Document o f The World Bank

FOR OFFICIAL USE ONLY

Report No: 41795-BD

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 21.9 MILLION (US$3 5 MILLION EQUIVALENT)

TO THE

THE PEOPLE'S REPUBLIC OF BANGLADESH

FOR A

DISABILITY AND CHILDREN-AT-RISK PROJECT

June 3,2008

This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS (Exchange Rate Effective February 29,2008)

CurrencyUnit = Taka Taka = US$1

1.60079US$ = SDR 1

BSAF BIDS CAS CBR DAF DPOs DSS F M GDP GOB HI HIES I A ICB IDA ILO JPUF M&E MDG MOLG MOSW NFDDP NFOWD NGOs PCAR PKSF PPA PPR PRSP PWD SBD SDF SILS UCEP UN UNESCAP UNICEF

FISCAL YEAR July 1 - June 30

ABBREVIATIONS AND ACRONYMS

Bangladesh Shishu Adhikar Forum Bangladesh Institute o f Development Studies Country Assistance Strategy Community-Based Rehabilitation Director of Administration and Finance Disable People’s Organizations Department of Social Services Financial Management Gross Domestic Product Government o f Bangladesh Handicap International Household Income and Expenditure Survey Implementing Agency International Competitive Bidding International Development Association International Labor Organization Jatiyo Protibondhi Unnayan Foundation Monitoring and Evaluation Millennium Development Goals Ministry o f Local Government Ministry of Social Welfare National Foundation for the Development o f Disabled Persons National Federation o f Organizations Working for the Disabled Non-governmental organizations Protection o f Children-at-Risk Palli Karma Sahayak Foundation Public Procurement Act Public Procurement Rules Poverty Reduction Strategy Paper People with Disabilities Standard Bidding Documents Social Development Fund Specific Investment Loans Underprivileged Children’s Educational Program United Nations UN Economic and Social Commission for Asia and the Pacific UN International Children’s Education Fund

Country Director: Xian Zhu Sector Director: Michal Rutkowski Sector Manager: Mansoora Rashid

FOR OFFICIAL USE ONLY

BANGLADESH

BANGLADESH DISABILITY AND CHILDREN AT RISK

PROJECT APPRAISAL DOCUMENT

SOUTH ASIA REGION

HUMAN DEVELOPMENT UNIT

Date: June 3,2008 Country Director: Xian Zhu Sector Manager/Director: Mansoora Rashid

Project ID: P106332 Lending Instrument: Specific Investment Loan

Team Leader: Qaiser M. Khan Sectors: Other social services (100%) Themes: Other social protection and risk management (P);Social risk mitigation (S) Environmental screening category: N o t Required

[ ] Loan [XI Credit [ 3 Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others: Total Bank financing (US$m.): 35.00 Proposed terms: The credit would be an IDA credit repayable in 40 years, including a grace years.

period o f

For Loans/Credits/Others: Total Bank financing (US$m.): 35.00 Proposed terms: The credit would be an IDA credit repayable in 40 years, including a grace period o f 10 years.

Total 0.00

35.00 Total: 28.00 7.00 35.00

Borrower: Economic Relations Division, Ministry o f Finance Government o f Bangladesh Dhaka, Bangladesh Fax: 88028813088

Responsible Agency: Ministry o f Social Welfare Department o f Social Services Government o f Bangladesh Dhaka, Bangladesh Jatiyo Protibhondi Unnayan Foundation CRP -Mirpur, Plot N5, Block-A Section-14, Mirpur Dhaka-1206, Bangladesh

This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.

[ ]Yes [XINO

[ ]Yes [XINO [ ]Yes [ IN0 [ ]Yes [ IN0

Does the project depart from the CAS in content or other significant respects? Re$ PAD I. C. Does the project require any exceptions f rom Bank policies? Re$ PAD I K G. Have these been approved by Bank management? I s approval for any policy exception sought from the Board?

[ ]Yes [X ] N o

[XIYes [ ] N o

Does the project include any critical risks rated “substantial” or “high”? Re$ PAD III.E. Does the project meet the Regional criteria for readiness for implementation? Re$ PAD I K G.

Project development objective Re$ PAD ILC., Technical Annex 3 The objective o f the proposed Project i s to expand the coverage, use, and quality o f social care services for persons with disabilities and vulnerable children as a means o f promoting equity and social inclusion. Project description [one-sentence summaly of each component] Re$ PAD ILD., Technical Annex 4 COMPONENT A : Expanding Disability Services, Improving Awareness, and Building Capacity: This component would expand social and rehabilitation services for the disabled and build the capacity o f NGOs and government agencies that support the disabled and their families, and/or that work for greater disability awareness, inclusion, and empowerment. COMPONENT B: Establishing a network o f Child Protection Services: The component would adopt a two-pronged approach: (i) it would provide financing and technical assistance for scaling up the services NGOs for street children and other vulnerable children with a focus on improving relevance and quality o f the services; and (ii) gradually shift the social care paradigm o f M O S W both at the policy and programmatic level to adopt a proactive and preventive approach with a stronger focus on reintegration and deinstitutionalization. COMPONENT C: Institutional strengthening the knowledge and sk i l ls o f the managerial and technical officials in the Ministry o f Social Welfare to provide relevant and effective services for vulnerable groups, with a special focus on disability and child protection. Which safeguard policies are triggered, if any? Re$ PAD I K F . , TechnicalAnnex 10 Significant, non-standard conditions, if any, for: Re$ PAD III. F. Board presentation: July 1, 2008. Loadcredit effectiveness: November 30,2008. Covenants applicable to project implementation: Standard.

BANGLADESH Disability and Children-at-risk Project

CONTENTS

Page

STRATEGIC CONTEXT AND RATIONALE .................................................................................................. 1 Country and sector issues .................................................................................................... 1 Rationale for Bank involvement ......................................................................................... 3 Higher level objectives to which the project contributes .................................................... 3

PROJECT DESCRIPTION ................................................................................................................................. 4

I .

A . B . C .

I1 . A . B . C . D . E .

I11 . A . B . C . D . E . F .

IV . A . B . C . D . E . F .

Lending instrument ............................................................................................................. 4 Project development objective and key indicators .............................................................. 4 Project components ............................................................................................................. 5

Alternatives considered and reasons for rejection .............................................................. 9

Partnership arrangements .................................................................................................... 9 Institutional and implementation arrangements ................................................................ 10 Monitoring and evaluation o f outcomes/results ................................................................ 10

Critical risks and possible controversial aspects ............................................................... 12 Loadcredit conditions and covenants ............................................................................... 14

Economic and financial analyses ...................................................................................... 14 Fiduciary ........................................................................................................................... 15 Social ................................................................................................................................. 16 Environment. ..................................................................................................................... 16 Safeguard policies ............................................................................................................. 16 Policy Exceptions and Readiness ...................................................................................... 17

Lessons learned and reflected in the project design ............................................................ 8

IMPLEMENTATION .................................................................................................................................... 9

. . Sustainabhty ..................................................................................................................... 11

APPRAISAL SUMMARY ........................................................................................................................... 14

List o f Annexes

Annex 1 : Country and Sector Background ................................................................................... 18 Annex 2: Major Related Projects Financed by the Bank and/or Other Agencies ......................... 23

Annex 3: Results Framework and Monitoring .............................................................................. 24 Annex 4: Detailed Project Description ......................................................................................... 33 Annex 5: Project Costs ................................................................................................................. 42 Annex 6: Implementation Arrangements ...................................................................................... 44 Annex 7: Financial Management and Disbursement Arrangements ............................................ 48 Annex 8: Procurement Arrangements ........................................................................................... 59 Annex 9: Economic and Financial Analysis ................................................................................. 70 Annex 10: Safeguard Policy Issues ............................................................................................... 79

Annex 12: Documents in the Project File ..................................................................................... 81 Annex 13: Statement o f Loans and Credits .................................................................................. 82

Annex 15: Maps ............................................................................................................................ 86

Annex 1 1 : Project Preparation and Supervision ........................................................................... 80

Annex 14: Country at a Glance ..................................................................................................... 84

I. STRATEGIC CONTEXT AND RATIONALE

A. Country and sector issues

1. decades, but poverty and vulnerability s t i l l afflict large segments o f the population. During the 1990s the economy grew annually at almost five percent - twice the average rate o f other low income countries - and this impressive performance continued through 2006 at an accelerating pace. National poverty has declined at a rate o f roughly one percent per annum for the last 15 years. The most recent Household Income and Expenditure Survey (HIES) data o f 2005 suggest a poverty rate o f 40 percent (upper poverty line) o f the population, or about 56 million people, o f whom two-thirds live in extreme poverty. The Government o f Bangladesh (GOB) established programs, many with support from IDA, targeting among others the rural poor, elderly, women, children, etc., through provision o f safety nets, microfinance and other services. However, government recognizes that some groups remain particularly marginalized with few targeted interventions. The GOB i s committed to developing financially sustainable programs to reach these marginalized groups.

Bangladesh has made substantial progress in reducing income poverty over the last two

2. Prominent among these marginalized groups are: (i) people with disabilities (PWD); and (ii) particularly vulnerable children (street children, children working in hazardous occupations, orphans, children/adolescents in conflict with the law, etc.), especially in rapidly growing urban slums. Lack o f access to an adequate education, health services, and safety nets not only results in disabled people being excluded from social and economic participation, moreover often leads to their family members also having to forgo paid employment to stay at home to provide care. Global evidence suggests that these factors translate into forgone GDP o f about 5-7 percent.’ Gertler and Gruber (2002)2 estimate, using Indonesian data, those individuals/families with illnesses which severely limit physical function are able to smooth less than 30 percent o f the income loss from such illnesses. For vulnerable children, empirical evidence from the recently completed MDG Report on Bangladesh suggests that the cost o f reversing their lack o f human development opportunities in later years i s far greater than the cost o f investing in their human development during childhood3 (see Annex 1 for more details on the profiles o f disabled people and children in Bangladesh).

3. In order to attain the MDGs and reduce poverty, it would be imperative to expand and improve the quality o f targeted social care services and economic opportunities for people with disabilities and vulnerable children in Bangladesh.

Government Strategy

4. The GOB i s signatory to most o f the major International Declarations and Conventions on disability including: (a) the UNESCAP Decade o f Disabled Persons, (b) the Millennium Decade o f Disabled Persons, (c) the Biwako Millennium Framework, and (d), most recently, the UN Convention on the Rights o f Persons with Disabilities (CRPD). I t promulgated a National Policy for Disability in 2005 to advance the implementation o f these declarations, and has developed a National Action Plan which includes the following six elements: (i) to improve data collection to identify the magnitude o f the issue; (ii) support the development o f prioritized district level actions and reform the existing National Foundation for the Development o f Disabled People (NFDDP) so that it could

Metts, Robert. Disability Issues, Trends and Recommendations for the World Bank, February 2000 For details see Paul Gertler and J. Gruber (2002) “Insuring Consumption against Illness”, American Economic Review. For example, school dropouts in Guyana forgo hundreds o f thousand o f dollars in net earnings over their lifetimes, costing the state thousands o f dollars in foregone income.

1

1

oversee and fol low up the implementation o f core aspects o f the National Action Plan; (iii) in education, create awareness and sensitize teachers, management committees, parents and peers through Disabled People’s Organizations (DPOs) and non-government organizations (NGOs) to treat disabled children with dignity; (iv) in health to strengthen early detection and intervention, improve nutrition programs for pregnant women, train medical and social workers on disability issues, and increase provision o f assistive devices; (v) ski l ls development and training for disabled people, and monitor the compliance with the 10 percent quota system for the employment o f disabled people (and orphans) in the public sector, and (vi) increase access to transport, education and public facilities to enhance mobil ity.

5. Convention on the Rights o f the Child (UNCRC) and formulated a National Plan o f Action for Children (2005-2010) (see Annex 6 for more detail on policy and legal framework for children at risk). The Plan focuses on four strategic objectives: (i) creating opportunities to help children realize their full potential (access to health, nutrition and education, water and sanitation, etc.), (ii) serving the best interests o f children in national, social, family and personal situations (empowerment o f children), (iii) ensuring safety and security at home and in the public space (protection against abuse, exploitation and violence), and (iv) establishing and protecting children’s rights (social inclusion, decent work and livelihood).

Likewise, with regards to vulnerable children and youth, the GOB has also signed the UN

6. been lagging. This has been confirmed by an Institutional Assessment o f social care services for vulnerable groups by the Bank, which suggests poor implementation o f existing policies and ineffective enforcement o f existing legislation. In light o f this, the GOB has requested assistance from IDA to strengthen capacity and accelerate implementation o f i t s National Plans for disability and children.

Government recognizes that implementation o f these critical National Plans o f Action has

Institutional Capacity

7. The Ministry o f Social Welfare (MOSW) i s in charge o f policies but the institutional capacity o f the Ministry deters it from meeting international obligations and delivering the agenda as stipulated in the National Plans o f Action. The Ministry’s management capacity, controls and accountability, financial resources, human resources, and thus service delivery competence are limited. Two key departments attached to and within the MOSW are tasked with issues regarding disability and children’s services, respectively, the National Foundation for the Development o f Disabled Persons (NFDDP) and the Department o f Social Services (DSS) (see Annex 6 for more information on the institutional capacity o f the MOSW and DSS).

8. The NFDDP was established under the Societies Ac t as a mechanism to finance private sector and N G O groups to provide services and build awareness o f disability issues. I t has been largely under-funded and under-staffed, and has not had the autonomy required to reach i t s objectives. The DSS, tasked with delivering services for vulnerable children and other vulnerable groups, has about 1 1,000 staff in a wide network at the district and UP levels. However, most employees are class I11 and IV level staff with low qualifications, l i t t le motivation, and insufficient monitoring and links to the central office and the N G O community.

9. Plan o f Action for improving support for people with disabilities, government approved a major restructuring o f the NFDDP to make it more autonomous, improve i t s capacity and raise i t s profile to the status o f other similar organizations. The revitalized organization changed i t s name to the Jatiyo

As a condition o f project appraisal, and as part o f the broader vision o f government’s own

2

Protibondhi Unnayan Foundation (JPUF) whose goal i s to increase direct funding to support disability services, build awareness, and promote accessibility and social inclu~ion.~ Government also recognizes the need to strengthen the MOSW’s Department of Social Services (DSS) and engage NGOs/DPOs more broadly to improve coverage and outreach of disability and children’s services.

10. Bangladesh has a large NGO community that works to address the needs of vulnerable children and the disabled, but there remains an unacceptably large gap between the basic needs of vulnerable groups and the supply of support and services. For example, the Bangladesh Shishu Adhikar Forum (BSAF), a child rights network of NGOs, comprises more than 230 NGOs. Many NGOs focus on advocacy, but their funding and capacity are too limited to provide comprehensive services. In the case of people with disabilities, the NFDDP has been providing very limited government funding for NGOs working on disability. DPOs and many NGOs led by the National Federation o f Organizations Working for the Disabled (NFOWD) have exerted great effort to promote accessibility and inclusion, and provide services, yet access to employment, training, aids and services i s extremely limited, especially in rural areas. Thus, much investment i s needed to reach a level where public and private organizations can work together to provide basic and much needed services with a minimally acceptable level of coverage and quality’ - or to mainstream people with disabilities and children-at-risk into society and the workforce.

B. Rationale for Bank involvement

1 1. vulnerable children, people with disabilities and their families by fostering inclusion and strengthening the country’s social services and network, in strong partnership with NGOs. The proposed operation builds on an existing reform momentum across the country and i s envisaged by the Bank’s Corporate Strategy as well as South Asia Regional and Country Assistance Strategies. The Bank and the South Asia Region’s focus on Disability, and Children and Youth, as well as the recent World Development Report on The Next Generation have played an important catalyst role in building consensus and support for an increased focus on these particularly vulnerable groups among policy makers. Moreover, the Bank’s strong poverty and multi-sectoral experience, and poverty- targeted country portfolio, provide both a strategic and technical edge to address the needs of these poor groups in a sustainable manner. The Bank has supported the successful Palli Karma Sahayak Foundation (PKSF) and Social Development Fund (SDF) for many years, providing a model o f good governance and partnerships among the government, NGO/DPOs and civil society. Recognizing i ts expertise and experience, the government has requested IDA financing to support the proposed operation.

The proposed operation would support the government to improve the situation for

C. Higher level objectives to which the project contributes

12. The project directly supports three of the six elements o f the National Plan o f Action for disability, while other World Bank Group and donor projects support the remaining three pillars. The project also supports three of the four elements in the National Plan of Action for children, while the fourth i s supported by other World Bank and donor projects. Both the Plans are part of the

Towards a Barrier-free Society, Asian and Pacific Decade o f Disabled Person (2003-2012), Mid-term Review o f Activities o f 4 the BIWAKO Millennium Framework Actions in Bangladesh by NFOWD, Handicap International and Ministry o f Social Welfare, Government o f Bangladesh, 2007.

This includes the need to establish criteria for monitoring the quality of work in which NGOs engage, which i s addressed through the project in these two areas.

3

Poverty Reduction Strategy Paper (PRSP) and the project i s in line with the Country Assistance Strategy (CAS) objectives o f supporting the government’s poverty reduction strategy. The project specifically falls under the second pil lar o f the CAS, which looks to spread the benefits o f economic growth to all, especially those who are normally excluded.

13. The proposed operation i s part o f a broader government reform program that focuses on overall social protection reform and comprises other interventions, including a proposed National Social Protection Project and a social fund/community development program. The Wor ld Bank i s providing support to the government in al l areas o f reform through a combination o f other Specific Investment Loans (Social Investment Program 11, National Social Protection Project) and economic and sector work (poverty, MDGs, gender). In particular, the proposed operation strategically links well with the proposed National Social Protection Project, which focuses on providing direct support through cash transfers, while this operation focuses on providing services, awareness building, improving government’s knowledge base for policy development and institutional development.

11. PROJECT DESCRIPTION

A. Lending instrument

14. government’s reform efforts, which comprise institutional development, restructuring the JPUF (now completed), expanding coverage, promoting the quality and relevance o f services, and mobilizing national awareness to build support for implementation inclusive policies and practices at all levels. The project interventions are considered l ikely to be effective in addressing the current institutional, access and relevance issues.

A specific investment loan (SIL) i s proposed as the most suitable instrument to support

B. Project development objective and key indicators

15. coverage, use, and quality o f social care services6 for persons with disabilities and children at risk’ as a means o f promoting equity and social inclusion.8

Consistent with government’s Plans, the objective o f the proposed project i s to expand the

16. Performance o f the project will be measured by the percentage increase in: (i) the disabled population covered by JPUF using as baseline services provided by the NFDDP during the calendar year 2007; (ii) people with disabilities working either in the workforce or through self-employment;

In particular, Bank support for the project would mclude: (i) increasing the coverage andquality o f disability services, hilding awareness, and increasing capacity through strengthening o f the NFDDP/JPUF, improving the knowledge base and monitoring o f disability and building capacity for policy development in Bangladesh; (ii) strengthening integrated social work and care services for children a! risk below 18 years of age, particularly street children, primarily in urban and metropolitan area, and (iii) building the capacity o f the MOSW for devebping, implementing and monitoring policies and programs consistent with i ts mandate through promoting public-private partnerships. 7 Street children are defmed here as “Children below the age of 18 years whoare living, working, playing and sleeping on the street and are deprived ofbasic rights (ARISE report: A Review o f Existing Services relatingto street children, December 1999)’’ Minimum age of the street children included in the project i s 6 years. Street children can be divided into four sub-categories: (i) children up to 18 years of age who work and live on the street day and night without their family; (ii) children up to 18 years o f age who work and live on the street with their family; (iii) children up to 18 years of age who work and live on the street and retum to other family; and (iv) children up to 18 years o f age who work and live on the street md retum to their family.

Social care and rehabilitation services are defined as services for vulnerable groups, other than income transfers, that address a wide range of human development needs, including early child development, detection, prevention, physical and social rehabilitation, foster child care, assisted living, career development and equalizing opportunities for the disabled, services for vulnerable childreq etc. Promoting inclusion would be through awareness campaigns, policy formulation and implementation, networking, community mobilization and empowerment, I t would seek to eliminate physical, social, cultural and environmental barriers, which prevent the target groups from participating in society.

8

4

and (iii) school attendance among participating children using as baseline the PCAR project experience during calendar year 2007. Performance will be measured against the baseline to be determined the first year o f effectiveness.

C. Project components

17. approximate cost o f US$35 million over a period of five years.

The proposed project i s expected to include the following three components for an

18. COMPONENT 1: Expanding Disability Services, Improving Awareness, and Building Capacity (US$22 million). This component would expand social and rehabilitation services for people with disabilitiesg and build the capacity of N G O ~ D P O S ' ~ and government agencies, which support disabled people and their families, and/or that work for greater disability awareness, inclusion, and empowerment. The component would support the restructuring and scaling up of the JPUF to channel grants to DPOs and disability NGOs. The component would be implemented by the JPUF and would comprise two sub-components:

+ Sub-component l(a): Restructuring and capacity building o f the JPUF: This sub- component would reform and strengthen the JPUF to become a center of excellence for contracting disability services, promotiordawareness building, research, monitoring and evaluation, and establishing good practices. The vision i s for the JPUF to reform into a strong and independent apex body which would operate with substantial autonomy under the management o f a nationally recognized leader. Using transparent criteria and accountability mechanisms, the JPUF would select and finance sub-projects in accordance with an agreed overall strategy and annual plans. This restructuring would seek to emulate as closely as possible the management structure and operational processes adopted by the SDF and the PKSF. Activities would commence by restructuring and revitalizing the Foundation, recruiting new management o f recognized integrity, bringing in additional staff with recognized technical and operational competence in the domain o f disability, setting priorities for funding, and building competencies in disability research, M&E' and awareness building. The Foundation would adopt a non-government salary scale similar to the SDFPKSF to help attract and retain new talent. The beneficiaries of this sub-component would be the (i) NGODPOs and disability activists that would benefit from funding and expertise from the JPUF, (ii) policy makers who would obtain necessary information for policy formulation and monitoring progress; and (iii) civil society organizations and individuals who would benefit from knowledge and understanding o f disability issues, as well as feedback received on the quality of their work. The project would support development of a long-term approach to sustain services for the disabled. The ultimate beneficiaries of this sub-component will be people with disabilities and their families.

+ Sub-component l(b): Provision of disability services through NGO/DPOs. This sub- component would provide financing for services offered by NGODPOs with a disability focus such as community-based rehabilitation (CBR), early detection and intervention, prevention, counseling, communication and awareness, empowerment, education, sk i l l s development,

Disability includes autism. Unless otherwise noted, the term Non-governmental Organization (NGO) i s here defmed to include community

based organizations, disabled persons organizations, and international and national NGOs. 'I M&E will include monitoring o f sub-grant activities as well as working with the MOSW on monitoring overall system status and outcomes through conducting household surveys, developing MIS, etc. The role and capacity of the government to do this wi l l be addressed in Component 3.

9

10

5

provision o f assistive devices, and mainstreaming. The funding o f NGODPOs would be through sub-grants, awarded based on clear and transparent criteria outlined in the JPUF’s Operations Manual which may be reviewed and updated from time to time. Windows for financing will remain flexible and be determined by the Board o f the JPUF, but could include the following:

Area-basedperformance contracting: Larger annual funding for NGOPartner Organizations to cover an agreed geographical area with agreed services o f specific quality such as early detection and treatment o f children with disabilities and developmental delays, CBR or skills training. Award o f initial contracts under this window would be subject to rigorous screening o f NGO/DPOs against set eligibility criteria which emphasize good performance. Renewal o f contracts would be subject to the NGOs meeting pre-identified targets and standards as validated by third party reviews.

Training and support to partner organizations: Some NGO/DPOs, academic institutions, foundations or independent contractors may have specific expertise and skills in disability which are required but not widely available (for example, production or distribution o f assistive devices or early detection o f impairments in children). In such cases, the JPUF may opt to contract the expertise to train, support and monitor other Partner Organizations. Likewise, smaller DPOs are frequently in need o f strengthening their capacity to manage and monitor the services they provide and raise funds from donors and government agencies. There will be a window for training and capacity building o f such DPOs.

Innovation grants: Smaller one-off grants to introduce or pilot new interventions, assistive technologies, specialized equipment, develop curricula or learning materials for disabled people, communication and awareness campaigns, etc. Award o f contracts under this window would be based on the innovativeness and likelihood o f sustainability o f the proposal. Special consideration would be given to Self-help Groups and DPOs.

Promotion of disability issues: Even though the existing policy framework i s supportive o f disability issues, there i s a general lack o f understanding o f these issues in government and society. The JPUF could contract professional agencies to promote the abilities and rights o f people with disabilities, shifting public opinion away from a charity model o f engagement.

The priorities for funding, given that covering the wide range o f activities cited above i s not 19. possible within project resources, would be defined in annual working plans formulated by the Board o f the JPUF based on broad consultation, relevant policy documents and international agreements. The target group for this sub-component would be people with disabilities and their families across Bangladesh.

20. COMPONENT 2: Strengthening and Expanding the Network o f Services for Children-at- Risk (US$9.5 million). The objective o f this component i s to improve access to, and the quality and relevance o f services for children-at-risk in selected cities o f Bangladesh. To achieve this objective, the component would align the legal and policy framework with the UNCRC, strengthen the capacity o f the DSS to design and oversee programs for child protection, and implement pilot interventions to inform the child protection policy framework. Specifically, the project would: (i) consistent with CRC guidelines, improve the capacity o f relevant service providers to ensure quality, efficiency and effectiveness o f services for children-at-risk; (ii) develop and pilot alternative approaches to institutional care for orphans, and (iii) improve and expand services for street children with a focus on strengthening a referral system, case management and their reintegration into their families/communities. The component would be managed by a project implementation unit under the Department o f Social Services (DSS) that i s also implementing the UNICEF-financed “Protection

6

o f Children-at-Risk (PCAR)” Project. The PCAR Unit would subcontract NGOs to deliver services to children in accordance with standards o f care developed for these services.

Sub-component 2(a): Support for institutional and capacity building o f DSS staff and service providers. In order to ensure adequate quality, effectiveness and efficiency o f service delivery, this sub-component would provide training and capacity building tailored to enhance the quality o f services for children-at-risk. It would: (i) develop and adopt minimum standards o f care o f relevant services for street children to be adhered to by a l l partner implementing agencies; (ii) provide training in compliance with these standards and monitoring; (iii) develop a “case management” tool for effective individual care and rehabilitation planning; (iv) provide training in case management and referral coordination; (v) enhance skil ls in specialized areas (mentoring, volunteerism, social work, care, counseling, etc.) for developing and managing the rehabilitation and integration cycle; and (vi) provide training in program management, monitoring, reporting, and networking and coordination with other service providers,.

Sub-component 2(b): Improving and expanding services for street children. This sub- component would support the expansion o f PCAR from six to eleven locations.’2 The PCAR project i s based on a four-step model to rehabilitate and integrate street children into mainstream society and includes: (i) outreach activities/open air schools, (ii) daytime drop-in centers, (iii) night shelters/homes, and (iv) economic and social activities that promote reintegration with families and communities. Services contracted under the project would be screened to ensure compliance with service standards as well as the UN Convention on the Rights o f Children. Building on PCAR’s existing model, the project would: (i) expand the services in geographical terms through contracting o f NGOs, broadening the scope o f services for street children to strengthen the case management13 and referral systems, (ii) establish a monitoring and evaluation system as an integral part o f service delivery, both at the management and service provider levels; and (iii) set up a Management Information System (MIS) for the project unit to track project progress (see Annex 4 for details).

+ Sub-component 2(c): Support the DSS to develop and pilot alternative approaches to institutional care for orphans in line with the UNCRC. This sub-component would help the DSS design alternative models (e.g., foster care) for taking care o f children without parents, some o f whom are now in orphanages, and others who do not have a home at all. Based on the model developed, guidelines would be prepared for operationalizing and piloting initiatives to test and improve the model over time. NGOs would be contracted as service providers to pi lot the new interventions and service delivery models. Award o f contracts under this sub-component would be based on the “child-centeredness” and sustainability o f the proposals.

Sub-component 2(d): Project management. This sub-component would support day-to-day management and operational costs o f the project for effective project implementation, ensuring adherence to Bank fiduciary requirements, particularly with respect to procurement and financial management.

Six divisional cities-Dhaka, Chittagong, Rajshahi, Khulna, Barisal, Sylhet, adding district towns Narayangong, Mymemsingh, Comilla, Rangpur, Jessore. l3 The case management system being proposed here i s to make sure that every child who enters the system i s properly monitored and support i s provided consistent with their needs. Given the early stages o f these services - at a pilot stage - the basic approach wil l need to refined and developed during the course o f the project based on experience gathered and consistent with UNCRC guidelines.

7

21. (i) for beneficiaries, an increase in school attendance among participating children; and (ii) institutionally, shifting MOSW-DSS’s current management o f services to contracting service providers, resulting in gradually adopting a preventive and community-based approach for service development and delivery.

Activities under the Children-at-Risk component are expected to have the following impact:

22. Department of Social Services (US$3 million). The objective o f this component i s to support the MOSW and the DSS to gradually shift from being the managers o f institutions and services to a p r ~ a c t i v e ’ ~ and preventive social service approach. To this end, the MOSW, in collaboration with DSS, has laid out the strategic directions for the next five years in a Policy Letter. The project would support four selected key strategic areas: (a) strengthen MOSW’s capacity for policy formulation and revision o f the associated legal framework for persons with disabilities, chi ld protection and other socially disadvantaged populations to bring local laws and regulations in conformity with the UN conventions on Disability and Child Rights; (b) support the institutional development o f the DSS by streamlining the organizational structure and procedures for enhancing outreach and impact o f i t s many programs; (c) provide training and capacity building to enhance the ability o f the DSS personnel and other service providers for proactive social services to i t s target beneficiaries, including through contracting NGOs; and (d) strengthen program planning, implementation, monitoring and evaluation capacity o f both the M O S W and DSS including the development o f a long-term approach to sustain these service^.'^ For the MOSW, this would include monitoring the status o f target groups and the impact o f services so as to improve policy formulation and implementation. For the DSS, this involves improved M&E o f i t s services and programs, as well as specific assessment o f service provision/providers through establishing an MIS. Technical assistance, training, provision o f required hardware and software, and other capacity building measures wil l be financed.

COMPONENT 3: Institutional strengthening of the Ministry of Social Welfare and

D. Lessons learned and reflected in the project design

23. achieved by similar institutions in Bangladesh. The NFDDP, now JPUF, has not been accorded the financing, autonomy or necessary human resources required to live up to i t s promise and the expectation o f people with disabilities. Until the recent restructuring, the Secretary M O S W was officially the chairperson as an addition to hidher many other responsibilities. The key managerial positions in NFDDP were filled by government officials on deputation whose career aspirations may or not involve working on disability - this i s no longer possible since the restructuring. In the worst cases, some officials were assigned to NFDDP based o n their lack o f success elsewhere as a measure to prevent harm to other important government institutions. As a result, even competent officials posted at the Foundation have considered this a punishment and were unmotivated. B y contrast both PKSF and SDF had independent boards headed by well-known public figures with competent, fully dedicated staff-members. At the same time PKSF and SDF were properly funded, and operated in highly transparent environments with regular independent external audits.

The experience o f the NFDDP since i t s creation in 1999 contrasts sharply with the success

l4 The concept o f the ‘proactive’ approach i s to address situations that lead to vulnerabilities before they emerge rather than the government providing an institutional service response after they occur (e.g., identifying a family -,child-at-risk due to extreme poverty, violence, etc., before the children are forced to leave the home to work and live on the streets).

I s The capacity building component wil l take long-term approach to improving general social services as well as childcare services beyond the implementation support-related training described in Component 2.

8

24. independent organization along the lines o f PKSF and SDF; (b) establish transparency and accountability in i t s operations; and (c) develop professional and transparent financial management and procurement systems. The government agreed that these were necessary for proper functioning o f NFDDP: it was restructured in December 2007 and renamed the JPUF. A prominent citizen was selected Chairman; the Managing Director and other key staff have been recruited in the open market based on the merit o f their qualifications.

A key prior condition o f IDA support was that the NFDDP: (a) be restructured to be an

25. other programs delivering social services were assessed. Institutionally, the following lessons were considered during project development: (i) keep institutional arrangements and reporting mechanisms simple, yet instill accountability measures at each level; (ii) prepare implementation plans with consideration o f the time requirements for government’s internal processes and procedures; (iii) select only the most relevant, realistic, measurable and cost-effective indicators to monitor and evaluate project performance; and (iv) ensure implementation readiness at project effectiveness by training project entities on Bank fiduciary guidelines prior to appraisal. Technically, the following lessons were considered: (i) minimize the number o f formal implementing partners while providing space for community participation and regular stakeholder consultations; (ii) simplify service delivery mechanisms with least number o f bureaucratic steps; (iii) integrate monitoring and evaluation mechanisms as part o f project design; (iv) focus financing on sup-projects which will lead to achieving desired development outcomes and minimize specific investments in goods and works.

Wi th regard to children-at-risk, the lessons o f the ongoing UN-supported PCAR project and

E. Alternatives considered and reasons for rejection

26. be to support existing government institutions for the disabled and children-at-risk. This was considered and rejected for the fol lowing reasons:

An alternative to shifting the paradigm o f service delivery to N G O D P O contracting would

The existing services generally fol low a globally discredited institution-based approach which served to isolate the disabled and children-at-risk and not to mainstream them into society.

They are staffed by unqualified people with l i t t le understanding o f the needs o f the disabled and children-at-risk, using antiquated forms o f treatment including liberal use o f corporal punishment.

111. IMPLEMENTATION

A. Partnership arrangements

27. National Forum for Organizations Working with the Disabled (NFOWD), the officially recognized umbrella, which establishes guidelines and standards for DPO registration with government. The preparation team also met with DPOs, which are not members o f the NFOWD, and ensured their participation in stakeholder consultations and inclusion on the Governing Body o f the new JPUF.

The disability component has been prepared in close partnership with DPOs, particularly the

28. NGOs working with the target group. IDA funds will provide parallel financing for a program,

The children-at-risk component has been prepared in close collaboration with UNICEF and

9

which was initiated by UNDP and i s now financed and implemented by UNICEF. This project will scale-up efforts o f the existing project, so additional staffing needs at the margin will be financed by IDA.

B. Institutional and implementation arrangements

29. be three primary departments for (i) program development and sub-projects; (ii) finance and administration; and (iii) monitoring, research and evaluation. The finance and administration department will have dedicated procurement and financial management staff who are familiar with Bank procedures.

The disability component will be implemented by the newly restructured JPUF. There will

30. (MOSW) through the PCAR unit, which i s currently implementing the UNICEF-sponsored “Protection o f Children at Risk” Project. The Director General, DSS, will serve as the Project Director (PD) to the project and will be supported by the project implementation team o f the PCAR unit. The PCAR unit will comprise a Project Coordinator (PC), financial management and procurement specialists and assistants, accountant, monitoring and evaluation officer, divisional coordinators, technical specialists, administrative and support staff. See Annex 6 for details o f the PCAR project unit’s main functions.

The children-at-risk and institutional development components will be managed by DSS

C. Monitoring and evaluation o f outcomeshesults

3 1. The JPUF will have a dedicated monitoring an evaluation department which will be responsible for monitoring the outcomes o f the disability component. I t will employ a three-pronged approach to monitoring, research and evaluation: (i) monitor project activities and sub-project compliance, service standards and achievements against their contracts, including engaging third party evaluations o f the quality o f services; (ii) contract out research and surveys to establish baselines and monitor the status o f persons with disabilities, policy implementation, and provide feedback-information o f the system; and (iii) M&E to measure overall impact o f the broader program and attainment o f desired outcomes.

32. The children-at-risk component will be monitored primarily through the PCAR project unit, while developing the system o f the DSS. Three levels o f monitoring will take place: (i) component inputs and outputs will be monitored to produce required project reports; (ii) component intermediate outcomes such as the increase in the number o f users, development o f standards for services which cover vulnerable children, coverage o f services, etc., will be monitored through the information provided in beneficiary surveys, project progress reports, and independent and random rapid assessments o f the performance o f service providers; and (iii) component outcomes which are directly linked to the achievement o f project development objectives will be evaluated after the project has been implemented in its entirety. To prepare for the evaluation, the project will support establishment o f an MIS and develop a more robust baseline.

33. implementing agencies will be trained in M&E methods and policy and program development. The project will finance technical assistance while capacity o f DSS staf f i s developed.

For the institutional development component, personnel at the MOSW-DSS and in the

10

D. Sustainability

34. the services; (b) the service providing institutions; and (c) the nation.

Prospects for sustainability can be assessed at three levels: (a) the individuals benefiting from

Sustainability at the beneficiary level

35. disabilities and children-at-risk into social and economic l i fe. Experience o f NGODPOs in Bangladesh shows that successful programs can help with early detection, providing adequate rehabilitation, bringing children with disabilities to school, providing training opportunities, and helping people with disabilities find gainful employment. For children-at-risk, there are also examples o f successful intervention in Bangladesh (UCEP, etc.), which have been able to provide secure environments for vulnerable children, education, jobs, and reintegrate them with their families or communities. The emphasis on case management o f children would also ensure sustainability o f these interventions. Successful interventions will assure mainstreaming with the exceptions o f the most difficult cases.

Sustainability at the individual beneficiary level i s assured by mainstreaming people with

Sustainability at the institutional level

36. Sustainability o f the JPUF i s potentially a more difficult proposition. IDA support will finance activities o f JPUF for a period to facilitate the JPUF building up i t s current small endowment. Government contributions have been provided regularly in the past, and it i s expected that the higher and more independent and active profile for JPUF will allow it to raise endowment funds from the Bangladesh private sector, as well donors whose rules, unlike IDA’S permit financing o f endowments. The length o f time it will take to make the JPUF sustainable will depend in large part on the success o f i t s programs: effective and efficient service delivery through NGO/DPOs could attract higher levels o f funding. This will be assessed at the Mid-term Review for consideration as to how long IDA might consider financing the JPUF.

37. build their capacity will strengthen the prospects o f sustaining the impact o f project interventions at the local levels.

The window through which smaller disability NGOs and DPOs would receive training to

38. Sustainability o f the PCAR program will, in the long run, likely require increased government support. The importance o f tackling the problems faced by the urban poor - particularly children and youth has been highlighted by several recent reports and has already started to impact government policy and expenditures. In the recent period o f sustained economic growth, government has increased i t s ability and interest in supporting marginalized groups so that they can contribute to and benefit from that growth. Social protection is, therefore, one o f the fastest growing areas o f the budget and the government has repeatedly expressed i t s commitment to this area, particularly in channeling resources to the most effective programs. Like the disability component, increased financing would be the result o f success: if government i s able to manage more efficient and effective services through contracting NGOs, coverage would increase as would government’s willingness to finance the program. However, the f i rs t step to sustainability requires establishing the financing needs and then ensuring availability o f funds, given the overall fiscal envelope.

39. efficiency and focus o f how staff o f the MOSW and DSS work on social services delivery. There are

Sustainability o f the institutional development component will be achieved by increasing the

11

n o long-term recurrent cost implications as capacity building i s directed towards the employees o f M O S W and DSS - indeed productivity gains f rom training may reduce the need fo r additional staff.

Mitigation Strategy

M O S W will be redefining i t s role in supporting the provision o f services to that o f planning, improving data collection for policy making and monitoring. A jo in t M I S system wil l be established for the MOSW, DSS and JPUF.

Sustainability at the national level

Risk after Mitigation Moderate

40. The economic analysis given in section IV-A demonstrates the overall benefits at the national level. The project also contributes t o significant savings in long-term recurrent costs f rom switching to more cost-effective, community-based, NGO-provided approaches f rom costly institution-based approaches.

The project has a specific component on building capacity o f government at al l levels. A capacity assessment o f each NGO/DPO contract will be done based on the expected scope o f work. Best practices for accountability and transparency o f programs are being applied. Third party monitoring/audits

Project Design’s contribution to Sustainability

Moderate

Moderate

41. By supporting an approach to turn those who are normal ly excluded into productive citizens, the project design contributes to sustainability at a l l the individual, institutional and national levels. Even for those with severe disabilities who may not be fully mainstreamed, the project contributes to supporting and developing approaches which can reduce the unit costs o f care wi thout reducing the quality o f care, e.g., mov ing f r o m institution-based care to community-based care. F r o m a service delivery perspective, this builds o n the government’s already existing experience in making systems more efficient by contracting NGOs.

- - would be financed through theproject. A separate unit would be established

E. Critical risks and possible controversial aspects

Moderate

42. The risk analysis i s summarized in the table below:

under JPUF for procurement and contracting o f NGOs. Specialized staff will be recruited f rom the private and NGOs sectors. DSS will receive TA on procurement fi-om the project. Establish clear criteria and fol low up through MIS, operational audits, etc.

Risk

Moderate

Project design might overburden MOSW.

Limited capacity o f local governments and NGOs working on disability and children-at-risk. M O S W weak administrative and fiduciary capacity.

Procurement capacity limited.

Beneficiary selection not

Risk Before Mitigation substantial

substantial

substantial

substantial

substantial

12

transparent. Coordination among ministries weak.

Reform o f JPUF may not result in a sufficiently independently managed organization. Irregularities in award o f sub-grants and implementation.

Small and scattered sub-grants result in activities not having desired or sufficient impact. Target groups may not use services or may not change behavior. Training o f M O S W staff may not result in long term capacity building. M O S W may be slow in contracting services.

Varied capacity o f NGODPOs could hinder implementation.

substantial

substantial

Substantial

substantial

Moderate

High

substantial

Moderate

JPUF Board i s comprised o f independent figures o f high reputation plus secretary level officials. Reform o f JPUF resulting in management o f recognized high integrity was a pre- condition for disbursing Bank funds through the JPUF.

Transparent processes and eligibil i ty criteria for a l l sub-grants, defined in Operational Manuals, are a pre-condition for this operation. Experience with PKSF and SDF provides a solid foundation for establishing a similar structure for this project with transparent recruitment criteria, accountability and intense reporting requirements. Implementing agencies are developing Operational Manuals, which document selection criteria, fiduciary procedures, monitoring mechanisms. Approval ofthese by IDA will be a key element o f appraisal. Funding will be based on agreed strategies and annual plans working toward achieving clear outcomes; major portion o f funding wil l go toward larger area-based performance contracts. Ongoing monitoring o f activities should enable feedback on the relevance and quality o f the activities, and allow corrections in annual plans. An institutional assessment o f the ministry i s ongoing and will be used to inform the design o f appropriate capacity building. The MOSW, through the P C A R project, i s already contracting services f rom NGOs and has developed a comprehensive set o f bidding documents. I t has prepared the outsourcing o f baby homes, for which it requested technical support from the Bank. The Credit Agreement wi l l make the necessary txovisions for contracting o f services. In order to involve smaller, less efficient NGODPOs, training and support would be incorporated to build their capacity.

substantial

Moderate

L o w

Moderate

L o w

substantial

Moderate

Low

13

F. Loadcredit conditions and covenants

43. One covenant i s proposed: the implementation o f the JPUF and PCAR components will be according to agreed Operational Manuals which can be revised with prior agreement from IDA. The two draft manuals, assessed by IDA during appraisal, contain detailed descriptions o f the processes for defining, managing, selecting and monitoring sub-projects to be financed by the project. These include, among other, the governance framework for ensuring compliance with fiduciary guidelines, sub-project selection criteria, processes for developing annual work plans and related budgets, and guidelines for monitoring (both sub-project implementation as well as overall program outcomes).

IV. APPRAISAL SUMMARY

A. Economic and financial analyses

44. US$1.2 billion, or 1.74 percent o f GDP, i s lost per annum. This loss i s the cumulative o f four cost categories. First, because some people with disabilities are not employed, it costs Bangladesh US$891 million per annum. Second, some disabled children forego schooling because o f their disabilities and that costs the economy about US$26 million per annum because o f the lower stream o f lifetime earnings due to the lower educational attainment. Third, some people with disabilities need help from others to function. The cost o f adult helpers i s then US$234 million per annum from foregone income among adult helpers (usually women). Finally, children who are helpers o f disabled people forego schooling, costing Bangladesh US$28 million per year because o f the lower stream o f lifetime earnings due to the lower educational attainment. Therefore, the cost o f disability in Bangladesh i s US$148 per annum per disabled person. If these disabled people live in households with five family members, that loss in household income corresponds to almost a third o f the poverty line. The annual loss in lifetime earnings due to street children forgoing schooling i s estimated to be US$9 million in Bangladesh. This would be the result o f street children attending school instead o f working (and therefore foregoing earnings) and earning the skilled wage rate after age 18. The benefits o f getting street children into school are diminished somewhat because o f the reduced earnings that could have been earned as child laborers.

Analysis found that the cost o f disability in Bangladesh i s considerable, with an estimate that

Technical

45. There are three important aspects that make the project technically sound and sustainable:

a. Economic and social impact of the inclusion of people with disabilities. Empirical evidence demonstrates internationally that people with disabilities tend to be poorer, and the poor are more likely to be disabled. Stigma and lack o f access to services further exacerbate the problem, resulting in extreme social and economic exclusion. The JPUF renewal i s expected to lead to a significant increase in efficiency and effectiveness in the use o f resources (demand based sub-grants), reaching people with disabilities through better quality and coverage o f services and addressing issues o f stigma by sensitizing the broader population through awareness campaigns. The proposed operation will open up opportunities for community-based rehabilitation, education, access to health systems and aids, training and employment to a larger share o f people with disabilities. As a result o f increased social and

14

economic participation and support to families o f the severely disabled, levels o f poverty among the target population would decrease.

b. Participation of NGOsLDPOs and communities. The project has been designed with an objective to promote community-based development through the participation o f people with disabilities, childredyouth and their communities. I t rel ies primarily on contracting NGOs, DPOs and other c iv i l society organizations by funding “demand-based” sub-project proposals. Therefore, sub-project development, conceptualization, design, and implementation are driven by local and beneficiary needs. NGOs, DPOs and community leaders wil l serve as members o f special boards and committees (JPUF, N G O selection committees, advisory committees, etc.) offering their expertise and promoting accountability within these committees and boards.

c. Provision of integrated social services. The introduction o f a “case management” model in PCAR will help consolidate a variety o f rehabilitation and services for mainstreaming vulnerable children into one integrated package. This will assist in responding to the multi- dimensional needs o f children-at-risk with the help o f a well functioning network o f referral services which would be strengthened under this project. The provision o f integrated services through case management would enabled tracking the progress o f beneficiaries and has proven to be a cost-efficient and cost-effective approach to service delivery.

B. Fiduciary

46. forward in improving the public procurement environment. Though key policy reform actions have already been completed, including mandating new procurement act / rules, with associated procedures and al l documentations, implementation o f the national procurement act i s s t i l l a key challenge. However, this i s only the beginning, and there are s t i l l a number o f potential challenges in cross-cutting governance, institutional, and implementation issues, including inadequate enforcement o f regulations, inadequate adherence to the provision o f procurement approval process, delays in contract award, ineffective contract administration, allegations o f fraud and corruption, and political interference. Considering al l these factors, the procurement under the proposed project, although it contains only a small volume o f procurement, will have challenges requiring special measures to address associated risks (see Annex 8 for more details). A number o f measures are underway in the country, and as part o f the ongoing procurement reform, a second follow-on reform project under implementation i s expected to make the reform efforts sustainable.

Procurement. Bangladesh has undertaken procurement reforms, which i s a major step

47. Procurement Risks and Measures. Procurement activities under the project will be implemented by two Implementing Agencies (IAs); namely, the JPUF and DSS. The procurement risk, considering the country environment and the lack o f experience o f the agencies in implementing Bank-financed projects resulted in an init ial risk rating o f “substantial”. However, this i s expected to be reduced to “moderate” once the proposed mitigation measures as described below are put in place. In terms o f volume o f procurement, the draft procurement plan for all three components indicates a small amount o f goods and a few consultancy assignments (only about US$12.73 mi l l ion out o f the total project o f US$35 million). With a view to mitigating procurement risks, the project will rely on professional procurement specialists/consultants to be specially recruited in each o f the IAs. The procurement consultants are expected to be onboard well in advance o f the start o f any procurement activities. I t will be mandatory for these procurement consultants to be members o f the Bid Evaluation Committees. In addition, each agency will designate one focal person for procurement, and there will be specific provision for upfront training in PPAI PPR and Bank’s Guidelines. A procurement risk mitigation framework has been agreed with the IAs, which include mandatory

15

disclosure o f information, mechanisms for addressing complaints, and regular post reviews. The IAs wil l also ensure that the Operational Manuals include salient provisions o f the procurement arrangement and risk mitigation measures o f the project. All procurement activities will be subject to a six-monthly review by the IAs as well as by IDA. It i s expected that with implementation o f the risk mitigation framework proposed in the PAD, together with the above arrangements, the residual procurement risk will be ‘moderate’. Detailed arrangements specific to this project are described in Annex 8 (Procurement Arrangements).

Financial Management

48. capacity o f the country and the implementing agencies to assess the r isks and mitigation measures pertaining to the project. For the disability component, the JPUF has already recruited a financial management specialist. For the other two components, the PCAR unit will handle the project financial management.

A financial management assessment was carried out to identify the FM environment and

C. Social

49. The issues are somewhat different for disability and children-at-risk components, but the underlying theme for both i s to assure inclusion o f groups who are often excluded from society’s mainstream. With regard to the disability component, the primary goal i s to move away from a medical, charity model, which focuses on ‘fixing’ a perceived problem o f a person, to removing social, physical and economic barriers to their participation in al l aspects o f l i fe. It will be important to maintain a balance between allowing voice to various strong and vocal NGODPOs comprised o f people with disabilities, while assuring that the less organized are not left out. This balance will be achieved by working with larger NGOs to help develop capacity o f smaller, less organized DPOs as well as ensuring coverage o f underserved areas. The JPUF’s annual work plans will assure that funding i s available across types o f disability, and across types o f activities, so that less visible groups such as the intellectually disabled are not excluded. One particularly invisible and vulnerable group i s women and girls with disabilities who are more prone to abuse and often have no access to the limited services and support available. There will be a strong focus on ensuring a reduction in the gender gaps o f service provision, employment and broader social participation. The key issue with regard to children-at-risk i s to build a system over time which makes sure that they are supported in a systematic manner and to ensure that as many as possible are reintegrated into their families.

D. Environment

50. There are n o environmental issues raised by the project.

E. Safeguard policies

Safeguard Policies Triggered by the Project Yes N o Environmental Assessment (OPBP 4.01) [ I [XI Natural Habitats (OPBP 4.04) [ I [XI Pest Management (OP 4.09) [ I [XI Physical Cultural Resources (OP/BP 4.1 1) [ I [XI Involuntary Resettlement (OPBP 4.12) [ I [XI Indigenous Peoples (OPBP 4.10) [ I [XI Forests (OPBP 4.36) [ I [XI

16

Safety o f Dams (OP/BP 4.37) [ I [XI Projects in Disputed Areas (OPBP 7.60)* [I [XI Projects on International Waterways (OPBP 7.50) [I [XI

F. Policy Exceptions and Readiness

5 1. N o policy exceptions are triggered.

52. The appraisal found the project ready to implement with the exception o f services for children-at-risk. There i s a disbursement condition requiring the government to certify that the services financed by IDA are in compliance with Bangladesh's obligations under the UN Convention on the Rights o f the Child.

* By supporting the proposedproject, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas

17

Annex 1: Country and Sector Background

Estimates o f prevalence vary largely due to differences in the definit ion o f disability and coverage o f the surveys. A

International (HI) and NFOWD17 drew o n a sample population o f 13,205 people

percent as the prevalence rate o f disability. Figure 1 illustrates the

recently conducted study by Handicap

f rom a l l over Bangladesh and found 8.9

BANGLADESH: Disability and Children-at-Risk Project

Bangladesh: Type of Disability 1 1 %

1% 7

19

Country Background

- percentage share o f different type o f

Bangladesh has made strong progress towards reducing income poverty, p lacing it roughly o n track to meet the target o f halving the share o f the population living o n less than US$1 per day by 2015. Rising and stable economic growth, underpinned by good economic and social policies, have been a key factor in making this possible. In addition, pioneering social entrepreneurship, often with creative partnerships under innovative institutional arrangements, has also contributed immensely to the successes attained. These successes have compensated somewhat fo r Bangladesh’s critical and persistent weaknesses in governance. Currently the challenge i s t o steer the economy to middle income status, to which end the m u c h improved economic fundamentals and successful implementation o f an array o f first generation reforms in recent years augur wel l . But the challenges ahead are formidable. Bangladesh must actively pursue a range o f second generation pol icy reforms, which are necessary to sustain and improve good growth and human development achievements.

i Visual impairment E Physical disability 0 Heanng impairment 10 Intellectual disability E Speech impairment Multiple disability

I f economic growth i s not enough to achieve this, it i s necessary to examine the institutions and delivery models responsible for the services that are meant to combat hunger, disease, mortality, ignorance and discrimination, t o name a few. A key challenge i s t o find a way to integrate those who cannot fully help themselves into the mainstream o f society. T w o major groups need direct support - the disabled and vulnerable children - and they are the targets o f this project. Brief Profile of Disability and Vulnerable Children

Generally speaking, the rate o f disabil ity in Bangladesh declines with rising incomes suggesting a close relationship between poverty and disabil ity in the country. The situation o f children i s worsening, particularly in the metropolitan areas.16 The available evidence suggests that the slum population, for wh ich outcomes o n many MDG-related indicators are highly unfavorable, has been growing at roughly 13 percent per year, or over 200 percent in the last decade alone.

Profile of People with Disabilities: Issues and Challenges

I6 Stopnitzky, AI-Zayed and Khan (2006) “Addressing the Crisis in Secondary Education for the Poor in Metropolitan Areas”. Presented at Workshop on Towards and Strategyfor Achieving the MDG Outcomes in Bangladesh.

Disability in Bangladesh- A Study on Prevalence, July 2005 by Handicap International and NFOWD.

18

study also provides age-wise break up o f disability along with types o f disabilities (Table 1). This prevalence rate o f 8.9 percent differs significantly from the last census, which yielded a 1.6 percent prevalence rate, and a 1997 Action Aid survey o f five geographic areas in Bangladesh which documented 13.3 percent. The HI/NFOWD study sample i s fairly small, but the methodology i s more in line with what the Bank considers good practice for disability measurement, and will therefore guide project development until better data can be made available.

Types of Disability

Mul t i p le

Age Groups 0-5 [ 6-15 I 16-30 I 31-50 I 51-64 I 64+ 7.1 I 10.4 I 10.3 I 4.0 I 13.8 I 18.6

Intellectual Physical

I Speech I 10.7 I 8.5 I 5.6 I 2.5 I 0.9 1 1.9 I

0 10.4 15.1 7.0 2.3 1.2 50.0 30.2 33.3 30.8 24.8 1 .o

Visual Hear ing

People with disabilities are amongst the most vulnerable o f the disadvantaged groups o f people in Bangladesh. Most receive l i t t le or no development assistance. Therapeutic services and availability o f assistive devices are extremely limited. Socially and economically, people with disabilities are l e f t out o f the development process mainly due to lack o f awareness o f people who design and implement development programs, negative attitude among general population towards people with disabilities, scarcity o f resources and lack o f knowledge and sk i l l s o f how to address needs o f people with disabilities inside development programs. People with disabilities have limited opportunities to study at educational institutions. The environment in which they l ive are often inaccessible, lacking basic accommodation to transport, buildings, the education curriculum, teaching methodologies, job markets, etc., further creating obstacles to participation.

14.3 11.3 15.9 40.3 39.4 47.4 17.9 29.2 19.8 15.4 18.3 14.7

Poverty has a strong influence on the disability situation in the country. About 80 percent o f people with disabilities are living in the rural areas. For a country l ike Bangladesh, poor nutrition, dangerous working and l iving conditions, limited access to health care, poor hygiene, bad sanitation, inadequate information about causes o f impairment, and natural disasters contribute to the creation o f disabilities. DFID estimates that more than 50 percent o f the impairments that result in people being included in current disability prevalence rates “are preventable and directly linked to poverty.” Poverty, impairment and disability also have impacts on families. For every person who has an impairment and/or disability, 4 to 5 other family members are also affected. This means that a large section o f people in Bangladesh are directly linked to disability as a result o f poverty and vice-versa. The poverty situation and scarcity o f resources also limits creation o f rehabilitation opportunities for people with disabilities and their capacity to access and attain much needed services. A study on Disability in Bangladesh reflects that 68.9 percent o f people with disability cannot seek medical or rehabilitation assistance due to economic hardships. The same study also found that 96.7 percent of people with disabilities did not get any help from organizations. All these are suggestive o f the

19

millions o f people with disabilities in Bangladesh who are not receiving much needed support mainly due to poverty conditions."

Profile of Children-at-Risk: Issues and Challenges

According to the World Bank in 2003, 37 percent o f the 133.3 mi l l ion population o f Bangladesh belonged to the age group o f 0-14 years, yielding a population o f almost 50 mi l l ion children. According to the 2001 census, out o f the total population o f 130 mill ion, there were 55.8 mil l ion children under 18 years. The absolute number o f children-at-risk i s not available; however, with 55.8 mil l ion children and poverty rates o f 40 percent, this number could be significant. Children are the mainstay o f a nation, and keeping this mind government has undertaken a number o f activities that have direct bearing upon children." Available data pertaining to children at risk include:

Children at Work: A National Child Labor Survey, 2002-03 by the Bangladesh Bureau of Statistics conducted throughout the country, covered the chi ld population aged 5-1 7 years old. Out o f the estimated 42.3 mi l l ion children in this age group, 7.4 mi l l ion were engaged in economic activity, Out o f the working children, about 5.4 mi l l ion were boys and nearly 2 mil l ion girls. The survey report said there are over 4 mi l l ion children who neither go to school nor engage in any work. Working children were involved in 300 types o f work and o f these, 49 are injurious to their physical and mental welfare. O f the total working children in Bangladesh, 7.7 percent were engaged in hazardous jobs. According to the ILO, children are employed in a wide range o f manufacturing jobs and the results, namely lost childhood, foregone education and special susceptibility to the hazards o f the work, are the same for all.

Children on the Street: Although street children are not a new phenomenon in Bangladesh, the fact i s that appropriate data or reliable statistics are available on their number, their actual living conditions, needs and interests. According to the 'Estimation o f the Size o f Street Children and their Projection for Major Urban Areas o f Bangladesh 2005' commissioned to the Bangladesh Institute o f Development Studies (BIDS) by ARISE, the present number o f street children in six divisional cities has been estimated at 390,000. The major concentration i s in Dhaka city at 63.91 percent, and the lowest concentration o f 2.5 percent i s in Barisal. The Consortium o f Street Children estimates that there are 445,226 street children in Bangladesh, with 75 percent o f them living in the capital city, o f which 53 percent are boys, and 47 percent girls.*' The problem i s thought to be escalating due to the r ise in urban migration and rural poverty. Despite the hazardous living conditions in cities, out-migrants from rural areas are pouring into urban centers due to rural poverty, unemployment, landlessness, river erosion, family conflict, the worsening law and order situation, disintegration o f traditional family and community structures that have ushered changes in the socio-economic scenario, As such, the number o f street children i s likely to increase. The BIDS study predicts the number street children shall r ise to 1.2 mi l l ion in 2014 and 1.6 mi l l ion in 2024. All categories o f street children are called Tokai ('rag pickers') by the general public, although they may be engaged in a range o f petty trading, employment, begging or criminal activities. The average daily income o f street children i s approximately US$0.55.

Homeless Children: According to a study conducted by the BIDS on homeless children, around 700,000 children live on urban streets, a number that has grown by a third since 2003.2'. Many o f

Community Based Rehabilitation Practices and alleviation o f Poverty o f people with disabilities in Bangladesh, Bangladesh 18

Country Paper by Khandakar Jahurul Alam, N m u l Bari and Masudul Abedin Khan. l9 Ensuring Child Rights by Md. Sazedul Islam, 2007 http://streetkidnews.blogsome.com/go.php. 2o Street Children: Bangladesh, UNESCO Bangkok, htt~://www.unescobkk.or~index.~h~?id=3371, (Sept 2001 survey).

Fear for Bangladeshi Street Kids http://news.bbc.co.uk/cbbcnews/hi/newsid~5250000/newsid~5253300/5253324.stm 21

20

them are drug dependent and run the risk o f ending up incapable o f managing their own or their future families' lives. Many children come from extremely poor and broken families (fathers re- married, single mother, etc.) and are exposed to extreme deprivation suffering from malnutrition, lack o f shelter, poor health and widespread illiteracy, perpetuating the inter-generational transfer o f poverty and major loss to human development o f the country.

Children and HIV/AIDS: With a prevalence rate o f less than 1 percent, HIV/AIDS in Bangladesh may not appear to be a major threat. Yet nothing can be farther from the truth: in a population o f over 130 million, a mere 1 percent r ise would mean an addition o f more than a million HIV/AIDS cases. The first case o f HIV was detected in 1989. According to a 2004 UN study, HIV infections have tripled in the last six years. UNAIDS estimated that 13,000 adults and children were living with HIV at the end o f 2002.22

According to the study, most o f these children hail from rural areas. Young girls, in many cases, fal l victim to human trafficking and many o f them are forced into begging and prostitution. According to Ashakti Punorbashan Nibash (APON) - a drug rehabilitation center that also treats addicted street children free o f cost, most child laborers are addicted to drugs, 'chakki' in their language, so as to work hard and carry heavy luggage. They buy sleeping pills, phensidryl, heroin and hashish from local pharmacies and smugglers, who force them to carry those for them. Many o f the children's employers also provide them with 'chakki,' leading to addiction. The addicted children get involved in pick-pocketing, mugging and other crimes for money to buy drugs. Girls are particularly vulnerable among street children.23

These issues are synthesized in the table below:

Institution

Ministry o f Social Welfare (MOSW)

Department o f Social Services

Official Responsibility Policy formulation and leadership in areas o f social security and protection and inclusions o f groups such as the disabled, children- at-risk.

The service delivery arm o f the Ministry

Current Role

Lit t le policy leadership but has been instrumental with pressure from civil society in acceding to international conventions. Has not been able to rewrite or reframe laws to meet the convention requirements. The Ministry has been successful in getting increasing resources for means tested old age, widow and disability allowances distributed through local governments. In areas o f disability and social services the DSS has focused on institutional care and very l i t t le on mainstreaming the disabled and children-at-risk into the community. It has about 11,000 social workers who do not provide much service and are apparently unaware what they should do as pro-

Issues

Need to strengthen capacity to develop policies and take more o f a leadership role than a reactive role.

Provide support to training so the social workers can provide services such as early identification, referral and community based care. Also, need to change the nature o f the institutional care and attitudes o f those working in the

Project Support needed

Support the development o f policy development, monitoring and evaluation cell. During the short run this could be contracted out.

Support restructuring o f the DSS and training for the social workers so that their services can be used for pro-active early detection and community based care.

HIV and AIDS in Bangladesh http://www,youandaids,org/Asia%20Pacific%2Oat%2Oa%20Glance/Banindex.asp 23 Children: 700,000 street children risk stepping into crime world, Porimol Palma: The daily Star, Muktadhara.net. 9 May 2001.

21

Institution

National Foundation for Development o f Disabled People (now JPUF)

NGOs

Official Responsibility

Set up as an endowed foundation to finance activities supporting the People with Disabilities from its endowment income. The government provided the initial endowment and has added to it regularly.

The Government has made NGOs a major partner in the delivery o f services to the disabled, children- at-risk and other vulnerable groups.

Current Role

active social workers. Despite i t s legal independence, it was treated as an arm o f the Ministry, headed by reluctant officials who saw it as a punishment posting. It functioned in a desultory non-transparent manner making small grants, which the major DPOs found too small to be o f use to service deliveIy needs. There has been no audit and its lack o f transparency has discouraged other contributors to i ts endowment, which remains small. Bangladesh i s the home of some o f the largest and most successful NGOs in the world which are world leaders. But the country also has many small localized NGOs some which have strong capacity and some o f which are quite weak.

Issues

institutions. Need to