The World Bank Report No: ISR6008

Implementation Status & Results Social Investment Fund III (P094225)

Operation Name: Social Investment Fund III (P094225) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 09-Jul-2011 Country: Armenia Approval FY: 2007

Public Disclosure Authorized Product Line:IBRD/IDA Region: AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Armenia Social Investment Fund Key Dates Board Approval Date 26-Oct-2006 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date 15-May-2009 Last Archived ISR Date 09-Jul-2011 Public Disclosure Copy Effectiveness Date 20-Dec-2006 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 06-May-2010

Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to support the Government's policy to raise the living standards of the poor and vulnerable groups through: (i) improving the quality and access, and increasing the coverage of community infrastructure and services in poor communities, and for the most vulnerable groups in response to critical needs; (ii) promoting complementary institutional capacity building at the community and municipal level so as to improve the quality and sustainability of community investments and service delivery, increase accountability, and enhance greater stakeholder empowerment at the local level; and (iii) creation of employment associated with the provision of community infrastructure and services. Public Disclosure Authorized Has the Project Development Objective been changed since Board Approval of the Project?

● Yes No

Component(s)

Component Name Component Cost Community Investments 22.59 Local Level Instl. Strengthening 0.55 Project Management 1.86

Overall Ratings Previous Rating Current Rating

Public Disclosure Authorized Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating

Public Disclosure Copy Implementation Status Overview The project remains on track to achieve its development objectives. By January 2012, 233 micro-projects have been completed and 27 are ongoing. Strong implementation progress is also reflected in the disbursement figures, with: ASIF III original credit fully disbursed; First Additional Financing fully disbursed and closed; and Second Additional Financing fully

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committed and 76% disbursed.

The distribution of the total value of the approved micro-projects under the Second Additional Financing so far is the following: 45% for micro-projects in the most vulnerable communities, 46% for micro-projects in vulnerable communities and 9 percent for micro-projects in least vulnerable communities.

Further progress has been recorded in the implementation of the comprehensive evaluation strategy for the project, aimed at assessing the project's impact beyond the monitoring indicators, with Quality of Civil Works Assessment, Civil Works Cost-Effectiveness Assessment and Beneficiaries Assessment completed and the Assessment of Sustainability, Infrastructure Maintenance and Labor Impact of ASIF III Micro-Projects about to be finalized.

The original credit will close on March 31, 2012, while the extension of the closing date for the Second Additional Financing to September 30, 2012 is being processed. Negotiations for a proposed Third Additional Financing credit in the amount of SDR 7.1 million (US$11.0 million equivalent) were successfully completed on December 22, 2011, and the credit is scheduled to be considered by the World Bank's Board of Directors on February 14, 2012. Retroactive financing would be enabled under the proposed Third Additional Financing and the ASIF has already identified the first seven micro-projects. Public Disclosure Copy

Locations Country First Administrative Division Location Planned Actual Armenia Vayots' Dzori Marz Zedea

Armenia Vayots' Dzori Marz

Armenia Ararati Marz

Armenia 'i Marz

Armenia Vayots' Dzori Marz

Armenia Vayots' Dzori Marz Tarratumb

Armenia Syunik'i Marz Tandzat'ap'

Armenia Syunik'i Marz

Armenia Syunik'i Marz

Armenia Vayots' Dzori Marz Sers

Armenia Vayots' Dzori Marz Rrind

Armenia Syunik'i Marz Nyuvadi

Armenia Syunik'i Marz

Armenia Syunik'i Marz Korrnidzor

Armenia Syunik'i Marz Public Disclosure Copy Armenia Syunik'i Marz

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Country First Administrative Division Location Planned Actual Armenia Ararati Marz Kakhtsrashen

Armenia Syunik'i Marz

Armenia Vayots' Dzori Marz '

Armenia Vayots' Dzori Marz Yelp'in

Armenia Syunik'i Marz Brrnakot'

Armenia Ararati Marz Baghramyan

Public Disclosure Copy Armenia Ararati Marz

Armenia Ararati Marz Artashat

Armenia Ararati Marz Ararat

Armenia Syunik'i Marz '

Armenia Syunik'i Marz Agarak

Armenia Ararati Marz Urts'adzor

Armenia Ararati Marz Ararati Marz

Armenia Syunik'i Marz Syunik'i Marz

Armenia Vayots' Dzori Marz Vayots' Dzori Marz

Armenia Geghark'unik'i Marz Zolak'ar

Armenia Aragatsotni Marz Yernjatap'

Armenia K'aghak' K'aghak' Yerevan

Armenia Geghark'unik'i Marz

Armenia Ararati Marz

Armenia Tavushi Marz

Armenia Geghark'unik'i Marz Vardenik

Armenia Geghark'unik'i Marz

Public Disclosure Copy Armenia Geghark'unik'i Marz

Armenia Aragatsotni Marz

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Armenia Lorru Marz T'umanyan

Armenia K'aghak' Yerevan Tazagyukh

Armenia Lorru Marz

Armenia Lorru Marz Step'anavan

Armenia K'aghak' Yerevan Nubarashen

Armenia Shiraki Marz Shirakavan

Armenia K'aghak' Yerevan Verin Shengavit' Public Disclosure Copy Armenia Geghark'unik'i Marz Sevan

Armenia Kotayk'i Marz Saralanj

Armenia Shiraki Marz

Armenia Aragatsotni Marz

Armenia Armaviri Marz Hoktember

Armenia Lorru Marz

Armenia Shiraki Marz Nor Kyank'

Armenia Kotayk'i Marz Nor

Armenia Ararati Marz Norashen

Armenia Aragatsotni Marz

Armenia Ararati Marz Mkhch'yan

Armenia Geghark'unik'i Marz

Armenia Shiraki Marz

Armenia Geghark'unik'i Marz Madina

Armenia Shiraki Marz Lusaghbyur

Armenia Armaviri Marz Lusagyugh

Armenia Lorru Marz Lerrnapat Public Disclosure Copy Armenia Shiraki Marz

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Armenia Lorru Marz

Armenia Aragatsotni Marz Kat'naghbyur

Armenia Aragatsotni Marz Kasakh

Armenia Geghark'unik'i Marz

Armenia Ararati Marz Kanach'ut

Armenia Geghark'unik'i Marz Gavarr

Armenia Aragatsotni Marz Public Disclosure Copy Armenia Lorru Marz Shahumyan

Armenia Tavushi Marz

Armenia Shiraki Marz

Armenia Lorru Marz

Armenia Lorru Marz '

Armenia Aragatsotni Marz

Armenia Aragatsotni Marz Gekhadzor

Armenia Shiraki Marz Jrap'i

Armenia Geghark'unik'i Marz Dvoragyukh

Armenia Lorru Marz

Armenia Tavushi Marz

Armenia Lorru Marz

Armenia Aragatsotni Marz Chknakh

Armenia Tavushi Marz Ch'inari

Armenia Kotayk'i Marz Ch'arents'avan

Armenia Tavushi Marz

Armenia Ararati Marz Public Disclosure Copy Armenia Armaviri Marz Aygeshat

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Armenia Tavushi Marz

Armenia Shiraki Marz

Armenia Aragatsotni Marz

Armenia Shiraki Marz Art'ik

Armenia Aragatsotni Marz Arteni

Armenia Aragatsotni Marz

Armenia Aragatsotni Marz Public Disclosure Copy Armenia Shiraki Marz Amasia

Armenia Lorru Marz Alaverdi

Armenia Kotayk'i Marz

Armenia Lorru Marz

Armenia Aragatsotni Marz

Armenia Geghark'unik'i Marz Geghahovit

Armenia Aragatsotni Marz Aragatsotni Marz

Armenia Armaviri Marz Armaviri Marz

Armenia Geghark'unik'i Marz Geghark'unik'i Marz

Armenia Kotayk'i Marz Kotayk'i Marz

Armenia Lorru Marz Lorru Marz

Armenia Shiraki Marz Shiraki Marz

Armenia Tavushi Marz Tavushi Marz

Armenia Armaviri Marz Arratashen

Armenia Armaviri Marz Voskehat

Armenia Armaviri Marz Echmiadzin

Armenia Ararati Marz Dimitrov Public Disclosure Copy Armenia K'aghak' Yerevan Nor Marash

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Armenia Geghark'unik'i Marz Lusakunq

Armenia Shiraki Marz

Armenia Ararati Marz

Armenia Not Entered

Armenia Ararati Marz Narek

Armenia Ararati Marz

Armenia Armaviri Marz Vanand Public Disclosure Copy

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Contribution to Short-term employment and Text Value 0 1) Completed MPs: 447,400 1) Completed MPs: 535,000 income generation in poor participating job days and $7.23 million job days and $US8.8 million communities wage income wage income 2) school furniture 2) school furniture manufacturing: 39,345 job manufacturing: 40,600 job days created and US days created and$US441,000 $432,795 wage income from wage income generated local manufacturing generated Date 02-Jan-2012 30-Jun-2014 Comments target on track/exceeded Enhancement of Poverty Targeting through a Text Value 0 911 911 community mapping and profiling exercise Date 02-Jan-2012 30-Jun-2014 designed to identify the neediest communities in Armenia Comments Ranking updated in At the time of ASIF III December 2011 as part of the preparation there were 930 preparation of the Third communities in Armenia. Additional Financing. Communities in Yerevan (12), Gyumry and Vanadzor were excluded from community mapping and profiling, four communities ceased to exist, while one community is not under the Armenian Government's control. End- Public Disclosure Copy target has been revised under

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the Third Additional Financing to 911. Empowerment of beneficiary communities Text Value 0 123 158 beneficiary communities through capacity building to effectively plan and empowered under the ASIF III manage their investments on a sustainable (including first, second and basis and strengthen partnerships with local third Additional Financing) government. Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments The baseline and the target values have been corrected under the Third Additional Financing to: reflect the number of communities that Public Disclosure Copy have been empowered to effectively plan and manage their investments through preparation and implementation ASIF MPs under ASIFIII; and (ii) exclude double-counting of the communities which implemented more than one MP under ASIF III. Strengthened social service delivery system Text Value 0 under ASIF Program 2 3 priority social services through integrated social service centers, centers completed specialized centers for vulnerable groups. Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments Construction of the third center in the final stage. Capacity building at the municipal level to train Text Value 0 (1,800 officials received 515 715 (2,515 officials received municipal officials in financial management. training under ASIF I and II). training under the ASIF program). Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments End target for main credit, AF1 and AF2 (500) exceeded Increased community infrastructure and Text Value 0 MPs (619 Mps. completed 233 (852 under the ASIF 283 MPs completed under services providing higher quality and better under ASIF I and II Projects) program) ASIF III plus first, second and access in poor and vulnerable communities third Additional Financing targeted under the project. (902 MPs. under the ASIF program) Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments Currently additional 27 MPs Public Disclosure Copy under construction; target on track

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Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of people in rural areas provided with Number Value 0.00 19575.00 0.00 access to Improved Water Sources under the Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 project Comments there were no pre-established targets as these are demand- driven sub-projects Piped household water connections that are Number Value 0.00 1182.00 0.00 benefiting from rehabilitation works undertaken Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 by the project Comments there were no pre-established

Public Disclosure Copy targets as these are demand- driven sub-projects Health facilities constructed, renovated, and/or Number Value 0.00 18.00 0.00 equipped Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments 12 health facilities there were no pre-established reconstructed by ASIF I; 9 by targets as these are demand- ASIF II driven sub-projects Number of community centers benefiting from Text Value 0 35 40 furniture Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments on track Beneficiary satisfaction with services received Text Value NA 80 satisfactory rate 70% statisfactory rate from the ASIF. Date 20-Dec-2006 01-Jun-2011 30-Jun-2014 Comments Target exceeded for 2011 Technical, financial, procurement audits, and Text Value NA Satisfactory satisfactory reports supervision mission reports are satisfactory, Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 with no major issues reported. Comments Beneficiary satisfaction with training received at Text Value Over 80 percent of the local government level. participants expressed satisfaction with training received Date 02-Jan-2012 Comments Number of key stakeholders (i.e. municipal Text Value 0 (1800 key stakeholders 515 715 (2515 key stakeholders officials, village council members, community trained under ASIF II) trained under the ASIF leaders, etc.) trained at local governmentlevel. program) Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Public Disclosure Copy Comments

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Number of schools benefiting from school Text Value 0 802 822 under ASIF III plus first, furniture second and third Additional Financing Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments 600 schools benefited under on track ASIF I and II projects Beneficiary satisfaction regarding community Text Value 0 94% of beneficiaries satisfied 70% statisfactory rate. infrastructure projects carried out in their with quality and relevance; 80 communities. percent of beneficiaries satisfied with maintenance Date 20-Dec-2006 02-Jan-2012 30-Jun-2014

Public Disclosure Copy Comments Results from the latest Beneficiary Assessment that was completed in 2011; target exceeded Number of social and economic micro-projects Text Value 0 233 283 micro-projects (ASIF III completed plus first, second and third Additional Financing) Date 20-Dec-2006 02-Jan-2012 30-Jun-2014 Comments Additional 27 Mps under construction; target on track

Data on Financial Performance (as of 15-Feb-2012)

Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P094225 IBRD-78470 Effective 25-Feb-2010 05-Mar-2010 27-Jul-2010 31-Mar-2012 P094225 IDA-42380 Effective 26-Oct-2006 01-Nov-2006 20-Dec-2006 31-Mar-2012 P094225 IDA-45480 Closed 24-Feb-2009 26-Feb-2009 13-Apr-2009 30-Jun-2011 P094225 IDA-50710 Not Effective 14-Feb-2012 30-Jun-2014

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P094225 IBRD-78470 Effective USD 7.00 7.00 0.00 5.67 1.33 81.00 P094225 IDA-42380 Effective USD 25.00 25.00 0.00 26.12 0.00 104.00 P094225 IDA-45480 Closed USD 8.00 8.00 0.00 7.99 0.00 100.00 P094225 IDA-50710 Not Effective USD 11.00 11.00 0.00 0.00 10.99 0.00 Public Disclosure Copy

Disbursement Graph

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Key Decisions Regarding Implementation All remaining micro-projects financed under the original credit should be completed by the credit closing date of March 31, 2012. A draft Assessment of Sustainability, Infrastructure Maintenance and Labor Impact of ASIF III Micro-Projects should be submitted to the World Bank for review. Appraisal reports for seven proposed micro-projects to be retroactively financed under the Third Additional Financing need to be submitted to the World Bank for a prior review.

Restructuring History Level two Approved on 01-Jun-2010, Level two Approved on 31-Jan-2011, Level two Approved on 20-May-2011

Related Projects P115743-Social Investment Fund III Additional Financing, P118158-Social Investment Fund III Second Additional Financing, P128740-Third Additional Financing for Social Investment Fund III Project Public Disclosure Copy

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