FOR OFFICIAL USE ONLY Report No: PAD2913 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR36.1 MILLION (US$50 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF MALI FOR A DEPLOYMENT OF STATE RESOURCES FOR BETTER SERVICE DELIVERY PROJECT April 26, 2019 Governance Global Practice Public Disclosure Authorized Africa 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 March 31, 2019) Currency Unit = FCFA 584.45 FCFA = US$1 1.39 US$ = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Soukeyna Kane Senior Global Practice Director: Deborah L. Wetzel Practice Manager: Alexandre Arrobbio Task Team Leaders: Fabienne Mroczka, Christian Vang Eghoff, Tahirou Kalam SELECTED ABBREVIATIONS AND ACRONYMS AFD French Development Agency (Agence Française de Développement) ANICT National Local Government Investment Agency (Agence Nationale d’Investissement des Collectivités Territoriales) ADR Regional Development Agency (Agence Regionale de Developpement) ASA Advisory Services and Analytics ASACO Communal Health Association (Associations de Santé Communautaire) AWPB Annual Work Plans and Budget BVG Office of the Auditor General ((Bureau du Verificateur) CCC Communal Support Centers (Centres de Conseils Communaux) Communal Development Action Steering, Coordination and Monitoring Committee (Comité Communal d’Orientation, CCO[C]SAD de Coordination et de Suivi des Actions de Developpement) CDQ/V Neighborhood Committee or Village Committee (Comité de Quartier/Village) CFCT LG Training Center (Centre de Formation des Collectivités Territoriales) CE Citizen Engagement CGS School Management Committee ((Comités de Gestion Scolaire) CGSP Inspectorate of Public Services (Control General des Services Publics) Local Development Action Steering, Coordination, and Monitoring Committee (Comité Local d’Orientation, de CLOCSAD Coordination et de Suivi des Actions de Developpement) CoFoC Village Land Committee (Commissions Foncières Communale) CoFoV Communal Land Committees (Commissions Foncières Villageoise) Counties Cercles CPF Country Partnership Framework Regional Development Action Steering, Coordination and Monitoring Committee (Comité Regional d’Orientation, de CROCSAD Coordination et de Suivi des Actions de Developpement) CSCom Community Health Center (Centre de Santé Communautaires) CSRef Reference Health Center (Centre de Santé de Référence) CSO Civil Society Organization CT Communes (Collectivités Territoriales) DA Designated Account DFM Directorate of Financial Management DGB Directorate General of Budget (Direction Générale du Budget) DGCT General Directorate of Local Governments (Direction Generale des Collectivités Territoriales) DIN Investment allocation for Local Governments (Dotation d’Investissement des collectivités territoriales) DLI Disbursement Linked Indicator DNCF National Financial Comptroller Directorate (Direction Nationale du Contrôle Financier) DNDS National Social Development Directorate (Direction Nationale du Développement Social) DNTCP National Accounting and Treasury Directorate (Direction Nationale du Trésor et de la Comptabilité Publique) DPF Development Policy Financing EEP Eligible Expenditure Program EU European Union FCFA West African CFA Franc (Franc Communauté Financière Africaine) FM Financial Mangement FNACT National Local Government Support Fund (Fond National d’appui aux Collectivités Territoriales)) GDP Gross Domestic Product GIZ German Society for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit) GoM Government of Mali IDA International Development Association IFR Interim Financial Report IDA International Development Association IPF Investment Project Financing LG Local Government MATD Ministry of Land Administration and Decentralization (Ministere de l’Administration Territoriale et Decentralisation) MDTF Multi-Donor Trust Fund MEF Ministry of Economy and Finance M&E Monitoring and Evaluation NGO Nongovernmental Organization OISE Local government M&E database (Outil Informatisé de Suivi-Evaluation) OP/BP Operational Policy/Bank Policy PACUM Urban Local Government Support Project (IDA 4966) PCU Project Coordination Unit PDO Project Development Objective PDSEC Local Development Plan (Plan de Developpement Social, Economique et Culturel) PEFA Public Expenditure and Financial Accountability Assessment PIM Project Implementation Manual PPA Project Preparation Advance PPSD Project Procurement Strategy for Development RfQ Request for Quotation SAI Supreme Audit Institution SC Steering Committee SC-CS Supreme Audit Institution (Section des Comptes a la Cour Supreme) SDC Swiss Agency for Development and Cooperation SDG Sustainable Development Goal SoP Series of Projects SPN Specific Procurement Notice TA Technical Assistance ToR Terms of Reference UNDB United Nations Development Business WB World Bank The World Bank Mali Deployment of State Resources for Better Service Delivery (P164561) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 7 C. Relevance to Higher-Level Objective .............................................................................................. 11 II. PROJECT DESCRIPTION .................................................................................................. 12 A. Project Development Objective ..................................................................................................... 12 B. Project Components ....................................................................................................................... 13 C. Project Beneficiaries ....................................................................................................................... 19 D. Results Chain .................................................................................................................................. 20 E. Rationale for Bank Involvement and Role of Partners ................................................................... 21 F. Lessons Learned and Reflected in the Project Design .................................................................... 22 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 23 A. Institutional and Implementation Arrangements .......................................................................... 23 B. Results Monitoring and Evaluation Arrangements......................................................................... 24 C. Sustainability ................................................................................................................................... 25 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 25 A. Technical, Economic, and Financial Analysis (if applicable) ........................................................... 25 B. Fiduciary .......................................................................................................................................... 26 C. Safeguards ...................................................................................................................................... 28 V. KEY RISKS ..................................................................................................................... 29 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 31 Annex 1. Implementation Arrangements and Support Plan ........................................... 44 Annex 2. Detailed Sector Context: Decentralization in Mali ........................................... 54 Annex 3. Competencies of Local Governments in Mali ................................................... 59 Annex 4. List of Selected Communes ............................................................................. 61 Annex 5. Implementing Performance-Based Grants ....................................................... 65 Annex 6. Other Donor Decentralization Interventions ................................................... 70 Annex 7. Disbursement Linked Indicators ...................................................................... 71 The World Bank Mali Deployment of State Resources for Better Service Delivery (P164561) FIGURES AND TABLES Figure 1. Theory of Change ..................................................................................................................... 21 Figure 1.1. Institutional Arrangements ................................................................................................. 44 Figure 1.2. Funds Flow Chart .................................................................................................................. 49 Figure 3.1. Decentralized