The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) REPORT NO.: RES35932 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF CITIZEN INVOLVEMENT IN MUNICIPAL SERVICE IMPROVEMENT (CIMSI) APPROVED ON MARCH 23, 2017 TO SAHA SOCIAL, URBAN, RURAL AND RESILIENCE GLOBAL PRACTICE AFRICA Regional Vice President: Hafez M. H. Ghanem Country Director: Mark R. Lundell Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Senait Nigiru Assefa Task Team Leader: Andrianjaka Rado Razafimandimby, Tiago Carneiro Peixoto The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) ABBREVIATIONS AND ACRONYMS CD Country Director CIMSI Citizen Involvement in Municipal Services Improvement Project CSO Civil Society Organization FM Financial Management GPSA Global Partnership for Social Accountability GoM Government of Madagascar IBRD International Bank for Reconstruction and Development IDA International Development Association MFB Ministry of Finance and Budget M&E Monitoring and Evaluation NGO Non-Government Organization PDO Project Development Objective PIU Project Implementation Unit RETF Recipient Executed Trust Fund SAHA Soa Afafy Hampahomby ny ho Avy SLC Structure Locale de Concertation (Local Coordination Structure) STEP Systematic Tracking of Exchange in Procurement TA Technical Assistance ToR Terms of Reference The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P162170 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 23-Mar-2017 31-Jan-2020 Organizations Borrower Responsible Agency SAHA SAHA Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) Project Development Objective (PDO) Original PDO The Project's objective is to improve transparency and accountability mechanisms between local governments and citizens through participative planning and budgeting in targeted municipalities. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A4471 23-Mar-2017 20-Apr-2017 20-Apr-2017 31-Jan-2020 .70 .34 .36 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The project, benefiting from a USD 700,000 grant from the Global Partnership for Social Accountability (GPSA), was approved on March 23, 2017. 2. The last Implementation Status and Results Report (ISR) in January 2018 rated the Project as Moderately Satisfactory on progress towards achievement of the Project Development Objective (PDO) and moderately satisfactory on implementation progress. 3. There are no outstanding audit reports under the Grant by the FMS for this project. 4. Project activities on the components 1 and 3 are progressing as expected and are fully aligned with the PDO. Main ongoing activities include: a. The completion of partnership agreement with all targeted communes; b. The scaling up of the pilot activities from 10 to 36 communes; c. The standardization of the Local Coordination Structures’ supporting tools; d. The implementation of the Grievance Redress Mechanism. 5. The activities under component 2 have not achieved their objectives. The activities were originally conceived with the expectation that decentralized services namely in health, education and land sectors, will work closely with The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) municipalities on their budget planning and execution. However, given the delays in the decentralization process, as a result, officials of decentralized services could not formally engage with municipalities on resource allocation. This is related to the limitations of the central ministries to allocate budget for regional services across the country according to national priorities. As a result, the project encounters limitations under component 2 since the targeted municipalities failed to formalize any agreements with the respective decentralized services. This situation has been repeatedly pointed out during supervision missions and was reflected in the ISRs. Therefore, the two intermediate indicators (2.1 and 2.2) of the component 2 as currently designed would be unachievable and need to be rectified. 6. It was also discussed during supervision missions the need to extend the project life to 4 years (instead of 3) to ensure the achievement of the objectives. Indeed, the initial completion date of the project was initially scheduled for 31 March 2021, (cf. PAD and the project disbursement letter), instead of January 31, 2020 as listed in the Agreement Letter. It should be noted that this revision has already been raised during the first supervision mission of the project but according to the agreement between the parties it was considered preferable to rectify it based on the evolution of the mid-term project. 7. A request for restructuring reflecting the changes listed above was sent to the World Bank dated January 15, 2019. 8. A detailed workplan with the proposed changes below has been developed and approved for the remaining implementation period. II. DESCRIPTION OF PROPOSED CHANGES 9. Taking into account recommendations from the project’s supervision reports, the proposed changes are twofold: i. Revision of Component 2’s indicators; and ii. One-year extension of closing date. 10. During the MTR, it was highlighted that activities of components 2 will need to be adjusted, and the changes will require new indicators to replace the original 2.1 and 2.2 indicators. The technical discussion agreed on the design of two news indicators that could support the achievement of the PDO and can be completed during the project cycle. 11. Therefore, this restructuring paper recommends new Component 2’s indicators that are directly aligned with the PDO #1: Percentage of target municipalities with institutionalized participatory planning and budgeting processes. Therefore:  Current indicators (2.1.) Number of formalized agreements between Groups of Municipalities (or PICOs) with decentralized services on transparency of sector master plan and resource allocation (in sectors health, education, land) to concerned collectivity and (2.2.) Number of municipalities where budget allocation information for decentralized services (health, education, land) from central government is published or publicly available, will be dropped and replaced by  (New 2.1.) Percentage of communes where the local authorities (Municipal council/ local government) consider proposals from the Structure Local de concertation (SLCs) in their budget and/or plans and (New 2.2) Percentage The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) of communes where the technical service of the State contribute effectively to the implementation of the proposals from the SLC and the communal plan. 12. New activities captured by these revised indicators include the accompaniment of local authorities (Municipal council/ local governments) and technical services of the state to consider in their budget and/or action plans inputs from the SLCs, through tailored tools and mechanisms. Approaches developed and tested from this project will inform the GoM toward potential scaling-up. Thus the component 2 is adjusted as follows: Component 2: Improving transparency and accountability of decentralized services in targeted municipalities. Improving local governance by strengthening transparency in budget preparation at different levels, as well as enhancing municipal planning and investment in health, education and land. Activities under this component include: a) Train local authorities including municipal councils and local governments, as well as decentralized technical services of the state in (i) transparency; (ii) participatory budgeting, planning and (iii) development of services improvement plans with consideration of the recommendations of the SLC ; b) Assist municipalities, decentralized technical services, and local CSOs in the implementation of existing/new tools in participatory planning and budgeting, and budget transparency; c) Support local, national and regional CSO activities on municipal and regional data disclosure; d) Contribute to local, national effort to promote SLC activities. 13. The table below reflects the proposed changes to the indicators under component 2, while all other indicators remain unchanged: Intermediate Result, Component 2: Improving transparency and accountability of decentralized services in targeted municipalities ORIGINAL REVISED Indicators Unit Cumulative Indicators Unit Cumulative target target value value Y1 Y2 Y3 Y4 Y1 Y2 Y3 Y4 (2.1.) Number of formalized # 1 2 3 3 (New 2.1.) Percentage of % 0 0 50 75 agreements between communes where the local Groups of Municipalities (or authorities (Municipal PICOs) with decentralized council/ local government) services on transparency of who consider proposals sector master plan and from the SLCs in their resource allocation (in budget and/or plans sectors health, education, land) to concerned collectivity The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) (2.2.) Number of # 1 2 3 3 (New 2.2) Percentage of % 0 0 50 75 municipalities where communes where the budget allocation technical service of the information for State contributes decentralized services effectively to the (health, education, land) implementation of the from central government is proposals from the SLC and published or publicly the communal plan available 14. This Restructuring Paper recommends a 14 months extension of the project closing date until March 31, 2021 to rectify the discrepancy between the closing date of the PAD and the Agreement letter and to ensure that all the activities of the project are successfully completed. Full disbursement is expected prior to the proposed new project closing date. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Implementing Agency ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Municipalities that have introduced and institutionalized participative planning and budgeting processes Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 75.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 Targeted municipalities with operational Local Coordination Structures (SLCs) that meet periodically Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 22.00 75.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 Intermediate Indicators IO_IND_TABLE 1.1. Percentage of SLCs, in the targeted municipalities, trained and which monitor periodically public services' delivery at least in one of the key sectors (health, education or land registration). Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) Value 0.00 22.00 75.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 1.2. Percentage of target municipalities with publicly available annual municipal budget and budget execution reports (including expenditure and procurement procedure application) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 22.00 37.00 75.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 1.3. Percentage of targeted municipalities with institutionalized annual meetings with SLCs and CSOs to discuss financial report of the municipality. Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 22.00 75.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 2.1 (New) Percentage of communes where the local authorities (Municipal council/ local government) who consider proposals from the SLCs in their budget and plans Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 75.00 New Date 31-Dec-2018 31-Dec-2018 31-Mar-2021 2.2. (New) Percentage of communes where the technical service of the State contributes effectively to the implementation of the proposals from the SLC and the communal plan Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 75.00 New Date 31-Dec-2018 31-Dec-2018 31-Mar-2021 2.1. Number of formalized agreements between Groups of Municipalities (or PICOs) with decentralized services on transparency of sector master plan and resource allocation (in sectors health, education Unit of Measure: Number The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 3.00 Marked for Deletion Date 31-Mar-2017 31-Dec-2018 31-Mar-2020 2.2. Number of municipalities where budget allocation information for decentralized services (health, education, land) from central government is published or publicly available Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 3.00 Marked for Deletion Date 31-Mar-2017 31-Dec-2018 31-Mar-2020 3.1. Intermediate Result indicator One: Learning for improved results Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 2.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 3.2. Increased Knowledge about politically informed social accountability strategies. Knowledge products about political economy factors and dynamics affecting social accountability processes produced Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 2.00 Revised Date 31-Mar-2017 31-Dec-2018 31-Mar-2021 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A4471 Effective 31-Jan-2020 31-Mar-2021 31-Jul-2021 The World Bank Citizen Involvement in Municipal Service Improvement (CIMSI) (P162170) Note to Task Teams: End of system generated content, document is editable from here.