelope system will not be used (except when using e-Procurement system assessed and agreed by the Bank);
h. No negotiations are conducted even with the lowest evaluated responsive bidders.
II. Domestic Preference. The provisions of paragraphs 2.55 and 2.56 of the Procurement Guidelines, providing for domestic preference in the evaluation of bids is not applicable.
III. The bid evaluation will be carried out as per agreed timeline in the Procurement Activity Schedule
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5. Summary of the Procurement Packages planned during the first 18 months after project effectiveness (including those that are subject to retroactive financing and advance procurement):
Procurement Plan
BRDS
Ref No
Contract ( Description)
Estimated Cost INR
Estimated Cost
USD equiv
Procurement Method
Review by Bank
(Prior /Post)
Expected Bid
Opening Date
Expected Contract Award Date
Expected contract
completion Remark
Goods
GD-1
Computer Equipment for BRDS head office
3,000,000 46,154 NS Yes (first NS
contract) Jan-2014 Apr-2014 Jul-2014
GD-2
Laptops for Accountants and Auditors at Block, District and State levels
45,000,000 692,308 NCB Yes (first
NCB contract)
Dec-2013
Feb-2014 Mar-2013
BSBCCL
Ref No
Contract ( Description)
Estimated Cost INR
Estimated Cost
USD equiv
Procurement Method
Review by Bank
(Prior /Post)
Expected Bid
Opening Date
Expected Contract Award Date
Expected contract
completion Remark
Works
CW-1
Renovations of existing GOB premises to serve as Buniyad Centers
India: Bihar Integrated Social Protection Strengthening Project (P118826)
Project Stakeholder Risks
Stakeholder Risk Rating Moderate
Risk Description: Potential exclusion of key target groups (elderly, disabled, widows, poor rural households) in project design/implementation due to inadequate information and communication/outreach. Acceptability of change management process could be lengthy for Government staff and other stakeholders.
Risk Management:
Project objectives are well aligned with government’s commitment to improve the delivery of services in general, and social protection programs and services in particular. The two project implementing agencies are highly committed to project objectives. Consultations with key stakeholders have taken place as part of the Bihar Capacity Building NLTA and project identification. These consultations will continue as part of project preparation and implementation. In addition, mechanisms for improved outreach and engagement with key target groups are included in project design, including by designing and implementing a communication strategy and materials through dedicated consultancies. Ensuring the integrity and transparency of information collected about program beneficiaries and their level of satisfaction with the reform is particularly crucial. Therefore, an MIS and a systematic field-based third-party/community verification & monitoring system is an integral part of project design which will inform about the success/failure of outreach and inclusion of key target groups.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
Risk Management:
The project includes a variety of interventions for the staff of both departments, including capacity building, communications and awareness building as well as improvement of HR policies and the introduction of a performance management system which is expected to streamline and clarify staff roles and responsibilities, put in place a transparent system for evaluating and rewarding staff, thereby encouraging better staff performance. Also, the project will make improvements in program management through streamlining processes which are expected to help staff to focus on core functions of service delivery.
Risk Description: Limited capacity to deliver SP programs and
Risk Management:
The proposed project focuses on institutional strengthening of capacity and systems for delivery at state and local levels. The first project component is aimed at capacity building, including the development of program guidelines, training of
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services, with insufficient staff, processes, systems and program monitoring. Limited overall knowledge and experience in Bank-financed operations. This is compounded by the relatively new implementing agencies -BRDS (under Rural Development Department - RDD) and SSUPSW (under Department of Social Welfare - DoSW) with lack of experience in management, technical, procurement and financial management processes to prepare and implement the project, including insufficient number of staff. Inadequate experience in Bank-financed projects and multiple spending agencies may lead to delays in the preparation of required fiduciary documentation and the handling of fiduciary functions.
staff in planning and program management, development of HR policy as well as monitoring and community outreach. This is expected to significantly improve capacity in the state to administer SP programs and services. In addition, dedicated project staff to facilitate project functioning have been hired /are proposed to be hired.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
Risk Management:
The preparation and management of the project would be carried out by two state societies in RDD and DoSW. Although the societies have no prior engagement with bank funded operations, both departments have some exposure to Bank-funded projects through the Bihar Kosi Flood Recovery Project (RDD) and the Bihar Panchayat Strengthening Project (RDD, DoSW). As part of project preparation, training and information has been provided to ensure maximum understanding of processes and procedures involved in a Bank-financed operation. As soon as the societies are fully staffed, additional training will be provided on Bank operations. The civil works would be done by Bihar State Construction Corporation Limited which has experience in procurement of civil works but would need training on Bank procurement guidelines and documents. Procurement would be carried out at the state level only except for operating cost expenditure which would also be at the lower levels.
Resp: Bank Status: In Progress
Stage: Both Recurrent:
Due Date:
Frequency: CONTINUOUS
Risk Management:
Adequate financial management arrangements have been put in place during preparation including development of FM manual and accounting systems, recruitment of project FM staff. A procurement manual has been developed by both agencies and formats are being prepared to guide procurement and threshold based methods for goods, works and services. The manual details the proposed systems, delegated authorities along with capacity development needs and SBDs, various protocols and formats to be used. The manual will be reviewed to ensure that Bank’s concerns for transparency, fairness, economy and efficiency are met. Both BRDS and SSUPSW will competitively recruit Procurement Specialists at the state level to support implementation of the Bank approved procurement plan.
Resp: Client Status: In Progress
Stage: Preparation Recurrent:
Due Date:
31-Mar-2014
Frequency:
Governance Rating Substantial
Risk Description: While there is broad ownership for the project in both implementing agencies, there may be risks associated with delayed decision-making due to institutional constraints and potential lack of agreement on proposed measures. This could
Risk Management:
The societies are autonomous bodies and some decision-making powers have been delegated to the societies and the PDs. The process of decision-making would be strengthened through continuous discussion and engagement with two societies on proposed project activities and overall program reforms. During implementation, increased information and transparency in information flow with the development of an MIS would contribute to improved decision making.
Resp: Client Status: Not Yet Due
Stage: Both Recurrent:
Due Date:
Frequency: CONTINUOUS
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affect project preparation and implementation. Issues related to accountability in service delivery. Constraints related to coordination/ cooperation between the two implementing agencies may affect project implementation. Fiduciary risks: Financial management and procurement risks are as follows: (i) possible delays/inaccuracy in preparation and submission of periodic financial reports and internal controls; (ii) delays in submission of audit reports; (iii) potential non-compliance with Bank procurement guidelines due to lack of experience; (iv) risk on account of distributed expenditures incurred at multiple levels.
Risk Management:
Improving accountability and transparency in service delivery is a key goal of the project which will be achieved through improved monitoring, verification and evaluation of program performance.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
Risk Management:
Implementation through State societies provides an opportunity to enhance cooperation between departments due to the societies autonomous status and clear lines of responsibility assigned under the project. Also, coordination would be ensured through the office of the Development Commissioner in his ex-officio position as the chairperson of the General Body of BRDS and of SSUPSW.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
Risk Management:
This risk would be mitigated by (i) competitively hiring Procurement Specialists to support the BRDS and SSUPSW in procurement; (ii) Prior and post review arrangements will be put in place with enhanced monitoring arrangements; (iii) A Complaints and Dispute Resolution Mechanism will be developed and put in place as part of the Procurement arrangements; (iv) mechanisms will be developed and put in place to ensure grievance redressal as part of improved service delivery; and (v) setting up adequate financial management arrangements, including a zero balance parent child account for better monitoring and a strengthened internal control framework. The proposed extension of banking channels including electronic payments to mitigate delays in contractual payments and facilitate accounting will help address concerns on the periodic consolidation and accuracy of reports.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
Risk Management: This risk would be mitigated by (i) monitoring of compliance with Bank guidelines and agreed arrangements; (ii) strengthening of the existing financial management system in the state and under the project; and (iii) hiring of procurement support agency.
Resp: Client
Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency:
Project Risks
Design Rating Substantial
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Risk Description: Two implementing agencies, with varying capacity, introduce potential challenges for coordination. The project design includes revised program processes the novelty of which may be an issue in terms of decision-making and implementation effectiveness. Development of MIS and other applications may face delays because the process would rely on the SECC exercise. There could also be IT procurement challenges.
Risk Management:
Project design with sub-components under Component 1 clearly defined by entity is intended to clarify responsibilities and reduce complexity in that regard. Also, project preparation has been carried out in close collaboration with GoB to develop appropriate implementation arrangements to minimize duplication and promote coherence.
Resp: Both Status: Completed Stage: Preparation Recurrent:
Due Date:
21-Nov-2013
Frequency:
Risk Management:
The proposed activities have been intensively discussed with both societies and lessons have been incorporated in their design from similar ventures in other states in India. This will to a significant extent reduce the risk associated with the proposed interventions. Also, the implementation arrangements and the timetable for the proposed activities have been carefully thought through to ensure that they are appropriate in the Bihar context and that there are sufficient time and resources allocated. Lastly, the project period has been intentionally extended to 6 years to reflect the inherent challenges of working in Bihar and to provide sufficient time to develop capacity and systems in order to implement the proposed project.
Resp: Both Status: Not Yet Due
Stage: Preparation Recurrent:
Due Date:
21-Nov-2013
Frequency:
Risk Management:
Lessons from Karnataka have been taken into consideration during the design. A dedicated e-governance and IT unit will be established at BRDS and an e-governance and partnership development unit will be established at SSUPSW. An e-governance agency will also be recruited to provide technical assistance to the IT and e-governance interventions. These units will ensure oversight and full coordination with the National e-governance mission activities.
Resp: Client Status: Not Yet Due
Stage: Both Recurrent:
Due Date:
31-Mar-2016
Frequency:
Social and Environmental Rating Moderate
Risk Description: Risk Management:
The project triggers the Environmental Assessment (OP/BP 4.01), Forests (OP/BP 4.36), Pest Management (OP/BP 4.09), Physical and Cultural Resources (OP/BP 4.11) and Indigenous Peoples (OP/BP 4.10). Safeguard risks: Environment management and safeguards related risks are as follows: (i) lack of experience and lack of co-ordination between the key implementing agencies may lead to a delay in the preparation of required documentation; (ii) lags in creating the required
Any potential environmental concerns arising out of the support for service centers would be managed through an Environmental and Social Management Framework developed based on the Environmental and Social Assessment studies undertaken for the project.
Resp: Both Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
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institutional arrangements for effective EMF and SMF implementation; and (iii) potential non-compliance with Bank environment safeguard policies/guidelines due to lack of capacity.
Program and Donor Rating Low
Risk Description: Risk Management:
While the engagement and commitment of donors as well as NGOs and CBOs is not considered a risk, there may be overlaps in program implementation with the DFID financed project (Governance Reform Program) and other projects by the Bank.
There is extensive donor engagement in Bihar (including the World Bank, DFID and ADB). The ongoing and proposed donor projects are well-aligned in terms of project objectives. During implementation, the project will continue to ensure synergies with existing and ongoing projects and activities, including programs run by NGOs and CBOs. The team will contribute to information sharing and collaboration through the established mechanism for donor coordination. In addition, close collaboration will be maintained with the Bihar Rural Livelihoods Project and the Bihar Panchayat Strengthening Project to ensure maximum synergy.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
Frequency: CONTINUOUS
Delivery Monitoring and Sustainability Rating Substantial
Risk Description: Risk Management:
Limitations in program monitoring and evaluation. Investments may not be mainstreamed due to inadequate evidence base.
A critical element of improved service delivery is strengthened M&E which would be supported under the project through several initiatives:(i) MIS system developed; (ii) third-party monitoring (surveys & validation of MIS data); (iii) assessment of project innovations; and (iv) regular project reviews. Also, baseline, mid-term and end-term quantitative surveys in order to evaluate the impact of key programs and reforms supported by the project. These surveys would sample households and include user-satisfaction assessments. This will ensure that a robust evidence base is available for decision-makers in Bihar to use for the continuation and scale up of activities.
Resp: Client Status: Not Yet Due
Stage: Implementation Recurrent:
Due Date:
28-Feb-2020
Frequency:
Overall Risk
Overall Implementation Risk: Substantial
The overall risk for project implementation is deemed to be Substantial in view of weaknesses in program implementation, the novelty of implementing agencies, as well as weak technical capacity.
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ANNEX 5: IMPLEMENTATION SUPPORT PLAN
1. The implementation support plan (ISP) for the project has been developed based on the specific nature of the project activities, lessons learned from past operations in the country and sector, and the project’s risk profile in accordance with the Operational Risk Assessment Framework (ORAF). The ISP will be reviewed regularly and revised as and when required. 2. The implementation support plan includes regular, thorough reviews of implementation performance and progress with the two project implementing agencies which will be carried out by a team of Bank specialists. In addition to these formal implementation support missions and field visits, which will be carried out at least semi-annually, special workshops will be held at key decision points in the project on issues such as the design of the Buniyad centers. Midway during the project, the Bank team will hold a Mid-term review mission to take stock of project implementation and to take corrective action, as necessary. The MTR is expected to take place in September 2016. Prior to that mission (by early August 2016), the GoB will send to the Bank a report summarizing project progress, highlighting any particular issues that require special attention. At the end of the project, the Bank team will prepare an Implementation Completion Report (ICR) which will summarize achievements made under the project. This report will also include an assessment of the project by the GoB.
3. The Bank team will monitor progress on several fronts including: (i) key performance indicators as identified in the Results Framework, (ii) compliance with key legal conditions and covenants; (iii) progress made against the project implementation plan and the procurement plan, (iv) whether estimated project costs are sufficient to cover planned activities and whether reallocations of Credit funds are required; (v) compliance with the Bank’s financial management and disbursement provisions; (vi) compliance with environmental and social safeguards; and (vii) Governance and Accountability Action Plan. In addition, the Bank will review data generated under the MIS, and will also review the findings and results of third party assessments, community-based monitoring, and social audits which will be undertaken during the course of project implementation. The Bank team will also closely monitor the completion of the baseline, mid-term and end-term quantitative surveys that will be used to evaluate the impact of key reforms supported by the project, including user-satisfaction assessments. 4. In addition to monitoring project progress, the Bank team will work closely with the two implementing agencies to provide technical support as needed. The Bank team will include specialists on social protection issues, IT specialist (incl. IT procurement), M&E specialist, specialist on social care and support services for persons with disabilities, older persons and widows, and operations staff that will provide necessary just-in-time advice and support. The Bank procurement specialist will carry out annual ex-post review of procurement that falls below the prior review thresholds and will have separate focused missions depending on the procurement needs that arise. The Bank financial management specialist will review all financial management reports and audits and take necessary follow-up actions as per Bank procedures. The Bank environmental specialist will ensure that all proposed construction is carried out in line with the Bank’s environmental safeguard guidelines and in line with the EMP. The Bank team members will also help identify capacity building needs to ensure successful project implementation.
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5. The specific support in implementation during the project period is outlined below:
Time Focus Skills Needed Overall coordination Task Team Leader (TTL)
Year 1 Project launch (Mar 2014)
Task team (TTL, Operations Officer, FM Specialist, Procurement Specialist, Environmental Specialist, Monitoring and Evaluation Specialist, IT Specialist, Consultants on specialized issues)
Intensive Procurement/FM training and supervision missions
Procurement and Financial Management Specialists
Review of baseline survey data Monitoring and Evaluation Specialist Regular implementation support
mission (Sep 2014) Task team (TTL, Operations Officer, FM specialist, Procurement Specialist, Environmental Specialist, IT Specialist, Consultants on specialized issues)
Years 2-6 Bi-annual implementation support
missions (technical and fiduciary reviews)
Task team (TTL, Operations Officer, FM Specialist, Procurement Specialist, Environmental Specialist, IT Specialist, Consultants on specialized issues)
Special workshops (as required) Specialists (as required) Mid-Term Review (Sep 2016) Task team (TTL, Operations Officer, FM
Specialist, Procurement Specialist, Environmental Specialist, Monitoring and Evaluation Specialist, IT Specialist, Consultants on specialized issues)
Task team (TTL, Operations Officer, FM Specialist, Procurement Specialist, Environmental Specialist, Monitoring and Evaluation Specialist, IT Specialist, ICR Author, and Consultants on specialized issues)
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ANNEX 6: SOCIAL PROTECTION COMPONENT OF BIHAR CAPACITY BUILDING TECHNICAL ASSISTANCE
1. One of the three focus areas of the Bihar Capacity Building Technical Assistance program (BCB TA) has been to support efficient delivery of public services, including social protection. The main goal of this activity has been to assist GoB in making systemic improvements in the administration of SP programs and policies. An important secondary objective is to increase the efficiency and transparency of public spending on SP programs. 2. Both the Rural Development Department (RDD) and Department of Social Welfare (DoSW) are key counterparts supported under the BCB NLTA. The Bank team sought to support the reform agenda as proposed by Government of Bihar and build a consensus around SP service delivery reform. The team provided intensive, just-in-time strategic and operational technical support to strengthen policies and programs. 3. A detailed review of the state's SP strategy and program performance provided the evidence base for identifying critical challenges. These include need for clearly defined operational guidelines and procedures, strengthen institutional capacity, improved governance and incentives for performance, effective outreach and communications, effective monitoring and accountability mechanisms. State-level policies aimed to ensure the rights of PWDs and older persons are not yet in place. 4. Detailed institutional assessments of RDD and DoSW were also undertaken. In particular, the Bank team provided technical support to RDD for undertaking a comprehensive Business Process Re-engineering study in order to critically examine current systems and processes and develop recommendations for reform. 5. A core team of social care specialists provided just-in-time technical support to DoSW for state policy and program development for vulnerable groups. This included providing technical inputs to the drafting of a State Disability Policy, the Bihar State Integrated Older Persons Scheme (BSIOPS), a state proposal for the Integrated Child Protection Scheme (ICPS), state rules for the implementation of the Juvenile Justice (Amendment) Act. 6. A Reform Support Unit (RSU) was established within RDD in September 2008 in order to provide technical, M&E and coordination services with respect to the specific reform initiatives. The Bank team provided technical assistance to the design of the newly established Bihar Rural Development Society (BRDS), based on a detailed comparative review of institutional structures for implementing MGNREGS in Andhra Pradesh and Madhya Pradesh. 7. There has been a significant emphasis on fostering partnerships for SP delivery. This included detailed studies across Bihar to assess the potential for and constraints in implementing such partnership models for MGNREGS. This was followed by a comparative review of five detailed case studies of partnerships between government and non-government agencies in implementing rural development programs across India. There is ongoing support on criteria and procedures for selecting non-government partners to pilot appropriate models for delivering MGNREG and IAY in Bihar.
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8. Strengthening monitoring and evaluation (M&E) has been a critical area of support. An evaluation of MGNREGS in the state (including the impact of an awareness generation pilot on program outcomes) has been undertaken. The RSU has also provided on-site support for periodic field monitoring of program performance of key RDD programs. 9. The Bihar Integrated Social Protection Strengthening project builds upon the learning from the above activities in terms of understanding the challenges facing GoB in delivering social protection programs and services. This long standing engagement has allowed GoB and the World Bank teams to collaborative identify challenges and explore solutions. The in-depth field-based work in the state as well as comprehensive case studies across India have also suggested possible solutions and innovations with the potential to help Bihar achieve better program outcomes.
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ANNEX 7: ECONOMIC AND FINANCIAL ANALYSIS
1. The economic rationale for this project is provided by the expected benefits to the target groups and the reduction in costs incurred by government in delivering the of the selected SP programs as described below. Expected benefits to program target groups 2. The eligible population targeted by the selected programs would benefit from greater access to these services, lower transaction costs, and timely and transparent benefit payments. The three programs selected for the project - MGNREGS, IAY and social pensions - are among the largest SP programs in Bihar and each addresses crucial vulnerabilities related to employment (MGNREGS), decent housing (IAY) and dependency support (social pensions). The high level of poverty and vulnerability in rural Bihar suggests that these programs should be hugely important. But poorer states’ efficacy in fighting poverty is often constrained by their limited institutional capacity to meet the demand for social protection as described in Section I. The poor may also be less empowered in poorer states and may have less awareness of the processes. This project seeks to address this issue through support to GoB in building strong institutions for delivery (BRDS and SSUPSW) with skilled and motivated staff, adequate and timely funds, streamlined delivery mechanisms and robust systems for monitoring and grievance redressal (Component 1).
3. While it is not feasible to estimate the impact of such systemic reforms in terms of quantifiable benefits, the increase in coverage can be simulated assuming that these programs are implemented as intended. National data for such analysis is only available for MGNREGS, but the findings are illustrative of the other programs covered under this project. In Bihar, only 10% of rural households got some work on the scheme in 2009-10, compared to 36% all-India (see Table 7.1).21 The data indicates that this is not because households in Bihar do not want work; instead participation is low because the need is not translated into work. In Bihar, 78% of rural households who reported that they wanted work on the scheme did not get work; the corresponding figure for India is 44%. This is in contrast to states like Chhattisgarh, Rajasthan, and Andhra Pradesh.22 Simulating participation if the scheme’s 100 day guarantee was actually implemented as intended indicates that coverage in Bihar would increase to 46% and total expenditure would increase to Rs. 4,495 per rural household.
21 Based on NSS survey 2009-10 22 These states were chosen as benchmarks as poverty incidence in Bihar and Chhattisgarh is the same (56%), yet MGNREGS participation in Chhattisgarh is nearly five times that in Bihar while the extent of unmet demand is only a third of that in Bihar. AP and Rajasthan have lower poverty incidence but are regarded as good performers.
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4. Further, the study estimates the poverty impact of MGNREGS at about 1 percentage point. Simulations of the potential impact suggest that MGNREGS alone, if implemented to its full potential, could reduce the rural poverty rate by as much as 10 percentage points.23 Satisfying the unmet demand for work would increase the impact on poverty to about 8 percentage points. Ensuring everyone is paid the stipulated scheme wage would increase the impact by another 2 percentage points. By strengthening implementation capacity, the project is expected to lead to greater participation, lower unmet demand and to timely and transparent wage payments. As a result, based on simulations of the potential impact of MGNREGS alone, the project has the potential to reduce rural poverty in Bihar by 10 percentage points. There are also indirect effects through the stimulus to the non-farm economy if the assets built are sustainable and relevant to the local economy.
5. The project also addresses the issue of inadequate service provision for older persons, widows, and persons with disabilities. These individuals face multiple deprivations and are particularly vulnerable given their economic dependence on others. They are in need of social protection and care services. GoB is committed by a national legislative framework to ensure care and support services to these groups. Despite this, other than social pensions, the existing mechanisms for care and support are very limited and require improvements in quality. The project interventions are designed to both increase the demand for these services and to expand service provision through Buniyad Centers and community based rehabilitation (Component 2). In doing so, the project would address both issues of quality and accessibility.
Expected reduction in cost of SP delivery 6. The project is also expected to reduce the costs to government of SP delivery by making program procedures more efficient, reducing duplication of effort and resources across programs and agencies, increasing transparency and reducing leakages. Project activities would
23 See Dutta et al (2013). The study draws on panel survey in 2008 and 2009 in rural Bihar.
Table 7.1: Actual and simulated expenditure and coverage for MGNREGS
Source and notes: NSS 2009-10 for HCR, participation and rationing; administrative data for expenditure. HCR = headcount ratio (% below poverty line); Participation rate = % rural HHs who got work; Rationing rate = % rural HH who wanted work but didn’t get it. Simulations are estimated assuming all rural HH that wanted work get 100 days.
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help to minimize duplication of public resources, reduce transaction costs incurred by intended beneficiaries and increase the share of public resources flowing to intended beneficiaries. It is difficult to quantify the expected gains. However, the nascent but growing experience of initiatives in other Indian states suggests that gains could be substantial:
• By strengthening financial management capacity and piloting alternative models for benefit payments, the project would contribute to reduction in idle funds in the implementing agencies’ accounts across the state, enable better accounting of utilization of funds and reduce delays in benefit payments. A recent report estimates that savings to government of 15-20% through use of electronic funds management systems over manual systems (McKinsey, 2010).
• By developing digitized beneficiary databases and transactions-based IT applications for program delivery, the project would improve the ability of government to monitor funds and outcomes at the beneficiary level, thereby increasing transparency and reducing leakage. Integrating program IT applications with IT solutions for funds management would also reduce leakage by allowing cross-checking of financial information against program outcomes. For instance, a recent pilot in Haryana to convert kerosene subsidy to cash transfers directly to beneficiary accounts revealed that 34% of beneficiaries could be eliminated just by checking bank accounts against LPG connection data.
• There are also economies of scale in developing shared IT solutions for common functional needs, such as HR management, grievance redressal, etc. Rather than disparate program-specific efforts by different agencies, a shared approach to solution development reduces the time, effort and cost required. In addition, by linking the selected programs to shared services platforms (e.g., for benefit payments), the project reduces the costs incurred by each program administrator through the aggregation of services.
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ANNEX 8: GOVERNANCE AND ACCOUNTABILITY ACTION PLAN (GAAP)
The design of the project reflects a direct response to the existing challenges in SP program delivery, as outlined in the Context section of this PAD. Many of these are governance and accountability challenges which also pose risks to the successful implementation of the SP programs and the project. This Governance and Accountability Action Plan (GAAP) identifies five main risk areas and outlines specific mitigation actions that counter or reduce these risks. Main Challenges of Governance and Accountability 1. Institutional mechanisms and capacity, i.e. challenges relating to program governance,
with limited planning, coordination, and program delivery, resulting in inadequate program outcomes.
2. Governance and decision making requires strengthening to enhance beneficiary identity
management, monitoring of service delivery across SP programs, and an institutional mechanism for rule-based data sharing between programs and administrative levels. Such actions will facilitate evidence-based information on SP programs’ effectiveness and improve the ability of decision makers to make informed policy and program decisions.
3. Issues relating to accountability in service delivery with inadequate information sharing
with key stakeholders and community involvement/participation in program monitoring and grievance redressal mechanisms.
4. Financial year determined government processes and procedures in place. 5. Fiduciary system challenges include: potential challenges ensuring consistency with World
Bank procurement procedures, possible delays in submission of reports/inaccuracy in reporting of expenditure information; delays in audits, limited procurement capacity, particularly for large works, goods, IT and consultancy contracts, weak procurement complaint handling mechanisms.
Mitigation measures for the above challenges: The project is designed to address the above identified challenges as these are also major impediments to effective SP service delivery. The mitigation measures for ensuring successful implementation of the project activities include:
1. Strengthening core systems and capacity of the two implementing agencies – the Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW) - at the state-level. This would strengthen overall governance and accountability of SP program delivery by improving implementing agencies management/administration functions, introducing clarity, transparency and consistency in program processes, and putting in place real-time M&E systems to increase accountability. This would also reduce the current fragmentation of program delivery and enhance program effectiveness. Specifically, (i) program delivery mechanisms will be streamlined by developing standardized procedures and tools for effective management of the benefits process, for outreach and communications to citizens, and for financial management and disbursement of benefits. Strengthening financial management systems
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and piloting e-payments to beneficiaries will be supported; (ii) staff capacity and effectiveness to deliver SP programs will be strengthened by developing a new HR policy, a new performance management system, and a training system for building staff capacity; (iii) monitoring and accountability mechanisms will be put in place to enable program and project implementation, monitoring and evaluation and grievance redressal. A comprehensive M&E strategy will be developed and capacity built to operate the management information system (MIS) as well as to undertake field assessments and social audits. As the project focuses on strengthening existing institutions, the above initiatives would build on and coordinate with other state institutions as relevant. For instance, Bihar has well-articulated accountability mechanisms and institutions (such as the state information commission), supported by the 2005 Right to Information (RTI) Act and 2011 Right to Public Services (RTPS) Act. The governance and accountability mechanisms developed for the selected programs under the project would build on these existing state institutions. These include Jankari, the state-level call center that facilitates the Right to Information (RTI) for all citizens, and the janta durbars (i.e., public meetings) held at the state (by the Chief Minister) and district levels where citizens can voice grievances. An Information and Public Grievance Cell (IPGC) has been established to receive and follow up on complaints received at the state-level durbars. Bihar has also introduced the state-wide Bihar Public Grievance Redressal System (BPGRS) that works directly under the supervision of the Chief Minister’s Secretariat. This registers complaints received from different sources and directs it to the relevant authority for redressal. While these channels have enabled proper registration of complaints, this project would promote a coordinated response to redress the reported grievances for the selected programs. As per the RTI Act 2005, the project would disclose information proactively and on-demand in response to requests.
2. Strengthening governance and decision-making by providing accurate and timely
information to decision makers on the implementation and effectiveness of the programs. This will be made possible by developing transaction-based Management Information Systems (MIS). Investments in financial management strengthening at the block level would increase the accuracy of information, the transparency of the processes and reduce leakages in the system. Importantly, these improvements would allow Bihar government officials and leaders to better monitor program outcomes as well as funds flow, enabling them to make informed decisions regarding SP policies and program implementation.
3. Increasing accountability in service delivery would be facilitated by putting in place
mechanisms for outreach and communications to citizens to increase information sharing about programs, including beneficiary eligibility, rights to services, application processes and receiving benefits. Social Care Service Centers would also be developed throughout the state to provide high quality care, support and rehabilitation services for older persons, widows, and persons with disabilities, including providing a mobile outreach program to expand services at the community level, particularly for those unable to access services at the Centers. Monitoring and accountability mechanisms would also support program and project implementation, monitoring and evaluation. A comprehensive M&E strategy will be developed and capacity built to operate the management information system (MIS) as well as to undertake field assessments and
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social audits. Also, procedures for dealing with appeals/grievances related to all relevant SP programs supported under the project will be developed to increase stakeholder and community involvement/participation in program monitoring and responsiveness to their needs.
4. Using State Societies under the two government departments to implement the project
will reduce the otherwise potential delays associated with existing bureaucratic processes to which regular Government departments are subject. In the Indian context, these special purpose vehicles are frequently set up by government departments, usually as autonomous organizations registered under the Societies Registration Act, 1860. The chief advantage of a society vis-à-vis a government department is its relative flexibility with respect to financial, procurement and human resource management. For instance, societies can typically competitively attract and recruit professional staff from the market. Societies can also establish norms for financial management and procurement that facilitates faster decision making, particularly with respect to introducing reforms and piloting innovations.
5. Reducing fiduciary risks will be accomplished by ensuring that FM and procurement
manuals are developed, project timelines have been agreed on, and capacity limitations are overcome by the hiring of fiduciary staff as well as by intensive training. Lack of adequate capacity to procure goods and services is mitigated with the assistance of competitively recruited procurement specialists. Also, a Complaint and Dispute Resolution Mechanism will be developed. The project also supports the strengthening of financial management systems through financial management strengthening at the state, district, and block level and piloting e-payments to beneficiaries. This would contribute to reduction in idle funds in the implementing agencies’ accounts across the state, enable better accounting of utilization of funds and reduce delays in benefit payments.
Monitoring Mechanisms/Indicators: Specific indicators, both quantitative and qualitative, to monitor progress on the governance and accountability action plan for each of the above identified risks are outlined in the table below (GAAP monitoring mechanisms/indicators).
1. Institutional mechanisms and capacity, i.e. challenges relating to program governance, with limited planning, coordination, and program delivery, resulting in inadequate program outcomes..
1. Strengthening core systems and capacity of the two implementing agencies – the Bihar Rural Development Society (BRDS) and the State Society for Ultra-Poor and Social Welfare (SSUPSW) - at the state-level. This would strengthen overall governance and accountability of SP program delivery by improving implementing agencies management/administration functions, introducing clarity, transparency and consistency in program processes, and putting in place M&E systems to increase accountability. Specifically, a series of interventions will be supported to strengthen governance, including:
i. refinement of policies and guidelines ii. streamlining of procedures and tools; iii. strengthening delivery mechanisms; iv. capacity building of staff; v. developing new HR policy; vi. developing a performance
management system for staff; vii. M&E strategy and MIS put in place viii. Grievance redressal systems in
place (consistent with the existing state grievance redressal mechanisms)
ix. Supporting a variety of innovations to improve the effectiveness of the program
-Semi-annual progress reports prepared by societies and submitted to the Bank prior to implementation support missions -Annual review of project progress reports carried out -Review of project innovations -Operations Manual prepared and utilized -Training and Capacity Building cells set up in BRDS and SSUPSW -M&E cells set up in BRDS & SSUPSW -specialized cells for Services for Persons with Disabilities and Services for Older Persons set up in SSUPSW
State Societies & district & block offices
Semi-annual, starting end of first year Annual, starting end of first year Annual/Mid-term/End of Project January 2015 July 2014 July 2014 March 2014
72
2. Governance and decision making requires strengthening to facilitate adequate, evidence-based information about beneficiaries and funds flow.
2. Strengthening governance and decision-making by providing accurate and timely information to decision makers on the implementation and effectiveness of the programs. This will be made possible by developing program-specific Management Information Systems (MIS). This work would entail the development of:
i. Program-specific Management Information Systems (MIS)
ii. Improved funds management which would reduce leakage by allowing cross-checking of financial information against program outcomes.
-e-Governance cell established for program management and oversight of all e-governance initiatives of BRDS -e-Governance cell set up for program management of all e-governance initiatives of SSUPSW - program-specific management information system (MIS) developed -Semi-annual progress reports prepared by societies and submitted to the Bank prior to implementation support missions -Annual review of project progress reports carried out -Review of project pilots/innovations
State Societies & district & block offices
July 2014 July 2014 December 2014 Semi-annual, starting end of first year Annual, starting end of first year Annual/Mid-term/End of Project
73
3. Issues relating to accountability in service delivery with inadequate information sharing with key stakeholders and community involvement / participation in program monitoring and grievance redressal mechanisms.
3. Increasing accountability in service delivery by putting in place:
i. mechanisms for outreach and communications to citizens to increase information sharing about programs;
ii. enabling environment for community participation in accessing services through the Social Care Service Centers;
iii. monitoring and accountability mechanisms to enable program and project implementation, monitoring and evaluation.
-Regular consultations with concerned stakeholders -Participatory social audits -Communications cell set up in BRDS -An Advocacy and Communications cell set up in SSUPSW -Buniyad Centers for social care services established and operational in 101 sub-districts -Rapid assessments on coverage (accessing services at centers) -Review of project activities -A comprehensive M&E strategy developed -M&E Cells set up in BRDS & SSUPSW
State Societies & district & block offices; Communities
Ongoing December 2014 July 2014 July 2014 Phased: 25% (Dec 2016) 100% (Dec 2017) Ongoing Annual/Mid-term/End of Project December 2014
74
-Procedures for dealing with appeals/grievances related to all relevant SP programs developed
December 2014 December 2014
4. Financial year determined government processes and procedures in place.
4. Using State Societies under the two government departments to implement the project will reduce potential delays associated with existing processes that regular Government departments are subject to. The advantage of a society vis-à-vis a government department is its relative flexibility in financial, procurement and human resource management.
-Societies in place and adequately staffed -Semi-annual progress reports prepared by societies
State Societies & district offices
Ongoing Semi-annual, starting end of first year
5. Fiduciary system challenges include: potential challenges ensuring consistency with World Bank procurement procedures, possible delays in submission of reports/inaccuracy in reporting of expenditure information; delays in audits, limited procurement capacity, particularly for large works, goods, IT and consultancy
5. Reducing fiduciary risks as follows: i. FM and procurement manuals
developed, ii. Fiduciary staff hired in both societies iii. Necessary training to fiduciary staff
provided by Bank staff, particularly with respect to more complex procurement actions
iv. Procurement Specialists hired by BRDS and SSUPSW,
v. Procurement Plan regularly updated and followed,
vi. Procurement Complaint and Dispute Resolution Mechanism developed,
vii. Financial Management strengthened at the block level and piloting e-payments to beneficiaries.
-Semi-annual and annual progress reports -Review of IUFRs (submitted on time and found satisfactory) -Review of Audits (submitted on time with unqualified opinions) -Procurement reviews by the Bank (measuring quality of procurement documents submitted for prior review) -Procurement post-
State Societies Bank fiduciary specialists
Semi-annual, starting end of first year Quarterly, starting end of first year Annual, starting end of first year Ongoing Annual, starting end of
