Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 61114-TJ PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT Public Disclosure Authorized IN THE AMOUNT OF SDR 2.1 MILLION (US$ 3.2 MILLION EQUIVALENT) TO THE REPUBLIC OF TAJIKISTAN FOR A SOCIAL SAFETY NET STRENGTHENING PROJECT Public Disclosure Authorized MAY 17, 2011 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 May 12, 2011) Currency Unit = Tajikistan Somoni 4.45 TJS = USD 1 6.40 TJS = Euro 1 7.20 TJS = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank ASP Agency for Social Protection CAO Central Accounting Office CCT Conditional Cash Transfer CPS Country Partnership Strategy ECA Europe and Central Asia Region EOP Executive Office of the President EU European Union GDP Gross Domestic Product GoT Government of Tajikistan IDA International Development Association IFR Interim Financial Report M&E Monitoring and Evaluation MoF Ministry of Finance MLSP Ministry of Labor and Social Protection NA Not applicable NRSP National Registry for Social Protection ORAF Operational Risk Assessment Framework OP Operational Policy PCG Project Coordination Group PCGD Director of the Project Coordination Group PDI Project Development Indicator PDO Project Development Objective POM Project Operations Manual PMT Proxy means-testing RSR Rapid Social Response Multi-donor Trust Fund SOE Statement of Expenses TC Technical Coordinator TJS Tajikistan Somoni TLSS Tajikistan Living Standards Survey TWG Technical Working Group USD United States Dollar WA Withdrawal application Vice President: Philippe Le Houérou Country Director: Motoo Konishi Country Manager: Marsha Olive `Acting Sector Director: Mamta Murthi Sector Manager: Kathy A. Lindert Task Team Leader: Menahem Prywes ii 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 and Rationale for World Bank Engagement ........................................................................................................................................... 5 II. Project Development Objectives ........................................................................................................ 5 A. PDO ............................................................................................................................................ 5 1. Project Beneficiaries ............................................................................................................... 5 2. PDO Level Results Indicators ................................................................................................. 6 III. Project Description ......................................................................................................................... 6 A. Project components ................................................................................................................. 6 B. Project Financing .................................................................................................................... 8 1. Lending Instrument ................................................................................................................. 8 2. Project Cost and Financing ..................................................................................................... 9 C. Lessons Learned and Reflected in the Project Design ............................................................. 9 IV. Implementation ............................................................................................................................. 10 A. Institutional and Implementation Arrangements ................................................................... 10 B. Results Monitoring and Evaluation ....................................................................................... 10 C. Sustainability ........................................................................................................................ 11 V. Key Risks and Mitigation Measures ................................................................................................ 11 VI. Appraisal Summary ...................................................................................................................... 12 A. Economic and Financial Analysis ......................................................................................... 12 B. Technical .............................................................................................................................. 12 C. Financial Management .......................................................................................................... 12 D. Procurement .......................................................................................................................... 13 E. Social (including safeguards) ................................................................................................ 13 F. Environment ......................................................................................................................... 14 Annex 1: Results Framework and Monitor ............................................................................................... 15 Annex 2: Detailed Project Description .................................................................................................... 17 Annex 3: Implementation Arrangements ................................................................................................. 30 Annex 4 Operational Risk Assessment Framework (ORAF) .................................................................... 41 Annex 5: Implementation Support Plan .................................................................................................... 44 Annex 6: Team Composition .................................................................................................................... 46 MAP ........................................................................................................................................................ 47 iii Republic of Tajikistan Social Safety Net Strengthening Project PROJECT APPRAISAL DOCUMENT Europe and Central Asia Region ECSH3 Date: May 17, 2011 Risk Rating: Medium-I Country Director: Motoo Konishi Sectors: Social Protecti on (other social services) 100% Sector Manager: Kathy Lindert Themes: Social Safety Nets (100%) Project ID: P122039 EA Category: C Lending Instrument: SIL Team Leader: Menahem Prywes Project Financing Data: terms: [ ] Loan [ ] Credit [ X] Grant [ ] Guarantee [ ] Other: Source Total Amount (US$M) Total Project Cost: 3.2 Cofinancing: Borrower: Total Bank Financing: 3.2 IBRD IDA 3.2 Borrower: Republic of Tajikistan Responsible Agency: Executive Office of the President, Project Coordination Group; the Ministry of Labor and Social Protection would carry out all social protection activities. Contact Person: Mr. Tojiddin Jurazoda, Director of the Project Coordination Group Tel/Fax: (992-37) 221-73-61 Email: [email protected] Estimated Disbursements (Bank FY/US$ m) FY12 FY13 FY14 FY15 FY16 Annual 0.8 0.9 0.7 0.4 0.4 Cumulative 0.8 1.7 2.4 2.8 3.2 Project Implementation Period: September 1, 2011 to August 31, 2015. Expected effectiveness date: September 1, 2011 Expected closing date: December 31, 2015 Does the project depart from the CPS in content or other significant ○ Yes X No respects? If yes, please explain: not relevant iv Does the project require any exceptions from Bank policies? ○ Yes X No Have these been approved/endorsed (as appropriate by Bank ○ Yes ○ No management? Is approval for any policy exception sought from the Board? ○ Yes X No If yes, please explain: not relevant Does the project meet the Regional criteria for readiness for X Yes ○ No implementation? If no, please explain: Project Development objective. The development objective of the proposed Project is to improve the capacity of the Government of Tajikistan to plan, monitor, and manage social assistance for the poor through the development of a national registry of social protection and the provision of training, equipment and related items for improving said capacity. Project description: The European Union, the Asian Development Bank, and the World Bank support policy actions to reform Tajikistan‟s system of social assistance through budget support grants. (These budget support grants are separate from this proposed grant.) The proposed grant for an IDA-supported project would build the tools and capacity of the Government to support its ability to achieve and manage these reforms. These reforms have already begun: the European Union is now helping the Ministry of Labor and Social Protection to pilot the reform of social assistance in two districts. The pilot consolidates the two largest social assistance programs into a single benefit, and uses a proxy-means test to target benefits to the poorest 20 percent of the population.