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Document of The World Bank
FOR OFFICIAL USE ONLY
Report No: T7609 - AF
TECHNICAL ANNEX
FOR A PROPOSED
GRANT OF SDR 66.1 MILLION
(US$95 MILLION EQUIVALENT)
TO THE
TRANSITIONAL ISLAMIC STATE OF AFGHANISTAN
FOR AN
EMERGENCY NATIONAL SOLIDARITY PROJECT
November 26,2003
Rural Development Sector Unit South Asia Regional Office
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.
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CURRENCY EQUIVALENT
ARTF CDC CDD CDP DAB EC ECE&PWP
ENSP GMU IBRD
IDA JSDF
Afghani - Currency Unit - US$1 - - 48,90 “(As o f November 13,2003) S D R l - - US$1.4379 (As o f October 3 1,2003)
GOVERNMENT FISCAL YEAR
March 2 1 - March 20
ABBREVIATIONS AND ACRONYMS
Afghanistan Reconstruction Trust Fund Community Development Council Community Driven Development Community Development Plan D a Afghanistan Bank European Commission Emergency Community Empowerment & Public Works Project (H009) Emergency National Solidarity Project Grant Management Unit Intemational Bank for Reconstruction & Development Intemational Development Association Japanese Social Development Fund
M A C A M&E M I S MISFA
MoF MRRD
NGO NSP O&M PRR TISA TSS UNHCR
M i n e Action Center for Afghanistan Monitoring and Evaluation Management Information System Microfinance Investment & Support Facility for Afghanistan Ministry o f Finance Ministry o f Rural Rehabilitation & Development N o n Government Organization National Solidarity Program Operation and Maintenance Priority Reform and Restructuring Islamic Transitional State o f Afghanistan Transitional Support Strategy United Nations High Commission for Refugees
Vice President : Praful Pate1 Country Director : Alastair McKechnie
Sector Director : Constance Bernard Sector Manager : Gajanand Pathmanathan
Afghanistan Reconstruction Manager : Philippe Dongier Task Team Leader : Asger Chnstensen
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FOR OFFICIAL USE ONLY
TRANSITIONAL ISLAMIC STATE OF AF'GHANISTAN EMERGENCY NATIONAL SOLIDARITY PROJECT
TECHNICAL ANNEX
8 Table of Contents
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A. BACKGROUND AND STRATEGY
1. * Proj ict Rationale 2. Government Strategy
B. BANK RESPONSE AND STRATEGY
1. Transitional Suppok Strategy Framework 2.
3. 4. Rationale for Bank Involvement
Lessons from Earlier Experience in Afghanistan and other Post Conflict Situations Lessons from the current National Solidarity Program
C. DETAILED PROJECT DESCRIPTION
I. Project Objectives 2. Project Components 3. Project Description 4. Monitoring and Evaluation
D. INSTITUTIONAL ARRANGEMENTS AND PROJECT IMPLEMENTATION
1. Institutional Arrangements 2. Budget and Co-financing 3. Procurement 4. Financial Management, Disbursement, and Audit
E. FINAVCIAL AND ECONOMIC JUSTIFICATION
1. Project Benefits 2. Project Risks 3. Alternatives Considered
F. ENVIRONMENTAL AND SOCIAL SAFEGUARDS
1. 2. Land Mine Risk Management
Environmental and Social Impacts and Safeguards
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G. APPENDICES
H. MAP: IBRDNo.32863
This document has a rest r ic ted d is t r ibu t ion and may b e used by recipients only in the per formance o f t he i r o f f i c ia l duties. I t s contents may n o t b e otherwise disclosed lw i thout World Bank author izat ion.
List of Appendices
Appendix : Procurement Arrangements 23
Appendix : Financial Management, Disbursement and Audit Arrangements 30
Appendix 3: Project Costs and Disbursement Schedule for 2004-2007 38
Appendix 4: Project Implementation Plan 40
Appendix 5: Assessment o f micro-finance, livelihood projects, and income generating schemes as an option for community sub-projects 41
Appendix 6: Performance Indicators 48
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Appendix 8: Environmental & Social Safeguard Framework 56
Appendix 9: Procedures for Land Mine Risk Management 82
Appendix 7: Monitoring & Evaluation arrangements
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A. BACKGROUND AND STRATEGY
1.Project Rationale
1. Afghanistan i s one o f the poorest and longest-suffering countries among the members o f the Wor ld Bank. More than two decades o f conflict and polit ical instability have resulted in severely damaged infrastructure, a degraded natural resource base, weakened public institutions, and fragmented political authority. A severe drought lasting f rom 1999 till 2002 has further increased rural poverty and depleted assets. Bo th the conflict and the drought have resulted in massive population displacements and disruption o f livelihoods. Among the country’s estimated 22 mi l l ion people, around a quarter are critically poor, and a larger number are vulnerable to risks o f external economic and natural shocks.
2. mainly dependent on agriculture. Landholdings vary in size between and within provinces, with an average farm size ranging between 1-2 hectares. Absentee landownership i s common as a result o f emigration o f families or family members to neighboring countries, share-cropping seems to be expanding in most provinces, and rural indebtedness i s widespread.
About three quarters o f the Afghan population are estimated to l ive in rural areas and are
3. as wel l as the UN since the late eighties, the needs o f the rural population regarding assistance to cope with both reconstruction and the legacy o f more than twenty years o f deferred development are enormous. Thus, only about a third o f the area under irrigation in 1993 was irrigated in 2002, and local community-based irrigation systems require desilting o f canals and repair o f structures to become fully functional (the area under irrigation only increased by 1% in 2003). Most village roads are in need o f culverts and bridges to make them passable throughout the year, the large majority o f children do not have access to education or are taught under the open sky, there i s almost n o access to electricity in rural areas, and the majority o f the country’s population does not have access to safe drinking water.
Despite the assistance provided to the rural population by Afghan and international NGOs
4. Adding to the urgency for large-scale assistance to promote the recovery o f Afghanistan’s rural communities i s the return f rom neighboring countries o f some 2.3 mi l l ion refugees since late 200 1 .* Another ha l f mi l l ion Afghans who were displaced inside the country have also retumed to their homes. Unless economic activity and employment grows in rural areas, returnees will not find i t attractive to retum to their villages o f origin, and the trend o f urban migration i s l ikely to continue and exacerbate the growth problems already faced by Kabul and other cities. Since Afghan cities and in particular Kabul have shown recovery over the past two years, particularly in the construction and service sectors, they attract retuming refugees who expect to find improved stability and better j o b opportunities compared to most rural areas. Approximately 30% o f the returnees have moved to Kabul c i ty and province. As a result, the population o f Kabul has increased from 600,000 inhabitants in the late seventies to an estimated 3 mi l l ion today. UNHCR estimates that there remain about 1.5 mi l l ion Afghan refugees in Palustan and 1.2 mi l l ion in Iran.
5. Since the end o f the three year drought in 2002, agricultural production in Afghanistan has continued i t s strong recovery for the second consecutive year primarily due to favorable precipitation and the expansion o f rainfed farming. Aggregate cereal production estimated at 5.37 mi l l ion tons i s the largest on record. However, despite the good harvest there are s t i l l a considerable number o f Afghans who face food insecurity and wil l continue to depend on targeted
FAO/WFP Crop and Food Supply Assessment Mission to Afghanistan - Special Report, August 13,
UNHCR Humanitarian Update No. 68, UN High Commissioner for Refugees, August 2003.
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2003. The succeeding information below o n agriculture draws o n this report. 2
food assistance during 2003/04. In the northern surplus producing areas (primarily Baghlan, Kunduz, Takhar) there has been major improvement in food security. At the same time there are chronically food insecure areas l i ke the Central Highlands (Hazarajat) and Badakshan. Elsewhere in the country the picture i s mixed and areas o f improved harvests contrast with pockets o f high vulnerability and food insecurity.
6. The description above indicates that reconstruction and development needs differ substantially across regions and even locally. T o address this situation, a flexible assistance program i s needed, that takes as i t s point o f departure peoples’ own local knowledge about their priorities for reconstruction and development, that facilitates a participatory process to assist communities to agree o n the priorities that need to be dealt with and how, and that provides resources which enable communities to implement sub-projects that address these priorities. The National Solidarity Program (NSP) has been designed with these requirements in mind to provide assistance to rural communities across the country. The proposed Emergency National Solidarity Project (ENSP), supported by the International Development Association (IDA) and by other donors, will assist implementation o f this national program
2. Government Strategy
7. Programme for Reconstruction, by promoting three o f i t s key elements, namely the use o f assistance to create conditions for people to l ive secure lives and build human capital, physical reconstruction, and private sector development. The project would constitute one o f the six national priority sub-programs - the National Solidarity Program - under one o f the 12 National Development Programs: Livelihoods and Social Protection. The goal o f the NSP is to reduce poverty through empowering communities with regard to improved governance, and social, human, and economic capital. The key development issues that the project will address are:
The project would support the Transitional Islamic State o f Afghanistan’s (TISA) National
0 Rural reconstruction: The project will provide resources through block grants to rural communities for investments in reconstruction or development activities planned and managed by the communities themselves. Activities will either be implemented directly by the communities or through sub-contracting to the private sector. Strengthening o f local governance: Decisions on the use o f b lock grants will be made through an inclusive participatory decision making process led by community development councils elected through secret ballot. This process will facilitate the emergence o f consultative decision making and legitimate local leadership, which can form the basis for cooperation between communities and the local government apparatus as wel l as with other assistance programs. Enhancing government effectiveness: Capacity would be built within the Ministry o f Rural Rehabilitation & Development (MRRD) to set and supervise standards and procedures for financial management, disbursement, and implementation o f community projects planned and implemented by local communities and funded by block grants.
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In addition to the NSP, this national priority sub-program also comprises the National Emergency Employment Program, which received initial funding under the Emergency Community Empowerment & Public Works Project (HOOg-AF), and i s now being fimded under ARTF and IDA follow-up projects.
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B. BANK RESPONSE AND STRATEGY
1. Transitional Support Strategy Framework
8. and wil l promote this strategy by (i) strengthening communities to develop and carry out plans for local development, (ii) generating incomes for the poor through wages eamed from community projects and f i o m the assets and sk i l ls created through these projects, (iii) enabling private sector development through supply and implementation contracts for community projects, and (iv) increasing access to basic social services.
The project i s consistent with the Bank’s Transitional Support Strategy (of March 2003),
2. Lessons f r o m earlier experience in Afghanistan and other post-conflict situations
9. management, projects that are planned and managed by the communities themselves typically show rates o f return higher than those planned and managed by government agencies.
International experience suggests that in a number o f sub-sectors suited for community
10. projects are particularly appropriate for post-conflict environments. In the Rwanda Reintegration Project, for example, close attention to using jo in t community activities to promote reconciliation between ethnic groups has been successful and led the Rwandan Government to extend the design into i t s national development plan. Another benefit o f this approach in post-conflict environments i s i t s speed. The East Timor Community Empowerment Project was able to attain national coverage within one year o f appraisal, albeit in a very small country and building on an existing program.
A growing body o f evidence from Bank-financed projects demonstrates that community
1 1. Bearing in mind that the Afghan context i s in many ways sui generis because o f the extreme levels o f destruction and the long-term nature o f the conflict, the project draws o n several general lessons from other community development and post-conflict projects. These include:
Community block grant projects can be scaled up very quickly and can function in highly diverse environments because o f their modular design; Establishing a participatory process and community development councils init ially adds t ime to sub-project preparation but provides long-term and highly justif ied payoffs in terms of sustainability and improved governance; Open menus al low a better reflection o f local needs than do pre-selected ones; High quality technical support to communities makes for better outcomes and longer-term sustainability. Private sector providers and NGOs should be used where available; Community-driven projects should include a strategy for linking up planning and investments to district and provincial management, although this linkage should be sequenced carefully, particularly in post-conflict environments;
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Three design and management lessons o f special relevance stand out for designing the
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Advance clarification and clear communication o f a l l project eligibility, community procurement, disbursement, and financial management procedures i s essential; Technical support and training is needed to enhance quality o f infrastructure designs, to pre-qualify engineers, agronomists, and other potential sources o f support to the villages; Prompt and decisive use o f sanctions i s needed for communities and project officials if they do not fo l low agreed-upon rules.
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13. There i s also a relevant set o f negative lessons learned:
Risks o f elite capture o f benefits are high, particularly in communities with pronounced class differences. Mitigation measures will include external facilitation, a focus o n public rather than private goods, and an intense program o f outreach and transparency. Communities usually do not have access to formal systems o f redress. Community-based projects thus depend on transparency and social controls to prevent corruption and fraud. Support f rom c iv i l society groups (NGOs, legal advocacy organizations, press, academics, etc) must be enlisted from the outset. Communities with long histories o f aid dependency or in areas o f extensive government service delivery will not easily provide large contributions for capital costs or maintenance.
NGOs have been actively involved in community development in Afghanistan since
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14. around 1990, and lessons gained f rom consultations with these NGOs include:
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Communities should be given enough time during planning to ensure full understanding and ownership o f the process. However, with good facilitation, this understanding and ownership can be established within a fairly short time-span. Labor involved in project implementation will require payment for labor or else the poor will not be able to afford to participate; Community contributions towards capital costs in the form o f labor or reduced daily wage rates must be supplemented with other forms o f contributions (e.g. cash) f rom more affluent families, who do not have members seeking work at the reduced wage rate; B e selective-areas that are in practice controlled by mi l i t ia leaders or single-family elites may have to be excluded f rom the program if they oppose the holding o f elections for Community Councils through secret ballot.
Lessons gained from consultation with the government include:
Project designs should reflect a long-term rather than short-term vision, with a special focus on developing representative forms o f local leadership; Capacity support provided to provincial and district government should focus o n strengthening their planning, monitoring, and coordination roles but not on implementation. Local government should be involved in a long-term process o f responsiveness to bottom-up demand.
3. Lessons from the current National Solidarity Program
16. The project i s a follow-up to the community driven development (CDD) component o f the Emergency Community Empowerment & Public Works Project (H009-AF), that became effective in June 2002, and that i s currently supporting the implementation o f the National Solidarity Program in 87 districts in 3 1 o f Afghanistan’s 32 provinces. Program implementation i s managed by MRRD with support f rom an internationally recruited Oversight Consultant, who began the assignment in early September 2003. Communities are supported by Facilitating Partners (at present 20 NGOs plus UN-Habitat) in the election o f Community Development Councils (CDCs), planning and implementation o f sub-projects, and capacity building in financial management and procurement. UN-Habitat started f ie ld operations in M a y 2003, while the Facilitating Partner NGOs began operations f rom late July 2003 onwards. By October 2003, the Facilitating Partners had identified 3,527 villages for the f i rs t phase o f operations, and community mobilization was ongoing in 1,450 villages, with elections o f CDCs completed in 600 villages, and 350 CDCs engaged in preparation o f sub-projects. The NSP Oversight Consultant has established its office in MRRD, and in the provinces where the f i rs t disbursements o f b lock grants to communities are
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taking place. The lessons from the NSP, albeit s t i l l at an early stage, demonstrate that i t i s possible to implement a large scale CDD program involving substantial facilitation at the community level in the volatile and uncertain socio-political environment o f present day Afghanistan.
4. Rationale for Bank Involvement
17. address rehabilitation and development in rural areas. The acceptance by the rural population o f the transitional administration depends in n o small measure on its abil ity to deliver long awaited assistance to rural communities across the country. Because o f i t s experience with supporting CDD programs in other post-conflict countries, the Bank i s wel l positioned to support this program in Afghanistan. Whi le there are a number o f small-scale C D D projects implemented by NGOs and supported by bilateral funding, the support for the NSP through the project will vastly expand the scale o f C D D activities. In addition, the NSP will build on and strengthen the operational partnership between NGOs and the Government that was started for the f i r s t time in Afghanistan under the NSP component o f the Emergency Community Empowerment & Public Works P r ~ j e c t . ~ This partnership will enable the government to further develop i t s national CDD program framework (the National Solidarity Program), while drawing on the strength and experience o f the NGOs for implementation. In addition, the program will introduce and build capacity to execute a key feature o f successful large scale CDD projects which involve local level planning processes within public sector management systems, namely tight supervision o f financial management, disbursement, and technical standards.
After nearly 25 years o f conflict, there i s a high need for large scale interventions to
C. DETAILED PROJECT DESCRIPTION
1. Project Objectives
18. level governance, and to support community-managed sub-projects comprising reconstruction and development that improve access o f rural communities to social and productive infrastructure and services. The outcomes will be (i) the establishment o f a framework for village level consultative decision making and representative local leadership as a basis for interaction within and between communities on the one hand, and with the administration and aid agencies on the other, and (ii) local level reconstruction, development, and capacity building which will lead to a decrease in poverty levels.
The objective o f the project i s to lay the foundations for a strengthening o f community
2. Project Components
19. disbursement schedule):
The project will finance four components (See Appendix 3 for project costs and
Part A: Block Grants for communities (US$72.32 million) to carry out Sub-projects involving reconstruction and development activities through a facilitated participatory planning process. These activities shall focus on, among other things, community infrastructure, development o f human capital, savings and credit schemes for women and disabled, and asset transfers for women and disabled.
The related NGO Support Project (TF051247) implemented by MRRD, and funded by a US$2 4
m i l l i on grant f rom the Japan Social Development Fund (JSDF) involves 37 Afghan NGOs as implementing partners in four areas (Zabul, Shamali, Bamiyan, Nuristan) selected to ensure equity in distribution o f benefits between ethnic groups (Pashtun, Tajik, Hazara, Nuristani). By October 2003, o f a total o f 37 projects, 23 were completed, 12 ongoing, and 2 postponed due to security risks.
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Part B: Community Facilitation and Sub-project Preparation (US$13.08 million) to support local communities through: (i) facilitation exercises to establish inclusive community institutions, and identify local development needs and priorities; (ii) assistance for preparing sub-project proposals; (iii) assistance in carrying out sub-projects for which block grants have been made available, and capacity building for members o f local communities.
Part C: Capacity Building and Implementation Support (US$7.6 million) comprising provision o f consultants’ services for capacity building in, implementation support to, and incremental operating costs for the MRRD. These services will strengthen local communities capacity in financial management, procurement, and technical ski l ls . The project will also augment the MRRD’s human and physical capacity to supervise and implement the project.
Part D: External Monitoring and Evaluation (US$2 million) comprising external monitoring, evaluation and studies to verify implementation status, assess achievement o f project objectives/outcomes, and undertake research on specific issues related to program pol icy or implementation.
3. Project Description
20. Project operational policies are described in the draft Operational Manual for the NSP The operational manual i s expected to be amended from time to time by the government, in consultation with IDA based on lessons from implementation. The following summarizes key sections o f the operational manual..
2 1. and development activities. The NSP consists o f four core elements:
Approach: The NSP provides a single-window framework for village level reconstruction
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Facilitation at the community level to assist communities establish inclusive community institutions through elections, reach consensus o n priorities and corresponding sub-project activities, develop eligible sub-proposals that comply with NSP appraisal criteria, and implement approved project sub-proposals; A system o f direct block grant transfers to support rehabilitation or development activities (sub-projects) planned and implemented by the elected CDCs; A series o f capacity building activities to enhance the competence o f C D C members (both men and women) for financial management, procurement, technical slulls, and transparency, and, Activities linking local institutions to government administration and aid agencies with available services and resources.
Coverage: The transitional government intends to have NSP cover the country’s estimated 20,000 villages over a four year period. In the f i rst year, three target districts have been selected by MRRD in each o f the 32 provinces o n the basis o f vulnerability related to drought impacts and return o f Internally Displaced Persons (IDPs) and refugees. The target for the f i rs t year o f implementation is t o reach more than 4,100 village communities across the country. During year two, operations will expand to cover the remaining villages in the in i t ia l districts, and/or villages in new districts. Vil lage communities that successfully implemented projects during the f i rs t year would receive a new, but smaller b lock grant during year two, and the same formula would be applied in successive years. The goal o f the government i s to establish a system o f recurrent transfer o f b lock grants for a l l village communities o f the country.
23. B lock grant allocations to villages will be based on the fol lowing three principles:
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0 O n e block grant (budget) will be allocated to each community at a rate o f U S 2 0 0 per family with an upper limit o f US$60,000 per community. This allocation requires that the community develops one or more eligible sub-project proposals within the framework o f the block grant allocation and its own contributions. Annual follow-up b lock grants will be allocated at a lower per capita rate to be determined; One Development Council will be established for each community. Development Councils can not be established for sub-sets o f an existing village (e.g. a village can not be split into i t s constituent polit ical or ethnicknship (qaum) sub-divisions); A community i s a village o f more than 25 families.
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24. one or more sub-project proposals that fulfill the following criteria:
Eliaibilitv: In order to be eligible for a block grant allocation, a community must develop
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Proposed by a representative Development Council elected through a community-wide secret ballot; Endorsed through an inclusive community-wide consultation process; Provides equitable access to benefits;
Includes an operation and maintenance plan; At least 10% community contributions in estimated monetary equivalent towards capital costs and full responsibility for operation and maintenance’; Includes a commitment to and plans for ensuring transparency o f the use o f b lock grant funds.
25. subject to a short negative l i s t (see Appendix 8). The four types o f investments are:
Open menu: NSP wil l use an open menu o f subprojects within four types o f investments,
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3 . 4.
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Community infrastructure (the investments will comply with defined technical standards, and will only comprise public goods)6; Human capital development activities (e.g., time-bound literacy classes, hygiene education etc., that will not incur recurrent costs f rom the state); Self-help savings and credit schemes for women and disabled; Asset transfers for vulnerable women and disabled.
In the case o f sub-project proposals involv ing rehabilitation or new construction o f schools, a condition for approval will be the endorsement by the Ministry o f Education that the proposed school f i ts within the overall planning o f the ministry, and that the ministry will cover the operating costs o f the school (fully or with committed contributions f rom other agencies). I f undertaken, rehabilitation and new construction o f clinics wi l l require careful planning and coordination, since plans (with donor funding committed for implementation) exist in the Ministry o f Health to provide 500 clinics over the next three years.
27. Afghanistan as wel l as other post-conflict situations and other social funds to determine whether a simple and robust methodology can be developed, that would enable communities to use a l l or part
Microfinance: An assessment will be made o f lessons from micro-finance operations in
The community contribution towards capital costs can comprise cash, labor, or in-kind contributions
Such infrastructure projects would include, but not necessarily be restricted to irrigation works,
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such as construction materials and transport.
roads including culverts and small bridges, erosion protection, structures promoting watershed management, water supply facilities, micro-hydropower, and school buildings.
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o f their block grant for micro-finance activities. This assessment will also explore the scope for synergies with the ARTF supported Microfinance Investment & Support Facil ity for Afghanistan (MISFA), e.g. the use o f block grant funds by communities to leverage funding from micro-credit agencies, which will then be in charge o f managing repayments as part o f their normal operations, and the use o f b lock grants for community managed revolving loan funds (Appendix 5).
28. returning refugees, villages with a considerable IDP/refugee population, will have the option o f an increased block grant allocation if IDPshefugees retum and participate in project planning. I t i s expected that this incentive may encourage villages with a high proportion o f IDPs or refugees to initiate consultation with these groups about their potential retum during the project preparation phase in order to obtain access to an increased block grant allocation. Where IDPshefugee families or family members actually retum to their village during the sub-project preparation phase, a reassessment o f the population size should be undertaken pr ior to final sub-project development and costing to enable an adjustment o f the block grant allocation. Where such planning i s undertaken, the Facilitating Partner should assist the community in assessing whether the additional resources provided through the enhanced block grant and the proposed sub-project activities would enable a sustainable re-integration o f the returnees.
Refugees and Internally Displaced Persons (IDPs): T o facilitate re-integration o f IDPs and
29. comprised an estimated 1.5 to 2 mi l l ion nomads, mostly Pashtun. The population displacements resulting f rom the conflict have affected both the settled and nomad population, and shifts in inter- ethnic power relations has restricted access for Pashtun nomads to summer grazing areas in the Hazara highlands. In addition, the increase in cultivation o f rain-fed wheat has made inroads on areas used for grazing, and the drought has reduced animal herds considerably. Lessons from a previous severe drought in 1970-7 1, which l ike the recent drought drastically reduced nomad herds, show that these recover fast when grazing improves with increased precipitation. The main constraint today to a full recovery o f pastoral nomadism i s probably the increasing restrictions o n access to pasture. The project will explore the scope for providing assistance to nomads, which could include facilitation o f consultations between specific nomad and settled groups regarding shared rights to land used for pasture, or facilitation o f access to social services such as health and education.
Nomads (kuchi): Before the conflict began in the late seventies, the Afghan population
30. Community Development Plan and Sub-Proiect Proposals: In consultation with the community at large, the CDC will develop a Community Development Plan (CDP) that prioritizes the specific needs o f the community, and proposes sub-projects that address these needs. While the block grant allocation would enable financing o f one or more o f the proposed sub-projects, it i s unlikely that i t can address them all. The CDP constitutes a medium term investment plan for a particular village, which would provide for the f i rs t time ever a bottom-up input to higher level planning at the district, provincial, and national level.
3 1. to contribute a minimum o f 10% o f capital costs and a plan to cover the costs o f operation and maintenance (O&M) o f community assets. Afghan villages have a ‘traditional’ institutional framework for voluntary labor mobilization (ashar) t o create or maintain jo in t assets, which can respond to the NSP requirements for community contributions towards capital costs and O&M. Moreover, in the case o f rehabilitation or improvement o f irrigation systems, which are expected to comprise a significant share o f the sub-projects, ‘traditional’ non-formal water user associations headed by ‘water masters’ (mirabs) exist throughout Afghanistan (although some have collapsed as a result o f conflict and population displacement), and undertake water distribution and maintenance o f local irrigation systems. Experience from other NGO implemented projects in Afghanistan (e.g. drinking water supply) have demonstrated that arrangements for user payment in cash, kind, or
Sustainabilitv: The NSP rules for community sub-project proposals require a commitment
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labor for maintenance services provided through the market have resulted in high levels o f asset sustainability .
32. Communitv Development Councils: Communities will be identified o n the basis o f existing local settlement and social patterns. However, this will not prevent different distinct villages, whether small or large, f rom jo in ing together to develop assets (e.g. a school, a pipe water system, or a road) that serves more than one village. The C D C i s responsible for:
Overseeing preparation o f the CDP with prioritised needs and sub-project activities that address these needs ; Convening community wide meetings to ensure community participation during al l phases; Overseeing planning and preparation o f specific sub-projects either directly or through community project management committees; Mobi l iz ing community contributions; Presenting sub-project plans for appraisal; Managing and supervising sub-project implementation with assistance from the Facilitating Partner agency; Overseeing (or directly handling) procurement and financial management at the community level; Reporting to the community and to MRRD o n project progress and use o f funds.
33. following rules:
Elections: The C D C will be established through an election conducted according to the
Everybody in the community who i s entitled to vote in government elections i s entitled to be registered as a voter; Each person has one vote ; The voting will be conducted through a secret ballot; Bo th men and women are eligible to vote and to be members o f the CDC; Candidates and electioneering i s prohibited; and At least 40% o f eligible voters have to vote for an election to be valid.
34. Prohibition o f candidature and electioneering i s critical to reduce the l ikelihood o f elite capture and intimidation, recognising that i t will not remove it. T o avoid selection o f unwilling candidates, community members will have an opportunity to declare (prior to the election) that they are not prepared to accept the position if elected. All members o f the community are eligible candidates until they take the positive step to declare themselves ineligible.
35. (qaum) sub-divisions within the community, the election process will be based on a division o f the community into groups o f families (clusters), which will each elect one representative for the Development Council. Since neighbours are usually also relatives, the division into clusters will also reduce restrictions o n women Cpurdah) and thereby facilitate their active involvement in discussions o f the qualities required for representatives and in the election itself. The size o f such clusters will vary depending o n the size o f the village, but should generally not exceed about 20 families. The clusters would in turn serve as the framework for community wide consultations on proposals f rom the Development Council, through a process where the elected councillors consult with and seek feed-back from their electorate before decisions on priorities, sub-projects, and community contributions are finalized.
To ensure inclusiveness in terms o f different socio-economic, factional, and ethnickibal
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36. community wide meetings or in the Development Council, the Facilitating Partner must promote the establishment o f a separate forum where women can define their priorities. The Facilitating Partner would also ensure that the priorities defined by women are discussed with the men, and that those defined by the men are discussed with the women, so that the CDP takes account o f both.
Where local norms regardingpurdah do not allow women to participate directly in
4. Monitoring and Evaluation
37. Partners and by the NSP Oversight Consultant, which wi l l maintain a Management Information System for the program and provide regular reports o n the overall program status. Workshops to consult with Facilitating Partners will be conducted on a regular basis to distill lessons leamed and adjust the overall approach and implementation arrangements described in the NSP Operational Manual as required. Independent extemal evaluation by a consultant will be undertaken to verify the accuracy o f progress monitoring conducted by the Facilitating Partners and the Oversight Consultant, and to assess achievement o f project outcomes against baseline data. (The project performance indicators are described in Appendix 6 and monitoring and evaluation arrangements are described in Appendix 7).
Progress monitoring on inputs, process, and outputs will be undertaken by Facilitating
D. INSTITUTIONAL ARRANGEMENTS AND PROJECT IMPLEMENTATION
1. Institutional Arrangements
38. exodus o f trained personnel, l o w pay, and lack o f exposure to new approaches, the government’s institutional capacity i s generally weak. T o address this issue, MRRD’s leadership has over the past year instituted a comprehensive reform within the ministry. The mandate, principles, policies and objectives o f MRRD have been revised with community empowerment at the core o f the ministry’s work to ensure, that communities have both the authority and capacity to own decisions over their reconstruction and development. MRRD’s reformed mandate i s pol icy and strategy formulation, program coordination, program and project execution (involving implementation through contracting partners - NGOs, UN and private sector), monitoring and supervision, and information dissemination. The NSP and other national priority programs managed by MRRD reinforce the govemment’s pol icy and regulatory role to support the private sector through competitive contracting.
The NSP i s implemented by MRRD. As a result o f more than two decades o f conflict,
39. functional changes with NSP at the core o f the ministry. The overall goal o f MRRD i s that in the course o f the next three to five years, NSP will account for a large part o f the work o f the ministry. A new department - the Community-Led Development Department - has been created to manage the NSP, and other departments comprising technical support, livelihoods promotion, finance, procurement, contract administration, monitoring and evaluation, and capacity development have been restructured to support this core function. MRRD has been committed to the principles o f Priority Reform and Restructuring (PRR) even before this process was initiated formally, as reflected by the creation o f the Community-Led Development Department, which i s one o f several departments that are under the purview o f the PRR.
MRRD’s structure at the national and provincial levels has been reformed to reflect the
40. Capacity development, a key aspect o f the institutional strengthening and reform process, i s a priority program managed by the Capacity Development Department. Resources from the National Area Based Development Program support a number o f strategically placed national and expatriate advisors in different departments. Particular emphasis has been given to financial management and procurement. Additionally, a management advisor i s allocated to each province.
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Staff have been assigned to NSP in al l provinces and an extensive training program based o n “learning by doing” has been instituted.
4 1. Emergency Employment Program, the Area Based Program, and the Microfinance Investment & Support Facil ity for Afghanistan. MRRD i s aiming to maximize synergies between these programs, as indicated by the current assessment o f potential linkages between the NSP and microfinance (Appendix 5).
In addition to the NSP, MRRD implements three other programs, namely the National
42. supervision o f the NSP. The NSP Oversight Consultant will have staff at the central level, in five regional offices, and in al l provincial level MRRD offices. The Oversight Consultant i s placed in MRRD and works with MRRD counterparts in the Community-Led Development Department to strengthen capacity for community development and program management at central and provincial levels. The key tasks o f the Oversight Consultant are:
The Oversight Consultant wil l be responsible to MRRD for overall management and
0
0
0
0
Appraisal o f community project proposals; Management o f the NSP block grants for community projects (including effecting fund transfers, tranche payments, financial management, accounting, and reporting); Supervision o f the performance o f Facilitating Partners; Planning and conducting training for staff o f MRRD and Facilitating Partners (either directly or through sub-contracting), together with regular workshops to exchange lessons learned and adjust the program implementation approach as required; Undertaking technical and financial monitoring, and producing consolidated progress reports, and Management o f an information and communication campaign o n NSP.
0
0
43. contracted by MRRD to assist in the delivery o f the NSP to communities. In each province one or more Facilitating Partners have deployed community facilitators and technical specialists init ially for three districts to support the agreed target communities. Depending o n capacity, individual Facilitating Partners are undertakmg these activities in one or more districts, or in one or more provinces. The primary role o f a Facilitating Partner i s to:
Facilitating Partners are agencies (Afghan and international NGOs plus UN-Habitat)
0
0
0
Facilitate elections o f inclusive CDCs; Facilitate consultative community project planning comprising Community Development Plans and sub-project proposals; Provide technical assistance to develop sub-project proposals through either:
o
o
facilitating community access to technical assistance available in the market or f rom other agencies; or, technical assistance provided by the Facilitating Partner,’
0
0
0 Conduct monitoring and reporting.
Provide technical assistance to communities during implementation; Provide training to communities (e.g. book-keeping, procurement, contracting);
44. The expected outputs o f the Facilitating Partners are:
Whi le the preferred approach under NSP i s for communities to avail themselves o f technical I
assistance for project design through the market, it is recognized that this may not b e feasible in many rural areas, and that in such situations, technical assistance wil l have to be provided by the Facilitating Partner.
11
0
0
Eligible project proposals (measured by the number o f projects appraised and approved by the NSP); Implementation o f funded projects (measured by the number o f projects completed in accordance with design standards and in a sustainable manner).
45. involvement o f women in the targeted communities in the prioritization, decision-making, and implementation o f projects.
Facilitating Partners are expected to recruit and deploy female f ie ld staff t o enable
46. Consultant are performance based, and renewable on an annual basis. The NSP will ho ld Facilitating Partners accountable for performance against outputs, but will provide flexibil i ty to i t s partners in the choice o f specific facilitation methods and work planning. The Facilitating Partners may use facilitation methods that they deem appropriate in order to assist communities to prepare projects that meet the eligibil i ty criteria o f the NSP. The NSP Oversight Consultant will inter alia be held accountable regarding timely appraisal o f community sub-project proposals, t imely disbursement o f block grant installments to communities, and timely submission o f monitoring reports.
p: Contracts with Facilitating Partners and the Oversight
NSP governance
47. formulation and direction, and oversees program implementation. At present, the Steering Committee i s composed o f representatives f rom MRRD and Ministry o f Finance (MoF). An External Review Committee consisting o f donors, UN agencies, the Independent Commission for Human Rights, M o F and MRRD meets o n a regular basis to review and endorse a l l pol icy and contractual issues. Discussions are underway to broaden the membership o f the Steering Committee by merging the two bodies. An inter-ministerial committee has been established for pol icy advice and coordination. The committee i s chaired by MRRD and comprises the ministries o f Finance, Agriculture, Public Health, Education, h g a t i o n , Labor & Social Affairs, Women's Affairs, Public Works, Reconstruction, Foreign Affairs, and Refugees.
A Steering Committee acts in an advisory capacity to MRRD o n overall program pol icy
Capacity building for NSP staff
48. The Oversight Consultant will train MRRD staff at central and provincial levels to build capacity to eventually take over responsibility for management o f the NSP.' During the course o f the proposed Emergency National Solidarity Project, a strategy wil l be elaborated to recruit (if necessary) and retain high quality national staff into MRRD and to develop the capacity o f existing staff to manage the NSP. Broader capacity o n CDD will also be built by involv ing undergraduates with a social science or engineering background f rom Kabul University in community facilitation through training by Facilitating Partners. Likewise, university undergraduates will be given opportunities to participate in the monitoring undertaken by the Oversight Consultant, and in evaluation by extemal consultants.
Capacity building i s at the core o f the NSP, and the project will support this in three ways.
The Japan Social Development Fund supports a project Capacity Building for NSP Project
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8
(TF05 1429) which provides U S $ l .1.48 mi l l ion for capacity building within the NSP.
Linkages with Sub-National Administration
49. forming meaningful institutional linkages with the sub-national government administration. Recently, the Wor ld Bank has completed a comprehensive study o n “How Government Works in Afghanistan” (World Bank, 2003). T h i s study found that government administration i s highly centralized based o n the pol icy o f a unitary state, and that this governance model i s unlikely to face a serious challenge in the near future. The study also found that, despite years o f conflict and neglect f rom Kabul, administrative and fiscal mechanisms have continued in use throughout the country, although payment o f staff salaries i s erratic and often partial, and n o allocations for operating budgets are as yet made at the district (woluswuli) level.
Strengthening local governance requires building capacity beyond elected CDCs and
50. U N D P support i s designed to complement NSP by addressing linkages between communities and government authorities through developing the capacity o f sub-national authorities, to establish and maintain provincial and district consultation mechanisms to ensure that al l stakeholders views are reflected in development planning and management. A twin-stream capacity development strategy (management and technical services) i s on-going with MRRD provincial management and technical advisors assigned to each province with international advisors providing technical support. For the f i rs t time, a planning exercise has been conducted in al l provinces identifying priority projects above the village level in each district.
The National Area Based Development Program (NABDP) managed by MRRD with
5 1. strengthen local governance, transparency, accountability and peoples’ participation in the development process. On the other hand, in order to establish i t s credibility, it must quickly finance approved CDC plans that provide tangible benefits to communities. Without gaining credibility in the short-term, the NSP i s unlikely to achieve i t s long-term goal o f improving local governance.
The NSP faces a number o f competing demands. On the one hand, i t s long-term goal i s to
52. phased approach that recognizes that NSP has some short-term goals. Linkages with sub-national government should not act as bottlenecks to the quick and efficient approval and financing o f CDC plans. The strategy also recognizes that government i s in the process o f developing a number o f programs to strengthen sub-national administration (such as the NABDP) and also to improve service delivery in some key sectors such as health and education. The NSP therefore must be flexible to adapt to these evolving programs; and the program should not inadvertently duplicate, or create perverse incentives that undermine the objectives o f other programs.
Strategy for Linhng CDCs and Sub-national Administration: The strategy i s based on a
53. The strategy to be used by NSP has three dimensions: Encouraging CDCs to create a demand for better services f rom sub-national government (district andor provincial). Encouraging CDCs to use their allocation o f direct block grants (particularly the Znd and 31d year allocations) to leverage additional resources from provincial and district levels through the budgetary process. Encouraging CDCs to monitor the quality and timeliness o f service delivery provided by sub-national government.
0
0
0
54. o f about one to two years. The second phase covers the period after that.
The strategy will be implemented in two phases. The f i rst phase covers a short-term period
55. Phase 1: MRRD/Oversight Consultant representatives based in the provinces will provide the summary Community Development Plans o f CDCs (drawn f rom their MIS) to the district level
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representatives o f each ministry and also the District Administrator ( Woluswal) o n an annual basis, so that this information can be provided to l ine ministries in time to inform the annual budget exercise. At the district level, these plans will be provided for information purposes only and n o direct action i s required o n the part o f district officials in approval o f plans or in fund transfer t o CDCs. However, district officials may use this information to coordinate the efforts o f aid agencies operating or planning to operate in the district in question.
56. Phase 2: After CDCs have developed some experience in implementing their plans and managing funds, they will be encouraged to be more proactive in demanding services f rom district government and in monitoring the quality o f services delivered at the village level. Specifically:
0 CDCs in a given district will be invited (by Facilitating Partners) to coordinate. T h i s would enable them to exert greater voice on district level government to demand specific improvements in services. CDCs can determine whether to use their 2nd and 3rd year allocations individually, or as coordinating entities, to leverage additional resources from district or provincial government. Coordinating CDCs could leverage resources for possible large scale investments such as roads linking villages or towns. CDCs will be asked (by Facilitating Partners) to provide quarterly monitoring reports to district officials o f the Ministries o f Education and Health. The reports will be simple and will essentially report on attendance o f teachers and health professionals and availability o f text books, teaching materials and medicines. Report formats (e.g. Report Cards) will be developed by MRRD in collaboration with the Min is t r ies o f Education and Health.
57. learned during implementation o f the NSP.
The modalities o f implementing the above strategy will be adapted based o n lessons
Implementation in high risk areas
58. critically dependent o n the security situation. Security remains problematic throughout large parts o f the country due to the l imited extent o f government authority, and aid agencies face three different lunds o f threats, namely f rom crime, inter-warlord rivalries, and opponents to the transitional government (primarily f rom Taliban and the Hizb-e Islami). Since the summer o f 2003, attacks by Taliban have increased in the South and East, and aid agencies have been explicitly targeted as allies of the transitional government.
The extent to which the NSP will be able to assist communities throughout the country i s
59. Partners in parts (or in a worst case scenario, most) o f the South and East. The options for operating in high risk areas o f the country are limited. Some Facilitating Partners operating in these areas report constraints because they are not able to reach a l l villages due to security concerns. These Facilitating Partners use facilitators recruited f rom the district, who seem to be at less risk than staff f rom outside the district. However, in some situations Facilitating Partners are unable to monitor the work o f these staff raising concerns about the quality o f the planning, approval and monitoring processes.
The deteriorating security situation may result in suspension o f operations by Facilitating
60. security risks, MRRD has proposed to manage the implementation o f the program by directly advertising and recruiting managerial staff and facilitators. This staff would be placed with a Facilitating Partner for two months to receive practical training in participatory planning processes and the rules and procedures o f the NSP. Teams o f trained individuals for a particular district would then be established by MRRD and deployed.
In districts where Facilitating Partners cannot be recruited, or may have to pull out due to
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61, alternative approach to provide resources for reconstruction or development activities to communities, which would not call for compliance with NSP appraisal requirements, and which would be financed from other sources.
Finally, in areas where security r isks are particularly high, MRRD would consider an
2. Budget and Co-financing
62. Solidarity Program to cover a l l the estimated 20,000 villages in the country within a four year time frame. Total funding requirement over the four year period are estimated at around US$781 mi l l ion (Appendix 3). Funding requirements for the f irst year o f this program are estimated at close to US$16 1 mill ion.
Program and proiect budget: The goal o f the Government i s to scale-up the National
63. IDA would provide i t s entire contribution for the f i rs t year o f the program. The project would be funded by an IDA Grant o f US$95 mi l l ion and by co-financing from other donors for approximately US$65 mill ion. A number o f donors have committed to support the balance o f US$65 mi l l ion for this project.
The proposed Emergency National Solidarity Project i s for three years, but if required,
64. pace desired by the government. Therefore, the IDA-supported project has an expected completion date o f September 30,2006, with the expectation that funds may disburse much faster.
Implementation constraints may not allow the program to actually disburse funds at the
65. The Afghanistan Reconstruction Trust Fund (ARTF) represents one mechanism for cofinancing o f the NSP. The ARTF i s one o f the main instruments available to the Government o f Afghanistan to finance key recurrent expenditures (salaries, capital expenditures, operations and maintenance o f key government institutions), as wel l as finance urgent investments and reconstruction activities planned in the country’s economic recovery program. The ARTF can either finance free-standing projects or co-finance IDA or other Donor funded projects. However, donors have expressed concern about ARTF as a mechanism for cofinancing o f NSP, since they can not ‘earmark‘ their contributions for a specific activity in the legal agreement. Modalities have been developed by IDA, as ARTF Administrator, to allow donors to express preferences for a priority program or project included in the Government multi-year development budget, and for which the Government has requested ARTF funding. T o maintain the integrity and principles underlying a multi-donor Trust Fund, the ARTF cannot be used exclusively for the purpose o f financing specific programs or projects. Donors who express a specific preference are expected to also contribute to the general allocation. The amount for which the preference i s being expressed cannot exceed 50% o f the donor’s total contribution in a given Afghan Fiscal Year (Solar Year - SY). In a non-legally binding side letter t o the Agreement, IDA will communicate i t s confidence that ARTF will fund the designated program up to the amount expressed by the donor, and this amount would be transferred f rom the general fund to the specific project fund.
66. arrangement where funds from different donors are channeled through the Treasury.
The government’s preferred co-financing mechanism would be jo in t cofinancing under an
3. Procurement
67. Procurement under the project will be carried out in accordance with the “Guidelines for Procurement under IBRD Loans and Credits” (January 1995, revised in January and August 1996 and September 1997 and January 1999) and “Guidelines for Selection and Employment o f Consultants by Wor ld Bank Borrowers” (January 1997, revised in September 1997, January 1999
15
and M a y 2002). Procurement o f goods, works and services will follow IDA approvedktandard documents (see Appendix 1 for details on procurement arrangements).
68. planned coverage o f the country’s estimated 20,000 villages over a four year period. The block grants will be used for community infrastructure, human capital development activities, self-help savings and credit schemes for women and disabled, and asset transfers for vulnerable women and disabled. The physical work will be described in the approved sub-project contracts.
The Community Grant Component consists o f b lock grant allocations that contribute to the
69. process, in compliance with para. 3.15 o f the Bank Guidelines.
Works will be implemented by community organizations through a community-driven
70. through Intemational Competitive Bidding. Intemational Shopping will be allowed for contracts for goods estimated to cost less than or equivalent to US$200,000 per contract, and National Shopping for contracts estimated to cost less than or equivalent to US$lOO,OOO per contract. Direct Contracting will be used for goods estimated to cost less than or equivalent to US$lO,OOO per contract.
Goods estimated to cost more than US$200,000 or equivalent per contract wi l l be procured
71. subject to the IDA’S pr ior review.
All contracts for goods estimated to cost the equivalent o f US$200,000 or more will be
72. In cases, where Facilitating Partners may have to pull out o f districts due to security r isks, MRRD would attempt to directly advertise and recruit individuals for implementation supervision and facilitation as “Service Delivery Contractors”. Facilitators recruited f rom the districts in question would be required to have the minimum qualifications o f basic literacy and basic arithmetic skills.
73. Under the component for extemal monitoring and evaluation services, services o f f i r m s estimated to cost US$200,000 or more per contract will be procured fol lowing Quality and Cost Based Selection. Services o f f i r m s costing less than US$200,000 will fo l low the Consultant Qualification method, and individual consultants will be selected on the basis o f their qualifications for the assignment, in accordance with Section V o f the Consultants’ Guidelines.
74. Consulting services contracts estimated to cost the equivalent o f US$lOO,OOO or more for f i r m s and US$50,000 or more for individuals, and any selection o f consultants o n a Single-Source basis will be subject to the Bank’s pr ior review.
75. The Facilitating Partners already worlung under ECE&PWP will be continuing under the project selected on a Single Source Basis. Their contracts are performance based, renewable o n an annual basis. In case the performance o f any o f the Facilitating Partners i s not found satisfactory upon annual evaluation, the contract with that Facilitating Partner will not be extended further, and a replacement would be done through selection o f another Facilitating Partner following the Quality- and Cost-Based Selection method. The Oversight Consultant was recruited through international competitive bidding following the Quality Based Selection Method. In the event o f replacement, the same method o f recruitment will be followed.
4. Financial Management, Disbursement, and Audit
76. position to ensure proper accounting for local payments. In addition, the government has also put in place a Grant Management Unit to manage and coordinate a l l donor projects, and a Cash
Through the engagement o f the Financial Management Agent, the government i s in a
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Management Unit to undertake accounting for al l income and manage cash resources under the officer in charge o f the Treasury at Ministry o f Finance. The government has also engaged the services o f an international firm o f auditors to assist the Government’s Auditor General in satisfying the donor community regarding audits. These measures reflect the Government’s commitment to transparent and accountable financial management.
77. MRRD has initiated reforms o f the ministry’s administrative and financial functions (including procurement and finance), appointment o f financial and procurement advisers, an ongoing review and modification o f financial management and audit arrangements as wel l as disbursement systems, and training o f staff at national and provincial levels in financial management and procurement.
78. recruited Oversight Consulting firm. A key task o f the Oversight Consultant i s management o f disbursement o f b lock grant funds, which constitute the largest component under the project. T o enable this, a specific designated account has been established for block grant funds under management o f the Oversight Consultant. In addition, a Special Account will also be opened at the D a Afghanistan Bank (DAB) and, except for direct payments, this will be the main conduit for payments for goods and for consultant services related to external monitoring and evaluation. In case o f payments to international f i r m s (incl. NGOs and Oversight Consultant), direct payments can be requested through the Grant Management Unit o f MoF.
Funds Flow: The project will be executed by MRRD with support f rom an internationally
79. preparing withdrawal applications, taking steps to transfedmake payments, undertake accounting, reporting, and obtaining audit opinions. At the same time, MRRD has a Chief Financial Officer who i s responsible for a l l these activities and who will support the GMU in fulfilling these responsibilities. The Chief Financial Officer i s also responsible for ensuring that proper financial procedures are followed in the implementation o f the project.
Responsibilities: The Grant Management Unit within M o F has the main responsibility for
80. financial management policies and procedures, including use o f the Chart o f Accounts developed by the Financial Management Agent to record project expenditures. The use o f these procedures will allow for adequate recording and reporting o f the project expenditures.
Accounting Policies and Procedures: The Project will fo l low standard Afghan government
8 1. Overall project accounts will be consolidated centrally in MoF’s GMU for al l implementing entities, and consolidated Project financial statements will be prepared for al l sources and uses o f project funds. T o support this, the financial management department in MRRD has been strengthened, an accounting system has been set up for the whole ministry that also includes the NSP, and a detailed accounting system i s set up and maintained by the Oversight Consultant for b lock grant funds as wel l as the consultant’s fee.
82. support o f the Audit Agent with terms o f reference satisfactory to IDA. The annual project financial statement to the Association would include a summary o f funds received (showing funds received from a l l sources), and a summary o f expenditures shown under the main Project components/activities and by main categories o f expenditures.
Audit Arrangements: The project accounts will be audited by the Auditor General with the
83. undertaken and the arrangements envisaged for the project are detailed in Appendix 2.
A full assessment o f financial management, disbursement and audit arrangements has been
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E. FINANCIAL AND ECONOMIC JUSTIFICATION
Risk Elite capture o f benefits
Corruption
Delays in block grant disbursement
Decreasing political support for NSP
1. Project Benefits
Mitigation measures External facilitation o f the establishment o f CDCs through secret ballot and the participatory sub-project planning process. Focus on public rather than private goods, and transparency in budgeting and the use o f b lock grants by communities. Same as above, as wel l as financial management arrangements where MRRD, Facilitating Partners, and Oversight Consultant staff do not handle cash. Transparency will be further promoted by the involvement o f the press in monitoring o f the program. Transfer o f funds and disbursement for approved community projects will be managed by the Oversight Consultant, init ially through the Hawala system until i t i s determined on a case by case basis that a functioning banking system i s established at the provincial level. Current strong support for NSP among cabinet members could seriously weaken in the event o f changes in polit ical leadership. A strategic analysis o f options for governance and management o f the NSP will be undertaken to implement institutional arrangements that promote the continuity and integrity o f the program.
84. I t i s premature to calculate economic and financial benefits in such a disrupted environment. For this reason the NSP will collect detailed monitoring data to enable an evaluation to make realistic assessments o f the expected returns on individual subproject investments. Cost data reported by NGOs worlung in Afghanistan suggests that the small-scale village investments proposed under the NSP will have a positive return.
85. choices by villagers are expected to include physical infrastructure and revolving funds. In addition, direct asset transfers (e.g. tools and equipment for income generation activities) are permitted for vulnerable women and disabled people, and the use o f b lock grants for microfinance and income generation activities i s being assessed and may be eligible under the project. Experience in other countries suggests that approximately 60-70 percent o f program funds retum to local labor, and virtually a l l o f the benefits f rom the physical works accrue to primary producers.
Beneficiaries o f the NSP are expected to be the country’s poor and near-poor. Sub-project
86. Consultant, MRRD management, training, and M&E are expected to amount to about 20 percent o f costs. This i s comparable to similar projects in other countries. Given the circumstances o f Afghanistan, if required, it would be justif ied that an even larger proportion o f the budget be used to cover delivery costs in order to mitigate r isks o f capture and to ensure quality o f the program. A reduction o f delivery costs would be sought for subsequent phases o f the NSP.
Total delivery costs for the program including costs o f Facilitating Partners, Oversight
2. Project Risks
87. mode o f politics and clientism at the village and supra-village levels, warlord r ivalry and Taliban resurgence in some areas, and l o w paid government officials who may receive salaries on an irregular basis, a l l contribute to create substantial r isks for both the program at large and for the IDA supported project. Specific r i sk and proposed mitigation measures, some o f which are elaborated elsewhere in this Technical Annex, are listed below:
The context for the NSP o f varying government authority in the rural areas, a factional
Decreasing security
Perceptions o f inequitable ethnic coverage
Deteriorating security conditions may prevent operations in specific areas. Where this happens, and if feasible, operations may be shifted to other districts within the same province (as has already happened in the provinces o f Zabul, Paktika, and Uruzgan). Deteriorating security conditions as a result o f Taliban re-infiltration may require suspension o f operations in the south and east, which would in turn foster perceptions o f inequitable ethnic coverage. Proposed mitigation measures include direct implementation by MRRD o f community development activities that would not have to comply with NSP appraisal requirements, and that would therefore be financed f rom other sources.
3. Alternatives Considered
88. Approach and scale: The project i s a follow-on project to the ECE&PWP. The Community Empowerment component o f the f i rs t project has supported the establishment o f a methodology for community driven planning, prioritization, implementation and subsequent operation and maintenance o f sub-projects. This methodology i s derived from a series o f consultations involving MRRD and Facilitating Partners, and draws on the decade-long experience o f these partners with implementation o f CDD-type projects in Afghanistan. During the appraisal o f the project, considerable time was spent with MRRD to refine and simplify the approval and funds f l ow mechanisms.
89. T w o alternatives were considered during appraisal o f the project: (i) financing the sub- projects identified by CDCs using similar approaches to those financed under the Public Works component o f the ECE&PWP; and (ii) reducing the scale o f operations o f the NSP.
90. larger public goods (road rehabilitation) that are implemented through contractors procured through National Competitive Bidding (NCB) by the government. However, an approach that relies on public works contractors directly contracted by the government (as opposed to being contracted by the communities) would be inconsistent with the specific objective o f NSP to improve local governance through transparent collective action. Improving local governance requires that the CDCs are in-charge o f implementing subprojects that they themselves have identified, and are in charge o f any contracting required to undertake the implementation.
The f i r s t option was rejected because the public works component includes financing o f
9 1, need for development assistance to be perceived as being equitable by covering a l l provinces, and the need to limit the proportion o f program delivery costs vis-&vis block grants to be disbursed to communities (a reduced block grant fund would translate in a higher proportion o f delivery costs). In i t ia l progress under the first project indicates that community demand for the NSP i s high. This i s witnessed by the rapid increase in the number o f CDCs that have been elected during the last few months.
The second option was rejected given the need for rapid coverage across the country, the
92. major changes in the participatory approach, implementation modalities, or choice o f funding instrument. Any change at this juncture would carry significant r isks because most o f the Facilitating Partners have already started working with communities and have started explaining the rules and procedures of the project as part o f forming CDCs and preparing sub-project proposals. Changes would have resulted in both the Government and the Facilitating Partners losing credibility with the communities with whom they are working.
Lastly, given that the project i s a follow-on project, i t was considered prudent not t o make
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93. production last year estimated to be around 3,600 tons.’ An estimated 200,000 families cultivate poppy providing an annual net income o f around US$2,500 per family, and wage rates for the estimated 1 mi l l ion daily laborers involved during peak periods go as high as USSlO per day. Thus, poppy cultivation plays a major role in the Afghan economy, and a recent report by the IMF suggests that the opium drug business accounts for 40-60% o f Afghanistan’s GDP.” The opium drug business t h v e s in a fragmented political setting, and there are serious grounds for concern, that those who profit f rom this business would have a vested interest in undermining the governments state building efforts, or would command sufficient financial power to influence the elections planned for 2004.
POPPY eradication: Afghanistan has emerged as the world’s largest opium producer, with
94. strategy for poppy eradication. The strategy may include using priority sub-programs such as NSP as part o f a package o f incentives to eradicate poppy.
The government, with support f rom donor agencies, i s currently preparing an operational
95. Experiences f rom the early nineties onwards with the use o f community development projects as incentives to wean farmers f rom poppy cultivation demonstrate that n o single development program can be expected to provide sufficient incentives for farmers to abandon poppy production. However, if supplemented by effective enforcement o f a ban on poppy cultivation, the cumulative effect o f different development programs may play a positive role as part o f a package o f incentives aimed at providing alternative livelihoods to farmers currently engaged in poppy production.” If the findings o f the current assessment (paragraph 27 above) o f the scope for using block grants for microcredit and income generation activities supports a simple and replicable methodology, this would add another element to a package o f development incentives that in combination with effective l aw enforcement, could support alternative economic growth and employment.
96. Disarmament, Demobilization. and Reintegration (DDR): Started in September 2003, the government’s DDR program aims to support the demobilization and reintegration o f an estimated 100,000 to 200,000 former soldiers and combatants into the civil ian economy. The option o f using the NSP as an instrument to support the DDR program has been considered. The b lock grants furnished by the NSP for community projects will provide direct employment and stimulate economic recovery which will contribute towards creating a setting conducive to reintegration. A more direct linkage could be established if the DDR or another program establishes training to build capacity among former soldiers and combatants as artisans within the construction sector or to undertake small-scale contracting. However, a direct area targeting to accommodate the DDR program would dilute the ongoing implementation o f NSP, since the NSP target districts have already been selected on the basis o f the Vulnerability Assessment M a p and refugee return data, and implementation has started in these disticts.I2
The Opium Economy in Afghanistan -An International Problem, UN, N e w York, 2003 Islamic State of Afghanistan: Rebuilding a Macroeconomic Framework for Reconstruction and
See MRRD’s strategy paper t i t led Counter narcotics and Disarmament, Demobilization,
The Vulnerabil ity Assessment M a p (VAM) is compiled by Wor ld Food Program as an instrument to
9
lo
Growth, IMF Country report No. 031299, September 2003
Reintegration: Alternative Livelihoods Interventions Strategy, November 2003.
access and map food insecurity. Under MRRD’s leadership, and with assistance f r o m the W o r l d Bank and other actors, the Wor ld Food Program has broadened the 2003 assessment to include other dimensions o f vulnerability and has moved f r o m an income to a consumption focus.
11
12
20
F. ENVIRONMENTAL AND S O C I A L SAFEGUARDS
1. Environmental and Social Impacts and Safeguards
97. significant negative environmental or social impacts. The Environment & Social Safeguards Framework (Appendix 8 ) will be operationalized through the project’s arrangements for implementation, monitoring, and capacity building. In terms o f social impacts, the project falls in the S-3 category o f the Framework’s Guidelines for Land and Asset Acquisition, Entitlements, and Compensation, and i t has a “B” environmental rating.
Sub-projects may comprise small-scale c iv i l works which are not expected to have any
98. negative environmental and social impacts, provided they are designed and implemented in accordance with the design and mitigation guidelines in the Framework. Certain types o f investments with negative environmental or social impacts cannot be undertaken and are included in a negative l i s t o f prohibited investments.
Environmental impacts: Activities envisaged under the project are not expected to entail
99. in the rural areas, involuntary land acquisition based on the state’s eminent domain i s unlikely for the kmd o f small-scale activities that will be undertaken under the project for two reasons. The f i rs t is, that local authorities do not have access to funds to purchase land or other assets if land acquisition were to be undertaken. The second is, that the political costs (in terms o f opposition f rom affected landowners/users) would in al l l ikelihood deter the government apparatus f rom attempting to acquire any land against the will o f those affected. If any minor areas o f land would be needed for a project (e.g. realignment o f an irrigation canal, or land for a school), such land could only be obtained through either private voluntary donations, compensation paid by the community (i.e. transaction between willing buyer-wil l ing seller), or f rom available government land. Private voluntary donations and community purchases would be documented as required by the Framework, and for government land, documentation would be needed that the land i s free o f encroachments, squatters or other encumbrances, and has been transferred to the project by the authorities.
Land acquisition: N o land acquisition i s anticipated. In the current socio-political context
100. Ethnic minor i tv aoups: The design for the project defines a strategy, which will ensure that ethnic minority groups are included as beneficiaries, and that their concems are addressed in compliance with the requirements o f OD 4.20 on Indigenous Peoples. The key elements o f this strategy are (i) the project is national in scale and coverage, and consequently reaches al l the country’s different ethnic groups, (ii) the facilitated participatory planning process at the community level includes an approach for election o f CDCs, which will provide for representation o f a l l sub-groups in the community, (iii) both internal monitoring and external independent evaluation will assess the inclusiveness o f CDCs and thus provide information that would constitute the basis for corrective actions, if necessary, and (iv) independent monitoring by c iv i l society (NGOs and the press) will provide another mechanism to identify cases where ethnic minority groups would have been bypassed or marginalized.
10 1. works will be reported to the provincial or district governors, who then will in form the Archaeological Committee.
Cultural property: Chance finds during implementation o f sub-projects involving c iv i l
102. Compliance with the safeguard provisions and the negative l is t will be ensured through an environmental, social and mine risk screening procedure (check lists) required for sub-project proposals, and by internal input, process, and output monitoring, independent external monitoring by consultants, and by Bank supervision missions.
21
103. be disclosed by the government in both Dar i and Pashto, as wel l as English, and it will also be made available at the Wor ld Bank’s Infoshop. Extensive consultations have been held with the Facilitating Partners regarding the NSP approach and implementation arrangements. Sub-projects will involve consultations within the communities regarding (i) the holding o f secret ballot elections for representative CDCs, (ii) prioritization o f community needs, (iii) identification o f projects corresponding to these needs, (iv) development and costing o f sub-project plans, and (v) arrangements to ensure disclosure o f budget and expenditures. The following information o n the project would be posted on the government’s web-site: summaries o f quarterly NSP implementation progress reports, summaries o f annual project financial statements and audit reports, and summaries o f findings from monitoring and supervision teams (after a reasonable period allowed for internal review).
Consultation and Disclosure. The Environmental and Social Safeguards Framework wil l
2. Land M i n e Risk Management
104. the procedures defined for community rehabil itatiodconstction works in the Procedures for Mine Risk Management in World Bank Funded Projects in Afghanistan (Appendix 9).
Sub-projects will not be implemented without appropriate mine risk management based o n
22
APPENDIX 1
100% coverage
PROCUREMENT ARRANGEMENTS
Jan-Dec 04 ' Jan-Dec 05 Jan Dec 06 Jan Dec 07 (US$ million) (US$ million) (Z'SS million) (US$ million)
A. GENERAL DESCRIPTION
Component 5: Incremental Operating Costs 0.6 0.6 0.6 0.6 Total (period) 160.7 247.6 258.8 113.9 Total (Cumulative) 160.7 408.3 667.1 781
1. The project would support the Transitional Islamic State o f Afghanistan's (TISA) National Program for Reconstruction, by promoting three o f its key elements, namely the use o f assistance to create conditions for people to l ive secure lives and build human capital, physical reconstruction, and private sector development. This project i s a follow-up to the community driven development (CDD) component o f the Emergency Community Empowerment & Public Works Project (H009)(ECE&PWP). The project i s expected to achieve i t s objective through laying the foundations for a long-term strengthening o f community level govemance, and to assist the reconstruction and development o f rural communities through a program framework, that can form the basis for future development interventions by the state at the village level. The expected outcomes would be (i) the establishment o f a framework for village level consultative decision making and representative local leadership as a basis for interaction between communities on the one hand, and the government and aid agencies o n the other, and (ii) local level reconstruction, development, and capacity building which will lead to a decrease in poverty levels.
2. villages in the country within a four year time frame. The indicative funding requirements to achieve this goal are presented in the table below:
The goal o f the Borrower i s to scale-up the National Solidarity Program (NSP) to al l the
Table 1: Program Financing Summary (US$ millions)
3. three year period (Closing Date o f September 30,2006).
The NSP would be funded through an IDA Grant o f US$95 m i l l i on extending over a
4. The project will finance four components:
Component 1 : Grants for Community Projects (IDA: US$72.32 mill ion) Component 2: Goods (IDA: U S $ l .l mill ion) Component 3: Consultant Services and Training (IDA: US$18.38 mill ion) Component 4: External Monitor ing and Evaluation (IDA: US$2 million)
23
Component 5: Incremental Operating Costs (IDA: US$1.2 mill ion)
B. PROCUREMENT METHODS
5. Procurement under the Project will be carried out in accordance with the “Guidelines for Procurement under IBRD Loans and Credits” (January 1995, revised in January and August 1996 and September 1997 and January 1999) and “Guidelines for Selection and Employment o f Consultants by Wor ld Bank Borrowers” (January 1997, revised in September 1997, January 1999 and M a y 2002). Procurement o f goods, works and services will fo l low IDA approvedstandard documents.
Component 1: Grants for Community Sub-projects
6. The community grant component consists o f B lock Grant allocations to the country’s estimated 20,000 villages over a three to four year period with the goal to establish a recurrent block grant allocation for a l l village communities. One block grant (budget) wi l l be allocated to each community at a rate o f US$200 per family with an upper limit o f US$60,000 per community. This allocation requires that the community develops one or more eligible project proposals within the framework o f the block grant allocation and i t s own contributions. The block grants will be used for community infrastructure, human capital development activities, self-help savings and credit schemes for women and disabled, and asset transfers for vulnerable women and disabled. The physical work will be described in the approved subproject contract.
7. Sub-projects (goods, works and services) will be implemented by community organizations through a community-driven process, in compliance with paragraph. 3.15 o f the Wor ld Bank Guidelines, and wil l adopt the following methods:
Execution o f the sub-project (works) by the communities themselves by employing labor and by procuring the needed materials, fo l lowing the community procurement procedures detailed in the Program Operational Manual ; or Award the sub-project (services) on Single-Source basis to community organizations or NGOs, fol lowing the procedures detailed in the Project Operational Manual; or Award the sub-project (works), estimated to cost not more than $5,000, to qualified domestic contractors upon inviting quotations f rom at least three qualified domestic contractors, following the procedures detailed in the Program Operational Manual; or Award the sub-project (works), estimated to cost $5,000 equivalent or more, through competitive bidding, advertised locally, in accordance with the procedures detailed in the Program Operational Manual (the threshold o f $5,000 will be reconsidered after 6-12 months to assess whether it can be raised); or Procure goods under contracts awarded o n the basis o f national shopping procedures, as detailed in the Program Operational Manual.
8. ongoing operations, the Force Account method may be applied.
In case o f emergencies or to complete any unfinished works without disrupting other
Component 2: Procurement of Goods
9. equipment, computers and vehicles. International Competitive Bidding (ICB), InternationalNational Shopping ( ISNS) and Direct Contracting (DC) procedures will be used.
The procurement o f goods will consist o f office supplies/equipment, communication
24
10. than US$200,000 or equivalent per contract.
International Competitive Bidding: This will be used for goods estimated to cost more
1 1. International Shopping: This will be used for goods estimated to cost less than or equal to US$200,000 equivalent per contract. Under Shopping procedures, simplified documents and procedures will be used for soliciting, receiving, and evaluating competitive quotation from usually at least three suppliers f rom two different counties. In view o f the nature o f this emergency operation, the threshold i s set higher than normal limit o f US$lOO,OOO.
12. US$lOO,OOO equivalent per contract. Under Shopping procedures, simplified documents and procedures will be used for soliciting, receiving, and evaluating competitive quotation from usually at least three suppliers.
National Shopping: This will be used for goods estimated to cost less than or equal to
13. than US$lO,OOO equivalent per contract.
Direct Contracting (DC) Procedures: This will be used for goods estimated to cost less
Component 3: Consultants’ Services & Training
14. (CDD) component o f the Emergency Community Empowerment & Public Works Project (H009)(ECE&PWP). The communities are being supported by Facilitating Partners (NGOs plus UN-Habitat) in the election o f Community Development Councils, planning and implementation o f sub-projects, and capacity building o n financial management and procurement. Due to urgency, these Facilitating Partners were selected based o n the Consultants’ Qualifications [the contract value ranges f rom US$0.26 mi l l ion to US$ 1.6 mill ion] with IDA’S approval.
As already mentioned, the project i s a follow-up to the community driven development
15. recruited Oversight Consultant, whose key tasks include (i) appraisal o f community sub-project proposals, (ii) fund transfer and disbursement for approved community sub-projects, (iii) management o f relations with Facilitating Partners, (iv) M&E, and (v) capacity building o f MRRD counterparts. The Oversight Consultant was selected through Quality-Based Selection method.
The overall management o f the ECE&PWP by MRRD i s supported by an intemationally
16. renewable o n an annual basis. Based o n the performance o f the oversight firm and the Facilitating Partners, their contracts would be extended, under Single-Source Selection, for continuation o f the same services under the proposed ENSP
Contracts with Facilitating Partners and the Oversight Consultant are performance based,
17. annual evaluation, then the contract with that Facilitating Partner will not be extended further and a replacement would be done through selection o f another Facilitating Partner fo l lowing the Quality- and Cost-Based Selection method.
In case the performance o f any o f the Facilitating Partners i s not found satisfactory upon
18. MRRD would attempt to directly advertise and recruit individuals, with the minimum qualifications o f having basic literacy and basic arithmetic skills, as “Service Delivery Contractors”, f rom the districts in question. The individuals can be placed with a Facilitating Partner for two months to receive practical training in participatory planning processes and the rules and procedures o f the NSP. Teams o f trained individuals from a particular district can then be established by MRRD and deployed.
In cases, where Facilitating Partners may have to pull out o f districts due to security risks,
25
Component 4: External Monitoring and Evaluation services
19. to verify implementation status, assess achievement o f project objectives/outcomes, and undertake research o n specific issues related to program pol icy or implementation.
The project entails consultants’ services for external monitoring, evaluation and studies
20. US$200,000 or more per contract will be procured following QCBS.
Qualitv- and Cost-Based Selection (OCBS): Services through f i r m s estimated to cost
21. to cost less than US$200,000 per contract may be procured based o n Consultants’ Qualifications.
Selection Based o n Consultants’ Qualifications (CQI: Services through f i r m s estimated
22. Individual Consultants (IC): Individual consultants will be selected on the basis o f their qualifications for the assignment, in accordance with Section V o f the Consultants’ Guidelines.
c. ASSESSMENT OF THE IMPLEMENTING AGENCY’S READINESS TO IMPLEMENT PROCUREMENT ACTIVITIES
23. 0 The Project Procurement Plan has been finalized. 0
0 The format for draft tripartite contract between community organizations,
The Project Operational Manual including the Community Procurement Procedures has been finalized.
facilitators, and project unit at the provincial level o f MRRD has been finalized;
24. the Community Development Councils (CDCs). The community sub-projects would involve small value procurement o f goods, works and services, expected to cost not more than $60,000 per contract, through simple procurement procedures, described in the Project Operational Manual. The Facilitating Partner NGOs would provide training to the CDCs o n the community procurement procedures.
Most procurement would take place under the Community B lock Grant sub-projects, by
25. The remaining procurement would be processed by MRRD with the assistance o f the Government’s central procurement consultant, i.e. Crown Agents at present. The Crown Agent’s contract i s valid til l August, 2004 and the Borrower has initiated steps to select a new central procurement consultant.
D. PROCUREMENT PLANNING
26. A detailed procurement plan for the Project has been finalized. Procurement o f goods, works and services shall be undertaken in accordance with the Plan. In case o f any modification, the plan should be forwarded to IDA for i t s prior approval.
E. PRIOR AND POST REVIEW
27. subject to the IDA’S pr ior review.
All contracts for goods estimated to cost the equivalent o f US$200,000 or more will be
28. Consulting services contracts estimated to cost the equivalent o f US$lOO,OOO or more for f i r m s and US$50,000 or more for individuals, and any selection o f consultants, o n a Single- Source basis will be subject t o the Bank’s prior review.
26
29. basis during supervision missions and audits.
Except for the above, a l l other contracts would be subject to post-review o n a random
Expenditure Category
Sub-project Grants
Goods
30. below prior review limits. I t i s expected that the project will have about 4,100 small value sub- projects. The project provides for audits to be conducted by independent auditors to be hired by ministries or the Control and Audit Office (the Audit Agent o f the Government) for expenditures incurred as wel l as asset verification. In addition, the project provides technical audits by independent consultants for community construction works o n a sample basis. The normal Bank requirement o f ex-post review o f one in five contracts for a high-risk project cannot be achieved in this project due to resource and time constraints. Given the sheer number o f contracts envisioned in this project, the Bank’s resource constraints, the mitigating effect o f the self-audit and technical audits mentioned above, we would consider the “benchmark” review level o f 1 in 5 contracts to be excessively large for this type o f emergency operation. However, MRRD has agreed to conduct these post-award audit reviews through an External Monitoring & Evaluation Consultant for a sample o f sub-projects and furnish the reports to IDA. The Bank wil l review samples o f these reports as per the regional guidelines. In addition to a review o f the independent self-audit reports called for in this project, Bank staff will conduct post-award reviews during supervision missions.
Due to the nature o f the operation under the project, the majority o f contracts will be
Procurement Method Total Cost ICB NCB Others NBF 0.0 0.0 674.62 0.0 674.6
(0.0) (0.0) (72.32) (0.0) (73.52) 0.9 0.0 0.43 0.0 1.3
F. PROCUREMENT INFORMATION
(0.8) Consultants Services I 0.0
3 1. o f the start o f the next quarter in the format which will be provided by the Bank. The Procurement Status Reports will indicate:
MRRD will submit quarterly Procurement Status Reports to the Bank within two weeks
(0.0) (0.3) (0.0) (1.1) 0.0 95.g4 0.0 95.8
. number o f contracts signed so far, contract amounts, contractor’s/supplier’s/ consultant’s names, deliverylcontract completion dates; revised cost estimates for contracts yet to be processed; and, revised timings o f procurement actions including advertising, bidding, contract award, and completion.
G. Project Costs by Procurement Methods
32. summarized in the following tables.
The project categories, their estimated costs, and proposed methods o f procurement are
27
and Training Extemal Monitoring and Evaluation Incremental
(0.0) (0.0) (18.38) (0.0) (18.38) 0.0 0.0 7.0 0.0 7.0
(0.0) (0.0) (2.0) (0.0) (2.0) 0.0 0.0 (1.8) 0.0 (1.8)
Table 3: Consultant Selection Arrangements (US$ million equivalent)
Operating Costs Total
'Figures in parenthesis are amounts to be financed out of IDA Grant. Al l costs include contingencies. 'Includes civil works, goods, and services to be procured out o f Force Account and through competitive bidding, national shopping, direct contracting, community participation and single-source selection of NGOs. 31ncludes goods procured using IntemationaU"tiona1 Shopping method and Direct Contracting. 4Refer to Table 3 for details.
LCS = Least Cost Selection; CQ = Selection Based on Consultants' Qualifications; Other includes Single-Source selection method, Individual Consultants. Al l costs include contingencies.
QCBS = Quality- and Cost-based Selection; QBS = Quality-based Selection; SFB = Selection under a Fixed Budget;
(0.0) (0.0) (1 4 (0.0) (1.2) 0.9 0.0 777.8 0.0 778.7
(0.8) (0.0) (94.20) (0.0) (95.0)
Table 4: Thresholds for Procurement Methods and Prior Review
Contract Value Threshold
Expenditure Category
Procurement Method
Goods Less than US$lO,OOO D C
us$200,000
Contracts Subject to Prior Review (total value of to be prior review contracts in US$ million) Nil
Nil
Nil
Al l contracts (0.9)
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Expenditure Category
Consultant Services
Firms
Individuals
Contract Value Threshold
Equal to or more than us$200,000
Less than $200,000
Procurement Method
QCBS
CQ
I C
Total estimated value of prior review contracts
Contracts Subject to Prior Review (total value o f to be prior review contracts in US$ million)
All contracts (15.2)
All Contracts estimated to cost $100,000 equivalent or more. (1.0)
All Contracts estimated to cost $50,000 equivalent or more (0.2) (1 7.3)
H. Overall Procurement Risk Assessment
33. contracted an Oversight Consultant t o support management o f the NSP including support to and monitoring o f community procurement, the procurement risk has been appraised as high due to the post-conflict environment, the geographically remote and dispersed nature o f the works, and the decentralized implementation. Therefore, frequent procurement review missions are proposed (once every four months) during the project implementation.
Although MRRD has been executing a number o f donor financed projects, and has
29
APPENDIX 2
FINANCIAL MANAGEMENT, DISBURSEMENT, AND AUDIT ARRANGEMENTS
Country Issues
1. management issues in Afghanistan from the implementation o f several projects over more than a year. The overall assessment is, that though the country’s financial management system i s not fully functional, especially to manage donor projects, appropriate mitigation measures, general and project specific, have been introduced in order to ensure fiduciary financial accountability for the project funds. In an effort to strengthen key institutions, the IDA i s financing a Financial Management Agent to assist the Ministry o f Finance (MoF), and an Audit Agent to assist the Control and Audit Office. U S A I D and Indian Aid assistance programs are financing consultants/advisors to assist the D a Afghanistan Bank (DAB) in local as wel l as foreign currency operations.
The Wor ld Bank has gained significant experience and understanding o f the financial
Strengths and Challenges
2. project meeting challenges related to the financial management:
Strengths: The characteristics listed below constitute major strengths that would help the
1. One o f the greatest strengths o f T I S A i s the commitment towards accountability and transparency in i ts operations, as this provides IDA management confidence in ensuring the proper utilization o f funds. The measures to strengthen institutional capacity referred to above reflect this commitment and will help in proper accounting and auditing o f financial transactions.
2. Through the engagement o f the Financial Management Agent in MoF, the transitional government i s now in a position to ensure proper accounting for local payments. It i s the responsibility o f the Financial Management Agent to provide the necessary support to the T I S A in ensuring a l l aspects o f accounting and reporting, including compliance with the necessary fiduciary controls.
3. In addition, T ISA has also put in place certain supplementary mechanisms such as a Grant Management Unit (GMU) to manage and coordinate a l l donor projects, and a Cash Management Unit to undertake accounting for a l l income and management o f cash resources, under the overall management o f the Treasury Department at Ministry o f Finance.
4. By engaging the services o f Audit Agent, an international firm o f auditors to assist the Country’s Auditor General, T ISA i s able to further satisfy the international donor community regarding proper auditing.
5. One o f the specific strengths o f the project i s that this i s a follow-up project, and that i t already has a number o f mechanisms in place which will significantly reduce the preparation time. These mechanisms include
0 MRRD has initiated reforms o f the ministry’s administrative and financial functions (including procurement and finance), appointment o f financial and procurement advisers, an ongoing review and modification o f financial management and audit arrangements as wel l as disbursement systems, and training o f staff at national and provincial levels in financial management and procurement.
30
0
0
Appointment o f a Chief Financial Officer at MRRD, who i s responsible for financial management tasks related to the project. The contracting o f an Oversight Consultant for implementation and financial management o f grants to village communities, which constitutes the largest portion o f the NSP funds (approx. 75%). The Oversight Consultant’s tasks also include management of transfer o f b lock grant funds to communities. In the absence o f a functioning banlung system at the provincial level, this wil l init ially be done through Hawala operators. This i s an intermediate measure, and when it i s established that functioning banks exist in particular provinces, the disbursement o f block grants to communities will henceforth take place through the banking system. Hawala dealers will be selected based on criteria defined in the NSP Operational Manual. The Oversight Consultant’s staff includes a Block Grant Manager, and Financial Management staff i s being engaged for each o f the provinces, who will be responsible for ensuring that the financial management requirements o f the Operational Manual i s complied with in each o f the provinces. The project has developed an Operational Manual with a section o n ‘Funds F low and Financial Management’ which covers procedures as wel l as internal controls o f various aspects o f the overall f low o f funds, the fund transfer mechanism, disbursement to communities, and fund management at the community level. The responsibilities o f Facilitating Partners (20 Afghan and International NGOs plus UN-Habitat) include facilitation o f community mobilization and sub-project preparation, support for sub-project implementation, monitoring and reporting on mobilization, project preparation and implementation including compliance with NSP transparency rules for sub-project expenditures. Facilitating Partners also provide capacity building on simple financial management in beneficiary communities.
0
0
0
0
3. Challenges faced by the project regarding financial management are:
4. The primary challenge i s the transfer o f funds to almost 6,000 villages during the f i rs t year o f implementation, and the issue o f the use o f banking channels vis a vis Hawala dealers. Considering that there are n o commercial banks operating at any significant level in Afghanistan, most commercial operations are undertaken by DAB itself. DAB i s currently in the process o f reviving i t s operations in the provinces. However, at present, except for a few large provinces, the revival i s s t i l l in i t s init ial stages. In view o f the lack o f banlung facilities, the project has opted to adopt transfer o f funds through Hawala dealers. Studies o f the Hawala system have been undertaken on behalf o f the Wor ld Bank and IMF. The usefulness o f the Hawala system under the present conditions was recognized, and IDA has accepted this method for transfer o f funds as an transitional measure under circumstances where on functioning banking system exist at the provincial level. The arrangements for using Hawala under the NSP are based o n the findings o f these studies.
5. The r isks associated with the Hawala operations are mainly relating t o (i) the potential use o f the system for money laundering operations, and (ii) to loss o f funds in such operations. The risk deriving from potential money laundering will be mitigated by only using Hawala dealers who are registered with DAB. The risk regarding loss o f funds will be managed through an arrangement as that used by NGOs and UN agencies who a l l re ly o n Hawalas for money transfers, where al l funds to the Hawala dealers will be transferred only after the actual delivery to the destination and after p roo f o f the delivery i s provided. (iii) Another risk related to the use
31
o f Hawala dealers i s that there i s often n o audit trail left o f transactions undertaken. However, the project has developed systems and documentation to record all transactions in a transparent manner. Under the project, Hawala dealers will perform the role o f fund-transfer agents as an intermediate measure until a functioning banking system i s in place at the provincial level. The procedures for this are defined in the NSP Operational Manual.
Funds F l o w
6. Funds for these grants are transferred by the Oversight Consultant f rom a Designated Account maintained by the Oversight Consultant. Funds to the designated account are transferred through direct payment by the Wor ld Bank. Details o f operating the account are given below, under the heading o f Community B lock Grant account.
The main component under the project i s community B lock Grants for sub-projects.
7. payment f rom a Special Account. The Special Account wi l l be maintained at the D a Afghanistan Bank. Contracts by MRRD have already been entered with the Oversight Consultant and with Facilitating Partners comprising national and international NGOs as wel l as UN Habitat.
All the other components will be funded either through direct payment mode or through
8. Finance.
All direct payments will be requested through Grant Management Unit o f Ministry o f
Retroactive Financing
9. No retroactive funding i s envisaged under the project.
Accounting Policies and Procedures
10. For accounting purposes, the Government’s budgeting and accounting systems will be used. The Project will fo l low standard Afghan government financial management policies and procedures, including using the Chart o f Accounts developed by the Financial Management Agent to record Project expenditures. Ultimately, the GMU will be responsible for accounting o f a l l expenditures and receipts in the Government’s accounting system, which wil l be the basis for preparation o f reports to IDA as wel l as to TISA.
1 1. for the sub grant component o f the project. The system will generate both financial monitoring reports (FMRs) and statements o f expenditures (SOEs). Whi le this system has not yet been tested, i t appears that i t has been designed to record a l l grant transactions and to generate periodic summary reports for this component (including Financial Monitoring Reports as indicated below). The system wil l be tested only as the f i rs t grant operations begin to be recorded during November 2003.
The Oversight Consultant has put in place a computerized, tailor made accounting system
12. at the GMU. The statements would include a summary o f funds received (showing funds received from all sources), and a summary o f expenditures shown under the main Project components/activities and by the main categories o f expenditures. These statements should also disclose a statement o f financial affairs at the end o f the year and describe al l major accounting policies used in preparing the statement. The project CFO will assist the GMU in this regard.
Annual project financial statements to be provided to IDA will be consolidated centrally
32
13. GMU, which i s responsible for the accounts o f the Grant projects, has n o w been managing a number o f Grant/Credit projects for last 9-10 months and has sufficient experience to handle such accounting and reporting responsibilities. It has also developed procedures and systems, which are in place to ensure a systematic process o f disbursement. However, there are s t i l l certain weaknesses in accounting o f expenditures on a day to day basis, and these need to be worked o n by the Financial Management Agent o n a priority basis. I t i s expected that the GMU will have a proper accounting system in place to ensure day to day accounting before the project becomes effective.
Reporting and Monitoring
14. assistance o f the Financial Management Agent. However, it will be the responsibility o f the project CFO to facilitate this process. One o f the reporting requirement is submission o f Financial Monitoring Reports (FMRs) each semester. The reports will be prepared by the CFO and forwarded to IDA through the GMU. It i s important that the reports are generated from the financial management system available at MRRD. The Bank’s guidelines for FMRs have been provided to CFO-MRRD and the Oversight Consultant. and it has been agreed that, using the examples in the guidelines as basis, the project will need to design formats proposed for FMRs by the time o f negotiations. GMU should also be consulted while finalizing these formats.
GMU i s responsible for reporting to IDA under the overall supervision o f MoF, and with
15. reports i s in agreement with the information as per i t s F M S system. FMRs should show: (i) sources and uses o f funds by disbursement category and project component; (ii) status o f procurement activities; and (iii) physical progress. These wil l be submitted to the Association within 45 days o f the end o f the semester. Guidelines for borrowers on Financial Monitor ing Reports on Wor ld Bank-Financed projects are available at the Wor ld Bank office.
I t will be the responsibility o f GMU to ensure that the information as contained in the
16. Monitoring o f Outputs and Achievements: The project has a component for independent external agencies to monitor the processes and results o f the project implementation. I t i s essential that the team contains Financial management expertise who examines the effectiveness o f FM processes being undertaken and comment upon improvements required in these processes particularly relating to the management o f B lock Grants.
17. Formats have been designed for the Oversight Consultant’s reporting o n Statement o f Expenditures, Advances on Block Grant Funding, and Three Mon th Estimate for B lock Grant Disbursements. These formats are part o f the contract between MRRD and the Oversight Consultant. In addition, formats have been developed for progress reporting o n the process and outputs o f community projects for both the Oversight Consultant and Facilitating Partners (see Attachment 1 and 2 in Appendix 7).
Staffing and Training
18. The project CFO, who i s placed at MRRD, i s in overall charge o f the execution o f detailed financial management tasks, including accounting, periodic reporting, establishment o f appropriate intemal procedures and controls to ensure that project funds are uti l ized for the purposes intended, preparation o f annual financial statements, and organizing audits in compliance with the audit requirements under the Grant agreement. H e will function in close coordination with the Block Grant Manager o f the Oversight Consultant. As part o f the Oversight Consultant’s staff, the project will have a Finance Officer at the provincial level, who will be responsible for ensuring compliance with financial management requirements for the NSP in each
33
province. The Oversight Consultant’s Block Grant Manager and the project CFO will ensure that adequate training i s provided to these officers to enable them to undertake their responsibilities successfully.
Responsible Agency MOF, supported by Grant Management
19. At the GMU level, as the number o f projects increase, and i t s overall capacity i s under pressure and M o F should undertake an assessment o f GMU’s workload to ensure that adequate staff i s available to manage i t s responsibilities effectively.
Audit Auditors SOE, Project Accounts and Auditor General Special Account
Audit Arrangements
20. the Audit Agent, with terms o f reference satisfactory to the Association. The audit o f the project accounts would also include an assessment of: (a) the adequacy o f the accounting and internal control systems; (b) the ability to maintain adequate documentation for transactions; and (c) the eligibil i ty o f incurred expenditures for IDA financing. The annual project financial statements audited by the Auditor General, supported by the Audit Agent, would be submitted within six months o f the close o f fiscal year, i.e. by September 22 o f each year. All agencies involved in implementation and holding records o f expenditures would need to retain their financial records as per the IDA retention policy.
The accounts o f the Project wi l l be audited by the Auditor General, with the support o f
21. The fol lowing audit reports will be monitored in the Audit Reports Compliance System (ARCS):
22. Risks
Non-absorption o f funds: One o f the main r isks for the project i s that o f the project not being able to absorb the funds at the scale envisaged. Whi le not affecting the viabil ity o f the project, this would extend the implementation period. Whi le disbursement o f the IDA Grant may take place during one year after effectiveness i f the funds transfer arrangements function as envisaged and security conditions permit operations across the country, the three year project period defined for the project will mitigate this risk. Transfer o f funds to remote locations: As mentioned above, undertahng transfer o f funds in such a large volume o f transactions does in itself pose a challenge. Whi le the project has designed a system to meet this challenge, it has not yet undertaken a substantial volume o f transfers, and the practical problems associated with such a major task are yet to be leamed and mitigated. Hence project management must keep a close watch on this critical aspect and be ready to make the necessary changes as required. Custody o f Grant Funds: It i s planned that large tranches o f funds will be transferred to the provincial centers where the funds will be then be provided to nominated community representatives. As the block grant allocations to communities can be quite large (up to US$60,000 depending o n the size o f the community) and considering the insecure environment in some o f the regions, this poses a real risk. T o mitigate this r i s k and ensure that funds are used for the purpose intended,
34
disbursement o f b lock grants will be made in tranches based on achievement o f agreed project milestones. Furthermore, as long as Hawala dealers are used for fund transfer, they retain responsibility for the funds until the payments are made to communities at the provincial MRRD offices. Thus, n o block grant funds will be physically kept in MRRD’s provincial offices. Finally, payments for local contractors or goods under approved community sub-projects will be made at the provincial MRRD office in the presence o f the nominated community representatives, the Facilitating Partners, and MRRD/ Oversight Consultant staff. This arrangement wil l limit the amounts o f cash that has to be transported by community representatives f rom the provincial centers to the villages. When a functioning banlung system i s established at the provincial level, communities would open bank accounts, and funds would be transferred to these. Payment can then be made by check to further limit the risks associated with transport o f cash under the present conditions.
Expenditure Category
1. Grant for Sub-projects 2. Goods 3. Consultants Services 4. External M&E Total
23. procedures are found not t o be practical and require amendment, these will be reviewed during the workshops with Facilitating Partners scheduled to take place at least bi-annually, and the required revision o f the Operational Manual will be undertaken.
The Operational Manual describes the above arrangements. If certain forms and
Amount of the Credit Financing Allocations Percentage (Million USD) 73.52 100% 1.1 100% 18.38 100% 2 100% 95
24. mitigation measures described above together with regular and effective supervision o f the project would reduce the risk to medium.
Whi le certain aspects o f the project appear to be high risk, implementation o f the
Disbursement Arrangements
25. sporadic, disbursement percentages have been set at 100% with the understanding, that MoF will submit withdrawal applications o n a net-of-tax basis. The tax structure o f the government will be reviewed periodically by IDA and decision made whether standard disbursement percentages need to be set and financing percentages amended accordingly.
Financing Percentage: Since collection o f tax revenue by T ISA has just begun and i s
26. Disbursement Method: Disbursements f rom the IDA Grant would be transaction-based (replenishment o f special account, reimbursement, direct payment, and payments under Special Commitments) with full documentation or against statements o f expenditures as appropriate.
27. SOEs for al l expenditures under block grants; for contracts for goods costing less than
Use o f statements o f expenditures (SOEs): Disbursements will be made o n the basis o f
35
US$200,000 equivalent, consultants’ services for f i r m s costing less than US$lOO,OOO, for individual consultant less than US$50,000 equivalent, and audits.
28. Special Account: A special account will be opened and maintained in DAB o n terms and conditions acceptable to the Association, and will be operated by M o F - G M U in accordance with the Association’s operational policies. The special account will finance only Categories 2,3, and 4. The Authorized Allocation o f the Special Account would be set not to exceed $1 mill ion.
29. be submitted at a minimum o n a monthly basis, regardless o f amount. The minimum application size for withdrawal applications for reimbursement, direct payment, or for applications for Special Commitments i s 20% o f the authorized allocation o f the Special Account.
Minimum application size: Applications for replenishment to the Special Account will
30. separate U S Dol lar and Afghani bank accounts in a bank in Afghanistan, through which a l l receipts and disbursements for the purposes o f the Block Grant Fund shall be channeled. For a l l payment requests, the Client will request the Wor ld Bank to make direct payments in U S Dollars to the Consultant’s bank account in Afghanistan. The Consultant will convert the U S Dollars into Afghanis at the bank in Afghanistan where the accounts are held as and when needed in accordance with community subproject payment schedules. The Consultant shall submit i t s f i rs t payment request to the Client, once the init ial batch o f the sub-project applications have been appraised and contracts with the communities for the eligible sub-projects have been signed The request will be for the amount needed for those sub-projects for the f i rs t six months. Thereafter, the Consultants shall submit quarterly payment requests to the Client for estimated expenditures for the ensuing three months, adjusted for any uncommitted balance (including any interest eamed on payments previously received) along with a statement o f expenditures (SOE), in the format shown in Appendix G o f the Oversight Consultant contract.
Community B lock Grant Account: The Oversight Consultant shall open and maintain
3 1. withdrawal applications to the Association.
Authority to withdraw Credit funds: M o F - G M U will retain the right to s i g n and submit
Action Plan
32. 0
0
0
0
33. 0
0
Before the project becomes effective: Operations manual t o be finalized after considering the lessons f rom the f i rst transfer of funds under the Community Empowerment Project (H009). Confirmation that the functions o f CFO will include FM responsibilities for NSP as indicated above; CFO in consultation with GMU to establish an accounting system and procedures for components other than block grants to communities; Submit audited financial statements o f Community Empowerment and Public Works Project for fiscal year ended 21 March, 2003.
After the project becoming effective: Appointment o f a Finance Officer in the province before transfer o f funds to that province. Monitoring & Evaluation team to include FM expertise.
36
Supervision Plan
34. management supervision. The focus o f the financial management supervision will be o n financial reporting, funds flow, accounting systems, financial management capacity in the provinces, counterpart capacity, internal controls, effectiveness o f the NSP Operational Manual, financial management at the community level and audit arrangements o f the Project.
As mentioned under the risk assessment above, the Project will need intensive financial
37
I -
0 d
APPENDIX 5
ASSESSMENT OF MICROFINANCE, LIVELIHOOD PROJECTS, AND INCOME GENERATING SCHEMES AS AN OPTION FOR COMMUNITY SUB-PROJECTS
1. The National Solidarity Program (NSP) has been established by the government to provide resources through block grants for community managed small-scale reconstruction and development in rural areas, and to promote more participatory and inclusive decision making and governance at the village level. NSP promotes a new development paradigm whereby communities are empowered to make decisions and control resources during al l stages o f the project cycle. NGO best practices in Afghanistan have demonstrated that community-driven projects can succeed even in inhospitable environments provided that certain principles o f participatory planning and technical quality management are followed. The NSP i s implemented by the Ministry o f Reconstruction & Rural Development (MRRD).
Rationale
2. providing credit facilities to poor and vulnerable groups on a sustained basis and enabling them to improve their standard o f living. This has been confirmed by the better social fund and multi-sectoral projects that have included microfinance.2 In the past, social funds similar to the NSP have been used to deliver microfinance in countries where there were n o Microfinance Institutions (Yemen and Bosnia) and also as a means to encourage existing Microfinance Institutions (MFIs) to expand into new regions, serve new types o f clients, and develop new financial products for the target group. The IDA funded project to support the National Solidarity Program, includes an assessment to determine whether a simple approach can be developed for NSP block grants to be used, either partially or fully, for microfinance activities, l ivelihood activities and income generating schemes.
Microfinance (MF)’ has proved that sustainability and poverty outreach are compatible goals, by
Scope
3. in Afghanistan - both existing providers3 as wel l as anticipated new entrants. It will explore the scope for synergies with the Wor ld Bank supported Microfinance Investment and Support Facil ity for Afghanistan (MISFA). M I S F A i s the multi donor, apex microfinance facility in Afghanistan. It i s an independent organization with oversight by MRRD and participating donors. It aims to support the development o f a strong, sustainable microfinance sector in Afghanistan. M I S F A has partnered with 10 microfinance providers (Table 1) to work on capacity building and outreach.
This assessment comprises a review o f the microfinance sector MISFA Institutional Partners
BRAC CARE Mercy Corps FINCA CHF wocuu WfW AREA Save the Children (US) AKDN
Table 1
The term “microfinance” i s often used in a narrow sense to refer principally to microcredit for tiny informal 1
business. Ths assessment uses the term more broadly. The clients are not just micro entrepreneurs, but a whole range o f poor clients who also use financial services to manage emergencies, acquire household assets, smooth consumption and fimd social obligations. The services also include savings.
Alexandra Gross and Samantha de Silva, “ Social Fund Support o f Microfinance: A Review o f Implementation Experience,” SP Discussion Paper No. 0215.
The term microfinance institution and microfinance provider are used in a broad sense to refer to a variety o f institutions, including but not limited to, NGOs, credit unions, savings and loans cooperatives and microfinance banks.
2
3
41
4. In addition to the above, the assessment will also look at experiences with livelihood and income generation activities in Afghanistan and elsewhere to determine whether inclusion o f such activities in the NSP can constitute a viable and sustainable option for the utilization o f block grants by communities.
Methodology
5. discussions with staff o f microfinance programs and livelihood projects, and with M I S F A staff. This Appendix represents an early stage o f the assessment, l imited due to the time constraints and lack o f recorded information available with microfinance service providers. I t i s anticipated that the more detailed review will be completed by January 15,2004.
The methodology employed thus far consists o f secondary data collection and document review,
6. the Oversight Consultant for the NSP, and the Ministry o f Rural Rehabilitation and Development (MRRD). Visits will be conducted to locations (including villages) where microfinance programs, l ivelihood projects, and income generating schemes are already being implemented. Bearing in mind that Afghanistan i s in a unique situation, lessons learned from similar projects in other post-conflict situations wil l also be drawn upon.
Over the next two months extensive interviews will be carried out with a l l MF providers, MISFA,
Challenges and opportunities facing the microfinance sector in Afghanistan
7. More than two decades o f conflict have left Afghanistan’s economic and physical infrastructure significantly damaged. In the recent past, the situation has been exacerbated by severe drought and it i s estimated that over a quarter o f the population are critically poor. L i f e expectancy in Afghanistan i s only 46 years and the unemployment rate i s estimated to be 50% or higher.
8. Consulting in M a y 20034, suggests that in the foreseeable future, micro and small enterprises will be the most important source o f employment for Afghans. The report estimates the current market penetration o f microfinance to be less than 1%. Access to financial services and credit i s a key constraint to business growth. Financial services are needed for a range o f needs: to develop entrepreneurial activities, to cope with crises and to meet planned expenditure.
A report commissioned by the Wor ld Bank and prepared by Enterprising Solutions Global
9. Preliminary assessments carried out by Save the Children (US) suggests that both the need and the demand for microfinance, particularly by women, i s extremely high. On the other hand, introducing credit services will be complicated by existing levels o f indebtedness5. CHF International, CARE and IRC have found a high rate o f indebtedness among micro enterprise target clientele in both urban and rural areas. These findings highlight the need for a range o f financial services, including savings facilities which play a particularly important role in reaching the poorest segments o f society and improving coping mechanisms.
10. services such as savings, combined with the historically trade oriented traditions o f the Afghan people imply an environment ripe for increased financial services.
The lack o f formal employment, the need for funds to invest in business and other financial
“Micro finance Providers in Afghanistan”, Enterprise Solutions Global Consulting, M a y 2003. I t i s important to analyze existing levels o f indebtedness before giving a loan . Whi le indebtedness might 5
prevent clients from timely repayment, depending o n the client and the structure o f the loan (e.g. a longer repayment period), MF could also help raise clients out o f indebtedness.
42
11.
12.
Challenges confronting the expansion o f microfinance services in Afghanistan comprise: (1) Political instability and lack o f security (ii) Corruption and patronage structure (iii) Underdeveloped formal banlung sector (iv) (4 (vi> Rural indebtedness (vii) (viii) Lack o f slul led labor (ix) Di f f icul ty in including women (XI Remoteness o f some areas (xi) Islamic banlung principles (xii) Bad practice programs
Complex, monetary arrangements (US $, Afghanis, Pakistani Rupees) Lack o f regulatory, legal and commercial framework
L o w level o f education and rate o f literacy
Opportunities include: (i)
(ii) Trade economy (iii) (iv) (VI Donor availability (vi> (vii)
Entrepreneurial spirit and traditions which are expressed in the interest by villagers to use block grants for income generation activities
Tradition o f informal banking practices - e.g. hawala6 Interest being shown by domestic and international organizations
Willingness o n part o f players to launch a coordinated and cohesive effort The establishment o f M I S F A as an apex organization for the microfinance sector.
Current MF providers
13. Afghan context, the sector could take o f f if the challenges outlined above are addressed. What i s urgently needed i s funds to grow the loan portfolio and further build the capacity o f these microfinance institutions. M I S F A i s working with i t s 10 partner institutions to address these issues.
There i s reason to believe that though the development o f MF will be highly challenging in the
(1)
(ii)
(iii)
Currently there are 12-1 5 providers extending micro loans (excluding very tiny micro lending components i.e. less than 100 active loans or $25,000 outstanding loan balance) Total outreach i s somewhere between 30-40,000 clients and the outstanding loan balance i s less than $1 mi l l ion according to market surveys undertaken in 20027. Most programs operate in the middle and northern part o f Afghanistan. Kandahar and Farah in the south also have MF programs. Nimroz, Hilmand, Paktika and Khost in the South are not covered at a l l and nor are Ghor, Baghlan, Samangan, Kunduz and Takhar in the north. Within provinces, MF programs operate in no more than 2-4 districts. All providers have multi-sectoral programs, i.e. are more than jus t microfinance providers. Generally, the MF experiment in Afghanistan has not been wel l informed by lessons learned from MF elsewhere in the world. Some NGOs active in the country have treated MF as a charitable undertaking and are less concerned about sustainable financial service delivery to the poor. The majority o f current providers focus exclusively o n the provision o f credit, though some require forced savings and a few promote savings.
(14 (VI
(4
~~
Estimates o f the number o f unregistered money exchange dealers in Afghanistan vary widely from 500-
BRAC makes up for 15,000 o f these clients. This figure also assumes that national organizations such as
6
2000.
NPORAA, CHA and ADA contribute approximately 10,000 clients.
7
43
NGO’s
Credit Unions
Current New Entrants BRAC, Save the Children US, CARE, Madera, DACAAR, IRC, ADA, AREA, CHA, RRAA, AKDN, Parwaz
Mercy Corps, CHF, FINCA, WfW, IAM, ACTED
woccu
Implementation
Banks DAB Others UN Habitat, UNOPS,CDAP
14. facilitating partners, and traditions o f community management.
The NSP will seek to build o n the expertise o f the micro finance providers, the experience o f the
FMBA ILO, UNDCP
1. Microfinance Schemes - alternatives for implementation
15. that there needs to be close collaboration between M I S F A and the NSP for the benefit o f the Afghan people, particularly as both programs have some common partner institutions. In addition, i t was agreed that microfinance funds involving onlending to the community need to be channeled through institutions which are qualified to undertake these programs, preferably through MISFA. The two alternatives suggested in this assessment, take these discussions into account.
Discussions between the Wor ld Bank’s MicroFinance Project and MRRD in M a y 2002 concluded
(1) In villages with pre existing MFIs with proven capacity (as determined by MISFA), the amount o f the block grant chosen by the Community to be used for microfinance will be transferred to the MFI. These funds will not be included in the general portfolio o f the MFI, but will be managed through a separate account exclusively for disbursement to the community. The exact methodology i s to be worked out in conjunction with MFIs and MISFA. In villages where MFIs are not present, funds can be transferred to M I S F A who will consult with its partners to see who would be best suited to serve the community. If it i s established that microfinance services can be provided to the community in question, the funds will then be used to help the MFI increase outreach to include the community. In case of the latter scenario, microfinance services will be implemented only if funds over a certain amount are committed to it. This amount will be decided collaboratively by the microfinance providers and MISFA. If needed, villages can be allowed to submit proposals jo int ly and pool funds to achieve this critical mass. Funds will be channeled, administered and monitored through MISFA. The exact methodology i s t o be determined in conjunction with M I S F A and MFIs. Funds will be divided into two portions. One section will go to the MFI to cover i t s infrastructure cost in expansion while the other will be used by the MFI for distribution to the community. The division o f funds will be determined by the community, the MFI and M I S F A joint ly and be dependant o n the costs incurred by the MFI to expand services. The benefit t o the community will be access to credit facilities on a sustained basis.
(ii)
16. It i s important to keep in mind that integrating microfinance within the NSP carries significant r isks if initiated before adequate capacity has been built in the microfinance sector. Lessons learned in post conflict situations such as Bosnia, Kosovo and Mozambique demonstrate that microcredit can assist
44
even the vulnerable and displaced to support themselves economically’. However, these experiences also show that if a ‘charity’ or grant culture i s allowed to prevail, then microcredit will not only prove ineffective, i t will harm the development o f the (micro) finance and entrepreneurial sector. In the Afghan context, to ensure quality, microfinance institutions need to develop the infrastructure and capacity to start or grow existing programs.
17. The preliminary assessment indicates that it would be preferable for NSP to work through existing microfinance providers because experience has shown that in general it i s better to avoid creating new institutionsg where possible. M I S F A i s actively involved in helping MFIs build capacity and expand outreach. It i s anticipated that most o f MISFA’s ten partner institutions at least will be up to the task o f coping with NSP demands by late 2004 - early 2005. The MFIs to be involved wil l be decided by M I S F A depending on scale o f operation, depth o f outreach, commitment to sustainability, and adequate capacity. The fourth quarter o f 2004 should see the development o f a comprehensive strategy to offer microfinance through pi lot projects in 10-15 villages, spread out geographically across NSP implementing districts, with a demand for financial services. These villages will be ones where MFIs are already operating or are willing to start operations.
2. Revolving Loan Funds and Income Generating Schemes
18. Revolving Loan Funds and Income Generating Schemes are already open to women and disabled under the current NSP Operations Manual. Access for the entire community to such schemes can be introduced on a pi lot basis in the f i rs t quarter o f 2004. These would be project grants to a community as a whole, but would be administered by the community as a revolving loan fund and used for follow-up activities agreed on by the Community Development Council (CDC).
19. Initially, 10-15 pilots villages will be selected. Selection will depend on traditions o f communal management o f community-owned assets and a demonstrated track record o f the Facilitating Partners’ success with similar schemes. Clear indicators to determine pr ior experience in communal management by the community and success o f the FP will be determined in conjunction with the Facilitating Partners. Indicators for community management could include functioning traditional communal management o f irrigation systems (mirab system), and jo in t decision-making regarding zakaat funds collected by mosques. These experiences ensure that jo in t management i s not a new idea being introduced.
20. and maintenance procedures to continue after i t withdraws. Indicators to gauge experience will be developed in conjunction with the Facilitating Partners themselves and will include the number o f similar projects managed in the past, sustainability o f these projects, experience in establishing oversight and maintenance procedures etc. These prior experiences on the part o f both the community and the Facilitating Partners will be built upon to ensure against elite capture o f community-owned assets or fraud.
Experience on the part o f the Facilitating Partner i s necessary to develop sustainable oversight
21. In the init ial p i lot phase (first quarter o f 2004), these schemes would involve the establishment o f a revolving loan fund from the amount the community selects to use for this purpose from i t s b lock grant. As with other sub-projects, a community contribution o f 10% would be required. This loan fund would be used for income generating activities decided upon and managed by the CDC. The Facilitating Partner will supervise establishment o f sustainable oversight and management by training and helping the
Doug Pearce , “Lessons learned from the World Bank supported Apex Facility in Bosnia,”, Afghanistan
Alexandra Gross and Samantha de Silva, “Microfinance and Rural Finance Operational Notes for World
8
Microf iance Review Mission, May 2002.
Bank Staff’, CGAP, August 2003 .
45
community build capacity. Loan repayment and profits generated (if any) would be managed by the CDC and used for second generation activities, whether community infrastructure, new revolving fund loans for income generation, or community welfare activities such as literacy classes. The exact methodology i s to be worked out in conjunction with Facilitating Partners.
22. Facilitating Partner have n o pr ior record o f implementing Revolving Loan Funds and Income Generating Schemes during the second quarter o f 2004. In the third quarter o f 2004, a comprehensive review should be conducted to determine whether these schemes can be offered o n an enlarged scale.
Based on lessons learned in these pilots, activities may be expanded to villages where
23. T o avoid elite capture or fraud, the design for this type o f activities must establish checks and balances as wel l as community management procedures that enable effective use o f social controls. A detailed supervision plan that Facilitating Partners need to fo l low i s required, as experience with other decentralized, community-based, poverty reduction projects" have proved the role o f the facilitator to be critical not only for start up but also for follow-up and reinforcement.
Loans versus Grants
24. their eligibil i ty for loans (microfinance) or grants (income generating/ livelihoods). The l i s t o f projects wi l l be compiled based o n preliminary findings o f Facilitating Partners regarding projects that communities express an interest in. This l i s t i s expected to be dynamic as NSP expands and communities come up with varying requests.
This assessment will also draw up an init ial l i s t o f proposed community projects and distinguish
25. grants, whereas income generating projects will need to be assessed o n a case by case basis to determine whether CDCs envision that the asset in question will be a public or private good. Private goods (e.g. a tractor or truck) will not be eligible to receive grant funding from the NSP block grants, but might qualify as loans channeled through a microfinance institution, or as a second generation loan from a revolving fund managed by a CDC . However, a number o f projects straddle the l ine between public infrastructure and income generation. Examples are hydro-electric facilities and flour mills. If jo in t ly managed by the community, both o f these activities would be eligible for b lock grant funding under the current NSP guidelines, but if privately held and managed as an enterprise, they would currently not be eligible until a methodology i s in place, that provides for use o f b lock grants for microfinance loans.
Broadly speahng, infrastructure projects are usually public goods and therefore eligible for
Immediate Needs
(i) UN Habitat has carried out an informal survey in some o f the villages where it i s an NSP Facilitating Partner to establish the types o f projects communities are interested in selecting. Other Facilitating Partners should be encouraged to carry out similar surveys (on a small scale) or establish through discussion, the level o f interest in financial/ credit services and/or income generating schemes and livelihood projects. A workshop should be held with NSP Facilitating Partner involved in revolving funds and IG schemes to provide inputs for the design for a pi lot project. Simultaneously, the current assessment, with support f rom MISFA, wil l determine key players, new entrants, regions covered, and best practice. The assessment will conclude with a detailed methodology for introducing l ivelihood schemes and income generating projects into the NSP in the f i r s t quarter o f 2004. This methodology will be determined in
(ii)
(iii)
lo An example o f such a project i s the Kecamatan Development Project in Indonesia.
46
collaboration with facilitating partners, microfinance providers and MISFA. The review will further lay out a preliminary strategy to integrate microfinance into NSP by end 2004. This strategy will take into consideration the development o f the microfinance sector over 2004.
Abbreviations and Acronvms Used
AKDN: M U : BRAC: CDAP: CDC: DAB: FMBA: IAM: ILO: ME: MF: MFI : MRRD: MSP: NGO: sc: UNAMA: UNOPS: wocuu:
Aga Khan Development Network Afghanistan Research and Evaluation Unit Bangladesh Rural Advancement Committee Comprehensive Disabled Afghans Program Community Development Council Da Afghanistan Bank First Microfinance Bank o f Afghanistan International Assistance Mission International Labor Organization MicroEnterprise MicroFinance MicroFinance Institution Ministry o f Rehabilitation and Rural Development MicroFinance Service Provider Non-Governmental Organization Save the Children (US) United National Assistance Mission in Afghanistan United National Office for Project Services World Council o f Credit Unions
47
Appendix 6
PERFORMANCE INDICATORS
1 (i) Decrease in poverty level, I 1 External evaluation, I Mid-term evaluation I
Development Councils
--i----- ----- I I
Capacity Development Number o f community members >9,000 M I S & extemal trained (financial Management evaluation I I
90%-of O&M expenses are being projects whichrequire evaluation months after sub- collected I cost recoverv for O&M I Droiect comdet ion
48
APPENDIX 7
MONITORING AND EVALUATION ARRANGEMENTS
The NSP's monitoring and evaluation (M&E) system i s intended to provide adequate information to the relevant stakeholders on project implementation performance, process, outputs, and outcomes. The main purpose o f the monitoring system i s to provide timely feedback to key stakeholders, so that lessons can be leamed o n a real time basis and mid-course corrective action initiated where necessary. The M&E system has four components: (i) implementation monitoring -physical/financial; (ii) process monitoring; (iii) post-implementation monitoring, including sustainability monitoring o f completed sub-projects and audits; and (iv) outcome evaluation. A computerized M I S system will ensure that information f l ow takes place smoothly at a l l levels, and that data are electronically processed f rom provincial level upwards.
-momtonng.: At the village level, communities will assisted by their Facilitating Partner to monitor their own progress based on a few self-selected key indicators (e.g. on process/participation, implementation progress/results, and expenditures). Simple formats will be developed for this purpose and maintained at the villageiFP level. The effort would be to widely display and communicate the results o f such monitoring within the village. At the next level, the Facilitating Partner, using the village as the basic unit o f monitoring, wi l l provide a comprehensive report, including physical (and other outputs) and financial progress, o n a quarterly basis to the NSP-Province office. The Facilitating Partner's quarterly report will include the findings o f the community monitoring. A briefer, summary report o n the status o f implementation will be submitted on a monthly basis (Attachment 1 below).
The Facilitating Partner's quarterly progress reports will cover the district(s) or province(s) in which the particular Facilitating Partner i s responsible for facilitation o f the NSP. Where more than one Facilitating Partner i s involved in facilitation in a particular province, their reports will be aggregated at the NSP-Province level. Provincial quarterly progress reports will then be aggregated at the national level by MRRD/Oversight Consultant (Attachment 2). At the national level, quarterly progress reports for the project as a whole will be generated and shared with key stakeholders, including the NSP Steering Committee, Facilitating Partners, and donor agencies.
Monitoring data for aggregated reporting for the provincial level will be entered into a standardized electronic MIS, and the f low o f monitoring information and findings deriving f rom this information can be depicted as follows:
Village Facilitating Partner f ie ld staff reports to Facilitating Partner district and provincial management
on progress and findings o f community self-monitoring. Results are communicated to the public
and discussed with the with Development Council
District Facilitating Partner district management staff process the village reports,
add comments, f i le one copy, forward one copy to Facilitating Partner HQ and follow-up o n issues
11- monthly summary and quarterly @J or IS Province
Facilitating Partner Provincial office (or MRRD, if there i s more than one
a monthly or triggered I
49
Facilitating Partner in the province) inputs data f rom reports (including comments) into computerized M I S and generates simple province reports, by district and village.
Follow-up for sites that seem to need special attention a monthly summary and quarterly 62
National MRRD/Oversight Consultant inputs data into the main M I S system; conducts analysis and
generates national report, as wel l as comparative province and district reports
Province Public display o f province datdanalysis. Comparisons with other provinces
and between districts within the province as a basis for discussions between Facilitating Partner and NSP
A 3 monthly summary and quarterly @ or 62 District
Public display o f activity datdanalysis and district comparisons; discuss progress and problems with FP field staff
Village Periodic public meetings with Community Development Council and community wide assembly to discuss progress and problems
monthly summary and quarterly 62
monthly summary and quarterly H or El
Post-imulementation monitoring: The purpose i s primarily to determine whether communities are operating and maintaining their facilities in a sustainable manner. This will be carried out through random sample monitoring by the Oversight Consultant three months and six months after sub-proj ects are completed in a particular village, and through external evaluation.
Process monitoring: Process indicators are included in the Facilitating Partners’ quarterly progress report. In addition, MRRD/Oversight Consultant will separately conduct, o n a sample basis, a bi-annual process monitoring exercise. This wil l involve the hiring o f an external agency to spend significant time in the f ie ld to monitor key processes at the village level, make cross- village/province comparisons and suggest remedial action where required.
Evaluation: To evaluate project outcomes in terms o f assessing whether the NSP i s meeting i t s Program Objectives, key performance indicators have been developed (Appendix 6). Achievements against these will be evaluated on a bi-annual basis by an external evaluation consultant. In addition, regular supervision, and a mid-term review will be conducted by IDA. At the end o f the project period, IDA will produce an Implementation Completion Report, which focuses on evaluating whether the project objectives and targets for key performance indicators have been met.
Institutional arrangements for M&E: The M&E system wil l be managed by MRRD/Oversight Consultant at the provincial level and national level with inputs f rom Facilitating Partners. While i t i s expected that the MRRD/Oversight Consultant staff at the provincial level will frequently make village visits, it i s important to stress that senior personnel f rom MRRD/Oversight Consultant’s HQ and the NSP Steering Committee should also go to the f ie ld periodically, to get better acquainted with ground realities. MRRD/Oversight Consultant will also hold meetings and workshops with Facilitating Partners (at least quarterly) to share the results o f monitoring and receive feedback f rom them. The monitoring system and the NSP Operational Manual will thus be periodically updated and improved, malung both l ive instruments for improving project performance.
50
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APPENDIX 8
ENVIRONMENTAL & SOCIAL MANAGEMENT FRAMEWORK FOR THE NATIONAL SOLIDARITY PROJECT
Background
1. Afghanistan’s National Programme for Reconstruction, by promoting three o f i t s key elements, namely the use o f assistance to create conditions for people to l ive secure lives and build human capital, physical reconstruction, and private sector development. The project would constitute one o f the six national priority sub-programs- the National Solidarity Program (NSP) - under one o f the 12 National Development Programs: Livelihoods and Social Protection. The key development issues addressed by the project are:
The proposed National Solidarity Project would support the Transitional Islamic State o f
0 Rural reconstruction: More than two decades o f conflict have resulted in extensive destruction o f infrastructure and massive population displacements. A severe drought lasting f rom 1999 till 2002 has further increased rural poverty, depleted available assets, and led to further displacements. The project will provide resources through block grants to rural communities for investments in reconstruction or development activities planned and managed by the communities themselves. Activities will either be implemented directly by the communities or through sub-contracting to the private sector.
Strengthening o f local governance: Decisions o n the use o f block grants will be made through an inclusive participatory decision malung process led by community development councils elected through secret ballot. This process will facilitate the emergence o f consultative decision making and legitimate local leadership, which can form the basis for relations between communities and the local govemment apparatus including other assistance programs.
Enhancing govemment effectiveness: Capacity would be built within Ministry of Rehabilitation & Rural Development (MRRD) to supervise the standards and procedures for financial management, disbursement, social and environmental management and community projects that would be a requirement for the local level planning and management o f b lock grants, which i s the core o f the NSP.
0
0
2. the Emergency Community Empowerment & Public Works Project (H009), that became effective in June, 2002, and that i s currently under implementation in 87 districts in 3 1 o f the country’s 32 provinces. The current NSP project has demonstrated, that despite a volatile security situation and limited government authority in much o f the rural areas, it has been possible to launch a large scale CDD project across the country.
The project i s a follow-up to the community driven development (CDD) component o f
Project Objective
3. community level governance, and to assist the reconstruction and development o f rural communities through a program framework, that can form the basis for future development interventions by the state at the village level. The outcomes will be (i) the establishment o f a framework for village level consultative decision making and representative local leadership as a
The objective o f the project i s to lay the foundations for a long-term strengthening o f
56
basis for interaction between communities on the one hand, and the government and aid agencies o n the other, and (ii) local level reconstruction, development, and capacity building which will lead to a decrease in poverty levels.
Project Description
4. villages in the country within a four year time frame. This would require funding during the f i rs t year o f implementation o f US$160 million, and a total funding requirement over the four year period o f around U S 7 8 0 mill ion. The project to be supported by IDA would contribute to achieve the targets o f the larger program, and would be funded through an IDA Grant o f US$95 mi l l ion plus estimated co-financing o f US$65 mi l l ion f rom other donors. Whi le the IDA supported project would be for three years, i t would at the same time support the achievement o f the first year implementation target.
The goal o f the Government i s to scale-up the NSP to cover al l the estimated 20,000
5. The project will finance four components: Component 1: Grants for Community Projects (US$73.52 million) comprises block grants to communities for reconstruction and development activities selected by the communities through a facilitated participatory planning process with elected Community Development Councils. Component 2: Goods (US$1.1 million) comprises additional equipment for MRRD such as vehicles, radio equipment, computers, and furniture for f ield offices Component 3: Consultant Services and Training (US$18.38 million) comprises implementation support and capacity building by Facilitating Partners to communities and by the NSP Oversight Consultant to MRRD and Facilitating Partners. Component 4: External Monitoring and Evaluation (US$2 million) comprises external monitoring, evaluation and studies to verify implementation status, assess achievement o f project objectives/outcomes, and undertake research on specific issues related to program policy or implementation.
Potential impacts of various components
6. Activities envisaged under the project should not entail significant and negative environmental and social impacts, provided they are designed and implemented with due consideration o f environmental and social issues. Rather, most sub-projects envisaged under the project should contribute to improving environmental and social conditions in rural Afghanistan. Adverse impacts may arise due to depletion or degradation o f natural resources such as stone, earth, water etc. used for construction o f small-scale infrastructure. Construction activities may cause limited, temporary, and localized negative impacts that can be mitigated through the implementation o f an appropriate social and environmental management plan. Certain types o f investments with negative environmental or social impacts cannot be undertaken and are included in a negative l i s t o f prohibited investments. In terms o f social impacts, the project falls in the S-3 category o f the Guidelines for Land and Asset Acquisition, Entitlements, and Compensation (Attachment 3).
7. involuntary land acquisition i s unlikely for the kind o f small-scale activities that will be undertaken under the project for two reasons. The f i rs t is, that local authorities do not have access to funds to purchase land or other assets if land acquisition were to be undertaken. The second is, that the political costs (in terms o f opposition f rom affected landownershsers) would in al l likelihood deter the government apparatus f rom attempting to acquire any land against the wil l o f those affected. If any minor areas o f land would be needed for a project (e.g. realignment o f an irrigation canal, or land for a school), such land could only be obtained through either private voluntary donations, compensation paid by the community (i.e. transaction between
No land acquisition i s anticipated. In the current socio-political context in the rural areas,
57
willing buyer-wil l ing seller), or f rom available government land. Private voluntary donations and community purchases would be documented as required by the Framework, and for government land, documentation would be needed that the land i s free o f encroachments, squatters or other encumbrances, and has been transferred to the project by the authorities.
8. groups are included as beneficiaries, and that their concerns are addressed in compliance with the requirements o f OD 4.20. The key elements o f this strategy are (i) the project i s national in scale and coverage, and consequently reaches al l the country’s different ethnic groups, (ii) the facilitated participatory planning process at the community level includes an approach for election o f Community Development Councils, which will provide for representation o f a l l sub- groups in the community, (iii) both internal monitoring and external independent evaluation will assess the inclusiveness o f Community Development Councils and thus provide information that would constitute the basis for corrective actions, if necessary, and (iv) independent monitoring by c iv i l society (NGOs and the press) will provide another mechanism to identify cases where ethnic minority would have been bypassed or marginalized.
The design for the project defines a strategy, which will ensure that ethnic minoritv
9 . projects involv ing c i v i l works will be reported to the provincial or district governors, who then wil l in form the Archaeological Committee.
Chance finds o f cultural proper& (archaeological artifacts) during implementation o f sub-
10. an environmental, social and mine risk screening procedure (check lists) required for sub-project proposals, and by internal input, process, and output monitoring, independent external monitoring by consultants, and by Bank supervision missions.
Compliance with the safeguard provisions and the negative l i s t will be ensured through
Purpose o f the Environmental and Social Management Framework
1 1. capacity constraints. Since there i s potential for adverse environmental impacts, albeit limited, f rom the proposed activities under the NSP, their mitigation and management i s key to the wholesome development o f rural communities throughout Afghanistan. Hence, keeping in view the existing management capacity, as wel l as the flexibil i ty required due to the demand-driven nature o f the project, a framework approach i s adopted. It provides for early identification o f potential adverse impacts, without the requirement o f rigorous analysis through quantification, and also provides broad guidance for their effective mitigation. Consistent with existing national legislation, the objective of the Framework i s to help ensure that activities under the project will:
Currently social and environmental management in Afghanistan i s suffering f rom critical
0 Protect human health;
0
0
Prevent or compensate any loss o f livelihood;
Prevent environmental degradation as a result o f either individual subprojects or their cumulative effects;
Enhance positive environmental and social outcomes; and,
Ensure compliance with Wor ld Bank safeguard policies.
0
0
General Principles
12. related need for providing assistance, while at the same time ensuring due diligence in managing potential environmental and social risks, this Framework i s based o n the following principles:
Recognizing the emergency nature o f the proposed reconstruction operation, and the
58
0 The project will support multiple sub-projects, the detailed designs o f which i s known at appraisal. T o ensure the effective application o f the Wor ld Bank’s safeguard policies, the Framework provides guidance on the approach to be taken during implementation for the selection and design o f sub-projects, and the planning o f mitigation measures; All proposed sub-projects will be screened (using Matr ix 1) to ensure that the environmental and social risks can be adequately addressed through the application o f standardized guidelines (using Matr ix 2); The design o f the NSP aims at ensuring regional balance in terms o f coverage o f ethnic and religious groups, as wel l as gender equity with regard to decision malung on sub-project selection and project benefits. Employment opportunities within the projects will be available on an equal basis to all, on the basis o f professional competence, irrespective ethnic or religious group affiliation. In al l projects which require consultations with local communities or beneficiaries, gender-separated consultations will be conducted to elicit the views o f the female population, along with that o f the male population; and, Consultation and disclosure requirements will be simplified to meet the special needs o f these operations. Prior to approval by the Wor ld Bank Board, this Environmental and Social Safeguards Framework wil l be disclosed in Afghanistan in Dar i and Pashto, and in the Wor ld Bank Infoshop.
0
0
Safeguard Screening
13. will be consistent with the following guidelines:
Additionally, the selection, design, contracting, monitoring and evaluation o f subprojects
0 A negative l i s t o f characteristics that would make a proposed subproject ineligible for support (Attachment 1);
Guidelines for land and asset acquisition, entitlements and compensation (Attachment 2);
Procedures for the protection o f cultural property, including the chance discovery o f archaeological artifacts, and unrecorded graveyards and burial sites (Attachment 3);
0
Mitigation measures
14. Sound design will if not eliminate, then at least diminish to the extent possible, most o f the potential adverse impacts o f project activities. Good Engineering design will, in most cases, have a positive impact on the environmental conditions in the project area. Construction and operation stage impacts will be addressed through a simplified Environmental Management Plan. Social and environmental guidelines and codes o f practice will be included in the Project’s technical manual, that i s currently under preparation.
Responsibilities for Safeguard Screening and Mitigation
15. Rehabilitation and Rural Development (MRRD). A designated Safeguards Nodal Officer will be identified with responsibility for overseeing the implementation o f the Environmental and Social Safeguards Framework and Management Plan within the Project Management Team (PMT) at the MRRD. The Ministry’s Focal Point will be supported by the Oversight Consultant firm managing
The overall responsibility o f project implementation rests with the Ministry o f
59
the implementation o f the project, which will be responsible for (i) appraising sub-project proposals, and (ii) monitoring that sub-project implementation i s in accordance with the provisions o f the social and environmental management framework
Capacity Building
16. implementation o f IDA-financed operations in Afghanistan, the Safeguards Focal Points and relevant staff o f the MRRD and implementing agencies/Consultants will receive training in the application o f the Safeguard Framework. It i s proposed to prepare specific materials, hold a workshop, and arrange site visi ts to other countries in the region o n similar projects in progress to provide hands-on training to the Ministry and implementing agency staff. Specialist training modules may be considered after an acceptable level o f base knowledge has been established. This capacity building activity will be implemented under a separate Technical Assistance program for Environmental and Social management.
As part o f the social and environmental capacity building that will be provided for
17. and if required will recommend additional strengthening.
During supervision o f the project, IDA will assess the implementation o f the Framework,
Consultation and Disclosure
18. Dar i and Pashto, as wel l as English, and it will also be made available at the Wor ld Bank’s Infoshop. I t i s worth noting that I T S A intends to make a l l project documentation publicly available through the Afghan Information Management System (AIMS).
This Environmental and Social Safeguards Framework wil l be disclosed by I T S A in both
19. Extensive consultations have been held with the Facilitating Partner NGOs regarding the NSP approach and implementation arrangements. Sub-projects will involve consultations within the communities regarding (i) the holding o f secret ballot elections for representative community development Councils, (ii) prioritization o f community needs, (iii) identification o f projects corresponding to these needs, (iv) development and costing o f sub-project plans, and (v) arrangements to ensure disclosure o f budget and expenditures. The following information on the project would be posted o n TISA’s web-site: summaries o f quarterly NSP implementation progress reports, summaries o f annual project financial statements and audit reports, and summaries o f findings f rom monitoring and supervision teams (after a reasonable period for internal review).
60
Attachment 1
Negative List o f Subproiect Attributes
Subprojects with any o f the attributes listed below will be ineligible for B lock Grant Funding under the proposed Emergency National Solidarity Project:.
Attributes of Ineligible Subprojects Involves the significant conversion or degradation o f critical natural habitats. Including, but not l imited to, any activity within:
0 Ab-i-Estada Waterfowl Sanctuary;
0 Dashte-Nawar Waterfowl Sanctuary; 0 Pamir-Buzurg (Proposed) Wi ld l i fe Sanctuary; 0 Bande Amir National Park;
0 Ajar Valley (Proposed) Wi ld l i fe Reserve;
0 Ko le Hashmat Khan (Proposed) Waterfowl Sanctuary.
Will significantly damage non-replicable cultural property, including but not l imited to any activities that affect the following sites:
monuments o f Herat (including the Friday Mosque, ceramic ti le workshop, Musallah complex, Fifth Minaret, Gawhar Shah mausoleum, mausoleum o f Ali Sher Navaii, and the Shah Zadehah mausoleum complex); monuments o f Bamiyan Valley (including Fuladi, Kakrak, Shar-I Ghulghular and Shahr-i Zuhak); archaeological site o f Ai Khanum; site and monuments o f Ghami; minaret o f Jam; mosque o f H a j i P iyadaNu Gunbad, Balkh province; stupa and monastry o f Guldarra; site and monuments o f Lashkar-i Bazar, Bost; archaeological site o f Surkh Kotal.
Requires involuntary acquisition o f land, or any resettlement o f people.
Requires:
0 equipment or materials that are included in the annual implementation plans by other agencies (e.g. by other government or NGO projects that are operating in the area);
political campaign materials or donations in any form;
weapons including (but not l imited to), mines, guns and ammunition;
0
61
Attributes of Ineligible Subprojects b
b
b
b
b
b
b
b
b
b
chainsaws;
pesticides, herbicides and other chemicals;'
investments detrimental to the environment;
motorized extraction o f groundwater;'
involuntary land acquisition under any conditions;
construction, rehabilitation, or maintenance o f any government office buildings;
payments o f salaries to government servants or the salaries o f the staff o f government subsidized organizations;
any activity on land that i s considered dangerous due to security hazards or the presence o f unexploded mines or bombs;
any activity o n land or affecting land that has disputed ownership, tenure or user right^.^ any activity that will support drug crop production or processing o f such crops.
Exceptions may be considered based o n an assessment by the NSP (with specialized consultant 1
assistance, if required, and after n o objection f r o m IDA) in special situations such as eradication o f infestations o f locusts o r sen pest.
some areas contributed to lower the ground water table, and constitute a threat t o the traditional sustainable irrigation by karez. Until water resource assessments o f a particular catchment area or basin has been undertaken and has established that irrigation i s feasible, investments in motorized irr igation wells i s no t permitted.
Thus, investments involving an expansion o f the command area o f an irrigation system can only take place with agreement f rom the owners (or users in case o f tribal common land) o f the land brought under new irrigation.
Indiscriminate installation o f irrigation wells using motorized extraction o f ground water have in 2
3
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Attachment 2
Guidelines for Land and Asset Acquisition, Entitlements and Comuensation
I. Objectives
Land acquisition will be kept to a minimum and n o person wil l be involuntarily displaced under sub-projects financed by the proposed emergency reconstruction operation. Sub-project proposals that would require demolishing houses or acquiring productive land should be carefully reviewed to minimize or avoid their impacts through alternative alignments. Proposals that require more than minor expansion along rights o f way should be reviewed carefully. N o land or asset acquisition may take place outside o f these guidelines. A format for Land Acquisition Assessment i s attached as Attachment 2(i).
These guidelines provide principles and instructions to compensate affected persons to ensure that a l l such persons negatively affected, regardless o f their land tenure status, will be assisted to improve, or at least to restore, their living standards, income earning or production capacity to pre-project levels.
Categorization
Based on the number o f persons that may be affected by the project (Project Affected People, PAPs) and the magnitude o f impacts, projects may be categorized as S-1, S-2, or S-3 projects:
a. S-1 projects are those that will involve the resettlement o f more than 200 PAPs and where a full Resettlement Act ion Plan (RAP) must be produced. Such interventions will be ineligible for support under the proposed emergency reconstruction operations. S-2 projects are those which will involve the resettlement o f less than 200 persons. In such cases, the fo l lowing documentation i s required: (1) a land acquisition assessment, (2) the Minutes or record o f consultations which assess the compensation claimed and agreement reached, and (3) a record o f the receipt o f the compensation, or voluntary donation, by those affected (see below). S-3 projects are not expected to have any land acquisition or any other significant adverse social impacts; on the contrary, significant positive social impact and improved livelihoods are expected from such interventions.
b.
C.
11. Eligibility
PAPs are identified as persons whose livelihood i s directly or indirectly affected by the project. PAPs deemed eligible for compensation are:
(1)
(2)
(3)
those who have formal legal rights to land, water resources or structureshuildings, including recognized customary and traditional rights; those who do not have such formal legal rights but have a c la im to usufruct right rooted in customary law; those whose claim to land and water resources or building/structures do not fall within (1) and (2) above, are eligible to assistance to restore their livelihood.
Acquisition of Productive Assets and Compensation
PAPs are eligible for replacement costs for lost assets as described below:
63
a. Voluntaly contributions. In accordance with traditional practices, individuals may elect to voluntarily contribute land or assets and/or relocate temporarily or permanently f rom their land without compensation.
Contributions against compensation. A contributorlasset loser considered "affected" will be eligible for compensation f rom the local community or alternatively f rom the Government. A PAP shall lodge hisher claim for compensation to the local community representativeshhura head and i t shall be verified by the implementing agency. The claim shall be lodged within 2 weeks o f completion o f the consultations with the concerned community, and before project implementation begins.
b.
Voluntary contribution, or contribution against compensation, should be documented. The documentation should specify that the land i s free o f any squatters, encroachers or other claims. A format i s attached in Attachment 2(i), which includes a Schedule to be followed to assess any compensation claimed and the agreement reached.
111. Compensation Principles
The project implementing agencies shall ensure that any o f the following means o f compensation are provided in a timely manner to affected persons:
(1) Project affected persons losing access to a portion o f their land or other productive assets with the remaining assets being economically viable are entitled to compensation at replacement cost for that portion o f land or assets lost to them. Compensation for the lost assets will be according to following principles: a. replacement land with an equally productive plot, cash or other equivalent
productive assets; b. materials and assistance to fully replace solid structures that will be demolished; C. replacement o f damaged or lost crops and trees, at market value; d. other acceptable in-kind compensation; e. in case o f cash compensation, the delivery o f compensation should be made in
public, i.e. at the Community Meeting.
(2) Project affected persons losing access to a portion o f their land or other economic assets rendering the remainder economically non-viable, will have the options o f compensation for the entire asset by provision o f alternative land, cash or equivalent productive asset, according to the principles in (1) a-d above.
Consultation Process
The implementing agencies wil l ensure that a l l occupants o f land and owners o f assets located in a proposed sub-project area are consulted. There will be gender-separate community meetings for each affected mantaqa/gozar (urban infrastructure) or village (other projects) to in form the local population about their rights to compensation and options available in accordance with these Guidelines. The minutes o f the community meetings shall reflect the discussions held, agreements reached, and include details o f the agreement, based o n the format provided in Attachment 2(ii).
The implementing agency shall provide a copy o f the Minutes to affected persons and conf i rm in discussions with each o f them their requests and preferences for compensation, agreements
64
reached, and any eventual complaint. Copies will be recorded in the posted project documentation and be available for inspection during supervision.
Subproject Approval
In the event that a subproject involves acquisition against compensation, the implementing agency shall:
a. not approve the subproject unless a satisfactory compensation has been agreed between the affected person and the local community;
b. not allow works to start until the compensation has been delivered in a satisfactory manner to the affected persons;
c. if more than 200 persons are affected and require compensation, the subproject shall be deemed ineligible for support under the emergency reconstruction operations.
Complaints and Grievances
All complaints should f i rst be negotiated to reach an agreement at the local community/village level. If this falls, complaints and grievances about these Guidelines, implementation o f the agreements recorded in the Community Meeting Minutes or any alleged irregularity in carrying out the project can also be addressed by the affected persons or their representative at the municipal or district level. I f this also fails, the complaint may be submitted to the relevant implementing agency for a decision.
Verification
The Community Meeting Minutes, including agreements o f compensation and evidence o f compensation having been made shall be provided to the Municipality/district, t o the supervising engineers, who will maintain a record hereof, and to auditors and socio-economic monitors when they undertake reviews and post-project assessment. T h i s process shall be specified in al l relevant project documents, including details o f the relevant authority for complaints at municipal/district or implementing agency level.
65
Attachment 2(i)
Land Acquisition Assessment Data Sheet
(To be used to record information on all land to be acquired)
1. Quantities o f land/structures/other assets required:
2. Date to be acquired:
3. Locations:
4. Owners:
5. Current uses:
6. Users:
0 Number o f Customary claimants: 0 Number o f Squatters: 0 Number o f Encroacher: 0 Number o f Owners: 0 Number o f Tenants: 0 Others (specify): Number:
7. H o w land/structures/other assets will be acquired (identify one):
0 Donation 0 Purchase
8. Transfer o f tit le:
0
0
Ensure these lands/structures/other assets free o f claims or encumbrances. Written proof must be obtained (notarized or witnessed statements) o f the voluntary donation, or acceptance o f the prices paid, f rom those affected, together with proof o f t it le being vested in the community, or guarantee o f public access, by the title-holder.
9. Describe grievance mechanisms available:
66
Attachment 2(ii)
Format to Document Contribution o f Assets
The fol lowing agreement has been made o n ............................ day o f ............................. between ............................................... resident o f ............................................. the Owner) and ...................................................... .(the Recipient).
1. That the Owner holds the transferable right o f ............................................ .jerib o f landstructure/asset in., ..................................................................................
2. That the Owner testifies that the landstructure i s free o f squatters or encroachers and not subject to other claims.
3. That the Owner hereby grants to the Recipient this asset for the construction and development o f ................................ for the benefit o f the villagers and the public at large.
(Either, in case of donation:)
4. That the Owner will not claim any compensation against the grant o f this asset.
(Or, in case of compensation:)
4. That the Owner will receive compensation against the grant o f this asset as per the attached Schedule .
5. That the Recipient agrees to accept this grant o f asset for the purposes mentioned.
6. That the Recipient shall construct and develop the.. ..................... .and take a l l possible precautions to avoid damage to adjacent landstructure/other assets.
7. That both the parties agree that the.. ........................ .so constructeddeveloped shall be public premises.
8, That the provisions o f this agreement will come into force f i om the date o f signing o f this deed.
Signature o f the Owner:
Witnesses: 1.
Signature o f the Recipient:
2. (Signature, name and address)
67
Summary of affected unithtem
Schedule of Compensation of Asset Requisition
Units to be Compensated Agreed Compensation
a. Urbadagricultural land (m’):
b. Houses/structures to be demolished (units/m2):
c. Type o f structure to be demolished (e.g. mud, brick, etc.) N o t Applicable.
d. Trees or crops affected:
e. Water sources affected:
Signatures o f local community representatives, shura head:
Include record o f any complaints raised by affected persons:
M a p attached (showing affected areas and replacement areas):
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Attachment 3
Protection of Cultural Propertv
Physical culture includes monuments, structures, works o f art, or sites o f "outstanding universal value" f rom the historical, aesthetic, scientific, ethnological, or anthropological point o f view, including unrecorded graveyards and burial sites. Within this broader definition, cultural property i s defined as sites and structures having archaeological, paleontological, historical, architectural, or religious significance, and natural sites with cultural values.
The proposed emergency reconstruction operations are unlikely to pose a risk o f damaging cultural property, as the sub-projects will largely consist o f small investments in community infrastructure and income generating activities, reconstruction o f existing structures, and minor urban public works. Further, the negative l i s t o f attributes, which would make a subproject ineligible for support (Attachment I), includes any activity that would significantly damage non- replicable cultural property. Nevertheless, the following procedures for identification, protection f rom theft, and treatment o f chance finds should be followed and included in standard bid documents.
Chance Find Procedures
Chance find procedures are defined in the law on Maintenance o f Historical and Cultural Monuments (Official Gazette, December 2 1, 1980), specifying the authorities and responsibilities o f cultural heritage agencies i f sites or materials are discovered in the course o f project implementation. This law establishes that a l l moveable and immovable historical and cultural artifacts are state property, and further:
1. The responsibility for preservation, maintenance and assessment o f historical and cultural monuments rests with the Archaeological Committee under the Ministry o f Information and Culture, which has representation at provincial level.
2. Whenever chance finds o f cultural or historical artifacts (moveable and immovable) are made the Archaeological Committee should be informed. Should the continuation o f work endanger the historical and cultural artifacts, the project work should be suspended until a solution i s found for the preservation o f these artifacts.
3. If a moveable or immovable historical or cultural artifact i s found in the countryside o f a province, the provincial governor (wali) or district-in-charge (woluswal) should be informed within two weeks, and they should in form the Archaeological Committee. In case the immovable historical or cultural artifact i s found in a city, the provincial branch o f the Department o f Maintenance o f Historical Values o f the Ministry o f Information and Culture should be informed within two weeks (art. 18). I f the find i s made within the center, the Archaeological Committee must be informed directly within one week (art. 25).
4. Failure to report a chance find within the stipulated time limit will be punished with a fine or imprisonment for a period o f one week or up to one month (art. 72).
5. If someone intentionally damages a historical or cultural artifact, the culprit shall pay compensation in accordance with the value o f the artifact plus be imprisoned for a period o f one month to ten years depending on the gravity o f the crime (art. 71).
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In case o f a chance find o f moveable or immovable historical or cultural artifact, the implementing agency i s responsible for securing the artifact fi-om theft, pilferage and damage until the responsibility has been taken over by the relevant authorities as specified above.
These procedures must be referred to as standard provisions in construction contracts, when applicable. During project supervision, the Site Engineer shall monitor that the above regulations relating to the treatment o f any chance find encountered are observed.
Relevant findings will be recorded in Wor ld Bank Project Supervision Reports (PSRs), and Implementation Completion Reports (ICRs) will assess the overall effectiveness o f the project’s cultural resources mitigation, management, and capacity building activities, as appropriate.
70
M a t r i x 1
Impact Identification and Assessment for Afghanistan Kational Solidarity Project
Name o f the sub-project: Location: Code: -
/(Important: Ensure that section F, & only 1 o f sections A, B, C ,D or E have been fi l led up)/
Part A: Sub-projects related to Irrigation and Watershed Management structures (Rehabilitation / construction o f water retaining structures, rehabilitation / construction o f new drains, erosion protection, etc.)
Pot en tial Impacts
I Reduced downstream water availability Flood regime change Waterlogging Less dilution o f discharges f rom settlements
1 Pesticide I Toxic comDound uresence
Stream morphology and regime change Pollution fi-om disposal o f sediment accumulated in channels I structures Sedimentation Damage to cultural I archaeological siteslproperties Weed Removal causing loss o f Important species surviving due to improper operation Drainage o f water bodies Barrier to migration o f local species o f fauna
r u s e o f water channels as wastewater drains ~ ~~ ~
Incidence o f diseases such as Dengue, Malaria, etc. Income and amenity changes Safetv o f children
1 Emergence o f Pests I Weeds Increased Animal diseases Land acquired through (i) donation,, (ii) purchase, (iii) govt. Presence o f landmines or unexploded ordinance
Assessment (Put only one 1 Scheme
requires
measures
71
Part B: (School, market sheds, etc.)
Sub-projects related to community infrastructure construction
Potential Impacts
Removal o f vegetation Damage to cultural / archaeological sites/properties Dust generation during construction activities Increased Noise due to construction activities Potential for spread o f water-borne diseases due to improper sitinn o f ancillarv facilities Land acquired through (i) donation, (ii) purchase, (iii) govt. Presence o f landmines or unexploded ordinance
Assessment {Put only one 1 t ick (4 in
NO Impact or
Impact NOT
significant
Scheme
Impact requires
miti ation if any
measures I
PART C: small bridges, etc.)
Sub-projects related to transport infrastructure (roads, culverts,
Potential Impacts
Land acquired through (i) donation, (ii) purchase, (iii) govt.
Assessment {Put only one
Impact Impact requires
Severance o f properties or land Damage to cultural / archaeological sitedproperties Increased landslides during and after construction Pollution during construction activities Risk o f accidents involving hot material, pollution o f water courses and agricultural lands Pollution f rom ancillary activities l ike preparation o f asphalt, crushing o f aggregate, concrete mixing, etc. Increased erosion downstream o f channels being crossed Disruption o f aquatic ecosystem during construction due to excessive sediment, discharge o f waste concrete or accidental spillage o f o i l & grease Noise due to increased traffic Increased risk o f accidents due to increased and faster traffic Severance o f wildlife habitat which may have established during years o f neglect Presence o f landmines or unexploded ordinance
Scheme specific
observations, if any
72
PART D: piped supply or gravity schemes, etc.)
Sub-projects related to water supply (community ponds, open wells,
Potential Impacts
Land acquired through (i) donation, (ii) purchase, (iii) govt. Submergence o f new areas
1 Assessment (Put only one 1 t ick (4 in
NO Impact or
Impact NOT
significant
I Damage to cultural / archaeological sites/properties Safety hazards during construction Visual blight and dirt due to imDroDer disDosal o f material Increased breeding o f mosquito in case o f inadequate drainage near water abstraction point / locations Pollution o f water f rom leaves, dust and other nuisance due to open surface Unnoticed contamination by wastes in case o f faulty layout Presence o f landmines or unexploded ordinance
Scheme
requires miti ation if any
measures
PART F: only one Part A, B, C, or D )
Summary of Environmental impacts of the proposed activity (from
KEY IMPACTS IDENTIFIED 1. 2. 3. 4.
MITIGATION MEASURES TO BE IMPLEMENTED (REFER TO MATRIX 2 & ATTACHMENTS 1,3 & 4) 1. 2. 3 . 4.
AGENCY RESPONSIBLE FOR IMPLEMENTATION / SUPERVISION (REFER TO MATRIX 2) 1. 2. 3 . 4.
TIMING OF IMPLEMENTATION WITH REFERENCE TO STAGE OF CIVIL WORKS CYCLE (DESIGN, CONSTRUCTION OR OPERATION) 1.
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2. 3. 4.
Stamp(s) and Signature(s) o f the Authorized Official(s) o f Head o f theCDC)
Stamp(s) and Signature(s) o f the Authorized Official(s) o f Head o f the CDC
Date: 1 Date: Place: 1 Place:
Stamp(s) and Signature(s) o f the Authorized Official(s) o f Head o f the CDC
Date: Place:
Stamp and Signature o f Authorized Officer o f the Facilitating Partner retained by MRRD
Date: Place:
74
Matr ix 2
M e n u of mitigation measures for Afphanistan National Solidaritv Proiect
Part A: structures (Rehabilitation / construction o f water retaining structures, rehabilitation / construction of new drains, erosion protection, etc.)
Sub-projects related to Irrigation and Watershed Management
Sub-part (i) Construction Phase
Potential Impacts
Downstream water availability
Waterlogging
Increased Salinity
Local erosion, dust
Stream morphology and regime change
Disposal o f sediment accumulated in channelsh tructures
Drainage o f water bodies
Incidence o f diseases such as Dengue, Malaria, etc.
-Mitigation lIeasure(s) Identified
Maintain flow required for downstream uses (drinking, other domestic, industry, hvdrooower. etc .I Construct improved lining of canals
Meticulous provision o f drainage as per design or directions o f MRRD/Oversight Consultant Ensure sufficient channel section i s available for flow during construction
Spray water on exposed surfaces (material piles, freshly cut slopes, etc.)
Cover the material during transportation
Careful construction with a view to limit change to stream morphology and regime change to the minimum No disposal o f spoils on fertile lands
Secure written permission o f the owner before disposal can begin
Use o f some material from dredging for liming o f nearby acidic soils Alternatively, consider use o f sediment as part o f rehabilitated embankment Minimise drainage o f water bodies acting as habitat Proper drainage o f the area
Implementation Arrangements
Execution contractor4
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Supervision MRRD/Oversight Consultant
MRRD/Oversight Consultant MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant MRRDIOversight Consultant
This can be individual, group o f individuals or firm preferably local but not necessarily
75
Sub part (ii) Operation Stage
Potential Impacts
Downstream water availability Flood regime
Waterlogging
Less dilution o f discharges from settlements Pesticide I Toxic compounds
Excess nutrient concentration I Eutrophication Increased Salinity
Changes in Structure o f soil
Saline drainage
Stream morphology and regime change Drainage o f water bodies
Use o f water canals as wastewater drains Incidence o f diseases such as Dengue, Malaria, etc.
Resettlement
Mitigation Measure(s) Identified
Appropriate operation o f dams
Appropriate operation o f dams
Increase efficiency o f operation o f the system
Match supply with requirement o f water users Maintain minimum flow as required
Encourage alternative cropping techniques to avoid monocultures which are more dependent o n pesticides for high yields Disseminate good practices for efficient utilization o f fertilizers
Management techniques that can be employed include: leaching, altering irrigation methods and schedules, installing sub-surface drainage (?), changing tillage techniques, adjusting cropping patterns, and adding soil ameliorates. EXTREMELY COSTLY Liming or spread o f Gypsum for reversing the sodic conditions Avo id salt concentration increase by providing 10-20% extra water, if available Systematic operation o f sediment exclusion structures, if any. Protect water bodies acting as habitat
A l l o w partial use, if risks are not very h igh ~ ~~
Maintain proper drainage o f the area
Periodic flushing o f the canals
Liaison with health authorities o n early warning sign communication
Compensate as per the Entitlement framework for the project
Implementai Execution WUA5 or Mi rab WUA or Mi rab WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mi rab
WUA, Mrab
WUA, Mi rab
C D C
Facilitating Partner, Local ly elected council
n Arrangements Supervision Locally elected council (CDC) Locally elected council (CDC) Locally elected council (CDC)
Locally elected council (CDC) Locally elected council (CDC) Locally elected council (CDC)
Locally elected council (CDC)
Local ly elected council (CDC)
Local ly elected council (CDC) Local ly elected council (CDC) Local ly elected council (CDC) Local ly elected council (CDC) Local ly elected council (CDC) Local ly elected council
Local ly elected council
MRRD/Oversight Consultant MRRD/Oversight Consultant
W U A = Water Users’ Association (to be confirmecUstrengthened/established)
76
Potential Impacts
Safety (especially o f children and vulnerable groups)
Pests I Weeds
Mitigation Measure(s) Identified
Maintain provided signages and bamers such as fencing
Use integrated pest management techniques to prevent harm by pestdweeds
Implementat Execution Facilitating Partner, Contractor, Local ly elected council Facilitating Partner, Local ly elected council
n Arrangements Supervision MRRDIOversight Consultant
MRRD/Oversight Consultant
77
Part B: Sub-projects related to community infrastructure construction (School, community hall, market sheds, etc.)
Sub-part (i) Construction stage
Potential Impacts
Land andor property acquisition
Removal o f vegetation
Damage to cultural / archaeological sitedproperties Dust generation during construction activities
Increased Noise due to construction activities
Mitigation Measures
Voluntary donation, willing buyer-willing seller, or government land without encumbrances only o r procedure to be fol lowed as per Attachment 1 to Environmental and Social Management Framework (ESMF) 0 Planting saplings as compensation @ 2
saplings for each tree felled. This must be done after the construction activities have been completed on site.
Altematively, planting must be done we l l in advance o f beginning o f construction so that the trees have grown strong enough to resist accidental hits during movement o f construction equipment Avo id sites where such properties are located. If by chance, any such location i s found, adopt procedure as per Attachment 3 to the ESMF 0
0 0
0
Provide temporary enclosures to the site
Provide cover o n trucks carrying
Provide protective masks for workers Sprinkle water within site, especially o n
using GI sheets and poles
construction material.
windy days Avo id noise generating activities during
particular periods - times o f prayers, school hours, etc.
if concreting requires work to continue during the night.
Provide ear plugs to construction workers manning noisy equipment.
Consider provision o f noise barriers by landscaping, tree plantation or even double- glazing.
0 Discontinue a l l operations during night except
0
0
Implementatic Execution
Locally Elected Council
Local ly Elected Council
Contractor
Contractor
Contractor
Arrangements Supervision
MRFWOversight Consultant
MRRD/Oversight Consultant
Local ly Elected Council
Local ly Elected Counci l
Local ly Elected Counci l
78
PART C: Sub-projects related to transport infrastructure (roads, culverts, small bridges, etc.)
Sub-part ( i ) Construction Phase
Land acquisition
Severance o f properties or land
Damage to cultural I archaeological sitedproperties Increased landslides during and after
and asphalt during construction activities
Risk o f accidents involving hot material, pollution o f water courses and agricultural lands
Pollution from ancillary activities like preparation o f asphalt, crushing o f aggregate, concrete mixing, etc.
~
Mitigation Measures
Voluntary donation , willing buyer-willing seller, or government land without encumbrances only or procedure to be followed as per Attachment 1 to Environmental and Social Management Framework (ESMF) Voluntary donation, willing buyer-willing seller, or government land without encumbrances only or procedure to be followed as per Attachment 1 to Environmental and Social Management Framework (ESMF) Avoid sites where such properties are located. If by chance, any such location i s found, adopt procedure as per Attachment 3 to the ESMF Provide vegetative protection as far as possible on the uphill sides. Use ‘hard’ engineering structural solutions as last resort 0 Provide temporary enclosures to the site
0 Provide cover on trucks carrying
0 Provide protective masks for workers 0
0
0 0
0
0
0
0
0
0
using GI sheets and poles
construction material.
Sprinkle water within site, especially on
Provide adequate signages and fencing around
Train workers to follow safety instructions. Prepare contingency plans for spillages, and
Provide adequate notice o f sitelroad closures
Provide adequate detours around construction
Locate the hotmix plant at least 500m away
Locate crushers and concrete batching plants
Provide and operate emission control devices
Provide dust control devices on crushers and
windy days
the site.
carry out mock drills.
to locals.
areas.
from habitation
at least lOOm from habitation
l ike ESP or wet venturi scrubber
concrete batching plants
Imnlementatic Execution
Locally Elected Council (CDC)
Locally Elected Council (CDC)
Contractorl Community
Contractorl Community
Contractorl Community
Contractorl Community
Contractorl Community
Arrangements Supervision
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
MRRD/Oversight Consultant
79
Potential Impacts Mitigation Measures
0
0
Prevent direct discharge from site with a fa l l o f more than 0.6m.
Avo id spilling construction material and waste into the channel. This will prevent reduction in section o f the channel and hence erosion.
for the site.
affected sections o f stream. 0
Prepare and implement spi l l prevention plan
Train staff to handle spillage o f material and
Increased erosion downstream o f channels being crossed
Implementatic Execution
Contractor/ Community
Contractor/ Community
Disruption o f aquatic ecosystem during construction due to excessive sediment, discharge o f waste concrete o r accidental spillage o f o i l & mease
Sub-part (ii) Operation Stage
Potential Impacts
Noise due to increased traffic
Increased risk o f accidents due to increased and faster traffic
Mitigation Measures
Provide for silence zones near sensitive receptors - clinics, schools, mosques
0
0 0
Provide adequate signages and speed control
Provide adequate ROW from planning stage itself. Protect this ROW using appropriate devices -
notification, planting in area currently not used for
within settlements
established during
I Arrangements Supervision
MRRD/Oversight Consultant
MRRD/Oversight Consultant
Implementatior Execution
NGO, Local ly Elected Counci l
NGO, Local ly Elected Counci l
NGO, Local ly Elected Counci l
Arrangements Supervision
MRFW Oversight Consultant MRRD/ Oversight Consultant
MRRD/ Oversight Consultant
80
PART D: Sub-projects related to water supply (community ponds, open wells, dug wells with hand pumps, piped supply or gravity schemes, etc.)
Land and property acquisition
Submergence o f new areas
Damage to cultural I archaeological siteslproperties Safety hazards during construction
Visual blight and dirt due to improper disposal o f material
Sub-part (i) Construction Phase
Voluntary donation, willing buyer-willing seller, or government land without encumbrances only as per procedure to be followed as described in Attachment 1 to Environmental and Social Management Framework (ESMF) Identify areas which are currently not in productive use. Procedure to be followed as described in Attachment 1 to Environmental and Social Management Framework (ESMF) Avoid sites where such properties are located. If by chance, any such location i s found, adopt procedure as per Attachment 3 to the ESMF 0 Provide where feasible personal protective
equipment such as masks, hard hats and ear plugs to all workers.
Prepare and implement a safety plan for the entire operation
Dispose o f the dirt and other excavated at designated locations only.
Explore the possibility o f disposing o f tank bottom s i l t on farms as i t can work as soil conditioner
0
0
0
Potential Impacts I
Potential Impacts
Increased breeding o f mosquito in case o f inadequate drainage near
Mitigation Measures
Mitigation Measures
0 Design for proper drainage and raise awareness among users and CDC.
Sub-part (ii) Operation Stage
water abstraction point I locations Pollution o f water from leaves, dust and other nuisance due to open surface
Unnoticed contamination by wastes in case o f faulty layout
Preferably use hand pumps on dug wells
1 0 U s e alum or other appropriate I coagulant before supplying water. 1 Periodically inspecthest the quality o f . .
water supply and wastewater collection networks.
Implementation Execution
Locally Elected Council
Locally Elected Council
Contractor
Contractor
Contractor
xrangements Supervision MRRD
MRRD
Oversight Consultant
Oversight Consultant
Oversight Consultant
Implementatioi Execution
NGO, Locally Elected Council
NGO, Locally Elected Council
(CDC)
(CDC)
NGO, Locally Elected Council (CDC)
4rrangements Supervision
MRFW Oversight Consultant MRRD/ Oversight Consultant
MRRDI Oversight Consultant
81
APPENDIX 9
PROCEDURES FOR MINE RISK MANAGEMENT IN WORLD BANK FUNDED PROJECTS IN AFGHANISTAN
Background:
1. mines in Afghanistan, in the context of:
The fol lowing procedures are designed to respond to the r isks caused by the presence o f
Community rehabilitation /construction works to be identified and implemented by the communities themselves (for small projects o f up to $100,000 each); Small and medium-size works to be identified by local authorities (or Community Development Councils) and implemented by local contractors (for projects up to $5m each)(projects implemented by contractors for Community Development Councils would generally be below $60,000, but could conceivably be o f higher value, if communities choose to implement jo in t projects funded through the b lock grant allocations under NSP); Works to be implemented directly by Government departments/agencies, without use o f contractors [not applicable]; Large works to be implemented by contractors (for projects above $5m) [not applicable];
2. tasks shall be implemented in coordination with the M ine Act ion Center for Afghanistan (MACA). These procedures may need to be amended in the future depending o n evolving circumstances.
General comment applying to a l l following procedures: All r i sk assessment and clearance
Procedure for Communitv-Managed Works
3. be identified and implemented by the communities themselves (for small projects o f up to $100,000 each).
Applicability: This procedure applies to community rehabilitation / construction works to
4. projects they propose are not in mine-contaminated areas, or have been cleared by MACA (or a mine action organization accredited by MACA).
Overall approach: The communities should be responsible for malung sure that the
5. have a strong incentive to report them accurately as they wil l carry out the works themselves.
Rationale: Communities are best placed to know about mined areas in their vicinity, and
Procedure:
6. presence o f mines in the area where Bank-funded community-managed projects will be implemented. This questionnaire should be formally endorsed by the M i n e Act ion Program for Afghanistan(MAF'A). I t will be a mandatory attachment to the project submission by the communities and should be signed by community representatives and the external project facilitator. Extemal project facilitators will receive training f rom MAPA. Financing agreements with the communities should make clear that communities are solely liable in case o f a mine- related accident.
Communities are required to submit a reply to a questionnaire regarding the suspected
82
7. ministry responsible for the selection o f projects should check with M A C A whether any different observation i s reported on M A C A ’ s data base.
If the community certifies that there i s no known mine contamination in the area, the
o If M A C A ’ s information i s the same, the project can go ahead for selection. The community takes the full responsibility for the assessment, and external organizations cannot be made liable in case o f an accident.
o If M A C A ’ s information i s different, the project should not go ahead for selection as long as M A C A ’ s and community’s statements have not been reconciled.
8. If the community suspects mine contamination in the area,
o If the community has included an assessment / clearance task in the project agreed to be implemented by M A C A (or by a mine action organization accredited by MACA), the project can go ahead for selection.
o If the community has not included an assessment / clearance task in the project, the project should not go ahead for selection as long as this has not been corrected.
o M i n e clearance tasks must be implemented by M A C A or by a mine action organization accredited by MACA. Communities will be penalized (subsequent funding by World-Bank funded projects shall be reduced or cancelled) if they elect to clear mines on their own.
Procedure for Small and Medium-size Works Contracted Out
9. by local authorities and implemented by local contractors (for projects up to $5m each).
Applicability: This procedure applies to small- and medium-size works to be identified
10. Overall approach: M A C A (or a mine action organization accredited by MACA) should provide detailed information o n the mine-related r isks (either based on previously done and updated general survey or on a new general survey) before projects are considered for selection. Only project sites assessed to have a nil-to-low risk would be eligible for selection, unless they have been demined by MACA or by a mine action organization accredited by M A C A .
1 1. mine-related r isks in a systematic way, whi le they may have incentives to underestimate them.
Rationale: Neither local authorities nor local contractors have the capacity to assess the
Procedure:
1. Prior to putting up a project for selection, a general survey should be carried out by MACA (or a mine action organization accredited by M A C A ) to assess mine-related r isks in the area o f the project (this should include checkmg information available in the MACA data base).
2. If M A C A provides information suggesting a nil-to-low risk in the project area, the project can go ahead for selection.
83
3. The contract between the responsible ministry and the contractor will include a clause stating that in case o f an accident, legal l iabil i ty would be fully and solely borne by the contractor.
4. If MACA assesses a potentially high risk in the area (whether due to the presence o f mines or uncertainty),
o If the project includes an assessment / clearance task agreed to be implemented by MACA (or by a mine action organization accredited by MACA), i t can go ahead for selection based on agreed funding modalities (clearance may be funded either under a contract with a Bank-funded project or under existing donor agreements with the mine action organization);
o If the project does not included an assessment I clearance task, i t should not go ahead for selection as long as this has not been corrected.
84
MAP SECTION
Map IBRD No. 32863
85
