FOR OFFICIAL USE ONLY Report No: PAD2653 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON PROPOSED GRANTS IN THE AMOUNT OF SDR 17.2 MILLION (US$ 24.0 MILLION EQUIVALENT) AND US$ 2.0 MILLION CASA1000 MULTI-DONOR TRUST FUND TO THE REPUBLIC OF TAJIKISTAN FOR THE CASA1000 COMMUNITY SUPPORT PROJECT FOR TAJIKISTAN FEBRUARY 28, 2019 Social, Urban, Rural And Resilience Global Practice Europe And Central Asia 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: Jan 31, 2019) Currency Unit = SDR SDR 0.714 = US$ 1 US$1.401 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager: Kevin Tomlinson Task Team Leader(s): Janelle Plummer, Takhmina Mukhamedova ABBREVIATIONS AND ACRONYMS BFM Beneficiary Feedback Mechanism NSP Afghanistan’s National Solidarity Program BT Barqi Tojik O&M Operations and Maintenance CASA1000 Central Asia South Asia Electricity OP Operational Policy (WB) Transmission and Trade Project PCB Polychlorinated Biphenyl CASA1000 MDTF CASA1000 Multi-Donor Trust Fund PDO Project Development Objective CDA Community Development Adviser POM Project Operations Manual CDD Community Driven Development PPSD Project Procurement Strategy for CDF Community Development Fund Development CoI Corridor of Impact RPF Resettlement Policy Framework CSP CASA1000 Community Support Project SGM Subgrants Manual DA Designated Account TFP Training and Facilitating Partner DFID UK Department for International UNDP United Nations Development Programme Development USAID US Agency for International Development DRM Disaster Risk Management VPC Village Project Committee EA Environmental Assessment EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESPMU State Enterprise Project Management Unit for the Energy Sector FCV Fragility, Conflict and Violence FGD Focus Group Discussion FM Financial Management FY Fiscal Year GoT Government of Tajikistan GRM Grievance Redress Mechanism GRS Grievance Redress Service (WB) IA Implementing Agency IDA International Development Association IE Independent Evaluation IFR Interim Financial Report IPF Investment Project Financing ISP Implementation Support Plan JPC Jamoat Project Commission JDP Jamoat Development Plan KfW German Bank of Reconstruction Km Kilometer kV Kilovolt kW Kilowatt kWh Kilowatt hour LED Light Emitting Diode M&E Monitoring and Evaluation MIS Management Information System MoF Ministry of Finance NGO Non-Governmental Organization NPV Net Present Value NSIFT National Social Investment Fund of Tajikistan The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) TABLE OF CONTENTS DATASHEET I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Sectoral and Institutional Context .................................................................................................... 7 B. Relevance to Higher Level Objectives............................................................................................... 9 II. PROJECT DESCRIPTION.................................................................................................... 9 A. Project Development Objective ....................................................................................................... 9 B. Project Components ........................................................................................................................ 9 C. Project Beneficiaries ...................................................................................................................... 24 D. Results Chain ................................................................................................................................. 24 E. Rationale for Bank Involvement and Role of Partners ................................................................... 25 F. Lessons Learned and Reflected in the Project Design .................................................................... 26 G. Project Cost and Financing ............................................................................................................. 26 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 27 A. Institutional and Implementation Arrangements .......................................................................... 27 B. Results Monitoring and Evaluation Arrangements......................................................................... 31 C. Sustainability................................................................................................................................... 31 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 32 A. Technical, Economic and Financial Analysis ................................................................................... 32 B. Fiduciary.......................................................................................................................................... 33 C. Safeguards ...................................................................................................................................... 34 D. Citizen Engagement, Gender and Climate Change......................................................................... 36 V. KEY RISKS ..................................................................................................................... 37 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 38 ANNEX 1: Implementation Support Plan ............................................................................... 48 ANNEX 2: Economic and Financial Analysis ........................................................................... 52 ANNEX 3: Gender ................................................................................................................... 58 ANNEX 4: Project Map ........................................................................................................... 61 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Tajikistan CASA1000 Community Support Project for Tajikistan Project ID Financing Instrument Environmental Assessment Category Investment Project P165313 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 21-Mar-2019 29-Dec-2023 Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective is to increase the quality of, and access to, energy, social and economic infrastructure services, and to contribute to the strengthening of local governance in communities in the project area. Page 1 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Components Component Name Cost (US$, millions) Component 1. Rural Electricity Supply Improvements 10.00 Component 2. Community-led Investments in Socio-Economic Infrastructure 12.00 Component 3. Community Mobilization, Capacity Building and Local Governance 2.50 Component 4. Project Management, Monitoring and Evaluation, and Communications 1.50 Organizations Borrower: Republic of Tajikistan Implementing Agency: State Enterprise Project Management Unit for the Energy Sector (ESPMU) OJSHC Barqi Tojik National Social Investment Fund of Tajikistan (NSIFT) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 26.00 Total Financing 26.00 of which IBRD/IDA 24.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 24.00 IDA Grant 24.00 Non-World Bank Group Financing Trust Funds 2.00 Community and Capacity Development Support Program 2.00 Page 2 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Tajikistan 0.00 24.00 0.00 24.00 National PBA 0.00 8.00 0.00 8.00 Regional 0.00 16.00 0.00 16.00 Total 0.00 24.00 0.00 24.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2019 2020 2021 2022 2023 2024 Annual 0.00 2.50 6.00 7.50 5.50 2.50 Cumulative 0.00 2.50 8.50 16.00 21.50 24.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Social, Urban, Rural and Resilience Global Energy & Extractives, Fragile, Conflict & Violence Practice Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of Yes country gaps identified through SCD and CPF b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or Yes men's empowerment c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes Page 3 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance  Substantial 2. Macroeconomic  High 3. Sector Strategies and Policies  Substantial 4. Technical Design of Project or Program  Substantial 5. Institutional Capacity for Implementation and Sustainability  Substantial 6. Fiduciary  Substantial 7. Environment and Social  Substantial 8. Stakeholders  Substantial 9. Other  Moderate 10. Overall  Substantial COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Performance Standards for Private Sector Activities OP/BP 4.03 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Page 4 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ Legal Covenants Sections and Description Schedule 2, Section I.A.1 The Recipient shall cause the Project Implementing Entities to maintain, throughout the implementation of the Project, staff and management with experience, qualifications, responsibilities and resources acceptable to the Association. Sections and Description Schedule 2, Section I.A.2 The Recipient shall cause BT to maintain, during the entire implementation period, the ESPMU for purposes of Part 1 of the Project, with functions, terms of reference, staff and resources acceptable to the Association. Sections and Description Schedule 2, Section I.A.3a To facilitate the carrying out of the activities under Part 1 of the Project, the Recipient shall cause BT to enter into an agreement with ESPMU (“Project Implementation Agreement”), to delegate certain implementation functions under Part 1 of the Project, all under terms and conditions satisfactory to the Association. Sections and Description Schedule 2, Section I.E.1 The Recipient shall cause the Project Implementing Entities to carry out their Respective Parts of the Project in accordance with the Safeguard Documents. Conditions Type Description Effectiveness The Grant Agreement has been executed and delivered an all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled. Type Description Effectiveness The Subsidiary Agreements have been executed on behalf of the Recipient and the Project Implementing Entities. Page 5 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Type Description Effectiveness The Project Operations Manual has been prepared and adopted by the Project Implementing Entities, in form and substance satisfactory to the Association. Type Description Effectiveness The Subgrants Manual has been prepared and adopted by the NSIFT Project Implementing Entity, in form and substance satisfactory to the Association. Type Description Effectiveness The Subgrants Manual has been prepared and adopted by the Recipient and the Project Implementing Entity in a manner satisfactory to the Association. Type Description Effectiveness The Grant Agreement has been executed and delivered an all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of this Agreement) have been fulfilled. Type Description Disbursement No withdrawal shall be made under Category 3 until the funds under the Grant Agreement have been fully disbursed. Type Description Effectiveness Legal opinions confirming that the execution and delivery of each Legal Agreement on behalf of the Recipient or the PIEs have been duly authorized by all necessary actions and delivered, and that the Legal Agreement is legally binding. Page 6 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) I. STRATEGIC CONTEXT A. Sectoral and Institutional Context 1. The sectoral and institutional context for the CASA1000 Community Support Project (CSP) in Tajikistan emerges from three distinct areas of development activity: regional energy sector development, rural development and local governance/ decentralization. 2. Energy. Although Tajikistan has abundant water resources and relies on hydropower for 92 percent of its power supply, it continues to suffer from winter energy deficits due to variability in water flows and electricity demand. In the summer, heavy water flows create surplus electricity supply, while in the winter there are perennial power shortages. Since 2009, when Tajikistan’s power system was severed from the Central Asian power system, winter power outages have increased as households rely on electricity for heating. Despite 95 percent of the population being connected to the electricity grid, approximately 70 percent, predominantly in rural areas and small towns, is energy deprived, with the poorest quintile of rural households spending 25 percent of their monthly consumption expenditure on energy. To address this gap and leverage excess summer energy supply, Tajikistan entered into a regional agreement with the Kyrgyz Republic, Afghanistan and Pakistan to create a regional electricity market – the Central Asia South Asia Regional Electricity Market. As part of this agreement, summer surplus electricity resources from Central Asia will be supplied to meet unmet demand in South Asia. Central Asia will benefit from the revenue from this cross-regional trade. The first phase of this agreement is the Central Asia South Asia Electricity Transmission and Trade Project (CASA1000), which aims to facilitate electricity trade by putting in place the commercial and institutional arrangements and the transmission infrastructure to enable a trade of roughly 1,300 megawatts of electricity annually, with the revenue improving the reliability and efficiency of electricity services and increasing the country’s energy export potential. 3. The Tajikistan portion of the CASA1000 Transmission Line (about 170 km) extends from Sughd region in the north bordering the Kyrgyz Republic, to Khatlon region in the south, and covers eight districts and 24 Jamoats (subdistricts). The Transmission Line’s 3 km-wide Corridor of Impact (CoI) (i.e. the 1.5 km on either side of the Transmission Line) includes communities that are economically and socially vulnerable, with limited access to public infrastructure and services, as well as winter energy shortages.1 As the high-voltage CASA1000 Transmission Line will not itself provide electricity to communities located nearby, to share in the benefits expected from CASA1000 and create a supportive environment for the project, Community Support Projects (CSPs) are being implemented in all four countries party to CASA1000, including Tajikistan, as a means to mitigate social risk and maximize the socioeconomic benefits of the energy investments. Specifically, the CSPs will be predicated on a community driven development (CDD) approach to ensure that local investments are tailored to community needs and enjoy broad support. They will each also establish a longer-term benefits- sharing mechanism, the Community Development Fund (CDF), to benefit communities and individuals located within the area of CASA10002 through a portion of project revenues from the energy exported/imported during its commercial phase. Each CSP thus aims to put in place the foundation for community engagement in planning, decision making, implementation, and monitoring and evaluation (M&E) of local investments. In March 2014, the Bank approved the Afghanistan CSP (P149410) with US$40.00 million in financing from the Afghanistan Reconstruction Trust Fund. The preparation of CSPs in the other three CASA1000 countries was, however, postponed to align with the start of construction of CASA1000 infrastructure and to secure additional financing resources. The CSP for the Kyrgyz Republic (P163592) was subsequently approved by the Bank in April 2018, and the preparation of this Tajikistan CSP, and the Pakistan CSP was launched. 1 A full description of the energy sector context in Tajikistan is presented in the Tajikistan Country Partnership Framework, FY19-23. 2 Project Appraisal Document, Central Asia South Asia Electricity Transmission and Trade Project (CASA1000), March 7, 2014, p. 48; Master Agreement in relation to the CASA1000 Transmission Line, Article 20.6, page 64. Page 7 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 4. Rural development. 75 percent of Tajikistan’s population, and 80 percent of its poor, live in rural areas where access to quality energy, infrastructure and social services is lacking.3 Rural-urban disparity in access to social services is illustrated by access to drinking water: only 31 percent of rural households have access to safely managed water compared with 57 percent of urban households.4 Rural female-headed households are also at greater risk of poverty and deficits in service delivery than households headed by males. Rural women’s lower level of education (especially tertiary and vocational education) and high fertility rate increases their vulnerability.5 Agriculture generates 70 percent of employment, but informality and a lack of commercialization and value chains constrain growth potential. Women are also active in the informal agriculture economy which is typically associated with economic shocks, lower salaries, absence of social benefits, and fewer opportunities for skills development.6 With limited livelihoods opportunities and private sector investment, migration and remittances have become the backbone of the Tajik economy, including for the rural poor. According to World Bank and IMF data, Tajikistan is the most remittance-dependent country in the world. The rural youth labor inactivity rate is particularly high and growing. Youth ages 14-30 account for 35 percent of Tajikistan’s population, making Tajikistan the country with the youngest population in Central Asia.7 An estimated 41 percent are not in employment, education or training, pointing to high levels of youth inactivity. Migration has also had significant impacts on gender roles and family structure, including the emergence of a large number of de facto female-headed rural households.8 5. Local governance and decentralization. The institutionalization of community and civil society participation in local development planning is nascent in Tajikistan; community-driven development has not been embraced on a national scale, and demand-side mechanisms to hold subnational administrations to account for local service delivery are undeveloped. There are significant governance challenges with the legacy of civil war, the country’s topography, and limited public resources. Nevertheless, the country has established a legal framework that promotes “self-governing” communities, and subnational administrations to support local development. In its amended form, the legal framework9 assigns Jamoats a broad range of mandates: supporting communities to address local socioeconomic needs, strengthening local self- governance and accountability by delegating budget authority to Jamoat councils, introducing direct elections for Jamoat councilors, and allowing the retention of non-tax revenues and a percentage of local property taxes. Despite this, Jamoat capacity remains low, resources are negligible, and there has been little change on the ground. 6. Community institutions have proven to be an important source of resilience to address risks to stability and to fill gaps in infrastructure and services. The primary institution is the Mahalla, a self-governing small community/neighborhood, regulated by rules based on traditional practices and customs deeply rooted in the Central Asian Islamic tradition. While historically informal in nature, recent legislation allows Mahalla committees to register as social institutions, open bank accounts, organize community events, certify residency, and work directly with international, non-governmental, and government organizations. While Jamoat councils and Mahalla committees together constitute a local institutional basis through which donor projects can support transparent, inclusive local development investments, actual participation in Mahalla committees tends to be dominated by older men, with limited avenues for youth and women participation in local decision making, and no alternative institutionalized mechanism for ensuring the participation of women in local civic affairs. Ensuring young men and women benefit from community initiatives is particularly important given Tajikistan’s youth bulge and high levels of youth unemployment and inactivity. 3 National Bank of Tajikistan (2016) Statistics Bulletin; Tajikistan Statistics Agency, www.stat.tj/en. 4 Glass Half Full: Poverty Diagnostic of Water Supply, Sanitation, and Hygiene Conditions in Tajikistan, World Bank, Washington DC, 2017. 5 Asian Development Bank, Tajikistan Country Gender Assessment, 2016. 6 Jobs Diagnostic Tajikistan, World Bank, Washington DC, 2017. 7 Tajikistan Living Standard Panel Survey, Information Brief, State Committee on Statistics, World Bank, 2009/UNICEF, 2012, Situation analysis of children and women’s rights in Tajikistan (reanalysis of TLSS 2003, 2007, 2009 data). 8 Jobs Diagnostic Tajikistan, World Bank, 2017. 9 Law on the Bodies of Self-governance of Townships and Villages, No. 549, 2009 as amended. Page 8 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) B. Relevance to Higher Level Objectives 7. The CSP is aligned with the emphasis of the WBG FY19–23 Country Partnership Framework for Tajikistan. The project is closely linked to pillar 1: investing in people and strengthening social cohesion, through its inclusive, participatory, and community-driven approach, and its focus on improving access to services among the rural poor. Through its emphasis on local governance and local institutional capacity building, the CSP also contributes to pillar 2: improving the effectiveness of public institutions; and its fundamental underpinning of successful energy sector trade links to pillar 3: fostering investments and exports by taking advantage of emerging commercial opportunities. The project will also contribute to the Bank’s twin goals of eradicating extreme poverty and boosting shared prosperity through its focus on poverty reduction, particularly among youth and women, in rural areas of Tajikistan. Tajikistan is also a pilot under the IDA 18 Risk Mitigation Regime, which will provide incremental financing for activities proactively targeting fragility, conflict and violence (FCV) risks and reinforcing sources of resilience. Through its CDD design, and youth focused and tailored activities in Isfara border areas, the CSP will advance the capacity of the Government of Tajikistan (GoT) for participatory local development in high- risk regions. This approach will lay the basis for the Socio-Economic Resilience Strengthening Project (P168052) proposed for financing through the Risk Mitigation Regime. 8. In line with corporate mandates, the project contributes to WBG commitments to support and scale up climate action and increase the climate-related share of development financing. The project will also close gender gaps around voice and agency, and access to services. Citizen engagement is central to the CDD process. Through the engagement of target beneficiaries, the project is designed to enhance accountability, empower women and youth in decision-making roles, and ensure investments meet community needs. II. PROJECT DESCRIPTION A. Project Development Objective PDO Statement The Project Development Objective is to increase the quality of, and access to, energy, social and economic infrastructure services, and to contribute to the strengthening of local governance in communities in the project area. PDO Level Indicators i. Percentage of target communities with improved access to social and economic infrastructure as a result of project support ii. People provided with new or improved electricity service (corporate results indicator) iii. Percentage of beneficiaries in target communities who report that their engagement in decision making over project investments was effective iv. Percentage of young (women and men) beneficiaries who report that their role/voice in local governance has been enhanced as a result of project support v. Percentage of beneficiaries in target communities who report that the CSP is an effective response to the local impacts of the CASA1000 Transmission Line. B. Project Components 9. The project is structured around four components, with subcomponents, as follows: Page 9 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Component 1: Rural Electricity Supply Improvements (BT/ESPMU) 1A Village Electricity Supply Improvements in the Corridor of Impact 1B Isfara-1 Substation and Village Electricity Supply Improvements in Border Areas 1C Energy-related Project Management, Monitoring and Evaluation and Communications Component 2: Community-led Investments in Socio-Economic Infrastructure (NSIFT) 2A Subgrants to Communities in the Corridor of Impact 2B Subgrants to Communities in Border Areas Component 3: Community Mobilization, Capacity Building, and Local Governance (NSIFT) 3A Community Mobilization, Youth Engagement and Capacity Building 3B Support for Social Accountability and Transparency 3C Capacity Building for Improved Local Governance 3D Supplemental Facilitation and Capacity Building for Border Communities Component 4: Project Management, Monitoring and Evaluation, and Communications (NSIFT) 4A Project Management and Coordination 4B Monitoring and Evaluation 4C Communications Component 1: Rural Electricity Supply Improvements (US$10.00 million IDA) 10. Component 1 focuses on improving the quality of electricity supply in two target areas of the country: (i) the estimated 60 villages that lie within the CoI in the northern, central and southern segments of the Transmission Line as it passes through Tajikistan; and (ii) selected villages in the district of Isfara of Tajikistan, located near the Transmission Line as it passes through the Batken oblast in the Kyrgyz Republic. The GoT has prioritized support for the Isfara district as a key element of the project, given its proximity to the target areas of the CSP in the Kyrgyz Republic. This coverage will ensure that communities on both sides of the border are sharing in the benefits of CASA1000. Subcomponent 1A: Village Electricity Supply Improvements in the Corridor of Impact 11. While 93 percent of households in the villages within the CoI are connected to the electricity network, it is estimated that 75 percent suffer from low voltage, frequent outages and significant safety risks due to an aging system, especially during winter, when weather conditions are poor and demand is high. In addition, over the last decade, an estimated 10- 20 percent of villages have experienced significant population growth and are expanding to adjacent areas to accommodate these (mostly young) households. Village power supply has not been upgraded to ensure access to and quality of supply for these populations, and many households are not formally connected to the village power supply. The Village Power Supply Study, completed during preparation, notes that services would be significantly improved through efforts to replace: deteriorated lines, 90 percent of which have been in operation for over 50 years; replace outdated and potentially dangerous village-level transformers,10 67 percent of which have exceeded their useful life; replace deteriorating wooden poles; extend supply to new neighborhoods; and install street lighting, especially near public buildings and busy roads. 12. Scope and coverage. As the CASA1000 is a trade Transmission Line, and communities along the Transmission Line route do not benefit directly from the electricity being transmitted, the CSP will provide support for village-level energy investments for communities within the CoI by supporting local-level infrastructure and equipment improvements. Starting in Year 1, the CSP will support investments to improve year-round quality, reliability, and efficiency of electricity in the villages in the 3 km-wide CoI. Efforts to improve energy services will be supplemented by potential investments in street lighting and energy efficiency investments supported under Component 2. 10Village-level transformers are current transformers with 250 kVA (diapason between 25 and 630 kVA)/50 Hz of nominal voltage with higher primary capacity/voltage of 10kV or 6kV and secondary wiring (lower capacity/ voltage) of 0.6 or 04.kV to supply directly to village households. Page 10 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 13. Subcomponent 1A will fund improvements to the quality and reliability of electricity supply in CoI villages, by upgrading village-level infrastructure. Given the target village locations, all improvements will involve connections to the grid (not alternative forms of energy). Most work will involve: (i) replacement of old/installation of new 10 kV/0.4 kV transformers;11 (ii) replacement of deteriorated wood poles with concrete poles; and/or (iii) replacement/installation of new 10 kV lines and 0.4 kV self-supporting insulated lines. These investments in village electricity supply will help communities access a more regular and reliable power supply, reduce technical losses, improve voltage conditions12 in the main load areas of the target villages, and reduce the safety risks associated with an aging system. 14. Preliminary data13 for villages in the CoI suggests that in about 65 percent of villages, demonstrable improvements in service provision would be achieved through village-level investment in some, or all, of this bundle of electricity infrastructure and equipment. The study estimated that the cost of full replacement (for 60 villages) is about US$7.5 million; however, with a budget of US$4.7 million, the allocation of funds for village electricity improvements will be based on the cost of upgrading services towards an agreed service standard.14 Given budget constraints, the average allocation is US$78,000 per village for the 60 villages in the CoI. (Some villages will require less investment, but a cap of US$100,000 will be set for any one village.) The sequencing of the proposed upgrades will be set out in the Project Operations Manual (POM). Should communities wish to invest more than the allocation to further improve or expand their electricity services, this will be possible during a cycle of socioeconomic subgrants (funded under Component 2). In those villages where it is not feasible or technically practical to launch village electricity improvements in the first year, the project will offer alternative options under Component 2, allowing communities to choose from a relatively open menu of social or economic infrastructure; to carry over subgrant allocations to the following year; or postpone village electricity improvements until later in the project. 15. Procurement and installation. Barqi Tojik (BT), the state-owned power company, will identify the infrastructure and equipment gaps in the target villages and engage a technical consultant to carry out the technical design of the electricity improvements. The State Enterprise Energy Sector Project Management Unit (ESMPU) will be responsible for: (a) procuring power equipment supply and installation in villages either through open tender supply and installation contracting or based on supply of goods contracting; and (b) supervising the implementation of the installation. The procurement and installation procedures will be detailed in the POM. 16. Operations and maintenance. At completion, the assets funded under Component 1 will be inspected by BT and subsequently moved to the BT balance sheet. BT will thence be responsible for the operation and timely maintenance of all new equipment and infrastructure as part of BT’s regular practice for asset operations and maintenance (O&M), as defined by the BT statute, and legal and normative acts. IDA will not finance any tax liabilities for these assets. Subcomponent 1B: Isfara-1 Substation and Village Electricity Supply Improvements in Border Areas 17. The district of Isfara lies in the Ferghana Valley in the territory that extends between the borders of Uzbekistan and the Kyrgyz Republic (see map Annex 4). As noted above, this area borders the subdistricts receiving support from the CSP in the Kyrgyz Republic and has been explicitly included in the project to bring small infrastructure improvements to the Tajikistan side of the border (as well as that planned in the Kyrgyz Republic) and minimize any risks that could emerge. These densely-populated settlements struggle with unreliable electricity supply and low voltage, especially during winter. 11 Given budget constraints, Barqi Tojik will prioritize replacement/installation of transformers based on asset condition and technical requirements needed to achieve improvements in the quality and reliability of supply. 12 Voltage improvements are measured by measuring voltage at a substation busbar. 13 Village Power Supply Study for CoI villages in Tajikistan (December 2017). 14 The minimum agreed service standard is prescribed in the Rules on Design of Power Electric Installations and Guidelines on Power and Heat Supplied Areas and will be fully defined in the Project Operations Manual. Page 11 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) The system is not only old and constantly deteriorating, but also vastly overloaded. The project will target support for improvements in the quality of electricity supply to this area, including: (i) upgrades in the township of Vorukh (a Tajik enclave in the Kyrgyz Republic), and the border area of Chorkuh, which have a combined population of approximately 73,000; and (ii) the preparation of final designs and construction of a 110/10kV substation that will provide electricity to residents in and around the settlement of Vahdat, and increase the supply to the townships of Vorukh and Chorkuh. Subcomponent 1B has thus been included in the CSP to address a critical gap in the supply of electricity to communities in the Isfara area of Sughd region. 18. System expansion and reinforcement in Vahdat. Subcomponent 1B will provide financing for the construction and reinforcement of 110/10 kV BT distribution networks, including lines and substations, and supply networks to three new Mahallas. Specifically, investments in new supply-level 10(6) kV/0.4 kV transformers, and the installation of new 10(6) kV lines and 0.4 kV self-supporting insulated wire will help BT to meet load growth efficiently, address load supply constraints due to congestion in the distribution system, reduce losses, and improve the reliability and quality of the power supply. These investments will supply power to the newly-created settlement of Vahdat (2,700 households), and to neighboring Mahalla 14 va 15 (1,500 households) and Mahalla Nuravshon (500 households). 19. BT will engage a technical consultant in Year 1 to carry out the technical design of the new Isfara-1 Substation and the connection to the 110 kV line distribution networks, including lines and substations (all data will be included in the POM and use regional and national base cost comparisons). ESPMU will take responsibility for: (a) procuring the BT- specified equipment through open tender supply and installation contracting; (b) procuring power equipment for installation in villages based on supply of goods contracting; and (c) working with BT on the installation and launch of the village-level power supply. BT will carry out supervision site visits to review and confirm that equipment and infrastructure is properly maintained. At completion, the assets funded under Subcomponent 1B in Isfara will also be moved to the BT balance sheet. IDA will not finance any tax liabilities for the transfer of these assets. BT will be responsible for the operation and timely maintenance of all new equipment and infrastructure as part of the BT’s regular practice for asset O&M as defined by the BT statute, and legal and normative acts. 20. When fully operational, approximately 40 percent of the electricity passing through the Isfara-1 Substation will be used to provide electricity to the newly-created settlement of Vahdat, 40 percent will strengthen supply to existing neighboring villages located in Isfara district (including Mahalla 14 va 15 and Mahalla Nuravshon), and the remaining 20 percent will be a reserve for future development purposes. However, until Vahdat is completed, BT will utilize all 100 percent of electricity in strengthening the Isfara grid, thus providing more reliable power supply to neighboring townships, including Vorukh and Chorkuh. The estimated cost of the new Isfara-1 Substation with connection to the main grid 110kV line, and the transformers, poles and wires to connect the settlement and residents of Vahdat is US$4.0 million. 21. Finally, the subcomponent will support intra-village electricity supply improvements (similar to those described in para. 13) in the border areas of Vorukh and Chorkuh. Early estimates suggest that an estimated US$0.50 million investment is needed in Vorukh and Chorkuh to reach the agreed service standard defined in Subcomponent 1A. Subcomponent 1C: Energy-Related Project Management, M&E, and Communications 22. The project management, M&E and communications for the implementation of the electricity-related subcomponents will be included in the project as Subcomponent 1C. For further details, see Section III below. a. Project management. Subcomponent 1C will finance the incremental costs of ESPMU for the implementation, management and supervision of the electricity subcomponents described above, and for procurement, financial management (FM) and the overall management information system (MIS) defined in the POM. This subcomponent will also finance consultants to support BT and ESPMU in key areas, including safeguards, procurement and FM, a Page 12 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) specialized consultant for the detailed design and development of tender documents, equipment, operating costs, technical assistance, capacity building and training (including exchanges with other CSP projects in the Kyrgyz Republic and Afghanistan). ESPMU will also coordinate with the National Social Investment Fund of Tajikistan (NSIFT) to utilize the project beneficiary feedback mechanism (BFM) (including a grievance redress mechanism (GRM) for handling electricity-related complaints), which provides a formal channel for feedback from communities on any matter concerning the CSP, and specifically collects, processes and addresses safeguards complaints (see para. 47c below). b. Monitoring and evaluation. Subcomponent 1C will also support M&E activities to track and report on the results of the electricity-related investments of the project. ESPMU will report on all progress through semiannual reports and quarterly unaudited interim financial reports (IFRs) submitted to the World Bank. Interim monitoring will also be conducted by communities in line with CDD approaches, organized and funded through Subcomponents 3A and 3B. ESPMU will report and coordinate with NSIFT in a timely manner on all results included in the results framework for which they have responsibility and contribute to the project evaluations on electricity-related matters. c. Communications. This subcomponent will also include ESPMU contributions to the overall project communications activities described in Subcomponent 4C (see para. 59-60). Prior to CSP effectiveness, to raise community awareness of CASA1000 and the CSP ahead of the start of construction of the Transmission Line, a communications strategy, action plan, and key communications materials will be developed. This subcomponent will finance ESPMU contributions to communications efforts during project implementation. Working in coordination with NISFT, this will include outreach to communities to communicate the scope of village electricity investments, communications materials required on specific issues related to village electricity investments, and ESPMU staffing and related training activities. All activities will be discussed and agreed with the Communications Working Group. 23. Component outputs and indicators. Component 1 will directly improve access to and the quality of the electricity supply in at least 55 of the 60 villages in the CoI (about 90 percent of beneficiaries in the CoI); and in Isfara, it will benefit the population of Vahdat and surrounding Mahallas, as well as the border townships of Chorkuh and Vorukh. Outputs will be measured in terms of service to intended beneficiaries, improved voltage, reduced power outages, and transformers operating within rated limits and safety standards.15 Investments will also directly support efforts to mitigate climate change impacts.16 Component 2: Community-led Investments in Socio-Economic Infrastructure (US$12.00 million IDA) Subcomponent 2A: Subgrants to Communities in the Corridor of Impact 24. Rural villages in the corridor of impact face a range of service delivery deficits in relation to water and sanitation, irrigation, street lighting, and health infrastructure and services that could be addressed through small-scale investments. For example, none of the 60 villages in the corridor have street lighting, with significant impacts on the safety of children and the elderly in winter months. Piped water connections reach only limited segments of the rural population in contrast to over 80 percent of the population in urban areas.17 Rural women and female-headed households in Tajikistan are also more at risk for poverty and extreme poverty, and deficits in service delivery and the rural youth inactivity rate are high and growing. Small project investments in village-level socioeconomic infrastructure, including those prioritized by women and youth, can improve services, livelihoods and safety for communities in the CoI. 15 The safety standard will be specified by the required technical specifications of the equipment. 16 These investments will improve climate change adaptation (e.g. distribution network enhancements, which will both reduce energy use and enhance network resilience to climate change and natural disaster risks). 17 Glass Half Full: Poverty Diagnostic of Water Supply, Sanitation, and Hygiene Conditions in Tajikistan , World Bank, Washington DC, 2017. Page 13 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 25. Subcomponent 2A will finance subgrant allocations to villages to support priority small-scale socioeconomic infrastructure investments in the CoI villages in the 24 Jamoats traversed by the CoI. Communities will follow the participatory and inclusive decision-making processes set out in Component 3A. There will be two cycles of subgrants for investments in socioeconomic infrastructure, facilities, and services to be carried out in Years 2 and 3 of the project. In Year 4, residual funds will be made available for Jamoat-level investment in youth-led activities. 26. Subgrant allocation. The village subgrant distribution formula (for each of the two cycles of CDD investment) will be based on five criteria: (i) the target population size;18 (ii) poverty; (iii) conflict risks;19 (iv) a participatory assessment of tertiary infrastructure needs (“infrastructure gap”); and (v) proximity to the CASA1000 Transmission Line. The distribution formula will also ensure that sufficient resources are allocated to ensure that the investments can have impact. Villages will be banded into five groups, with each group receiving a grant amount driven by the formula. The subgrants for very small villages will be no less than US$20,000 per cycle, and for the largest villages (with populations over 4,500), no more than US$175,000 per cycle. The average investment per village will be about US$70,000 for each of the two CDD funding cycles. To provide flexibility to respond to local needs, communities may choose to carry over subgrants from cycle 1 to cycle 2 should they wish to accumulate their grant and undertake one subproject of a higher value. It will also be possible for neighboring villages to combine their resources and enter into joint projects (e.g. village roads). 27. Scope of investments. Village subprojects will be selected from an open menu of small-scale social and economic infrastructure and facilities. Eligible subprojects may include, but are not limited to, medical points, kindergartens, street lighting, school improvements, village-level water supply and sanitation,20 small-scale rehabilitation of on-farm irrigation systems and tertiary roads, and economic infrastructure, such as small-scale processing facilities for horticultural products, cold storage facilities or farm machinery workshops. Support for village electricity supply, in addition to that financed under Component 1, will also be eligible should communities wish to further improve electricity services. The types of work may involve new construction, improvement, upgrading, rehabilitation, demolition, repair, renovation, retrofitting or maintenance. It is intended that 50 percent of subprojects demonstrate benefits for youth and 50 percent for women. A negative list is included in the Environmental and Social Management Framework (ESMF) and in the Subgrants Manual (SGM). 28. To further support energy-related activities and to optimize the investments made under Component 1, energy efficiency measures will be a particular area of financing under Component 2. Communities will be supported to learn about the benefits of energy efficiency investments, for example: insulated doors and windows, energy-efficient water heaters/collectors, solar-powered cookers, clean heating stoves for public buildings (schools, kindergartens, health units, community centers), and LED or solar-powered street lighting systems. Subcomponents 3A and 3B will also include awareness-building activities that will help to promote changes in behavior and household investments that improve energy efficiency. Moreover, communities will be provided with any technical support needed so that they can request subprojects focused on energy efficiency. 29. Prior to the funding of subprojects, each village will provide evidence that the community mobilization and decisions over subprojects has been undertaken genuinely, that proposed subprojects meet poverty reduction and gender equity goals and are included in Jamoat Development Plans (JDPs), that they are technically viable (through a technical checklist), that any donor coordination has been carried out, and that subproject sustainability and O&M plans have been developed. 18 Where possible, Tajikistan Statistical Office Census Data for 2018 will be used. 19 The conflict risk will be defined at the district level and cover those districts in which high poverty rates overlap with FCV-related vulnerabilities, including: (i) occurrence of violent conflict during the civil war and in recent times; (ii) proximity of the border with Afghanistan; (iii) proximity to drug trafficking routes; (iv) high rates of recruitment to violent extremism; and (v) presence of violent extremist movements. 20 The CSP will collaborate closely with the Rural Water Supply and Sanitation Project to ensure coordination in target villages. Page 14 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) For oversight purposes, proposed subprojects will be verified in a community-level social audit meeting (para. 47a). To ensure subprojects benefit women, youth, and vulnerable groups, NSIFT will report on the cycle 1 subproject list and agree with the Bank on any actions (awareness building, revised procedures) needed to address a bias in the beneficiaries. Selection criteria will be detailed in the SGM. 30. Implementation. Implementation arrangements are described in Section III below. Following endorsement, Jamoat Project Commissions (JPCs) will receive support from NSIFT to prepare technical documentation (design and cost estimates, topographical surveys, etc.). Fees for technical design and documentation will be covered from this component. 31. Usage of residual funds by villages/Jamoats. Procedures will be developed to utilize residual funds from the allocated subgrant locally, after all payments have been made for village subprojects. This residual amount (the difference between the aggregate of the village subgrants to the Jamoat and the expenditure on the village subprojects in a Jamoat) up to a maximum of US$10,000 will be provided to Jamoats that have put in place a Jamoat Youth Development Plan and funding mechanism. This is intended to not only support youth-focused activities, but also to support the development of Jamoat financial management capacity and create incentives for the Jamoat Project Commission to: (i) disincentivize deals with contractors to bid at exactly the subgrant amount; (ii) discourage deliberate and unnecessary spending/overspending on extras; (iii) allow the benefit of any residual to stay with the village/Jamoat; and (iv) encourage Jamoat-level participation throughout the project. The capacity building for this purpose is described in Subcomponent 3C and the procedures for the use of these funds will be set out in the SGM. 32. Ownership, and operations and maintenance. The ownership of the infrastructure and facilities will be transferred to the balance sheet of line ministries (or Jamoats21) upon completion. The project recognizes the importance of a well- planned, appropriately-funded and timely O&M plan. All villages/Jamoats will develop O&M plans as a part of the subproject proposal. The O&M plans will clearly describe: (i) activities and measures envisaged for the subproject O&M; (ii) roles and responsibilities; (iii) frequency for carrying out the activities; and (iv) proposed mechanisms for covering O&M costs, such as a community O&M fund organized by the Village Project Committee (VPC). Most formal O&M activities will be undertaken by the district after handover of the facilities to the relevant government departments, however communities will supplement this with minor repairs and routine cleaning to ensure the effective use of the facilities (e.g. additional cleaning, minor repairs, gardening, etc.). Component 3 includes O&M training for the village O&M committee. 33. Community contributions. The project envisages that community contributions will take many different forms, mostly non-financial, consistent with the norms of Tajik society. Community contributions will be voluntary – they may be in the form of construction materials, equipment, furniture, labor or a financial contribution. Communities will select how they will contribute at two stages: immediately after they finalize the project selection and again during implementation. Subcomponent 2B: Subgrants to Communities in Border Areas 34. Subcomponent 2B will support village-level investments in communities in Chorkuh near the Kyrgyz-Tajik border, and the Tajik enclave of Vorukh, less than 10 kilometers inside the Kyrgyz Republic. As noted above, these areas are contiguous with the subdistricts receiving support from the CSP in the Kyrgyz Republic, and are areas that face social, economic and conflict risks.22 The proposed socioeconomic investments, of about US$3.00 million, are intended to promote inclusive local development platforms in these border areas in Tajikistan (see para. 27). Where possible, they will complement the community-level activity already approved in the Kyrgyz Republic CSP. These townships include 50 densely-populated 21 Livelihoods facilities (e.g. farm machinery repair shops) would likely be owned/managed by Jamoats and arrangements included in business plans; requirements for investment in livelihood facilities subprojects will be set out in the POM. 22 Located in the Ferghana Valley, Isfara has been the site of several incidents of conflict and violence over the last decade, including tensions over natural resource management, and cross-border disputes. Page 15 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Mahallas, with a total population of approximately 73,000. An estimated 800 households from these areas are moving to the Vahdat settlement described in Subcomponent 1B above. 35. Subgrant allocation. Groups of Mahallas in the townships of Vorukh and Chorkuh will benefit from two subgrant allocations (with an average of about US$135,000 per cycle) to finance village socioeconomic infrastructure subprojects and border development investments.23 The allocation of subgrants within Isfara will be based on four criteria: (i) population size; (ii) poverty; (iii) an estimate of tertiary infrastructure needs (“infrastructure gap”); and (iv) youth population. Communities will decide the proportion of investment committed to the border development investments described below (a target of 30 percent will be established). 36. Scope of investments. Communities will select from the same open menu of socioeconomic infrastructure subprojects described in Subcomponent 2A (see para. 27) – schools, kindergartens, medical points, water supply, rehabilitation of irrigation canals, etc. In addition, facilitation and capacity building support will be provided through Subcomponent 3D to encourage those small development investments that promote cooperation and contribute to reducing border area risks. These will be subprojects that: (i) promote opportunities for enhanced cross-border cooperation on development; (ii) improve community safety and security (e.g. street lighting, access bridges); (iii) promote livelihoods opportunities for youth (e.g. cold storage facilities); or (iii) complement community-based investments financed by the Kyrgyz Republic CSP on the Kyrgyz side of the border. Based on initial consultations in target villages, examples of subprojects with these outcomes may include border area electrification (e.g. street lighting on both sides of the border); transport connections (e.g. small repairs of roads or bridges that support cross-border trade and market connections, and improve safety and security); livelihoods facilities for border-area youth (e.g. small-scale storage and processing facilities, youth centers, and IT hubs); upgrading medical points and joint health campaigns (e.g. local health clinics and first-aid points or local health campaigns coordinated with actions by the Kyrgyz Republic CSP); and school renovations and repairs (e.g. rehabilitation and construction of schools and training centers in communities on both sides of the border, in coordination with the Kyrgyz Republic CSP).24 37. Selection of subprojects. The modality for the selection of village investments is detailed in Subcomponent 3A. In addition, communities will be facilitated and supported to identify border development investment subprojects for financing according to their priority. To this end, support will be provided for dialogue, development planning, training and capacity building (under Component 3D). 38. Implementation. The procedures for the implementation of village subproject investments in Subcomponent 2B will be similar to those established for the CoI villages described under Subcomponent 2A above. Fees for technical design and documentation will be allocated from Component 2. A Training and Facilitating Partner (TFP) (see para. 75) will support community-level capacity building activities for township officials and communities to enable them to play leading roles. 39. Component 2 outputs and indicators. This component will improve social and economic infrastructure in 60 CoI villages and the Isfara townships of Vorukh and Chorkuh. The estimated number of total beneficiaries of the 140-150 subprojects is over 200,000. Output indicators (disaggregated by gender, youth, and CoI/Isfara) to be reported through annual progress reports will include energy efficiency measures, climate change adaptation or mitigation, subgrants focused on border development investments, street lighting installed, subprojects completed on time, and O&M committees with sustainable O&M plans. 23NSIFT will work with the Jamoats and Mahallas in the early stages of the project to establish how the Mahallas will be combined for funding. 24These border-area development investments through CSPs in Tajikistan and the Kyrgyz Republic will seek to complement, and will be coordinated with, broader peacebuilding and cross-border dialogue being supported by the United Nations and other international partners in Isfara. The design and approval of these subprojects will also take into account recent lessons in engaging local, regional, and national authorities; and managing sensitivities related to project approvals, land ownership and oversight. Page 16 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Component 3: Community Mobilization, Capacity Building and Local Governance (US$2.00 million MDTF; $0.5 million IDA) 40. Consistent with the vision of the CSP in the CASA1000 Project Appraisal Document, Component 3 will support the mobilization of communities and youth, and local capacity building in the CoI and Isfara target areas. This will include the financing of activities that support participatory needs assessment, planning and prioritization, implementation and monitoring of communities, targeted support for youth engagement, and innovative social accountability mechanisms as well as capacity building for good local governance. The modality for the implementation of the outreach and community level work will include NSIFT staff supported by TFPs as described in Section III below. Subcomponent 3A: Community Mobilization, Youth Engagement and Capacity Building 41. Investment in small-scale infrastructure and facilities in villages in Tajikistan generally follows a top-down model of development with limited engagement of target communities; this project will bring a significant change in approach to village-level investment. The aim of Subcomponent 3A is to build capacity for CDD so that communities are empowered and mobilized, genuinely engage in decision making over the use of their project subgrant allocations and remain engaged throughout each subproject cycle. Activities will ensure that village investment decisions directly involve, and are inclusive of, all community members (including women, youth and the elderly) and are responsive to their needs. It is intended that this will establish a new, participatory model for community-driven village investment in Tajikistan. 42. Scope of activity. The annual cycle of activities financed by this subcomponent will include participatory needs assessment, participatory planning and prioritization/selection of village investments, participatory management, oversight and monitoring, and participatory O&M. This community engagement is expected to activate target communities and mobilize youth throughout the four-year construction period of the Transmission Line. For Component 1, communities will be facilitated (through a short mobilization process) to select from a closed menu of village electricity investment options and will actively monitor the implementation of the agreed subprojects. This will ensure CoI communities are engaged early in the project. For Component 2, communities will be engaged in all stages of the subproject cycle, structured around the seven steps below:25 a. Outreach and orientation. Orientation meetings will be conducted by NSIFT at the village, Jamoat, and district levels to provide local stakeholders and community members with detailed information about the CSP and the CASA1000 Transmission Line. Government actors and communities will be introduced to project objectives, the cycle of subproject activities, the specific requirements for including women and youth, the role of community representatives and community committees, the approach to procurement, and the social accountability and oversight mechanisms. The amount of the subgrant allocation to each village will also be provided at orientation. b. Participatory selection of community and youth representatives, formation of community and Jamoat committees. Building on community-based organizational structures, community members will be elected to join a Village Project Committee (VPC),26 responsible for mobilizing communities in the subproject cycle process. NSIFT and the TFP(s), with a cadre of trained Community Development Advisers (CDAs), will support training and capacity building activities for communities to support active engagement and community leadership of the VPCs in the project. CDAs and VPCs will ensure equal representation of women and men (with half men and women being under the age of 35). In addition, equal numbers of young men and women from each community (2-4 in total) will be selected and trained as Youth Energy Ambassadors. During this step, the Jamoat will establish a Jamoat Project Commission (JPC) 25 Guidelines for this mobilization and engagement process (with each step clearly defined in terms of methodology, target audiences, location, timing, gender targets, etc.) will be detailed in the POM, including activities for empowering women to play an active role, and roles for youth. 26 The VPCs are closely linked to the Mahalla committees. Depending on size, in some cases, VPCs will combine Mahalla committees from different neighborhoods, and in others they will be a subcommittee formed by the Mahalla committee. In those cases where there is no Mahalla, the VPC will be formed from other community-based organizations. The intention is to build on locally-relevant community structures. Page 17 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) composed of VPC and Jamoat representatives (50 percent women) to carry out the roles defined at the Jamoat level (see para. 75). c. Participatory village needs assessment and subproject prioritization. Adopting the participatory rural appraisal approach, the VPC will organize and help facilitate focus group discussions (FGDs) aimed at engaging women, elderly, youth, entrepreneurs, professionals, and vulnerable households. FGDs will enable these community groups to identify, discuss, and prioritize their needs. FGD priorities will then be discussed and ranked at village prioritization meetings, included in Village Development Plans (VDP), and communicated to the JPC for endorsement. To ensure women’s priorities are heard, the project will track and measure the percentage of investment in women’s groups priorities. To ensure youth priorities are adequately represented in VDPs, the decisions of the youth FGDs will be included in a youth chapter of the VDP, with the aim of identifying possible youth-related interventions eligible for funding (see para. 31). Energy efficiency events will be convened by Youth Energy Ambassadors, with participating youth trained to improve awareness of energy efficiency improvements. d. Subproject development. The JPC will check the feasibility of the proposed subproject against the subgrant included in the JDP, work with the VPC to develop the subproject proposal, and request NSIFT to carry out feasibility checks and the detailed design. The JPC will also work closely with NSIFT on the development of the subproject design, including addressing any safeguards requirements. NSIFT will prepare the technical designs and tender packages in accordance with regulations, utilizing relevant standard government designs as appropriate. e. Participatory implementation, procurement, and subproject management. Community procurement will be undertaken by JPCs with the support of NSIFT as described in the POM and SGM. VPCs will be empowered and trained to check that tender documents reflect their village prioritization, sign off on tender documentation, nominate a member to sit on the tender committee, and oversee implementation on site (e.g. safety of materials, progress against schedule), utilizing a structured process of feedback to the NSIFT project management team. FM will remain with NSIFT for the two CDD cycles. f. Participatory monitoring. Young women and men members from each community will also be nominated to carry out active participatory monitoring and oversight roles. With the necessary capacity building, community monitoring and social accountability is envisaged (see Subcomponent 3B). Procedures will be established to ensure there is no conflict of interest between implementers and monitors. The results of the monitoring, and community perceptions, will also be aggregated for interim reporting in the results framework. g. Participatory Operations and Maintenance. During subproject implementation, communities, through the Mahalla- associated VPCs, will be mobilized to form O&M committees, supplementing O&M provided by line ministries. These committees will ensure effective management and sustainability of the village investments following the completion of subprojects. For relevant subprojects (defined in the POM), an O&M subcommittee will establish the necessary village maintenance fund through voluntary or in-kind contributions. Minor repairs will be undertaken by the villagers, while more major repairs and maintenance will be undertaken by the relevant government departments at the Jamoat or district level. O&M training will be conducted for communities under this component. 43. Subcomponent 3A will cover the costs of community meetings, training workshops at the community and Jamoat levels, village exchanges and other learning events, and capacity building of communities and Jamoats to carry out the steps outlined above and ensure that decisions are needs-based and poverty-focused, and that mobilization specifically engages women, youth, and vulnerable households. Relevant trainings will be targeted at community representatives, youth monitors, VPCs, as well as Jamoat stakeholders (JPCs, Jamoat councilors, and administrators). Training and technical assistance activities for communities will cover the participatory process set out in para. 42 above, and for JPCs, will also cover small procurement, accounting and bookkeeping, project management, participatory community monitoring, O&M and safeguards. Trainings will be carried out by the TFP and set out in a Consolidated Training Plan in the POM. Page 18 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 44. Engaging youth. As noted above, to promote the equal participation of young men and women, opportunities for youth leadership will be offered throughout the community mobilization process. Gender-sensitive mechanisms will be identified with communities and tailored to local context to ensure the active participation of young women (typically marginalized from participation in public affairs). The following provides an overview of the youth-focused support:  Youth mobilization and training events to select and build the capacity of youth in target villages to: (i) support community mobilization activities; (ii) represent youth interests; and (iii) promote understanding of Disaster Risk Management (DRM) and FCV.  Youth chapter of the VDP/JDP; options to fund youth-related activities in Year 4 from the Jamoat residual fund.  VPC membership will require 50 percent youth (and women).  Youth elected and trained as Youth Energy Ambassadors, to host energy efficiency events with private sector and government actors, and to inform their communities on how to improve livelihoods and reduce household costs. This role will include training on climate change.  A youth engineers initiative will enable qualified engineering graduates to gain practical experience working with more experienced engineers on technical supervision; NSIFT will certify their participation.  Youth accountant internships for qualified young men and women to work under Jamoat accountants.  Young men and women selected to carry out the monitoring and oversight roles set out in Component 3B.  50 percent of the CDAs will be youth (and women). They will also be certified as trained community mobilizers. 45. Implementing arrangements. See Section III. 46. Outputs and indicators. It is expected that over 70 target communities will engage in the community mobilization process, with Year 1 focused on electricity-related investments, Years 2 and 3 on socioeconomic investment, and Year 4 on the Jamoat youth development investment. One VPC will be established, trained, and empowered in each target village; and one JPC will be formed and supported in each of the 24 Jamoats and Isfara townships. Output indicators will be disaggregated to provide information on CoI/border areas, gender, and age. Progress Reports will report on the number of VPCs established and functioning, community meetings/training sessions/FGDs planned versus actual, beneficiaries trained on project-related activities, community and youth engagement in planned activity, JPCs trained and supporting subproject proposal development, women CDAs, and energy efficiency events. Subcomponent 3B: Support for Social Accountability and Transparency 47. Subcomponent 3B will support a number of social accountability measures to enhance subproject oversight and promote transparency and accountability in the project. The social accountability approaches envisaged in the project aim to: (i) ensure that all local actors are accountable to the beneficiary communities for delivering on project objectives; (ii) build the capacity of local actors, including youth, to play a role in exacting accountability; (iii) allow for complaint and response; and (iv) feed into project monitoring processes through a transparent and structured process of community feedback and action. The following three instruments are planned and will be detailed in the POM: a. Social audits will be conducted twice a year. The social audits will take the form of “community check” meetings – public forums, at the village level, for the VPC and JPC to present a report back to the target communities on the progress, challenges, and fiduciary (procurement and FM) information of the project, and ensure that decisions are inclusive and poverty-focused, are genuinely bottom-up, that there is continuity in the chain of decisions made by focus groups (e.g. women’s groups), and enable the VPC and JPC to explain the expenditures of the project subgrant. Transparency will be a key parameter; a list of information and documents to be presented at the community check meetings will be provided to both communities and committee members, and supported by youth monitors using photographic evidence. The project will also fund the technical support needed to prepare, organize, and document these community check meetings. Page 19 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) b. Communities will also conduct semiannual community scorecards to provide quick and simple feedback and action plans on project implementation (project processes and outcomes). The scorecard process will be facilitated independently, with support from a cadre of youth selected for monitoring and oversight roles. The semiannual scorecard will be conducted along with the community check meeting, and results collated to promote feedback and identification of improvements/actions to be made in the following cycle. The scorecard will also provide results that will be used to monitor project outcomes, and feedback on CASA1000. All results will be disaggregated to identify any gender bias, and corrective action included in the Gender Action Plan. c. A beneficiary feedback mechanism will be established to address grievances, comments and any other type of feedback regarding the project. The design of the BFM will include a safeguards-related GRM. It will specify the systems and requirements for grievance redress from uptake, sorting and processing, and acknowledgement and follow-up, to verification and action, and M&E. It will also include testing options for broader beneficiary feedback (e.g. through web-based platforms). NSIFT will establish a unit tasked with this role, which reports to the Executive Director. The design and implementation of the BFM will be developed gradually over the life of the project such that by Year 3, the BFM is a part of NSIFT central services. NSIFT will coordinate with ESPMU, and through this joint accountability ensure that complaints are managed effectively. 48. Activities. Subcomponent 3B will include funding for the meetings, materials, awareness building, outreach and training of the youth monitors, community members, VPC members, JPCs, and CDAs engaged in the implementation of the social accountability activities. Staffing of the BFM and communications products are included under Component 4. Feedback will be reported in disclosed annual reports, as a part of the project efforts to create a benefit-sharing approach. 49. Outputs and indicators. It is expected that target communities in the CoI and Isfara district will engage in social accountability activities in all cycles. Regular reporting will measure the number of communities carrying out social audit meetings, community scorecards, and actions plans, making the process transparent, as well as training sessions held and workshop participation. The project will measure women in social accountability facilitation roles, women/youth members engaged in social accountability events, and the BFM which will receive and address complaints. Subcomponent 3C: Capacity Building for Improved Local Governance 50. The policy and legal framework for local government in Tajikistan includes the Law on Bodies of Self-Governance of Townships and Villages (2009 as amended), which assigns Jamoats a range of mandates to support community efforts to address local socioeconomic needs. However, there is still a substantial gap in Jamoat capacity to carry out these reforms. At the same time, Jamoats and Mahallas have traditionally found ways to address shortcomings in public infrastructure and service provision to manage local risks. To address these capacity constraints, and help fulfill the potential to perform these roles, Subcomponent 3C will finance capacity building activities for Jamoat and quasi-government actors. Target Jamoats will also be provided with facilities and equipment for the use of the JPC (including computers, printers, office furniture and conference room furniture for meetings). This will include the Leaders of Mahalla Committees, Jamoat councilors and administrators, JPC members. Four areas of capacity building are envisaged. a. Managing investments in communities (participatory planning, project management, and oversight). Training will be provided on the principles and practice of CDD, procedures for community mobilization, social accountability, gender and youth-related inclusion and equality, and safeguards project procedures. This capacity building will be complemented by training on the Jamoat mandate—local development planning, infrastructure planning, operations, and project management—to deepen skills in participating Jamoat structures and enhance capacity to manage inclusive and responsive investments. Page 20 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) b. Managing finance locally – learning by doing. Local FM practices will be supported by both training and learning-by- doing activities. Starting in Year 1, training will cover a range of fiduciary topics (procurement, accounting and bookkeeping, cost estimation, FM, gender budgeting, and equitable use of resources). In Year 4, Jamoats with capacity satisfactory to the Bank, will work with youth representatives on small subprojects selected from the Youth Development Chapters in the JDPs. Jamoats will be encouraged to establish youth accountant internships for the six- month period of implementation (see para. 44). c. Managing governance and anti-corruption risks. Training of local stakeholders on the principles and practice of local governance, will include: (i) accountability; (ii) relations with higher levels of government; (iii) tools for good governance (integrity pacts, social audits, transparency, and disclosure); and (iv) anti-corruption assessments and process audits. All stakeholders in communities and Jamoats and IAs will participate in fraud and anticorruption training and sign user-friendly codes of ethics; workshops will help each Jamoat produce governance action plans. d. Establishing energy efficient Jamoats. Support will be provided to target Jamoats to develop awareness and understanding of energy efficiency and its benefits to the individual and local institutions. Youth Energy Ambassadors will be convened to work with the JPCs to organize annual energy efficiency campaigns and roadshows to villages regarding energy efficiency and climate change. Investments in street lighting and public buildings will be launched to highlight the opportunities under the project, and technical assistance for the design of energy efficiency investments supported. A Jamoat energy efficiency champion will be nominated by the council to help organize activities in target areas. 51. Outputs and indicators. It is expected that 24 Jamoats plus the two Isfara townships will participate in this capacity building program. Output indicators include participation in capacity building events with agreed representatives; Jamoats and townships taking steps to revise procedures to improve governance; Jamoats and townships meeting necessary FM assessments and managing the Jamoat youth development funding. Subcomponent 3D: Supplemental Facilitation and Capacity Building for Border Communities 52. The community mobilization, social accountability, and local governance capacity building described in Subcomponents 3A, 3B and 3C above will also be carried out in the target areas in Isfara district. In addition, specific support will be provided under Subcomponent 3D to respond to the challenges of working in conflict areas. Additional community facilitation support will ensure that community mobilization, capacity building and subproject investments are delivered in ways that are sensitive to local tensions and competition over natural resources and services, enhancing cross-border connectivity and cooperation, and promoting the participation of at-risk young people and the meaningful participation of women. Best practice in preventing conflict highlights the importance of targeting risk spatially with investments and other actions in border areas, which may experience deficits of services and local institutional capacity. 27 Subcomponent 3D will finance the incremental costs of supporting border development investments in the higher-risk border and enclave communities in the townships of Vorukh and Chorkuh in Isfara. These Tajik townships lie close to the Transmission Line in the Kyrgyz Republic. It will support tailored activities to help address the gap in infrastructure and services in these localities which, in some cases, have contributed to the root cause of cross-border tensions and local-level violence seen intermittently over the last decade. Subcomponent 3D will be coordinated with the IA for the Kyrgyz Republic CSP, including coordination on possible opportunities for dialogue, joint training, outreach and communications to enable concurrent benefits to communities on both sides of the Tajik-Kyrgyz border. 53. This additional support will include: (i) building the capacity and resilience of local institutions with a focus on border 27World Bank and United Nations 2018, Pathways to Peace: Inclusive Approaches to Preventing Violent Conflict, International Bank for Reconstruction and Development, the World Bank, https://openknowledge.worldbank.org/handle/10986/28337. Page 21 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) area risks; (ii) engaging youth from border villages in investment planning; and (iii) promoting dialogue and strategic planning on border area development. It will ensure all key stakeholders and groups are included, focusing particularly on local leadership, youth, and women, and where possible, bring together relevant Tajik and Kyrgyz stakeholders. This support will also establish the required mechanisms and approval process on the GoT side to implement small, border-area infrastructure investments, including engaging district, oblast, and national officials as required. 54. The incremental support in Vorukh and Chorkuh will focus on three areas of activity: a. Initial assessment, risk analysis, and dialogue on border-area development. Recognizing the sensitive and higher- risk nature of socioeconomic investments in target border areas, activities funded under Subcomponent 3D in the Isfara area will commence with assessments, risk analysis and community-based dialogue around border-area development. These early assessments will also establish procedures for a GoT-led process for approving any border development investments and cooperation arrangements with the stakeholders responsible for the Kyrgyz Republic CSP investments in contiguous subdistricts. These activities will inform subproject selection for border-focused investments, and provide the foundation for dialogue with local, district, oblast and national officials throughout project implementation. b. Support for improving local Jamoat and Mahalla capacity and resilience. The project will support a tailored set of capacity building and dialogues activities for Jamoat and Mahalla representatives in border areas, including: joint training on border-area investments; mapping and monitoring socioeconomic risks; promoting cross-border investment and private-sector development; and regular forums that bring together local officials (Tajik and Kyrgyz) to discuss development issues of mutual interest, promote information sharing, and monitor the progress of community investments. Activities will be coordinated with the Kyrgyz Republic CSP. c. Support for youth engagement in border-area improvements. Extending the youth focus described above, the community mobilization process for these border areas will ensure youth engagement at each stage of the project cycle. This is intended to not only enhance livelihoods opportunities for young men and women, but also to engage them in dialogue with local leadership and institutions. Activities will include, for instance: (i) engaging youth and youth facilitators to work with communities on the needs assessment and subproject prioritization process; (ii) supporting young women and men in near-border communities to understand and advocate for local investment that meets youth priorities (e.g. joint training, coworking spaces, IT centers for youth); (iii) providing the opportunity for constructive engagement between Kyrgyz and Tajik youth in border communities, and between youth and local institutions; and (iv) youth-led joint monitoring of community-based investments. 55. Implementation. Implementing arrangements follow the same approach as for Component 3. See Section III. 56. Outputs and indicators. It is expected that 10-12 community groupings in border areas will engage in the community mobilization process over two cycles as described in Subcomponent 3A, and one VPC will be established and trained in each target area. Measures (each gender disaggregated) of these supplemental activities will include the number of VPCs established and functioning in community mobilization, oversight, and monitoring activities, border youth participants in trainings and workshops, target beneficiaries who report that they were engaged in: (i) planning and decision making, (ii) participatory monitoring, and (iii) planning for O&M; and the number of border development and youth engagement training sessions or forums held. Page 22 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Component 4: Project Management, M&E, and Communications (US$1.50 million IDA) Subcomponent 4A: Project Management and Coordination 57. Subcomponent 4A will finance the incremental costs of NSIFT for overall project coordination, management, and supervision of implementation, and the overall MIS, procurement, and FM, including project audits. This subcomponent will fund a dedicated project management team (which will include experts in CDD, social accountability, local governance, civil engineering, project management, procurement, FM, and M&E), which will prepare annual workplans and budgets, and implement the project according to a detailed POM. It will finance the capacity building of the NSIFT team, including exchanges with the CSPs in the Kyrgyz Republic and Afghanistan. Final targets of 50 percent women have been established for the (NSIFT and TFP) project teams. Subcomponent 4A will provide financing for the staff, consultants, essential equipment and very minor office repairs (where agreed), operating costs, technical assistance, and training necessary to carry out all CDD-related activities while managing relationships with all community, Jamoat, district, regional, and national stakeholders regarding Component 2 village investments. (A separate project management subcomponent is included under Component 1 to cover the ESPMU activities and costs associated with all electricity aspects of the project). Subcomponent 4A will also contribute to the regular coordination of national stakeholders, namely, BT, ESPMU, Ministry of Finance (MoF) and other ministries that will contribute to effective project implementation. This subcomponent will fund, and NSIFT will also manage, a BFM (that will include a GRM) which will provide a formal channel for feedback from communities on any matter concerning the CSP. Regular meetings will be held to ensure responsiveness and accountability regarding beneficiary feedback, including with ESPMU and BT. The budget for awareness building is included in Component 3, but the staffing and the operationalization of the BFM will be covered and clearly allocated under this subcomponent. Subcomponent 4B: Monitoring and Evaluation 58. Subcomponent 4B will support M&E activities to track, document, and communicate the progress and results of the project. M&E will be conducted by an M&E team established in NSIFT responsible for overall compilation of progress and results, and funded under this subcomponent. NSIFT will establish and utilize an MIS. This subcomponent will finance NSIFT to prepare project reporting—semiannual reports and quarterly unaudited IFRs—that will be submitted to the World Bank; this system and reporting will cover Components 2, 3 and 4. While community monitoring will be supported under Subcomponent 3B, the NSIFT M&E team will collate and analyze these semiannual assessments of outcomes and perception-based results, and enter them into the MIS and include them in semiannual reports. The quality of the community mobilization and other inclusion, voice and agency activities with communities will be measured through community scorecards, which will be discussed and verified, along with financial records and project implementation records, in social audit meetings. Feedback and grievances received through the BFM will also be included in the semiannual reporting. Results measurements will focus primarily on the outcomes defined in the results framework and the set of output indicators defined in the POM. Independent evaluations, procured by NSIFT, will include both a midline and endline IE. The aim of the IEs is to capture the results of the investments funded in Components 1 and 2, and to provide an evaluation of the community mobilization processes funded under Component 3. A Completion Report (that draws on the independent evaluation results) will be conducted by NSIFT prior to completion. Subcomponent 4C: Communications 59. Given the importance of community understanding of the CASA1000 Transmission Line and the CSP as a benefit- sharing mechanism, initial communications activities (surveys, FGDs in target communities, development of a communications strategy, and design of initial communications materials) will begin prior to the launch of the construction of the CASA1000 Transmission Line. A CSP Communications Action Plan will be developed by NSIFT and ESPMU in the POM, with the specific aim of: (i) building village-level support for CASA1000 by improving community understanding; (ii) Page 23 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) establishing trust in the CSP and managing expectations by transparently communicating CSP scale, scope, and eligibility; and (iii) providing a communications platform for messaging related to the broader CASA1000 project. The target audience will include community members, VPCs and Mahalla committees, Jamoat councils and JPCs. 60. Activities. NSIFT and ESPMU will jointly engage in the development of a communications strategy and action plan, and communications materials developed by a local firm, prior to effectiveness. NSIFT will support the dissemination of CASA1000 materials and messaging, ensure ongoing information sharing and feedback, monitor the results of communications efforts, and train communications staff to take part in communications activities. Emphasis will be placed on two-way communications; feedback from local stakeholders will be documented and IA responses tracked. This subcomponent will finance: (i) any follow-up engagement with the firm to ensure locally-relevant communications materials; (ii) dissemination of CSP communications materials through a broad range of channels (radio, roadshows, loudspeakers, community meetings, social media), and CoI village and Jamoat/Mahalla events; (iii) any communications materials required on specific issues; and (iv) feedback on the communications activities and actions to reflect on any revisions that may be necessary. Outputs reported in progress reports will include progress on the communications strategy and action plan, communications materials disseminated, attendance at awareness-building events, staff trained on communications and awareness of villagers of CSP communications materials. C. Project Beneficiaries 61. The project will be implemented in all Jamoats with villages that lie within the CASA1000 CoI, defined as 1.5 kilometers from either side of the CASA1000 Transmission Line. There are 60 villages in the CoI, traversing 24 Jamoats and eight districts in the regions of Sughd, Khatlon, and the Region of Republican Subordination.28 In addition, the project will support target border areas in Isfara district in Sughd region, including Vorukh and Chorkuh townships near the CASA1000 Transmission Line in the Kyrgyz Republic. It is estimated that about 130,000 people live within the CoI, and the project population of the target areas in Isfara district in Sughd region is 73,000. At the institutional level, BT, ESPMU, NSIFT, and 26 local administrations (24 Jamoats and two townships) will benefit from the project through capacity building aligned with their institutional responsibilities. D. Results Chain 62. The theory of change for the project (Figure 1) includes two interlinked sets of activities, outputs, and objectives in the project area: (i) improving the quality of, and access to, energy and socioeconomic infrastructure; and (ii) strengthening community engagement, inclusion, and local governance capacity. Small-scale socioeconomic infrastructure investments and broader electricity investments will contribute to rural development in project areas, and address severe gaps in village-level electricity, infrastructure, and social services. Through the focus on community-driven and social accountability approaches that involve youth and women, and capacity building of local and community institutions, the CSP theory of change is that communities will be empowered, strengthened and unified, and local institutions will be strengthened, through engagement in repeated small-scale decision making and investments. Additionally, investments will contribute to broader efforts by the GoT to promote local development and decentralized decision making. Finally, the project approach seeks to support overarching CASA1000 objectives and rationale for CSPs as an innovative benefit-sharing scheme to minimize social risks, maximize socioeconomic-, energy-, and stability-related benefits, and create a supportive environment for CASA1000. 28 Region of Republican Subordination consists of 13 districts that are directly under central government rule. Page 24 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Figure 1: CASA1000 Community Support Project – Theory of Change E. Rationale for Bank Involvement and Role of Partners 63. The World Bank is a lead international partner in CASA1000 in Tajikistan. CASA1000 included, at approval, a benefit- sharing approach as a part of the development model, to be implemented through CSPs. CASA1000 became effective on January 24, 2018 and construction is expected to start in late 2019. The CSP community mobilization and capacity building activities targeting the communities near the Transmission Line in Tajikistan will leverage the Bank’s global experience in CDD and local governance capacity building as well as draw on Bank investments and experience in local development in diverse regions of Tajikistan. The CSP will also invest in developing national capacity for CDD through NSIFT, providing a platform for future national and international partner support for participatory local development. In addition, the electricity investments in the CoI and Isfara district represent a continuation of the Bank’s broader strategy to invest in Tajikistan’s energy sector and address significant gaps in rural electrification as a key constraint to development progress. 64. The World Bank is coordinating with a number of partners on CASA1000 and the associated CSPs, including CASA1000 bilateral partners (DFID and USAID), contributing funding in the amount of US$2.0 million equivalent for each of the CSP projects in Tajikistan, the Kyrgyz Republic and Pakistan through the CASA1000 MDTF. In the CASA1000 CoI and in Isfara, the Bank also coordinates with a range of donors on energy and rural development issues. Capacity building work with Jamoats and local community structures will complement and leverage local governance programming, and project activities in border areas in Isfara will also be coordinated with the UN-financed “Cross-border Cooperation for Sustainable Peace and Development” project and engage with other partners active in cross-border development and peacebuilding work in the Ferghana Valley. Page 25 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) F. Lessons Learned and Reflected in the Project Design 65. FCV/high-risk contexts – tailoring the CDD design. Because of their ability to deliver services and infrastructure, engage communities and local institutions, and operate even in remote or conflict-affected environments, CDD approaches are increasingly being used in conflict-affected and fragile development contexts. A 2015 Independent Evaluation Group evaluation found that CDD was the most frequently used operational approach by the Bank in FCV situations.29 While CDD does not by itself solve or prevent conflict, it can help address key underlying factors of conflict risks, including: (i) delivering services cost effectively in remote and insecure areas; (ii) facilitating community acceptance of resource allocation; and (iii) creating meaningful opportunities for community involvement in service delivery.30 The CSP has been designed to reflect these lessons – reinforcing the capacity and resilience of Jamoats and Mahallas, engaging youth in community-based activities, innovative social accountability mechanisms, investments in lagging regions and high-risk border areas, and incremental assessment, dialogue and capacity building activities in border areas. 66. Joint capacity building and division of roles between local government units and community organizations. Lessons from CDD operations also point toward the need for simultaneous actions that support communities on the one hand and local governments on the other. The CSP incorporates this experience and specifically includes capacity building of local institutions to foster civic participation and voice, improve local management of investments, and increase accountability. Recent analyses and evaluations of CDD operations underscore the risk of creating parallel community structures through CDD at the expense of building sustainable local governance capacity,31 and the importance of integrating CDD as part of broader governance and public service delivery reforms.32 In high-risk or FCV settings, experience points to the need for a hybrid of community and local government institutions, with adequate capacity building and empowerment to deliver effective and sustainable CDD interventions.33 The design for this CSP has taken into account limited local capacity and the nascence of decentralization in Tajikistan, but it also relies on the promising potential of Jamoat councils and Mahalla committees to take up leadership and coordinating roles. 67. Ensuring capacity in the field – effective facilitation that empowers community actors. Lessons of implementation highlight that skilled facilitation is created by building capacity to perform prescribed roles, well-timed training, effective management of community facilitators, and the intensity of their support to communities. Throughout preparation, the project has explored potential avenues for engaging stakeholders with track records in working with communities. The project will ensure there are sufficient facilitators with the time to support processes that empower communities and are inclusive of all, including women and other vulnerable groups, and that these facilitators are well trained and provided with sufficient technical and management support. Specific activities that bring youth to the forefront of these processes will ensure they are centrally positioned and not marginalized. G. Project Cost and Financing 68. The lending instrument will be Investment Project Financing (IPF). Total project costs are estimated at US$26.00 million, financed through an IDA allocation of US$24.00 million (two-thirds regional (US$16.00 million), one-third national (US$8.00 million)) and US$2.00 million allocated from the CASA1000 MDTF. The MDTF allocation will be utilized on Component 3. 29 World Bank, Engagement in Situations of Fragility, Conflict and Violence, Independent Evaluation Group, 2015. 30 World Bank, Guidance Note: Operationalizing the Pathways to Peace Study in Community Driven Development Operations, October 2018. 31 “International Initiative for Impact Evaluation, Community-driven development: Does it build social cohesion or infrastructure? A mixed-method evidence synthesis” Working Paper 30, World Bank, 2018. 32 Wong, S. and Guggenheim, S. “Community Driven Development: Myths and Reality” World Bank Policy Research Working Paper 8435, May 2018. 33 de Regt, Jacomina; Majumdar, Shruti; Singh, Janmejay, 2013, Designing community-driven development operations in fragile and conflict-affected situations: lessons from a stocktaking, Washington DC, World Bank Group. Page 26 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Project MDTF IDA financing Project Components cost (US$ m) (US$ m) (US$ m) Regional National Component 1 Rural Electricity Supply Improvements 10.00 6.67 3.33 0.00 Component 2 Community-led Investments in Socio-Economic Infrastructure 12.00 8.00 4.00 0.00 Component 3 Community Mobilization and Local Capacity Building 2.50 0.34 0.16 2.00 Component 4 Project Management, Monitoring and Evaluation, and Communications 1.50 1.00 0.50 0.00 Total Baseline Costs 26.00 16.00 8.00 2.00 Total Project Costs 26.00 16.00 8.00 2.00 Interest during implementation - - Front-end fees - - Total Financing Required 26.00 16.00 8.00 2.00 III. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements 69. The project will be coordinated through a CASA1000 CSP Working Group established under the Chairmanship of the Minister of Energy. The Working Group will be responsible for overall coordination with other parts of the GoT, coordination on CASA1000 and CSP issues, and will be mobilized to address blockages in project implementation. A representative of NSIFT will join the Working Group prior to effectiveness, to strengthen coordination. 70. Barqi Tojik (BT)34 through the ESPMU35 will execute Component 1 of the project. Implementation of all the remaining components of the project will be delegated by the MoF to the National Social Investment Fund of Tajikistan (NSIFT. Fund flows and legal agreements are illustrated in Figure 2. Given its mandate to rehabilitate and maintain local energy transmission and distribution networks operated through its local electric networks at the province, district, and village levels, BT will have overall responsibility for Component 1. As is well-established practice, BT will delegate implementation of the project to the ESPMU through the Project Implementation Agreement. ESPMU will be responsible for the procurement, FM, technical supervision, and M&E related to Component 1. ESPMU will open a designated account (DA) at the central treasury. This institutional mechanism has a long track record of managing donor-financed projects. ESMPU is presently staffed by about 80 people trained in all aspects of PMU operations, including accounting, tax, and technical disciplines, as well as safeguards issues. ESPMU has handled projects totaling more than US$3.0 billion and managed IDA- supported projects with BT as the executing agency. It has demonstrated efficiency in FM, procurement and recordkeeping. BT executing agency staff are involved in decision-making and trainings provided by equipment suppliers and engineering, procurement, and construction contractors. 34BT is also working closely with the Bank on the preparation of a Power Utility Financial Recovery Project (PforR). 35Through a government decree, ESPMU was administratively separated from Barqi Tojik in 2003.The ESPMU reports to the President of Tajikistan, the Ministries of Finance, and Economy and Investment, the Chairperson of Barqi Tojik, and the State Statistical Agency of Tajikistan. Page 27 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Figure 2. Fund Flows and Legal Agreements 71. An institutional capacity assessment of ESPMU was conducted for CASA1000, and it was reassessed during preparation of the CSP. Given its track record and links to the Transmission Line project it was agreed that ESPMU would manage all aspects of the CSP village electricity supply improvements of Subcomponent 1A and the Isfara-1 Substation and village electricity improvements in border areas of Subcomponent 1B, ensuring overall compliance with the provisions of the POM. This will include ensuring effective procurement of supply and installation services for Subcomponents 1A and 1B; supporting the development of subproject technical design and tender packages and implementation (safeguards, procurement, construction, supervision, handover); as well as performing all fiduciary tasks and all necessary coordination of institutional support with oblasts and districts, and consolidated reporting and project management tasks outlined in the POM. ESPMU will coordinate with NSIFT (see below) on M&E, and project-related communications and outreach. ESPMU will open its own DA. The rules regarding the financing of taxes are defined in the Financing Agreement. A subsidiary agreement will be established between the MoF and BT prior to effectiveness. 72. NSIFT will serve as the IA for Components 2, 3, and 4. An institutional assessment was conducted during preparation and options considered for implementation of the CSP’s CDD activities. During preparation a decision was made to seek more sustainable implementation arrangements for the CDD components by involving an agency mandated to work with communities on a broad range of social investments in the long term. NSIFT was identified, given its track record of implementing small-scale local-level projects. Launched in 1997 by order of the GoT, and established in 2002, NSIFT has functioned for 20 years as an implementing agency for local-level development projects funded by donors.36 NSIFT has an organizational charter and permanent staff. It is supported with premises and utilities by the GoT and is directly under its control. 36From 1997-2006, NSIFT implemented the Poverty Alleviation Projects (P044202 and P082977) financed by the World Bank; both were satisfactorily implemented in fiduciary and technical terms. NSIFT has implemented a series of KfW education projects for a decade. Page 28 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 73. NSIFT will manage all aspects of the project associated with CDD, ensuring overall compliance with the provisions of the POM. This will include ensuring effective community mobilization, social accountability, and local capacity building activities; contracting the TFP for capacity building of communities, Jamoats, and NSIFT field and headquarters staff for the CoI and Isfara target areas; carrying out subgrant distribution and supporting the development of proposals and subproject technical design and tender packages, and implementation (safeguards, procurement, construction, supervision, handover); as well as performing all fiduciary tasks and all necessary coordination of institutional support with oblasts and districts, and consolidated reporting and project management tasks outlined in the POM. NSIFT will be responsible for M&E, the BFM (including the GRM), and project-related communications and outreach, in coordination with ESPMU. 74. NSIFT will open its own DA. The rules regarding the financing of taxes are defined in the Financing Agreement. NSIFT has proven procurement and FM capacity. The CSP project team will draw on the staff and capabilities of NSIFT central FM and procurement departments, and the project will contribute to an agreed set of central administrative costs. Staffing and consulting capacity (on mobilization, gender, social accountability, local governance, and MIS for instance) is required for NSIFT to expand to implement and oversee the successful implementation of CDD investments. It will also appoint qualified social and environmental safeguards staff in order to meet the Bank’s environmental and social safeguards requirements. A schedule of staffing and consulting appointments has been agreed and terms of reference will be included in the POM. 75. To strengthen NSIFT capacity to understand and carry out genuine community driven development, implementation will be supported by experienced Training and Facilitating Partner(s). The TFP (or a limited number of TFPs) will have a track record in implementing the CDD methodology (outlined in subcomponent 3A) and be familiar with global best practice in this approach, have experience in social accountability (outlined in subcomponent 3B), be able to attract experienced credible consultants that can support the capacity building for local governance (outlined in subcomponent 3C) and have proven experience working on CDD in FCV areas (to implement subcomponent 3D). To build local capacity, and ensure context-specific knowledge, the TFPs will also have experience working in the target areas, and preferably involve local NGOs already established and functional in the corridor of impact. The TFP covering the Isfara target areas will have proven experience working in border areas with conflict-affected communities. To meet these criteria, it is anticipated that NGOs will form consortium. The TFP(s) will design and carry out the development of all capacity building, facilitation and technical assistance activities for these four sets of activities, supporting NSIFT staff and 41 community development facilitators/advisers (CDAs) who will be employed by NSIFT. The TFP(s) will be procured through an open and competitive procurement process as early as possible in the project (the selection will be finalized immediately after effectiveness, as described in the PPSD). The TFP(s) will work closely with NSIFT (and ESPMU as needed). Coordination and accountability mechanisms to NSIFT will be established at both the regional and national levels, and described in the POM. The Terms of Reference for the TFP will be included in the POM. The costs will be entirely financed from the donor-financed MDTF made available for CDD-related activity. 76. Local-level implementing arrangements. The self-governing Jamoats at the subdistrict level will work with the communities, NSIFT, TFPs and district authorities in local development planning and subproject implementation (including community procurement).37 The 26 Jamoats/townships, legal entities established under the 2009 Law on Self Governance in a Town or Township (Article 3, clause 2), will establish Jamoat Project Commissions to help implement subprojects in their Jamoats. Each JPC will consist of 5-9 voluntary members representing the target villages in the Jamoat. Strict 37The Jamoat is a self-governance body of townships and settlements, which is elected by the voters of settlements and townships and solves issues of local importance within its competence. The activities of the Jamoat are regulated by the laws of the Republic of Tajikistan (see footnote 9). The head of the Jamoat is the Chairperson, who is elected by the Jamoat council based on the recommendation of the District Chairperson. Jamoat decisions are taken at the Jamoat meeting and signed by the Chairperson. The Jamoat has its own office, which is organized and managed by the Chairperson of the Jamoat. The Jamoat has the right to approve and implement the budget of the township/settlement. The Jamoat council is a collegial body of the Jamoat consisting of 15-40 Jamoat representatives. Article 10 enables Jamoats to establish Jamoat Project Commissions. Page 29 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) membership criteria will apply to ensure the engagement of VPC representatives, an equal number of men and women, and youth, as well as the necessary financial and technical specialists, and NGO representatives. A terms of reference for the JPC will be included in the POM/SGM. The Jamoat, through its Chairperson, will be required to delegate to the JPC the following responsibilities: (i) to support and represent the target communities in the subproject implementation process as defined in the POM; (ii) to endorse subproject(s) for funding during each cycle, including the youth development activities, and ensuring alignment with the JDP; (iii) to inform NSIFT of target communities subproject selections; (iv) to develop subproject proposal(s), including any safeguards-related requirements; (v) to coordinate with NSIFT on the technical designs of the selected subprojects; (vi) to carry out the procurement function or request NSIFT to conduct procurement on their behalf as defined in the SGM; (vii) to oversee contract execution; (viii) to propose and implement O&M plans and resolve issues related to ownership and functionality; and (ix) to coordinate with relevant stakeholders (line departments, utilities, NGOs, districts). The JPC will also prepare documentation for signing by the Jamoat Chairperson as defined in the SGM. All members will sign a code of conduct. 77. At the community level, Mahalla committees (or other community-based organizations where relevant), will establish Village Project Committees in target villages to mobilize communities, support community capacity building, and lead the selection and implementation of subproject activities (see para. 42b). The membership of the VPC, defined in the POM/SGM, will comprise Mahalla committee members, along with additional elected/nominated community members to ensure equal representation of women on the committee. Where possible, 50 percent of the members should be under 35. It is anticipated that committees will vary in size from 8-20 members, given the significant variation in the populations of target communities. The requirements for the establishment of VPCs, and the process for participatory nomination of members, will be included in the POM and their role in subproject implementation will be included in the SGM. The role of women is detailed further in para. 96 and Annex 3. 78. Safeguards implementation will be carried out by ESPMU and NSIFT for Components 1 and 2 investments, respectively. This includes inter alia: (i) supporting JPCs with information and capacity building (including the environmental criteria to be used, procedures to conduct the Environmental and Social Impact Assessment (ESIA), etc.); (ii) environmental and social screening, evaluation of subproject eligibility; (iii) communication and coordination with the Committee on Environmental Protection; (iv) ensuring proper implementation of the Environmental and Social Management Plan (ESMP) and Checklist requirements and social and environmental due diligence tasks, including preparation and implementation of Resettlement Action Plans, if necessary and the ESIA site specific ESMP for the substation and its disclosure and consultation; (v) addressing complaints and feedback from project stakeholders and the public, including grievances regarding environmental and social impacts; (vi) supervising (independently or jointly with the State Ecological Inspectorate) environmental protection and mitigation measures stipulated in the ESMPs; (vii) monitoring of social and environmental impacts as part of overall monitoring of subproject implementation; and (viii) reporting on environmental and social impacts emerging during implementation, and supporting mitigation actions to minimize negative consequences. 79. NSIFT and ESPMU will jointly implement the communications aspects of the project. ESPMU and NSIFT will both appoint staff to support the linked communications activities required for the CASA1000 and the CSP electricity and CDD components. To this end, a Communications Working Group will be established and meet quarterly with representatives from BT, ESPMU, NSIFT, and the appointed communications firm. 80. A Project Operations Manual will set out the details of all procedures and technical aspects of each component, FM and procurement procedures, and the reporting and M&E requirements. A highly detailed POM (including training manuals) will mitigate against risks of delay and unintended decisions being made during implementation. The POM will be supplemented by a Subgrants Manual that will guide the process required for the grants to be provided under Component 2, and the Jamoat subgrants for youth in Year 4. The POM and SGM will be conditions of effectiveness. Page 30 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) B. Results Monitoring and Evaluation Arrangements 81. The monitoring of output and outcome results will be detailed in the results framework and be the joint responsibility of ESPMU and NSIFT M&E staff working closely with field staff. First, ESPMU and NSIFT will ensure the collection of information for regular project reporting. This will include the component output measures defined in the POM, safeguards risks and BFM reports. Semiannual progress reports will be made available 45 days after the end of each reporting period, and include the output indicators described in this PAD, as well as updates on the results framework indicators. This will be entered into an MIS system established by NSIFT. Second, NSIFT, with TFPs, will facilitate the processes of community monitoring. This will include a regular readout on citizen engagement indicators established under Component 3, collated at the national level. Third, the project will include midline and endline evaluations, to be conducted by a firm hired by NSIFT. The POM will include an M&E section that defines the methodology for the measurement of each indicator, and templates for regular reporting. The M&E in the project will also be supported by an arrangement established under the ESMAP Gender and Energy TF to monitor the impacts of investment on women. C. Sustainability 82. Sustainability has been considered for each infrastructure subcomponent. For Component 1, the equipment and facilities improvements will be undertaken by BT and thus be on its balance sheet at completion. BT will ensure that an O&M plan is in place as per the current BT practice. For Component 2 investments, the implementing arrangements for the CDD aspects of the project are being developed to build sustainable capacity within a relevant local development agency (NSIFT). At the local level, ownership and commitment of communities is created through the community mobilization process, and community monitoring. Jamoats will ensure each subproject has met 100 percent functionality requirements (monitored through technical checklists developed for the POM), including operational requirements (i.e. assignment of staff). Socioeconomic infrastructure will be handed over to relevant line departments or Jamoats upon completion. Village O&M Committees will be established as a part of the VPC to supplement the O&M responsibility of district line departments. During the project, engineers and monitors will conduct regular field visits and develop the capacity of communities for O&M. 83. The CSP community engagement processes developed are intended to be continued to implement the Community Development Fund. The objectives of the future CDF stated in the CASA1000 PAD and Master Agreement38 are to: (i) deliver community-level development activities (infrastructure, services, and economic activities); (ii) improve the livelihoods of CoI communities; (iii) increase the shared prosperity associated with CASA1000; (iv) strengthen community buy-in to CASA1000; (v) mitigate security risks; (vi) maximize socioeconomic benefits through poverty alleviation; (vii) foster partnerships between CASA1000 project agencies and local communities; (viii) increase local ownership of the public investment; and (ix) create a supportive environment for construction and operation of CASA1000. The CDF in Tajikistan will provide approximately US$720,000 per year for 15 years for continued investment in communities in the CoI of the Transmission Line. To meet the above goal and enable the implementation of these village investments, the Jamoat and village committee structures built through CSP activities will extend beyond the project life to also cover implementation of the CDF. Capacity will be built during the four-year CSP period, such that it can be continued for the 15-year period. 38Master Agreement in relation to the CASA1000 Transmission Line, Article 20.6; Project Appraisal Document, Central Asia South Asia Electricity Transmission and Trade Project (CASA1000), March 7, 2014, Annex 8. Page 31 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) IV. PROJECT APPRAISAL SUMMARY A. Technical, Economic and Financial Analysis 84. An economic and financial analysis has been carried out for: (i) the CDD elements of the project, and (ii) the Isfara- 1 Substation and nearby village electricity improvements and is detailed in Annex 2. Given the demand-driven nature of the CDD design selected during each investment cycle, and the lack of experience in Tajikistan in CDD projects, it is not possible to determine accurately, ex ante, the type of village subprojects that will be funded, and thus their return. However, predictable elements of the subgrants were used to conduct an economic analysis, and assumptions, based on consultations with local communities, were used to calculate the net present value (NPV) and economic internal rate of return (EIRR). The base case EIRR for the village infrastructure investments (based on assumed proportions of electricity, water, education and health, irrigation, and small economic investments) is estimated at 34 percent (ranging from 1 percent for medical points to 167 percent for road rehabilitation) using a 15-year post-implementation period aligned with the CDF. The NPV of the project net benefit stream, discounted at 10 percent, is US$63.80 million. Sensitivity analysis shows that the project is fairly robust and moderately sensitive to changes in key assumptions. Benefits would have to decline to 50 percent of their assumed value for the project to generate an EIRR of only 10 percent. Quantifiable economic costs and benefits have been estimated for Subcomponent 1B (Isfara-1 Substation and Village Electricity Improvements in Border Areas). All investments have satisfactory economic viability indicators. For Subcomponent 1B, the EIRR is estimated at between 26-29 percent with an NPV cost of US$4.50 million and benefits from enhanced reliability, capacity to supply new demand, and reduced maintenance costs totaling US$22.00 million over 15 years of substation operation. 85. The CDD elements of the project are technically challenging in Tajikistan for three primary reasons. First, the community-driven methodology has not been adopted by the GoT at scale. Taking an incremental approach, the project will aim to establish a foundation for CDD initiatives that can be utilized by subsequent Bank/donor projects. Second, the project will take on the challenge of CDD in a conflict area of Tajikistan, bordering the Kyrgyz Republic. Utilizing the same CDD model as in corridor areas, supplementary activity will focus on institution building, developing dialogue platforms, and engaging youth in all processes. Third, the project implementing arrangements will address the diverse implementation challenges of bottom-up activities driven by, and empowering, communities. The proposed engagement of TFP(s) to supplement NSIFT will ensure that the necessary knowledge and experience is in place early in the project timeline, and will require effective collaboration. Technical checklists will be included in the POM to ensure subprojects meet functionality criteria and technical standards. This will also include support for green designs, environmental sustainability, climate change, and DRM in technical design. Village electricity improvements will be designed to meet technical requirements, and within budget limitations, address core community preferences. 86. The proposed approach to improvements of electricity supply in CoI villages, and construction of the Isfara-1 Substation is based on the Village Power Supply Study and Pre-Feasibility Study, respectively, and draws on the experience of past investments as well as national and regional comparisons considering the investment needed to efficiently meet load growth, address load supply constraints due to distribution system congestion, reduce losses, and improve the reliability and quality of power supply by the implementation of new supply-level equipment. Village-level investments are technically justified and do not always require higher-level investments to significantly improve services. BT and ESPMU have conducted village electricity improvements in the past (transformers, replacement of poles, lines) and the specifications that have worked best have been adopted for Component 1 investments. ESPMU will be responsible for the final technical design of all electricity improvements, including coordination with BT regional offices and obtaining BT clearance for intra-village investments; BT will second electrical engineers to the ESPMU team to ensure that village electricity investments are relevant, warranted, technically feasible, and will result in demonstrable improvement in service provision. Moreover, in the case of rehabilitation or upgrading of existing infrastructure, BT will help supervise the Page 32 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) installation of new, or the rehabilitation of old, equipment prior to taking the assets onto its balance sheet, and for ongoing O&M. BT operational plans will be in place prior to handover. The Component 1 scope and implementation arrangements are designed in a way that ensures sustained O&M of the assets rehabilitated and constructed under the project. B. Fiduciary (i) Financial Management 87. The FM assessment for NSIFT and BT/ESPMU was conducted in accordance with Bank procedure.39 Overall FM arrangements at both IAs are adequate and meet the minimum requirements of the Bank’s Policy and Directive on Investment Project Financing. In addition: (i) the FM sections of the POM (covering all components and both IAs) will be a condition of effectiveness; and (ii) the development of a SGM, acceptable to the Bank, which describes the flow of funds, internal controls over subgrants, and provides a subgrant agreement template (to be signed for each subgrant under Subcomponents 2A and 2B), will also be a condition of effectiveness. The appointment of accountants will also be a minimum requirement for the target Jamoats to receive funds from NSIFT in Year 4. NSIFT will be responsible for assessing FM capacity, and thence establishing and maintaining adequate FM capacity and arrangements in place in Jamoats that receive funds. FM requirements will be documented in the SGM. Until the necessary capacity is built, NSIFT will fully implement the FM functions under subgrant components. The Bank will closely monitor project implementation, and capacity building will be conducted at target Jamoats. The Bank will also monitor the subgrants implementation, in particular, the eligibility and selection process of beneficiaries. Additionally, the internal audit function of NSIFT will have a greater role in reviewing the flow of funds and control over subgrants. 88. The overall FM residual risk rating of the project is assessed as substantial. Both NSIFT and ESPMU will update their existing 1C software for accounting and reporting purposes. With regard to the FM covenants to be included in the Disbursement and Financial Information Letter: (i) unaudited IFR formats have been agreed with NSIFT and BT/ESPMU, and IFRs will be submitted to the Bank within 45 days of the end of the calendar quarter; and (ii) the project’s consolidated annual audited financial statements will be submitted to the Bank within six months of the end of the audit period. An audit will be carried out by independent auditors acceptable to the Bank (funded by NSIFT); the terms of reference will be pre- agreed with the Bank. Two separate DAs will be opened in a commercial bank acceptable to the WB. There are no pending audits for the active projects implemented by BT and ESPMU, and the auditors issued unmodified (clean) opinions on the financial statements of the projects, with no critical recommendations in the management letters. Details of the FM arrangements, including the formats of the IFRs will be included in the FM part of the POM. Details with respect to disbursements will be included in the Disbursement and Financial Information Letter. (ii) Procurement 89. Procurement under the project will be governed by the World Bank’s Procurement Regulations for IPF Borrowers (July 2016, revised November 2017 and August 2018), and will also be subject to the Bank’s Anti-Corruption Guidelines (July 2016). A Project Procurement Strategy for Development (PPSD) prepared in accordance with the Procurement Regulations identified that procurement activities and packages are of a standard nature, with the largest packages not to exceed US$4.70 million. The overall procurement risk under the project is currently assessed as Substantial. The risk rating was established based on a Procurement Capacity Assessment performed by the Bank; experience from past and ongoing WB- financed projects in Tajikistan with CDD operations; existing capacity of the proposed agencies in handling procurement; and the public procurement environment. Identified key procurement risks include: (i) lack of procurement capacity at the community level; (ii) inadequate level of competition; (iii) limited capacity to conduct procurement based on the Procurement Regulations; (iv) lack of contract monitoring and management skills and tools; and (v) the overall high public 39 Financial Management Manual for World Bank Investment Project Financing Operations (2010, revised 2017). Page 33 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) procurement risk environment. Given the above risks, the following preliminary risk mitigation measures are proposed: (i) procurement capacity building in NSIFT and in target Jamoats; (ii) consolidation and optimization of packages; (iii) intensive training for the IAs on the Procurement Regulations; (iv) preparation of the POM and the SGM with a detailed description of the procurement processes; and (v) putting in place an efficient contract monitoring mechanism. Further details are provided in the PPSD. 90. Use of National Procurement Procedures. In accordance with paragraph 5.3. of the Procurement Regulations, when approaching the national market, the Tendering with Unlimited Participation procurement method included in the Law of the Republic of Tajikistan “On Public Procurement of Goods, Works and Services” (dated March 3, 2006, amended April 16, 2012) may be used, subject to the conditions specified in the sections and paragraphs of the PPSD, and to be reflected as such in the POM. Other national procurement arrangements may also be applied by the Borrower, such as tendering with limited participation, request for quotations, or direct contracting, may be used subject to the above-stated conditions. The community driven development approach and procurement by the communities in Component 2 will follow World Bank Procurement Regulations as per paragraph 6.52 and Annex XII – Selection Methods, paragraphs 6.9 and 6.10. The procurement arrangements at the community level and oversight mechanism will be detailed in the Sub-Grants Manual. C. Safeguards (i) Environmental Safeguards 91. Potential project environmental impacts will be noise, dust, air, and water pollution, solid waste management and labor safety issues that might be associated with or generated by the civil works and energy supply activities. They will be temporary and site specific and can be mitigated by applying national and World Bank safeguards requirements and providing environmental assessment (EA) capacity building to the subproject beneficiaries. The project triggers the WB Operational Policy (OP) on Environmental Assessment (OP 4.01), since it will generate some adverse environmental and social impacts. The International Waterways OP (7.50) is also triggered since the project might finance subprojects on the rehabilitation of on-farm irrigation, and rural water supply and sanitation subprojects. These investments will be done within the original boundaries and design parameters of the irrigation and water supply and sanitation schemes, and no new water abstraction will be supported. The project will not adversely change the quality or quantity of water flows to, and it will not be adversely affected by the other riparian’s possible water use. Accordingly, an exception to the external notification requirements of this OP for the project has been obtained. 92. Since it is not possible to identify the CDD subprojects before Appraisal and their specific environmental social impacts in advance of the communities’ planning and prioritization process, the borrower prepared an Environmental and Social Management Framework (ESMF), which specifies the EA rules and procedures and guides the ESIA process for the subprojects to be selected. With regards to village electricity, the ESMF also establishes the requirements for the handing of PCBs, that might be found while replacing old transformers, and necessary EA capacity building activities for all involved in the project implementation parties. Per WB disclosure policy, the ESMF was disclosed in-country on November 21, 2018 and by the World Bank on December 19, 2018. With regards to the substation, while the technical design is known (it will follow a standard design similar to other similar substations), due to the lack of project preparation funds, the detailed design for the Isfara-1 Substation, including the specifics of the site near the settlement of Vahdat, will be conducted in Year 1 by a Technical Consultant funded under subcomponent 1B. It has therefore not been possible to put in place an ESMP prior to Appraisal. In accordance with the requirements of OP4.01, after identifying the coordinates and finalizing the detailed design, ESPMU (on behalf of BT) will conduct an ESIA for Isfara-1 Substation and prepare the site specific ESMP. This will be disclosed, and consultations held with all interested parties and the local population prior to tendering. Page 34 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) (ii) Social Safeguards 93. As noted above, OP 4.01 (Environmental Assessment) will be triggered. There is a risk that communities outside of the CoI will develop misplaced expectations, which could lead to resentment. Investment activities could entail the risks of voluntary land donations by individual community members, at their agreement. To identify potential social impacts, a robust screening process will form part of the preparation and implementation of village investments. ESPMU and NSIFT will set out all required processes and documentation requirements for social risk mitigation in the POM and ensure that the necessary capacity building is undertaken. Safeguards requirements will also be included in capacity building events for VPCs and Mahallas, Jamoat Councils and JPCs. 94. Physical relocation of households is not expected, and the impacts of village investments will only be known once community decisions are made and detailed designs prepared. However, some potential impacts related to minor land acquisitions, access restrictions, and temporary relocations cannot be ruled out, and there are risks involving potential links to some of the subproject interventions that might be considered as “associated facilities”. The proposed Isfara-1 Substation will provide electricity to a new township currently under development by the GoT. It will accommodate people relocating from the densely-populated areas along the Kyrgyz border, including villages within the project area. This new township is being built on public lands allocated by the GoT for the development of new residential areas. A Social Due Diligence Study found that this township development is not an associated activity for the purpose of OP 4.12 (Involuntary Resettlement) because: (i) it is not significantly related to the project objectives to be achieved – if those households that are expected to resettle in Vahdat do not elect to do so, the power generated from the substation will be transferred to the main grid, providing better electricity supply to villagers in another project area; (ii) it is not in any way necessary to achieve the project objectives – the project will be able to achieve the objective without the new Vahdat settlement; and (iii) it is not carried out, or planned to be carried out, contemporaneously with the project because it is a part of the GoT’s National Program launched in 2012. Hence, the social due diligence concluded that township development is not an associated activity for the purpose or OP 4.12. The project seeks to address potential non-OP 4.12 social risks through various project design mechanisms such as the screening process, and the awareness building, social audits and community scorecards facilitated under Component 3. OP 4.12 has been triggered as a precautionary measure. The Resettlement Policy Framework (RPF) was prepared and disclosed in-country on November 21, 2018 and by the World Bank on December 19, 2018. It provides guidance for the preparation of safeguards instruments, such as Resettlement Action Plans, and the necessary due diligence for activities during project implementation. If any impacts related to OP 4.12 are identified, the IAs will develop safeguards instruments and conduct a due diligence review for each subproject based on the guidelines and procedures highlighted in the RPF document. 95. World Bank Grievance Redress. Communities and individuals who believe that they are adversely affected by a World Bank-supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project-affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel, which determines whether harm occurred, or could occur, as a result of WB non- compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects- operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. Page 35 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) D. Citizen Engagement, Gender and Climate Change 96. Citizen Engagement. This project is predicated on the principle of participatory development and emphasizes active beneficiary engagement and the development of capacity throughout the four-year implementation process. Under Component 3, the project will form inclusive community-based committees (VPCs) and engage community members in: (i) a participatory needs assessment; and (ii) participatory decision-making processes to ensure subprojects address community-identified needs. During implementation of village subprojects, the project will employ three further citizen engagement mechanisms in each cycle. To ensure that the VPCs are inclusive and poverty-focused in their decisions, and accountable in their management of the CSP processes, on behalf of the communities, (iii) social audits (called “check our project”) will be conducted to report to target communities on the progress on subproject implementation, project costs and finances, along with any financial and technical findings. These events will provide a public, local forum for community feedback and dialogue. For this purpose, (iv) trained youth-led village monitoring groups will be tasked with monitoring subproject implementation and conducting community scorecards. Lastly, NSIFT will establish, (v) a BFM at the national level to address concerns raised by communities, grievances, and any other type of feedback on any project issue. Given that these activities are new to Tajikistan, well-planned, budgeted, and just-in-time capacity building will ensure that the citizen engagement mechanisms are understood and implemented as intended. Detailed procedures and reporting formats will be included in the POM. The project will measure the success of citizen engagement activities through a number of indicators in the results framework that enable beneficiaries to report back on project investments and participatory processes. 97. Gender. The project will focus on closing two gender gaps: (i) the gender gap in voice and participation in community- level and local governance decision making; and (ii) gender gaps in access to services. The gender context, activities, and proposed tracking are described in Annex 3. 98. Climate Disaster Risk Screening. The project has been screened for climate and disaster risks using the Bank’s online screening tool at https://climatescreeningtools.worldbank.org. Major climate risks and natural hazards include extreme weather events, changes in precipitation patterns, melting of glaciers, frequent floods and mudflow hazards, increased drought and changes in habitat, as well as an increase in earthquakes. Identified climate change risks will be mitigated through careful design and implementation of project activities in line with Tajikistan’s national commitments on climate change.40 For physical structures such as kindergartens and medical points, checks for seismic resilience will be part of standard construction approval and oversight. Climatic and disaster risks to agriculture-related livelihoods investments, such as flooding and landslides, will be mitigated through measures such as investments in rehabilitation works that reduce losses in irrigation channels, and protective infrastructure, as appropriate and prioritized by local communities. Energy efficiency measures will be implemented as part of the upgrade of infrastructure (e.g. schools, medical points) under Component 2. Climate co-benefits are also applicable to Component 1 – where village-level electrification will help reduce electricity losses in the power grid through the upgrade of networks and transformers. In addition, the youth-led community mobilization aspects of the project, including training the Youth Energy Ambassadors as focal points for issues such as climate change, to enhance awareness, transparency, and communication, can be expected to increase the general awareness levels and resilience of participating communities. 40National commitments on climate change are reflected in the “National Action Plan for Climate Change Mitigation” and under th e Paris Climate Agreement. Tajikistan has also communicated its post-2020 climate actions through a National Determined Contribution (NDC). Under the NDC, Tajikistan has committed to not exceed 80–90 percent of the 1990 level by 2030 as a contribution to reducing global greenhouse gas emissions. Actions to meet this target include on rural development issues such as rural energy, agriculture, management of water resources, vulnerability assessment and adaptation measures for climatic events, and awareness raising at community levels. Page 36 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) V. KEY RISKS . 99. The overall Project implementation risk rating is Substantial. Specifically, Governance risks pose a Substantial risk, and the project design incorporates a combination of internal controls, oversight mechanisms, capacity building of local institutions, and social accountability processes. The community role is carefully defined, with a subcommittee of Mahallas playing a leading role in subproject implementation. Macroeconomic risk is currently High. This risk is common to all Bank- financed operations. It is considered a broad portfolio issue and is addressed through systematic monitoring, training and capacity building activities implemented under the guidance of the country management unit. Sector Strategies and Policy and Institutional risks are Substantial. The project fundamentally supports energy sector strategies and policy by reducing the risk of the CASA1000 project. The CDD sector is nascent and nominating NSIFT as the IA of CDD components has reduced the institutional risk, given its track record in managing small local investments, however there are significant challenges in capacity for CDD implementation. The CASA1000 CSP Working Group will ensure coordination, and implementation risks will be discussed prior to effectiveness. The technical and human resource capacity of Jamoat councils and Mahalla committees is uneven and limited in some areas. Capacity building for local institutions, and ongoing support for NSIFT will mitigate these institutional risks. Fiduciary risks are Substantial, flagging country, institutional, and project-specific fiduciary risks. The procurement and FM of community-led subprojects, and overall fiduciary responsibility will lie with NSIFT, which has a track record of implementing donor projects; any funds that flow to the local level will follow Bank-approved CDD fiduciary procedures, with capacity building and thresholds established to match local experience and capability. Technical design risk is Substantial. Overall, the project is complex with various technical requirements that will need oversight. Technical risk associated with the CDD activities will be mitigated by appointing experienced TFPs and a cadre of field workers and coordinators to support villages in mobilizing communities and developing subprojects. The engineering design for the substation and village electricity is low risk given its simplicity, and given the extensive experience of BT and ESPMU in the construction and operationalization of substations in the national grid and the replacement of village-level electricity equipment as a part of routine O&M. The engagement of an experienced technical consultant to develop detailed design and tender packages for the electricity component will also help mitigate technical risks. O&M arrangements will involve BT (Component 1), and line departments and/or Jamoats (Component 2) for village infrastructure and facilities supplemented by community oversight. 100. Environmental and social risks are Substantial. Social safeguards risks relate to the building of the Isfara-1 Substation, and the new settlement. The project will adopt a number of risk mitigation measures and a due diligence review has been completed. The CSP will alleviate risks of elite capture or exclusionary practices through the participatory and youth- and women-focused processes, as well as community monitoring of inclusion indicators. Conflict and stakeholder risks are Substantial. As with other CSPs, there is substantial risk that communities located outside the CoI may develop expectations that will not materialize. A comprehensive approach to communications is already underway for the Transmission Line. As with other operations targeting FCV areas, there is also a substantial risk related to activities in Isfara, an area that has a history of cross-border incidents of conflict and violence. To mitigate these risks, experienced and local civil society actors will conduct capacity building and technical assistance with local stakeholders and facilitate community dialogue on border-area development. The project will focus on socioeconomic investments within the World Bank mandate, and coordinate with development partners working in the area. The Climate and Disaster Risk Screening noted susceptibility to natural disasters, which poses a moderate risk of harm to social infrastructure investments. Communities will be informed of these risks and advised on design options to safeguard project assets from such risks, and collaborate with the Critical Infrastructure Against Natural Hazards project in Tajikistan to ensure that measures for DRM are incorporated into the standard design of infrastructure investments. Page 37 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) VI. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Central Asia CASA1000 Community Support Project for Tajikistan Project Development Objectives(s) The Project Development Objective is to increase the quality of, and access to, energy, social and economic infrastructure services, and to contribute to the strengthening of local governance in communities in the project area. Project Development Objective Indicators RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Increased quality of, and access to, energy, social and economic infrastructure (PDO1) % of target communities with improved access to social and 0.00 0% Y1 60% Y2 80% Y3 90% economic infrastructure as a result of project support (Text) People provided with new or improved electricity service (CRI, 0.00 30,000.00 60,000.00 100,000.00 120,000.00 Number) Strengthened community engagement, inclusion and local governance capacity (PDO3) % of beneficiaries in target communities who report that their 20% Y1 total 40% Y2 total 60% Y3 total 70% total engagement in decision-making 0.00 20% Y1 women 40% Y2 women 60% Y3 women 70% women over project investments was effective (Text) (PDO4) % of young (women and 20% Y1 total 40% Y2 total 50% Y3 total 70% total 0.00 men) beneficiaries who report that 20% Y1 young women 40% Y2 young women 50% Y3 young women 70% young women Page 38 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 their role/voice in local governance has been enhanced as a result of project support (Text) CASA1000/CSP interventions bring energy, economic, social, stability benefits to target communities (PDO5) % of beneficiaries in target communities who report that the CSP is an effective response to the 0.00 20% Y1 40% Y2 60% Y3 70% local impacts of the CASA1000 Transmission Line (Text) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Component 1: Village Electricity Supply Improvements (IR1) % of target communities with reduced power outages (Text) 0.00 30% Y1 60% Y2 70% Y3 80% (IR2) Isfara-1 substation and surrounding infrastructure is: (i) designed and procured; (ii) (iii) Supplying electricity to constructed; and (iii) supplying No substation (i) Designed and procured ----- (ii) Constructed target communities electricity to target communities (Text) Component 2: Community-Led Investments in Socio-Economic Infrastructure (IR3) % of beneficiaries in target 60% Y1 total communities who report that 20% Y1 total 40% Y1 total 70% total project investments met their 0.00 60% Y1 women 20% Y1 women 40% Y1 women 70% women needs (Text) Page 39 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 (IR4) Number of beneficiaries in target communities with improved 6,000 Y2 total 10,000 Y3 total 10,000 total quality of water supply as a result 0.00 ----- 3,000 Y2 women 5,000 Y3 women 5,000 women of project investments (Text) (IR5) Number of women's group priorities that become a functioning facility, service, or 0.00 ----- 36 Y2 36 Y3 72.00 infrastructure (Text) (IR6) Number of subprojects that support climate change adaptation 0.00 ----- 15 Y2 20 Y3 20.00 or mitigation (Text) (IR7) Number of women able to earn income as a result of project 0.00 ----- 30 Y2 60 Y3 70.00 investments in kindergartens (Text) Component 3: Community Mobilization, Capacity Building, and Local Governance (IR8) % of target communities effectively completing the agreed community mobilization and social 0.00 30% Y1 60% Y2 70% Y3 80% accountability process (Text) (IR9) Total number of women (i) 300 (i) 325 (i) 350 engaged in: (i) Village Project (ii) 80 (ii) 100 (ii) 120 Committees, (ii) Jamoat Project 0.00 520.00 Commissions, (iii) social (iii) 40 (iii) 45 (iii) 50 accountability roles (Text) Total: 420 Total: 470 Total: 520 (IR10) % of target jamoats completing agreed local governance training curriculum 0.00 ----- 50% Y2 70% Y3 90% (Text) (IR11) % of beneficiaries in target communities who report enhanced 40% Y2 total 50% Y3 total 60% total trust in local institutions as a result 0.00 ----- 40% Y2 women 50% Y3 women 60% women of specifically defined Project Page 40 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 activities (Text) (IR12) % of beneficiaries in Isfara target communities reporting that subproject investments have improved cross-border 0.00 ----- 20% Y2 30% Y3 30% cooperation, connectivity, youth engagement, and/or safety/security (Text) Component 4: Project Management, Monitoring and Evaluation, and Communications (IR13) Number of women in: (i) CDA roles, and (ii) project staff (i) 0 (i) 0 (i) 22 (i) 22 roles in the project implementation 34.00 (ii) 3 (ii) 3 (ii) 8 (ii) 12 team (Text) (IR14) % of target communities where community monitoring is 0.00 ----- 50% Y2 60% Y3 70% contributing to Project M&E (Text) (IR15) % of target communities demonstrating an understanding of 0.00 20% Y1 40% Y2 60% Y3 80% CSP objectives and parameters (Text) IO Table SPACE UL Table SPACE Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection (PDO1) % of target communities with Measures percent of target Annual Progress M&E review of NSIFT improved access to social and economic communities with increased reports subproject proposals. Page 41 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) infrastructure as a result of project access to social and Technical Technical checklist support economic infrastructure review completed by improvements (location specialists/engineers. disaggregated). M&E Asset handover Specialists of documentation; village People provided with new or improved Annual BT/ESPMU population data, BT/ESPMU electricity service Independent including no. of evaluation women. Community scorecard Denominator is total Community methodology and (PDO3) % of beneficiaries in target number of respondents. Annual scorecards; quantitative/qualitative communities who report that their Numerator is number that Midline and NSIFT independent evaluation criteria engagement in decision-making over reported satisfactory or Endline evaluation defined in the POM. project investments was effective above (gender/age/location disaggregated) Measures the effectiveness Community scorecards of youth engagement in Community methodology, and (PDO4) % of young (women and men) Annual community mobilization, scorecards; quantitative and beneficiaries who report that their Midline NSIFT social accountability and independent qualitative evaluation role/voice in local governance has been and Endline capacity building. Will track evaluation criteria defined in the enhanced as a result of project support increasing role/voice of POM. young women. Measures community Community scorecard support for the overall Community methodology and (PDO5) % of beneficiaries in target package of CASA1000 Annual; scorecard; quantitative and communities who report that the CSP is interventions Midline and NSIFT/ESPMU Independent qualitative evaluation an effective response to the local impacts (gender/age/location Endline evaluation criteria defined in the of the CASA1000 Transmission Line disaggregated). POM. Denominator is total number of respondents. Page 42 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Numerator is number that reported satisfactory or above. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Technical review by BT/ESPMU based on Improved power supply is inputs from BT branch not only measured by the offices and ESPMU total level of electricity Technical technical and M&E supplied, but also by the review specialists. (IR1) % of target communities with reliability of supply. Annual BT/ESPMU Village BT/ESPMU specialists reduced power outages Reliability is measured by mapping will also track the the frequency of power percentage of women outages, following the headed households implementation of with less power electricity projects. outages. Procurement (IR2) Isfara-1 substation and surrounding documentati Supervision by BT and infrastructure is: (i) designed and Measures whether on, technical Annual ESPMU staff reports BT/ESPMU procured; (ii) constructed; and (iii) substation implementation monitoring and M&E checks. supplying electricity to target is progressing. reports. communities (IR3) % of beneficiaries in target Denominator is total Annual; Community Community scorecard NSIFT/ESPMU communities who report that project number of respondents. Midline scorecards; methodology and investments met their needs Numerator is number that and Endlin independent quantitative and Page 43 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) reported satisfactory or e Evaluation qualitative evaluation above (gender/age/location criteria defined in the disaggregated). POM. Gender disaggregated. Sub-project Technical review and Quantifies the beneficiaries proposals (IR4) Number of beneficiaries in target Annual verification of baseline of improved quality of water and village communities with improved quality of (starting and endline NSIFT supply and disaggregated by population water supply as a result of project year 2) male/female gender/age/location. Tracks data investments population. the gender gap re services. FGD/commu nity meeting/JPC/ Tracks whether women's Annual tender EC Review of village and (IR5) Number of women's group priorities priorities at being selected (starting minutes; list jamoat project NSIFT that become a functioning facility, service, for investment, and year 2) of sub- documentation. or infrastructure proceeding through project implementation process. proposals financed Measures contribution to Subproject criteria enhanced resilience (e.g. of PIU reports; defined in POM. (IR6) Number of subprojects that support roads infrastructure, Annual technical NSIFT/ESPMU Technical review of climate change adaptation or mitigation approved designs), as well checklists sub-project designs. as climate change mitigation. Measures if women are able Annual Subproject CDAs/monitors in (IR7) Number of women able to earn to work as a result of project (starting proposals; villages constructing NSIFT income as a result of project investments investments in year 2) community kindergartens. in kindergartens kindergartens monitoring Page 44 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) PIU field reports; Collated field minutes/pho reports/data from (IR8) % of target communities effectively tos of CDAs; review of Tracks if communities are completing the agreed community Annual community minutes of community NSIFT following defined mobilization and social accountability meetings; meetings, social audit procedures by location. process community meetings, review of scorecards/a scorecard results. udits Membership lists for VPCs, JPCs, social (IR9) Total number of women engaged in: Count of women Measures progress against accountabilit (i) Village Project Committees, (ii) Jamoat Annual participants in NSIFT 50% women targets at y roles, and Project Commissions, (iii) social membership lists. community/Jamoat level. energy accountability roles efficiency focal points Progress Review of participant reports lists, minutes, and Measure progress of Annual Minutes and evaluations of project (IR10) % of target jamoats completing training and capacity (starting evaluations training sessions for NSIFT agreed local governance training building activities for target year 2) of jamoat jamoats curriculum jamoats. training (gender/youth/location sessions disaggregation). (IR11) % of beneficiaries in target Measures improvements in Annual; Community Community scorecard NSIFT communities who report enhanced trust trust in local institutions Midline, scorecards; methodology, in local institutions as a result of attributed to different Endline independent quantitative and Page 45 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) specifically defined Project activities project activities: (i) evaluation qualitative evaluation community mobilization; (ii) criteria defined in the social accountability; (iii) POM. youth activities; and/or (iv) investments (gender/age/location disaggregated). Measures impact of investments in border region (gender/age Community Community scorecard (IR12) % of beneficiaries in Isfara target disaggregated). Annual; scorecards; methodology and communities reporting that subproject Denominator is total Midline, independent quantitative/qualitative NSIFT investments have improved cross-border number of respondents. Endline evaluation evaluation criteria cooperation, connectivity, youth Numerator is number of defined in the POM. engagement, and/or safety/security beneficiaries that reported satisfactory or above. Targets for women beneficiaries included. Project Measures progress of implementati Review (IR13) Number of women in: (i) CDA roles, gender action plan Annual on team of lists/contracts for NSIFT and (ii) project staff roles in the project commitments to increase contracts/hir each category. implementation team number of women in project es team. This indicator measures Community Annual whether community scorecards; (starting Review of minutes of scorecards/social audits are social audit (IR14) % of target communities where year 2) social audit meetings by tracking progress and meeting NSIFT community monitoring is contributing to Midline staff/M&E specialists; improving processes. results; Project M&E and feedback fro CDAs. Denominator is total progress Endline number of target reports communities. Numerator is Page 46 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) number of communities that utilized scorecard/audit results to make adjustments to their village decisions. Community scorecards Community Measures effectiveness of methodology and (IR15) % of target communities scorecards; CSP communications Annual quantitative/qualitative NSIFT/ESPMU demonstrating an understanding of CSP independent materials and awareness evaluation criteria objectives and parameters evaluation building defined in the POM. ME IO Table SPACE Page 47 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) ANNEX 1: Implementation Support Plan Strategy and Approach for Implementation Support 1. This Implementation Support Plan (ISP) for the Central Asia South Asia Electricity Transmission and Trade Project (CASA1000) Community Support Project (CSP) describes how the World Bank will assist the client in achieving the project development objective. In particular, the ISP places emphasis on accomplishing the following objectives: (i) providing necessary technical advice to the client and bringing international experience and good practices to promote successful implementation; (ii) ensuring that project investments in energy and socioeconomic infrastructure meet World Bank technical standards; and (iii) oversight and capacity building support for the community mobilization, social accountability, and local governance capacity building activities under the project to ensure high quality and accountable community- based decision making and monitoring according to project design. This will also support the project’s objective of developing national capacity for community driven development (CDD); and (iv) ensuring that the required fiduciary, social, and environmental safeguards are put in place and implemented according to the Loan Agreement and other project documents. 2. The project will be implemented over a period of four years. This ISP also includes support to the implementing agencies (IAs) prior to project effectiveness to meet capacity building and project design goals. 3. Technical implementation support. The following will be key areas of technical supervision support during project implementation:  Engagement of experienced social development, gender, governance, citizen engagement, and conflict specialists during implementation of Components 3 and 4 to support the cycle of community engagement, community monitoring, and local governance capacity building in the Corridor of Impact (CoI) and border areas. This will include hands-on capacity building support for the National Social Investment Fund of Tajikistan (NSIFT) based on the Bank’s global experience in CDD, social accountability and citizen engagement, gender mainstreaming, and work in fragile and conflict-affected areas. Supervision will focus on supporting NSIFT to detail the CDD, social accountability, and capacity building cycle activities in the Project Operations Manual (POM), training and exchanges with regional and global experts, and close supervision of the implementation progress at the national, regional, and local levels.  Engagement of experienced energy specialists, engineers, and climate mitigation and adaptation specialists during the implementation of Component 1 investments in village electricity and in the construction and operation of the new Isfara-1 Substation. Activities will include engagement and oversight of the client’s detailed village-level electricity surveys and feasibility studies, review of terms of reference and tender procedures for firms involved in electricity installation and maintenance, quality review and enhancement of electricity investments, and support for promoting energy efficiency and climate mitigation measures. This will also include support for World Bank specialists to carry out random physical checks/audits of village electricity upgrades once completed to ensure the safety and quality of construction.  Possible intermittent engagement as necessary of sectoral experts as well as energy efficiency and climate change experts during implementation of Component 2 subproject investments in village-level socioeconomic infrastructure. Since the project includes only small-scale investments and refurbishment, limited technical support will likely be needed but could include review of standard designs, recommendations for energy saving measures, and alignment with other World Bank investments in socioeconomic infrastructure in Tajikistan (e.g. coordination with World Bank projects on water supply and sanitation, climate and disaster risk mitigation, agriculture). This will also include support Page 48 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) for relevant World Bank sectoral specialists to carry out random physical checks/audits of works once completed to ensure the safety and quality of construction following cycle 1 subproject investments in socioeconomic infrastructure (and to recommend any improvements under cycle 2). 4. Technical implementation support missions will be carried out three times a year during the first 18 months of project implementation, followed by semiannual supervision missions. The project team will carry out regular site visits to communities in the CoI and Isfara border areas during implementation. 5. FM implementation support. This will include: (i) initial support to the IAs for development of flow of funds arrangements of the project, including for the subgrants to target communities; and technical support and oversight of the IAs in detailing these procedures in the POM and Subgrants Manual (SGM); (ii) desk reviews of the project’s quarterly interim financial reports (IFRs) as well as reviews of the project’s audited annual financial statements and annual auditor’s report and management letter; and (iii) on-site supervision (twice per year) to review the continuous adequacy of the project’s FM and disbursement arrangements, including visits to Jamoats to review the flow of funds and FM arrangements under community procurement and to monitor and manage FM risks. This would include monitoring and reviewing any agreed actions, issues identified by the auditors, randomly selected transactions, as well as other issues related to project accounting, reporting, budgeting, internal controls, and flow of funds, including at the community level. 6. Procurement supervision and implementation support. This will include initial support to the IAs for development of procurement arrangements for the project, including design of community procurement procedures for the subgrants to target communities; and technical support and oversight of the IAs in detailing these procedures in the POM and SGM. In addition to routine reviews, procurement supervision will be carried out during the team’s missions. Post review will be conducted once a year. Supervision would also include an additional community procurement process review after the first cycle of Component 2 subgrants and recommendations to NSIFT on any improvements and revisions required before the second cycle of subgrants. Procurement implementation support will also include training for the IAs and for community- level stakeholders involved in community procurement processes. 7. Environmental and social safeguards implementation support. Prior to effectiveness, social and environmental safeguards specialists will support the IAs in developing social and environmental guidelines to include in the POM, based on the environmental and social management framework and resettlement policy framework, and including a negative list of subproject investment categories ineligible for financing. The social safeguards specialist will also support the IAs in developing a beneficiary feedback mechanism, including a grievance redress mechanism (GRM) that meets World Bank standards. The team will have an experienced country consultant for just-in-time support. As communities select subprojects for implementation, social and environmental safeguards specialists will be engaged to ensure that subprojects are compliant with these guidelines and provide training and capacity building support to the IAs’ social and environmental safeguard specialists. Safeguards specialists will be requested to join implementation support missions envisioned for three times a year for the first 18 months and then biannually to track compliance with safeguards policy and to monitor activity under the GRM. 8. Communications implementation support. A key aspect of successful implementation will be communications regarding CASA1000 and the CSP to communities in the project area. A field-based communications specialist will work as part of the World Bank team to support the IAs in advancing a communications strategy and action plan, reviewing the design of communications products, and to provide ongoing guidance and support for communications and outreach efforts. Project communications are linked to the overall CASA1000 communications and timeline. Page 49 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 9. Training and facilitating partners. As part of project design, Training and Facilitating Partners (TFPs), NGOs skilled in community mobilization and local capacity building, will support NSIFT in developing training curriculum and coaching and mentoring NSIFT staff, Community Development Advisers, local officials and communities in community mobilization, participatory planning, social accountability, and a range of community development topics. During early supervision, technical implementation support will include working with NSIFT as it designs appropriate terms of reference for various functions for TFPs in line with the POM, and as a basis for a competitive selection process. After TFPs are hired, World Bank review will be required of training plans and curriculum to ensure high quality and consistent knowledge sharing on CDD, social accountability and citizen engagement, and local governance that is in line with global best practice. 10. Implementation Support Plan with budget. The ISP for the proposed project is presented in the matrices below, including timeline, focus, skills needed, and estimates of available resources for supervision. Additional trust fund resources will also be sought for complementary community-based capacity building activities, particularly around gender, conflict, energy efficiency, and citizen engagement. Table 1: Implementation Support Plan Time Focus Skills Needed Resource Estimate Technical US$50,000  Support IAs in development of the POM and SGM; capacity building support specialists, (project Pre- for NSIFT on CDD; technical design; additional surveys, costing of energy FM and preparation effectiveness investments; communications strategy/action plan/design of materials; Procurement budget) coordination with international partners ahead of project launch. and Comms. Oversight and capacity building guidance to IAs in staffing and project team US$185,000 development and up-skilling, including support for development of terms of annually reference for TFPs. Technical support for: (BB for  Development of the SGM supervision  Consultation and supervision of village electricity investments and design of and the Isfara-1 Substation CASA1000  Supervision of cycle 1 of subproject investments in small socioeconomic MDTF; Energy infrastructure, including FM, procurement, safeguards, and technical and Gender supervision based on investment area TF tbc)  Outreach and recruitment of community volunteers; oversight of cycle 1 of Years community mobilization and social accountability process as defined in the Task team 1-2 POM  Design and launch of Jamoat capacity building activities  Design of the incremental activities and approval process for border area investments, including coordination with the Kyrgyz Republic CSP  Early implementation of gender and youth action plan  Design of youth outreach and engagement activities across project cycle. FM/procurement/safeguards supervision/site visits and trainings for communities and local officials as relevant. Oversight of implementation of initial phases of the Communications Action Plan. Page 50 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) Oversight and capacity building support to IAs in implementation, including after action reviews of the POM-defined project cycle and revisions to the POM as necessary. Technical support for:  Supervision of village electricity investments and construction/operation of the Isfara-1 Substation  Supervision of cycle 2 investments in small socioeconomic infrastructure, including FM, procurement, safeguards, and technical supervision based on investment area; and taking into account lessons learned from cycle 1 US$185,000  Spot checks and technical audits of electricity and small socio-economic annually infrastructure investments to ensure quality and safety of construction (BB for  Further training and capacity building of community volunteers; oversight of supervision cycle 2 community mobilization and social accountability process as defined in and Years the POM and based on lessons learned from cycle 1 Task team CASA1000 3–4  Review of training curriculum and training delivery for Jamoats MDTF;  Supporting implementation of the Jamoat Youth Development Fund in Year 4 ESMAP  Oversight and capacity building support for border area investments, including Energy and coordination with the Kyrgyz Republic CSP Gender TF  Monitoring implementation of the gender action plan and incorporating (tbc) lessons learned  Monitoring implementation of youth outreach and engagement activities across the project cycle and incorporating lessons learned. FM/procurement/safeguards supervision/site visits and trainings for communities and local officials as relevant. Monitoring results of the Communications Action Plan and supporting additional communications and outreach in communities on project implementation. Conducting MTR (in Year 3/following cycle 1 of socioeconomic subgrants) and ICR. Table 2: Skills Mix Required Skills Needed Number of Staff Weeks Number of Trips Location For 4 years (Indicative/Initial) Task team leader (CDD) 40 12 ECA region-based staff Task team leader (Energy) 20 - CO staff Engineering specialist 12 6 ECA region-based staff Conflict specialist 12 6 ECA region-based staff Social Accountability/Gender 8 2 International expert Local Government specialist 8 - CO consultant Sector specialists 2 - Field-based staff Energy efficiency expert 2 - Field-based staff Environmental safeguards HQ staff 12 6 specialist Social safeguards specialist 12 6 HQ staff Social safeguards consultant 20 - CO consultant M&E specialist 3 1 CO consultant FM specialist 8 - CO staff Procurement specialist 12 - CO staff Communications specialist 10 - CO staff Page 51 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) ANNEX 2: Economic and Financial Analysis 1. The economic analysis covers (a) the village investments, both electricity and socioeconomic; and (b) the Isfara substation and village electricity improvements. a. Small Infrastructure Investments in Villages 2. The CDD elements of the project include socioeconomic investments and empowered communities. Given the demand-driven nature of the project design, and the lack of experience in Tajikistan in community driven development (CDD) projects, it is not possible to determine accurately, ex ante, the type of subprojects that will be funded and their return. However, there are some predictable elements to the community-driven subgrants that can be used to conduct an economic analysis: (i) a dedicated budget has been allocated for village electricity supply improvement and the 60 target villages are known; (ii) consultations with local communities suggest that subprojects will focus on a broad range of poverty-focused infrastructure and that water supply improvements particularly will be prioritized. Other investments are likely to include school energy efficiency improvements, street lighting, medical points, village roads, irrigation, and other livelihoods facilities. This economic analysis for the project assesses a base case scenario that can be tested ex- post. 3. The CDD elements of the project are expected to lead to several economic and social benefits. (i) Income- generating opportunities and improvement in living standards based on investments in improved community infrastructure; these project interventions would lead to substantial time savings either in terms of less time spent, e.g. in water collection, or easier access to education, health services, and markets. (ii) The adoption of a participatory, community demand-driven approach would result in: (a) communities empowered to manage their own resources in a more efficient manner; (b) community capability to prioritize, plan, and implement proposed economic activities; and (c) communities interacting more effectively with Jamoats and other stakeholders for the delivery of services. (iii) The project interventions would lead to the improved capacity of local Jamoat councils and Mahallas for local-level development planning, project implementation, financial management (FM), procurement, and other functions. 4. Evidence from comparable CDD projects in Central Asia and South Asia suggest that the proposed CSP will support investments that yield solid internal and economic rates of return. A number of robust comparators are available. For the Village Investment Project-2 in the Kyrgyz Republic, the economic internal rate of return (EIRR) was estimated to be 28.8 percent. The project’s benefits included additional employment opportunities for the rural population in the project area as hired labor, and substantial time savings, such as easier access to schools and first aid points. For Afghanistan’s National Solidarity Program (NSP) II, the EIRR was estimated to be 18 percent. The EIRRs for NSP III’s irrigation subprojects averaged 22 percent, and those for energy and transport subprojects averaged 18 percent. The NSP III led to a range of improved outcomes for beneficiaries, including improved water storage, better water distribution, reduced flood damage, water losses, and water logging problems, increased irrigated area, improved crop productivity, additional employment opportunities, and reduced social conflict in water sharing.41 The findings of the analysis for the Azerbaijan Rural Investment Project microproject investments showed they were economically viable, with investment returns ranging from 23.7 percent to 27.1 percent for non-profit infrastructure investments, and 45.8 percent for 41 Afghanistan Third Emergency National Solidarity Project (P117103), Emergency Project Paper, June 10, 2010. Page 52 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) irrigation investments. In addition, livelihoods activities generated a range of benefits, including increased incomes, productive investments, and links with markets, increased skills for beneficiaries, and lower costs of goods.42 5. The benefits of improved village-level electricity infrastructure will include enhanced reliability and quality of service provision for lighting, cooking, and heating, lower associated energy costs, lower repair and maintenance costs for pumps and household appliances, and reduced safety risks. Other benefits include the improved possibility for children and adults to read and study after sunset, increased use of domestic appliances, televisions, computers, and the internet, and the development of small income-generating businesses (dairy processing, crafts), as well as improvements to safety and security within the village. Losses in the system will be reduced as will costs of maintenance and repair of assets, and resilience to natural disaster and climate change induced wear and tear.43 At an estimated cost of US$5.50 million (US$4.50 million in Component 1 and an estimated US$1.00 million in Component 2) (21 percent), it is anticipated that about 60 villages located in the CoI, with a total population of 130,000, will benefit from significant improvement in the electricity supply to their residents and village-level businesses. Levels of connection are relatively high but the quality of supply is poor—low levels of voltage significantly affect the use of the electricity supplied. Following the results of the study conducted in 56 of the 60 villages during preparation, it is anticipated that about 50 CoI villages are likely to opt for rehabilitation/village-level electricity improvements and 3–5 villages in Isfara district, and 5–10 villages are likely to extend supply to new settlements. Based on the assumptions presented below, the EIRR for the village electricity investment is estimated at 31 percent. 6. The project will finance an estimated 140-145 subprojects from an open menu of possible investments to meet community needs.44 It is likely that investments will be made in school rehabilitation (including heating and energy efficiency improvements), irrigation rehabilitation, road improvements (or machinery to improve accessibility), kindergartens, and medical points. For irrigation rehabilitation, the economic benefits are reduced time transporting water and increased income from better yields. For village roads, benefits are seen in the creation of temporary employment, improved connectivity to markets and services, savings in travel time, new business growth, and reduced unit costs of transport. For kindergartens, the benefits are not only the early childhood development of preschool-age children, but the time released for parents, especially women, to work, and the reduction in travel time for parents. It is likely that the project will also provide kindergarten places for approximately 300–500 children, the benefits of which are long term and difficult to quantify. The EIRR calculated below assumes economic benefits due to women being able to work, and reduced cost and time for travel. For medical points, notwithstanding the unquantifiable benefits of better healthcare, the direct economic benefits are reduced travel time and costs to visit medical facilities in district centers and less number of days of work missed. Other potential livelihoods facilities might include dairy processing plants, or greenhouses, and these facilities are likely to generate up to 30 sustainable jobs per facility. Given the lack of information on community priorities, table 3 provides a simple scenario of the proportion of the budgets that will be spent on these priorities—with the electricity and water supply being of equal priority and other potential investments also kept equal.45 This calculation can be updated ex-post when the actual proportions are known. 7. Rate of return. Given the above benefits and costs, the base case EIRR for the village electricity and socioeconomic infrastructure investments is estimated at 34 percent. The NPV of the project’s net benefit stream, discounted at 10 42 Republic of Azerbaijan Second Rural Investment Project (P122944), Project Paper, June 18, 2014. 43 Where feasible, energy-related investments will also contribute to climate change mitigation and adaptation measures, as well as improved resilience to natural disasters, for example, by supporting infrastructure enhancements and making them climate resilient, adaptations respond to observed and anticipated climate change impacts. 44 The Benefit-Sharing Study and consultations have provided some indication of community priorities. 45 Based on data analysis for the VIP (KfW) and the Youth Needs Assessment carried out for the project. Page 53 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) percent, is US$63.88 million. This is consistent with other CDD project estimates and ex-post analyses. The EIRR of 34 percent for the project with the assumptions shown is in line with the global average for CDD investments as well as recent community-based programming in the Kyrgyz Republic, and the estimates for the other CSP projects,46 and demonstrates a sound benefit-cost ratio. 8. Sensitivity analysis shows that the project is fairly robust and moderately sensitive to changes in key assumptions. Benefits would have to decline to 50 percent of their (already conservative) assumed value for the project to generate an EIRR of only 10 percent. Table 3: Village Investment – Summary of Net Present Value and Economic Internal Rate of Return Percentage Assumed subcomponent NPV cost NPV benefit EIRR budget budget Electricity 5,500,000 21.1% 5,030,019 25,045,643 31% Water supply 5,500,000 21.1% 4,720,086 49,325,083 67% Kindergartens 1,000,000 3.8% 819,011 1,349,579 18% Medical points 1,000,000 3.8% 966,390 611,261 1% School rehabilitation 1,000,000 3.8% 850,265 5,455,351 62% Roads 1,000,000 3.8% 790,402 3,694,256 167% Irrigation canals 1,000,000 3.8% 877,921 2,508,929 37% Livelihoods facilities 1,000,000 3.8% 996,004 1,939,519 33% 17,137,941 63,880,647 34% Assumptions:  The period of the calculation is 4 years for the project plus 15 years given the Community Development Fund. Benefits could extend far longer, and some CDD projects calculate the benefit for a timeframe of 30 years.  The stream of economic costs and benefits was discounted at the social opportunity cost of the capital, which was assumed to equal 6 percent (IMF, 2016); income is assumed to increase by 5 percent annually.  The EIRR is calculated on the overall total cost, which includes the cost of project management, community mobilization, and communications, as well as the incremental operational costs of the facility.  Indirect human development benefits—improved health, improved levels of education, and early learning are not calculated.  For kindergartens, we assumed that 25 percent of women are able to return to work and earn a poverty-level income as a result; and 25 percent of women slightly increased their daily earnings due to time saved. For medical points, we assumed 1 working person a day was able to earn their normal income as a result of the medical point being in the village. We did not include the benefits of healthcare or prevention. For irrigation rehabilitation, we assumed all households accessing improved irrigation obtain an improvement equivalent to 1 female unskilled worker, and that 25 percent of farmers benefit from time savings. For roads, we assumed 10 percent of households save travel time, and 10 percent increase their income by US$1 per day as a result of better access to markets. For electricity, we assumed that 25 percent of households are able to increase their income by US$1 per day as a result of their access to income-earning potential (sewing machines, dairy processing), and that 25 percent are able to save the costs of obtaining fuel and power elsewhere. We assume that the tariff increases three- fold after 4 years. Relevant operational costs have otherwise been assumed for each facility/infrastructure. Benefits not quantified in the analysis include more equitable access to services, including for vulnerable groups and women, as a result of improved targeting and needs- based decision making, improved public health as a result of improved access to medical points, adaptations for climate change and disaster resilience, and improved economic opportunity as a result of improved electricity. 46The Kyrgyz Republic Third Village Investment Project estimates an EIRR of 28.8 percent. The Kyrgyz Republic CASA1000 CSP estimates an EIRR of 34 percent but includes a dedicated economic investment component. Other economic analyses for CDD projects in the Asian region indicate that EIRRs for rural infrastructure range from an average of 18 to 53 percent. Page 54 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 9. Value for money. In Subcomponent 1A, which supports village electricity improvements, the project costs are US$4.50 million; however, both supply and installation will be paid for through the project. In overall terms, the efficiency of investing in electricity—despite its significant benefit for communities—is undermined by the extremely low tariffs, which are 19.37 dirams per kWh (0.0206 US cents per kWh). Project interventions would, however, result in financial savings and the implementation of annual work plans that are typically underfunded. For Subcomponent 1B, which supports the Isfara-1 Substation and village electricity improvements in the border areas, the project will leverage already existing expenditure on the Transmission Line located near the new substation, representing an estimated 30 percent cost savings (about US$2.00 million in absolute terms), which might have been required to build the new transmission grid, and the cost of O&M will be taken up by BT for operation of this new substation. For Component 2, the CDD approach would bring potential cost efficiencies, if the costs of construction were reduced by lower overheads and zero profit margins as is often seen in CDD projects;47 however, the newness of the approach in Tajikistan and the need to incrementally build capacity in NSIFT for community-based FM, has led to the decision that NSIFT will procure all subprojects through a competitive process, with the exception of some micro-projects that will fall under the responsibility of the Jamoats. The POM will describe the circumstances under which approval will be given to Jamoats to procure locally (e.g. small subprojects under US$10,000 in Year 4) but the amount of this is not likely to exceed US$400,000 and the efficiency would thus not impact the project. Any subprojects supporting irrigation rehabilitation will be coordinated with local Water Users Associations, keeping costs low. For social infrastructure investments, a number of the facilities will leverage, and be contingent on, commitments to support O&M, from the relevant budgets of the GoT. The construction of medical points will leverage in-kind support for healthcare workers and operating costs (utilities, etc.) from the Ministry of Health. 10. The World Bank is supporting the GoT’s efforts to improve the financial sustainability of the sector through the Program for Results Operation on Power Utility (Barqi Tojik) Financial Recovery. 11. The selection of the Energy Sector Project Management Unit (ESPMU) as an implementing agency for all electricity components will build on the existing arrangements established for the CASA1000 Transmission Line implementation. Staffing will be supplemented, not duplicated; other activities such as FM, procurement, M&E, and communications will be carried out by the same team. Consequently, the project management cost structures are efficient at just under 10 percent of the investment cost. The selection of NSIFT as the implementing agency of the CDD components prioritizes the development of the institution; it is not necessarily cost efficient during this stage but prioritizes the development of a sustainable CDD agency. Comparative costs for construction were not available, but unit rates in the recent KfW- financed schools project are competitive. The current project management costs come to US$1.10 million, (10 percent of the cost of the NSIFT portion of the project). NSIFT operates a number of central core services, including for instance, the BFM, to which the project will pay a proportionate contribution rather than setting up a separate system. 12. The design of subgrants will include a number of innovations to enhance efficiency. The formula for the distribution of subgrants will include population and other objective criteria; subgrants can be used for any number of subprojects; residual funds will be collected into a Jamoat fund, ensuring that costs are not inflated to equal the subgrant; communities will be allowed to carry over funds from one cycle to the next to allow them to choose a priority subproject that costs more than the cycle budget. Additionally, they will be able to join together with a neighboring village if they choose a joint subproject. The project will not, however, require community contributions for subproject construction, as this is seen to be inconsistent with the benefit-sharing principle of CASA1000. Rather, community contributions will be mobilized for incremental activity. Standard designs will be adopted where appropriate and thus 47A World Bank review of CDD programs found between 13 and 40 percent lower costs for CDD programming. Wong, Susan, What Have Been the Impacts of World Bank Community Driven Development Programs, The World Bank Social Development Department, 2012. Page 55 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) provide savings on technical design; technical checklists will be developed and included in the POM to ensure that standard designs are not inappropriately used. 13. Financial sustainability. Investments made through the project are considered financially sustainable due to four main factors: (i) financial investments will be prioritized through community-led processes, and thus communities are likely to exercise longer-term commitment/ownership and oversight of investments they themselves have prioritized; (ii) the equipment and facility investments made in electricity improvements will be included on BT’s balance sheet at completion and include an O&M plan, while all social infrastructure investments will be transferred to the relevant line ministry on completion; (iii) an asset transfer model will be used to ensure ownership and sustainability for continued oversight and maintenance, should a line department not be identified (e.g. for livelihoods facilities) the Jamoat will take over the asset for continued O&M; and (iv) the Community Development Fund approved in the CASA1000 will provide between US$680,000–US$740,000 per year, for 15 years, for continued investment in communities in the Jamoats traversed by the Transmission Line, and draw on the community decision-making structures developed through the project. b. Isfara-1 Substation and Village Electricity Improvements 14. The economic analysis of the substation has been carried out in accordance with the Bank’s Guidelines for Economic Analysis of Investment Projects (April 2013) and is based on the incremental benefits and costs of the project. 15. Economic viability analysis. Quantifiable economic costs and benefits have been estimated for Subcomponent 1B (Isfara-1 Substation and Village Electricity Improvements in Border Areas). All investments have satisfactory economic viability indicators (both EIRR and NPV). For Subcomponent 1B, the EIRR is estimated at between 26 and 29 percent with an NPV cost of US$4.50 million and benefits from enhanced reliability, capacity to supply new demand, and reduced maintenance costs totaling US$22.0 million over 15 years of substation operation and infrastructure. The EIRR is robust to adverse changes in key underlying parameters and remains at satisfactory levels. 16. In order to evaluate the adequacy of the estimated costs, two complementary approaches were used: (i) a mixed bottom-up/top-down benchmark with costs of other 110/10 kV projects conducted in Europe; and (ii) a cost assessment based on knowledge of similar projects developed in Tajikistan in recent years. The first approach has some limitations. The most important one is related to the fact that 110kV is a voltage level with very limited use in Western Europe. Also, it needs to be noted that the “market” of 110kV equipment is very limited, and t herefore prices may suffer significant variations depending on the timing of the actual purchase. The limitations of the second approach are related to the issue that all conventional projects analyzed have been developed solely by BT. Cost breakdown for major items were reviewed when assessing costs, including: (i) equipment and materials; (ii) civil work, assembly, installation, testing, and commissioning; (iii) general organization expenses; (iv) contingencies for delivery and installation; and (v) local costs. 17. The benefits and costs have been determined separately where project components provide different types of benefits. The key general assumptions in developing this assessment are the following: (i) use of a 15-year modelling period after project implementation; (ii) annual growth in electricity demand and volumes of 2 percent per annum consistent with assumptions on the development of the energy sector in Tajikistan up to 2030; and (iii) use of cost streams that reflect the cost of delivering the estimated benefits. Other benefits, such as supplying power to neighboring Mahalla 14 va 15 and Mahalla Nuravshon were also not assessed but it can be noted that this will improve further economic viability (increasing the EIRR) of the proposed project. Page 56 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) 18. With regard to the construction of the new Isfara-1 Substation, in the selection of the technical solution, the following benefits have been identified: (i) reduction in energy not supplied; (ii) facilitation of increased electricity demand in the Isfara region; and (iii) reduction in O&M costs. In the calculation of the EIRR, the following benefits were used: (i) enhanced reliability; (ii) capacity to supply new demand; and (iii) reduced maintenance cost. Those benefits were assessed over the costs of capital expenditures and operating expenditures that are required for the new Isfara-1 Substation. The economic benefit of improved reliability of the Isfara-1 Substation was quantified as the reduction in the unserved/not supplied energy due to reduced incidence of equipment failures at the Isfara main substation, which leads to unserved energy in the service areas dependent on this new substation. Construction of this new substation will also reduce the O&M costs at the Isfara main substation given the severe dilapidation of the equipment, which requires significant expenses each year to maintain it in operational condition. The economic benefit of improved reliability of the Isfara-1 Substation was quantified as the increase in the economic cost of meeting the electricity demand that has been avoided as a result of its construction. 19. Based on the assumptions adopted, the EIRR of the work to construct and operate the new Isfara-1 Substation is estimated at 25 percent (at a discount rate of 10 percent). The most significant factor in driving the results is the increased demand that can be facilitated due to increased power flowing through Isfara to the new settlement of Vahdat and other neighboring areas, by setting new transformers at the Isfara-1 Substation. The risks of delay, reduction in benefits, or increase in capital costs have not been considered in the calculation, however various factors suggest that these figures may understate the true economic value of the investment, including other potential benefits, such as reduced transmission losses from operation of the new substation, which strengthen the Isfara regional grid, interconnectivity and assessment of the trajectory for energy not supplied without the investment is assumed to be proportional to load growth in the Isfara regional grid. Page 57 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) ANNEX 3: Gender 1. The project will focus on closing two gender gaps: (i) the gender gap in voice and participation in community-level and local governance decision making; and (ii) gender gaps in access to services. First, with regard to voice and participation, a broad set of analysis highlights the lack of voice and agency of women in rural Tajikistan. While Mahallas are an important community-based organization for collective decision making, they are traditionally dominated by older men at the local level. In a 2013 baseline survey,48 50 percent of respondents indicated that men’s influence is stronger than women’s influence at the Jamoat level. Just 11 percent said women had more influence than men. In 2017, women occupied 19 percent of seats in the national parliament,49 and there are currently no quotas policies or plans in place to promote women’s political participation, locally or nationally, in Tajikistan.50 Women also lag behind men in paid employment, with signs of further decline.51 This employment gap also contributes to the gender asymmetries in voice and agency, and this gender gap in local decision-making structures has direct consequences on whether local investments meet women’s infrastructure and service needs. For example, the findings from a 2017 WASH survey52 finds that only 31 percent of rural households have access to improved water supply. Tajik women are primarily responsible for water collection (90 percent spend more than one hour a day on this), women thus incur the largest nonmonetary burden of inadequate water supply services, and there is far higher demand and willingness-to-pay among women for water supply improvements than men. Women’s preferences for improved access to water supply may only translate into actual improvements if women are empowered to meaningfully participate in local decision-making—and be heard—about the types of infrastructure and services local government should fund. A 2016 gender assessment53 indicates that lack of access to health and education services has significant consequences on maternal mortality and birth outcomes, with 35 percent of rural women reporting distance to healthcare facilities as a primary factor. The absence of preschool educational facilities was mentioned frequently in participatory discussions with rural women, as a factor that prevents them from working outside the home. 2. The project will finance activities that explicitly address the gap in women’s influence over comm unity and local government decisions around public goods and services that have substantial implications for women’s welfare. The project will create new opportunities for women of all ages in the project area to develop awareness, capacity, skills, and confidence to join local decision-making bodies and assume active roles in which they influence decisions made over subproject investments in facilities, services, and infrastructure. Component 3 incorporates a bundle of actions to develop genuine and empowered participation of women in relation to community mobilization, capacity building, social accountability, and local governance development, throughout the project cycle. Additional facilitation and capacity building support under Subcomponent 3D will focus on engaging young women in Isfara, many of whom are impacted both economically and socially by high rates of labor migration. To this end, first women from the target villages will be selected, trained, and supported to participate (in women’s groups and mixed groups) in problem mapping, needs assessment, prioritization, and the final decision making on subprojects in their village. Women, nominated by other women, will also take up 50 percent of the positions on the Village Project Committees (VPCs) (community committees, expanding traditional Mahalla committees) to enable greater influence over community meetings, and the selection of subprojects; young women’s participation will be developed and encouraged through quotas. During the development of subprojects (e.g. kindergartens, water supply improvements, medical points), women will then be engaged in the 48 USAID, 2013, Evaluation Baseline Report: Tajikistan Local Governance Impact Evaluation. 49 World Development Indicators Dataset, data for 2017. 50 OECD, 2014, Tajikistan Country Profile, Social Institutions and Gender Index, Paris. 51 Women’s labor force participation has declined from 46 percent to 27 percent from 2003 to 2013. Men’s participation rates are 63 percent. Tajikistan Systematic Country Diagnostic, World Bank, 2018, Washington, DC. 52 World Bank, 2017, see footnote 16. 80 percent of women compared with 64 percent of men said they would pay more for better water. 53 Asian Development Bank, 2016, Country Gender Assessment for Tajikistan (32 per 100,000 live births in 2015, compared to 23 for ECA region). Page 58 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) participatory design of facilities, and equal numbers of women delegates will participate (through the Jamoat Project Commissions (JPCs)) in the procurement and monitoring stages of project implementation undertaken at the Jamoat level. The project sets 50 percent targets for women’s participation in all events and committees (community meetings, VPCs, JPCs, community monitoring (social accountability) committees, local governance training. Given the challenge in achieving these targets, the project will include a (live) Gender Action Plan to check progress and address constraints faced by women in different localities (e.g. twinning, chaperones, meeting times) to ensure optimal arrangements for women’s active participation, and to identify confidence building, coaching, and training needs to improve the quality of their participation. These activities will be facilitated by a cadre of Community Development Advisers (staff of the project at the local level working with a Training and Facilitating Partner), 50 percent of whom will be women. Procedures developed in the Project Operations Manual (POM) will ensure project support is framed to suit local needs (which vary from north to south), decided through participatory methods (e.g. time and location of trainings, methods for confidence development, older women chaperones). By enhancing women’s roles and providing support to perform these roles, these a ctions will therefore have two outcomes: (i) improving women’s access to service delivery and local infrastructure that can generate benefits for women in terms of reducing the burden on women, time savings, improved health and livelihoods, and better access to markets; and (ii) improving women’s empowerment, skills, and confidence to participate, with consequence, in local decision-making institutions and in the development of village and Jamoat development plans that ensure medium- term development that goes well beyond the project. 3. The project will track and measure the results of these actions through output level tracking and indicators in the results framework. With regard to the voice and participation gender gap, the project has established 50 percent targets for training, participation, and representation at each level and in each activity, and will measure: (i) the number of women in VPCs (established to expand the male-dominated Mahallas) (target 288 women), the number of women in JPCs (target 96 women), the number of women trained and carrying out social accountability roles (target 96), and the number of women appointed and trained as energy efficiency focal points (target 100 women). The baseline for each is extremely low and will be collected and included in the POM. The project will also measure women’s perception of this engagement through a project development objective indicator; (ii) the percentage of women beneficiaries who report that their role/voice in local decision making has been enhanced as a result of project support. The project seeks to address gaps in services, taking specific actions to ensure that women both influence the decision-making process and are beneficiaries of the subproject investments. With regard to access to services and infrastructure, the project will track and measure (iii) the number and percentage of female beneficiaries of each subproject (target 50 percent),54 and the number of women’s priorities, recorded in focus group discussions, that become a functioning facility, service, infrastructure (target 50 percent, 72). The project will track the percentage increase of female households (including abandoned wives) with better access to electricity (target 5,000 women) and improved water supply (target 5,000 women) as a result of project investments, the number of women that take up work outside the home as a result of project support for preschool education (target 70 women), and the number of women obtaining jobs in project-funded economic facilities (target 200 women). The Bank is seeking additional support through an ESMAP Gender and Energy TF to ensure women, especially young women, are engaged in the planned activities and targets are met. Lastly, given that women lag behind men in paid employment, it is worth noting that the project will take decisive steps to ensure women have equal access to employment opportunities and skills training created as part of project implementation. This is considered particularly important given the current lack of women in technical roles in the selected implementing agencies and the need to instate gender equity in the outreach to communities. Within the NSIFT project team, the project will measure (from a baseline of 3 women) the number of women staff in the project implementation team (target 10 women): (i) the number of Community Development Advisers (target 20 women),55 and require contractors (Training and Facilitating Partners) to meet 50 54 Given that the types of subprojects are not known, the actual number of beneficiaries cannot be predicted. 55 All women obtaining local work experience will be certified by NSIFT at the end of the project, to support them to move on to paid jobs. Page 59 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) percent targets. At the local level, it will measure, from a baseline to be confirmed, the (ii) training and internships for women as Jamoat accountants, or assistant accountants (target 12 women). The list of gender measures will be included in the Gender Action Plan in the POM, a condition of effectiveness. 4. The youth element of the project, described in para. 44, includes as a central parameter, a focus on young women in all youth-focused activities. This will be closely monitored to ensure investments in youth have equal benefits for women and men. The development of modest Jamoat Youth Development Plans, financially supported in Year 4 with residual grant monies, will also be tracked for gender benefits—the project will thus measure the number of Jamoat youth subprojects in Year 4 that fulfill young women’s priorities (target 20 women). Page 60 of 63 The World Bank CASA-1000 Community Support Project for Tajikistan (P165313) ANNEX 4: Project Map Page 61 of 63