Terms of References: Payment Service Provider

Home , Kalaw Township, Kengtung District, Kunhing, Kunhing Township, Kyaukme District, Loilem Township

Final

Maternal and Child Cash Transfer Program

APRIL 3, 2020 DEPARTMENT OF SOCIAL WELFARE Ministry of Social Welfare, Relief and Resettlement Terms of References: Payment Service Provider—Myanmar

1. Introduction Page 2

2. Objectives Page 2

3. Scope of Work Page 3 a. Service b. Coverage c. Information d. Customer Care

4. Fees, Disbursement and Other Charges Page 6 a. Fees b. Disbursement c. Impost, Costs and Charges

5. Verification and Auditing Page 7

6. Representations and Warranties Page 8 a. Litigation b. Compliances c. Reporting d. Contact

7. Termination Page 9

8. Indemnity Page 9

Appendix A: Area Information, Map, List of Townships and Estimated

Number of Beneficiaries (Shan State) Page 11

Appendix B: Area Information, Map, List of Townships and Estimated

Number of Beneficiaries (Ayeyarwady Region) Page 13

Appendix C: Proxy Eligibility Criteria Page 15

Appendix D: Anti-Corruption Guidelines Page 16

Appendix E: Consideration Factors for Service Provider Selection

Version 1 Page 17

Version 2 Page 18

1. INTRODUCTION

The Government of Myanmar (GoM) and the World Bank are preparing a new Project to reduce childhood stunting in a selected poor Region (R)s and State (S)s. The Project has two objectives: first, to increase the utilization of nutrition services and second, to improve key nutrition behaviors. Towards meeting these objectives, the Project will implement a nutrition-sensitive cash transfer program targeting pregnant women and mothers with infants below 2 years of age, in Ayeyarwady region and Shan states.

The Project will expand and further strengthen the Maternal and Child Cash Transfer (MCCT) program, currently implemented by GoM in Chin, Rakhine, Kayah and Kayin. It project will provide support for the setup of the cash transfer program in the selected R/S and in addition, invest in needed system strengthening. Under the MCCT program, pregnant mothers and mothers with young children are paid 15,000 kyats per month. Payments are made every three months until children reach age two. In most cases, beneficiaries are unbanked and financially underserved.

In the selected R/S the plan is to largely use electronic cash transfers. Physical cash transfers are prone to inefficiencies, and the project will use this method only in those few areas where electronic transfers are not practical today. The payment of cash grants to beneficiaries will be implemented by selected partner(s) (the “Payment Service Provider(s)”) with the required financial and administrative capacities selected by the Department of Social Welfare (DSW), Ministry of Social Welfare, Relief and Resettlement (MOSWRR).

A number of countries around the world have set up electronic cash transfer programs over the past decades. Moving away from transfers in physical cash has been a challenge but outcomes are improving rapidly - see example of review of programs in Latin America1. Electronic payment systems when developed effectively, can be extended to pay benefits for other programs (i.e. social pension, school stipends, etc.) that are currently implemented nation-wide in Myanmar. Specifically, the social pension is implemented directly under the same Ministry, and piloting of electronic payment are undergoing.

2. OBJECTIVES

The MCCT program in Shan and Ayeyarwady will rely on periodic delivery of cash to pregnant mothers/mothers with young children, through selected payment provider(s), to registered beneficiaries, linked to the MCCT’s management information system.

The MCCT program has been progressively rolled out in Chin, Rakhine, Kayah and Kayin under a physical cash delivery method to beneficiaries. Given the fast-growing experience in Myanmar with digital payment or cash transfer modalities, MCCT is planning to onboard an electronic payment system in wider areas, primarily Shan State and Ayeyarwady Region.

The objective of the Project is to ensure the transparency, speed, accuracy, efficacy, and broader applicability of the payment system beyond this program. For this, the payment system needs to be modern, reliable, cost-effective, and secure.

1 http://ella.practicalaction.org/wp-content/uploads/files/111111_ECO_ConCasTra_GUIDE.pdf

3. SCOPE OF WORK

The following main areas of work are the responsibility of the Service Provider: a. Service

The Service Provider is accountable for opening the beneficiaries’ account and utilization of the account, which includes but not limited to:

• Providing infrastructure including the use of banking partner and agents to open transaction accounts for eligible beneficiaries in the Ayeyarwady Region and Shan State • Facilitating the cash out process for beneficiaries • Providing information or location map of cash sources such as ATM, bank branches and agents

Success of the payment service will be measured by:

• Opening of accounts for beneficiaries • Successful credit of funds to eligible accounts with correct amount (accuracy) and within stipulated time (timeliness), • Notifying the beneficiaries that the credit is done, and • Enabling the cash out for the beneficiaries • Resolving beneficiary disputes within specified time b. Coverage

A map, list of townships and beneficiary population are set out in the attached appendices A and B for the respective regions. Coverage is defined as two folds:

1) Area coverage The Payment Service Provider must be able to cover the overall population and area as enumerated in the appendices, and not limited to government-controlled areas only.

Difficulty level of areas is defined based on physical reach of the area, and are categorized as:

• Easy to reach areas such as cities and large urban settlements • Medium difficulty areas such as small towns • Hard to reach areas such as remote villages Travel time using a car Travel distance Easy Within 2 hours Within 5 km Medium Within 5 hours Within 15 km Difficult Over 5 hours Over 15 km Remoter category is to be assigned when the categorizations differ by time and distance (i.e. the category will be “medium” if travel time is 3 hours and travel distance is 1.5 km)

The Service proposal must include a separate and comprehensive plan for payment procedure in self- administered zones/divisions. These zones/divisions would be progressively added according to the reach of agreement between the government and administrators of that division (notification will be shared every quarter on potential new areas to be added to the area of coverage).

To be able to provide effective coverage in overall areas, the Payment Service Provider may outsource or team up with other service providers with different legal entities, business plans or ownership. DSW contracted Payment Service Provider, will be solely responsible for all its sub-contractor’s actions and omissions and accountable for the delivery of payments services.

2) Mode of Payment The proposal must present a comprehensive disbursement plan to following groups:

• Beneficiaries with cell phones; and • Beneficiaries with no cell phones for all the areas stated in “area coverage” above. Program is planning to provide smart phone readable unique bar/QR code for each beneficiary.

The proposal must indicate the plan and options for beneficiaries to obtain a digital account. A digital account can be interpreted to include:

• a bank account, a mobile money account or a wallet account that allows cash to be electronically credited into it from a bank account, and • cash to be withdrawn from it by the beneficiary via a branch, ATM, agent or other mechanism allowed by the banking regulator under prevailing regulations. Under some circumstances where the beneficiaries without having access to digital platform, cash delivery is required to cover overall beneficiary population. Proposals must indicate current barriers and conditions needed to transition from physical cash to electronic modes in areas, where in the assessment of the provider, electronic means are presently not feasible. At the outset, there may be a lack of alternatives to physical cash delivery, in part due to the relatively remote locations at which beneficiaries reside. These locations generally poorly served by mobile payment agents. The program, however, requires the service providers to totally eliminate physical cash delivery processes within 12-18 months of the contract date. In the interim, up to 10% in Ayeyarwady and 20% in Shan State of the program payments may be made through physical cash delivery. As the program matures, DSW expects the service provider’s network to grow to meet these parameters to avoid cash payment. c. Customer Care

The Payment Service Provider is responsible for central management and reporting of the individual digital accounts for beneficiaries. Demonstrations for, and training of, beneficiaries will be required at the account opening stage. These activities can be undertaken along with program awareness training conducted by DSW/GAD. Ideally a short, step-by-step video demonstration in both simple local language and sign language (for beneficiaries with hearing challenges) that can be understood by the target beneficiaries would serve the purpose of continuous training at reasonable cost. It will be necessary that this demonstration is available to smartphone, streaming and other video platforms to reach the greatest number of beneficiaries.

During the term of service, the Payment Service Provider is responsible for customer care immediately upon receiving various complaints including but not limited to:

1. Liquidity issue at the cash-out point: unavailability of funds including at ATM, agent or COSS (Community Outreach Social Support) sessions location, fraud/misrepresentation of funds by any intermediary; 2. Convenient access to the source of cash like agent, ATM, branch: Typically, beneficiaries should be travel no more than 4 kilometers or within same day trip to and from their residence to collect the benefit. 3. Other transaction related issues (e.g. system downtime, update, etc.)

Any complaints from the customers (beneficiaries) should be attended immediately upon receiving of the complaint. In case if the beneficiary lost the cash card or any form of card as a mode of payment, the service provider is required to issue a replacement card within a reasonable time frame (expecting to be within 3-5 days)

The Payment Service Provider is to present comprehensive customer care procedures to DSW including:

- Contact number (should be available for everyday of the week between 8am-6pm) - Timeline to resolve any issues (expecting to be no longer than 3 days) - Alternate solutions to address the issues - Resolution for unresolved issues due to extenuating circumstances (such as road erosion, temporary shutdown of area due to political concerns) - Reporting process of the issues and resolution

d. Information

Service Provider is to provide below information for payment process including but not be limited to:

• Provision of a map of the physical locations (GPS coordinates) of all inter/intra networks in the proposed areas of operation, including branches, ATM (own or Myanmar Payment Union network) and agent shops. Also, proposals for alternate solution(s) in case there is no existing network in designated area. • Fund transfer procedure to specify o transfer from the MCCT program account to the Payment Service Provider o transfer from the Payment Service Provider to the beneficiaries o transfer from the Payment Service Provider to the MCCT program account for those unreimbursed/unclaimed accounts • Reconciliation procedure • Customer care procedure • Audit procedure: payment service provider to propose appropriate methods of proof of payment that can be verified by the DSW and meet audit standards • Cash Management Process • Comprehensive plan for payment procedure in self-administered zones/divisions

To conduct this work, the MCCT program will provide the following information to the service provider(s):

• List of beneficiaries and proxies including all relevant information to identify them (i.e. complete names, area of residence, pictures, etc.). All program beneficiaries will hold a beneficiary card with a QR code provided by the MCCT program; this card should serve as mean of identification when cashing out the transfer. • Information on beneficiaries’ mobile phones or other phones accessible to them. • Updated data on beneficiaries’ area of residency to take into account when planning cash-out services.

• Updated information on beneficiaries relocating from the original registered location to another location to continue the payment service if the new area of residency is under the program’s coverage, otherwise to discontinue the payment. Through its staff in the field, the program throughout implementation of the program will also facilitate: (i) communication with beneficiaries to inform them about available payment modalities and dates of payday; (ii) registration of beneficiaries with the payment service provider(s) e.g. to open bank accounts or set up mobile banking apps; (iii) dissemination of relevant information to facilitate payment process during regular MCCT’s monthly COSS sessions, when required. In the field the MCCT program will rely on personnel in the field: voluntary community social workers (VCSW) and village and word level whom will be working closely with the MCCT beneficiaries on a regular basis (also responsible for organizing monthly COSS), a Village tract Social Protection Committee whom will meet regularly to ensure the smooth implementation of the program, DSW township, district and regional/state level staff. At times, MCCT field staff may not be able to provide advance information in instances of temporary shutdowns in some conflict-affected areas where conditions are quite fluid. (Temporary shutdowns/lockdowns also may occur not only in conflict-affected areas, but also due to other extenuating circumstances such as disease outbreak or natural disaster, etc.) In such cases the service provider or its agents are responsible for acquiring conditional approval “for not being able to provide the service” from a DSW designated officer for specific cash delivery in that area within the same business day. DSW’s designated officer will then acknowledge and approve (or reject) the exception requested within 24 hours of receiving the request. The request and approval of the exception must be place in both physical and MIS files for audit records.

4. FEES, DISBURSEMENT AND OTHER CHARGES a. Fees

Selection of the Payment Service Provider will be based on competitiveness in terms of service provision and the fee structure that constitutes DSW’s cost of operation. Service fees are inclusive of fees and charges applicable for any method of cash withdrawal used by the beneficiary (for example: beneficiary A may withdraw from an ATM, while, beneficiary B withdraws from an agent shop).

The Payment Service Provider is to propose an appropriate service fee structure based on:

- Coverage, and - Mode of payments 1) Paid into a digital account: the provider(s) must make full amount available to beneficiaries within 3 days of funds disbursed to the provider account

2) Paid in physical cash at a remote location: the provider(s) must record receipt from beneficiaries of a full withdrawal within 7 days of funds disbursed to the provider account

Proposals offering clear metrics and a performance-based incentive structure will be considered, but the award of any such incentives will be fully at the discretion of the DSW. b. Disbursement

Disbursement of benefit amounts: DSW will transfer the total benefit amount, which is calculated by multiplying the number of beneficiaries’ times the per capita benefit, at least 3 days in advance to the Service Provider’s designed trustee account at MEB. The Payment Service Provider is expected to use communication channels like SMS to inform beneficiaries on transactions, account balance, etc. and where no mobile phone available use DSW program staff, and volunteers. The service provider is also responsible for informing beneficiaries of all and the most convenient options available to beneficiaries to receive their payments. This includes documentation they may require to opening a digital account, locations where cash can be withdrawn and timings.

Disbursement of service fees: following 10 days after disbursement to the beneficiary, the Payment Service Provider shall submit a reconciliation report to DSW along with the corresponding invoice for service fees based on area coverage and mode of payment used. DSW will then disburse service fees (for the successfully disbursed accounts) to the Payment Service Provider within 5-10 business days to the Service Provider’s account at MEB.

Estimated disbursement timeline set out below:

Disburse total benefit Total service time that Reconciliation process DSW to settle the amount for the period provider to disburse the for service provider to invoice from the service to service provider beneficiaries, claim service provider depending on the complexity 3 days 20 days 10 days 5-10 days

Number of beneficiaries * number of months during the payment period * payment amount per month

Number of days allowing the service provider to undertake the disbursement process

Number of days service provider to produce reconciliation report and submit to DSW along with invoice for service fees

DSW to settle the service fees to the provider

Above timeline is for reconciliation of payment being made. However;

3) If payment is unable to deliver (either not collected by beneficiary or proxy, or under certain conditions such as temporary instability at the location, etc.) payment provider shall notify DSW at reconciliation period. 4) If there is no claim by beneficiary, service provider is to withhold for 1st missing period at service provider’s account and attempt combined payment for 2 periods at second period due date. If beneficiary miss to collect for 2 consecutive periods (i.e. 6 months payment in total as each period is 3months payment without claimant), fund is to reconcile with DSW. If the beneficiary no longer eligible (such as decease of beneficiary or miscarriage, etc.) and such condition is notified during the disbursement period, the Service Provider is to reconcile with DSW at the end of same disbursement period. c. Impost, Cost and Charges

The Payment Service Provider shall bear all tax as may be levied from time to time under the tax laws of Myanmar by the Government or other authority pertaining to or in connection with the Facility. Furthermore, the Payment Service Provider shall pay all direct and indirect costs, charges and expenses incurred by DSW in connection with the electronic cash payment transfer specifically and shall bear all stamp duty, other duties, taxes, charges and penalties, unless relieved from these through mutual agreement in writing. All payments, cost or charges levied by the Service Provider under the MCCT program shall be made free and clear of and no deduction can be made from the net benefit amount without the permission of the DSW.

5. VERIFICATION AND AUDITING

The MCCT program is specifically focused on mothers and their young children getting cash support for their nutrition needs, the Service Provider is required to make sure that registered beneficiaries or their proxies (Refer to the Proxy Eligibility Criteria in Appendix C) receive benefit payment. The Payment Service Provider’s obligation is to make sure that cash is disbursed to all the beneficiaries at different locations consistently and fairly. The Payment Service Provider is to provide relevant written beneficiary verification procedures for the DSW, which will be used for program audit purposes. The Auditor General of the Union government reserves the right to conduct audits based on the operating procedures provided by the DSW.

The MCCT program (DSW) anticipates conducting random audits for payment quality control purposes, to ensure that beneficiaries have received planned digital disbursements without issues and, subsequently, convenient access to cash centers (ATM, branches, agent shops) for redemption of digital cash. DSW will conduct audit at times with randomly selected beneficiaries on accuracy and timeliness of payment, and challenges/issues in payment process via SMS. Cost of messaging and response from the selected beneficiaries will be paid as program monitoring expenses by MCCT.

6. REPRESENTATION AND WARRANTIES

The Payment Service Provider must be legally formed in the Union of Myanmar under the existing Financial Institution law to provide required services. Submissions in response to this ToRs must be true and accurate in all material respects, must not mislead DSW evaluators and must not omit any material

8 fact. It is required that all information communicated to or supplied by or on behalf of the Payment Service Provider to the DSW from time to time, whether in writing, electronic form or otherwise, be true, correct and complete in all respects as on the date on which it was communicated or supplied. Prior to the section process, the Service Provider is required to submit current status of legal formation documentation filed with the DICA. a. Litigation No litigation (including bankruptcy, winding-up, insolvency etc.), arbitration, administrative or other proceedings are pending or threatened against the Payment Service Provider or its assets, which, if adversely determined, might have a Material Adverse Effect. b. Compliance The Payment Service Provider has complied in all material respects with all laws (including the tax laws). In addition to that, (i) the Payment Agent to distribute, on behalf of MOSWRR, the Cash Transfers to Beneficiaries in accordance the eligibility criteria, disbursement conditions, and approval, administration and reporting arrangements as set out in the Cash Transfer Manual. (ii) the Payment Agent to comply with the Anti-Corruption Guidelines (refer to Appendix D); (iii) the Payment Agent to take appropriate measures to prevent, inform on, respond to and investigate corrupt, fraudulent, collusive, coercive and obstructive practices with respect to their payment of Cash Transfers; (iv) the Payment Agent to allow the Association to inspect its accounts, records and other documents relating to the Project upon the Association’s request and in the company of the Recipient’s representatives; the Payment Agent to allow the IDA Fund , at its request, to have such accounts, records and other documents audited by the IDA Fund or assignee , under the terms of reference acceptable to the Association, with the collaboration of MOSWRR; c. Reporting The Payment Service Provider is responsible to report payment data to CBM or relevant authority as per regulation. d. Contact The Payment Service Provider is required to provide contact information to undertake payment for MCCT program, including but not limited to: • Key personnel to undertake payment service • Personnel to undertake reporting/reconciliation • Contact for customer service e. Duration of contract Initial contract duration is 3 months from the date of award due to Government rules and regulations of contracting by each fiscal year, and upon satisfactory performance, service provider may be given priority for next year award with negotiate service fees from both parties (either DSW or the service provider) entering into the contract.

7. TERMINATION Subject to the expressed terms of the final terms of the agreement between the Payment Service Provider and the DSW of the Union of Myanmar ("Government Partner"), it is understood that the Payment Service Provider and Government Partner will have operational control over the administration and implementation of the Project. Both the quality of the Payment Service Provider’s work and the progress being made toward successfully achieving the goals of the Project will be subject to review by the Government Partner. If at any time the Government Partner is not satisfied with the quality of work or the progress being made toward achieving such goals, it may in its sole discretion (i) withhold payment of additional funds until in its opinion the situation has been corrected; or (ii) declare by written notice its agreement with the Payment Service Provider terminated; and/or (iii) seek any other remedy as may be necessary. The Government Partner's determination as to the quality of work being performed and the progress being made toward such goals, and the remedy it imposes, will be final and will be binding and conclusive upon the Payment Service Provider insofar as further payments by the GOVERNMENT PARTNER are concerned.

8. INDEMNITY

The Payment Service Provider will be solely liable for claims by third parties arising from the Payment Service Provider’s acts or omissions in the course of performing the activities associated with the Project. Under no circumstances will the Government Partner be held liable for such claims by third parties. The Payment Service Provider will indemnify, defend, save and hold harmless the World Bank in respect of such claims. This indemnity will survive the termination or expiration of the Agreement between the Payment Service Provider and the Government Partner.

9. LEGAL REMEDIES AVAILABLE TO MOSWRR

MOSWRR reserves the right to pursue legal remedies under the applicable law upon the Payment Agent’s failure to perform any of its obligations under the Payment Agent Agreement; including, inter alia, suspending and/or terminating the Payment Agent Agreement and obtain a refund of all of the amount of the proceeds of Cash Transfers which have been transferred or misused not in full compliance with the provisions set out in the Payment Agent Agreement and the requirements and the procedures set out in the Cash Transfer Manual.

Appendix A: Area Information, Map, List of Townships and Estimated beneficiaries (Shan State)

Shan State borders China to the north, Laos to the east, and Thailand to the south, and five administrative divisions of Myanmar in the west. With a population of 5.8 million, it covers 155,800 km², almost a quarter of the total area of Myanmar.

Inhabited by many ethnic groups, Shan State is home to several ethnic armed groups controlling administrative areas that have some autonomy from the central government. Transportation is limited in some isolated areas, and general population immediate to Thai and China borders are utilizing infrastructure and services from connecting countries.

MCCT program sponsors and partners are aware of restrictions in the conflict affected areas and restricted zones. These limitations will be identified and managed through discussions with the financial institution(s) undertaking the cash transfer process for beneficiaries in such areas.

It is estimated that about 487,000 beneficiary households would be eligible to receive at least one cash transfer2 in the course of the initial 4 years of program implementation, if the program were to reach all areas of the State. It is expected that at least 60% of this eligible population will access the transfer, with possible variation across townships (e.g. accessibility constraints due to conflict). The table below provides rough estimates, based on Census 2014 data, of eligible beneficiary households by township.

Table x: Estimated number of households eligible to AT LEAST 1 transfer over 4 years – Shan

TAUNGGYI 142,285 KYAUKME 64,401 Taunggyi 31,917 Kyaukme 10,668 Nyaungshwe 15,840 Naung Khio 12,531 Hopon 9,396 Hsipaw 14,732 Hsihseng 12,798 Namtu 4,217

2 During the initial 4 years, about 30% of beneficiaries will receive the equivalent of 32 monthly transfers (maximum possible amount), and a further 30% of beneficiaries will receive at least the equivalent of 20 monthly transfers.

Kalaw 15,562 Namsan(North) 6,038 Pindaya 6,632 Momeik 5,296 Ywarngan 6,902 Mabane 3,964 Yatsauk 10,585 Manton 3,228 Pinlaung 9,621 Minengaw(Sub-Tsp) 1,581 Phekon 8,663 Minelon(Sub-Tsp) 2,145 Kyauktalongyi(Sub-Tsp) 4,718 KUNLON 4,915 Indaw(Sub-Tsp) 3,192 Kunlon 4,915 Naungtayar(Sub-Tsp) 6,457 LAUKINE 12,955 LOILIN 47,265 Laukine 7,524 Loilin 4,380 Kongyan 2,824 Le`char 4,084 Chinshwehaw(Sub-Tsp) 409 Nanhsam(South) 7,719 Mawhtike(Sub-Tsp) 2,199 Kunhing 1,825 HOPAN 19,141 Kehsi 3,722 Hopan 4,591 Mongkai 6,213 Minemaw 5,911 Mineshu 3,571 Panwine 8,120 Panglong(Sub-Tsp) 6,037 Panlon(Sub-Tsp) 519 Kholan(Sub-Tsp) 2,062 MAKMAN 20,229 Karli(Sub-Tsp) 2,641 Makman 1,650 Minenaung(Sub-Tsp) 2,498 Pan San(Pan Kham) 8,725 Minesan (Monsan)(Sub-Tsp) 2,514 Naphang 9,716 LINKHE` 11,665 ManKan(Sub-Tsp) 137 Linkhe` 2,800 KENGTUNG 30,681 Mone` 2,395 Kengtung 14,353 Maukme` 2,828 Minekat 3,724 Minepan 2,168 Mineyan 4,398 Homane(Sub-Tsp) 571 Minelar 3,602 Kengtaung(Sub-Tsp) 903 Mine Pauk(Sub-Tsp) 4,604 LASHIO 51,203 MINESAT 20,370 Lashio 27,047 Minesat 7,239 Theinni 4,739 Minepyin 4,529 Mineye` 4,966 Minetung 1,839 Tantyan 14,452 Minekoke(Sub-Tsp) 1,513 MUSE 37,926 Tontar(Sub-Tsp) 1,228 MuSe 9,827 Ponparkyin(Sub-Tsp) 3,665 Namkham 8,951 Monehta(Sub-Tsp) 358 Kukai 8,475 TACHILEIK 14,829 Monekoe(Sub-Tsp) 2,054 Tachileik 12,379 Manhero/Man Kyo(Sub-Tsp) 568 Talay(Sub-Tsp) 1,526 Pansai(Kyu Kok)(Sub-Tsp) 1,919 Kenglat(Sub-Tsp) 924 Tamoenye(Sub-Tsp) 6,132 MINEPHYAT 9,237 Minephyat 2,555 Mineyaung 2,305 Mineyu(Sub-Tsp) 4,376 TOTAL 487,103

Appendix B: Area Information, Map, List of Townships and Estimated beneficiaries (Ayeyarwadi Region)

Ayeyarwady Division occupies the delta region of the Ayeyarwady river, covering an area of 35,140 square kilometers (13,566 sq. mi). The population is more than 6.5 million, making it the most populous of Myanmar’s states and regions. Large areas have been cleared for paddy cultivation, leading to its preeminent position as the main rice producer in the country, a position it has retained into the 21st century. The area was the site of great devastation when Cyclone Nargis made landfall in 2008, in many cases resulting in villages turning into empty fields. To date, some areas have yet to be reestablished, as they lack infrastructure and therefore opportunities for local trade and business.

It is estimated that about 483,000 beneficiary households would be eligible to receive at least one cash transfer3 in the course of the initial 4 years of program implementation, if the program were to reach all areas of the Region. It is expected that at least 80% of this eligible population will access the transfer, with possible variation across townships. The table below provides rough estimates, based on Census 2014 data, of eligible beneficiary households by township.

Table x: Estimated number of households eligible to AT LEAST 1 transfer over 4 years - Ayeyarwady

PATHEIN 127,427 Kangyidaunt 13,908 Kyaungon 12,740 Kyonpyaw 18,420

3 During the initial 4 years, about 30% of beneficiaries will receive the equivalent of 32 monthly transfers (maximum possible amount), and a further 30% of beneficiaries will receive at least the equivalent of 20 monthly transfers.

Ngaputaw 13,188 Pathein 22,432 Yekyi 8,210 Thapaung 12,065 Ngayokaung (Sub-Tsp) 3,219 Hainggyikyun (Sub-Tsp) 8,948 Shwethaungyan (Sub-Tsp) 3,871 Ngwehsaung(Sub-Tsp) 3,468 Ngathaingchaung(Sub-Tsp) 6,957 PHYAPON 80,725 Kyaiklatt 15,108 Daydaye 15,857 Phyapon 14,639 Bogale 25,214 Ahmar (Sub -Tsp) 9,907 MAUBIN 76,106 Nyaungdon 16,871 Danubyu 14,015 Pantanaw 20,676 Maubin 24,544 MYAUNGMYA 61,095 Myaungmya 23,336 Wakema 22,591 Einme 15,167 LABUTTA 48,960 Mawlamyinegyun 24,329 Labutta 17,967 Pyinsalu (Sub-Tsp) 6,665 HINTHADA 88,981 Kyangin 7,508 Zalun 13,144 Myanaung 17,080 Laymyethna 8,050 Hinthada 26,446 Ingapu 16,752 TOTAL 483,294

Appendix C: Proxy Eligibility Criteria

Proxy eligibility criteria:

- Family member residing with the beneficiary: verified by household registration certificate, the village head or the homeowner. - Sibling or immediate family member of the beneficiary who are residing in different household: verified by the village/ward head. - For some special cases, such as a beneficiary lost all family members or relatives due to the extenuating circumstances, a trusted person should be appointed by the village/ward head and the volunteer MCCT member at the location. - Proxy appointed must be 18 years old and above at the time of registration.

Appendix D: World Bank Anti-Corruption Guidelines https://policies.worldbank.org/sites/ppf3/PPFDocuments/40394039anti- corruption%20guidelines%20(as%20revised%20as%20of%20july%201,%202016).pdf

Appendix E: Consideration Factors for Service Provider Selection

Version 1

No. Technical Weighted (%) Complexity of service process/application: digital literacy is very low in some areas; therefore, the program will require the Service 1 10% Provider to educate users to set up user accounts and make efficient use of these. Coverage/logistic: proximity to the beneficiaries must be 2 25% reasonable to enable access and resulting inclusion 3 Timeliness of payment 10% 4 Cash management process 10% Financial 5 Service cost and efficiency 30% 6 Legal framework: KYC requirements, others if any 5% General 7 Reputation in the market 10% Total 100%

Version 2

No. Details Weight %

Technical

Ability to enroll the maximum number of beneficiaries and 1 provide access to a digital account in the most convenient 20 manner to the beneficiary, into the program

Delivery of a majority of payments to beneficiaries account or in cash

2 a) within 7 days of disbursement 15 b) to cover 95% of beneficiaries

c) correct amount

Financial

3 Having authorization to offer payment service by the regulator and 15 similar experiences to provide payments

5 Robust financials: defined by capital adequacy, plan and ability 20 to make long term investments in technology, distribution

5 Ease of reconciliation and reporting 10

General

6 Corporate governance 20