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Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2224 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 213.60 MILLION (US$ 300.00 MILLION EQUIVALENT) Public Disclosure Authorized TO THE PEOPLE’S REPUBLIC OF BANGLADESH FOR A CASH TRANSFER MODERNIZATION PROJECT JANUARY 4, 2018 Public Disclosure Authorized Social Protection & Jobs 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 CURRENCY EQUIVALENTS (Exchange Rate Effective October 31, 2017) Currency Unit = BDT BDT 83.160014 = US$ 1.000000 US$ 1.404690 = SDR 1.000000 FISCAL YEAR July 1 – June 30 Regional Vice President: Annette Dixon Country Director: Qimiao Fan Senior Global Practice Director: Michal J. Rutkowski Practice Manager: Stefano Paternostro Task Team Leader(s): Yoonyoung Cho, Ashiq Aziz ABBREVIATIONS AND ACRONYMS BBS: Bangladesh Bureau of Statistics MoSW: Ministry of Social Welfare BCC: Bangladesh Computer Council MSW: Municipal Social Worker BDT: Bangladeshi Taka NCB: National Competitive Bidding BEFTN: Bangladesh Electronic Fund Transfer Network NHD: National Household Database BP: Business Procedure NID: National Identification BPO: Bangladesh Post Office NPF: New Procurement Framework BRIS: Birth Registration Information System NPSB: National Payment Switch Bangladesh BRN: Birth Registration Number NSSS: National Social Security Strategy CAD: Civil Audit Directorate OCAG: Officer of the Comptroller & Auditor General CGAP: Consultative Group to Assist the Poorest OP: Operational Policy CMC: Central Monitoring Committee PDO: Project Development Objective CPF: Country Partnership Framework PIC: Project Implementation Committee CPTU: Central Procurement Technical Unit PMO: Prime Minister's Office CRI: Climate Risk Index PMT: Proxy‐Means‐Test D2C: Direct‐2‐Citizen PPP: Purchasing Power Parity DBT: Direct Benefit Transfer PPSD: Project Procurement Strategy for Development DCAR: Disability & Children‐At‐Risk PSC: Project Steering Committee DLI: Disbursement‐Linked Indicator PSP: Payment Service Provider DSS: Department of Social Services PTD: Posts & Telecommunications Division EEP: Eligible Expenditure Program RCT: Randomized Control Trial e‐GP: National e‐Government Procurement SBD: Standard Bidding Documents EGPP: Employment Generation Program for the Poorest SCD: Systematic Country Diagnostic FAPAD: Foreign Aided Projects Audit Directorate SDR: Special Drawing Rights FFW: Food For Work SECF: Small Ethnic Communities Framework GDP: Gross Domestic Product SECP: Small Ethnic Communities Plan GNI: Gross National Income SMF: Social Management Framework GPN: General Procurement Notice SNSP: Safety Net Systems for the Poorest GR: Gratuitous Relief SOE: Statements of Expenditure GRS: Grievance Redress Service SPBMU: Social Protection Budget Management Unit HIES: Household Income and Expenditure Survey SRFP: Standard Request For Proposals IBAS: Integrated Budget & Accounting System SSO‐UCD: Social Services Officer (Urban Community Development) IBRD: International Bank for Reconstruction & Development STEP: Systematic Tracking of Exchanges in Procurement ICT: Information and Communications Technology TCV: Time Cost Visit IDA: International Development Association TR: Test Relief IFC: International Finance Corporation UDC: Union Digital Center IFR: Interim un‐audited Financial Report UN: United Nations ISPP: Income Support Program for the Poorest UNDB: United Nations Development Business KWPF: Korean World Bank Partnership Facility UNO: Upazila Nirbahi Officer LGD: Local Government Division US$: United States Dollar MDC: Municipal Digital Center USSO: Upazila Social Services Officer MIS: Management Information System USW: Union Social Worker MoDMR: Ministry of Disaster Management & Relief VGF: Vulnerable Group Feeding MoE: Ministry of Education WB: World Bank MoSW: Ministry of Social Welfare The World Bank Cash Transfer Modernization Project (P160819) BASIC INFORMATION Is this a regionally tagged project? Country(ies) Financing Instrument No Investment Project Financing [ ] Situations of Urgent Need of Assistance or Capacity Constraints [ ] Financial Intermediaries [ ] Series of Projects Approval Date Closing Date Environmental Assessment Category 31‐Jan‐2018 30‐Jun‐2023 B ‐ Partial Assessment Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective is to improve the transparency and efficiency of selected cash transfer programs for vulnerable populations by modernizing service delivery. Components Component Name Cost (US$, millions) Enhancement of Cash Transfer Programs 270.00 Modernization of Service Delivery 30.00 Organizations Borrower : Economic Relations Division Implementing Agency : Department of Social Services PROJECT FINANCING DATA (US$, Millions) Page 4 of 50 The World Bank Cash Transfer Modernization Project (P160819) [ ✔ ] [ ] IBRD [ ✔ ] IDA Credit [ ] IDA Grant [ ] Trust [ ] Counterpart Funds Parallel Funding Financing FIN COST OLD Total Project Cost: Total Financing: Financing Gap: 1,342.50 1,342.50 0.00 Of Which Bank Financing (IBRD/IDA): 300.00 Financing (in US$, millions) FIN SUMM OLD Financing Source Amount Borrower 1,042.50 IDA‐61630 300.00 Total 1,342.50 Expected Disbursements (in US$, millions) Fiscal Year 2018 2019 2020 2021 2022 2023 2024 Annual 1.00 26.00 28.00 61.00 73.00 51.00 60.00 Cumulative 1.00 27.00 55.00 116.00 189.00 240.00 300.00 INSTITUTIONAL DATA Practice Area (Lead) Social Protection & Labor Contributing Practice Areas Page 5 of 50 The World Bank Cash Transfer Modernization Project (P160819) Climate Change and Disaster Screening This operation has been screened for short and long‐term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project‐relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK‐RATING TOOL (SORT) Risk Category Rating Substantial 1. Political and Governance Moderate 2. Macroeconomic Moderate 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Substantial 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Low 7. Environment and Social Substantial 8. Stakeholders 9. Other 10. Overall Substantial COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✔] No Page 6 of 50 The World Bank Cash Transfer Modernization Project (P160819) Does the project require any waivers of Bank policies? [ ] Yes [✔] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ Legal Covenants Sections and Description The Recipient, through the Department of Social Services, shall, by no later than two months after the Effectiveness Date, establish and maintain throughout the Project implementation period, a Project Unit to be headed by a Project Director and include one financial management consultant, one procurement consultant, and one social safeguards consultant, with qualifications, experience and terms of reference acceptable to the Association, for the purpose of day‐to‐day implementation of the Project. The Project Unit shall be vested with functions, resources and powers, and shall be provided with other qualified, experienced and competent staff, in sufficient numbers, in order to effectively carry out its duties. Sections and Description The Recipient, through the Department of Social Services, shall, by no later than one month after the Effectiveness Date, establish and maintain throughout the Project implementation period, a Project Implementation Committee to be chaired by the Director General of the Department of Social Services, for the purpose of providing operational guidance for the Project, and ensuring compliance with rules and regulations of the Recipient and the Association. The Project Director and a representative from the Ministry of Social Welfare shall be mandatory members of the Project Implementation Committee. Page 7 of 50 The World Bank Cash Transfer Modernization Project (P160819) Sections and Description The Recipient, through the Department of Social Services, shall, throughout the Project implementation period, ensure that all activities under the Project are carried out in accordance with the Social Management Framework and the Small Ethnic Communities Planning Framework. Sections and Description The Recipient, through the Department of Social Services, shall, engage an independent entity or entities for the purpose of verifying the DLI Targets, with qualifications, experience, and terms of reference satisfactory to the Association, to undertake, at least once per fiscal year, a verification process, in accordance with the Verification Protocols