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Community Action for Nutrition Project (Sunaula Hazar Din)

(IDA Credit No. 5137-NP and IDA Grant No. H786-NP)

Implementation Review and Support Mission

June 2-13, 2014

Aide-Memoire

A. Introduction

1. A World Bank team1 led by Manav Bhattarai (Task Team Leader) carried out an implementation

review of the Sunaula Hazar Din - Community Action for Nutrition Project from June 2-13, 2014.

The objectives of the consultation were to assess the overall implementation progress and identify

key steps in order to move forward to ensure accelerated implementation of the project activities.

2. The team would like to express its sincere thanks to the officials of the Ministry of Federal Affairs

and Local Development (MOFALD) which include Mr. Reshmi Raj Pandey (Joint Secretary, Project

Director), Mr. Tekraj Niraula (Under Secretary, Project Coordinator), Mr. Baburam Shrestha (Chief

Controller), Mr. Tula Raj Sunuwar (M & E Officer), Mr. Mahesh Pokharel (Procurement Consultant)

and Mr. Indra Bhujel (Social Mobilization Consultant), Mr. Dhananjaya Poudyal (Nutrition

Specialist) and Mr. Bishnu Bahadur Rayamajhi (Accounts officer) for organizing the consultations

and for the courtesies and cooperation extended to the World Bank team. The team had the

opportunity to visit Sunsari and Saptari districts to see communities implementing Rapid Results

Initiatives. The list of people met is included in Annex 1.

3. This Aide Memoire (AM) summarizes the discussions and agreements reached during the

consultations. The team’s findings, summarized in this AM, were discussed at a wrap-up meeting,

chaired by Mr. Shanta Bahadur Shrestha, Secretary, (MOFALD) on June 13, 2014. As agreed at the

wrap up meeting, this AM will be classified as a public document under the World Bank’s Access to

Information Policy.

B. Key Project Data

Project Data Project Performance Ratings

Board Approval: June 26, 2012

Effectiveness Date: August 24, 2012

Original Closing Date: June 30, 2017

MTR Date: (Planned) January 2015

Original Cr. Amount: USD40 million

Amount Disbursed: 2.04 million (5.1%)

(As of June 30, 2014)

Summary Ratings: Last Now

Achievement of PDO MU MU

Implementation Progress MU MS

Project Management MU MS

Procurement MU MS

Financial Management U MS

Safeguards MS MS

M&E MS MS

Counterpart Funding S S

HS=Highly Satisfactory; S=Satisfactory; U=Unsatisfactory; HU=Highly Unsatisfactory; NA=Not Applicable;

NR=Not Rated

1 The team consisted of : Manav Bhattarai, Health Specialist and Task Team Leader) Albertus Voetberg, Lead

Health Specialist; Preeti Kudesia, Senior Health Specialist; Tekabe Belay, Senior Health Economist; Phoebe Folger,

Operations Officer; Silvia Kaufmann, Senior Nutrition Specialist; Daniel Stein, DIME; Gogi Grewal. DIME, Timila

Shrestha, Financial Management Specialist; Annu Rajbhandari, Environmental Specialist; Ramesh Raj Bista,

Procurement Specialist and Jasmine Rajbhandary, Social Protection Specialist.

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C. Achievement of Development Objectives Status

4. The Project Development Objective (PDO) is to improve attitudes and practices known to improve

nutritional outcomes of women of reproductive age and children under the age of 2. The project will

achieve this development objective by creating demand for nutrition related services and products.

There has been an accelerated implementation of rapid results for nutrition initiatives in the last few

months in 94 VDCs of 10 districts as was agreed during the last implementation support visit. Out of

831 such initiatives more than 90% have already received budget and have started working. Although

progress has been noted in the last four months, the project team still needs to focus on

implementation in order to make up for the implementation delays suffered earlier to ensure the

likelihood of achieving the PDO. The PDO, therefore, has been retained as “Moderately

Unsatisfactory”. Detailed status of the PDO and its indicators are included in Annex 2.

D. Current Implementation Status

5. The team reviewed with the government the progress made till date including the progress on the

actions agreed during the implementation review and support mission in February, 2014. Since the

team observed sufficient progress in most of the pending activities of individual project components,

project management, financial management and procurement including compliance to legal

covenants like finalization of the Operations Manual and Sub-grant guidelines, the implementation

progress has been upgraded to “Moderately Satisfactory”. The progress needs to further accelerate

to create adequate basis to increase the likelihood of achieving the PDO.

The attached table shows the status of actions agreed during the last mission:

Actions Date Agreed Status

1. First round of sub-projects will be completed in 50%

of the wards of 94 VDCs July 15, 2014 Ongoing. Of agreed 243

initiatives, 831 were

initiated and 770 have

received money to conduct

activities and are expected

to finish on time.

2. BER for Laptop computers to be submitted to the

World Bank February 15, 2014 Completed, and goods

procured

3. Coaches for 90 VDCs to be hired

March 7, 2014 Completed

4. Firm for training/orientation of FSNSC to be hired

May 15, 2014 Delayed, Contract

evaluation phase

5. Procurement process for consulting and non-

consulting services related to additional activities in

IEC to be completed

May 30, 2014 IEC materials printed

6.

Project Operations Manual will be finalized and

submitted to the Bank

February 28, 2014 Completed

7. Capacity assessments of project DDCs from a

financial management perspective to be completed June 30, 2014 Delayed

8. A dedicated and full time accounts officer as

member of core PMT team to be assigned February 28, 2014 Completed

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E. Project Components

6. Component 1 (estimated US$34.86 million) Rapid Results for Nutrition Initiatives (RRNI) at

the ward level. The team congratulates the government for progress made under this component. Of

the 423 initiatives agreed to be complete by July 15, 2014, 831 RRNI have been grounded. Of these,

more than 90% of the communities have received the funds and have started working. The team

observed during field visits the excitement and enthusiasm in those communities to successfully

complete the first cycle of initiatives on time.

7. The team expressed concern regarding the slow pace of fund flow to communities and encouraged the

government to expedite the fund flow to those remaining communities which have not yet received

the funds. In order to make up for implementation delays of one year, we are pleased to note that the

government is considering allowing multiple initiatives in the communities beginning with the next

cycle. This would not only accelerate disbursement but also help to more rapidly produce a

developmental impact on nutrition behaviors. In the communities visited, the team observed a great

deal of community interest to implement multiple initiatives and their confidence that they could do

so. However, the team agreed to allow multiple initiatives only in those communities which were

successful in their first cycle. It is expected that successful communities achieve 80% of the targets

set in their proposals.

8. National Service Providers (NSPs) contracted by the Ministry recruited coaches who facilitate the

communities to choose goals and prepare proposals for sub-projects and help them to implement

activities in 94 VDCs. During the field visits, it was observed that the coaches will need constant

supervision and mentoring in order for them to help the communities to implement the sub-projects.

The government agreed that such provisions will be made to mentor the coaches.

9. The team also pointed out that the work to be done by coaches is comparable to the work done by

existing social mobilizers of Local Governance and Community Development Program (LGCDP),

and given that the government has decided to increase the salaries of social mobilizers from NRs.

7,000.00 to NRs. 10,000.00 per month, the project should also explore the possibility of raising the

salaries of the coaches to the same amount.

Agreed Actions:

• During the second round of sub-projects, only communities which have achieved 80% of their

targets will be allowed to undertake multiple initiatives.

• The remaining communities which have not received funds for the first cycle will receive the

funds by June 30, 2014.

• Every three months, the coaches will receive mentoring and supervision support.

10. Component 2 (estimated US$5.14 million) Project Management, Capacity Building, Monitoring

and Evaluation (M&E). This component relates to procurement and financial management activities

which include procurement of goods and consultation services for capacity enhancement and district

financial capacity assessment, finalization of operations manual and establishment of Management

Information System (MIS). Based on the good progress observed in this component as detailed

below, the rating for project management has been upgraded to “Moderately Satisfactory”.

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F. Procurement, Financial Management (FM) and Disbursement

Procurement

11. The team reviewed the implementation of the procurement plan and noted that most of the

procurement activities planned for the year have been completed. Some procurement activities in

consulting services and goods categories have been delayed and are now planned for the next fiscal

year. The team suggested preparing an updated procurement plan for the next fiscal year while

preparing the proposed annual work program and budget and submitting it to the World Bank for its

review by July 31, 2014. Selection of Service Providers for clusters 1 and 3 are in place and

reselection process for Cluster 2 has been initiated and the technical evaluation has been submitted to

the World Bank for review. This is a critical activity for meeting the project objectives. Procurement

of laptops and computers and services for printing materials has been completed. The contract for

vehicles has been signed. Based on the significant progress made on procurement activities and its

positive impact in project implementation, procurement performance rating has been upgraded to

“Moderately Satisfactory”.

Agreed Actions:

• An updated Procurement Plan for FY 2014/15 to be submitted to the World Bank by July 31,

2014.

• Hiring of National Service provider for cluster 2 to be completed by August 15, 2014.

• Hiring of a firm to train/orient district and VDC level stakeholders by July 15, 2014.

Financial Management and Disbursement

12. The review noted good progress in financial management with most agreed actions being completed,

and setting a good ground for continuing good financial information system. The mission is pleased

to note that an Accounts Officer as well as an Accounts Assistant has been assigned for the project.

The mission is also pleased to see that the Project Operations Manual has been approved and

disseminated to the concerned offices. The required books of accounts have also been maintained

except for ledgers as per the approved programs/activities which the project has been advised to

maintain. The mission appreciated the project’s efforts in submitting the financial reports on time.

There were no major issues raised in the external audit report of FY2012/13. The mission, however,

reminded one pending action which was agreed during appraisal which relates to carrying out the

capacity assessments of project District Development Committees (DDCs) from a financial

management perspective. The mission noted that the Request for Proposal (RFP) has been issued and

the contract is expected to be awarded by July 2014 and capacity assessment completed by October

2014. Some internal control deficiencies identified during the mission were recommended for

rectification.

13. Out of the approved budget of NPR 590.6 million for FY 2013/14, only 1.98% expenditure has been

incurred up to May 14, 2014. The mission noted that the budget was approved with the expectation

that the communities will be able to undertake at least two cycles of sub-projects in 15 districts but

due to delay in establishing institutional arrangement for rolling out the sub-projects, expenditures

could not be incurred as expected. As of the review date, only one cycle of sub-projects had been

initiated in 10 out of 15 districts. The sub-projects will be implemented as per the recently adopted

Project Operations Manual. The corresponding expenditures for those sub-projects will be reflected in

the last trimester. The implementation of the project is therefore expected to improve, especially in

the Sub-Grants category which is the main component of the project.

14. Disbursement is running very slow. As of June 30, 2014, the disbursements comprise of initial

advance to the Designated Account of USD 2 million and a replenishment of USD 40,795.67, which

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is only about 11.3% of the allocated funds under IDA Grant. There has been no disbursement against

IDA Credit. With the improvement in implementation, the disbursement is expected to pick up in

FY2014/15.

15. Based on the completion of most of the agreed actions and the progress observed, the financial

management of the projects is upgraded to “Moderately Satisfactory”

Agreed Actions:

• Complete the capacity assessment of project DDCs from a financial management perspective by

October 30, 2014.

• Submit third trimester Implementation Progress Report of FY2013/14 by August 31, 2014.

• Submit unaudited accounts of FY2013/14 by October 15, 2014.

G. Safeguards

16. As agreed in the last mission, Operation Manual of the project includes provision made in the

Environment and Safeguard Management Framework (ESMF) including environmental screening for

safeguard compliance. During the field visits in Sunsari and Saptari districts, the team observed

initiatives like Sanitation and Hygiene in a school, creating open defecation free communities,

encouraging exclusive breastfeeding and encouraging increased consumption of animal sourced

protein among pregnant women and children. The visit to the few wards revealed that toilets have

been constructed in schools considering the safeguard aspects for improving the hygiene and

sanitation in the school premises. Similarly, at the household level toilets have been constructed

considering proximity from the water sources, appropriate location for soak pit and septic tank and

water availability. The coaches are using the developed manuals which also include the safeguard

concerns (which was shared to the WB safeguard specialists) are being used for monitoring purposes.

The Bank team recommended the project to adhere to ESMF while selecting the site for poultry

farming (for providing animal protein to pregnant women and children) so that the environmental

issues are considered well in advance. Rating for the safeguard has been retained as “Moderately

Satisfactory”.

H. Results Framework and Monitoring & Evaluation

17. Although preliminary baseline data were received four months ago, the final baseline data turned out

slightly different and thus have been updated in the Operations Portal. However, the targets to be

achieved will remain the same. Since some progress on the sub-projects being conducted in the field

have been reported, the intermediate results indicators have now also been updated. The government

is doing its regular monitoring of the performance of the National Service Providers and the coaches

and their work with the communities. The third party monitoring has begun in the field as well and

their independent review will provide the assurance whether the funds are being used for their

intended purpose.

18. The team reviewed the progress on the impact evaluation. The project runs in two phases and the

VDCs are randomized for impact evaluation into two groups. The first group is called an “early

starter” and the VDCs in this group already have ongoing sub-projects. The second group is called a

“late starter” and will have sub-projects beginning FY16. The implementation of sub-projects is

happening as per the randomization with implementation beginning in most of the early starter VDCs

in clusters 1 and 3 districts. The treatment in which VDCs are required to have female leaders of the

RRNI group also seems to have good compliance, as the data shows that 80% of wards in this

category have female leaders as compared to 40% in wards without this requirement. However, the

strategy for promoting specific focus areas appears to have been less successful. In the field visits,

some coaches were aware of focus area promotion and communicated it to their groups, but others

were not at all aware of the policy. The team recommends that all coaches receive refresher training

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before the next cycle in which the idea and methods of suggested focus areas is reinforced. Finally,

there was a worrisome error rate between data given provided by the National Service Provider (NSP)

(on focus areas chosen and gender of RRNI group leaders) compared to what was observed in the

field. The team recommends that the NSP develops a more rigorous and traceable system for

collecting this data, and re-confirms all data from the first cycle.

19. The team expressed concerns that the a digital Management Information System (MIS) should have

been in place for proper records but the hiring of a firm to establish this has been delayed due to

administrative reasons. A proper MIS in place will reduce errors of reporting.

20. Based on the above progress, the rating for Monitoring and Evaluation has been retained as

“Moderately Satisfactory”

Agreed Action:

• Award of contract for MIS to be completed by July 31, 2014.

21. Access to Information

22. The Government agreed that the Aide Memoire can be disclosed as a public document under the

World Bank’s Access to Information Policy.

Proposed Next Consultation Visit

23. The timing for the next implementation support visit is planned around November/ December, 2014,

with a focus on reviewing the implementation progress creating adequate ground to increase the

likelihood of achieving the PDO within the project period. The mission will also discuss about the

timing for mid-term review planned for the beginning of 2015.

Summary of Agreed Actions

Actions Date Responsible

1. During the second round of sub-projects, only

successful communities will be allowed to

undertake multiple initiatives.

Next cycle onwards MOFALD

2. The remaining communities which have not

received funds for the first cycle will receive the

funds

June 30, 2014. MOFALD

3. Every three months, the coaches will receive

mentoring and supervision support.

On-going MOFALD/World

Bank

4. An updated Procurement Plan for FY 2014/15

to be submitted to the World Bank

July 31, 2014 MOFALD

5. Hiring of National Service provider for cluster 2

to be completed

August 15, 2014 MOFALD

6. Hiring of a firm to train/orient district and VDC July 15, 2014 MOFALD

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level stakeholders

7. Complete the capacity assessment of project

DDCs from a financial management perspective

October 30, 2014 MOFALD

8. Submit third trimester Implementation Progress

Report of FY2013/14

August 31, 2014 MOFALD

9. Submit unaudited accounts of FY2013/14 October 15, 2014 MOFALD

10. Award of contract for MIS to be completed July 31, 2014 MOFALD

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Annex 1:

LIST OF PEOPLE MET

Ministry of Federal Affairs and Local Development

1. Mr. Shanta Bahadur Shrestha, Secretary

2. Mr. Reshmi Raj Pandey, Joint Secretary and Project Director

3. Mr. Tekraj Niraula, Under Secretary and Project Coordinator

4. Mr. Baburam Shrestha, Finance Officer

5. Mr. Tula Raj Sunuwar, Monitoring and Evaluation Officer

6. Mr. Mahesh Pokharel, Procurement Expert

7. Mr. Indra Bhujel, Social Mobilization Expert

8. Mr. Dhananjaya Poudyal, Nutrition Specialist, MOFALD

9. Mr. Bishnu Bahadur Rayamajhi, Accounts Officer

Ministry of Finance

1. Mr. Lal Bahadur Khatri, Under Secretary, IECCD

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Annex 2:

Results Framework and Monitoring

.

Country: Nepal

Project Name: Community Action for Nutrition Project (Sunaula Hazar Din) (P125359)

.

Results Framework .

Project Development Objectives .

PDO Statement

The Development Objective for the Project is to improve attitudes and practices known to improve nutritional outcomes of women of reproductive age and children under the age of 2. Changes in

attitudes and practices would address the key risk factors for child malnutrition and create demand for nutrition related services and products. The supply of these services and products will be provided

through existing public sector and donor-funded programs, the private sector and, to a limited extent, financed through the Project. .

Project Development Objective Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name Core Unit of Measure Baseline YR1 YR2 YR3 YR4 End Target Frequency Methodology Data Collection

Percentage of unmet family planning needs

among women 15-25

years of age

Percentage 31.5 (final

data) 25

Baseline, Mid-

term and end-of-Project

Surveys Consulting firms

Percentage of pregnant

women taking iron and folic acid (IFA)

supplements for 180 days

Percentage 20.5 (final

data) 30

Baseline, Mid-

term and end-of-

Project

Surveys Consulting firms

Percentage of children 0-6 months age who are

exclusively breastfed Percentage

69.0 (final

data) 80

Baseline, Mid-term and end-of-

Project

Surveys Consulting firms

Percentage of children 6-

24 months age who

consume a minimum acceptable diet

Percentage 9.3 (final

data) 25

Baseline, Mid-term and end-of-

Project

Surveys Consulting firms

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Attitude of community

members towards the importance of keeping

girls in school until at

least 20 years of age

Percentage

36.6

favorable

% score

50 Baseline, Mid-term and end-of

Project

Surveys Consulting firms

Attitude of community

members towards the

importance of reducing indoor air pollution

Percentage

32.1

favorable

% score

50 Baseline, Mid-term and end-of-

Project

Surveys Consulting firms

Attitude of pregnant

women towards the

importance of eating

three time a day

including at least one animal-sourced food per

day

Percentage

75

favorable

% score

92

Baseline, Mid-

term and end-of-

Project

Surveys Consulting firms

.

Intermediate Results Indicators

Cumulative Target Values Data Source/ Responsibility for

Indicator Name Core Unit of Measure Baseline YR1 YR2 YR3 YR4 End Target Frequency Methodology Data Collection

Number of wards

carrying out RRNIs Number 0.00 831 2000.00

Trimesterly,

Annually

Routine

monitoring MOFALD

Percentage of wards

carrying out RRNIs per

selected VDC Percentage 0.00 98.2 80.00

Trimesterly, Annually

Routine monitoring

MOFALD

Number of RRNIs per ward per year

Number 0.00 1 2.00 Trimesterly, Annually

Routine monitoring

MOFAFALD

Characteristics of RRNI teams: % females

participating in all RRNIs Percentage 60.1 40.00

Trimesterly,

Annually

Routine

monitoring MOFALD

Characteristics of RRI

teams: % minority

participation (e.g. dalits,

janajatis, sunuwar) in all

RRIs

Percentage 51 40.00

Trimesterly,

Annually

Routine

monitoring MOFALD

Percentage of successful

RRIs / VDC

Percentage

Will be

available

after July

15, 2014

80.00 Trimesterly,

Annually

Routine

monitoring MOFALD

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Average time between

RRI proposal submission and approval/rejection

Days 35.5 21.00 Trimesterly,

Annually

Routine

monitoring MOFALD

Percentage of RRIs that

could not take off due to

public sector supply side delays

Percentage

Will be

available

after July

15, 2014

20.00 Trimesterly,

Annually

Routine

monitoring MOFALD, VDC, DDC

Semi-annual meetings of

coaches conducted Text No Conducte

d Twice a year Bi-annually

Routine

monitoring MOFALD

RRNI Process evaluation

conducted Text No Planned Yes Once, at Mid-term Mid-term review MOFALD

.

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Annex 3:

Financial Management

Budget and Expenditures for FY 2013/14:

As of May 14, 2014, the following expenditures were incurred in FY 2013/14:

NPR in Million

Budget Expenditure

GON IDA Total GON IDA Total

% of

Budge

t

F/Y 2012/13

Recurrent - 560.00 560.00 - 10.85 10.85 1.93%

Capital - 30.60 30.60 - 0.85 0.85 2.76%

TOTAL - 590.60 590.60 - 11.70 11.70 1.98%

Out of the approved budget of NPR 590.6 million for FY 2013/14, only 1.98% expenditure has

been incurred up to May 14, 2014. The mission noted that the above budget was approved with

the expectation that the communities will be able to undertake at least two cycles of sub-projects

in 15 districts but due to delay in establishing institutional arrangement for rolling out the sub-

projects, the expenditures could not be incurred as expected. As of the review date, only one

cycle of sub-projects had been initiated in 10 out of 15 districts. The sub-projects will be

implemented as per the recently adopted Project Operations Manual. The corresponding

expenditures for those sub-projects will be reflected in the last trimester. The implementation of

the project is therefore expected to improve, especially in the Sub-Grants category which is the

main component of the project.

Disbursements: As of June 30, 2014, disbursements comprise of initial advance to the Designated Account of

USD2 million and a replenishment of USD40,795.67, which is only about 11.3% of the allocated

funds under IDA Grant. There has been no disbursement against IDA Credit. With the recent

adoption of the Project Operations Manual, implementation is expected to improve, especially in

the Sub-Grants category which is the main component of the project.

Financial Management:

The review noted good progress in financial management with most agreed actions being

completed, and setting a good ground for continuing good information system. The mission is

pleased to note that an Accounts Officer as well as an Accounts Assistant has been assigned for

the project. The mission is also pleased to see that the Project Operations Manual has been

approved and disseminated to the concerned offices. The required books of accounts have also

been maintained except for ledgers as per the approved programs/activities which the project has

been advised to maintain. The mission, however, reminded one pending action agreed during

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appraisal which relates to carrying out the capacity assessments of project District Development

Committees (DDCs) from a financial management perspective. The mission noted that the

Request for Proposal (RFP) has been issued and the contract is expected to be awarded by July

2014 and capacity assessment completed by October 2014.

Following are some other observations of the review team:

Direct Payment from Designated Account: The mission noted that the expenditures included in

the financial reports submitted to the Bank for direct payments from the Designated Account

have not been included in the project’s accounting system, as the project’s FMIS is only

configured to record payment through FCGO. The mission advised the project to modify the

FMIS as necessary to include direct payments in the project’s accounting system.

Ledgers: The mission also noted that the required books of accounts have been maintained

except for ledgers as per the approved programs /activities. The mission advised the project to

maintain the required program ledgers.

Internal Control: The mission recommended measures to address internal control deficiencies

that were identified. The mission guided the project on coding the project’s assets and properly

updating the Stock Book. The mission also advised the project to maintain subsidiary ledger to

keep track of each asset.

Implementation Progress Reports:

The mission appreciated the project’s efforts on submitting the first and second trimester

financial reports for FY 2013/14 on time. There are no outstanding financial reports. The team

reminded that the third trimester progress report is due on August 31, 2014.

Audit Reports: The mission noted that there was no major issue raised in the external audit report of FY

2012/13. The auditors had raised concern on slow implementation and the delay in preparing the

Sub-grants guidelines and Operations Manual. With the recent adoption of the Project

Operations Manual, implementation is expected to improve. The team reminded that the

unaudited account for FY2013/14 is due on October 15, 2014 and the audited accounts on

January 15, 2015.

Agreed Actions:

The following actions agreed at the project appraisal were found yet to be completed:

S. No. Agreed Actions Previous Agreed Date Revised Agreed Date

1

Carry out capacity

assessments of project

DDCs from a financial

management perspective

June 30, 2014 October 30, 2014