Joint Management Committee Meeting, Jan. 22, 2013

Transcription

1 1 Joint Management Committee Meeting, Jan. 22, 2013 Agenda 1. PNPM Rural in Papua 2. PNPM Governance Recent Development and Challenges 3. Roadmap of PNPM Mandiri 4. PSF Sustainability 5. Financial Summary Discussion of Proposals a. Barefoot Engineers Wave 3 Top Up b. PNPM Peduli Top Up c. Implementation Support and TA for PNPM

2 PNPM RURAL - TANAH PAPUA JMC MEETING JANUARY 22,

3 3 PNPM Rural in Tanah Papua President, Vice-President, Minister, UP4B: PNPM Rural is government s main tool for community development and poverty reduction in Tanah Papua

4 4 PNPM Rural in Tanah Papua Why Papua is difficult for PMD: High costs, difficult to fill vacancies Lowers performance measures for the whole program Very politicized

5 INDONESIA - TANAH PAPUA 5

6 INDONESIA - TANAH PAPUA 6

7 7 Composite Indices and Kecamatan Ranking Public Service

8 8 PNPM Rural: high relevance for Papua Very low achievement of development indicators: education, health, access, drinking water, etc SBY, UP4B: PNPM Rural main government tool for community development and poverty reduction But high availability of resources: 422 sub-districts in 28 districts (five fold increase since 2007) Block Grant (BG) Allocation (APBN+APBD II) increased from Rp. 54 Billion in 2007 to Rp. 653 Billion in 2012, exclude BG from RESPEK BG allocation from RESPEK(APBD I) increased from Rp. 273 Billion in 2008 to Rp. 428 Billion in 2011 Papua - for JMC Jan 2013.pptx

9 9 PNPM Rural: facilitation challenges High rates of vacancies: 7 of 22 Provincial consultants, 9 of 84 Kabupaten facilitators, and 428 of 1,266 facilitators; PjOKs are also camats: double responsibility, double workload 50% of technical facilitators position are empty, whilst most sub-district still need to do design & costing (critical phase) Lack of good facilitation: and strong elite capture cause misalignment between subproject selection and people s most urgent needs implementation delays Persistently high vacancies

10 10 PNPM Rural: achievements PNPM Rural has substantial outreach in Tanah Papua Recognized as one of the few programs engaging the population and delivering results INVESTMENTS SUMARY in PAPUA (RESPEK ) No. Type of Investments Unit BLM (IDR) 1 Roads ,944,638,303 2 Water supply ,623,958,401 3 Education ,142,745,546 a. Scholarship 165 3,719,743,068 b. Education incentives ,862,430 c. Counseling and training ,207,800 d. Other education activities 7 542,753,600 e. Education facilities 156 5,881,962,858 f. School building 9 1,040,215,790 4 Health ,442,902,121 a. Health incentives ,257,390 b. Other health activities 4 49,710,632 c. Providing healthy foods 196 6,864,320,649 d. Health facilities 44 8,727,848,000 e. Health equipments 62 2,359,765,450 Total 80,154,244,371

11 11 PNPM Rural: fiduciary challenges Poor fiduciary practices have substantial governance risks: Large amounts sitting in UPK accounts, currently over Rp. 314 billion, often controlled by facilitators Village committees keep Rp hundreds of million in cash at home, weak or no bookkeeping Once 2012 block grants are disbursed, UPK accounts will hold > Rp. 1,174 trillion (over USD 100 Million While no hard evidence on corruption, major concern, amplified by lack of reliable data

12 12 PNPM Rural: more challenges Quality of infrastructure: nationwide 82% of sub-projects of good quality, in Papua only 70%; nationwide 4% failed sub-projects, in Papua 8% Utilization of infrastructure: 67% of sub-projects were not widely utilized or no longer functioned because lack of maintenance (AKATIGA 2011). Very serious lack of supervision: no visits by RMC, NMC or PMD in the last the last three month. Only 50% of Kabupaten were ever visited by Provincial Consultants. Governor s Decree for RESPEK location and allocation only issued at the end of fiscal year.

13 13 PNPM Rural: external challenges Absence of government staff who often do not stay in Kecamatan and villages Multiple programs at community level compete for attention by villagers and facilitators (e.g. Gerbangku in Kabupaten Merauke, P2K, dinas programs) Geography and logistics are difficult: access, communications, high cost High ethnic diversity and specific social structures At times difficult political and security situation

14 Reminder November 2011 Makassar Recommendations Pending: Set up a dedicated Desk Papua in PMD Increase PNPM program cycle from 1 to 2 years More attention to facilitators in Kampung/village level Collaboration with local faith-based organizations, CSOs, etc. More attractive salary structure for remote and very remote areas (national recommendation which is most relevant to Tanah Papua) Prioritize the representation of women and youth groups Strengthen special women s fora and reserve part of Block Grants for women (focus health and education) Already: Barefoot Engineers 3 (currently underway) Inclusion of basic socio-cultural material in the training modules (done) Provision of more flexible operational allowance (agreed) 14

15 15 November 2011 Makassar Recommendations Analytical and operational research activities to inform program adaption: Qualitative assessment (AKATIGA selected) Quantitative: SUSENAS add-on (data collection starts in March) Operational mapping (TORs being finalized)

16 16 Main recommendations Government considers PNPM Rural as a central to development in Tanah Papua Government to suspend 2013 block grant disbursements (can be rebudgeted in 2014): facilitators and UPKs can focus on completing activities from 2012 cycle, cash resources will be absorbed, governance risks reduced 2013 to focus on: Local adaptation of PNPM Rural for Tanah Papua: working with CSOs and churches, adjust project cycle: length, frequency of meetings, adjust block grant options through better facilitation: priority needs (health, education, less/no RLF); Papua annex to PTO Better facilitation: Fill vacant facilitator positions, complete Barefoot training, enact new salary and allowance package Set up separate PNPM Management for Papua and West Papua: Desk Papua, special supervision arrangements, GOI to agree on separate monitoring

17 17 PNPM GOVERNANCE RECENT DEVELOPMENTS AND CHALLENGES JMC Meeting 22 January 2013

18 18 Discussion Points 1. Governance Update December RMC Supervision of Remote Areas 3. Electoral Cycle Risk and Mitigation Strategies 4. Opportunities for Synergies between Urban and Rural CHS

19 19 Key Points: 1. Governance Update December % of total PNPM disbursements since 2008 are known to have been affected by corruption. The recovery rate of misused funds for this period is 45% The absence of an NMC through most of 2012 has impacted the diligence in the closing of open corruption cases. Now that a new NMC is on board, this situation is expected to improve Leading up to the negotiation of PNPM , the key measures to strengthen the overall management and governance framework that were identified through analytical work and supervision were implemented by PMD

20 20 1. Governance Update December 2012 Key Points (continued): Highest risk area = Revolving Loan Fund (RLF) A series of measures were implemented to strengthen the immediate oversight of RLF. However, significant efforts are still required to adequately mitigate RLF risk, including: increasing supervision and strengthening community level support Supervision resources need to be allocated based on areas of risk (e.g. RLF) rather than to those areas requiring high rates of procedural compliance (procurement) to more effectively mitigate overall program risk

21 21 1. Governance Update December 2012 Challenges: The lack of integrity of current MIS data and understanding the data that is in there still WIP Socialization, usage and reliability of CHS Time lags in case reporting and recording RLF understanding the challenges and options moving forward due to significant under-investment in supervision and monitoring to date PMD capacity Supervision and RMC performance

22 22 Initiatives: 1. Governance Update December 2012 A number of initiatives to further strengthen PNPM's governance are being launched. These include (i) an Enhanced Empowerment Experiment (ii) a stronger focus on risk-based supervision; and (iii) further strengthening of the governance of Revolving Loan Funds.

23 23 2. RMC Supervision of Remote Areas Remote areas are severely under supervised by RMCs: only 20%- 25% of 1,751 remote sub-districts had some supervision in In Papua, there has been no supervision of very remote areas in the last 6 months The lump-sum travel budget which provides for supervision of remote areas is only 30+% utilized on average per month (across all RMCs) Consultants not visiting remote areas because: RMCs limit their travel time to 10days/consultant per month (inadequate for supervision of remote areas) Concerns about inadequate documentation to enable claiming reimbursement of expenses incurred in remote areas RMC 4 (Macon) underperformance resulting in two warnings from PMD and now due for termination. But no decision on supervision plan for Region 4 from PMD once Macon is terminated.

24 24 3. Electoral Cycle Risk and Mitigation Strategies Risks Current PNPM staff/contracted firms are involved in political campaigns/running for election PNPM Funds are used in funding political campaigning PNPM infrastructure is used in the course of political campaigning Political parties claim responsibility for PNPM projects/success Claims made by political parties regarding PNPM outcomes/funding are connected to election outcomes PNPM becomes a key election issue

25 25 Mitigation Strategies Relevant and multiple forms of communication to all levels of PNPM actors, including publicizing sanctions Statement from POKJA condemning the practice; mandate to suspend locations with confirmed cases Socialization of policy down to village level Increased field supervision strategy Explicit confirmation that PSF has a role in fiduciary oversight for entire PNPM program, regardless of source of financing

26 26 3. Electoral Cycle Risk and Mitigation Strategies Program Level Village level Subdistrict/Distric t level Regional and National level Possible Communication/Socialization Mechanisms Print/radio/television media, mass sms messaging, written instructions to village heads, banners, instructions for referral in all PNPM meetings/training Written instructions from PMD, messages, training components Written instructions to NMC and RMC firms to ensure electoral cycle risk monitoring is included in supervision and monitoring, training of consultants, KPK advertising campaigns to give special mention to PNPM

27 27 3. Electoral Cycle Risk and Mitigation Strategies Post Occurrence Detection media monitoring, leveraging off data from other sources e.g. VMS Mechanism for reporting and action/escalation plan Challenges using current complaint s handling infrastructure timely and effective follow-up Increased supervision coupled with an investigation and handling strategy is required Special investigation/complaints handling coordination team to determine the most effective strategies and processes as well as spearhead efforts in managing risk

28 28 4. Opportunities for Synergies between Urban and Rural Complaints Handling Systems Urban CHS Coverage: 10,925 villages Good, reliable technology but not tailored for meaningful analysis A very well utilized system with the most active channels being sms gateway and web-based reporting Records of complaints as well as the response and action taken is well maintained Less than 5% of the total 50,000+ complaints (recorded since inception of the system) relate to fraud Rural CHS Coverage: 63,153 villages Poor (unreliable) technology but good handling, analysis and reporting systems Not well utilized but need to consider that rural culture encourages intercommunity handling of complaints Inconsistency in record keeping and delays in uploading data for Central level decision making More than 70% of the total 15,000+ complaints (since the start of KDP) relate to fraud

29 PSF A GOVERNMENT-LED, MULTI-STAKEHOLDER PLATFORM 29

30 30 Current set-up PSF created in 2007 Contributions of $266 million Governed by Joined Management Committee (JMC) Co-chaired by Bappenas and WB Non-implementing GOI agencies: Bappenas, Menko Kesra, MOF (TNP2K observer) Donors with contributions larger than USD 1 mil: AusAID, Danida, DFID, Netherlands, EU, USAID MCC to join in 2013 ADB and JICA observers WB as Trustee Accountable to JMC for use of funds and quality of service Four windows Co-financing of PNPM programs Secretariat function and implementation support Support to CSOs Analytical work

31 31 Value-added of PSF Implementation support Focus on operational support, fiduciary oversight, and governance issues for US$1.7 billion/year PNPM Programs Analytical work Rigorous impact evaluation Research and analysis to inform GOI policy making and reform related to decentralized service delivery, governance, and inclusion Innovative (pilot) operations building on PNPM platform Generasi, Green, Local Government, Peduli, Disaster Recovery, AKIL, Procurement reform,... Building on Analytical work Safe environment for testing and rigorous evaluation Capacity building Within Indonesia: Working through national think tanks and NGOs Internships for talented young people who move on to graduate studies/positions of responsibility Knowledge Management (CoP, Training, ) South-South exchange

32 32 Issues GOI ownership and leadership Path to National Trustee? PSF as GOI-led Multi-Donor Platform PSF often perceived as and self-identifies as WB Perception that PSF focus is on Rural and PSF-financed PNPM Program; (Less on Urban, RIS, RISE, ) Governance of PSF Implementing agencies not in JMC High level resource allocation strategy Effectiveness and Efficiency WB operational processes perceived as (increasingly) slow WB staffing policies apply Monitoring and Evaluation Clear performance indicators for PSF-supported programs, but less of PSF itself Partnerships with CSOs

33 33 GOI ownership and leadership Preparation of transfer of Trust Funds to National Trustee Timely disbursement of resources Governance Capacity building in national institutions (GOI and think tanks) Issues of procurement, limited supply, quality, Use analytical work program as vehicle to strengthen national institutions

34 34 PSF as GOI-led Multi-Donor Platform Bappenas sole chair of JMC Bank becomes JMC member Clear distinction between WB (Lending) and PSF (support to all PNPM stakeholders) GOI: Leadership, Financing, Implementation Partners (including Bank): Financing, TA WB: Trustee (until hand-over to National Trustee) PSF to support entire PNPM Portfolio Clarification of criteria to qualify as PNPM integration of PNPM programs (Roadmap) Including Urban, RIS, RISE Regardless of source of funding

35 35 Governance of PSF Inclusion of implementing agencies in JMC PMD, Cipta Karya High level resource allocation strategy Clarification of relations and interfaces between various directorates and PSF secretariat

36 36 Effectiveness and Efficiency of PSF Hiring of specialized firms to strengthen implementation support Links to Knowledge Sector to make PSF analytical work an instrument for larger objective of institutional capacity building Umbrella approach to processing of new grants

37 37 Others Monitoring and evaluation High level results framework and performance indicators GOI relations with CSOs Already strong practice in Bappenas PSF to play facilitating role with other stakeholders and at LG level Update of Operations Manual Criteria for defining which projects have PNPM label Processes and procedures regarding the review and clearance of analytical work JMC membership criteria.

38 38 Milestones By January 2013 Implement changes to PSF Governance Decision on PSF extension (allowing 2015 review and JMC decision to align PSF with vision of new Government) Presentation of PSF Work Program/Pipeline By June 2013 Clarification of roadmap towards National Trustee Establishment of PSF as self standing entity, including clarification of legal issues Re-branding of PSF Umbrella approach to operational processes By December 2013 Contracting specialized firms Amend Admin Agreements as needed Split between roles of Head of PSF and WB Social Development Sector Manager

39 39 Items for JMC voting Change in chairmanship of JMC Bappenas to become sole chair, WB to become member Change in membership Implementing agencies can become member Initial membership for PMD and Cipta Karya Non-contributing members as observers? Change in Operations Manual Creation of working group to make recommendations Extension of PSF Through December 2017 Review of PSF in early 2015

40 40 Financial Summary 2012 Total Pledges: US$ mil Total Commitments: US$ mil Total Disbursements: US$ mil Balance: - US$ 4.6 mil Disbursements against Pledges Total Pledges Total Disbursement US$ Mil

41 Barefoot Top Up Project Development Objective: To provide trained technical facilitators for the PNPM Rural/RESPEK Program in Papua. Financing: Original Budget: US$1,753,500 Requested Additional Allocation: US$2,400,000 Top up Rationale: The number of vacancies for FTs has increased and BE III will train 300 participants. Refresher training will be delivered that consists of two seven-day courses, to strengthen the core skills of the facilitators once they are on the job, as well as those of the graduates of phase 1 and 2. Following the training, the graduates will receive intensive coaching and mentoring for eight months to help them settle in their jobs and to have a support network when they face difficulties. Bank supervision and coordination support will be needed to ensure that Project activities fill the needs of the PNPM-Rural/RESPEK and support the broader development agenda for Papua. 41

42 42 Project Components Component 1 - Training (Recipient-Executed) Indicators: # of participants trained % of women participate in the training # of facilitators who participate in a two-week refresher training Component 2 - Monitoring and Evaluation (Recipient-Executed) Indicators: Final course report Tracer study of BE graduates Component 3 - Implementation support (Recipient-Executed) Indicators: Improved retention as a result of the capacity building by BaKTI Component 4 - Supervision (Bank-executed) Indicators: # of supervision missions to Papua # of progress reports to JMC # of coordination meetings with PNPM-Rural/RESPEK stakeholders and other Papua programs

43 PNPM Peduli Top Up 43 Project Development Objective: To strengthen the capacities of Indonesian CSOs to reach and empower marginalized groups to improve their socio-economic conditions. Financing: Original Budget: US$9,715,000 Requested Additional Allocation: US$1,500,000 Top up Rationale: To provide bridge funding for existing EOs up to December 2013, which will cover their operating costs (sub-grants to support local activities, staff and operational costs for EOs and CSOs, and EO monitoring of activities) to ensure no negative impacts on EO and local CSO activities during the transition to Phase II. This installment will also finance the design of Phase II and proposal (with revised results matrix) to be presented to the JMC in April/May 2013.

44 Project Components 44 Component 1 - Innovative Poverty Reduction Projects: To create partnerships between CSOs and marginalized groups for implementation of strategies to empower these groups Indicators: # of funded local projects working with marginalized groups # of provinces/district/villages in which Peduli projects are working Component 2 - CSO partners/sub-branches: To strengthen Indonesian CSO capacities to empower marginalized groups Indicators: % of CSO/Branch partners complying fully with PSF Fiduciary Standards # of CSOs/branches staff participating in capacity building activities # of CSO/Branch partners engaging with local government related to marginalized people % of CSO/Branch partners satisfied with EO services # of CSO/Sub branch partners that have secured at least one new source of funding since project inception % of CSO/sub branch partners with improved management and technical capacities Component 3 - Executing Organizations: To strengthen the capacities of Indonesian EOs to identify and provide grants and technical support to CSO partners that work with and empower marginalized groups Indicators: % EOs complying fully with PSF Fiduciary Standards Self-directed changes in EO structures, operations and capacities that strengthen program management and grant making

45 Implementation Support and TA for PNPM 45 Update from Technical Committee and follow-up discussion: To ensure better implementation support and technical assistance for the whole of the PNPM portfolio it is proposed to combine: Technical Assistance to Menko Kesra Technical Assistance to Bappenas PNPM-Rural Implementation Support PNPM-Urban Implementation Support PNPM Field Operations (Fiduciary and Field Teams) Into one project: Implementation Support and TA for PNPM Scope: support for the PNPM portfolio, all sources of funds combined Status: review of draft proposals to achieve synergies, avoid duplication, respond to PMD and PU requests; proposal will be presented to the next Technical Committee meeting