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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 65797 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED CREDIT IN THE AMOUNT OF SDR 29.6 MILLION (US$ 46.0 MILLION EQUIVALENT) TO THE REPUBLIC OF BENIN FOR THE DECENTRALIZED COMMUNITY DRIVEN Public Disclosure Authorized SERVICES PROJECT (PHASE I) ADAPTABLE PROGRAM LENDING (APL) April 10, 2012 This document is being made publicly available prior to Board consideration. This does not Public Disclosure Authorized imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (ExchangeRate Effective February 29, 2012) Currency Unit = CFA Franc 488 FCFA = US$1 US$ 1.56 = SDR 1 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ADV Association de Développement Initiative Villageoise ESMF Environmental and Social APDC Agents Porteurs de Développement Management Framework Communautaire EU European Union APL Adaptable Program Loan FADeC Fonds d'Appui au Développement AGETIP Agence d'Exécution des Travaux des Communes d'IntérêtPublic FCFA Francde la Communauté AGETUR Agence d'Exécution des Travaux FinancièreAfricaine Urbains FM Financial Management ANCB Association Nationale des FY Fiscal Year Communes du Bénin GDP Gross Domestic Product BCEAO Banque Centraledes États de GIZ Deutsche Gesellschaftfir l'Afrique de l'Ouest InternationaleZusammenarbeit CAA Caisse Autonome d'Amortissement (GIZ) CAS Country Assistance Strategy GMT Grassroots Management Training CCS Comités Communaux de Suivi ICB International Competitive Bidding CDD Community Driven Development IDA International Development CDPR Comités Départementaux des Association Pistes Rurales IFR Interim Financial Report CGC Comité de Gestion Communautaire INSAE Institut National de la Statistique et CONAFIL Commission Nationale des de l'Analyse Economique Finances Locales IGAA Inspection Générale des Affaires CPS Centres de Promotion Sociale Administratives CTNPR Conseil Technique National des IGF Inspection générale des finances Pistes Rurales ISP Implementation Support Plan DAT Délégation à l'Amenagement du KfW KreditanstaltfürWiederaujbau Territoire M&E Monitoring and Evaluation DGAE Direction Générale de MDG Millennium Development Goals l'Administrationde l'Etat MDGLAAT Ministry of Decentralization, Local DGB Direction Générale du Budget Govemment, and Administration DGDGL Direction Générale de la and Development of the Territory Décentralisationet de la MEMP Ministry of Maternal and Primary Gouvernance Locale Education DP Direct payment NCB National Competitive Bidding DPP Direction de la Programmationet NGO Non-govemmental organization de la Prospective ORAF Operational Risk Assessment EFA/FTI Education for All / Fast Track Framework PAD Project Appraisal Document ROSC Reports on the Observance of PDC Plan de Développement Communal Standards and Codes PDO Project Development Objectives SCRP-3 Stratégie de Croissancepour la PIM Project Implementation Manual Réduction de la Pauvreté PIU Project Implementation Unit SSDCC Secrétariataux services PNDCC Projet National d'appui au décentralisés conduits par les Développement Conduit par les communautés (Secretariat for Communautés Decentralized Community Driven PSDCC Projet de Services Décentralisés Services) Conduits par les Communautés SYSCOHADA Système Comptable de (Decentralized Community Driven l'Organisationpour Services Project) l'Harmonisationen Afrique du PONADEC PolitiqueNationale de Droit des Affaires Décentralisationet de UNICEF United Nations Children's Fund Déconcentration WA Withdrawal Application RPF Resettlement Policy Framework Regional Vice President: Obiageli K. Ezekwesili Country Director: Madani M. Tall Sector Director: Ritva Reinikka Sector Manager: Lynne Sherburne-Benz Task Team Leader: John Van Dyck Table of Contents I. Strategic Context.. ............................................................... 1 A. Country Context... ........................................................... 1 B. Sectoral and Institutional Context................. ...................... ........ 2 C. Higher Level Objectives to which the Project Contributes. ................................. 5 II. Project Development Objectives (PDO) ................................................. 6 A. PDO ...................................................................... 6 1. Project Beneficiaries ......................................................... 6 2. PDO Level Results Indicators..................................................6 III. Project Description .............................................................. 6 A. Project components.. ......................................................... 6 B. Project Financing ............................................................ 12 C. Program Objective and Phases...................................................12 D. Lessons Learned and Reflected in the Project Design.................... ............... 14 IV. Implementation. .............................................................. 15 A. Institutional and Implementation Arrangements..................... .................. 15 B. Results Monitoring and Evaluation................................................16 C. Sustainability ............................................................... 16 V. Key Risks and Mitigation Measures...................................................17 A. Risk Ratings Summary Table ..................................................... 17 B. Overall Risk Rating Explanation.................................................17 VI. Appraisal Summary ............................................................. 18 A. Economic and Financial Analysis.................................................18 B. Technical ................................................................... 19 C. Financial Management.........................................................20 D. Procurement ................ ................................................ 22 E. Social (including safeguards).....................................................23 F. Environment (including safeguards)............................................... 23 Annex 1: Results Framework and Monitoring................................................ 25 Annex 2: Detailed Project Description..................................................... 29 Annex 3: Implementation Arrangements................................................... 46 A. Overall Implementation Arrangements............................................. 46 B. Funds Flow and Disbursement arrangements.........................................47 C. Procurement Arrangements..................................................... 52 Annex 4: Operational Risk Assessment Framework (ORAF)...................................... 56 Annex 5: Implementation Support Plan.....................................................59 PAD DATA SHEET Benin Decentralized Community Driven Services Project (APL Phase I) PROJECT APPRAISAL DOCUMENT AFRICA AFTSP Basic Information Date: 10-Apr-2012 Sectors: Sub-national government administration (30%), Other social services (30%), Primary education (30%), Health (5%), Water supply (5%) Country Director: Madani M. Tall Themes: Other human development (40%), Decentralization (40%), Social Sector Manager/Director: Lynne D. Sherburne- safety nets (20%) Benz/Ritva S. Reinikka Project ID: P117764 EA Category: B - Partial Assessment Lending Instrument: Adaptable Program Loan Team Leader(s): John Van Dyck Joint IFC: No Borrower: Republic of Benin Responsible Agency: Ministry of Decentralization, Local Government, and Administration and Development of the Territory Contact: Victorin Djacoto Title: Permanent Secretary, CONAFIL Telephone No.: (229) 2130-4030 Email: [email protected] Project Implementation Period: Start Date: 03-May-2012 End Date: 30-Jun-2016 Expected Effectiveness Date: 30-Sep-2012 Expected Closing Date: 30-Jun-2016 Project Financing Data(US$M) Loan [ ] Grant Term: standard IDA credit [X] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 46.00 Total Bank Financing (US$M): 46.00 Financing Source Amount(US$M) BORROWER/RECIPIENT 0.00 International Development Association (IDA) 46.00 Total 46.00 Expected Disbursements (in USD Million) FiscalYear 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual 10.00 14.00 14.00 8.00 0.00 0.00 0.00 0.00 0.00 Cumulative 10.00 24.00 38.00 46.00 46.00 46.00 46.00 46.00 46.00 Project Development Objective(s) To improve access to decentralized basic social services and to mainstream the CDD approach for such services. Components Component Name Cost (USD Millions) Service Delivery Grants to Communes 36.00 Pilot Social Safety Net Program 5.00 Technical Assistance and Capacity Building 5.00 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