Document of The World Bank FOR OFFICIAL USE ONLY Report No: 53782-ZR PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 6.6 MILLION (US$lO MILLION EQUIVALENT) TO THE DEMOCRATIC REPUBLIC OF CONGO FOR A STREET CHILDREN PROJECT May 4,2010 Human Development Department Social Protection Unit Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective March 3 1,20 10 Currency Unit = Congolese Franc 894.997 = US$l US$1,51824 = SDRl FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS BCC Behavior Change Communication BICE Bureau International Catholique de l'enfance BISPE Child Protection Office (Bureau des Interventions Sociales pour la Protection de 1'Enfant) CAS Country Assistance Strategy CAFES National Centre for Training of Social Workers (Centre Apicain de Formation Supe'rieure des Educateurs sociam) CATSR Support Committee for Street Social Work (Comite' d 'Appui am Travailleurs Sociam de la Rue) CCT Conditional Cash Transfer CFAA Country Financial Accountability Assessment COGES School Management Committee (Comite' de Gestion des Etablissements Scolaires) COPERF Coordination of International Organizations for the Protection of Children without Family Care (Collectifdes Organisations Internationales pour la Protection des Enfants en Rupture Familiale) CPAR Country Procurement Assessment Review CPS Social Promotion Center (Centre de Promotion Sociale) DEP MINAS's Studies and Planning Department DISPE Department of Child Protection (Direction des Interventions Sociales pour la Protection de 1'Enfant) DIVAS Division of Social Affairs (Division Provinciale des Affaires Sociales) DRC Democratic Republic of Congo FBO Faith-Based Organization FM Financial Management FSRDC The Social Fund of the Democratic Republic of Congo (Fonds Social de la Re'publique De'mocratique du Congo) HIPC Heavily Indebted Poor Countries IDA International Development Association IFMIS Integrated Financial Management Information System. IFR Interim Financial Report ILO International Labor Organization 2 FOR OFFICIAL USE ONLY IMF International Monetary Fund JSDF Japan Social Development Fund M&E Monitoring and Evaluation MDG Millennium Development Goal MDM MCdicins du Monde MDRI Multilateral Debt Relief Initiative MINAS Ministry of Social Affairs, Humanitarian Action and National Solidarity (Ministire des Affaires Sociales, Action Humanitaire et Solidarite` Nationale) MIS Management Information System MOU Memorandum of Understanding NCB National Competitive Bidding NGO Non Governmental Organization ovc Orphans and other Vulnerable Children PAD Project Appraisal Document PASU World Bank-funded Emergency Social Action Project PDO Project Development Objective PEFA Public Expenditure and Financial Accountability PIM Project Implementation Manual PIU Project Implementation Unit PRSP Poverty Reduction Strategy Paper RAAP Rapid Assessment, Analysis and Action Planning REJEER Network of Street Children and Youth Educators (Riseau des Educateurs des Enfants et Jeunes de la Rue) RENACERAS National Network of Centers for Remedial Schooling (Re`seauNational des Centres de Rattrappage Scolaire) SBFB Selection Based on Fixed Budget SPF State and Peace Building Fund TFESSD Trust Fund for Environmentally and Socially Sustainable Development ucw Understanding Children's Work UNFPA United Nations Fund for Population Activities USAID United States Agency for International Development UNICEF United Nations Children's Fund WB World Bank Vice President: Obiageli K. Ezekwesili Country Director: Marie Frangoise Marie-Nelly Acting Sector Director: Tawid Nawaz Sector Manager: Lynne Sherburne-Bern Task Team Leader: Anne Mossige This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. 3 CONGO. DEMOCRATIC REPUBLIC OF STREET CHILDREN PROJECT CONTENTS Page I . STRATEGIC CONTEXT AND RATIONALE ................................................................. 9 A . Country and sector issues .................................................................................................... 9 B . Rationale for Bank involvement ....................................................................................... 12 C . Higher level objectives to which the project contributes .................................................. 13 I1 . PROJECT DESCRIPTION. ............................................ ...e.... ..................................... 14 A . Lending instrument ........................................................................................................... 14 B . Project development objective and key indicators ............................................................ 14 C . Project components ........................................................................................................... 15 D . Lessons learned and reflected in the project design .......................................................... 19 E . Alternatives considered and reasons for rejection ............................................................ 20 I11 . IMPLEMENTATION ................................................................ . ..................... 21 A . Partnership arrangements.. ................................................................................................ 21 B . Institutional and implementation arrangements................................................................ 21 .. C . Sustainability..................................................................................................................... * 26 D . Critical risks and possible controversial aspects............................................................... 26 E . Loadcredit conditions and covenants............................................................................... 29 IV . APPRAISAL SUMMARY ............................................................................................. 30 A . Economic and financial analyses ...................................................................................... 30 B . Technical ........................................................................................................................... 31 C . Fiduciary ........................................................................................................................... 32 D . Social................................................................................................................................. 33 E. Environment., .................................................................................................................... 33 . F. Safeguard policies ............................................................................................................. 33 G. Policy Exceptions and Readiness...................................................................................... 34 Annex 1: Country and Sector or Program Background ......................................................... 35 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .................41 4 Annex 3: Results Monitoring Framework ............................................................................... 42 Annex 4: Detailed Project Description ...................................................................................... 51 Annex 5: Project Costs ............................................................................................................... 61 Annex 6: Implementation Arrangements ................................................................................. 62 Annex 7: Financial Management and Disbursement Arrangements ..................................... 68 Annex 8: Procurement Arrangements ...................................................................................... 81 Annex 9: Economic and Financial Analysis ............................................................................. 89 Annex 10: Safeguard Policy Issues ............................................................................................ 91 Annex 11: Project Preparation and Supervision ..................................................................... 92 Annex 12: Documents in the Project File ................................................................................. 93 Annex 13: Statement of Loans and Credits .............................................................................. 94 Annex 14: Country at a Glance ................................................................................................. 95 Annex 15: Map ............................................................................................................................ 97 5 DEMOCRATIC REPUBLIC OF CONGO Street Children Project Date: May 5,2010 Team Leader: Anne Mossige Country Director: Marie Francoise Marie- Sectors: Other social services (100%) Nelly Themes: Social safety nets (50%); Gender Sector Manager: Lynne Sherburne-Benz (25%); Vulnerability assessment and Acting Sector Director: Tawhid Nawaz monitoring (25%) Project ID: P115318 Environmental screening category: C Lending instrument: Specific Investment Safeguard screening category: NIA Lending Source Local Foreign Total BorrowerRecipient 0 0 0 IDA Grant 6.68 3.32 ? 10 Others 0 0 0 Total 6.68 3.32 10 Democratic Republic of the Congo Estimated disbursements (Bank FY/US$m) FY 201 1 2012 2013 2014 2015 Annual 1.1 2.0 3.0 3 .O 0.9 Cumulative 1.1 3.1 6.1 9.1 10 Does the project depart from the CAS in [ 3 Yes [XI No content or other significant respects? Re$ PAD I.C Does the project require any exceptions from [ ]Yes [XI No Bank policies? Re$ PAD IKG71 Have these been approved by Bank [ ]Yes [ 1 No management? Is approval for any policy exception sought [ ]Yes [X ] No from the Board? Does the project include any critical risks rated [ X]Yes [ 3 No ?substantial? or ?high?? Re$ PAD III. 0 5 2 6 Does the project meet the Regional criteria for [XIYes [ 3 No readiness for implementation? Ref: PAD IV G72 Covenants applicable to project implementation: The following financial management covenants apply: (a) The Recipient shall establish not later than three months following the effectiveness Date and thereafter maintain or cause to be maintained a financial management system (including related staff, software and an internal auditor) in accordance with the provisions of Section 4.09 of the General Conditions. (b) The Recipient shall prepare and furnish to the Association as part of the Project Report 7 not later than forty-five (45)days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the Association. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 4.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made under the Project. The audited Financial Statements for each such period shall be furnished to the Association not later than six months after the end of such period. (d) The Recipient shall by not later than three months following the effectiveness date, or any other later date agreed with the Association, contract an external auditor under terms and conditions and with qualifications and experience satisfactory to the Association. 8 I. STRATEGIC CONTEXT AND RATIONALE A. Country and sector issues 1. Following years of the most devastating conflict in Africa, the Democratic Republic of Congo (DRC) has experienced important political and economic gains. Since 2007, a broad coalition government has implemented policies following the five priorities underpinning the Poverty Reduction Strategy Paper (PRSP). These included good governance and peace consolidation, consolidation of macro-economic stability and growth, access to social services, fight against HIVIAIDS, and the promotion of community dynamics. In the last nine years and prior to the financial crisis, the economy was growing at an average rate of 6.7 percent per annum. 2. The country's social situation, however, remains fragile and poverty is widespread. DRC is ranked 176 out of 182 countries in the 2009 Human Development Index and income poverty is widespread. In 2007, statistics indicated that about 70-80 percent of the population lived under the poverty line and the financial crisis as well as the food crisis have aggravated the situation. For example, in the Katanga province alone, 300,000 workers have lost their jobs. Impoverishment, violence, human rights abuses and large-scale displacements have caused untold suffering and a deep deterioration of the social fabric, overburdening or breaking up families and traditional social safety nets. Perhaps the most heart-rending manifestation of this social disruption is the growing number of street children in the country's urban centers. 3. There are an estimated 40,000 street children in DRC, including about 14,000 in Kinshasa,' though many development actors believe this is an underestimate. Of this total, an estimated 26 percent are girls. Because of the violence to which they are exposed on a daily basis and the lack of adult guidance, street children tend to live on the margins of society and engage in antisocial behavior, including substance abuse, crime, vandalism, prostitution and unsafe sex. For example, studies in Kinshasa report that nine out of ten street girls were involved in prostitution, and seven out of ten had been raped. These behaviors may have highly negative consequences for the children themselves (drug addiction, sexually transmitted diseases, unwanted early pregnancies, imprisonment) but also for society as a whole. In addition to the obvious security problem posed by street children, and the consequent loss of business or diminished quality of life for the general population, street children are unlikely to grow up into well adjusted and productive adults and may instead become easy prey for recruitment by urban gangs and militias. This can result in significant costs and large scale social capital erosion, including aggravating problems of insecurity and instability in many urban areas. 4. Children are in the street for a multitude of reasons. According to a study commissioned by the World Bank in 2009, some reasons are related to acute poverty, as parents and other caretakers who are unable to provide for their children may encourage them to leave the household and fend for themselves, or simply eject them. Other reasons are social or cultural, such as family break-ups or step-parents' refusal to accept children from their spouse's previous marriage. A most disturbing and frequent phenomenon has to do with children's rejection from their parental or caretakers' households after accusations of witchcraft. ' UNICEF, 2006: Recensement des enfants de la rue de la villeprovince de Kinshasa. 9 5. Most street children actors are nongovernmental organizations (NGOs) and faith- based organizations (FBOs), while limited capacity and lack of resources make public support minimal. USAID is the most important donor targeting orphans and other vulnerable children (OVC) and funds an important part of UNICEF's and Save the Children's (UK) activities in different urban areas of the country. UNICEF has a national OVC program, including support to the establishment of a legal framework for child protection, advocacy, government capacity building, and service delivery (health, education). The most important international NGOs/FBOs supporting street children in Kinshasa are Save the Children, Africare, MCdecins du Monde (MDM), and the International Catholic Office for Children (BICE). Most of the international NGOs involved with street children are members of a network called COPERF. They implement their projects with or through local NGO and FBO partners, whose capacity they try to strengthen. Congolese NGOs and FBOs working with street children are grouped in the network of street educators known as REJEER, which has over 100 member organizations (of significantly varied sizes and degrees of professionalism) and a total of 2,370 social workers. 6. Both the political will and institutional framework required to address the issue of street children are in place. Since 2004, the Ministry of Social Affairs, Humanitarian Action and National Solidarity (MINAS) has produced a national social protection strategy for vulnerable groups. MINAS has also developed a National Action Plan for OVC in 2009. The recent promulgation of the Child Protection Law, which has been developed with considerable support from UNICEF, illustrates the political will to respect and promote children rights in accordance with international law. Other Ministries such as the Ministry of Gender, Family, and Children, the Ministry of Public Health, the Ministry of Youth and Sports, the Ministry of Education, the Ministry of Interior, the Ministry of Security, the Ministry of Labor and Social Protection, as well as the Ministry of Justice and Human Rights have various degrees of responsibility in dealing with the issue. Numerous coordination bodies are in place, including a UNICEF-supported OVC coordination committee (locally known as Commission mixte) that comprises several ministries, donors as well as national and international NGOs and FBOs involved in child protection. 7. Despite these systemic arrangements, major challenges pertaining to prevention and protection of DRC's street children persist, including: Insufficient coverage o services. While there is an active network of private organizations f (NGOs and FBOs) trying to provide services for street children, their resources - both technical and financial - fall considerably short of need. A 2006 UNICEF survey in Kinshasa found that 55 percent of the street children had not benefitted fiom any of the services available for street children, thus the majority of street children in Kinshasa makes a living from the street and does not benefit from support from either private or public actors. Moreover, most development actors only provide one or two services and rarely have a holistic approach.2 Main activities include accommodation (45 percent) followed by family reintegration, social assistance, vocational training and education. 10 Limited focus on preventive measures, disrespect of children's rights and impunity o f perpetrators. Although several laws and codes related to child protection and fundamental rights have recently been adopted by the Government, the application of these laws is still minimal. For example, the great majority of perpetrators of sexual violence or accusers of witchcraft are not punished, although the Child Protection Law (2009) forbids sexual violence and accusations of witchcraft. Strongly held cultural beliefs, ignorance of the law, unwillingness to go after influential members of the community, unclear mandates and responsibilities, and a chronically under-resourced judiciary system militate against the application of the existing laws. Although some actors support local community-based prevention activities in Kinshasa, the approaches vary considerably between actors and the activities are often thinly spread (e.g., one child protection committee covering a commune of over 500,000 people), and they have often not been evaluated. Inadequate skills and training o most private and public actors. At present DRC has f identified norms but has yet to develop and apply standards for social work (case management) and workers. The only national centre for training of social workers (African Center for the Higher Education of Social Workers or CAFES) is private and has very limited capacity. While CAFES is funded by the Belgian development cooperation, UNICEF recently started supporting the development of provincial pools of trainers in social work. Very few good practice interventions and very limited expertise in the provision of psychosocial assistance. Several studies, including the 2009 World Bank assessment of actors and interventions concerned with street children in Kinshasa found that the support provided is generally limited to one or two activities, primarily accommodation (in closed or open centers) and a minimum of social assistance. Very few organizations are able to offer comprehensive services and major gaps have been found in the provision of psychosocial assistance and vocational training. Moreover, to date very few good practice interventions have been documented. Weak national leadership, poor quality control, and lack of standards. At present MINAS is unable to play its role as a national focal point concerning social protection of OVC. MINAS is a weak capacity ministry and suffers from extremely limited financial and human resources. E.g., in 2008, MINAS's proposed budget of US$ 30 million for social protection was approved by the Parliament but the funds for the budget were never allocated. During the same year, the operating budget of MINAS's Studies and Planning Department (DEP) was only US$ 50. The capacity of its staff - both at national and provincial level - is often weak due to high turn-over, high average age, limited practical experience and few training opportunities, all issues that are intrinsically linked with the challenges that a post-conflict DRC faces with its civil service and therefore not specific to MINAS. Between 35 to 40 percent of MINAS' staff do not receive a regular Government salary as they do not have the required employment status (they are not "m6canis6sYy). Moreover, the Ministry's physical infrastructure related to social protection of OVC is often in bad repair and poorly managed. 11 B. Rationale for Bank involvement 8. Progress toward peace and recovery is taking place within the context of an acute social crisis, which constitutes a major risk for the country's recovery. While political progress, economic reforms, and the return of growth have produced some visible results, the social situation remains appalling. The conflict in the DRC has had indirect but devastating impact on the social fabric of the country: large-scale displacements, violence and human rights abuses, as well as impoverishment, have caused tremendous psychological suffering breaking up families and other solidarity networks. Many traditional safety nets are no longer functioning effectively, and some of the social networks that are key for economic recovery have been severely disrupted. 9. Recognizing this challenge, the 2008-2011 CAS sets out to focus assistance on improved social services as one of the three pillars of the Bank assistance program. The proposed project fits in a portfolio that, as of February, 2010, included 17 active investment projects amounting to US$2.4 billion. The portfolio reflects the priorities of a country emerging from a protracted conflict, with an emphasis on emergency infrastructure rehabilitation balanced by support to strengthen governance and prevent further deterioration in the delivery of social services. Given the widespread needs and poverty, only three operations target a specific vulnerable group: the demobilization and reintegration project for ex-combatants, the State and Peace Building Fund (SPF) grant for women victims of sexual violence, and the SPF grant for ex-miners in the Katanga province (ex-miners will also be supported by the IDA-financed Social Fund). The proposed project will focus on another critically vulnerable group whose numbers have increased as a result of the prolonged crisis. It will, therefore, help fill a gap. At the same time, it will complement ongoing and planned operations in education. In fact, drop-out children have been found to have a higher risk of becoming street children and once children are in the street, their chances to finish elementary school are minimal, thus making the education MDG all the more elusive. 10. The recent promulgation of a Child Protection Law creates a momentum around the issue of street children in DRC. The Bank is strategically placed to finance an intervention that will stimulate learning on the most effective approaches to the issue at this critical time. Such an engagement is even more critical given the plethora of actors that have demonstrated interest in the question through different interventions (e.g., UNICEF, UNFPA, USAID and other bilateral donors, international NGOs and FBOs, and private foundations). 11. The street children project is an important element of Bank assistance to DRC in its transition from emergency to development. Street children are one of the most vulnerable groups in society and also one of the poorest. The cost of inaction on society as a whole is disproportionate to the cost of dealing effectively with the problem. The quality of urban living is greatly affected by street children, who are not only a sad reminder of society's ills but also contribute to spread a sense of insecurity because of their frequent association with petty crimes and various forms of violence. The experience of metropolises in Latin America and other parts of the world makes it clear that unless action is taken at an early stage, street children may evolve into a (dysfunctional) society within society, with a considerable cost in terms of damage to property, loss of business, judiciary actions and health care. In addition, the delivery of 12 quality, cost-effective and financially sustainable services to OVC is critical to the attainment of many of the MDGs (see below). 12. The proposed project activities address the recommendations of the Bank's 2009 assessment of the street children actors and interventions in Kinshasa. These include: (a) the importance of focusing on prevention activities as they represent the only long-term sustainable answer for ending the street children plight; (b) the need to improve the quality and coverage of assistance services, including those adapted to the special circumstances of street girls as they are a particularly vulnerable group; and (c) the need to strengthen the capacity of MINAS, so that it can become a more dynamic national focal point for child protection and mobilize more donor funds in the future. C. Higher level objectives to which the project contributes 13. The proposed project is fully consistent with the objectives of the PRSP, particularly two of its pillars: (i) improving access to social services and reducing vulnerability, and (ii) promoting community dynamics. It is also consistent with the World Bank's priorities for Sub- Saharan Africa. The Bank's Social Protection Sector Strategy stresses that "OVC constitute the first-order priority target group for social protection in Africa". 14. As indicated above, the 2008-2011 CAS for DRC, prioritizes shared and sustainable growth, as well as improved social services. Projects and activities to be designed within the scope of the last two pillars, including the proposed street children project, will reduce vulnerability of marginalized populations, thus supporting the social development priorities highlighted in the PRSP. 15. The project would also contribute towards four of the five specific objectives of DRC's National Social Protection Strategy for Vulnerable Groups, including: (i) promoting the rights and the dignity of vulnerable groups (through prevention and sensitization); (ii) increasing access to basic social services; (iii) promoting and facilitating the economic and socio professional reintegration of vulnerable groups; and (iv) building the capacity of key stakeholders, including MINAS. In addition, the project would contribute to building more cohesive communities and stronger solidarity (and therefore greater social capital), a better organized and more competent Ministry in charge of social affairs, and progress toward achieving a number of MDG --MDG no. 1 (eradicate extreme poverty and hunger), as assistance to street children, and especially street girls, will help break the inter-generational cycle of poverty; MGD no. 2 (achieve universal primary education), as street children will be given a chance to attend school; MDG no. 4 and 5 (reduce child mortality and improve maternal health), as street girls will receive peri-natal assistance. 13 11. PROJECT DESCRIPTION A. Lending instrument 16. A Sector Investment Lending is proposed as the most suitable instrument. As DRC has not yet a long term strategy related to the street children issue it is not appropriate to use any programmatic approach. B. Project development objective and key indicators 17. The project development objective (PDO) is to improve the delivery mechanisms of prevention and support services for street children, primarily in Kinshasa. Though the project will benefit street children in Kinshasa, some of its prevention and capacity building activities will have a national coverage. For example, radio programs on children rights will be broadcasted in all the provinces, and training for MINAS staff will also be provided to personnel based outside the capital. 18. The PDO will be pursued through (i) piloting alternative approaches, (ii) improving the delivery capacity of service providers, and (iii) improving the institutional capacity of MINAS in coordination, supervision and strategic planning. 19. Performance will be measured by the following outcome indicators (for a complete list of monitoring indicators see Annex 3): 0 Increased availability of information related to child protection law and children rights (75% of households targeted through the project are active3 and 70% of households targeted recall correctly key messages about children rights fiom the campaigns financed by the project) 0 Increased support services available to street children (by the end of the project, 2,500 children at risks provided with education or remedial education opportunities; 5500 children are offered access to comprehensive support services; and 800 children have restored relationships with their families) 0 Strengthened capacity of the Ministry of Social Affairs and other key actors to coordinate and monitor services provided (national standards for service delivery to street children are developed and validated; a national multisectoral coordination committee for the protection of OVC is established and operational; a database established and managed by MINAS's Department of Child Protection (DISPE) with the support of MINAS's Studies and Planning Department (DEP) to monitor and coordinate ongoing children rights interventions as well as to capture the number of beneficiaries per category of service is established; annual evaluation of the effectiveness and costs of different prevention and support services is conducted). Active is defined relatively to the mandate of the child protection committees based on: (i) the number of technical meetings held per month; (ii) the percentage of child protection cases that are successfully addressed per month; and (iii) the understanding of laws pertaining to child protection. 14 0 A total number of 8,000 children are offered access to basic services; 800 community leaders and authorities are sensitized; and 650 NGOs and government workers are trained C. Project components 20. Project components were determined on the basis of lessons drawn from international experience, research recently conducted in DRC (see Annex 12) and extensive consultation with local stakeholders including the NGO network of street children and youth educators (REJEER), key international NGOs (e.g., MCdecins du Monde, Save the Children, Africare), government and UNICEF. UNICEF, who is the lead technical expert and main child protection actor in DRC, participated actively in project preparation. Two studies were carried out during the preparation: (i) a 2009 assessment of street children actors and interventions in Kinshasa, and (ii) a qualitative survey of street children in Kinshasa involving the participation of REJEER. 21. A priori considerations and some sparse but impressive empirical evidence support the view held by most local stakeholders that only preventive approaches offer realistic hope of overcoming the street-children problem in countries such as DRC where it has reached formidable levels. On the other hand, there are also sound reasons to invest in activities targeting directly the many children now living and working in the streets. Their miserable lives do not fit with the principles of the 1989 UN Convention on the Rights of the Child, and their suffering calls for efforts to afford them protection and help to a better future. 22. Of the three components proposed below, there was general agreement among the different stakeholders that prevention is the most important. However, in light of the higher per capita cost of providing services to children already in the street, of the humanitarian imperative to offer immediate assistance to the target group and of the complementarity of other IDA- financed operations with prevention activities (especially the education project), a larger portion of the budget will be allocated to "remedial" actions. 23. Component A: Prevention ($3.1 million). The approach adopted by this component will aim at tackling the most common proximate causes of " streetism": (a) family break-up and the subsequent abandonment, mistreatment or severe neglect of orphans and step-children; (b) accusations of child witchcraft; and (c) lack of parental responsibility or simply ignorance of children's needs and rights as stipulated in national legislation^.^ In addition, as dropping out of school is often a precursor of family abandonment or expulsion, efforts to keep children in school will be supported. Activities will be concentrated on the four communes of the greater Kinshasa metropolitan area (out of 24) that are most often the point of origin for street children (the so-called "supplying zones"): Masina, Kimbanseke, Limete and Bumbu. In 2004 the total population of these communes was estimated at about 2.1 million. Such a seemingly narrow focus is justified by the labor-intensive nature of the most promising approach, which requires face-to-face communication with community leaders and at-risk households. When activities Poverty also plays a significant role in parents' decision to push their children out or in children's decision to leave their home in search of a better life (or just of food), but it appears to be less important than the other factors mentioned. 15 may cover also other areas at relatively low cost (e.g., radio programs), coverage will be expanded to the rest of the capital and beyond. 24. In line with common practice in prevention work that relies primarily on behavior change communication (BCC), such as it is done with HIV/AIDS prevention, a variety of mutually reinforcing activities will be financed, including: Community mobilization: Informal community-based networks of volunteers, including Child Protection Committees and "family helpers", will be the backbone of preventive efforts as well as the primary link of the community to child protection services offered by specialized NGOs/FBOs and the Government. They will be strengthened (if they already exist) or established, organized and supported by community organizers and social workers hired by the NGOs/FBOs contracted for project implernentati~n.~ A particular effort will be made to set up and support community warning systems aimed at identifying children at risk such as run-aways or abuse victims (who are likely to be future run-aways). It is expected that the networks will concentrate on individuals whose standing in the community places them in a privileged position to influence behavior. In particular, given the considerable outreach capacity of churches and mosques and, especially, their important role in shaping beliefs and behaviors, they will constitute a primary ally for preventive activities. The experience of local NGOs and the active involvement of FBOs in the provision of humanitarian assistance bode well. 0 Community awareness campaigns: The actions of community networks will be complemented and reinforced by a variety of community events that will use social marketing principles to deliver basic messages on topics such as child protection, parental responsibility, child development, children rights and duties (as per the African Chart on the Rights of Children), HIV/AIDS awareness and prevention, human rights, and the challenges of witchcraft. Interactive theater has already been used with good results and will be supported. A particular emphasis will be put on the dissemination of the Child Protection Law. The law was approved in 2009 and it contains a comprehensive set of provisions that, if applied, should significantly reduce the number of children living in the streets. While a number of decrees have to be issued to make the law fully applicable, one of the main obstacles to its effectiveness is that it is simply not known. So far, limited efforts have gone into disseminating it, primarily by UNICEF and Save the Children targeting magistrates and lawyers, and the NGO BICE targeting police officers. It is believed that increased awareness of the law would contribute to prevention (e.g., the existence of penalties for those accusing children of witchcraft). Those in charge of ensuring that the law is applied will be particularly targeted and trained, including social workers, police officers, magistrates and lawyers. 0 Media outreach: Radio has proved to be a very influential tool for promoting positive changes of attitudes and behaviours, as it reaches large population groups, including illiterate or under-educated people. NGOs specialized in the use of mass media for BCC will be contracted to produce a variety of radio formats, including sketches, mini-dramas, 'NGOsRBOs and MINAS social inspectors will supervise the activities of community networks to ensure that no harm results to children as a result of volunteers' actions (whether well-intentioned or malicious). 16 interactive call-in programs, and feature programs. Topics covered in such programs will be similar to those covered by community awareness campaigns. 25. The project will also finance efforts to keep children in school, liaising with the Ministry of Education to ensure coordination and an efficient use of available resources (including the IDA-financed education project). As experience shows that dropping out of school is often the first step toward life in the streets, many local actors support school attendance for at-risk children as a preventive measure. This is generally done in one of two ways, depending on the particular predicament of the children and their families, as well as on the specific context: One approach is to work closely with neighborhood schools, helping them with repairs, maintenance and supplies. Teachers and School Management Committees (which include parents) are sensitized and trained to engage their help in identifying children at risk and keeping them in school. It is typical for schools to then agree to accept a percentage of children (10-15 percent) free of charge, which will include children at risk. 0 The other approach is to set up remedial education centers that provide an accelerated primary cycle or collaborate with existing ones. These centers provide an accelerated primary cycle (three years instead of six) that has been approved by UNESCO and they have been shown to have better success rates than formal primary schools. After graduation, children can (reljoin the formal education system and enroll in secondary education. 26. Component B: Assistance ($4.3 million). This component will finance a set of activities aimed at improving coverage and quality of services for street children, with special attention to street girls.6Theparticular focus on street girls is justified by the following considerations: (a) Street girls often become pregnant and have babies, who will likely grow up in the street and become themselves street children. Assisting street girls, therefore, could help break the intergenerational cycle of "streetism" and, hopefully, also the intergenerational cycle of poverty. (b) Street girls are often victims of sexual violence at the hand of various predators, including, in some cases, reportedly by police officers or random men in the city who take advantage of them in exchange for protection or a place to sleep. 27. Given the limited funding available, activities will be geographically targeted to eight of the 24 communes of the Kinshasa larger metropolitan area, selected for their high concentration of street children: Gombe,' Kinshasa, Masina, Matete, Kasa-vubu, Kalamu, Kitambo and Selembao. 6 Street children are defined as boys and girls under the age of 18, loitering and living in the street, who are no longer under the authority and responsibility of an adult, and who make a living on the street using all means necessary (see Annex 4 for a more detailed defmition). ' 0nly"Listening Centers" are likly to be supported in Gombe, as children are generally chased away from this very central area and prefer to sleep elsewhere. 17 28. The component will support a wide range of services going from immediate protection from imminent danger (shelter, medical care, food, trauma counseling) to long-term living solutions (family reunification, group housing). While permanent removal from the streets would be the ultimate goal of interventions, it would be unrealistic to expect high rates of success. Experience worldwide suggests that family reunification - in principle the ideal outcome - is a long, costly and often unsuccessful process. Some factors that are present in DRC further increase the likelihood of failure in family reintegration efforts: (i) in cases where children have fled family abuse, it is not in the best interest of the children to be reunited with their families; (ii) levels of stigma associated with girls having children outside of wedlock (a category within which 20% of street girls in Kinshasa fall) are extremely high, further complicating the family reintegration process when at all possible. For these reasons, a variety of intermediate and alternative arrangements will be explored. Street educators and informal Listening Centers will offer a first contact for children with the "regular" world and caring adults, thus representing the entry point for other services. Transit Centers will provide, in addition to immediate protection, access to a number of services with longer-term objectives such as psycho-social counseling and remedial classes. Particular emphasis will be put on functional literacy and vocational training, including business skills training, as these are crucial to equip children who cannot (or do not want to) rejoin their families with the skills needed to become productive citizens. In addition, experience in DRC suggests that family reunification may be easier when the child possesses skills that make himher an economic asset to the household. 29. Component C: Capacity building, coordination and project management ($2.6 million). This component would provide for technical assistance and training to strengthen MINAS' capacity to: (i) develop standards for activities targeting street children; (ii) coordinate the interventions of different stakeholders (NGOs, FBOs, donors, government institutions); and (iii) monitor and evaluate ongoing interventions. When relevant, capacity building would also include staff of other ministries (e.g., Ministry of Justice, Ministry of Gender, Family and Children). In addition, the project will provide the opportunity to reinforce the capacity of entities with a direct role in the implementation of components A and Bybecause of their mandate because they have been contracted as service providers (e.g., NGOs and FBOs), or because of their strategic position (e.g., the umbrella NGO for street educators). 30. As part of this component, an institutional assessment will be conducted focusing on MINAS' capacity to achieve results in the field of child protection, so as to help the Ministry identify weaknesses and devise measures to make a more effective use of available resources. The 2004 National Social Protection Strategy for Vulnerable Groups identified a number of obstacles to MINAS' effectiveness that are still valid, including: high staff turn-over, a disproportionate number of staff beyond retirement age, difficult physical working environment, and staff who are often insufficiently or inappropriately trained and who lack relevant field experience. Some of these constraints are a result of the protracted crisis and not unique to MINAS, thus a solution would entail a much larger effort than possible under the limited scope of this project (e.g., a large number of staff beyond retirement age). Others, on the other hand, can be tackled with the available funding (e.g., insufficient or inappropriate training). It should be noted that capacity building activities targeting MINAS will have a national coverage, 18 enabling its provincial representations to benefit from the project as well. In this sense, it is hoped that the activities financed under this component will help re-energize the Ministry and enable it to play its role of national focal point for vulnerable children, including mobilizing funds from other donors. 3 1. Training activities will target key actors, in particular relevant staff of MINAS and local NGOs/FBOs and will include training in: child protection and children rights; planning and monitoring and evaluation, accounting and fund raising; norms, standards, policy development, and the development of legal provisions; and thematic training on specific topics such as social reintegration (e.g., listening skills, mediation techniques, family reunification), economic reintegration (e.g., how to provide assistance for self-employment, motivational skills), and gender-based violence (prevention, case management, trauma counseling). 32. A tentative breakdown of costs for this component is as follows: Capacity building for MINAS, local NGOs and FBOs and other relevant actors, including coordination: US$900,000 Monitoring and evaluation: US$ 600,000 Project management: US$ 1.1 million D. Lessons learned and reflected in the project design 33. As the second and largest Bank operation designed to tackle the issue of street children in the Africa Region, this grant provides various opportunities for learning. On the other hand, considering that the other operation (a $2 million JSDF grant in Senegal) has just started implementation, it is impossible at this stage to reflect on past performance of similar Bank projects in the region. Similarly, lessons have yet to be drawn from the only other comparable project funded by the institution in recent years, the Bangladesh Disability and Children at Risk Project, which started implementation in January 2009 and has not yet undergone any formal evaluation process. In the late 1990s and early 2000s, the plight of institutionalized children in the ex-Soviet bloc resulted in two projects that addressed street children issues to a certain extent: the Child Welfare Reform projects in Bulgaria and Romania. While the context is considerably different from DRC, the following lessons apply: (i) Sustainability: It is important to secure buy-in from the Ministry of Finance early on, so as to motivate it to develop a financing formula for child protection services that can be adopted to ensure sustainability. (ii) Prevention activities: Collaboration with strategic partners (including the media, UN agencies, and private organizations) is essential to the success of public awareness campaigns, especially when the project budget is limited. In addition, activities geared towards disseminating information on children rights and promoting law enforcement for child protection (including training for law enforcement officers) create an enabling environment for meeting project objectives. 19 34. Lessons from non-Bank operations targeting street children in other countries come primarily from Latin America, where formal efforts to deal with the problem date back to the 1980s with the active involvement of the Inter-American Development Bank, but also from a number of African and Asian countries where NGOs have generally been at the forefront of efforts. Lessons include: (i) the imperative of prevention for a long-term solution, with the most effective interventions often targeting not children at risk of ending up in the street, but children from underprivileged backgrounds in general (e.g., early childhood development, conditional cash transfers, after school programs, etc.); (ii) the need to focus "remedial" actions on mainstreaming children, thus avoiding institutional solutions and facilitating reintegration within the community; (iii) caveats about family reunification, which is generally the preferred outcome but is an expensive and long endeavor with low success rates, especially with girls (recidivism is common and the longer the child has been in the street, the least likely the success); (iv) the importance of vocational training, which organizations working with street children are seldom equipped to deliver in a competent way, that is, in a way that actually results in the children being able to earn a living, with the skills learned, once the children reach the legal age to work; (v) the value of rigorous monitoring and evaluation, including follow-up of "graduated" children (either reunified with their family or otherwise reintegrated into mainstream society); and (vi) the importance of encouraging innovation and of making space for innovative projects with high potential benefits --but not weak implementing partner NGOs. 35. Lessons learned from operations in DRC include the need to (i) have clearly defined selection criteria for NGOs working in Bank projects, (ii) have strong financial management and procurement capacity underpinning project activities, and (iii) establish clear monitoring and reporting requirements prior to project effectiveness. E. Alternatives considered and reasons for rejection 36. Several alternatives to the proposed project design were considered during project preparation. Initially, and in recognition of the needs, the team wanted to implement the project at the national level. Given the budget available, it became quickly evident that less ambitious objectives were more appropriate and the larger metropolitan area of Kinshasa was selected in light of its large population of street children as well as the presence of all major stakeholders. The project team also considered financing the delivery of support services without addressing prevention. However, lessons learned from experiences elsewhere as well as stakeholders' insistence on the need to address the "supply" side of the equation, made it clear that prevention had to be included. 20 37. In terms of implementation arrangements, the team considered whether MINAS should have been given the responsibility to actually implement the project. While the Ministry has the official mandate to provide for vulnerable children, it was agreed that MINAS's lack of familiarity with donor project execution and weak human resources would have called for a disproportionate investment to beef up its implementation capacity, and probably also implied a very slow start. In light of the limited project budget, a decision was made to rely on the proven capacity of the Social Fund agency (known as FSRDC), whose fiduciary set-up is well adapted to the needs of the project (see below for details on implementation arrangements). The project's component C focus on building MINAS' capacity to develop standards, coordinate and monitor and evaluate interventions related to street children. 111. IMPLEMENTATION A. Partnership arrangements 38. The project is being prepared in close collaboration with the key street children stakeholders. UNICEF in particular has been closely involved in all phases of project preparation, and will continue its involvement by being a member of the Steering Committee (see below) and acting as an advisor throughout the implementation period. USAID (the most important bilateral donor for OVC), and the international NGOs Save the Children, Africare, MDM and BICE have been regularly consulted. Members of the local NGO network REJEER participated actively both in the qualitative survey of street children and in the review of street children actors and interventions. Although the World Bank to date is the only institution funding the proposed project, the intention is to use this operation to leverage other donor funds for street children and child protection interventions in Kinshasa and throughout the country. B. Institutional and implementation arrangements 39. MINAS will be the implementing agency, but will rely on a Project Implementation Unit (PIU) placed within the Social Fund of the DRC (FSRDC). As the government body with the mandate for children protection, the Ministry bears ultimate responsibility for activities dealing with "streetism". However, in light of its weaknesses and of the limited resources and time for project implementation, day-to-day project management activities will be delegated to the FSRDC (see below), through an ad hoc PIU (see organigram in Annex 6). A MOU will clearly spell out duties and responsibilities of the two parties. A Steering Committee comprising representatives of government (especially MINAS), donors and civil society will act as the oversight body. Activities under Component A and B, as well as part of the activities under Component C, will be contracted to private actors (NGOs, FBOs, consulting firms) and, when appropriate, to government entities. Selection will be done in line with Bank procedures, primarily on the basis of competitive bidding. The roles of the main institutions involved in project implementation are summarized below. 0 Role of MINAS: The Ministry will be responsible for: (i) ensuring that project activities are consistent with national policies and laws; (ii) liaising with other governmental stakeholders including the Ministries of Justice, Gender, Health, Education as well as the 21 national police; and (iii) coordinating with relevant stakeholders to tackle strategic issues that will emerge during project implementation as well as providing technical support. MINAS will also be responsible for sharing lessons learned during project implementation regarding good practices and lessons learned. The activities financed under component C will help MINAS facilitate these tasks. Role of the PIU/FSRDC: The PIU will be hosted at the FSRDC. As explained above, this arrangement was chosen: (i) because MINAS has limited project implementation capacity; and (ii) to take advantage of FSRDC's established reputation for quality implementation while realizing economies of scale through the use of its fiduciary staff and instruments. The PIU will have a very small staff including a coordinator, two child protection specialists, and a monitoring & evaluation (M&E) specialist. FSRDC fiduciary staff will manage fiduciary aspects of the project. At least one of the two child protection specialists will be seconded by MINAS to facilitate a partnership with the Ministry and stimulate project ownership. 0 Role of the Steering Committee: This committee will act like a board of directors. It will be chaired by the Minister in charge of social affairs and comprise a total of seven members representing various departments of MINAS (three), civil society, the Ministry of Education and the Ministry of Gender, Family and Children; the PIU Coordinator will assist without voting rights. From the donor community, UNICEF will participate as an observer and provide advice. The Steering Committee will be responsible for (i) approving the annual budget and work program, (ii) approving the selection of entities for the implementation of component A and B (for contracts above a certain threshold), (iii) approving any other expenditure above a certain threshold; and (iv) revising the implementation reports produced by the PIU. In addition, it will serve as a last resort to resolve litigations. Modes of operations of the Steering Committee will be further detailed in the Project Implementation Manual (PIM). Role of other government actors: The issue of street children is complex, and finding sustainable and effective responses to the problem requires the involvement of a host of government actors whose mandates give them a role to play with child protection and child. rights. These include the Ministry of Justice, the Ministry of Human Rights, the Ministry of Gender, Family and Children, the Ministry of Education, the Ministry of Health, and the Ministry of Interior (the police in particular). These actors will therefore be associated in project implementation, and, when needed, be involved in the capacity building activities. 0 Role of Partner Implementing Organizations: Implementation of Components A (prevention) and B (assistance) will be contracted primarily to NGOs and FBOs. Specialized government entities, consulting firms and individual consultants will be the main implementing partners for Component C (capacity building). Implementing partners will be recruited following Bank procurement procedures and be responsible for service delivery in accordance with a work plan, budget and targets clearly spelled out in a contract as well as in the PIM (see Annex 6 for further details on the recruitment process of partner NGOs/FBOs and implementation arrangements). They will be required 22 to provide regular progress reports, be available for supervision by the PIU, submit audits and conform to the arrangements laid out in the PIM. Fiduciary management 40. The findings of CFAA and PEFA exercises as well as the financial management (FM) capacity assessment of MINAS conducted during the project preparation revealed some capacity shortages in the fields of financial management and procurement within the Ministry. Thus, the Bank cannot, at this time, rely on the public expenditure framework for the purpose of this project. It was agreed, therefore, to outsource the fiduciary aspect of the project to the FSRDC. FSRDC is very familiar with the Bank requirements and procedures for FM and procurement, and it will be the Bank and other donors' main counterpart and focal point for all the fiduciary aspects of the project. 41. Project FM will follow the same approach as the FM arrangements in place for the World Bank's projects that are currently being managed by the FSRDC (the Emergency Social Action Fund Project and an SPF grant for labor-intensive public works in the Katanga region), and the residual FM risk has been rated "moderate". FSRDC has been regularly submitting Interim Financial Reports (IFR) within 45 days of the end of the quarter, in form and substance that comply with IDA FM requirements, and it is expected that it will continue to do so. Appropriate additional FM arrangements have been discussed and agreed with the government to mitigate risks associated with the increase of workload that FSRDC will experience in the coming months. Due to FSRDC's satisfactory FM performance, project accounts will be audited on an annual basis and the external audit reports will be submitted to IDA within six months after the end of each year. 42. Upon Grant effectiveness, transaction-based disbursements will be used during the first months of project implementation. Thereafter, the option to disburse against submission of IFR (also known as the report-based disbursements) will be considered subject to the quality and timeliness of IFR submitted to the Bank and the overall financial management arrangement as assessed in due course. A Designated Account (DA) denominated in US Dollars will be opened in a commercial bank on terms and conditions acceptable to IDA. An initial advance up to the ceiling of the DA and equivalent to six months expenditures forecast will be disbursed by IDA upon effectiveness at the request of the project. Subsequent advances will be made once the FSRDC has reported on the use of the initial/previous advance. Funds will be disbursed to Partner Implementing Organizations (e.g., NGOs) in accordance with the payment modalities specified in the respective contractdagreements. In addition to these supporting documents, FSRDC will consider the findings of the internal audit unit while approving the payments. FSRDC, with the support of its Internal Audit Unit, will reserve the right to verify the expenditures ex-post, and refunds might be requested for non respect of contractual clauses. Misappropriated activities could result in the suspension of financing for a given entity. An implementation support mission will be carried before effectiveness to ensure the project readiness. To the extent possible, mixed on-site supervision missions will be undertaken with procurement, monitoring and evaluation, and disbursement colleagues. Detailed FM and Disbursement Arrangements are discussed in Annex 7. 23 43. Procurement activities will be carried out in accordance with Bank's guidelines -- Guidelines: Procurement under IBRD Loans, and IDA Credits dated May 2004, revised October 2006; and Guidelines: Selection and Employment of Consultants by the World Bank Borrowers dated May 2004, revised October 2006- as well as the provisions stipulated in the Financial Agreement. The project shall apply the Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 and the project's Anti-Comption Plan. Additional details are available in Annex 8. Monitoring and evaluation of outcomeshesults 44. Monitoring and evaluation will be of special significance. In light of the limited size of the budget compared to the needs, it is important to be able to document costs and outputs, and assess results. This will make it possible for the project to offer an important contribution in terms of guidance for future scaled-up operatiws as well as for other donor contributions, and more in general, for social policy both in DRC and in the many other countries faced by similar situations. Given the lack of evaluations of preventive efforts and the central role they should play in any program for street children, particular attention will go into the monitoring and assessment of this component, with matching funds being provided by outside sources.* 45. Monitoring. Day-to-day monitoring of project activities will be carried out by the PIU, in collaboration with MINAS decentralized representations including the Child Protection Offices (Bureaux d 'Interventions Sociales pour la Protection de 1'Enfance or BISPE) and the Provincial Divisions for Social Affairs (Divisions Provinciales des Affaires Sociales or DIVAS) in the targeted districts of Kinshasa. The PIU (with help from external consultants as needed) will set up a database to manage relationships with contracted suppliers of goods and services (including partner NGOs), and to keep track of activity implementation. This database should eventually be managed by the local representations of MINAS (DIVAS), who will therefore be associated during its development so as to ensure that data requirements are realistic. This will also allow MINAS staff to start familiarizing themselves with the discipline required for effective monitoring and with the system itself. 46. Three levels of monitoring will take place: (i) inputs will be regularly recorded by PIU staff in the project database and used to produce monthly reports; (ii) information on outputs (e.g., number of community meetings held, number of meals provided) and intermediate outcomes (e.g., number of girls assisted at Transit Centers or number of neighborhood Child Protection Committees set up) will be provided on a quarterly basis by the entities contracted and entered into the database by PIU staff (eventually by MINAS staff), but also checked through regular field visits and random rapid assessments of the performance of service providers; and (iii) beneficiary assessments and other research tools will be employed primarily by consultants to gauge the level of satisfaction of intended beneficiaries. 47. When data collection instruments and processes are sufficiently tested, MINAS' staff will be trained in their use and will begin to take over monitoring responsibilities in an incremental 'At present, contributions from the Understanding Children's Work Project (a UNICEF/ILO/WB effort fmanced by several bilateral donors) have been secured and funding from the Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) has ben provisionally approved. 24 manner. It is expected that progress will be uneven among different MINAS subdivisions and that refreshers and assistance will be needed from time to time. This will be the responsibility of the M&E Specialist of the PIU, who may be supported by consultants as the needs arise. Regular meetings will be held with MINAS staff and service providers to discuss progress and obstacles, exchange experiences and useful tips, and identify solutions to common problems. The PIM will contain precise instructions on the processes to follow for data reporting and dissemination, including standard data recording forms. It is expected that the National Statistics Institute will be involved in the design and implementation of an M&E system, as well as the Ministry of Plan (Directorate for the Social Sector) and NGO networks. 48. Evaluation. At the Concept Note review, the project team was instructed to look for outside sources to finance project evaluation, because the small size of the available budget could not support the cost of a rigorous exercise. The project team, therefore, submitted an application for a complementary TFESSD grant to develop a sound evaluation system that would accompany the project, so as to be able to draw lessons for scaling up activities beyond this initial effort and inform social policy both in DRC and in countries facing similar situations. The TFESSD proposal has been tentatively approved for $200,000. The entity identified to help set up and carry out evaluation functions is the tri-agency (UNICEF/ILO/WB) Understanding Children's Work (UCW) Project. UCW has accepted to co-finance the effort. Prevention: Evaluation efforts will focus on activities to prevent children from ending in the street, as this has been identified as the most crucial element to address "streetism" and also as a major gap in the current literature. While the evaluation design and strategy have not yet been finalized, it is expected that a pre- and post-test design will be used, sampling households in neighborhoods where prevention activities will behave been taking place and comparing them to similar households in neighborhoods where these activities will not behave not been taking place. lo A baseline survey will allow collection of information on variables that are considered predictors of risk to "streetism" and also measurement of knowledge and attitudes about children's rights and available assistance services to families or children under stress. Subsequent surveys will make it possible to determine the incremental impact of prevention activities. This evaluation design is expected to use not only a pre- and post-survey but also a combination of other methods (mixed method approach). Therefore, if any significant change will occur within the treatment group as a result of the project, specific components of the intervention that generate behavior change will be evaluated using qualitative process evaluation data. 0 Assistance: Evaluation of the assistance component is also expected to rely on a pre-test and post-test survey, which will be administered to street children identified through a chain-referral sample. Due to the high mobility of street children over time, the pre-test and post-test sample will be independent. Children will be asked in both the treatment and control neighborhoods if they utilize any social service provided by local NGOs, ILO, UNICEF and the World Bank initiated this inter-agency research project in December 2000. The Oslo Agenda for Action, Adopted at the 1997 International Conference on Child Labor, lays out global priorities in the fight against child labor, and guides the work of the UCW Project. Improved data and information and stronger international cooperation are among these priorities. lo It is recognized that it will not be possible to separate neighborhoods in terms of their exposure to radio programs. 25 FBOs or community-based organizations and, if yes, from which type of activity they specifically benefit (e.g., health care, education, training, family reunification, socio- economic integration, psychosocial support). A cost-benefit analysis of a sample of NGOs will also be conducted to determine which among the different service provision approaches are the most efficient and effective. Capacity building: It will be relatively straightforward to measure to extent to which MINAS's capacity to carry out its role as focal point for OVC has actually improved. The existence and actual regular use of a database by Ministry staff will be the main indicator. C. Sustainability 49. Project design will contribute to sustainability, in that it will (i) address the knowledge gap currently impeding effectiveness in service delivery to children; (ii) generate lessons learned for successful prevention activities; (iii) promote community ownership of the various interventions; (iv) build MINAS' capacity to coordinate, supervise and monitor street children interventions more effectively and also to leverage funds from other donors; and (v) help establish and apply norms and standards for the sector. A large number of donors are involved in DRC and willing to invest resources towards addressing the street children problem. A body of knowledge about what works would greatly encourage contributions, and the involvement of the World Bank would act as a catalyst. D. Critical risks and possible controversial aspects 50. The major risks to the project would be: (i) the selection of partner implementing organizations is not transparent; (ii) partner implementing organizations have insufficient capacity; (iii) prevention messages prove unacceptable to the intended audience; (iv) target groups may not want to use the services made available to them; (v) deterioration of the economy makes family reunification and sustainable economic reintegration close to unfeasible ; (vi) training of MINAS does not result in long-term capacity building because of staff turn-over and insufficient public resources. 51. The financial management risk, which is a combination of inherent and control risks, is essentially fiduciary, that is, the risk of misuse of Bank funds. To mitigate this risk, which is modest, a robust financial management system is proposed in Annex 7. To ensure this system continues to operate well during the project life, and based on the current FM risk rating, one on- site supervision mission will be carried out every year in addition to the desk review of IFRs, annual work program and budget, audit reports as well as timely advice to the Task Team on all FM issues. Hands-on support will also be provided to the project team as needed. 26 52. The Bank will work closely with members of the Social Protection Thematic Sub- group11,and particularly UNICEF, to limit reputational risks that may arise during the course of project implementation. The following table presents the project?s risks at the macro, sectoral and project specific levels. Risks Risk Mitigation Measures Risk Rating with Mitigation I. Country Specific i s h The Bank will continue to work closely with the UN Political instability and conflict resurgence and other bilateral partners to monitor the political H situation and adjust its program accordingly. The authorities have negotiated a new IMF PRGF program that was approved by the IMF?sBoard in December 2009. The program aims to enhance macroeconomic stability, fiscal space for priority spending. In close coordination with the IMF, the program will pursue its monitoring of the country?s Macroeconomic instability S adherence to the PRGF, including the macroeconomic stability and the fulfillment of other HIPC Completion triggers. Adherence to this program is a key trigger to release of about US$ 10 billion HlPC debt relief and possible additional MDRI. Deterioration of economic conditions resulting in reduced fiscal space and a See above S contraction of social spending 11. Sector Level Risks The Project will provide technical assistance and training to strengthen MINAS? capacity to effectively play its role as the national focal point for child protection. Three Ministries (MINAS, Gender, and Insufficient coordination Education) will have representatives in the project Steering Committee. The national OVC coordination between relevant Ministries committee is already operational and will be further S Weak governance and accountability, including MINAS will delegate project implementation MINAS? weak capacity and responsibilities to FSRDC, which has demonstrated lack of experience in capacity to effectively manage WB-supported L managing Bank-supported projects projects ?I The thematic group was established to improve aid effectiveness by enhancing coordination and collaboration in achieving agreed objectives and outputs. More specifically, the thematic group provides a consultation framework on sector strategies and operations, and contributes to the elaboration of the poverty reduction strategy. 27 The political will and institutional framework required to address OVC issues are in place. The Limited client engagement - national social protection strategy identified OVC, OVC and child protection including street children, as one of the most issues have received S vulnerable groups. In 2009, The Child Protection inadequate attention for a Law was promulgated and MINAS adopted the long time National Action Plan for OVC. A national OVC coordination committee meets regularly 1 . Operation Specific Risks 1 To project development objective Relationship between I An MOU will be signed by both parties clarifying . - strained I MINAS and FSRDC becomes respective roles andresponsibilities I M MINAS is unable to provide The project has a specific component on building needed guidance to the PIU MINAS capacity, including an institutional M and partner NGOs assessment. The development of norms and standards will facilitate MINAS' role Limited capacity of partner Partner implementing organizations will be selected implementing organizations competitively and only those with demonstrated (NGOs and FBOs) capacity to provide good quality services will be retained. However, capacity building opportunities M will be provided to others based on criteria to be articulated in the PIM Procurement procedures are An anti-corruption plan has been elaborated and will not respected, including be reflected in the,PIM. In particular, transparent contract awards to partner processes and eligibility criteria for all sub-grants, implementing organizations defined in the PIM, are a pre-condition for this M being marred by operation. A two-tier decision process (PIU and irregularities, Steering Committee) will increase transparency and objectivity. To component results The project does not achieve Key development partners and leaders in the field of results due to technical flaws child protection, including UNICEF, were consulted in design during project preparation. UNICEF will be an observer in the project Steering Committee and is L expected to provide technical advice throughout project implementation. Many of the community- Partner FBONGO will be supervised closely. The based volunteer networks PIM will have a comprehensive list of criteria for supported will not be selecting volunteers and detailed TORS for the operational due to poor community mobilization work. MINAS field-based L selection of volunteers and staff will also be involved. insufficient support of NGOFBO implementing partners Communities react negatively Communities will be involved in the design of social to social marketing messages marketing messages through the participation of L partner NGOs 28 Street children are not Activities will be designed and implemented by interested in using services experienced and competent NGOs and FBOs whose made available by the project services are already in high demand among street children. Ongoing monitoring of activities should L enable feedback on the relevance and quality of the activities, and allow corrections in annual plans. High turn-over of MINAS The institutional assessment will provide a sound staff hinders capacity basis to calibrate capacity building. The involvement building efforts of MINAS' top hierarchy in project implementation, including regular feed-back on progress, will M encourage their collaboration in targeting capacity- building. FSRDC fiduciary staff A dedicated accountant will be hired. In addition, becomes overwhelmed and is FSRDC is purchasing more sophisticated software to unable to provide high quality facilitate financial management. M performance I Overall Risk Rating S E. Loadcredit conditions and covenants 53. In addition to the standard effectiveness conditions, the following four conditions apply: (a) The Recipient, through MINAS, has adopted a Project Implementation Manual, including a Project Financial and Accounting Manual and an Anti-corruption Plan, in a form and substance satisfactory to the Association; (b) The Recipient has established the Project Steering Committee under terms of reference and composition satisfactory to the Association; (c) The Recipient, through MINAS, has caused the Social Fund of the Democratic Republic of DRC, to establish a Project Implementation Unit within the FSRDC as the entity in charge of the day-to-day management of the Project, under terms of reference satisfactory to the Association, and has appointed the following staff of the PIU under terms of reference and with qualifications satisfactory to the Association: a Project coordinator, an accountant, a procurement specialist, two child protection specialists, and a monitoring and evaluation specialist; (d) The Memorandum of Understanding between the Recipient, through the MINAS and the FSRDC has been executed and delivered under terms satisfactory to the Association. 54. The following FM covenants apply: (a) The Recipient shall establish not later than three months following the effectiveness Date and thereafter maintain or cause to be maintained a financial management system (including related staff, software and an internal auditor) in accordance with the provisions of Section 4.09 of the General Conditions. 29 (b) The Recipient shall prepare and furnish to the Association as part of the Project Report not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the Association. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 4.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made under the Project. The audited Financial Statements for each such period shall be furnished to the Association not later than six months after the end of such period. (d) The Recipient shall by not later than three months following the effectiveness date, or any other later date agreed with the Association, contract an external auditor under terms and conditions and with qualifications and experience satisfactory to the Association. IV. APPRAISAL SUMMARY A. Economic and financial analyses 55. Economic analysis is extremely difficult in the present context because of lack of data in DRC and difficult comparisons with the few countries for which data are available. This is especially the case for preventive activities, as a cost-benefit analysis would require data (detailed below) that are normally not available even in countries with far more developed statistical systems. 0 On the benefit side one would need to consider: (a) increase in lifetime earnings due to increased education of (former) street children; (b) value of improved health status both in terms ofincreased productivity and in terms of reduction of cost of care; (c) reduced cost of police and judiciary activity involving street children (arrests, jailing, trials, imprisonment); (d) reduced property loss due to street children's activities (theft, vandalism); (e) reduction in health costs borne by the children themselves (e.g., as consequence of beatings, sexual violence, pregnancies, HIV/AIDS) and by those aggressed by the children; (0 reduction in profit losses incurred by businesses as customers stay away if street children are around; and (g) reduction in the spread of HIV/AIDS. 0 On the cost side, beside the cost of the program, one should add the earnings by street children (e.g., most street girls engage in prostitution and would therefore lose those earnings if they got off the streets). 56. Lack of data does not even allow computing returns to education, and reliable estimates of the other costs would require substantial investment. Moreover, the project aims at reducing or eliminating conditions of extreme abuse and of substantive violation of human rights whose 30 monetary quantification would obviously be arbitrary to the extreme. Therefore, a least-cost approach will be used, supported by the establishment of benchmarks for the unit costs of complex services and the use of competitive bidding procedures. 57. It is worth noting that projects of this kind have proved to offer very high rates of returns elsewhere. For example, a cost-benefit analysis for a comprehensive prevention project in the USA found the program to be a hugely profitable social investment, returning US$7 of benefit for each dollar invested over a 20 year period.12 B. Technical 58. Project design is based on international best practice and has been adapted to DRC conditions to make it technically sound. The following features are worth pointing out. 59. Comprehensive approach to the street children problem: Because of the emotional response to the sight of street children, interventions to deal with the problem tend to focus on providing assistance to children already in the street. This has been the case worldwide, and DRC is no exception. The proposed project makes a concerted effort to include prevention, which is considerably cheaper than assistance and obviously results in much less suffering for the children. It is also the only sustainable approach, and has the advantage of putting families and communities in the center stage, encouraging them to take greater responsibility for the well- being of their children. Overall, the project adopts a comprehensive approach that seeks to stem the flow of children to the streets while easing the suffering of those already in the street and helping them reintegrate into mainstream society. 60. Synergy with other operations: The proposed project aims at finding cost-effective approaches to deal with the problem in ways that foster the respect of children's rights, but are also realistic and sustainable. By focusing on prevention, the number of children ending up in the street should diminish. At the same time, prevention requires sensitization to the rights of children. For example, field experience suggests that children who are not in school have a greater risk of ending up in the streets, so prevention will stress the importance of keeping children in school. This will contribute to the achievement of the education MDG and complement efforts undertaken in the context of the IDA-financed education project. In the same vein, street children will be given the opportunit to enroll in fast-track elementary classes with a diploma delivered in three years instead of six. IT 61. Strengthening of civil society and public-private partnership. The project will rely heavily on private entities to deliver services. This is in line with trends throughout the continent, where the Bank has been encouraging ministries in charge of social protection to limit their role to guidance, coordination and monitoring, leaving service delivery to NGOs and FBOs that are generally better equipped to provide needed services. When they present a clear comparative advance, government agencies will be recruited to deliver services. Component C l2 The program evaluated is the Perry Preschool Project in Ypsilanti, Michigan. See: Moran, Ricardo, and Claudio de Moura Castro, 1997. l 3 Evidence suggests that success rates at the end of fast-track courses are better than those at the end of the regular classes. 31 will finance activities to help the Ministry acquire the instruments and competences required to carry out its key role, but also provide capacity building opportunities for service providers. In addition, Component A will include the organization, training and support of community-based organizations, thus further contributing to strengthening civil society. C. Fiduciary 62. Financial Management. The financial management (FM) arrangements for the project have been designed with consideration for the country's post-conflict situation while taking into account also OPBP 10.02, which covers overall FM Bank policies and procedures. The findings of the Country Financial Accountability Assessment (CFAA) and the Public Expenditure and Financial Accountability (PEFA) exercises as well as the FM capacity assessment of MINAS conducted during project preparation revealed some weaknesses in financial management and procurement. As a result, at the time of appraisal the Bank could not rely on the public expenditure framework for the purpose of this project. It was therefore agreed to outsource the fiduciary aspects of the project to FSRDC, which is very familiar with the Bank FM requirements and procedures. FSRDC will be the main counterpart of the Bank and focal point for all project fiduciary aspects. Financial management will follow the same approach as the implementation arrangements in place for the other projects managed by FSRDC, Le., the Additional Financing to the Emergency Social Action Project (known as PASU) and the SPF grant for labor-intensive works in the Katanga province. These are considered appropriate by IDA, having been improved through the implementation of the action plans prepared by the government following the midterm review of PASU and various FM implementation support missions. The residual FM risk after mitigation measures has been rated Moderate taking into account the current FM arrangements of the FSRDC. 63. Implementation of three additional projects - the Additional Financing of PASU, the SPF Grant and the present project-- will translate into an increased workload for FSRDC, which in turn will require more sophisticated control systems and adequate staff, an effective internal audit function, an updated PIM, an integrated information system, and a multi-project software. Appropriate additional FM arrangements (e.g., acquisition of a multi-project and multi-site accounting software, and recruitment of an additional accountant and an additional internal have a ~ d i t o r ' ~ ) been agreed with the government and FSRDC. 64. Interim Financial Reports (IFR) will be prepared every quarter in a format and content agreed with IDA and submitted to the Bank 45 days after the end of the quarter. The General Auditor (Cow des Comptes), having been assessed as weak, a qualified, experienced, and independent external auditor will be recruited on approved terms of reference. The audit period will be on annual basis and reports will be submitted to IDA and to the Cow des Comptes six months after the end of each fiscal year. 65. Upon Grant effectiveness, transaction-based disbursements (replenishment and reimbursement) will be used during the first months of project implementation. Thereafter, the option to disburse against submission of IFR will be considered subject to the quality and l4 The FM team of FSRDC at the central level is presently composed of a qualified Financial Director, a management accountant, a treasurer and two accountants. 32 timeliness of IFR submitted to the Bank and the overall financial management arrangement as assessed in due course. The other options of disbursing the funds will also be available. A Designated Account denominated in US Dollars will be opened in a commercial bank on terms and conditions acceptable to IDA. An initial deposit equivalent to six-month expenditures forecast will be released by IDA at the request of the project (FRSDC) upon effectiveness. Payments to partner implementing organizations, services providers and suppliers will be made as specified in the respective contracts and MOUs. 66. FM supervision will focus on the status of financial management system to assess whether the system continues to operate well and provide support as needed. 67. Procurement. Given its satisfactory performance to date, the FSRDC will be the procurement agent for the Street Children Project until the new institutions recommended by the new national procurement law are in place; at this time, a decision will be taken on the most appropriate approach to be used. D. Social 68. Especially when they group together, street children tend to be perceived as threats to property, to physical integrity, or to strongly held values of other members of the community. Their mere presence has a demoralizing effect on the population, both because of the risks they represent and because they symbolize society's failure. Through its activities, the project will not only contribute to better social outcomes for children-at-risk and street children, but also to improved living conditions for the Kinshasa population at large. Overall, the project is expected to have only positive social outcomes. E. Environment 69. The project has been rated as a Category C as no environmental impacts are expected from the implementation of project activities. F. Safeguard policies 70. This project does not trigger any Bank safeguards as detailed below. Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.0 1) [I [XI Natural Habitats (OP/BP 4.04) [I [XI Pest Management (OP 4.09) [I [XI Physical Cultural Resources (OP/BP 4.1 1) [I [XI Involuntary Resettlement (OP/BP 4.12) [I [XI Indigenous Peoples (OP/BP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety of Dams (OP/BP 4.37) [I [XI Projects in Disputed Areas (OP/BP 7.60) [I [XI Projects on International Waterways (OP/BP 7.50) [I [XI 33 G. Policy Exceptions and Readiness 7 1. No policy exceptions are sought. 72. The Government counterpart, UNICEF and other important street children stakeholders have been actively involved in the preparation of the project. The Ministry has agreed to the principle of delegating project implementation responsibility to FSRDC, given the agency's experience and good track record in implementing World Bank-supported projects. The status of the project's non-standard effectiveness conditions are as follows: The Project Implementation Manual has been drafted and the manual is expected to be finalized and adopted by MINAS and FSRDC before, or shortly after, the Board date. FSRDC's recently updated Project Financial and Accounting Manual will be modified slightly to integrate this project. It is expected that this work will be completed and approved satisfactory by IDA before the Board date. The Anti- corruption Plan has already been drafted and is expected to be approved by IDA before the Board date. As MINAS is highly committed to set up the Project Steering Committee, it is anticipated that the PSC will be established shortly after the Board date. There should not be any delays in the recruitment of project staff. The expenditures linked to the recruitment process will be eligible for retroactive disbursement and the PIM includes the TORS of all the professional staff. The preparation of a Memorandum of Understanding between the Recipient through MINAS and FSRDC will start soon and is expected to be finalized and signed shortly after the Board date. 34 Annex 1: Country and Sector or Program Background DEMOCRATIC REPUBLIC OF CONGO: Street Children Country Background 1. Following a decade of conflict, the Democratic Republic of Congo (DRC) has experienced important political and economic gains in the past nine years. Since 2007, a broad coalition government has implemented policies following the five priorities underpinning the Poverty Reduction Strategy Paper (PRSP). These include good governance and peace consolidation, continued macro-economic stability and growth, access to social services, fight against HIV/AIDS, and the promotion of community dynamics. The result was a net improvement in the economy growth rate, assessed at 6.7% per annum between 2003 and 2008. 2. On the other hand, the country's social situation remains fragile. In 2007, 70 to 80 percent of the population lived below the poverty line. DRC is ranked 176 out of 182 countries in the 2009 Human Development Index, and the 2008 financial crisis has undoubtedly aggravated the situation. In addition to impoverishment, large-scale displacements, violence and human rights abuses have caused tremendous suffering and deterioration of the social fabric, overburdening or breaking up families and traditional social safety nets. Perhaps the most heart- rending manifestation of this social disruption is the growing number of street children in the country's urban centers. DRC's and Kinshasa's Street Children 3. In 2006, there were an estimated 40,000 street children in DRC, including about 14,000 in Kinshasa," though many development actors believe this is an underestimate. About 26 percent of the street children are girls. Some organizations report that there are more than 500 new cases of street children per month in Kinshasa. 4. The causes of "streetism" are multiple. Some are related to poverty: the incapacity of parents and other caretakers to adequately feed their children and to pay for school fees or health care may push some parents to send their children on the street, or may be an incentive for the children themselves to try their luck somewhere else. Many children also grow up in adverse home situations, without nurturing, guidance and support from parents or caretakers, and in some cases with outright abuse and neglect, so that they leave the household in self-defense. Many of the street children have been rejected from their parental or caretakers' households after accusations of witchcraft. Orphans appear to be particularly at risk, as formal adoption is rare and step-parents are generally not keen on caring for someone else's child, which may lead to rejecting the orphans, often after witchcraft accusations. 5. Characteristics. Concerning Kinshasa's street children, findings from a World Bank qualitative survey (2009) and a UNICEF study (2006) include: ''UNICEF, 2006: Recensement des enfants de la rue de la villeprovince de Kinshasa. 35 0 Age: Most street children were between 12 and 18 years old (69 percent), 26 percent were between 6 and 11 years old, and five percent younger than six. Duration in the street: The majority had lived more than one year in the street (62 percent out of which 15 percent had lived in the streets for four years, 19 percent for three years, and 19 percent for two years), 21 percent for about one year, and only 17 percent for less than one year. Family status: Eighty percent were orphans or came from broken families and only 13 percent had parents who were still married to each other. In particular, almost 26 percent were double orphans, 17 percent were paternal orphans and 14 percent maternal orphans. Reported reasonsfor being in the street: The main reasons for the child breaking with the family were relational problems with a parent or a step-parent (29 percent), followed by the death of a parent (20 percent) and parental financial problems (19 percents). Poverty appeared to be the main reason for leaving the household especially for children whose parents were still married. 0 Family background: Most of the street children in Kinshasa came from poor families living in Kinshasa Almost 40 percent of the fathers worked in the formal sector (government, international organizations, public or private enterprises). Only one in five fathers was jobless or retired. On the other hand, one third of the mothers were self- employed traders, 30 percent were jobless and 16 percent worked as domestic workers. Many families needed assistance from the extended family or others. The family of a street child had on average seven members, and the street child was often the second or third oldest of the children. 0 School attendance: 73 percent of the street children had attended primary school, but many had not graduated, and only 13 percent had attended secondary school. The majority (58 percent) reported that the main reason for abandoning school was their family's inability to pay school fees. Almost 20 percent of the street children attended school at the time of the survey, most of them (64 percent) in closed centers. As for parents, most of them had only limited education, and one out of three mothers was illiterate. Family contact and reunijkation: 42 percent of the children interviewed kept some contact, albeit very limited, with their families. The great majority (77 percent) of the children wanted to leave the street and return to their families, but only one fourth had ever received help for family reunification. The remaining 23 percent had tried, some several times, but had returned back to the street. 0 Childparents: Among children older than eleven, 16 percent had their own children, and 59 percent of these were girls. Over one third of the child parents (35 percent) were bringing up their children in the street, and only four percent had entrusted them to an institution. The rest were relying primarily on their families to take care of their children. 36 Child work: Only 3 percent of the children interviewed in Kinshasa had benefited from vocational training, while 26 percent were involved in various types of work (e.g., begging, carrying loads, petty trading). Nine out of ten girls were involved in prostitution. Police arrests and abuse: 30 percent of the sampled children had been arrested by the police, less than half (42 percent) due to a crime or misdemeanor and the others during police raids. More than half (54 percent) had been reportedly badly treated by the police. Only four percent of the arrested children had been referred to a judge. 6. Street girls' lives. A 2008 survey of street girls in Kinshasa by MDM found that 90 percent of were selling sex.16 Almost half of the girls reported to be forced to work as prostitutes, and this since they were around 12 years old. Seven out of ten girls had been raped, 76 percent of them in the form of gang rapes. By undergoing a very violent ritual, the girls were initiated ("baptized") into to the street. Three fourths had already had a sexual relation before they entered the streets, often in the form of a rape (40 percent of the cases). There was often a mix of reasons why the girls lived in the street, including: abuse (65 percent), persuaded by friends (45 percent), poverty (44 percent), and witchcraft accusations (4 1 percent). Support provided to street children 7. The majority of street children in Kinshasa makes a living from the street and does not benefit from support from either private or public actors. According to the 2006 UNICEF survey, 55 percent of the street children in Kinshasa had never been to any open or closed child center. 8. Most of the entities offering services for street children are FBOs and NGOs. DRC's public agencies provide minimal support." USAID is the most important donor for interventions targeting orphans and other vulnerable children (OVC) and funds an important part of UNICEF's and Save the Children's (Save) support to street children in different urban areas. UNICEF has a national OVC program, including support to establish a legal framework for child protection, advocacy, government capacity building, and service delivery (health, education). The majority of the international NGOs involved with street children interventions are members of a network called COPERF. The most important actors in Kinshasa are Save the Children, Africare, MDM, and the International Catholic Office for Children (BICE). They implement their projects through their local NGO partners, which are mostly members of the local NGO network known as REJEER.'* REJEER has more than 100 partner members -whose size and professionalism l6 Mddecins du Monde, 2009 : "La rue, c'est la chance? )) - Enqugte sur I'exploitation et les violences sexuelles des jeunesjlles des rues de Kinshasa, mimeo. that " This was confirmed by UNICEF's 2009 Rapid Assessment, Analysis and Action Planning (W) found that in 2007, 320 OVC actors in DRC supported only about 287,000 out of the estimated 8.2 million OVCs, including street children. The vast majority (94 percent) of the organizations providing support to OVC are civil society actors. FBOs are very active; although they comprise only 19 percent of the OVC actors, they support almost one third of the beneficiaries. Many of the NGOs are very small organizations and support only a small number of children (e.g., two thirds of the actors support only six percent of the beneficiaries) '*REJEER: Rkseau des Educateurs des Enfants et Jeunes de la Rue (Network of street children and youth educators). 37 vary significantly- and a total of 2,370 social workers. A third umbrella organization (known as CATSR) regroups about 70 NGOs, the majority of which are active outside the capital. 9. Most social workers of local NGOs and public actors have inadequate skills and training. At present DRC has identified norms but has still to develop and apply standards for social work (case management) and workers. The only national centre for training social workers (Centre afiicain de formation supkrieure des e`ducateurs sociaux or CAFES) is private and has very limited capacity, but receives support from the Belgian cooperation. Recently UNICEF started to support the development of provincial pools of trainers in social work. 10. Relatively little attention has been given to preventive measures, allowing violations of children's rights and impunity of perpetrators to continue. Although several laws and codes related to children's protection and fundamental rights have been adopted by the Government, their application, or even just their dissemination, is still minimal. The great majority of perpetrators of sexual violence or of accusations of witchcraft are not punished although the recently adopted Child Protection Law (2009) forbids sexual violence and accusations of witchcraft. Though some actors support local community-based prevention activities in Kinshasa, approaches vary considerably between actors and activities tend to be thinly spread (e.g., one child protection committee covering a commune of over 500,000 people). A lack of rigorous evaluations makes it difficult to draw lessons from these experiences. 11. There are few good practice interventions and very limited expertise in the provision of psychosocial assistance. Several studies, including the 2009 World Bank assessment of street children actors and interventions in Kinshasa, found that the support provided is generally limited to one or two activities, such as accommodation (in closed or open centers), family reintegration or social assistance. Few actors have adopted a holistic approach and certain services appear to be particularly under-resourced (e.g., psychosocial assistance). Moreover, to date very few good practice interventions have been identified in Kinshasa. A particular gap concerns vocational training. 12. Limited support to pregnant street girls, young street mothers and their children. In Kinshasa, MDM is the only international NGO that concentrates on improving health services to street children, including reproductive health, and that focuses on street girls in particular, including pregnant girls and young mothers. On the other hand, some centers are known for expelling girls who are visibly pregnant as they are considered a bad example. To make things worse, family reunification for girls who have become mothers is reported to be particularly difficult given the extra burden represented by the girls' children. 13. Experiences in remedial education are promising. Children from the centers of the newly developed remedial education system in DRC have achieved better results in the national tests for a primary school certificate than children from the "regular" primary school^.'^ In 2008, there were 91 active remedial education centers in Kinshasa (80 run by NGOs and FBOs, l9 The system has been developed by several stakeholders including the Ministry of Social Affairs, the Ministry of Primary and Secondary Education, UNICEF, the Belgian Development Cooperation and some international NGOs. The centers accept children between nine and 14 years old who are school drop-outs or who have never been to school. 38 and 11 by MINAS). The children who pass the national test for primary education2' obtain a certificate that allows them to continue with secondary education, vocational training or technical and professional education, so passing the test is important for the future of the child. Given the large number of school drop-outs, and of children who never make it to school to begin with, there is widespread agreement that the remedial education system now active in Kinshasa should be strengthened and expanded throughout the country. 14. There is limited support to children in conflict with the law. The recent World Bank assessment found that very few of the children and youth who are in conflict with the law have access to legal and other services. When children and youth are being arrested, there is very little follow-up by relevant authorities. The police, judges and lawyers are only partially aware of children's rights, and children are often put in prison cells together with adults - or in special centers that lack qualified staff as well as a minimum of services, such as education and health, and often even food. Government support 15. Both the political will and institutional framework required to address the issue of street children are in place. In 2004, MINAS adopted a national social protection strategy for vulnerable groups that identified OVC, including street children, as one of the country's most vulnerable groups and highlighted several key challenges to the protection of street children. In 2009, MINAS adopted the National Action Plan for Orphans and Vulnerable Children. The recent promulgation of a Child Protection Law illustrates the political will to respect and promote children's rights in accordance with international law. Other Ministries such as the Ministry of Gender, Family and Children, the Ministry of Public Health, the Ministry of Youth and Sports, the Ministry of Education, the Ministry of Interior, the Ministry of Security, the Ministry of Labor and Social Protection, as well as the Ministry of Justice and Human Rights have various degrees of responsibility in dealing with the issue. Numerous coordination bodies are in place, including a UNICEF-supported OVC coordination committee (locally known as Commission mixte). In addition, a national multisectoral coordination committee for the protection of OVC, that will comprise relevant Ministries, bi- and multilateral organizations, and other relevant public and private actors, is currently being set up. 16. The national leadership needs to be strengthened. Due to its limited resources, present MINAS is at present unable to play its role as a national focal point for the protection of OVC, including street children. MINAS is also unable to guide and coordinate OVC interventions carried out by other Ministries (in particular Justice; Gender, Family and Children; Public Health; Primary and Secondary Education; and Youth and Sports) and other public and private actors. The establishment of the National Multisectoral Coordination Committee for the Protection of OVC (see above), chaired by MINAS (DISPE), will represent an important step toward improving MINAS coordination capacity. 17. MINAS is one of the least supported Ministries and suffers from extremely limited financial and human resources. In 2008, for example, MINAS proposed budget of US$ 30 million was approved by the Parliament but the funds were never allocated. During the same 2o Test national defin d'e`tudesprimaires or TENAPEF. 39 year, the operating budget for MINAS' Studies and Planning Department was only US$ 50. MINAS' staff, both at national and provincial level, is often beyond retirement age, not specialized in social work and with limited practical experience. Between 35 to 40 percent of MINAS' staff do not receive a regular Government salary as they do not have the required employment status (they are not "mCcanisCs"). Many of its services at the local level have overlapping activities and are overstaffed (but with inappropriate staff profiles). These factors, as well as high staff turn-over, contribute to increase the challenges of institutional development. Moreover, the Ministry's important physical infrastructure related to child protection is often poorly managed and in bad repair. *' 18. Progress has been made in developing national policies and actions plans related to OVC and street children but their implementation has yet to start in earnest. The national social protection strategy for vulnerable groups was developed in 2004 and should be updated. In the meantime, a National Action Plan for OVC was produced in 2009 and a draft decree was prepared in December 2009 on Guidelines for the Protection of Children without Family Care (Lignes directrices pour la protection des enfants en rupture familiale). These guidelines are the result of a highly participatory work carried out with UNICEF support. Although the decree has identified norms, standards consistent with the guidelines need to be developed, disseminated and applied. In addition, a comprehensive system to track, monitor and evaluate different OVC interventions and actors has not been established. So far, the only cartography of OVC interventions in DRC concerns exclusively children affected by HIV/AID S. *'MINAS's infrastructure for service delivery includes 28Social Promotion Centers and a number of specialized centers. 40 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies DEMOCRATIC REPUBLIC OF CONGO: Street Children Implementation Development Financier Project Progress (IP) Objective (DO) World Bank Education Sector Project. The overall project development objective is to prevent further deterioration in the delivery of essential services for primary education and prepare the Mu Mu ground for a sustainable development and financing of the sector that will facilitate donor coordination and future transition to a sector wide program. World Bank Health Sector Rehabilitation Support Project. The project development objective is to ensure that the target population MS MS of selected health zones has access to, and use, a well-defined package of quality essential health services. World Bank Emergency Social Action Project. The objective of the project is to improve access of the poor to social and economic services and increase the availability and management of S S development resources at the community level. UNICEF - Orphans and Vulnerable Children Program. The program supports the establishment of a legal framework for child n.a. n.a. protection; advocacy; government capacity building; and service delivery (health, education) for OVCs. Save the Street Children Project. Social and legal child protection, Children UK including support to: (i) education; (ii) children in conflict with the law: training of judges, magistrates and staff of the Ministry of Justice and visits to children who are under arrest; n.a. n.a. (iii) community-based protection network; (iv) training of local evangelic pastors to advocate against accusations of witchcraft; and capacity building of local partners. Africare Street Children in Kinshasa Project. Services for street children include: informallremedial education, vocational training, and local community forums for child protection n.a. n.a, (activities were reduced after the end of the two-year support from the Gates Foundation in 2009). MDM Health Improvement for Street Children Project. Focuses on improving health services to street children, including reproductive health. Project has street girls, including pregnant girls and young mothers, as its particular focus n.a. n.a. group. Supports a semi-open centre for street girls in Kinshasa providing health services, psychosocial assistance, some literacy training, as well as shelter to a small number of girls. Also supports a mobile night team. BICE Children in Conflict with the Law Project. Specialized in supporting children and youth in conflict with the law in Kinshasa, including: follow-up of arrested children and training of police, lawyers and judges; has built children cells n.a. n.a. in the Kinshasa prison and in some police stations; has a small centre in Kinshasa that focuses on family reintegration and accommodates children and youth for up to six months. 41 Annex 3: Results Monitoring Framework DEMOCRATIC REPUBLIC OF CONGO: Street Children I PDO Project Outcome Indicators Use of Project Outcome Information To improve the delivery Prevention To evaluate the performance of mechanisms of 1 . Child Protection Committees that the project in increasing access to prevention and support are active (%)22 basic services for the targeted services for street 2. Target households who recall group children, primarily in correctly key messages about children rights from the campaigns To advocate for more finding to Kinshasa. financed under the project (%) replicate the project at the 3 , Children at-risk provided with national level education or remedial education opportunities financed under the project (number per year, disaggregated by sex) SUDDOI~ Services 4. Street children offered access to comprehensive support services23 (number, disaggregated by sex) 5 . Street children having restored24 relationships with their families (number, disaggregated by sex) 6 . Direct Project Beneficiaries (number) - % female (CORE) broken down by (i) children supportedper type o services, (ii) f Community leaders and authorities sensitized', (iii) NGOs and government workers trained I Intermediate Results Intermediate Results Indicators Use of Intermediate Results Monitoring Component A: Track implementation progress 7. Radio broadcasts on child Prevention of prevention services protection (number per year) 8. Child Protection Committees (i) Increased availability of established (number) (ii) and/or information related to strengthened (number) child protection law and 9. Community events on children's rights and parental responsibility 22 Active is defined relatively to the mandate of the child protection committees based on: (i) the number of technical meetings held per month; (ii) the percentage of child protection cases that are successfully addressed per month; and (iii) the understanding of laws pertaining to child protection. 23 Comprehensivesupport services are defined as education, health, shelter (may be temporary), psychosocial support, vocational training and family reunification. 24 Defined as having given or received at least two visits to/fiom relatives per year. 25 These may include neighborhood chiefs, religious authorities (pastors, priests), school principals, presidents of women associations and other community-based organizations, and government representatives. 42 ~ :hildren rights (e.g., interactive theatre) (number per year) Component B: Support 10. Street children using at least one to street children To take appropriate corrective service offered by transit centers measures during project financed under the project [ncreased support implementation (number, disaggregated by sex) services available to 11. Street children benefitting from (i) street children skills training courses; and (ii) formal education (number per year, disaggregated by sex) 12. NGOsFBOs supported by the project achieving at least 90% of the agreed performance indicators (%I Component C: 13, National standards for service Capacity building To use for fundraising efforts to delivery to street children secure additional financing to developed and validated (yesho) Strengthened capacity of replicate or expand the project 14. A national multisectoral the Ministry and other coordination committee for the The strengthening of the national key actors to coordinate protection of OVC is established leadership of the protection of and monitor services and operational OVC is an asset for an effective provided 15. A database established and coordination of OVC managed by DISPE with the interventions. support of DEP to monitor and coordinate ongoing children rights interventions as well as to capture the number of beneficiaries per category of service is established (yesho) To compare and share different 16. Annual evaluation of the approaches to prevention and effectiveness and costs of different support and document best prevention and support services practices and lessons learned (yesho) 43 3 3 3 JI > N 3 3 3 3 > N :I 3 2 3 3 n r 3 n 9 3 3 3 9 n Q) 5; 8 .3 SR zcd m 0 0 3 n I 3 vl x) 0 0 3 * vl ? 0 0 vl c\1 m 4 9 0. . n 3 N a 8 rw 0 3 0 0 P \o v, 3 $1 3 W 3 0 0 P v, n $1 $1 v -3 3 P 2 3 d- n .rl W 3 0 P 2 0 72 W .d o\ 3 P N 0 l- 3 3 P 3 0 n v, W .d 4 s b )s: .3 W .3 ? s b v, 3 W .r( ? 8 00 d ? ? 8 ? E d 00 b 3 n .r( w .3 E M w M w 2 E m 3 1. Addressing challenges asso'ciated with data collection: The project will face two critical challenges associated with data collection: (i) the paucity of streamlined baseline data available in DRC; and (ii) the difficulties associated with documenting project impact on a group as mobile and heterogeneous as street children. 2. In recognition of this challenge, monitoring and evaluation will be of special significance as detailed on pages 24 to 25 of this document. More specifically: (i) Day-to-day monitoring of project activities will be carried out by the PIU, in collaboration with MINAS decentralized representations including the Child Protection Offices (Bureaux d'Interventions Sociales pour la Protection de 1'Enfance or BISPE) and the Provincial Divisions for Social Affairs (Divisions Provinciales des Affaires Sociales or DIVAS) in the targeted districts of Kinshasa. The PIU (with help from external consultants as needed) will set up a database to manage relationships with contracted suppliers of goods and services (including partner NGOs), and to keep track of activity implementation. This database should eventually be managed by the local representations of MINAS (DIVAS), who will therefore be associated during its development so as to ensure that data requirements are realistic. This will also allow MINAS staff to start familiarizing themselves with the discipline required for effective monitoring and with the system itself. The database will be established within year one of the project, and will be used throughout project implementation. (ii) Three levels of monitoring will take place: (i) inputs will be regularly recorded by PIU staff in the project database and used to produce monthly reports; (ii) information on outputs (e.g., number of community meetings held, number of meals provided) and intermediate outcomes (e.g., number of girls assisted at Transit Centers or number of neighborhood Child Protection Committees set up) will be provided on a quarterly basis by the entities contracted and entered into the database by PIU staff (eventually by MINAS staff), but also checked through regular field visits and random rapid assessments of the performance of service providers; and (iii) beneficiary assessments and other research tools will be employed primarily by consultants to gauge the level of satisfaction of intended beneficiaries. (iii)Regular meetings will be held with MINAS staff and service providers to discuss progress and obstacles, exchange experiences and usehl tips, and identify solutions to common problems. The PIM will contain precise instructions on the processes to follow for data reporting and dissemination, including standard data recording forms. It is expected that the National Statistics Institute will be involved in the design and implementation of a M&E system, as well as the Ministry of Plan (Directorate for the Social Sector) and NGO networks. 50 Annex 4: Detailed Project Description DEMOCRATIC REPUBLIC OF CONGO: Street Children Definition of Target Population 1. For the purpose of this project, street children will be defined as: children who are under the age of 18, loitering and living in the street, who are no longer under the authority and responsibility of an adult, and who make a living on the street using all means ne~essary.~' In particular, the children eligible for services provided under component B (see below) will fall within one of the categories below: 0 Children of the street, having no home but the street. The family may have abandoned them or they may have no family members left alive. Such children have to struggle for survival and might move from friend to friend, or live in shelters such as abandoned buildings. Children on the street, visiting their family with some regularity. They might even return most nights to sleep at home, but spend most days and some nights on the street because of poverty, overcrowding, and sexual, physical or verbal abuse at home. Children in a Transit Center. They may have come to the Transit Center after having spent time in the street, or come to it directly upon abandoning home or being ejected from it. 2. Concerning Component A, on prevention, the ultimate beneficiary of project activities will be children at risk of ending up in the streets. Direct beneficiaries will be their families and their communities. While it is impossible to identify with certainty the children at risk, recent research suggests that street children come disproportionally from households where there is a step-parent (because or death or divorce) or where there is only one parent (because of death, abandonment or divorce), with poverty often increasing the risks. Therefore, it is expected that these categories of families will be specifically targeted. 3. As to Component C, capacity building will benefit directly MINAS personnel, but will also include other government actors (e.g., teachers, police) and agencies (e.g., Ministry of Gender) as well as NGOs and FBOs. Components 4. Project components were determined on the basis of lessons drawn from international experience, research recently conducted in DRC (see Annex 12) and extensive consultation with local stakeholders including the NGO network of street children and youth educators (REJEER), key international NGOs (e.g., MCdecins du Monde, Save the Children, Africare), government 30 It should be noted that a number of Congolese stakeholders prefer referring to "children without family bonds"(enfants en rupture familiale) or "children considered street children" (enfants dits de la rue) as the expression "street children" is considered to have a bad connotation. 51 and UNICEF. UNICEF, who is the lead technical expert and main child protection actor in DRC, participated actively in project preparation. Two studies were carried out during the preparation: (i) a 2009 assessment of street children actors and interventions in Kinshasa, and (ii) a qualitative survey of street children in Kinshasa involving the participation of REJEER. 5. A priori considerations and some sparse but impressive empirical evidence support the view held by most local stakeholders that only preventive approaches offer realistic hope of overcoming the street-children problem in countries such as DRC where it has reached formidable levels. On the other hand, there are also sound reasons to invest in activities targeting directly the many children now living and working in the streets. Their miserable lives make a mockery of the fine ideals of the 1989 UN-Convention on the Rights of the Child, and their suffering calls for efforts to afford them protection and help to a better future. 6. Of the three components proposed below, there was general agreement among the different stakeholders that prevention is the most important. However, in light of the higher per capita cost of providing services to children already in the street, of the humanitarian imperative to offer immediate assistance to the target group and of the complementarity of other IDA- financed operations with prevention activities (especially the education project), a larger portion of the budget will be allocated to "remedial" actions. Component A: Prevention ($3.1 million) 7. The approach adopted by this component will aim at tackling the most common proximate causes of children being in the streets - family break-up and the subsequent abandonment, mistreatment or severe neglect of orphans and step-children; children's accusations of witchcraft; lack of parental responsibility or simply ignorance of children's needs and rights. Efforts will be concentrated on the four communes of the greater Kinshasa metropolitan area (out of 24) that are most often the point of origin for street children (the so- called "supplying zones"): Masina, Kimbanseke, Limete and Bumbu. These communes are characterized by a strong population density, insufficient access to public schools and other basic social services, high levels of unemployment and sub-employment (Le., low-paying occasional work), high crime rates, and relatively easy access to the better-off city center either because of proximity (Bumbu) or because of the railway. In 2004, their total population was estimated at about 2.1 million by the National Institute of Statistics. Such a seemingly narrow focus is justified by the labor-intensive nature of the most promising approach, which requires face-to- face communication with community leaders and at-risk households. When activities may cover also other areas at relatively low cost (e.g., radio programs), coverage will be expanded to the rest of the capital and beyond. 8. Prevention activities will be primarily predicated on social marketing principles and draw on lessons from experience with "behavior change communication" (BCC). Such an approach has been used to effect desirable behavioral changes primarily related to hygiene (e.g., hand washing), environment (e.g., recycling) and health (e.g., healthy eating habits, condom use). Experiences with BCC to alter deviant behavior (e.g., domestic and sexual violence, youth violence) are far more limited and have generally been poorly documented, but hold promise. In addition, several stakeholders have noticed that dropping out of school is often the precursor of 52 ending up in the street, and many carry out activities aimed at keeping children in school as part of their prevention strategy. The project will therefore support these efforts (see below). 9. In line with common practice in prevention work with a strong emphasis on BCC, such as it is done with HIV/AIDS prevention, a variety of mutually reinforcing activities will be used to familiarize the target population and the community at large with topics such as child rights and protection, parental responsibility, HIV/AIDS awareness and prevention, human rights and ~~ women's rights in p a r t i c ~ l a r ,and the challenges of witchcraft. Dissemination of the Child Protection Law, approved in 2009, will also be supported as it contains a comprehensive set of provisions that, if applied, should result in a greatly diminished number of children living in the streets.32 While a number of decrees have to be taken to make the law fully applicable, one of the main obstacles to its effectiveness is that it is simply not known. So far, limited efforts have gone into dissemination, primarily by UNICEF and Save the Children targeting magistrates and lawyers, and by BICE that also targets police officers. It is believed that increased awareness of the law would contribute to prevention (e.g., the existence of penalties for those accusing children of witchcraft). Those in charge of ensuring that the law is applied will be particularly targeted and trained, including social workers, police officers, magistrates and lawyers. 10. Community mobilization. Community-based networks, such as Child Protection Committees and volunteer "family helpers", will be the backbone of preventive efforts. They will be strengthened (if they already exist) or established, organized and supported by NGO/FBO community organizers. A particular effort will be made to set up and support community warning systems aimed at identifying children at risk such as run-aways or abuse victims (who are likely to be future run-aways). It is expected that the networks will concentrate on two main target groups. On the one hand, there will be the specific groups within the community whose behavior tends to be directly connected with children leaving or being ejected from the household, such as recently divorcedwidowedremarried parents (whose children have a higher probability of ending up in the street than other children). On the other hand, there will be individuals whose standing in the community places them in a privileged position to influence behavior. In particular, given the considerable outreach capacity of churches and mosques and, especially, their important role in shaping beliefs and behaviors, they will constitute a primary ally for preventive activities. A number of NGOs have already adopted a similar approach (e.g., Afiicare, Save, BICE in Kinshasa, PACT in Lurnumbashi) and their achievements and challenges will be taken into account. 11. Community awareness campaigns. The actions of community networks will be complemented and reinforced by a variety of community events that will use social marketing principles to deliver basic messages on topics such as child protection, parental responsibility, child development, children rights and duties (as per the African Chart on the Rights of Children), HIV/AIDS awareness and prevention, human rights, and the challenges of witchcraft. These events may include interactive theater, interactive film projections and all sorts of "fun" events (e.g., singing or dancing competitions). In this sense, partner implementing organizations ~ 3 1 A widow and her children tend to be very vulnerable in DRC, as a widow will often lose family assets to family members of her deceased husband. This is most frequent in urban areas. 32 Administrative and legal measures needed for the full application of the law will be supported under Component C. 53 and neighborhood networks will be encouraged to use their creativity and to learn from each other. In particular, community drama outreach using local amateur theatre groups has already been used by some NGOs with encouraging results. Theatre can be a tool for creating opportunities to improve the problem-solving skills of communities. In interactive drama performances, the actors become facilitators and the audience becomes the actors. The drama usually highlights critical and sensitive issues and concerns, and creates the space for community members to identify possible local solutions. A particular emphasis will be put on the dissemination of the Child Protection Law. The law was approved in 2009 and it contains a comprehensive set of provisions that, if applied, should significantly reduce the number of children living in the streets. While a number of decrees have to be issued to make the law fully applicable, one of the main obstacles to its effectiveness is that it is simply not known. So far, limited efforts have gone into disseminating it, primarily by UNICEF and Save the Children targeting magistrates and lawyers, and the NGO BICE targeting police officers. It is believed that increased awareness of the law would support prevention efforts (e.g., the existence of penalties for those accusing children of witchcraft). 12. Media outreach. Radio has proved to be a very influential tool for promoting positive changes of attitudes and behaviours, as it reaches large population groups, including illiterate or under-educated people. NGOs or firms specialized in the use of mass media for BCC will be contracted to produce a variety of radio formats on topics similar to those covered by community awareness campaigns. Radio programs, therefore, will complement and reinforce the work carried out by community networks. Formats may include the following: radio drama series: 10-15 minutes stories to address a few specific themes at a time, generally featuring the same key characters (e.g., the adventures of a child); 0 sketches: short stories of two to five minutes to communicate specific messages in an attractive format for the communities; feature programs: to address particular issues and concerns related to specific groups (e.g., single mothers or recent widowers); 0 call-in programs: to allow all stakeholders to have their voice heard and bring out their concerns, thus facilitating social dialogue and cooperation by creating a common space of interaction; jingles: to announce and frame the different programs in an appealing and message- bearing way. 13. As there are no Congolese actors with the required experience and competence, it is expected that this type of activities will be initially contracted to international entities, which will be asked to develop and produce the radio programs, negotiate broadcasting times with community and national radios, and provide taped broadcasts. Training of local media actors (journalists, radio producers, technicians) will also be part of the contract package to ensure that competences are transferred. It is hoped that during the last two years of implementation it will be possible to finance radio programs created and produced by local actors. 14. Schooling opportunities. As experience shows that dropping out of school is often the first step toward life in the streets, many local stakeholders support school attendance for at-risk children as a preventive measure. This is generally done in one of two ways, depending on the 54 specific predicament of the children and their families, as well as on the specific context. One approach is for NGOs/FBOs to work closely with neighborhood schools, helping them with repairs, maintenance and supplies, but also training and sensitizing teachers and School Management Committees (they include parents and are locally known as COGES) to engage their help in identifying children at risk and keeping them in school. It is typical for schools receiving support to agree to accept a percentage of children (10-15 percent) free of charge.33 These non-paying children will generally be children at risk, identified either by the NGORBO or by the teachers and COGES. Support to public schools will be carried out in coordination with the Ministry in charge of education to avoid overlapping with other support efforts (including the IDA-financed education project). 15. The other approach to keep children in school and away from the street is to set up or collaborate with existing remedial education centers (centres de ratrappage scolaire). These centers provide an accelerated primary cycle (three years instead of six) that has been approved by UNESCO and they have been shown to have better success rates than formal primary schools. After graduation, children can (reljoin the formal education system and enroll in secondary education. The Directorate for Non Formal Education of MINAS runs some of these centers and coordinates the whole effort, with support from UNICEF. Most actors agree that remedial education has a very important role to play for children who are too old for regular classes (because of late enrolment, repetitions or missed years) or at risk of dropping out prematurely from the education system. For these reasons, children rescued from the street are more likely to be directed toward these centers than toward formal education. In this sense, support to remedial education serves both preventive and assistance purposes. Component B: Assistance ($4.3 million) 16. This component will finance a set of activities aimed at improving coverage and quality of services for children already in the street. Particular attention will be given to services adapted to the special circumstances of street girls who are arguably even more vulnerable than street boys, as they are often victims of sexual violence. For example, a 2008 study in Kinshasa reports that 70 percent of them had been raped and three fourth of those rapes were gang rapes. In addition, field evidence indicates that street girls are also more difficult to reunite with their families, especially after they have children. In addition, street girls often become pregnant and have babies, who will likely grow up in the street and become themselves street children. Assisting street girls, therefore, could help break the intergenerational cycle of "streetism" and, hopefully, also the intergenerational cycle of poverty. 17. Given the limited funding available, activities will be geographically targeted to eight of the 24 communes of the Kinshasa larger metropolitan area, selected for their high concentration of street children: Gombe, Kinshasa, Masina, Matete, Kasa-vubu, Kalamu, Kitambo and 33 This approach can be considered an adaptation of conditional cash transfers to Congolese reality. Rather than paying targeted parents to keep children in school, schools are paid (in kind) to keep targeted children enrolled, which in turn results in savings for the parents. The conditionality is built in the system because the only way to benefit is to attend school (thus doing away with cumbersome controls on compliance), and the distribution of benefits is greatly simplified because they are concentrated on schools (rather than dispersed among caretakers) and they are in kind (hence preventing misuse). 55 . ~ S e l e m b a ~In~2004, the total population of the eight communes was about 1.8 million. All of these communes attract street children because of the opportunities they offer to earn (or steal) money at markets, car parks, bus and train stations, and other locations where people with money tend to gather (e.g., restaurants, shops, offices). Gombe, which hosts the most prestigious economic and political actors (ministries, donor offices, commercial banks, elegant restaurants), is a top attraction for street children, but they are generally chased away by police and security services, and therefore few street children sleep in Gombe's streets. For this reason, support services offered in Gombe will be limited to Listening Centers (see below). 18. The component will support a wide range of services to be provided primarily by NGOs and FBOs, but also, when appropriate, by specialized institutions of MINAS (e.g., Social Promotion Centers). Services provided can be grouped in the following categories: Short-term services: These would include temporary shelter (whether for the day or for the night), emergency medical care, food, entertainmentjplay, and, to the extent possible, trauma counseling. Service providers will be encouraged to use creative approaches and build on their experiences to offer services that are cost-effective and adapted to the target population. Street educators and informal Listening Centers will offer a first contact for children with the "regular" world and caring adults, thus representing the entry point for other efforts. On the other hand, moving health centers (i.e., vans with health personnel and supplies for basic medical care) may be used to bring health services to children where they congregate (usually these vans circulate at night and go where children gather to sleep). Transit Centers may also provide short-term services in an open environment where children are free to come and leave. Medium-term services: These would be services with longer-term objectives such as psycho-social counseling, remedial classes, functional literacy, and vocational training. In general these services would be available through Transit Centers, but it is not expected that all Transit Centers be able to offer all services. Partner implementing organizations will be encouraged to set up collaboration agreements with other organizations, or even with individuals (e.g., a psychologist who may accept to provide counseling to street children at reduced rates) so as to offer children more comprehensive services. A number of organizations are already engaged in these activities, albeit with varying degrees of quality and comprehensiveness. Particular emphasis will be put on vocational training and functional literacy, as these are crucial to equip children who cannot (or do not want to) rejoin their families with the skills needed to become productive citizens. In addition, experience in DRC suggests that family reunification may be easier when the child possesses skills that make himher an economic asset to the household. Long-term living solutions: Ideally, all street children should be given the opportunity to live in a caring household, better if with their own family. But while permanent removal from the streets should be the ultimate goal of interventions, it would be unrealistic to expect high rates of family reunifications. Experience worldwide suggests that 34 It should be noted that Masina is also part of the communes to be targeted for prevention. 56 reunification is a long, costly and often unsuccessful process. "Recidivism" is the norm, and several attempts have to be made, with patient mediation offered by trained personnel and careful follow-up even when the reunification appears to have been successful. Both local actors and existing literature suggest that street girls are a particularly difficult group to reintegrate, especially when they have become mothers. In addition, in cases where children have fled family abuse, reunification may not be in the best interest of the child. Therefore, alternative long-term living arrangements have to be envisaged. Group houses, where a small group of children live together under the supervision of a pool of adults, and foster houses, would be the preferred solutions. There is little experience with these two types of arrangements in DRC, and the little experience there is has provided mixed results, so they will be tried on a pilot basis. Component C: Capacity building, coordination and project management ($2.6 million) 19. This component would provide technical assistance and training to strengthen MINAS' capacity to effectively carry out its mandate as the government agency responsible for child protection, but also support NGOs and FBOs directly involved in service delivery as well as other stakeholders with a role to play in child protection. Project-funded activities will focus on Ministry personnel at the central level and on field personnel operating in the communes targeted by Components A and B. It should be noted that capacity building activities targeting MINAS will have a national coverage, enabling its provincial representations to benefit from the project as well. In this sense, it is hoped that the activities financed under this component will help re- energize the Ministry and enable it to play its role of national focal point for vulnerable children, including mobilizing funds from other donors. 20. When relevant, capacity building would also cover staff of other government bodies. These will include: Ministry of Justice, Ministry of Gender, Family and Children, Ministry of Primary and Secondary Education, Ministry of Health, Ministry of Interior (police), National Statistics Institute, Ministry of Youth and Sports. In addition, the project will provide the opportunity to reinforce the capacity of entities with a direct role in the implementation of Components A and Byeither because they have been contracted or could be contracted as service providers (NGOs, FBOs) or because of their strategic position (e.g., opinion leaders, journalists, umbrella NGOs). 21. The National Social Protection Strategy for Vulnerable Groups (2004) identified a number of obstacles to MINAS effectiveness that are still valid , including: high staff turn-over, a disproportionate number of staff beyond retirement age, difficult physical working environment (e.g., poorly maintained buildings, unreliable access to water and electricity, overcrowded offices, insufficient or broken furniture, lack of internet access), and staff who are often insufficiently or inappropriately trained and who lack relevant field experience. In addition, a study financed by UNICEF in 2006 had also pointed to a series of weaknesses at the institutional level. Therefore, while the national institutional assessment to be financed through the component should provide a comprehensive view of the capacity building needs of MINAS, a number of areas that warrant attention could already be identified, as well as the actors most likely to benefit fiom the trainings. 57 Child protectiodchild rights: All actors with a possible role in prevention or assistance should be familiar with these basic concepts, including government stakeholders, NGOs/FBOs, as well as media representatives (through their networks) and theater people (as they will be called upon in the context of community-based prevention). Particular emphasis will be put on those who are in a position to create a multiplier effect, such as the associations of local NGOs involved with street children (REJEER and CATSR). When relevant, expert assistance will be recruited to assist MINAS draft legal provisions needed to enact the Child Protection Law. Planning, monitoring and evaluation: MINAS will be helped improve the capacity of its various directorates and divisions involved in child protection to plan, monitor and evaluate activities. This will include setting up a monitoring system to be piloted initially in the targeted communes, as well as an MIS. It is expected that the National Statistics Institute will be involved, as well as the Ministry of Plan (Directorate for the Social Sector) and NGO networks. It should be pointed out that the project team has requested funding from sources other than IDA to support the rigorous monitoring and evaluation (M&E) of the project. Activities financed by this component will not focus specifically on the project, but rather aim at equipping stakeholders with the skills necessary to establish and operate M&E systems for activities beyond the life of the project. Of course, the project will provide the opportunity to test the skills and the systems. Norms, standards and policy development: Guidelines for the Protection of Children without Family Care (Lignes directrices pour la protection des enfants en rupture familiale) were developed in a highly participatory way with UNICEF support and officially adopted in December 2009. Project funding will support the development of standards consistent with the guidelines, and the training of MINAS' provincial representations for disseminating the guidelines and standards to field actors (Social Promotion Centers, NGOs, FBOs) and for monitoring their application. Thematic training on specijc topics: Actors with direct and regular contact with street children, whether with public or private organizations, will be offered both training in topics such as social reintegration (e.g., listening skills, mediation techniques, family reunification), economic reintegration (e.g., how to provide assistance for self- employment, motivational skills), and gender-based violence (prevention, case management, trauma counseling), as well as training in how they can function effectively (e.g. in accounting and fund raising). 22. Coordination. Much effort has already gone into coordinating the work of the numerous organizations with the mandate -or sometimes just the desire-to help solve the street children problem. There exists four umbrella organizations for NGOs actively involved with street children that already make efforts to disseminate information to their members and offer a forum to exchange experiences: REJEER, CATSR, RENACERAS and COPERF (see Annex 6 for more details). The inter-agency body, the National Council for Children, which was established in 2001 and which comprises six ministries, several donors and international and local NGOs and FBOs, has not been very effective so far, in part because it has not been decided which agency should take the lead. Currently a UNICEF supported OVC Coordination Committee (known as 58 Commission Mjxte), which was established in 2004 and is chaired by the Child Protection Department of MINAS, is currently quite active at the national level h d there are plans to set up similar committees at the provincial MINAS' active involvement and leadership in the Committee is currently hampered by its very limited logistical means (e.g., lack of access to internet) and the uneven quality and high turn-over of its staff, especially in the provinces. At present, a national multisectoral coordination committee for the protection of OVC, that will be chaired by MINAS and comprise relevant Ministries, bi- and multilateral organizations, and other relevant public and private actors, is currently being set up. This new Committee will replace the existing OVC Coordination Committee. The support to MINAS described above should help palliate the different shortcomings. 23. Monitoring and evaluation. The phenomenon of street children tends to elicit an immediate moral response and therefore the urge to "do something", with monitoring and evaluation being often considered a distraction from the most important task of providing assistance --or at least trying to prevent the need for assistance. As a result, data on costs, service standards, outputs and outcomes are generally hard to come by and rigorous evaluations are very few, especially on prevention efforts. Hence the importance of setting up a sound monitoring and evaluation system for the project, as this will provide crucial information not only for the implementation of this project but also for future scaled-up activities and for social policy decisions in DRC as well as in the many countries faced by similar circumstances. It is expected that the National Statistics Institute will be involved in the design and implementation of an M&E system, as well as the Ministry of Plan (Directorate for the Social Sector) and NGO networks. In addition, the collaboration of the UCW Project, jointly implemented by UNICEF/ILO/WB, has been secured to provide guidance and technical assistance particularly for evaluation purposes. 24. Three levels of monitoring will take place: (i) inputs will be regularly recorded by PIU staff in the project database and used to produce monthly reports; (ii) information on outputs (e.g., number of community meetings held, number of meals provided) and intermediate outcomes (e.g., number of girls assisted at Transit Centers or number of neighborhood Child Protection Committees set up) will be provided on a quarterly basis by the entities contracted and entered into the database by PIU staff (eventually by MINAS staff), but also checked through regular field visits and random rapid assessments of the performance of service providers; and (iii) beneficiary assessments and other research methods will be employed to gauge the level of satisfaction of intended, beneficiaries. When data collection instruments and processes are sufficiently tested, MINAS' staff will be trained in their use and will begin to take over monitoring responsibilities in an incremental manner. It is expected that progress will be uneven among different MINAS subdivisions and that refreshers and assistance will be needed from time to time. The PIM will contain precise instructions on the processes to follow for data reporting and dissemination, including standard data recording forms. 25. Evaluation is expected to adopt a pre- and post-test design. This will start with the collection of baseline data for components A and Bythe first focusing on households and the second on street children. In the case of prevention, households in neighborhoods where prevention activities will behave been taking place will be compared to households in 35 The committee comprises relevant Ministries, some donors and other public and private OVC actors. 59 neighborhoods where prevention activities will not have not been taking place. In the case of assistance, street children in targeted communes will be compared to street children in non targeted communes (keeping in mind that street children are highly mobile). Given the need for a rigorous approach, evaluation will be contracted to specialists, but MINAS and the National Statistics Institute will be associated at all stages to facilitate competence transfer. 26. 'Project Management. Funding will cover the establishment and operating costs of the PIU (see Annex 6 for details). 27. A tentative breakdown of costs for this component is as follows: Capacity building for MINAS, local NGOs and FBOs and other relevant actors, including coordination: US$900,000 Monitoring and evaluation: US$600,000 Project management: US$ 1.1 million 60 Annex 5: Project Costs DEMOCRATIC REPUBLIC OF CONGO: Street Children Local Foreign Total Project Cost By Component andor Activity US $million US $million US $million Component A: Prevention 3.1 Community mobilization and awareness 0.90 1.oo Schooling opportunities 0.80 Radio programs 0.40 Component B: Assistance 2.00 2.20 4.3 Component C: Capacity Building 2.6 Capacity building (including coordination) 0.90 Monitoring and evaluation 0.60 Project management 1.00 0.10 Total Project Costs' 6.68 3.32 10.0 Of which (Le. included in the above costs): Physical Contingencies 0.04 0.01 0.05 Price Contingencies 0.04 0.01 0.05 'Taxes and duties are included as the country financing parameters allow for 100% reimbursement. 61 Annex 6: Implementation Arrangements DEMOCRATIC REPUBLIC OF CONGO: Street Children Overview 1. The Ministry of Social Affairs, Humanitarian Action and National Solidarity (MINAS) will be the implementing agency, but will delegate implementation to a Project Implementation Unit (PIU) placed within the Social Fund of the DRC (FSRDC). As the government body with the mandate for child protection, the Ministry bears ultimate responsibility for activities dealing with the phenomenon of street children. However, in light of its weaknesses and of the limited resources and time for project implementation, day-to-day project management activities will be delegated to the FSRDC (see below), through an ad hoc PIU. A MOU (Protocol d'accord) will spell out duties and responsibilities of the two parties. A Steering Committee will act as the oversight body. Activities under Component A and Byas well as some of the activities under Component Cywill be contracted to private actors (NGOs, FBOs, consulting firms) and, when appropriate, to government entities (see graph at the end of the Annex). Selection of partner implementing organizations will be done in line with Bank procedures, primarily on the basis of competitive bidding. Main Actors and their Role 2. MINAS. The Ministry has the primary responsibility for initiating and coordinating policy action for vulnerable groups in general and for orphans and other vulnerable children (OVC) in particular, but its limited means seriously handicap its efforts to carry out its mandate. Within the Ministry, the Department for Child Protection (Direction des Interventions Sociales pour la Protection de 1'Enfant or DISPE) is to lead OVC policy formulation, and coordinate and monitor interventions (including chairing the OVC Coordination Commission). In 2009, DISPE had a total of 57 staff at the national level and about eight staff in each of the provincial Offices for Child Protection (Bureaux des Interventions Sociales pour la Protection de 1'Enfant or BISPE) that are located under the Provincial Social Affairs Divisions (known as DIVAS). In each province, activities related to child protection are carried out not only by the Office for Child Protection, but also by the Social Affairs Bureaus, which are part of provincial or municipal services, and to a limited extent by the Social Promotion Centers. 3. In Kinshasa there are 24 Social Affairs Bureaus (one per commune), but their staffing is far from complete,36and 28 Social Promotion Centers, but most of them are either completely run down or no longer functioning. The limited activities targeting OVCs at the Social Promotion Centers are financed by UNICEF. The Ministry is experiencing serious staffing problems: several employees are beyond retirement ageY3'while many others either lack appropriate training or relevant experience (e.g., according to DISPE, only about 60 percent of their staff is qualified). In addition, about 35% to 40% of MINAS' staff does not receive any regular salary as they do not have the required status as civil servants. Offices, logistical and theory there should be three social workers and a Bureau chief, covering up to a million people. 36 In 37Because public resources are insufficient to pay for pensions, the number of overage civil servants has been growing throughout the public sector. 62 communication means are also grossly inadequate, with frequent overcrowding and insecure access to water, electricity and internet. Moreover, the operating budget is extremely low (e.g., in 2008 the operating budget for the Studies and Planning Department was US$50). Although some donors, including UNICEF, USAID and the African Development Bank, have provided some support to strengthen the Ministry's capacity, the needs remain enormous. Role ofMINAS: The Ministry will be responsible for: (i) ensuring that project activities are consistent with national policies and laws; (ii) liaising with other governmental agencies including the Ministries of Justice, Gender, Health, Education and Youth as well as the national police; and (iii) coordinating with relevant actors to tackle strategic issues that will emerge during project implementation as well as providing technical support. Although the daily activities of the project will be facilitated by the PIU, MINAS will be involved in project oversight and critical decision making through its presence in the Steering Committee (see below). It is also expected that staff from Kinshasa's Social Affairs Division, including its Child Protection Office, and the municipality's Social Affairs Bureaus will be called to play a progressively more important role in monitoring and facilitating project implementation. As the capacity building provided under Component C gets underway, they will become better equipped to support and coordinate NGO work. At the same time, their familiarity with project activities, and in particular with the work of high performing NGOs, will contribute to strengthen their capacity. MINAS will also be responsible for sharing lessons learned during project implementation regarding good practices and lessons learned. Coordinating bodies, such as the Inter-agency Committee that MINAS chairs, will provide an ideal forum for informal exchanges. The activities financed under Component C will help MINAS successfully facilitate these tasks. 4. Project Implementation Unit: The PIU will be a light structure under FSRDC, which is currently implementing an IDA-financed CDD project and an SPF grant for labor-intensive public works in the Katanga province. FSRDC was chosen as the agency to host the PIU in light of its reputation for quality implementation and satisfactory fiduciary management. The PIU will be staffed with: a Coordinator, two child protection specialists, and a monitoring and evaluation (M&E) specialist, supported by a secretary. In addition, the FSRDC financial management team may be strengthened by an accountant if the workload for existing staff proves excessive; new accounting software, multi-project and multi-site, should be in place by the time project implementation starts (it is financed by an Additional Financing for the CDD project). Personnel will be selected on a competitive basis according to Bank rules, but at least one technical specialist will be on loan from MINAS. This arrangement should facilitate collaboration with the Ministry and stimulate project ownership. 0 Role ofthe PIU: By delegating implementation to FSRDC, MINAS will benefit from FSRDC expertise in the Bank's fiduciary guidelines and requirements, and will greatly limit additional costs associated with establishing a separate implementation unit and/or building the Ministry's capacity to effectively run the project. Financial management and procurement will be carried out by FSRDC specialized personnel, an arrangement that should allow implementation to start quickly. All other day-to-day management 63 activities needed for project implementation will be carried out the PIU. These will include: preparing yearly work plans and budgets and submitting them to the Steering Committee (see below), preparing terms of reference for all consultants and obtaining related non objections fiom the World Bank, preparing requests for manifestation of interest and for proposals in collaboration with FSRDC procurement staff and selecting consultants, submitting consultant selections to the Steering Committee in accordance with requirements set in the PIM (only for contracts above a certain threshold), supervising the work of implementation partners, in collaboration with MINAS staff as appropriate, f) maintaining a monitoring and evaluation system (consultant expertise and technical assistance will be provided to design and set up the system), disseminating project-related information, preparing regular monitoring reports to the attention of MINAS, the Steering Committee et the World Bank in accordance with requirements set in the PIM. 5. The roles and responsibilities of FSRDC, the PIU and MINAS in terms of project implementation will be clearly determined, defined and documented in the PIM. In addition, an MOU (Protocol d'accord) will be established between MINAS and FSRDC and is a condition of effectiveness. 6. Steering Committee: This committee, to be set up prior to project effectiveness, will be chaired by the Minister in charge of social affairs and consist of representatives of the following entities (one per entity): the Studies and Planning Department of MINAS, Child Protection Department of MINAS, the Provincial Division for Social Affairs (Kinshasa) of MINAS, civil society (one of the umbrella NGO organizations), the Ministry of Primary, Secondary and Professional Education, and the Ministry of Gender, Family and Children. UNICEF and the PIU Coordinator will participate to the Committee meetings as resource persons and observers, without the right to vote. 0 Role o the Steering Committee: The committee will be the oversight body for the f project. In this capacity it will have three main functions: (a) approve yearly work plans and budgets; (b) approve proposed contracts with selected partner implementing organizations above a certain threshold; and (c) revise implementation reports as well as specific monitoring and evaluation reports. In addition, it will be the last resort in case of disagreements involving the PIU (e.g., with partner implementing organizations or among PIU staff). On occasion, Committee members may also request to participate to project supervision activities planned by the PIU. 7. Other government actors: The issue of street children is complex, and finding sustainable and effective responses to the issue requires the involvement of a host of government actors, including: the Ministry of Justice, the Ministry of Gender, Family and Children, the Ministry of Primary, Secondary and Professional Education, the Ministry of Interior (the police 64 in particular), the Ministry of Health, and the Ministry of Youth and Sports, the National Statistics Institute and the training institute for social workers (known as CAFES). It is therefore critical that these actors be associated in project implementation, and, if needed, be involved in the capacity building activities. Role of other government actors: The specific role of each actor will obviously depend on its mandate and comparative advantage. Some actors will be involved as partners in project activities, such as the ministry in charge of education, the National Statistics Institute, or CAFES. Others may be targeted for prevention activities, such as members of the police inspectorates of Kinshasa. Others still may benefit from capacity building activities. It is envisaged that a focal point for the project will be identified in each of the agencies above. 8. Partner Implementing Organizations: Project-funded activities under Component A and B will be primarily implemented by NGOs and FBOs. There are some 300 NGOs, FBOs )~~ and children centers (centres d ' a c ~ u e i lrecorded as members of at least one of the umbrella NGOs, although many of them do not have a legal personality and many others may be involved in activities that are not within their legally approved mandate (e.g., orphanages hosting malnourished children). Churches (protestant, catholic and kimbanguist) have a long tradition of social assistance and resource mobilization (human and financial), and their outreach and visibility give their actions great legitimacy in the eyes of the population. While a great number of organizations carry out heroic work in helping vulnerable children and strengthening community capacity to protect children's rights, local NGOs tend to suffer from grossly inadequate resources, insufficiently trained staff, and poor management. 9. Private organizations involved with street children are grouped in four umbrella organizations (with some overlapping): a) the Network o Educators o Street Children and Youth (REJEER): it is the largest f f umbrella organization, with about 150 members and it is increasingly receiving funding from bilateral and foreign NGOs to organize workshops and other capacity building activities for its members; b) the Support Committeefor Street Social Work (CATSR): it has 70 members, the majority of whom operate outside Kinshasa, and is focused on coordination and advocacy; c) the National Network o Centers for Remedial Schooling (RENACERAS): created in f 2004 to offer schooling opportunities to vulnerable children who are drop-outs or never went to school, includes 100 centers in Kinshasa (250 in total); 38 Children centers cover a wide variety of arrangements and services. They include: day centers offering little more than a sympathetic ear; temporary shelters, which are open institutions where children are free to come and go, offering a variety of services; and closed residential institutions like orphanages. Their quality varies enormously, but in most cases it tends to be rather modest. 65 d) the Coordination o Organization for the Protection o Children without Family Care f f (COPERF): it comprises nine international NGOs3' that meet regularly to exchange information and experiences, coordinate their activities, and agree on a common advocacy strategy; these NGOs generally work in partnership with local NGOs. Role of partner implementing Organizations: Implementation of Components A (prevention) and B (assistance) will be contracted primarily to NGOs and FBOs. Specialized government entities, consulting firms and individual consultants will be the main implementing partners for Component C (capacity building). Implementing partners will be recruited in a competitive way and be responsible for service delivery in accordance with a work plan, budget and targets clearly spelled out in a contract and the project implementation manual. They will be required to provide regular progress reports, to be available for supervision by the PIU, to submit to audits and, more in general, to conform to the arrangements laid out in the PIM. Implementation Activities 10. The process to select partner implementing organizations will follow standard Bank procurement procedures. Requests for manifestation of interest will be issued by the PIU to identify organizations to be short-listed for preventive or assistance services (the same organization could be short-listed for both services). On the basis of the short list, organizations will be invited to submit proposals for one of the communes targeted (the same organization could submit proposals for more than one commune). To simplify project management, it is expected that, at least initially, organizations will be invited to offer comprehensive services and, therefore, that there would be only a few partner implementing organizations with fairly large programs. Prospective partner implementing organizations will be encouraged to form partnerships with other entities (e.g., NGOs, FBOs, CBOs, children centers, theater groups, health centers), as it is often the case already, so as to be able to offer a variety of integrated services and to take advantage of the proximity of smaller partners to the grassroots. 11. Partner implementing organizations will be selected based on criteria including demonstrated capacity to implement and manage complex and large scale activities. Concerning Component A, it is expected that the production of radio programs or other mass communication instruments will be contracted separately to specialized entities, while prevention activities relying on face-to-face interaction will be part of a comprehensive package including community mobilization and community awareness. Concerning component B, the exact cost will be determined based on the services to be provided, the fees of the NGOs and the estimated costs for the services and expected amount of children that can benefit from the project partner implementing organizations will need to have two separate bank accounts, one to receive their own fees, and one to receive the delegated funds that are to be used to provide specific services or goods according to need and demand from beneficiaries. 12. It should be noted that the number of partner implementing organizations will be quite limited, as it is expected that only one organization will be selected per commune and per type of service (prevention or assistance) for the duration of the project. On the other hand, partner 39 Africare, MDM, Save the Children, CIS, BICE, War Child, CESVI, Red Cross, and Amici dei Bambini. 66 implementing organizations will be encouraged to form partnerships with other NGOs/FBOs or individual consultants so as to provide more comprehensive services and/or better coverage. Performance indicators will be specified in the contracts between FSRDC and the organizations, and the continuation of contracts will be contingent on an acceptable performance in terms of process (e.g., timely submission of monitoring reports, unqualified annual financial audits), outputs and outcomes. Hence the importance of a sound monitoring and evaluation system for the project. Flow of Funds 13. An initial deposit equivalent to six months expenditures forecast will be released by IDA upon effectiveness at the request of FSRDC. Funds will be disbursed to partner implementing organizations on the basis of a three-month budget as per an agreed Work Plan. The submission of supporting documents of expenditures for previous advances will not be a condition for paying subsequent requests for replenishment. However, two documents will be required for replenishment: (i) a statement of expenditures; and (ii) a summary showing the total amount received, and the expenditures made. Box 1: Project organigram Guidance Final responsibility Day-to-day Management Field Implementa NGOs,FBOs, Specializedgovernment services, Consultants ~-r Final beneficiari PREVENTION: -at risk families -neighborhoods -schools and remedialcenters I -1-tTC... . Annex 7: Financial Management and Disbursement Arrangements DEMOCRATIC REPUBLIC OF CONGO: Street Children 1. The financial management (FM) arrangements for the project have been designed with consideration for the country's post-conflict situation while taking into account also OPBP 10.02, which covers overall FM Bank policies and procedures. The findings of the Country Financial Accountability Assessment (CFAA) and Public Expenditure and Financial Accountability (PEFA) exercises as well as the FM capacity assessment of MINAS conducted during project preparation revealed some weaknesses in financial management and procurement. As a result, at the time of appraisal the Bank could not rely on the public expenditure framework for the purpose of this project. It was therefore agreed to locate the project implementation unit under the FSRDC, including the responsibilities for the project's fiduciary aspects. FSRDC is very familiar with the Bank FM and procurement requirements and procedures. FSRDC will be the main counterpart of the Bank and focal point for all project fiduciary aspects. Financial management will follow the same approach as the implementation arrangements in place for the other projects managed by FSRDC, Le., the Additional Financing to the Emergency Social Action Project (known as PASU) and the State and Peace Building Fund (SPF) grant for labor- intensive works in the Katanga province. These are considered appropriate by IDA, having been improved through the implementation of the action plans prepared by the government following the midterm review of PASU and various FM implementation support missions. The residual FM risk after mitigation measures has been rated Moderate taking into account the current FM arrangements of the FSRDC. 2. Implementation of three additional projects -the Additional Financing of the PASU project, the SPF Grant and the present project-- will translate into an increased workload for FSRDC, which in turn will require more sophisticated control systems and adequate staff, an effective internal audit function, an updated PIM, an integrated information system, and a multi- project software. Appropriate additional FM arrangements (e.g., acquisition of a multi-project and multi-site accounting software, and recruitment of an additional accountant and an internal auditor4') have been agreed with the government and FSRDC. 3. Interim Financial Reports (IFR) will be prepared every quarter in a format and content agreed with IDA and submitted to the Bank 45 days after the end of the quarter. The General Auditor (Cow des Comptes), having been assessed as weak, a qualified, experienced, and independent external auditor will be recruited on approved terms of reference. The audit period will be on annual basis and reports will be submitted to IDA and to the Cow des Comptes six months after the end of each fiscal year. 4. Upon Grant effectiveness, transaction-based disbursements will be used during the first months of project implementation. Thereafter, the option to disburse against submission of IFR will be considered subject to the quality and timeliness of IFR submitted to the Bank and the overall financial management arrangement as assessed in due course. The other options of disbursing the funds will also be available. A Designated Account (DA) denominated in US 40The FM team of team of FSRDC at the central level is presently composed of a qualified Financial Director, a management accountant, a treasurer and two accountants. 68 Dollars will be opened in a commercial bank on terms and conditions acceptable to IDA. An initial advance up to the ceiling of the DA and equivalent to six-month expenditures forecast will be released by IDA at the request of the project (FRSDC) upon effectiveness. Subsequent advances will be made against submission of Statements of Expenditures or records reporting on the use of initial/previous advance. Payments to partner implementing organizations, services providers and suppliers will be made as specified in the respective contracts and MOUs. 5. FM supervision will focus on the status of financial management system to assess whether the system continues to operate well and provide support as needed Summary Project Description 6. The development objective of the project is to improve the delivery mechanisms of prevention and support services for street children in Kinshasa. Though the project will benefit street children in Kinshasa, some of its prevention and capacity building activities will have a national coverage. For example, radio programs on children rights will be broadcasted in all the provinces, and training for MINAS staff will also be provided to personnel based outside the capital. Component A: Prevention- US$3.1 million; 0 Component B: Assistance- US$4.3 million; 0 Component C: Capacity Building, Coordination and Project Management : US$2.6 million. 7. The description of the components is detailed in Annex 4. Country Issues 8. Assessments by the World Bank and other donors, notably, the CFAA, PER (Public Expenditures Review), and PEFA completed between 2002 and 2007 portray an unsatisfactory economic and financial control environment including weak budgeting preparation and control, financial reporting, external audit and human resources. In-depth structural reforms have been launched in the areas of economic governance, public expenditure management, financial sector and public enterprises to strengthen capacity in the public administration. With the support of the international community, the Government of DRC is undertaking a series of Public Financial Management (PFM) reforms in budget preparation and execution, compliance with Treasury forecasts, preparation of regular budget execution reports, and simplification of the national budget classification system. By the HIPC completion point, expected in June 2010, the reforms and actions put in place will impact the quality of the PFM system. Although there is reason for cautious optimism, it will take time for these reforms to yield substantial improvements in the management of public funds. As a result, the overall country fiduciary risk is still considered high and the Bank cannot, at this point in time, rely on the public expenditure framework for the purpose of this project. Institutional arrangements for financial management 69 Financial management capacity assessment of MINAS and the justgcation for using FSRDC 9. Project implementation arrangements will be based on a delegation of implementation responsibilities to government administrative and technical entities as well as to private entities such as NGOs, FBOs, enterprises and consulting firms. 10. Assessments by the World Bank and other donors, notably the CFAA (Country Financial Accountability Assessment), PER (Public Expenditures Review), and PEFA (Public Expenditure and Financial Accountability) completed between 2002 and 2007, portray an unsatisfactory economic and financial control environment including weak budgeting preparation and control, financial reporting, external audit and human resources. As a result, the overall country fiduciary risk is still considered high. The findings of CFAA and PEFA exercises as well as the FM capacity assessment of MINAS conducted during project preparation revealed some capacity shortages in financial management and procurement. In particular, the weaknesses of the FM Department of the Ministry include (i) insufficiently qualified staff in financial management at all levels of the Ministry's system, (ii) insufficient familiarity with IDA and other donor-financed procedures for project reporting, disbursement arrangements, and auditing; (iii) absence of a proper accounting system to record and prepare financial reports ; (iv) lack of computerized and modern accounting tools at central and provincial levels; and (iv) weak internal control systems. The scope and responsibilities of the FM Department of the Ministry are limited to the preparation and execution of the Ministry budget. 11. As the Bank cannot rely on the existing public expenditure framework for the purpose of this project, it was agreed to locate the project implementation unit under the FSRDC, including the responsibilities for the project's fiduciary aspects. FSRDC is very familiar with World Bank FM procedures. The FM arrangements for the Street Children Project will follow the same approach as the FM arrangements in place for the ongoing Bank operations managed by FSRDC. These are considered acceptable to IDA, having been improved through the implementation of the action plans prepared by the team following various FM implementation support missions. In particular, the Aide Memoire of the last implementation support mission carried out in July 2009 revealed some improvements in the FSRDC FM performance leading to an overall Satisfactory FM rating. The last audit report of project financial statements for the period ended December 31, 2008 was unqualified (clean). There is no overdue audit report and IFR at the time of preparation of this project. Risk assessment and mitigation 12. The Bank's principal concern is to ensure that project funds are used economically and efficiently for the intended purpose. Assessment of the risks that the project funds will not be so used is an important part of the financial management assessment work. The risk features are determined over two elements: (i) the risk associated to the project as a whole (inherent risk), and (ii) the risk linked to a weak control environment of the project implementation (control risk). The content of these risks is described below. 70 Risk Risk Mitigating Measures Incorporated into Project Design Inherent risk H M Country level H The government is committed to a The CFAA, PER and the PEFA reform program that includes the reports outlined PFM weaknesses strengthening of the budget at central and decentralized classification and implementation of government levels as well as an interim IFMIS. A new legal sector ministries level in term of framework is being prepared. N H governance and public finds However there are still weaknesses in management. capacity and in audits of a first set of accounts. Efforts are being continued to strengthen the accounting and audit capacity. Use of IDA FM procedures is required for this project. Entity level The FSRDC is very familiar with Implementation of the Additional IDA FM procedures. The FM Financing, the SPF grant for procedures manual will be updated; Katanga and the Street Children additional staff will be recruited; the Project will translate into an S internal audit team will be increase of activities for FSRDC, strengthened (this will be financed by Y M which in turn will require more the PASU Additional Financing); a sophisticated control systems and multi-project and multi-site adequate staff, an effective accounting software will be installed internal audit function, upgrading (this will be financed by the PASU the project implementation manual Additional Financing). (PIM), an integrated information system and a multi-project software. Project level M The current FM arrangements are The resources of the project may appropriate to manage the project. not be used for the intended However, for efficiency purposes, the purposes. Delays in the reporting FSRDC will strengthen ex-ante and system and auditing due to the ex-post control of funds allocated to additional workload of FM team partner implementing organizations are expected. including NGOs and FBOs. The M scope of audit will include review of N expenditures incurred by partner implementing organizations. Additional FM staff (an accountant) will be recruited on TORSacceptable to IDA, and training and hands-on advice will be provided to new staff ~~ Control Risk ~ S M M Annual work plans and budgets are Budgeting: required and will be disseminated to (i) Weak capacity at central and the project stakeholders.. The project decentralized entities to prepare PIM (Financial Procedures part) and submit accurate annual work defines the arrangements for programs and budgets; (ii) weak budgeting, budgetary control and the N M consolidation of decentralized requirements for budgeting revisions. budgets; and (iii) weak budgetary [FR will provide information on 71 I execution and control. budgetary control and analysis of variances between actual and estimated expenditures. Accounting: L The PIU will be located under Poor policies and procedures, lack FSRDC, that will also be responsible of qualified additional accountant for the project's fiduciary aspects: (i) staff at MINAS. the project will adopt the Congolese accounting system.; accounting procedures will be documented in the N L PIM; (ii) the FM team headed by a qualified and experienced Finance Director will be strengthened by an individual consultant recruited on a competitive basis; (iii) training on IDA FM procedures will be provided to the new staff as needed. Internal Control: H (i) Update of the FM portion of the Internal control system may be PIM and training on the use of the weak due to weak FM capacity of manual; (ii) recruitment of an IA; or the current FM procedures additional internal auditor (to be may not be sufficient for this fmanced under the Additional project. Financing) who will scrutinize posted Y M accounts, as well as financial and operational procedures. The internal auditors team will report to FSRDC's Coordinator, who will in turn report to the Steering Committee. Funds Flow: S (i) Payment requests will be Risk of misused of funds and approved by the Finance Director delays in disbursements of funds and the Management Accountant to IA and beneficiaries. prior to disbursement of funds to contractors or consultants and decentralized entities; N S (ii) The TORSof the Internal Auditor as well as the External Auditors include regular field visits (physical controls of goods, services acquired); (iii) A ceiling for expenditures that can be handled /paid in cash will be set up in the FM portion of the PIM; (iv) Replenishment of bank accounts of IAs will be made via a simplified IFR (summary report) and supporting documents will be kept in their premises; (v) New FM staff capacity will be strengthened prior and during the project implementation period. 72 Risk Risk Mitigating Measures Incorporated into Project Design Financial Reporting: M (i) A computerized accounting Inaccurate and/or delayed system will be used (multi-project submission of IFR at central level and multi site); due to delays from IAs and the (ii) IFR and financial statements increase in the FSRDC activities. formats will be similar the IFR N M prepared by the FSRDC and agreed during negotiations (iii) A Finance Director will support the FM team of the FSRDC and additional FM staff will be recruited Auditing: M (i) The project's institutional N M Delays in the recruitment of the arrangements allow for the external auditor, recruitment of appointment of adequate external unqualified auditing f m s ; delays auditors and the Tom will include in submission of audit report and field visits and specific reports on the scope of the mission may not findings of physical controls of cover expenditures incurred by all goods, services and works acquired IAs. by partner implementing organizations and beneficiaries; (ii) Annual auditing arrangements will be carried out during the project implementation period; (iii) Close monitoring of audits due dates by the Bank FM team. Fraud and Corruption: S (i) The TOR of the internal and Possibility of circumventing the external auditors will comprise a internal control system with specific chapter on corruption colluding practices as bribes, auditing; (ii) the internal auditors will abuse of administrative positions, report to the Coordinator of the misprocurement etc, is a critical FSRDC and the Project director. The issue. project director, in turn will report directly to the Board of Directors; (iii) one sample of his reports will be submitted to the Bank on a quarterly Y M basis; (iv) revised FM procedures manual approved three months after project effectiveness; (v) robust FM arrangements (qualified FM staff recruited under TORS acceptable to IDA, quarterly IFR including budget execution and monitoring; (vi) technical auditing; (vii) measures to improve transparency such as providing information on the project status to the public, and to encourage participation of civil society and other stakeholder are built into the oroiect design. OVERALL FM RISK 73 Strengths and Weaknesses 13. The FSRDC is very familiar with Bank FM procedures (e.g., financial reporting, auditing and disbursement) and has significant experience in implementing and managing CDD operations (e.g., IDA H120-DRC). Project accounting will be managed and supervised by the Kinshasa-based Finance Director with a team of internal auditors, budget controller and accountants. An additional Accountant will be recruited and will be mainly assigned to the FM aspects of the present project. The Budget Controller and the internal audit unit have acceptable experience in working with IDA-financed projects. 14. No significant FM capacity weaknesses impeding the implementation of the project have been identified. However, the implementation of the Street Children Project in addition to the existing operations managed (or to be managed) by FSRDC will translate into an increased workload, which in t r will require more sophisticated control systems, an effective internal un audit function and multi-sites and multi-projects accounting software. Financial Management Action Plan 15. The Financial Management Action Plan described below has been developed to mitigate the overall financial management risks. Issue Remedial action recommended Responsible Completion bodyfperson date Staffing Appointment of an additional accountant FSRDC 3 months after effectiveness Information Acquisition and installation of FSRDC and 3 months after system accounting software for the project and the software effectiveness accounting training of the users (financed under the providers. software Additional Financing) Administrative Financial Update of the current FM procedures Accounting, and manual ( part of the PIM) Manual Internal auditing Strengthening of FSRDC Internal Audit Unit by recruiting an additional internal FSRDC FSRDC BY effectiveness 3 months after effectiveness 1 consultant (financed under the Additional Financing) External Appointment of the external auditor FSRDC and 3 months after auditing completed and contract signed the Auditor effectiveness General (Cow des Comptes) I I I I I Note: The actions required within 3 months after effectiveness are part of the Financing Agreement (Ref. Schedule 74 Description of the Implementing Entity 16. FSRDC will be the Bank's main counterpart and focal point for fiduciary aspects. It will oversee fiduciary management for the whole project, including management of the funds and the Designated Account, and will primarily be responsible for: (i) financial and administrative management, (ii) disbursement, (iii) procurement, and (iv) auditing. The FM team of the FSRDC is composed of one Finance Director, two Accountants and one Treasurer at central level; and one Accountant in each of the 11 provinces; they have all been selected on a competitive basis under term of reference acceptable to the Bank. The Finance Director has the overall oversight of the project FM system. For the purpose of this project, an additional accountant will be recruited. Budgeting Arrangements 17. The FM team of the FSRDC will contribute to the preparation of an annual work plan and budget for project implementation, identifying the activities to be undertaken and the role of various stakeholders. Annual work plans and budgets will be consolidated into a single document, which will be submitted for approval first to the Steering Committee and then to IDA, with latter submission no later than December 31 of the year prior to that for which the work plan has been prepared. Key Accounting Policies and Procedures 18. An integrated financial and accounting system will be put in place and used by FSRDC. The Project code and chart of accounts will be developed to meet the specific needs of the project and documented in the PIM. The prevailing accounting policies and procedures in line with the national accounting standards - Plan Comptable Congolais - will apply. The accounting systems and policies and financial procedures used by the project will be documented in the administrative, accounting, and financial portion of the PIM, which will be used (a) by the project staff as a reference manual; (b) by IDA to assess the acceptability of the project accounting, reporting, and control systems; and (c) by the auditors to assess the project's accounting systems and controls and to design project audit procedures. Specific procedures will be documented for each significant accounting function. They will be written to illustrate document and transaction flows and they will cover the flow of funds, record keeping and maintenance, the chart of accounts, formats of records and books of account, authorization procedures for transactions, planning and budgeting, financial reports (including formats, linkages with chart of accounts and procedures for reviewing them). 19. For the project to deliver on its objectives, a computerized financial management system will be developed based on a multi-site software being acquired by FSRDC. The system should integrate budgeting, operating and cost accounting systems to facilitate monitoring, evaluation and reporting. 75 Internal Control and Internal Auditing 20. The internal control system is aimed to ensure (i) the effectiveness and efficiency of operations, (ii) the reliability of financial reporting, and (iii) the compliance with applicable laws and regulations. FSRDC has already established FM procedures that are described in the PIM. For the purpose of this project, the current Accounting, Financial and Administrative Procedures Manual, being an integral part of the PIM, will be updated to document, explain and describe work processes, information flow, authorization and delegation of authority, timing, job segregations, auto and sequential controls, compliance with project objectives, micro and macro rules and regulations. Application of the procedures set up in the manual will be mandatory for all staff at all levels. In addition to the procedures manual, all rules of MINAS that will not conflict with the PIM will also apply to the project. 2 1. In the specific component related to ensuring the reliability of financial reporting, the following staffing arrangement should be sufficient to maintain accounting records relating to the project financial transactions, and to prepare the project's consolidated financial reports and submit the same to IDA. The financial management function will be carried out by the FSRDC FM team headed by a Finance Director with acceptable Bank FM procedures experiences. 22. The internal audit function of the project will be handled by the Internal Audit Unit of the FSRDC, The project will provide support for strengthening this function and the internal audit team through the recruitment of an additional experienced and qualified internal auditor under terms and conditions acceptable to the Bank. The internal audit arrangements for the Street Children Project will follow the same arrangements and approach as the arrangements in place for the ongoing projects managed by the FSRDC. The Internal Audit Unit will report directly to the FSRDC Coordinator and the Steering Committee of this project. All deficiencies or circumvented practices identified will be communicated in a timely manner to the overall senior management of the project, mainly the Steering Committee and the Coordinator for immediate corrective action as appropriate. One of each such report will also be communicated to the Bank. The internal audit unit will provide training and hands on support to the project staff. The team will also prepare relevant manuals and guidelines. Funds Flow and Disbursement Arrangements Disbursement methods 23. Upon Grant effectiveness, transaction-based disbursements will be used during the first months of project implementation. At effectiveness, an initial advance up to the ceiling of the Designated Account will be made into the Designated Account and subsequent disbursements will be made against submission of Statements of Expenditures or records. Thereafter, the option to disburse against submission of quarterly unaudited Interim Financial Report (also known as report-based disbursement) could be considered subject to the quality of financial management arrangements as assessed in due course. If and when report-based disbursement is adopted, the Designated Account ceiling will be equal to the cash forecast for two quarters as provided in the quarterly Interim Financial Report. 76 24. The option of disbursing the funds through direct payments to third party on contracts above a pre-determined threshold for eligible expenditures will also be available. Another acceptable method of withdrawing proceeds from the IDA grant, if applicable in the project, is the special commitment method whereby IDA may pay amounts to a third party for eligible expenditures to be paid by the Recipient under an irrevocable Letter of Credit. Designated Account 25. A Designated Account denominated in US Dollars will be opened in a commercial bank on terms and conditions acceptable to IDA. An initial advance of US$600,000 equivalent to six months expenditures forecast will be released by IDA at the request of the project upon effectiveness. The Designated Account will be used for all payments less than 20 % of the ceiling amount. Disbursements to the Designated Account or on account of direct payments will be made based on eligible expenditures to be financed. Additional advances to the Designated Account will be made on a monthly basis against withdrawal applications supported by Statements of Expenditures or records and other documents as specified in the Disbursement Letter. . Disbursement of funds to Partner Implementing Organizations and services providers and suppliers 26. FSRDC will make payments to partner implementing organizations as well as service providers and suppliers in regard to the specified activities in the three components of the project. Payments will be made in accordance with the payment modalities specified in the respective contractdagreements. In addition to these supporting documents, FSRDC will consider the findings of the internal audit unit while approving the payments. FSRDC, with the support of its Internal Audit Unit, will reserve the right to verify the expenditures ex-post, and refunds might be requested for non respect of contractual clauses. Misappropriated activities could result in the suspension of financing for a given entity. 27. Overall funds flow is described in the chart below: I Service providers, suppliers.. . 1 I 77 Taxes 28. Funds will be disbursed in accordance with project categories of expenditures, as shown in the Financing Agreement. Financing of each category of expenditure will be authorized at 100 percent inclusive of taxes as per the current Country Financing Parameters approved for DRC . Financial Reporting 29. Financial reports will be designed to provide quality and timely information on project performance to project management, IDA and other relevant stakeholders. Formats of the financial reports were developed and agreed during project negotiations. The quarterly IFR includes the following financial statements: (i) statement of sources of funds and project revenues and uses of funds; (ii) statement of expenditures classified by project components and or disbursement category (with additional information on expenditure types and implementing agencies as appropriate), showing comparisons with budgets for the reporting quarter and cumulatively for the project life; (iii) cash forecast; (iv) explanatory notes; (v) Designated Account activity statements. The quarterly IFR will be prepared and submitted to IDA within 45 days after the end of each calendar quarter. 30. In compliance with International Accounting Standards and IDA requirements, the project will produce annual financial statements. These include: (i) a Balance Sheet that shows Assets and Liabilities ; (ii) a Statement of Sources and Uses of Funds showing all the sources of Project funds, expenditures analyzed by project component and or category; (iii) a Designated Account Activity Statement; (iv) a Summary of Withdrawals using Statements of Expenditures, listing individual withdrawal applications by reference number, date and amount; and (v) Notes related to significant accounting policies and accounting standards adopted by management and underlying the preparation of financial statements. The financial statements will constitute the entry point of the external auditor's annual diligences. Auditing 31. Due to the weak capacity of the General Auditor (Cour des Comptes), an external qualified audit firm will be recruited under Terms of References and procedures acceptable to IDA. This firm will audit the financial statements of the project annually. FSRDC with participation of the General Auditor will prepare the terms of reference for the audit. The scope of the audit will cover the activities performed by FSRDC at central level and any partner implementing organizations. 32. The annual audited financial statements together with the auditor's report and management letter covering identified internal control weaknesses will be submitted to IDA no later than six months after the end of each fiscal year. A single audit opinion will be issued with respect to project income and expenditures, Designated Accounts, and the IFR, The report will also include specific controls such as compliance with procurement procedures and financial reporting requirements and consistency between financial statements and management reports 78 and field visits (e.g., physical control). The audit report will thus refer to any incidence of non- compliance and ineligible expenditures identified during the audit mission. Audit Report Due Date (i) Not later than June 30 (2000 + N) if effectiveness has occurred before June 30 The Project audit reports (Audit report and (2000 + N-1). Management letter) (ii) Not later than June 30 (2000 + N+1) if effectiveness has occurred after June 30, (2000 + N- 1) Financial covenants 33. The following financial covenants apply: (a) The Recipient shall establish not later than three months following the effectiveness Date and thereafter maintain or cause to be maintained a financial management system (including related staff, software and an internal auditor) in accordance with the provisions of Section 4.09 of the General Conditions. (b) The Recipient shall prepare and furnish to the Association as part of the Project Report not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the Association. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 4.09 (b) of the General Conditions. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made under the Project. The audited Financial Statements for each such period shall be furnished to the Association not later than six months after the end of such period. (d) The Recipient shall by not later than three months following the effectiveness Date, or any other later date agreed with the Association, contract an external auditor under terms and conditions and with qualifications and experience satisfactory to the Association. Fraud and corruption 34. The risk of fraud and corruption within the project activities is high given the country context and the nature and implementation arrangements of the project activities. A strong fiduciary arrangement has been designed and put in place to mitigate these risks. To mitigate the risk of fraud and corruption, Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 shall apply to the project. Moreover, FSRDC will implement an Anti-Corruption Plan, which will include measures to improve transparency such as providing information on the project status to the public, and encouraging the participation of civil society and other stakeholders. 79 List of conditionalities 35. Following is the effectiveness condition related to FM: The Recipient, through MINAS, has adopted a Project Implementation Manual, including a Project Financial and Accounting Manual and an Anti-corruption Plan, in a form and substance satisfactory to the Association Supervision plan 36. FM supervisions will be conducted over the project's lifetime. The project will be supervised on a risk-based approach. Supervision will focus on the status of financial management system to verify whether the system continues to operate well throughout the project's lifetime and to ensure that expenditures incurred by the project remain eligible for IDA funding. It will comprise inter alia, the review of audit reports and IFRs, advice to task team on all FM issues. Based on the current risk assessment which is Modest, we envisage one FM supervision mission per year. The ISR will include a FM rating of the project. An implementation support mission will be carried before effectiveness to ensure the project readiness. To the extent possible, mixed on-site supervision missions will be undertaken with procurement monitoring and evaluation and disbursement colleagues. 80 Annex 8: Procurement Arrangements CONGO, DEMOCRATIC REPUBLIC OF CONGO: Street Children A. General 1. Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers'' dated May 2004, revised October 2006, and the provisions stipulated in the Legal Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. 2. The World Bank's standard bidding documents (SBDs) will be used for all contracts involving international competition, including International Competitive Bidding (ICB) for works, goods and non-consultant services and the World Bank Standard Request For Proposals (SRFP) for all consulting firms estimated to cost the equivalent value of US$ 100,000 or more. Until such time that a national procurement system has been developed and its use for Bank- financed projects approved by the Bank, the World Bank's SBDs will also be used for contracts involving national competition, including NCB, and National SBD agreed with or satisfactory to the Bank, as specified in the PIM. The preparation of a PIM, satisfactory to the Bank, is a condition of effectiveness. B. Conditions to use the upcoming national procurement system 3. The main recommendations of the 2004 CPAR were to (i) prepare and approve a public procurement code, (ii) do a survey of the existing capacity on procurement, (iii) make a needs assessment of the institutional and human capacity requirements for public procurement in the country, and (iv) prepare and implement a plan of action for the procurement system reform. 4. Hence the Government is currently working on a new procurement code and progress in implementing the action plan for this reform is very encouraging. It is expected that the new code will be approved and implemented by mid-May, 2010. The most important steps achieved to date include the following: (i) the draft national procurement code has been completed and submitted to the National Assembly for final review and approval; (ii) the highest authorities of DRC have demonstrated that they are very committed to the reform agenda (e.g. the National Assembly will have a special session to discuss the proposed new national procurement code); and (iii) funds will be available to put in place the new institutions (contract committees within the line ministries, prior reviewing entity and regulatory body), train staff and conduct the first audit of the system. 5. Therefore, once the new procurement code is adopted by the Government and has been reviewed and found satisfactory by the Bank, it will be applicable to all contracts that are not advertised internationally. For this purpose, the Bank procurement team will identify and clarify clauses of the said code that are not entirely or partially applicable to a Bank-financed project, 81 and propose appropriate modifications. These modifications would be set out in an agreement between the Government and the Bank. C. Procurement methods 6. Procurement of Works: Works to be procured under this project would consist of small works only, such as the expansion of the FSRDC office space to accommodate staff from the project PIU. The procurement will be done using the Bank's Standard Bidding Documents (SBD) for all ICB and National SBD agreed with or satisfactory to the Bank. Small simple works may be procured by requesting at least three written quotations from qualified contractors. 7. Procurement of Goods: Goods to be procured under this project would include: office equipment for the PIU (furniture, computers, photocopy machine, etc.) and vehicles for the PIU. The procurement will be done using the Bank's SBD for all ICB and National SBD agreed with or satisfactory to the Bank. Small value goods may be procured under shopping procedures. United Nations Agencies and Direct Contracting may also be considered with the Bank prior review and approval. 8. Procurement of Services (other than consultants' services): Services (other than consultants' services) to be procured under the project will include services for the maintenance of office equipment. The procurement will be done using the Bank's SBD for procurement of services for all ICB and National SBD agreed with or satisfactory to the Bank. Some of these services may be contracted under simplified procurement methods and procedures as defined in the implementation manual. 9. Selection of Consultants: Consultants' services required would cover consultancies for, among others: (a) the provision of comprehensive support services to street girls (e.g., shelter, medical, including peri-natal care, psychosocial counseling, family reunification); (b) social marketing campaigns aimed at preventing children from ending up in the streets; (c) community mobilization; (d) radio production; (e) training; (d) monitoring and evaluation, including the establishment of computerized MIS. 10. Service providers, including NGOs, CBOs, and public sector services, may be employed, in partnership with smaller local organizations at field level, to provide facilitation and community capacity development services across the project area. The procurement methods and procedures to be used by these entities will be defined and described in the PIM. It is expected that for the implementation of Component A and B, calls for proposals will be issued at the beginning of the project to select one NGO per commune and per service (either prevention or assistance). NGOs will be encouraged to partner with other, probably smaller, NGOs or FBOs so as to ensure a greater range of services and a better coverage of the commune. Contracts with the NGOs will specify performance indicators that will have to be upheld for the continuation of the contract for the project life. While this approach will limit the number of NGOs that will benefit from the project, it will also facilitate continuity and consistency. 82 11. Least-Cost Selection (LCS) may be used for selecting consultants for assignments of a standard or routine nature (audit services) where well-established practices and standards exist estimated to cost less than US$200,000.00. 12. All services of individual consultants (IC) will be procured under individual contracts in accordance with the provisions of paragraphs 5.1 to 5.4 of the Guidelines. 13. Short lists of consultants for services estimated to cost less than US$ 100,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 14.. Training: This category would cover all costs related to the carrying out of training program for public sector services staff, NGOs, CBOs for sustainability purposes. Training programs would be part of the Annual Work Plan and Budget and will be included in the procurement plan. Prior review of training plans, including proposed budget, agenda, participants, location of training and other relevant details, will be required only on annual basis unless otherwise agreed during routine supervision. 15. Operating Costs: Operating costs shall consist of operation and maintenance costs for vehicles, computers and equipment; insurance, travel costs, and travel allowances to staff and Steering Committee members involved in the project implementation and supervision, electricity and telephone, among others. Operating costs, made within one year prior to the effectiveness and on or after April 15, 2010, up to an aggregate amount not to exceed $100,000 will be financed on a retroactive financing basis. 16. The procurement procedures and SBDs to be used for each procurement method, as well as model contracts for works and goods procured, will be included in the Implementation Manual to be prepared by the Borrower. D. Institutional arrangement for procurement and capacity of the executive unit to handle procurement 17. Institutional arrangementsfor procurement. Given its satisfactory performance to date, the project coordination unit of the Emergency Social Action Project, FSRDC, will be the procurement agent for the Street Children Project until the new institutions recommended by the new national procurement law are in place; at this time, a decision will be taken on the most appropriate approach to be used depending on the conclusion and recommendations of a procurement audit of contracts funded by the national budget. 18. Assessment o the agency's capacity to implement procurement. This is an existing f implementing agency that capacity on procurement has been found acceptable for the Bank; the unit has shown qualification and experience in handling procurement activities of the social sector project and it is envisaged the do the same thing for the additional financing of the same project. 83 E. Assessment of the risks and measures to mitigate 19. The risk factors for procurement performance include those posed by the country context and those due to the low procurement capacity of the Ministry of Social Affairs. This ministry may be in charge of procurement activities of the project implementation when the new procurement law is enforced. In that sense, a risk assessment is needed. Indeed, in terms of the country context, the Country Procurement Assessment Review (CPAR) and experience of other IDA- and International Financing Institutions (1FIs)-funded projects indicate that procurement on the project is likely to involve the following risks (if procurement is transferred to the Ministry): 0 a weak governance environment, weaknesses in accountability arrangements, and an overall lack of transparency in conducting procurement processes creates significant risks of corruption, collusion and fraud; 0 the administrative system as it operates in practice creates opportunities for informal interference in the procurement process by senior officials - creating opportunities for waste, mismanagement, nepotism, corruption, collusion and fraud; government officials likely to be involved in project procurement through tender committees may not be familiar with procurement procedures; 0 there is neither a national control system ensuring that the rules are respected nor a regulatory body to handle complaints from bidders and Overall project risk for procurement is currently rated low but would become high if transferred to MINAS. Measures to mitigate the identified risks 20. The following strategy has been devised in the project to mitigate the procurement risks: 0 To mitigate the risks of collusion, fraud, corruption, waste and mismanagement, implementation arrangements will be geared to achieve a high level of transparency in project implementation. 0 To mitigate risks related to the low level of capacity both at the PIU and MINAS, all proposed procurement decisions above a given threshold (to be determined at project effectiveness) will be subject to mandatory review by a contract committee composed of representatives from Ministry of Finance, Ministry of Budget, Ministry of Social Affairs, excluded staff involved in evaluation and contract award processes. All ICB contracts for goods and works and all consulting contracts costing US$ 200,000 and above, will be published in the UNDB and DgMarket, in accordance with World Bank Guidelines; 0 The PIU will apply a "one-strike" policy to all contractors and consultants - any case of complicity in corruption, collusion, nepotism andor fraud will lead to dismissal, disqualification from all further project activities, and prosecution; 84 A project launch workshop will be carried out for all project's stakeholders including MINAS staff, relevant staff of all other entities involved in project implementation, NGOs, religious organizations, and civil society; For all procurement, the Project Implementation Manual, to be adopted by effectiveness, will include procurement methods to be used in the project along with their step-by-step explanation as well as the standard and sample documents to be used for each method. F. Frequency of Procurement Supervision 21. In addition to the prior review supervision to be carried out by the Bank staff, the capacity assessment of the Implementing Agency has recommended quarterly supervision missions during the first 18 months. These will include field visits to carry out the post-review of procurement actions. Therefore, missions in the first 18 months shall include a Bank Procurement Specialist or Consultant. G. Procurement Plan 22. A procurement plan for the implementation of the Project was agreed between the Recipient and the Project team during the negotiations. This plan covers the first 18 months of the Project and indicates the procurement methods to be used for each activity. This plan will be available at the recipient web site and the Bank external website. The Procurement Plan will be updated, with the prior approval of the Bank, on an annual basis or as required by the Bank to reflect the project implementation needs and improvements in institutional capacity. 23. The thresholds for the use of the various procurement and selections methods regardless of the procuring entity are summarized below: (a) Contractsfor w o r k and goods Procurement Method Threshold for the method in 1000 Bank review in 1000 us% (a) International CompetitiveUS$ 3,000 or more for works, US$ All contracts Bidding (ICB) 500 or more for goods other than drugs and US$300 for drugs and textbooks (b) National Competitive All contracts estimated below the The first two contracts Bidding ICB threshold and above the shopping ceiling (c) Shopping Below US$ 100 for works and US$ Post review 50 for goods ( d) UN procurement agencies NIA (e) Community participation Implementation manual to Post review in procurement determine the process (f) Direct contracting NIA All contracts 85 (b) Contracts for consultant services Selection Bank review in 1000 US$ methods in 1000 Procurement Method . US% (a) Selection based on quality NIA All contracts estimated above and cost (QCBS) US$ 100 (b) Least Cost Selection NIA All contracts estimated above (LCS) US$ 100 (c) Selection Based on Fixed 100 All contracts estimated above Budget (SBFB) US$ 100 (c) Selection Based on 100 All contracts estimated above Consultant Qualifications US$ 100 (SCQ) (d) Individual Consultants NIA All contracts estimated above (IC) US$50 (f) Single Source Selection NIA All contracts In addition: 0 Consultant services estimated to cost above US$ 100,000 equivalent per contract for firms and US$ 50,000 for individuals and all contracts awarded on a single source basis (SSS) will be subject to prior review by the Bank 0 Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$ 100,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 26. Procurement would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and "Guidelines: Selection and Employment of Consultants by Worid Bank Borrowers'' dated May 2004, revised October 2006. Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15,2006 shall apply to the project. E. Details of the Procurement Planning Involving International Competition for Goods, Works, and Services (other than Consultants' Service): No transactions in the Project's procurement plan are foreseen to involve international competitive bidding. 86 F. Project's Procurement Plan for the first 18 months of project period (September 1, 2010 to March 31,2011) I 1 2 3 4 5 6 7 8 9 Ref. Contract Estimated Procurement Pre- Domestic Review by Expected Comments Yo. Description Cost Method Qualification Preference WB Bid (US$) (yeslno) Prior/ Opening Post Date 5 Alterations of 37 200 Shopping N/A Yes Post 06/06/10 containers for the project office Total 37 200 1 2 3 4 5 6 7 Ref, Name of the assignment Estimated Selection Review by Expected Comments No. Cost (US$) method the WB proposal Priori/ post submission date 1 Project coordinator 86 400 IC Prior 09/01/10 Expected date of contract start 2 Specialists in Child protection (2) 80 640 IC Prior 09/01/10 Expected date of I contract start 3 I Specialist in M & E I 40320 I IC I Post I 09/01 1/10 I Expected date of contract start 4 Accountant 40 320 IC Post 09/0 1/10 Expected date of contract start 5 Prevention Services 1 000 000 SBFB Prior 10/15/10 (4firms) 6 Assistance Services (8 firms) 2000000 QCBS Prior 10/15/10 7 Broadcast production 400 000 QCBS Prior 11/10/10 8 Legal Training 40 000 IC Post 11/01/10 Expected date of contract start 9 Development of child protection 50 000 IC Prior 12/01/10 Expected date of standards contract start 10 Baseline Survey 100 000 CQ Prior 10/3O/10 11 Financial audit for the first 3 years 300 000 LCS Prior 11/10/10 of the project 12 Organizational audit of the Ministry 150 000 LCS Prior 11/10/10 TOTAL 4 287 680 General Total 4 410 485 87 24. It should be noted that: (a) Consultancy services estimated to cost above US$lOO,OOO per contract for firms and single source selection of consultants will be subject to prior review by the Bank. (b) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. 25. The agreed and approved procurement plan will determine procurement methods and the contracts to be submitted to Bank prior review and no objection. 88 Annex 9: Economic and Financial Analysis DEMOCRATIC REPUBLIC OF CONGO: Street Children 1. A precise economic analysis is difficult to present due to the lack of data on DRC and the dissimilarity of the few countries for which data are available. However, both the assistance and the preventive components of the project aim to decelerate the development of a phenomenon with considerable and rising costs to society. Given data availability, a comprehensive estimate of these costs would involve the calculation of at least the following factors. 2. First, a child lost to the streets is unlikely to provide anything beyond a marginal productive contribution to society, normally derived from petty activities like occasionally washing car windows, recycling garbage or transporting goods. The lifetime earnings of an educated and protected citizen are thus a loss to the economy. Second, street children incur a range of direct costs. These are: a) property loss due to street children's activities (theft, vandalism, littering), b) considerable cost of police and judiciary activity responding to street children and especially gang activities (general patrolling, guarding of property, direct confrontations, arrests, jailing, trials, imprisonment), c) profit losses incurred by reduced public security limiting the activity and mobility of business people and potential customers, d) public health costs related to the spread of contagious diseases (e.g., related to the lack of toilet facilities), as well as the imputed costs of the (often voluntary) services offered by constrained health professionals to the street children themselves and their often equally marginalized victims (violence, rape, pregnancies, complications related to illegal abortions, drug-related illnesses, HIV/AIDS and other STDs), e) spill-over effects of the spread of drugs to other marginalized groups, and f ) Intergenerational costs as street children give birth to children who will be disadvantaged from the very beginning of their lives. 3. In addition to this, the demoralization and disillusion their daily presence represents to society around them is likely to severely affect social capital. 4. The phenomenon of street children worldwide develops along a predictable path towards gradually more violent gangs, eventually representing a counter society at permanent war with adult society, its' police and authorities. A spontaneous reversion of this development is yet to be documented, and the costs of a broader preventive effort providing safety nets and protection to marginalized groups must be seen against the backdrop of this scenario. 5. The success rate of interventions for children already in the street is low, as mentioned, and largely depends on the projects' ability to motivate the children themselves into wanting to change their lives. Project reviews have shown that when street girls become pregnant they more often than other street children are able to mobilize such a motivation. This may be decisive to the success of efforts to get them (and their babies) out of their situation. The targeting of the "assistance" component of the project should thus have a better possibility to succeed than similar interventions targeting more broadly. 89 6. While a direct comparison is impossible, a preventive program aiming to reduce the likelihood of marginalized children in the US drifting into anti-social behavior was found to be a hugely profitable social i n v e ~ t m e n tMore than 20 years of evaluation shows a return of US$7 .~~ for each dollar invested, the main share of savings being in the judicial sector. Children taking part in this type of preventive programs also report lower use of ERs and social benefits, fewer teenage pregnancies, stronger commitment to their education, more stable jobs and more stable and lasting relationships. 41The program evaluated is the Peny Preschool Project i Ypsilanti, Michigan. See: Moran, Ricardo, and Claudio n de Moura Castro, 1997. 90 Annex 10: Safeguard Policy Issues DEMOCRATIC REPUBLIC OF CONGO: Street Children The project does not trigger any safeguard policies. 91 Annex 11: Project Preparation and Supervision DEMOCRATIC REPUBLIC OF CONGO: Street Children Planned Actual PCN review 05/15/2009 12/08/2009 Initial PID to PIC n.a. 02/19/2010 Initial ISDS to PIC n.a 03/05/2010 Appraisal 03/18/20 10 03/19/2010 Negotiations 04/13/20 10 04/2 1/20 10 BoardRVP approval 05/27/20 10 Planned date of effectiveness 08/3 1/2010 Planned date of mid-term review 02/28/2013 Planned closing date 08/3 1/20 15 Key institutions responsible for preparation of the project: Ministry of Social Affairs, Humanitarian Action and National Solidarity Anne Mossige Senior Social Protection Specialist, TTL AFTSP Maurizia Tovo Lead Technical Specialist AFTSP John Elder Lead Social Protection Specialist HDNSP Fanta Toure Operations Analyst AFRVP Astania Kamau Language Program Assistant AFTSP Lucie Bobola Team Assistant AFCC2 Yvette Kandi Shungu Team Assistant AFCC2 Jean Charles Kra Senior Financial Management Specialist AFTFM Bourama Diaite Senior Procurement Specialist AFTPC LCa Allaba Salmon Consultant AFTSP Gilberte Kedote Consultant AFTSP Lompole Bayaki Boss'uki Consultant HDNSP Irene Diata Esambo Consultant AFTSP Aissatou Diallo Finance Officer CTRFC Daria Goldstein Sr. Counsel LEGAF Bank funds expended to date on project preparation: 1. Bank resources: $275,000 2. Trust funds: 0 3. Total: $275,000 Estimated Approval and Supervision costs: 1. Remaining costs to approval: $60,000 2. Estimated annual supervision cost: $150,000 92 Annex 12: Documents in the Project File DEMOCRATIC REPUBLIC OF CONGO: Street Children Hounsounou, Gilberte, et al, 2009: "Etat des lieux des interventions et intervenants ciblant les enfants de la rue A Kinshasa", mimeo. MCdecins du Monde, 2009: "La rue, c'est la chance? EnquCtes sur l'exploitation et les violences sexuelles des jeunes filles des rues de Kinshasa", mimeo. Ministbres des Affaires Sociales, Action Humanitaire et SolidaritC Nationale, dCcembre 2009 : Project de dCcret portant rbglementation de 1'Action Sociale. , Ministbres des Affaires Sociales, Action Humanitaire et SolidaritC Nationale, octobre 2009 : Plan d'Action Nationale en faveur des orphelins et enfants vulndrables vivant en RDC (201 1-2014 PAN OEV). Ministbres des Affaires Sociales, Action Humanitaire et SolidaritC Nationale, 2009: Rapport synthbse du processus RAAP (Rapid Assessment, Analysis and Action Planning)-RDC (draft). Ministhres des Affaires Sociales, Action Humanitaire et SolidaritC Nationale, 2004: StratCgie nationale de protection sociales des groupes vulnCrables. Ministbre du Genre, Famille et Enfant, 2009 : Loi no. 09/001 du 10janvier 2009portant protection de 1'enfant. Moran, Ricardo, and Claudio de Moura Castro, 1997: "Street-children and the Inter-American Development Bank: Lessons from Brazil", Discussion Paper, Social development Division, Sustainable Development Department, Inter-American Development Bank. Mossige, et al, 2003 : "Etude pilote de risques et de la vulnCrabilitC en RCpublique DCmocratique du Congo. Rapport final. Salmon, Lea, et al. 2009: (( Les enfants de la rue h Kinshasa D, mimeo. UNDP, 2008: Statistical Update, UNDP Human Development Report 2007/8 UNICEF, 2006: Recensement des enfants de la rue de la ville province de Kinshasa. 93 Annex 13: Statement of Loans and Credits CONGO, DEMOCRATIC REPUBLIC OF: ProjectName Difference between expected and actual Original Amount in US$ Millions disbursements ProjectID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev'd PO92724 2010 DRC Ag Rehab & Recovery SIL (FYlO) 0.00 120.00 0.00 0.00 0.00 117.46 0.00 0.00 P115642 2009 rj DRC:Emerg P o to Mitig Impact Fin Cris 0.00 100.00 0.00 0.00 0.00 7.76 6.58 0.00 PI00620 2009 DRC- Forest and Nature Conservation SIL 0.00 64.00 0.00 0.00 0.00 , 62.86 -5.30 0.00 PO91092 2009 DRC Urban Water Supply Project (FY09) 0.00 190.00 0.00 0.00 0.00 193.45 23.53 0.00 I P 01745 2008 DRC- Pro-Routes (FY08) 0.00 50.00 0.00 0.00 0.00 42.80 10.48 0.00 P104041 2008 DRC-Enhancing Governance Capacity 0.00 50.00 0.00 0.00 0.00 36.78 4.38 0.00 (FY08) P104497 2007 DRC Em. Urban & Social Rehab ERL 0.00 180.00 0.00 0.00 0.00 79.64 60.11 0.00 (FY07) PO86294 2007 DRC-Education Sector Project (FY07) 0.00 150.00 0.00 0.00 0.00 126.24 113.57 0.00 PO88751 2006 ZR-Health Sec Rehab Supt (FY06) 0.00 150.00 0.00 0.00 0.00 70.53 68.02 0.28 PO88619 2005 DRC-Emergen Living Condtion Impr 0.00 82.00 0.00 0.00 0.00 30.99 29.25 0.00 (FYW PO86874 2005 DRC Emerg Soc Action (FYO5) 0.00 95.00 0.00 0.00 0.00 40.03 2.35 0.00 PO78658 2004 DRC-Emerg Demob Reintegr ERL (FY04) 0.00 150.00 0.00 0.00 3.26 26.82 -17.33 28.92 PO81850 2004 DRC-Emerg Econ & Soc Reunif ERL 0.00 214.00 0.00 0.00 0.00 10.83 -4.70 6.59 (FY04) PO825I6 2004 ZR-Multisectoral HIV/AIDS (FY04) 0.00 102.00 0.00 0.00 0.00 27.01 9.93 0.00 PO71144 2004 DRC Priv Sec Dev Competitiveness 0.00 180.00 0.00 0.00 0.00 75.07 6.55 38.80 (FY04) . I Total: 0.00 1,877.00 0.00 0.00 3.26 948.27 307.42 74.59 CONGO, DEMOCRATIC REPUBLIC OF STATEMENT OF IFC's Held and Disbursed Portfolio In Millions of US Dollars Committed Disbursed , IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. Adastra Miner... 0.00 0.09 0.00 0.00 0.00 .1 00 0.00 0.00 2003 Celtel DROC 8.57 0.00 0.00 0.00 8.57 0.00 0.00 0.00 2005 Kolwezi 0.00 4.80 0.47 0.00 0.00 4.46 0.47 0.00 2005 PCB Congo 0.00 0.45 0.00 0.00 0.00 0.45 0.00 0.00 Total portfolio: 8.57 5.34 0.47 0.00 8.57 4.92 0.47 0.00 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. Total pending commihnent: 0.00 0.00 0.00 0.00 Annex 14: Country at a Glance CONGO, DEMOCRATIC REPUBLIC OF: Street Children Congo, Dem. Rep. at a glance W9IO9 Sub- P O V E R T Y and S O C I A L C o n g o , Saharan Low- Dem. Rep. Developmntdtmonb Afrlca Income 2008 Population, mid-year (miliions) 84.3 88 973 GNIpercapita (Atiasmefhod, US$) 150 Life expectancy 1082 524 GNI (Atlas mefhod, US$ billions) 9.8 885 50 Average annual growth, 2 0 0 2 - 0 8 T Population (%) 2.9 2.5 2.1 Laborforce(%) 3.3 2.8 2.7 M o a t recent e s t l m a t e (latest year available, 2 0 0 2 - 0 8 ) enrollment Poverty (%ofpopuiafio n beb w nafio nal po verty line) Urban pa puiatio n (% o F total popuiafio n) 32 36 29 Life expectancy at birth (pars) 48 52 59 L . Infant mortality (per 1000 live births) 126 89 78 Childmalnutrition (%of children under5) 28 27 26 Access to improved water source Access to animproved watersource(%ofpopulation) 46 58 67 Literacy (%ofpopulation age T y 62 84 Gross primary enrollment (%of school-age population) 90 98 96 M ale 99 03 02 Female 82 93 95 KEY E C O N O M I C R A T I O S and L O N G - T E R M T R E N D S 1988 1998 2007 2008 Economlcratlo3 GDP (US$billions) 8.9 6.2 0.0 ns Gross capital formatiorVGDP 14.4 2.1 8.5 23.9 Exports of goods and sewicesiGDP 25.5 29.8 27.2 23.3 Trade Gross domestic savingsiGDP 12.1 -10 8.8 8.6 Gross national savingslGDP 3.5 6.8 121 19 T Current account baiancelGDP -6.7 a.7 -7.0 -15.4 Interest paymentslGDP 2.0 0.3 2.8 2.5 Total debtiGDP 96.6 212.3 123.9 05.3 Total debt sewicelexports 14.4 15 8.1 20.4 Present value of debtlGDP 87.5 80.3 Present value of debtlexports 2914 295.8 Indebtedness 1988-98 1998-08 2007 ZOO8 2008-12 (average annualgrowth) GDP GDP percapita -5.9 -9.2 3.2 0.3 6.3 3.3 6.2 3.3 5.3 13 - - C- , Dan. Rep L o w - i m srwp Exports of goods and sewices -6.4 7.4 9.9 4.9 -4.9 ' ' (%of GDP) Agriculture Industry Manufacturing Services Household final consumption expenditure 1988 29.8 30.2 113 40.0 75.2 47.5 20.9 6.1 316 92.9 2007 42.5 28.4 6.4 29.1 60.9 40.2 26.0 5.5 318 80.4 y--- GrowthofcapltciandGDP(%) ' 0 03 04 05 OB 07 08 General gov't final consumption ex$mditure 12.7 8.1 0.4 no -0cF - C O O P Imports of goods and sewices 27.6 32.9 37.9 38.6 1988-98 1998-08 2007 ' 2008 Growth of exports and Imports (%) (average annualgrowth) Agriculture 2.5 0.0 3.0 3.0 industry -0.0 7.1 no 7.1 Manufacturing -119 3.5 8.0 Services -P.6 9,0 ns 0.0 Household final consumption expenditure -5 7 I - -15 7 -lo 03 04 05 OB 07 General gov't final consumption expenditure Gross capital formation -0 3 Exporls -Clmwrtr Imports of goods and sewices -144 209 92 157 ~ o t 2008 data are prelimlnaryestimates e This table was produced from the Development Economics LDB database *Thediamonds showfourkeylndicators inthecountry(inbold)comperedmth its income-groupaverage ndataaremissing,thediamondmll be incomplete 95 Congo, Dem. Rep. P R I C E S and GOVERNMENT F I N A N C E Domestic prices 1988 1998 2007 2008 Inflation (a) 35 I (%change) 30 Consumer prices 29.1 25 Implicit GDP deflator 916 26.9 211 8.4 20 15 G o v e r n m e n t finance 10 5 (%of GDP, includes cunent grants) 0 Current revenue 5.9 22.7 212 Current budget balance Overall surplusldeficit -62 -6.2 P.5 54 3.4 -15 I 03 - 04 05 GDP denator 06 -C- CPI 07 I TRADE I 1988 1998 2007 ZOO8 Exportandimport levels (USmill.) (US$millions) Totaleworts (fob) 181 228 2,335 3,500 T Copper 1241 130 3.000 Coffee 2.500 Manufactures 2.000 Total imports (cif) 775 2,864 3,053 1,500 Food 1,000 Fuel and energy 500 Capital goods 0 Ewort price index(2000=WO) 02 03 04 05 06 07 08 Import price index(2000=WO) #Expoiis llrnportr Terms of trade (2OW=WO) BALANCE of PAYM EATS (US$ millions) Exports of goods and services 1988 2,702 1998 1284 2007 2,846 2008 7,a7 Currentaccwnt balance toGDP(%) 0 I Imports o f goods and services 2,532 1340 3,767 8,857 3 Resource balance 80 -56 -921 -1749 6 Net income -750 -391 -356 -1263 v Net current transfers -n 32 583 1231 -12 Current account balance -591 -415 -694 -1,781 5 -I Financing items (net) 628 402 642 1792 -18 Changes in net reserves -37 0 52 -11 Memo: Reserves includinggold (US$ milfons) 60 522 68 Conversion rate (DEC, loca!AJS$) 6.23E-13 16 58.0 5632 E X T E R N A L D E B T and RESOURCE FLOWS I r I988 1998 2007 2008 Compositionof 2008debt(US$mill.) (US$ millions) Total debt outstanding and disbursed 8,562 8203 P.359 P,B9 IBRD 37 84 0 0 IDA 837 1261 2,402 2,437 Total debt service 392 B 543 641 IBRD 22 0 0 0 IDA 9 0 56 60 Composition o f net resourceflows Official grants P8 97 107 1522 Official creditors 346 0 -74 -136 Private creditors -8 0 -4 -7 Foreign direct investment (net inflows) 9 33 720 1000 Portfolio equity(net inflows) 0 0 0 0 M r l d Bank program Commitments 84 0 0 0 Disbursements 05 0 99 92 Principal repayments 8 0 36 42 E-IDA D-OUwrndblateral F-private Net flows 161 0 61 51 Interest payments P 0 16 $3 Net transfers 134 0 43 32 ~~~ Note This table was producedfrom the Development Economics LDB database w9/09 10°E 15°E 25°E 30°E CENT RA L A FRICA N REPUBLIC SUDAN To 5°N Ubang To Bangasso 5°N To i Kembe Bangui To Zongo Gbadolite BAS-UELE Juba Bondo Faradje NORD-UBANGI Uele Libenge Gemena Businga HAUT-UELE Titule DEM. REP. Buta Isiro Watsa Kiba li OF CONGO SUD- Aketi To Imese UBANGI Akula Lisala Pakwach Bumba ORIENTALE Wamba MONGALA C Mongbwalu Bunia UGAN DA angui Aruwimi ITURI on Banalia ng nga Lake o o . Bongandanga Oub Lulo Mts Basankusu TSHOPO Bafwasende Albert EQUATEUR Yangambi Beni ba É Q U AT E U R Kisangani Butembo Margherita Peak tum Wanie Rakula (5,110 m) 0° Mbandaka Boende 0° Mi C ON G O Tshu a pa NORD Lake G AB ON Lubutu Edward Lake L Lo m KIVU Lua u l Bikoro TS H U APAL Ikela mi a aba om NORD- b uil ela Victoria L ak Lowa a Ul KIVU Goma To Ruhengeri Inongo i Lake Kivu nd Betamba di Congo Yumbi To MAI-NDOMBE Kalima Bukavu Kibuye RWANDA Kutu Kindu SUD Buna KIVU KINSHASA Bandundu Lukenie Lodja Uvira To KI N S HA S A CI T Y Kasa i MANIEMA SUD- Bujumbura uru SANKURU Kama BURUNDI BANDUNDU Mangai Sank MANIEMA KIVU Ilebo KINSHASA Bulungu KASAI Malela Lusambo Kasongo Kenge KWILU K AS AÏ Lulimba 5°S CABINDA BAS-CONGO ORIENTAL 5°S Kikwit Idiofa (ANGOLA) To KO N GO CEN T R A L Mbanza-Ngungu Luebo L OM AM I Kongolo TAN ZAN I A Pointe- Boma KASAI Kananga ga Kw K Noire Mbuji- Luku Kalemie Lake KASAÏ- Mayi ilu ATLANTIC Matadi Feshi OCCIDENTAL u To Kabinda Kabalo Tanganyika OCEAN Damba Tshikapa Ka sa ORIENTAL TANGANYIKA LULUA Kw K KWANGO i Moba ang a Mwene-Ditu i Manono am o o DEMOCRATIC REPUBLIC Lom KATANGA Luv ua OF CONGO Kapanga H A U T- L O M A M I s. Pweto t Kamina Lueo M SELECTED CITIES AND TOWNS ba Lulua Lu PROVINCE CAPITALS* ANGOLA L Lake m Kilwa a Lu Mweru itu uff ira l ua NATIONAL CAPITAL Sandoa M Lubudi HAUT- 10°S RIVERS LUALABA KATANGA MAIN ROADS Kolwezi To 0 100 200 300 400 Kilometers Dilolo Likasi Luwingu ZAMBIA RAILROADS To Lu Lake lab ua Lucano a Malawi PROVINCE BOUNDARIES** 0 100 200 Miles Lubumbashi I IBRD 33391R1 M A L AW NOVEMBER 2007 INTERNATIONAL BOUNDARIES This map was produced by the Map Design Unit of The World Bank. *The creation of 26 new Provinces was approved by the ratification of the 2005 Constitution, to take effect by February, 2009. The existing 11 Province Capitals, shown with green circles, will retain their status, with the exception of Bandundu. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank ZA MBI A To Sakania Group, any judgment on the legal status of any territory, or any Kitwe Future Province Capitals are shown with white circles. endorsement or acceptance of such boundaries. **The existing 11 Province boundaries and names are shown in dark green; future in light green. 25°E 30°E