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The World Bank Public Disclosure Authorized Report No: 25310-BD

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The World Bank Public Disclosure Authorized Report No: 25310-BD Document of The World Bank Public Disclosure Authorized Report No: 25310-BD PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ONA PROPOSED CREDIT IN THE AMOUNT OF SI)R 13.5 MILLION (US$18.24 MILLION EQUIVALENT) TO THE PEOPLE'S REPUBLIC OF BANGLADESH FOR A Public Disclosure Authorized SOCLAL INVESTMENT PROGRAM PROJECT February 16, 2003 Rural Development Sector Bangladesh Country Unit South Asia Regional Office Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective December 2002) Currency Unit = Bangladesh Taka (Tk.) Tk. 1.00 = US$0.0172 US$1.00 = Tk. 58.15 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS ARCS Audit Report Compliance System CAP Community Action Plan CAS Country Assistance Strategy CBO Community-Based Organization CG Community Group CONTASA Convertible Taka Special Account CPAR Country Procurement Assessment Report CQ Consultant Qualification CSO Community Support Organization DC Direct Contracting EA Environmental Assessment EMP Environmental Management Plan FMR Financial Monitoring Report GB Goveming Body GnB General Body GOB Govemment Of Bangladesh HPI Human Poverty Index IC Information and Communication ICR Implementation Completion Report IDA International Development Association IPI Income Poverty Index LIL Learning and Innovation Loan MAA Memorandum And Articles Of Association MD Managing Director M&L Monitoring and Learning MIS Management Information System MOF Ministry of Finance MOU Memorandum of Understanding NGO Non-Government Organization NCB National Competitive Bidding NS National Shopping OM Operational Manual PAST Project Appraisal And Supervision Team PCT Procurement Core Team PKSF Palli Karma Sahayak Foundation PMC Project Management Committee PO Participating Organization PPRP Public Procurement Reform Project PROCMOR Procurement Monitoring Report QCBS Quality And Cost Based Selection RFP Request for Proposal SA Social Assessment SAP Social Assistance Program SDF Social Development Foundation SFA Sub-Project Financing Agreement SGA Subsidiary Grant Agreement TOR Terms of Reference SSS Single Source Selection UP Union Parishad VDC Village Development Committee VI Vulnerability Index Vice President: Mieko Nishimizu Country Director: Frederick T. Temple Sector Director: Constance A. Bemard Task Team Leader: Wahida Huq BANGLADESH SOCLAL INVESTMENT PROGRAM PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 2 2. Key performance indicators 2 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 2 2. Main sector issues and Government strategy 3 3. Sector issues to be addressed by the project and strategic choices 5 C. Project Description Summary 1. Project components 5 2. Key policy and institutional reforms supported by the project 6 3. Benefits and target population 7 4. Institutional and implementation arrangements 7 D. Project Rationale 1. Project alternatives considered and reasons for rejection I1 2. Major related projects financed by the Bank and/or other development agencies 12 3. Lessons learned and reflected in the project design 13 4. Indications of borrower commitment and ownership 14 5. Value added of Bank support in this project: 14 E. Summary Project Analysis 1. Economic 14 2. Financial 15 3. Technical 16 4. Institutional 16 5. Environmental 17 6. Social 19 7. Safeguard Policies 21 F. Sustainability and Risks 1. Sustainability 22 2. Critical risks 22 3. Possible controversial aspects 23 G. Main Conditions 1. Effectiveness Condition 24 2. Other 24 H. Readiness forlmplementation 26 I. Compliance with Bank Policies 26 Annexes Annex 1: Project Design Summary 27 Attachment 1: Relationship between Project Components and Implementation 32 Arrangements Annex 2: Detailed Project Description 33 Attachment 1: Target Strategy 37 Attachment 2: Information & Communication Strategy & Implementation 39 Attachment 3: Monitoring and Learning 40 Attachment 4: Institutional Development at the Community-Level 43 Attachment 5: Implementation of Community Infrastructure Sub-Projects 46 Attachment 6: Community Infrastructure Works 48 Attachment 7: Sample Sub-Project Financing Agreement 50 Attachment 8: Social Assistance Program 56 Attachment 9: Pilot Private Financing of Community Utilities 62 Attachment 10: Environmental Supervision 65 Attachment I 1: Measurement of Poverty Indices and Findings of the Social 69 Assessment Study Attachment 12: Summary of the Tribal Development Plan 72 Annex 3: Estimated Project Costs 77 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 78 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 81 Annex 6: Procurement and Disbursement Arrangements 82 Annex 7: Project Processing Schedule 98 Annex 8: Documents in the Project File 100 Annex 9: Statement of Loans and Credits 101 Annex 10: Country at a Glance 103 Figure 1: Relationship between Project Components and Implementation Arrangement 32 Figure 2: Implementation of Community Infrastructure Sub-projects 47 MAP(S) IBRD No. 32249 BANGLADESH Social Investment Program Project Project Appraisal Document South Asia Regional Office SASRD Date: February 16, 2003 Team Leader: Wahida Huq Sector Director: Constance A. Bernard Sector(s): Other social services (50%), General Country Director: Frederick T. Temple transportation sector (40%), Media (5%), General Project ID: P053578 education sector (5%) Lending Instrument: Specific Investment Loan (SIL) Theme(s): Rural services and infrastructure (P), Other rural development (P), Gender (S), Poverty strategy, analysis and monitoring (S), Rural policies and institutions (S) 1 dPrdjctFihiarcini Data, .- b * - ',4-i t t 4 [ Loan [X] Credit [ Grant [ Guarantee [ Other: For Loans/Credits/Others: Amount (US$m): SDR 13.5 million (US$18.24 million equivalent) Proposed Terms (IDA): Standard Credit Grace period (years): 10 Years to maturity: 40 Service charge: 0.75% BORROWER 1.61 0.00 1.61 IDA 17.89 0.35 18.24 LOCAL COMMUNITIES 2.69 0.00 2.69 Total: 22.19 0.35 22.54 Borrower: PEOPLE'S REPUBLIC OF BANGLADESH Responsible agency: SOCIAL DEVELOPMENT FOUNDATION Address: House 3, Road 2A, Banani, Dhaka-1213, Bangladesh Contact Person: Mr. M. Hafizuddin Khan, Managing Director Tel: (880)-2-9894622, 9894611 Fax: (880)-2-9873095 Email: [email protected] Estimated Disbursements (_Bank FY/US$m): r ' ;r.*^ .R-. :-0,0 -' :, 200, f - 1,- 20ns6.5 '. .0i6 207 Annual 1.00 5.00 6.00 :5.00 1.24 Cumulative 1.00 6.00 12.00 17.00 18.24 Project implementation period: 4 years Expected effectiveness date: 06/16/2003 Expected closing date: 06/30/2007 A. Project Development Objective 1. Project development objective: (see Annex 1) The objective of the project is to develop effective and efficient financing and institutional arrangements for improving access to local infrastructure and basic services through the implementation of community-driven small-scale infrastructure works and social assistance programs. The project area will be Jamalpur and Gaibandha districts, which rank among the highest in poverty incidence both in terms of income and human development (Annex 2, Attachment 1). The pilot private financing of community utilities will be anywhere in the country where opportunities exist. 2. Key performance indicators: (see Annex I) The project will measure the success of reaching its development objective through the following key indicators: * About 1,800 community sub-projects successfully completed, in terms of participation of the poor and women, beneficiary satisfaction, technical quality, cost-effectiveness and operation and maintenance. * About 50 percent of the poor and vulnerable groups in the project area benefit from small-scale rural infrastructure and social assistance programs. * At least 50 percent of the beneficiary communities continue to prioritize needs using participatory processes. * At least 10 percent of the community groups in the project area able to leverage external resources to support their additional needs. * Increased awareness and opportunities for reducing vulnerability. B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: IDA/R2000-204[IFC/R2000-216] Date of latest CAS discussion: December 12, 2000 The overarching objective of the CAS is to help realize Bangladesh's aspirations of reducing poverty within one generation. The Government of Bangladesh (GOB) visualizes a 50 percent decline in the number of people below the poverty line by 2010. To achieve this, the CAS focuses on three critical areas: (a) consolidating gains in human development; (b) implementing an integrated approach to rural development; and (c) accelerating and broadening private sector-led growth. Critical cross cutting issues identified by the CAS are institutional capacity-building, governance, macroeconomic stability, social concerns (e.g., gender equity and empowerment) and environmental protection. For those sectors where a comparative advantage can be demonstrated (e.g., rural water supply and sanitation infrastructure and micro-credit and human development), the CAS identifies the scaling up of NGOs and community-driven approaches as a priority. The proposed project is in line with the CAS objectives. By focussing on a process-oriented community driven approach, the project aims to explore new ways of delivering critical social assistance and infrastructure services to the poor. In so doing, it will address governance, institutional capacity-building,
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