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World Bank Document 40962 Public Disclosure Authorized Public Disclosure Authorized TRUST FUND FOR ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE DEVELOPMENT (TFESSD) ANNUAL REPORT MAY 1, 2006 TO JANUARY 31, 2007 Public Disclosure Authorized Public Disclosure Authorized 2 TFESSD ANNUAL REPORT TABLE OF CONTENTS I. INTRODUCTION...................................................................................................5 II. WINDOW REPORTS ............................................................................................6 A. SOCIAL DEVELOPMENT WINDOW REPORT .............................................. 6 B. ENVIRONMENT WINDOW REPORT ........................................................... 37 C. POVERTY WINDOW REPORT..................................................................... 62 D. SOCIAL PROTECTION WINDOW REPORT................................................ 80 III. ADMINISTRATION AND GOVERNANCE ........................................................101 A. SEMI-ANNUAL MEETINGS ........................................................................ 101 B. FY08 CALL FOR PROPOSALS AND APPROVED PROPOSALS ............. 102 C. OTHER WORK/ISSUES.............................................................................. 108 IV. FINANCIAL SITUATION ...................................................................................111 ANNEX 1 PORTFOLIO TABLE (LIST OF ACTIVITIES) – see separate excel file ...115 ANNEX 2 ENVIRONMENT’S ANNUAL STRATEGIC REVIEW ...............................117 ANNEX 3 ENVIRONMENT’S EXTENSIONS, FUND REPROGRAMMING AND CANCELLED ACTIVITIES .......................................................................121 ANNEX 4 NEW PROCEDURES FOR TFESSD OPEN CALL FOR PROPOSALS ..123 ANNEX 5 AGENDA AND BACKGROUND NOTE FOR JUNE 2006 TFESSD CONFERENCE ........................................................................................125 ANNEX 6 PROGRAM OF LEARNING EVENTS FOR NOVEMBER 2006 CONSULTATION MEETINGS..................................................................128 ANNEX 7 FY08 CALL FOR CONCEPT NOTES ......................................................131 ANNEX 8 LIST OF FY08 APPROVED FULL PROPOSALS ....................................136 ANNEX 9 WEB STATISTICS SUMMARY REPORT ................................................140 ANNEX 10 TERMS OF REFERENCE OF EVALUATION OF TRUST FUND ............143 ANNEX 11 PROGRESS REPORTS OF ONGOING AND RECENTLY COMPLETED ACTIVITIES (sent separately in CD-ROM)...............................................160 3 4 I. INTRODUCTION 1. This document highlights TFESSD achievements during the period from May 2006 to January 2007. The World Bank reports on the progress of TFESSD activities, portfolio performance and development have earlier been submitted every half year. The Bank and the donors have now agreed to report annually on TFESSD activities in spring. From next year the reporting period will run from February 2007 to January 2008. This report contains the following main sections: Window Reports, Administration and Governance and Financial Summary. 2. Since 1999 the TFESSD has supported 317 projects in more than 50 low- and middle- income countries. Currently there are 135 ongoing activities. As of January 31, 2007, donor contributions from Norway and Finland to the TFESSD totaled $87 million, of which US$71 million has been disbursed or committed. 44% of disbursed or committed funds have gone to activities in Africa. 3. The Social Development, Environment, Poverty and Social Protection Window Reports in Chapter II respond to donor request for information on impact, capacity building, knowledge sharing and partnerships. This year each Window Report also includes a chapter on TFESSD’s role and value added in the sector, an issue which will be pursued in the upcoming evaluation of the fund. The Window Reports also each show the progress and achievements during the reporting period and include summaries of ongoing and recently completed activities. 4. The 135 ongoing activities are distributed among the windows as follows: 45 in Social Development, 46 in Environment, 18 in Poverty and 26 in Social Protection. The portfolio is performing well under all windows. 5. Over the years 105 activities have been supported under the Social Development Window, 115 under the Environment Window, 64 under the Poverty Window and 33 under the Social Protection Window. As of January 31, 2007, Social Development has received US$ 27,3 million, Environment US$ 33 million, Poverty US$ 9,7 million and Social Protection US$ 4,4 million. 6. Chapter III is dedicated to administration and governance issues, with a focus on FY08 funding procedures. The detailed description is intended to serve as background for the discussion of new procedures at the consultation meeting. In line with the Bank's recommendations the donors have agreed to fund 45 of the 57 received proposals. Twenty-two proposals were approved on condition of resubmitting revised proposals. The total funding for FY08 is $6,495,000 and $12,307,000 over the whole period. Fifty percent of the funding is earmarked to the two environment themes. The Africa share is 56%. 7. In Chapter IV, the Bank reports on the financial situation of the trust fund. 5 II. WINDOW REPORTS A. SOCIAL DEVELOPMENT WINDOW REPORT 1. Summary 1. The Social Development activities are grouped under six major themes: (a) Community-Driven Development and Local Governance; (b) Social Inclusion and Diversity in Decision-making; (c) Poverty, Social Impact and Empowerment; (d) Innovations for Improved Governance and Social Accountability; (e) Country/Macro Level Social Analysis; and (f) Global and Regional Social Development Strategies and Initiatives. 2. Half of the active portfolio under the Social Development window consists of activities under two themes, namely CDD, and Innovations for Improved Governance and Social Accountability, with the rest divided among the other themes. This highlights the increasing importance of issues related to community empowerment and demand-side governance within the Bank. 3. There are 10 active and 5 closed projects under the CDD and Local Governance theme. The majority of these activities are designed to deepen and improve CDD operations, focusing on use of CDD approaches in conflict contexts, improving monitoring and evaluations systems, inclusion of women and youth in CDD activities, and strengthening links between communities and local governments. The work on social capital and CDD helped generate the legitimacy of putting issues of empowerment, social capital enhancement and demand for good governance into several Country Assistance Strategies in East Asia and Africa. Knowledge generated from activities on the use and impacts of CDD approaches in conflict-affected countries has been widely applied by Bank and client teams, as well as other donors, working on CDD in conflict environments, while monitoring and evaluation studies and tools developed in the East Asia region have informed several Bank projects. 4. The Social Inclusion and Diversity in Decision-Making theme has 4 active and 8 closed projects. Most activities focus on the inclusion of women, youth and other vulnerable groups in decision making, and knowledge generated has had an impact on inclusion of vulnerable groups in client countries as detailed in the next section (e.g., the work on inclusion of Afro-descendants in collection of official population data, and the research on indigenous people and poverty in Latin America). 5. There are 5 ongoing and 4 closed projects under the Poverty, Social Impact and Empowerment theme, which focus on the social impacts of poverty and promoting empowerment of excluded groups. Analytical research being conducted under these activities include understanding the social and economic drivers of violence by gender, and the role of rural institutions and their potential for increasing access of rural poor to private and public services. These activities have led to important new lessons for Bank operations and sector strategies. 6. The Improved Governance and Social Accountability theme has 12 active and 6 closed projects and is an area of growing importance within the Bank, as the Bank views good governance and anti-corruption as central to its mission of poverty reduction. Activities under this theme focus on strengthening demand-side governance through capacity building of in- country stakeholders at the local level, and the use of innovative tools and methodologies such as 6 citizen report cards, community scorecards and participatory budgeting and expenditure tracking. Several successful pilots have been completed in ECA, SAR, AFR and LCR resulting in improved service delivery and strengthened networks of social accountability practitioners. 7. There are 6 ongoing and 3 closed activities under the Country/Macro Level Social Analysis theme. The activities consist of upstream research designed to improve the understanding of a country’s social context, and how social, political and cultural factors influence the opportunities and constraints to a more equitable, inclusive development and better governance. The TFESSD has helped support development of an Integrated Country Social Analysis (CSA) Framework based on ongoing CSA pilots, and documentation and dissemination of the lessons coming out of the pilots. 8. There are 6 ongoing and 2 closed activities under the Global and Regional Social Development Strategies and Initiatives theme. The key focus is on implementing and mainstreaming the global and regional Social
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