The World Bank Report No: ISR14686 Implementation Status & Results Honduras Social Protection (P115592) Public Disclosure Copy Operation Name: Social Protection (P115592) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 15-Jun-2014 Country: Honduras Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 29-Jun-2010 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 08-Oct-2012 Last Archived ISR Date 13-Nov-2013 Effectiveness Date 29-Oct-2010 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 08-Oct-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to: (a) improve the institutional capacity of Recipient’s institutions to manage the ConditionalCash Transfer (CCT) Program, by strengthening transparent mechanisms and instruments for targeting Program beneficiaries, monitoring compliance with Program co-responsibilities, and making payments to Program beneficiaries; (b) provide income support to Eligible Beneficiaries; (c) increase the use of preventive health services and school attendance in grades 1 to 6 among Program beneficiariesin rural areas; and (d) improve the Recipient’s capacity to respond promptly and effectively to an Eligible Emergency. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Institutional strengthening of the Bono 10,000 Program 8.70 Co-financing Conditional Cash Transfers (grants) 31.30 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Honduras Social Protection Project ($40 million) has already disbursed 88% of funds. An Additional Financing (AF) to the Project in the amount of US$12.3 million was approved by the Board in July 2013, and became effective in November 2013; however, it has not disbursed funds yet. The Project supports the implementation of the Conditional Cash Transfer (CCT) program “Bono 10,000" (soon to be renamed by the new administration), the first nation-wide CCT in Honduras, through co-financing transfers (in the amount of $32 million, which represents 80% of the Project funds). It also includes technical assistance (TA) to strengthen institutions in charge of implementing Bono 10,000 as well as the Page 1 of 6 The World Bank Report No: ISR14686 instrument to target social interventions (the Unique Registry of Beneficiaries, RUB). Since 2010, the Program has reached 350,000 families, with 282,000 currently receiving payments on a regular basis (223,000 in rural areas, and 59,000 in urban areas), and of which approximately 32,000 rural families are financed through the World Bank Social Protection Project. Public Disclosure Copy Since the last reporting period, the team has worked closely with the Government in strengthening results, and identifying and overcoming challenges in implementation (payments, information system, verification of corresponsibilities), in a context of political transition (elections took place in November 2013, and a new administration took charge in January 2014). The new Government has taken several reforms at the institutional level, including the creation of a new Ministry of Social Inclusion and Development (SIDES) that is in charge of implementing the new Estrategia Vida Mejor ("Better Lives Strategy") under which Bono 10,000 CCT will feature as a core intervention. The up-to-now autonomous Family Allowance Program (PRAF) agency, in charge of implementing Bono 10,000 CCT as well as other social programs, has been absorbed into the new Ministry and will now be a Department within it. The former Secretariat of Social Development, in charge of formulating the Social Protection Strategy, evaluating programs, and developing core instruments like RUB, has also been absorbed into the new Ministry, though key instruments such as RUB will move to a new agency called CENISS (National Information Center for Social Sectors). The RUB has a coverage of 1.36 million families and has information of 29 databases corresponding to 18 public institutions and 17 programs and projects. The Secretaries of Education and Health will also be under the new SIDES, which can improve coordination with the sector ministries given their critical role in the program. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage of households in the Program Percentage Value 0.00 73.00 80.00 receiving CCTs in rural areas that are extreme Date 19-May-2010 31-Dec-2012 31-Dec-2015 poor Comments Latest data (to be updated with new survey) Percentage of students in grades 1 to 6 Percentage Value 0.00 83.00 85.00 participating in the Program who comply with Date 19-May-2010 31-Dec-2012 31-Dec-2015 the co-responsibility of 80% school attendance Comments To be updated with new MIS Percentage of Program beneficiary children Percentage Value 0.00 68.00 78.00 aged 13-15 years that completed primary Public Disclosure Copy Date 19-May-2010 31-Dec-2012 31-Dec-2015 education (sixth grade) Comments To be updated with new MIS Percent of Program beneficiary children aged Percentage Value 0.00 76.00 80.00 12-23 months with complete vaccination Date 19-May-2010 31-Dec-2012 31-Dec-2015 scheme Comments To be updated with new MIS Percentage of Program beneficiary pregnant Percentage Value 0.00 66.00 76.00 women who receive prenatal controls in the Date 19-May-2010 31-Dec-2012 31-Dec-2015 first trimester of pregnancy Comments To be updated with new MIS Page 2 of 6 The World Bank Report No: ISR14686 Time taken to disburse funds requested by Weeks Value 0.00 0.00 4.00 Government for an eligible emergency Date 19-May-2010 31-Dec-2012 31-Dec-2015 Comments Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Communication Strategy Implemented; Text Value None Implemented Implemented Information on Program disseminated through Date 19-May-2010 30-Apr-2014 31-Dec-2015 local media & adapted to the target population Comments Monitoring and evaluation system developed Text Value None In process Implemented and information about the Program is publically Date 19-May-2010 30-Apr-2014 31-Dec-2015 available and are used for evidence based Comments MIS design finalized. decision making Implementation expected for July 2014 Percentage of households registered in the Percentage Value 3.00 3.00 50.00 Program with eligibility updated information Date 19-May-2010 30-Apr-2014 31-Dec-2015 Comments Percentage of complaints and appeals Percentage Value 0.00 35.00 80.00 attended to and resolved, as defined under the Date 19-May-2010 31-Dec-2012 31-Dec-2015 pre-defined standards Comments To be updated with new MIS Strategy for streamlining social assistance Text Value None Strategy Strategy programs and subsidies approved and Approved Approved implemented Date 19-May-2010 30-Apr-2014 31-Dec-2015 Comments Number of programs using the Unique Registry Number Value 0.00 5.00 9.00 of Beneficiaries at the local level Date 19-May-2010 30-Apr-2014 31-Dec-2015 Comments Public Disclosure Copy Number of households receiving all payments Number Value 0.00 282000.00 350000.00 in the year in the Program Date 19-May-2010 30-Apr-2014 31-Dec-2015 Comments Number of households receiving all payments Number Value 0.00 32353.00 22000.00 in the year in the Project Date 19-May-2010 30-Apr-2014 31-Dec-2015 Comments Page 3 of 6 The World Bank Report No: ISR14686 Percentage of registered households of the Percentage Value 0.00 74.00 80.00 Program whose co-responsibilities are verified Date 19-May-2010 31-Dec-2012 31-Dec-2015 and reported Comments To be updated with new MIS Public Disclosure Copy Percentage of schools reporting compliance in Percentage Value 0.00 99.00 99.00 accordance to the verification of Date 19-May-2010 31-Dec-2012 31-Dec-2015 corresponsibilities cycle Comments To be updated with new MIS Percentage of health centers reporting Percentage Value 0.00 85.00 85.00 compliance in accordance to the verification of Date 19-May-2010 31-Dec-2012 31-Dec-2015 corresponsibilities cycle Comments To be updated with new MIS Percentage of beneficiary households in rural Number Value 0.00 30.00 20.00 areas that are paid through alternative payment Date 19-May-2010 30-Apr-2014 31-Dec-2015 mechanisms Comments Data on Financial Performance (as of 03-Mar-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P115592 IDA-47740 Effective 29-Jun-2010 02-Aug-2010 29-Oct-2010 31-Dec-2014 31-Dec-2015 P115592 IDA-52940 Effective 08-Aug-2013 26-Aug-2013 22-Nov-2013 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115592 IDA-47740 Effective XDR 26.50 26.50 0.00 23.54 2.96 89.00 P115592 IDA-52940 Effective XDR 8.20 8.20 0.00 0.00 8.20 0.00 Disbursement Graph Public Disclosure Copy Page 4 of 6 The World Bank Report No: ISR14686 Public Disclosure Copy Key Decisions Regarding Implementation These institutional changes described previously will entail a restructuring of the Project due to changes in the implementing agencies of the project. The Bank’s legal team has confirmed that the project can continue disbursing against cash transfers and institutional strengthening activities (Subcomponent 1.2) of PRAF given that a Ministerial clarification was officially sent to the Bank indicating that the institutional and fiduciary functions in PRAF are now legally part of SIDES and will remain intact. Since the PDO will not change, the restructuring will be Level II. The Government has also announced to the World Bank Group (WBG) its intention to make changes to the Bono 10,000 program. In terms of targeting and coverage, the program will aim to include only extreme poor families, and for that a gradual process of incorporation of new families will take place in the coming months in the areas identified as poor by the latest vulnerability maps, and starting in those that have the most outdated information on beneficiaries. The project will finance part of this new identification campaign, that will be coordinated with the National Statistical Institute (INE). The proxy means test (PMT) used by RUB is also being revised with technical assistance from IADB and WBG to ensure better identification of poor families. To that end, starting with the next payment cycle, all beneficiaries identified by RUB as non-poor will be suspended from the program. For the case of the moderate poor, the process of suspension will be Public Disclosure Copy gradual and will take place after the incorporation of new extreme poor families is finished. A preliminary target set by the government is to reach 400,000 extreme poor families with the new Bono 10,000. Other changes to the program will be the revision of benefits, which will now be paid according with the number of children each family has instead of a single benefit per family irrespective of size. The maximum amount a family will receive in a given year will still be Lps 10,000. Also, the program will now include children in lower secondary education (grades 7-9) instead of just primary school children, given that drastic school dropouts take place in the transition from grade 6 to 7. These changes are expected to take place in 2015, and will guarantee more financial sustainability to the program (taking into account that the program will increasingly be financed by government funds as well, as part of a fiscal reform intended to generate additional revenues). All these changes will entail a revision of program rules, and the updating of the credit Operational Manual, and those will take place in the course of the year before implementation. A recent social audit has confirmed that unpredictability in payment receipts and long delays at payment centers are among the major sources of dissatisfaction among beneficiaries. Page 5 of 6 The World Bank Report No: ISR14686 The program therefore has continued paying with a more diversified menu of options, with pilots using cooperatives and cell phone payments, which now account for 30 percent of total payments (the rest continue to be done though cash payments). The government is evaluating these experiencies and make decisions in terms of which ones should be expanded or discontinued. In urban areas, the program has also stared to pay with bank cards, and the Bank is exploring the possibility of a pilot with cards in rural areas. Public Disclosure Copy The Project is also supporting the strengthening of the Program's MIS to handle a large number of beneficiaries The finalization of the updated MIS has been delayed, but the new Government has agreed to accelerate its implementation, including the set up of an updated grievance and complaint mechanism. In the meantime, the external audits serve an important role for oversight and controls, reviewing eligibility, payments and corresponsibilities for the beneficiary households. So far, audit findings have shown less than 4% of questionable cases (for which the Government has investigated and provided supplementary information as justi fication for eligibility). Verification of corresponsibilties continue to be improved by investing in strengthening of Secretaries of Education and Health systems (SACE and RENPI, respectively). In the case of SACE, the system has been strengthened to monitor compliance with attendance rates, now moving to online reporting. Restructuring History Level 2 CD Decision on 22-Apr-2013 Related Projects P144928-Honduras Additional Financing Social Protection Public Disclosure Copy Page 6 of 6