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The World BankNigeria Youth Employment & Social Support Operation (P126964)

REPORT NO.: RES31524

RESTRUCTURING PAPER

ON A

PROPOSED PROJECT RESTRUCTURING

OF

NIGERIA YOUTH EMPLOYMENT & SOCIAL SUPPORT OPERATION

APPROVED ON MARCH 26, 2013

TO

FEDERAL REPUBLIC OF NIGERIA

SOCIAL PROTECTION & JOBS

AFRICA

Regional Vice President: Makhtar Diop Country Director: Rachid Benmessaoud

Senior Global Practice Director: Michal J. RutkowskiPractice Manager/Manager: Iffath Anwar Sharif

Task Team Leader: Foluso Okunmadewa

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ABBREVIATIONS AND ACRONYMS

CSOs Civil Society OrganizationsFOCU Federal Operation Coordinating UnitHCBI Host Community Based IdentificationIDA International Development AssociationIDP Internally Displaced PersonIDPs Internally Displaced PersonsNASSCO National Social Safety Nets Coordinating OfficeNDE National Directorate of EmploymentNGOs Non-Governmental OrganizationsPDO Project Development ObjectivePIUs Project Implementation UnitsPWF Public Work FareSOCU State Operation Coordinating UnitS4J Skills for JobSRB Single Register of BeneficiariesSSRB Single Social Register of BeneficiariesSSNIA Social Safety Nets Intervention AgencyTGT Targeted Grant TransferURB Unified Register of BeneficiariesYESSO Youth and Social Support Operation


BASIC DATA

Product Information

Project ID Financing Instrument

P126964 Investment Project Financing

Original EA Category Current EA Category

Partial Assessment (B) Partial Assessment (B)

Approval Date Current Closing Date

26-Mar-2013 30-Jun-2020

Organizations

Borrower Responsible Agency

Federal Republic of Nigeria State Operation Coordination Units

Project Development Objective (PDO)

Original PDOThe objective of the operation is to increase access of the poor to youth employment opportunities, social services, and strengthened safety net systems in participating states.

Current PDOThe project development objective is to increase access of the poor and vulnerable, using improved social safety net systems, to youth employment opportunities in all Participating States and to provide Targeted Cash Transfers to the poor, vulnerable and internally displaced people (IDPs) in the North East States.OPS_TABLE_PDO_CURRENTPDOSummary Status of Financing

Ln/Cr/Tf Approval Signing Effectiveness ClosingNet

Commitment Disbursed Undisbursed

IDA-58390 07-Jun-2016 30-Aug-2016 27-Feb-2017 30-Jun-2020 100.00 0 97.73

IDA-52120 26-Mar-2013 16-Apr-2013 07-Aug-2013 30-Jun-2020 300.00 48.32 232.38


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?No

A. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING

1. The original Youth Employment and Social Support Operation (YESSO) in the amount of IDA US$300 million equivalent was approved on March 26, 2013 and became effective on August 7, 2013. An Additional Financing (AF) of IDA US$100 million focused on the North East was approved on June 7, 2016. The AF was introduced as a response to the devastation by the insurgency in the region as detailed in the Recovery and Peace Building Assessment undertaken by the Government of Nigeria and Development Partners in 2015. The project development objective of the original project was then revised to “increase access of the poor and vulnerable, using improved social safety net systems, to youth employment opportunities in all participating states and to provide targeted grant/cash transfers to the poor, vulnerable and internally displaced people (IDPs) in the northeast states”. The four components of the Operation were revised as follows: (i) Building social safety net systems; (ii) Public Work Fare (PWF); (iii) Skills for Job (S4J) and (iv) Targeted Cash/Grant Transfer (TGT).

2. Performance on the operation is low and implementation is slow, as less than 13% of the project proceeds have been disbursed, as at end April 30, 2018. The progress towards the project development objective is moderately unsatisfactory and overall implementation is moderately unsatisfactory. While the financial management system is satisfactory and the monitoring system is well developed, the overall extremely slow pace of implementation is of great concern. While the first component on creation of state level single registers using a community based targeting and identification process is proceeding smoothly, the intervention components, on PWF, S4J and TGT, are very slow. As at September 2017, there were 576,000 individuals in 110,700 Households on the State Single Registers in 8 States. However, there were only 7,427 PWF Beneficiaries engaged and paid in Bauchi and Niger States. Close to 6,000 beneficiaries were mined and are to be deployed and paid regularly in Kogi, Osun, Ekiti and Oyo before end of 2017. Also, as at September 2017 the Skills for Job intervention in 7 States has 2,235 youths engaged and paid in the first cycle. The intervention components were generally constrained by fiscal and operational challenges, specifically: delays with the Registry which in turn delayed implementation of intervention components; overly-complex design of some of the intervention components; and Government’s financial contribution in some of the participating States. The SR has since picked up and there are now more potential beneficiaries but the complexity of the interventions and poor fiscal position of government will be addressed through this restructuring.

3. As at September 2017, there were no major procurement issues, even though the process is quite delayed. The methodology of procurement adopted did slow-down activities especially on engagement of payment service providers and skills-for-job trainers. Simplified procurement methods (Non-Consulting services, Use of NGOs and universities in the respective states, direct contracting or sole sourcing using UN


Agencies) were introduced through the assistance of the Bank procurement team. Both the Federal Coordinating Unit and SOCUs have since benefited from the STEP training organized by the Bank in January 2018, and all the procurement plans were reviewed and uploaded in STEP for implementation. There are no overdue IFRs and audit and the funds flow arrangements as well as withdrawal application processing for the operation remain adequate and appropriate.

4. Also due to limited intervention activities, there are currently no environment and social safeguard issues. The initial PWF sites were prescreened for environmental and social risks in line with the ESMF. Nevertheless, adequate community / occupational health and safety measures will be put in place to ensure safety of beneficiaries and the public during public work fare activities. Other applicable environmental and social due diligence process, where applicable, would be carried out upon determination of the extent of public works and other subproject activities in line with the project RPF and ESMF. This restructuring does not trigger new Safeguards Policies. In addition, the potential environmental and social impacts are materially consistent with the category B status of the project and will be envisaged, prevented and mitigated through the steps enunciated in the ESMF and RPF. The Grievance Redress Mechanism of the Social Registry process is working smoothly. Additional support to further strengthen the process would be provided as implementation proceeds.

5. A mid-term review was conducted in November 6 – 13, 2017 which examined the overall progress towards achieving the PDO and assessed that some revisions were needed to the implementation mechanism and structures, in order to ensure the project speeds up implementation and is able to achieve its development objectives. The proposals for project restructuring were discussed and agreed with Government.

B. DESCRIPTION OF PROPOSED CHANGES

I. Public Work-fare process simplification and manual revision

6. The original design of component 2 focused on public assets and government contribution, thus making the process capital intensive, complex and invariably slowed down implementation. It was agreed that the process should be simplified by making the component less capital-intensive and less institutionally dense. The beneficiaries are deployed to labor based aspects of infrastructure development and maintenance of community-driven microprojects. This will require lower operating costs and encourage State Governments to easily provide the required 10% complementary resources to the component. This and other revisions will accelerate implementation of the component. Other proposed revisions to the component include:

Reduction in the number of activities listed for the readiness package for start of PWF cycle. There are about 15 items/activities listed in the operations manual to be prepared in readiness for commencement of PWF. These has been reviewed to only about 8 items which are mainly operational process documents/checklist. Listing of community projects that beneficiaries will work on, purchase of tools and equipment that beneficiaries will use were some of the constraining pre-implementation activities that were removed. Essentially this was to reduce the capital intensiveness and delay of starting the PWF

Standardization and reduction in the number of days to be used for monitoring/supervision of public works activities by State project unit. It was proposed that the supervision is to be done by the Head of the


CBT Team at LGA level, and monitoring by the SOCU M&E team. Also the number of days for SOCU team was reduced to 8 days from 15-20 days.

Reduction in the number of days for orientation. This is to be dictated by the number of beneficiaries/type of orientation adopted by each State and should not be more than 3 days.

Reduction in days for life skill training from 5 to 2 days /month and increase in the number of work days from 15 to 18 days. Beneficiaries were expected to participate in the public workfare activities for 20 days per month (15 days of employment and 5 days of life skills training) to be eligible for monthly stipend. The proposed change would give them 18 days of employment and 2 days of life skills training. The generic manual is to be revised to introduce the proposed changes as a result of the restructuring as well as to ensure clarity of information across all participating States. This would also enhance aggregation of outputs and results. By the federal team

II. Revision of Skills for Job (S4J) Component

7. The S4J component was designed as a pilot, and the analysis of the first cycle of implementation has indicated the need to further review some of the operational processes, to ensure accelerated implementation and possible scale-up. It was agreed to conduct an impact as well as process evaluation during the second round of the S4J. Some of the binding constraints, such as long and complex procurement process and sourcing of private sector operators for apprenticeship opportunities for the trainees will be revised to allow comparison between first and second cycle process, while an experimental design will be used for the second cycle to undertake an impact evaluation. The experimental design and implementation, to be support by the World Bank Team, would be used to test the efficacy of life skills and the length of time spent on apprenticeship. In addition, the design of S4J envisaged that government would provide starter packs to beneficiaries (to guarantee exit from program) and pay for consumables and incentives to trainers. However, most state governments showed little or no commitment to provide this funding during the first cycle. It was, therefore, agreed, that in the second round of beneficiaries, IDA funds would be used for payment to trainers during internships and thus creating a basis for operational/process assessment of the two cycles. The use of state-owned institutions by State governments and NDE, for the training of beneficiaries mined/selected from the state social register would also be explored

III. Acceleration of the compilation of Unified Register of Beneficiaries for the North-East Region in addition to the Single Social Register of Poor and Vulnerable.

8. The MTR noted that as critical as the Unified Register of Beneficiaries is to compilation of poor and vulnerable and internally displaced people (IDP) in the North East and for mining/selecting beneficiaries, the exercise was progressing at a very slow pace. It was agreed that the URB needs to be accelerated. Hence, the Host Community Based Identification (HCBI) process of enumerating and documenting the IDPs into URB is to be outsourced to humanitarian agencies, CSOs, NGOs, Universities or firms to hasten the process. All IDPs will be enumerated and documented using the HCBI. Once the URB has been completed, beneficiaries can be selected by the Social Safety Net intervention Agencies (PWF and TGT PIUs) for the PWF and TGT interventions. The URB, created can also be used by any government (federal, state and local) agency as well as NGOs, other donor agencies in providing support for the IDPs. The URB as a subset of the SSR provides an opportunity to


increase the pace and number of beneficiaries to be supported under the TGT and PWF components in the North East.

IV. Revision of the Targeted Cash/Grant Transfer Component

9. The TGT component is an intervention that is targeted only to the North-East and is meant to address the deplorable living conditions of IDPs, whether in IDP camps or host communities. It is designed to provide grant transfers to IDPs, especially those that are willing to return to their original communities, or other communities that are deemed safe to inhabit. The revised TGT component, which has been increased from N150,000.00 to N200,000.00, shall be paid in four tranches as follows: Basic Transfer (N20,000.00), Relocation Grant (N30,000.00), Resettlement Grant (N100,000.00) and Stability Grant (N50,000.00). The increase in the total TGT package is to accommodate the newly introduced Basic Transfer round. This would increase disbursement and accelerate welfare improvement for the IDPs.

V. Strengthening of implementation and management Capacity for YESSO

10. Issues that impede YESSO implementation and management include inadequate staff capacity ranging from qualification, experience (quality) and quantity of staff, as well as appointing political office holders as staff of state SOCU and PIUs. On the issue of capacity, some staff in the state SOCUs and PIUs do not have the relevant experience and qualification to carry out their assignments due to the procedure of recruitment into the Operating unit, a process that was not competitive. Secondly, the use of political appointees as staff creates stability problems for operations management. There is fluidity of political office holders’ tenure. It was, therefore, agreed that: (a) the staff recruitment process should be competitive, follow agreed procedure and that consultants may be used where necessary, (b) there will be regular on-the-job training and peer learning to build staff capacity, and (c) trainings for staff capacity building should be based on skills gap analysis.

VI. Revision of Result Framework

11. Slight changes to end targets of the project development and some intermediate results indicators will be introduced .

200,000 youths receiving cash payment in return for working in the public works program in each participating state

Fifteen (15) States using the single and unified registry for selecting eligible beneficiaries for various interventions

5,000 Trained youths from selected benefiting households with job (increasing earning) one year after completion of skills for job intervention

50,000 vulnerable households receiving targeted grant transfers in the North East. 255,000 direct project beneficiaries 50% female beneficiaries.

VII. Reallocation of Resources by Operation Components.


12. No resource reallocation by expenditure/disbursement categories is proposed but a marginal notional reallocation by components is proposed. The allocation to the Targeted grant transfer component was increased by US$40m, while the public workfare component was reduced to US$200m from US$240m. This is in view of the increased focus on the North-East agenda and change in the approach as well as magnitude of transfers. The changes on the skill for job components and the simplification of the public workfare component, making it less dependent on government contributions, also contribute to the justification for the notional reallocation of resources among the components.

C. SUMMARY OF CHANGES

Changed Not Changed

Change in Results Framework ✔

Change in Components and Cost ✔

Change in Overall Risk Rating ✔

Change in Implementing Agency ✔

Change in DDO Status ✔

Change in Project's Development Objectives ✔

Change in Loan Closing Date(s) ✔

Cancellations Proposed ✔

Reallocation between Disbursement Categories ✔

Change in Disbursements Arrangements ✔

Change in Disbursement Estimates ✔

Change in Safeguard Policies Triggered ✔

Change of EA category ✔

Change in Legal Covenants ✔

Change in Institutional Arrangements ✔

Change in Financial Management ✔

Change in Procurement ✔

Change in Implementation Schedule ✔

Other Change(s) ✔

Change in Economic and Financial Analysis ✔


Change in Technical Analysis ✔

Change in Social Analysis ✔

Change in Environmental Analysis ✔

IV. DETAILED CHANGE(S)

OPS_DETAILEDCHANGES_RESULTS_TABLE

RESULTS FRAMEWORK

Project Development Objective Indicators PDO_IND_TABLE

Youths receiving cash payment in return for working in the public works program in each participating state (disaggregated by gender and IDP status).Unit of Measure: NumberIndicator Type: Custom

Baseline Actual (Current) End Target Action

Value 0.00 10000.00 200000.00 Revised

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

States using the single and unified registry for selecting eligible beneficiaries for various interventions (disaggregated by gender and IDP)Unit of Measure: NumberIndicator Type: Custom


Value 0.00 8.00 15.00 Revised

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Trained youths from selected benefiting households with job (increasing earning) one year after completion of skills for job intervention (disaggregated by gender, IDP and employment status)Unit of Measure: NumberIndicator Type: Custom


Value 0.00 0.00 5000.00 Revised

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Direct project beneficiariesUnit of Measure: NumberIndicator Type: Custom



Value 0.00 10000.00 255000.00 Revised

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Female beneficiariesUnit of Measure: PercentageIndicator Type: Custom Supplement



Number of vulnerable households receiving targeted grant transfers in the North EastUnit of Measure: NumberIndicator Type: Custom


Value 0.00 0.00 50000.00 No Change

Date 21-Apr-2016 10-Nov-2017 30-Jun-2020

Intermediate IndicatorsIO_IND_TABLE

Coordinating platform at Federal level functionalUnit of Measure: TextIndicator Type: Custom


Value No Coordination platform

YESSO Coordination Platform in place at Federal and State level and functionality is improving gradually. the State platform is also now used by other federal interventions

Functional No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Final SP/SSN strategic framework developedUnit of Measure: Yes/NoIndicator Type: Custom



Value No Yes Yes No Change

Date 07-Aug-2013 30-Dec-2016 30-Jun-2020

Single Registry for selecting and tracking eligible beneficiaries available for use by participating StatesUnit of Measure: NumberIndicator Type: Custom



Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

States that use agreed criteria in the selection of beneficiaries (disaggregated by interventions).Unit of Measure: NumberIndicator Type: Custom


Value 0.00 8.00 12.00 No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Youths who completed assigned tasks.Unit of Measure: NumberIndicator Type: Custom


Value 0.00 10000.00 200000.00 No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Average working time per dayUnit of Measure: HoursIndicator Type: Custom



Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Youths who receive orientation and life skills training (disaggregated by gender).Unit of Measure: NumberIndicator Type: Custom



Value 0.00 12000.00 205000.00 Revised

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Number FemaleUnit of Measure: NumberIndicator Type: Custom Breakdown


Value 0.00 4000.00 102500.00 Revised

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Youths who graduated from internship programs (disaggregated by gender)Unit of Measure: NumberIndicator Type: Custom


Value 0.00 0.00 50000.00 No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020



Value 0.00 0.00 25000.00 No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Youths trained in life, vocational and entrepreneurial skills (disaggregated by gender).Unit of Measure: NumberIndicator Type: Custom


Value 0.00 2325.00 50000.00 No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020




Value 0.00 854.00 25000.00 No Change

Date 07-Aug-2013 10-Nov-2017 30-Jun-2020

Number of IDPs (from existing registry) resettled/relocated to safe communities in the North EastUnit of Measure: NumberIndicator Type: Custom


Value 0.00 0.00 150000.00 No Change

Date 21-Apr-2016 10-Nov-2017 30-Jun-2020

Number of poor, vulnerable and IDPs with improved consumption in the North EastUnit of Measure: NumberIndicator Type: Custom


Value 0.00 0.00 200000.00 Revised

Date 21-Apr-2016 10-Nov-2017 30-Jun-2020

Percentage of project beneficiaries satisfied with project interventionsUnit of Measure: PercentageIndicator Type: Custom



Date 21-Apr-2016 10-Nov-2017 30-Jun-2020

Percentage of grievances addressed within the timeframe stipulated in the Operations ManualUnit of Measure: PercentageIndicator Type: Custom


Value 0.00 100.00 70.00 No Change

Date 21-Apr-2016 10-Nov-2017 30-Jun-2020


OPS_DETAILEDCHANGES_COMPONENTS_TABLE

COMPONENTS

Current Component Name

Current Cost

(US$M)Action Proposed

Component NameProposed

Cost (US$M)

Component 1: Strengthening Social Safety Net System 20.00 No Change Component 1: Strengthening

Social Safety Net System 20.00

Component 2: Public Workfare Program 240.00 Revised Component 2: Public Workfare

Program 200.00

Component 3: Skills for Jobs Program 40.00 No Change Component 3: Skills for Jobs

Program 40.00

Component 4: Targeted Cash Transfer (TCT) 100.00 Revised Component 4: Targeted Cash

Transfer (TCT) 140.00

TOTAL 400.00 400.00

OPS_DETAILEDCHANGES_SORT_TABLE

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating at Approval Current Rating

Political and Governance Substantial

Macroeconomic Substantial

Sector Strategies and Policies Moderate

Technical Design of Project or Program Moderate

Institutional Capacity for Implementation and Sustainability

Substantial

Fiduciary Moderate

Environment and Social Moderate

Stakeholders Moderate

Other Moderate

Overall Substantial

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