Document of The World Bank Report No: 21344-AR PROJECT APPRAISAL DOCUMENT ONA PROPOSED LEARNING AND INNOVATION LOAN IN THE AMOUNT OF US$5.0 MILLION TO THE ARGENTINE REPUBLIC FOR A FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM October 30, 2001 Argentina, Chile, Paraguay and Uruguay Country Management Unit Poverty Reduction and Economic Management Unit Environmentally and Socially Sustainable Development Unit Latin America and the Caribbean Region CURRENCY EQUIVALENTS (Exchange Rate Effective November 27, 2000) Currency Unit = $ Argentine Pesos 1$ = US$1.002 US$1 = $0.998 FISCAL YEAR January I through December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CBO Community-Based Organization CEPAL Comisi6n Econ6mica para America Latina y el Caribe (Economic Commission of l atin America and the Caribbean) CMU Country Management Unit CNM Consejo Nacional de la Mujer (National Council of Women) CQ Selection Based on Consultants' Qualifications FARAH Financial Accounting, Reporting and Auditing Handbook GOA Government of Argentina IBRD International Bank for Reconstruction and Development IDB Inter-American Development Bank LCR Latin America and the Caribbean Region LCSES Latin America and Caribbean Region Environmentally and Socially Sustainable Development Sector Management Unit LCSPR Latin America and Caribbean Region Poverty Reduction and Economic Sector Management Unit LG Local Government LIL Learning and Innovation Loan M&E Monitoring and Evaluation MET Memnorandum de Entendimiento Tecnico (Technical Memorandum of Understanding) N.B.F. Not Bank-Financed NGO Non-Governmental Organization PA Participatory Appraisal PAD Project Appraisal Document PHRD Policy and Human Resource Development (Japanese Trust Fund) PIU Project Implementation Unit (Unidad Ejecutora) PMR Project Management Reports PPF Project Preparation Facility PROFAM Family Strengthening and Social Capital Promotion Project QCBS Quality- and Cost-Based Selection SA Social Assessment SIEMPRO Programna de Seguimiento de Indicadores y Evaluacion de Proyectos Soc iles (Mor itorl r c.F Indicators and Evaluation of Social Projects Program) T .A Technical Assistance TOR Terms of Reference UNDP United Nations Development Programme UNIFEM United Nations Development Fund for Women Vice President: David de Ferranti Country Director: Myrna Alexander Sector Directors: Ernesto May/John Redwood Sector Managers: Maria Correia/Shelton Davis Team Leaders: Maria-Valdria Pena/Sandra Cesilini Argentina Family Strengthening and Social Capital Promotion Project - PROFAM CONTENTS A. Project Development Objective ...................................................................2 1. Project development objective ...................................................................2 2. Key performance indicators ...................................................................2 B. Strategic Context ...................................................................2 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project ........2 2. Main sector issues and Government strategy .................................................................2 3. Learning and development issues to be addressed by the project ..................................5 4. Learning and innovation expectations ................................................................... 6 C. Project Description Summary ...................................................................7 1. Project components ...................................................................7 2. Institutional and implementation arrangements ............................................................. 8 3. Monitoring and evaluation arrangements ...................................................................9 D. Project Rationale .................................................................. 10 E. Summary Project Analysis .................................................................. 10 1. Economic .................................................................. 10 2. Financial .................................................................. 10 3. Technical .................................................................. 11 4. Institutional .................................................................. 11 5. Environmental .................................................................. 12 6. Social .................................................................. 12 7. Safeguard Policies .................................................................. 15 F. Sustainability and Risks .................................................................. 15 1. Sustainability .................................................................. 15 2. Critical Risks .................................................................. 16 3. Possible Controversial Aspects .................................................................. 16 G. Main Loan Conditions .................................................................. 16 1. Effectiveness Conditions .................................................................. 16 H. Readiness for Implementation .................................................................. 17 1. Compliance with Bank Policies .................................................................. 17 - iii Annexes Annex 1. Project Design Summary Annex 2. Project Description Annex 3. Estimated Project Costs Annex 4. Social Assessment Annex 5. Procurement and Disbursement Arrangements Table A. Project Costs by Procurement Arrangements Table A 1. Consultant Selection Arrangements Table A2. Procurement Plan Table B. Thresholds for Procurement Methods and Prior Review Table C. Allocation of Loan Proceeds Annex 6. Project Processing Budget and Schedule Annex 7. Documents in Project File Annex 8. Statement of Loans and Credits Annex 9. Country at a Glance IBRD Map 29348, Map of Argentina - iv - ARGENTINA FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM Project Appraisal Document Latin America and the Caribbean Region Argentina, Chile, Paraguay and Uruguay Country Management Unit Date: October 30, 2001 Team Leaders: Maria-Valeria Pena/Sandra Cesilini Country Director: Myrna Alexander Sector Directors: Ernesto May/John Redwood Sector Managers: Maria Correia/Shelton Davis Project ID: P070374 Sector: BI - Institutional Development Lending Instrument: Learning and Innovation Loan (LIL) Theme(s): Gender Poverty Targeted Intervention: Y Project Financing Data [X] Loan [ ] Credit [ Grant [ Guarantee [ ] Other[Specify] For LoanslCreditslOthers: Amount (US$m): $5.0 million Proposed Terms: LIBOR-Based Variable Rate Single Currency Loan Grace period (years): 5 Years to maturity: 15 Commitment fee: .75% Front-end fee on Bank loan: 1.0% Financing Plan: Source Local Foreign Total GOVERNMENT 1.05 0.00 1.05 IBRD 4.51 0.49 5.00 Community Participation 0.67 0.00 0.67 Total 6.23 0.49 6.72 Borrower: Argentine Republic Responsible agency: National Council of Women - Consejo Nacional de laMujer - CNM Address: AV. R.S. Penia 648, 7P. "A"; (1035)- Capital Federal Buenos Aires, Argentina Contact Person: Marisa Alfiz Tel: 345-6402/6403/0683 Fax: 345-6402/6403/0683 E-mail: cnmgcnm.gov.ar Estimated disbursements (Bank FY/US$M): - - FY-:: - .- - - 2002:--- - a m - - - 2003'- - 2004- 2005 Annual 0.8 1.9 1.7 0.6 Cumulative 0.8 2.7 4.4 5.0 Project Implementation Period: January 2002 - December 2004 Expected Effectiveness Date: January 1, 2002 Expected Closing Date: June 30, 2005 A: Project Development Objective 1. Project development objective: (see Annex I) The development objective of the Argentina Family Strengthening and Social Capital Promotion Project - PROFAM - is to test and monitor a social capital approach to address the vulnerability of the poor by targeting families as comprehensive units and promoting gender equity. To achieve this objective, the project will support, monitor, and learn from: (a) initiatives promoted by local governments (LGs) and community-based organizations (CBOs) to enhance effective allocation of resources and use of opportunities by vulnerable families through the promotion of gender equity and cohesive family practices (Programa Equidad); (b) actions led by CBOs and LGs to foster more effective use of community resources by strengthening linkages among neighboring families; (c) actions that capture the potential of community social capital by advancing prospects for the creation and/or strengthening of civil society organization networks; and (d) dissemination of best practices on community interventions supporting family development and equitable gender relations. 2. Key performance indicators: (see Annex 1) Key performance indicators to be compared to a baseline study include: (a) improved awareness among beneficiary families about the importance of gender equity and cohesive family practices as a means of reducing their vulnerability; (b) improved awareness among beneficiary families participating in Programa Equidad about children's emotional needs and how to respond to them; (c) decrease in domestic violence episodes among beneficiary families participating in Programa Equidad; (d) improved evidence of responsible parenthood among beneficiary families of Prograina Equidad through: (i) increase in father's involvement in childcare and support; and (ii) decrease in teenage pregnancy; and (d) increase in the proportion of CBOs and LGs connected in civil society networks. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 20354 Date of latest CAS discussion: June 27, 2000 In addition, the Board discussed the Progress Report on July 19, 2001 (R2001-0127; IFC R2001-0155). The joint IBRD/IFC Argentina Country Assistance Strategy (CAS) was discussed by the Executive Directors on June 27, 2000. A new administration took office in December 1999 and is strongly committed to improving the well being of the poorest families in the country. The LIL is consistent with the CAS goal of supporting the design and implementation of human capital development and poverty alleviation programs that address the specific needs ofparticular vulnerable groups and/or demonstrate effective and innovative ways of delivery, through the provision of technical assistance (TA) and investment lending. Based on the results of the Poverty Assessment (1999), that identified gender as an important dimension of poverty, the CAS identifies family capacity development as a priority. 2. Main sector issues and Government strategy: Argentina has experienced a strong average growth since the Convertibility Plan was launched in 1991. The size of the economy doubled from 1990 to 1999. However, in 1995, the economy contracted after the devaluation of the Mexican peso, and since 1998, the combined effects of the East-Asia crisis, the devaluation of the Russian ruble and of the Brazilian real, and deterioration in commodities prices, have caused a deceleration in growth. GDP declined by about 3.5 percent in 1999 and has stagnated in 2000. Unemployment reached a high of 18 percent in 1996, fell to 12 percent with the recovery in 1997 but has again increased to more than 15 percent. The results from the Social Capital Survey carried out in 2000 show the presence of at least one unemployed person in 52 percent of the poorest households in contrast to only 11 percent in the highest income quintile households. Although many social indicators have improved in the past ten years, poverty levels have remained high. The Bank's latest estimates (see the - 2 - 1999 Poverty Assessment) put poverty at about 30 percent of the populations, with more than 40 percent of Argentina's children in families below the poverty line. Family and Poverty. Poverty and family organization are intrinsically linked. Decisions on the allocation of time, finances, and use of resources and opportunities are made at the family level and they are based on the organization of gender and generational roles. Variations in gender roles, including segregated or interchangeable and balanced roles will affect reproductive patterns, acquisition of human capital, opportunities and timing of entrance in the labor market, and income earning potential. One of the most conspicuous consequences of the association between poverty and segregation of gender roles in Argentina has been the deterioration offamily cohesion and its ability to mobilize and make use of resources and opportunities. As indicated in the Poverty Assessment (Poor People in a Rich Country, 1999), the poor in Argentina have the greatest family obligations and dependents. In urban areas, the poor have significantly larger families. They also have younger families with high dependency ratio and unemployment rates that are twice the ratio of non- poor. The 1997 household survey shows that 52 percent of Argentinean families have children under the age of fourteen, with one-fourth of families in the poorest quintile having three or more children under the age of fourteen. Results from the recent Social Capital Survey (2000) have confirmed this trend by also showing that, among the households in the lowest income quintile, 32 percent of residents were less than 12 years, whereas among those in the highest quintile, this proportion dropped to 8 percent. While the overall fertility rate in Argentina is low in comparison to other countries in the region, this rate varies widely across socioeconomic groups. Residents in rural and marginal urban areas are at a disadvantage in terms of access to reproductive services and informnation. For example, women consulted for the Social Assessment (SA) during project preparation were unaware of the linkage between multiple pregnancies, poverty, and their poor health status-to be either pregnant or nursing was very often accepted as destiny. The SA also reveals that many women, despite having many children at a very young age (sometimes five children before the age of 30), contraception was refused by their neighborhood public health facility. It is noteworthy that the standard health care package covered by quasi-public health insurance providers does not include contraception. Non-governmental organizations (NGOs) consulted during the SA note that it is not unusual to find women with ten children in the shantytowns of metropolitan Buenos Aires. According to the 1999 United Nations Development Fund (UNDP) report ( Violencia de Genero in Argentina), pregnancy among teens is on the rise with about 15 percent of all mothers under the age of twenty. In absolute terms, of the 700,000 annual births, about 100,000 mothers are less than twenty years old. A small proportion (3.3 percent) consists of children born from mothers between the ages of 10-14. This is significant in social, biological and psychological terms. Evidence also shows that precocious pregnancies are more frequent among those with less schooling or living in more precarious socioeconomic conditions. There is also an apparent lack of paternal responsibility in the case of half of all children born that year. The lack of information and access to contraception alternatives has resulted in a high number of illegal abortions - the third cause of maternal mortality in the country. Domestic violence and street violence are also commonly reported and rapidly becoming one of the most important issues on the agenda of local governments and CBOs. Individuals under the age of 21 are the victims in 76 percent of all sexual crimes, and in 87 percent of the cases, the victims are women. In about 90 percent of the cases, the victims were familiar with the perpetrators. In 1997, of the 133,376 telephone calls to a hot line (Telefono Te Ayudo), the highest proportion related to violence committed against children, and while the majority of perpetrators were the father, in 20 percent of the cases, the mother was the perpetrator. Social Capital. Several research studies conducted by the Bank demonstrate that communities with higher levels of social capital are more likely to organize, and define and pursue common goals. The - 3- Social Capital Survey in Argentina (2000) indicates that the diversity and frequency of networking in the lowest income quintile is in general lower than in the highest. For example, among those living in the poorest quintile, only about 33 percent socialize with friends in contrast to almost 60 percent in the highest quintile, nearly double the percentage. About 58 percent of residents in the highest quintile households participate in activities with their families. This percentage drops to 43 percent in the poorest quintile. However, among those who participate, the lowest quintile is as likely as the highest to be involved in philanthropic organizations (33 percent and 34 percent respectively). These results indicate that poverty does not signify a lack of generosity. Government Strategy Argentina faces a set of social problems that are not easily resolved in the short run. The Government of Argentina (GOA), in partnership with the provinces, has shown a strong commitment to greater social justice notwithstanding fiscal constraints. GOA recognizes the need to strengthen the social safety net, reduce social risks, and stimulate community development. It thus has in place a variety of social programs targeting the poor, many of which are supported by the World Bank and the Inter-American Development Bank. Many of these programs are well targeted and some have a high degree of success in reaching the right beneficiaries; others have never been evaluated and there is a general impression that there are too main programs, duplication, and heavy administrative costs. Moreover, as studied in the recent Poverty Assessment, coverage is low-only 25 percent of the poor have access to public programs-and funding of these programs is counter-cyclical-funding gets cut just when needs are the greatest when an economic crisis hits. Increasingly, there is a concern that social programs in and of themselves are not sufficient to build capacity among the poor and to promote collective and individual action to improve the wellbeing of the poor. Thus, there is still a very large agenda in the social sector and among its priorities, Government intends to revamp many social programs, with improved targeting, service delivery, and the incorporation of particular concerns, as recognized in the CAS, to indigent, children, and vulnerable groups through a gender perspective. Both the World Bank and the Government are conscious that gender dimensions need to have a higher profile in development programs and are making a particular effort to incorporate gender more explicitly the Bank-financed projects. A PHRD grant, for instance, is supporting actions to improve Government capacity to plan and implement public policies and programs so they respond to the differentiated needs and priorities of both men and women. In addition, the Bank's technical assistance (TA) facility on gender is providing ongoing follow-up to Bank projects during preparation and implementation. Based on experience from the Latin America and Caribbean Region, this lack of follow-up in projects is one of the key constraints for successfully integrating gender into operations. More broadly, the Government's main instrument for addressing the gender dimensions of poverty and social policy is the National Council of Women (Consejo Nacional de la Mujer, CNM). CNM is a politically autonomous, decentralized entity that falls under the Chief of Cabinet (Jefetura de Gabinete de Ministro de Poder Ejecutivo Nacional). CNM was created in 1994 with the responsibility to ensure compliance with the Convention for the elimination of all Forms of Discrimination against Women, under Law 23.179. CNM has adopted a philosophy that democracy without equality is not democracy. It has also adopted a gender perspective to address disparities and/or inequities between men and women, rather than only focus on women's issues. The policies it has adopted have the common aim of promoting shared responsibility among men and women within the concept of citizenship. In practical terms, this has meant a response to poverty based on a strategy that emphasizes the inclusion of men in household chores and child care, the expansion of opportunities for women in the labor market and public decision-making and, for the couple, more conscious reproductive and health choices. CNM supports sectoral strategies to improve the quality of life in the following areas: (a) health-to promote gender equity and quality of health care including responsible reproductive decision-making; (b) -4 - education-to promote equal opportunities for boys and girls; (c)justice-to coordinate actions among government agencies to reduce violence against women and ensure international conventions associated with women's and children's rights are upheld; (d) legislation-to work with parliament on the promotion of laws that strengthen gender equity; and (e) communication-to develop information campaigns. CNM has also promoted the establishment of a Forum on Civil Society, comprised of civil society organizations, to create a space for the exchange of ideas, debate, and promotion of proposals for the design and monitoring of public policies and programs. In addition, CNM recently began implementation of the National Program for Women (Programa Federal de la Mujer), financed by the Inter-American Development Bank (IDB), which will support the establishment of decentralized Provincial Offices of the Program for Women (Areas de Mujer Provinciales). Addressing the gender dimensions of poverty and social policy in the present context of rising poverty, unemployment, violence and social exclusion in Argentina presents a challenge. The Government's goal is to reduce vulnerability by strengthening family cohesion, solidarity between male and female family members, and capacity for conscious socio-economic and reproductive decision making. Deepening social capital to be able to undertake collective action is an imperative. Given the complexity and newness of these issues in Argentina, their sensitivity and the lack of a track record in such areas, the Government has wisely adopted a cautious stance and intends to proceed with a pilot program relying on local institutions and building upon the best practices and leading cases that do now exist and/or can be developed. An essential ingredient in this strategy is to promote activities that can have a great impact in the short run and involve groups keen on accepting changes. Thus, the main features of the strategy entail: (a) capturing and fostering the capacity of LGs and CBOs to reduce the vulnerability of poor families by promoting their cohesiveness; (b) supporting actions which deal with the family as an integral entity rather than utilizing a specific sector approach; and (c) advocating a role for the public sector that stresses the linkages between poverty and gender segregation. A fundamental part of the strategy is to move away from client-oriented solutions that may foster dependency among the poor and toward innovative interventions that foster the active participation of families themselves in the design and implementation of such programs. 3. Learning and development issues to be addressed by the project: Social Capital Approach. The first strategic choice was to build on the existence of community social capital rather than existing centralized government institutions. Intensive monitoring and evaluation of the LIL will focus on the most effective grassroots arrangements for family development with an emphasis on the creation of networks of civil society organizations. The LIL will provide opportunities to learn from the implementation of a community-based perspective by CNM with the participation of beneficiaries. The LIL will also provide important lessons on whether and under what conditions empowered community groups can play a central role in the promotion of equitable gender and family roles and anti-violence interventions. The successful implementation of this LIL will make a substantial contribution to the design of more effective projects that improve the well being of poor men and women by: (a) promoting family development; (b) addressing norms, expectations, and values that lead to passivity, discrimination, and often violence; and (c) avoiding the continuation of clientelistic relations among the poor. This project will provide lessons from three different models: (a) promoting change within local governments in their relationship with families, particularly on how gender and generational roles are defined; (b) providing incentives to different forms of association between local governments, service NGOs, community-based organizations (CBOs), and families; and (c) building partnerships among families. The implementation of these different types of activities in different regions and communities will provide important lessons on how to target comprehensive family programs. -5- Promoting a Comprehensive Approach to Families. The second strategic choice by GOA was whether to support sectoral interventions targeted to families (after-school programs, nutrition for mothers, micro- credit for adults, etc.) or whether to support an approach which would strengthen and empower a family as an entity, capturing its own resources and emotional capacities. By choosing to test a comprehensive approach to family development, the project will provide lessons on: (a) what are the most effective means to recuperate damaged family relationships; (b) what is the potential of poor families to reduce some of their vulnerability either through cooperation among family members and/or cooperation among families in the same neighborhood (such as child care and division of domestic and reproductive chores); and (c) what is the extent to which poor families are available to cooperate with other poor families to promote their own development. Promoting Gender Equity and Changing Gender Stereotypes. The third strategic choice by GOA was whether to design the LIL addressing women's issues or whether to learn from a gender approach which includes male and female needs and perspectives. Indeed, given that women and men's social standing emerges from gender roles, socialization, and expectations, both male and female roles will be addressed in PROFAM. The proposed project will apply a "true" gender perspective in its approach and take into account the impacts of gender relationships on the family by addressing the consequences of gender roles on both sexes and considering the linkages between the genders rather than focusing solely on women. This project will promote awareness and leadership about the value of equitable relationships between men and women and the transmission of new ideas and successful experiences that can be replicated throughout urban and rural Argentina. It will also promote awareness on the relationship between violence, vulnerability, and gender segregation. A final decision was whether to implement the LIL through an agency specializing in gender and development, such as CNM, or to learn from an agency specializing in poverty alleviation. CNM was chosen given its consideration of gender segregation as an important dimension of poverty, an unusual approach in organizations specializing in social policy. CNM was also selected for its interest in working with grassroots organizations, rather than with a centralized approach. This LIL will allow the government to test an approach to social policy focused on an associative perspective (gender! family/community/services) rather than solely on service delivery. 4. Learning and innovation expectations: [x] Economic [x] Technical [x] Social [x] Participation [ ] Financial [x] Institutional [ ] Environmental [x] Other (a) Economic. The LIL is expected to provide important lessons on how to identify and overcome obstacles that segregated gender roles pose to reducing the vulnerability of poor families. These obstacles may be overcome with actions such as providing access to reproductive information and responsibilities to women and men or promoting a more balanced division of intra-household work, thus improving women's opportunities in the labor market. (b) Technical. The LIL will: (i) develop a participatory monitoring and evaluation system in which beneficiary's concerns are included and considered as indicators of the project's impacts and performance; (ii) assess the impact of programs with a gender equity approach; and (iii) develop the capacity of multiple actors to understand the interaction between family and gender issues (particularly the role of socialization on the development of gender roles) and to plan equitable gender policies with equitable gender outcomes, as part of development policies. The LIL will initiate a mutual learning process on family and community cohesiveness through Programa Equidad. This program is the first to be developed within Argentina and the lessons learned will potentially benefit other interventions designed to reduce violence among men and women and/or to foster a stronger sense of family and community at the local levels. (c) Social. The LIL will provide opportunities to leam about: (i) how to capture inherent, but often hidden family resources in order to promote the well being of all family members; (ii) the benefits of -6 - cooperation among grassroots organizations and between males and females to reduce the hardship of poverty; and (iii) how to support heads of family affected by the high incidence of unemployment to adapt to new roles within the family. (d) Participation. The LIL incorporates a participatory monitoring and evaluation process through the involvement of civil society and beneficiary families in the review and discussion of lessons learned from the project activities. The expectations are to learn: (i) how to develop mechanisms for informed stakeholder participation in the monitoring and evaluation processes; (ii) how to foster families' involvement within the communities where they live; and (iii) what are the most effective means of strengthening family groups. (e) Institutional. The LIL will also test the advantages and disadvantages of institution-based (local government) and civic-based (CBOs and NGOs) approaches to address family development and gender equity. It will work through existing institutions to provide inforrnation on: (i) how to develop the capacity of local government to understand and apply a gender approach to public and social policies; (ii) how to provide incentives to the civil sector to promote more equitable human resources, recruitment, and benefits policies for both men and women, for instance, recognizing women's rights to promotion, but also the paternal responsibilities and rights of men; and (iii) how to introduce gender concerns and criteria within social programs addressed to the poor. (g) Replicability. Since a family strengthening and social capital LIL with a gender approach to poverty alleviation will be the first to be implemented within the region, the lessons learned will help decide whether: (i) it could be expanded to a greater number of beneficiaries; (ii) whether other sectoral projects could take the same gender approach; or (iii) whether it could in its entirety or in its components, be replicated in other countries. C: Project Description Summary 1. Project components: (See Annex 2 for a detailed description and Annex 3 for the detailed costs.) The main component of the project is the Programa Equidad to facilitate equitable and cooperative family and community life. This program is a demand-driven mechanism that will provide grants for subprojects implemented by LGs and CBOs that address issues of reproductive health, anti-violence, civic rights, cooperation within and among families, and community development aimed to reduce the degree of vulnerability of poor families. Typical subprojects to be considered may include programs such as those visited during the Social Assessment for the project including: (a) domestic violence interventions where children are supported and both men and women are targeted (after time and intense work, the men can function as facilitators of future interventions with other men); (b) placement of children from dysfunctional and violent parents in temporary, community-based "host" families while there are interventions focusing on strengthening the child's original family - a strategy which has positive results and is proven to be more cost-effective than larger institutional homes; (c) an after-school program that supports children with learning disabilities by involving both parents; or (d) a local government-sponsored health center that offers an after-school program to facilitate discussion groups among men and women about reproductive health roles and responsibilities and responsible parenthood. -7- The project's other components will address gender awareness more generally, and provide support for project implementation and institution building for CNM, including the baseline study, monitoring and evaluation. indicdativ %Of an- %of Component 'eto Iot Total financing Bank- 1. Family Strengthening Capacity Building 4.27 63.9 3.57 83 a. Programa Equidad b. Social Capital Promotion 2. Gender and Communication 1.20 18.2 0.83 69 Community Awareness 3. Institutional Institutional 1.20 16.9 0.55 50 Development Development Total Project Costs* 6.67 99.0 4.95 75 Front-end fee 0.05 1.0 0.05 Total Financing Required 6.72 100.0 5.00 * Includes Physical and Price Contingencies 2. Institutional and implementation arrangements: 2.1 Institutional Arrangements: The institutional arrangements are designed to build upon the existing capacity and experience of CNM, which will be responsible for project implementation through existing local government and community based organizations. The project will be implemented in collaboration with the Ministry of Social Development and Environment (Ministerio de Desarrollo Socialy Medioambiente) to ensure the coordination of PROFAM with other similar initiatives targeted towards vulnerable groups. At the same time CNM will coordinate the proposed project with other programs under its responsibility, namely, a $15.0 million project financed by the Inter-American Development Bank (IDB) - the National Program for Women (Program Federal de la Mujer) and a Policy and Human Resource Development (PHRD) Grant from the World Bank for a Gender Technical Assistance Capacity Building Initiative, in addition to collaborating on other donor funded programs. 2.2 Implementation Arrangements: CNM will be responsible for all project implementation activities, including accounting, disbursement, monitoring and evaluation, coordination, and supervision. CNM will implement the project through the existing Project Implementing Unit (PIU) (Unidad Ejecutora) comprised of both technical and administrative specialists and managed by an Executive Coordinator, who will manage both the IDB project and the proposed LIL. At present the PIU has both administrative and technical groups. The administrative group is staffed by an accountant and one assistant and deals with procurement, financial management, and other administrative aspects. The head of this group, who will serve as the Administrative Chief, is a former consultant to the IDB and is familiar with procurement procedures. Under the project, a second technical person and an administrative assistant would be hired to work within the PIU administrative group with primary responsibility over the implementation of the LIL. Short-term consultants will be hired for special tasks, when necessary. The principal activity under the PROFAM project will be the implementation of a demand-driven small grants program - Programa Equidad. Potential grant recipients will include community-based networks -8- comprised of civil society organizations, local government, and CBOs that are implementing innovative projects, which are compatible with the objectives of PROFAM. Technical assistance for the preparation and implementation of subprojects may be included in the proposal amount. Proposals will be developed in accordance with procedures and criteria outlined in the Operations Manual and will be evaluated and selected by an external committee of specialists (See Annex 2 for more details). CNM's implementation responsibilities include: (a) ensuring that appropriate methods are identified and utilized to target and inform key stakeholders throughout the project; (b) facilitating the definition of mechanisms that ensure sustained accountability, communication, and monitoring with the beneficiary communities and families by recipient/implementing organizations and networks; (c) emphasizing the inclusion of families in the planning, control and oversight of subprojects; (d) overseeing the quality of the implementation of subprojects and other project activities; (e) monitoring and evaluating the project's performance; and (f) developing and measuring impact indicators. Specific roles and responsibilities for all entities involved in the implementation of the project, including institutional structure, are included in the Operations Manual. The project will be implemented over a period of three years (January 2002 to December 2004). Procurement. Disbursement, and Financial Management Procurement, disbursement, and financial management arrangements have been discussed in detail with CNM. The Procurement Specialist in the Argentina Resident Mission carried out an overall assessment of the procurement capacity of CNM and a procurement action plan was agreed upon with CNM. Annex 5 contains a description of the procurement and disbursement arrangements covering goods, consultant services and training, and Programa Equidad grants. A Bank-certified Financial Management Specialist also carried out an assessment of CNM during project preparation. Based on this assessment, CNM satisfies the basic minimum financial management requirements; however it is not currently eligible for Project Management Report (PMR)-based disbursements. It was agreed that traditional disbursement procedures would be used for a transition period of six months after project effectiveness. These arrangements are reflected in the Operations Manual. Accounting, Financial Reporting, and Auditing Arrangements. The project will maintain project accounts in accordance with sound accounting practices acceptable to the Bank, as required by the Financial Accounting, Reporting and Auditing Handbook (FARAH). CNM will have the records and accounts of the project for each fiscal year audited, with a separate opinion with respect to the Statements of Expenditures and the Special Account, by independent and qualified auditors acceptable to the Bank. A national auditor will audit all project operations (on an annual basis), as described in the Operations Manual. The requirements for accounting, financial reporting, and auditing are described in detail in Annex 5 and the Operations Manual. 3. Monitoring and evaluation arrangements: An effective monitoring and evaluation system (M&E) is crucial to the success of this LIL since it will allow the testing and improvement of service delivery approaches based on lessons learned. The system should be established at the outset of project implementation. The use of participatory techniques in monitoring and evaluation will be encouraged through the inclusion of project beneficiaries' own evaluation. The adoption of key indicators will enhance data comparability and information sharing among regions and provinces. The M&E system will allow testing through control groups in comparison with a baseline: (a) LGs versus CBOs; (b) local-based approaches versus centralized approaches; (c) family approach versus sectoral approach; and (d) gender equity approach versus approaches that accept traditional roles. The monitoring and evaluation system will be systematically documented to enhance the learning process within CNM and among other Ministries and civil society organizations, and to exchange experiences with other -9- projects in Argentina and in other countries. Civil society will participate through the Forum of Civil Society and other organizations to be consulted during projecf implementation. The monitoring and evaluation system follows the logical framework of the LIL, assessing component performance, outputs, and impacts. CNM, with support from its provincial offices, will have primary responsibility for project supervision, monitoring and evaluation. On an annual basis, beginning in 2002, CNM will prepare a Project Implementation Report covering project implementation activities and monitoring and evaluation indicators during the previous year as well as an Annual Operating Plan for the following year. The ongoing Bank-financed Monitoring of Indicators and Evaluation of Social Projects Program (Programa de Seguimiento de Indicadores y Evaluacion de Proyectos Sociales, SIEMPRO) will also contribute to the monitoring and evaluation of PROFAM impacts. Baseline. The baseline study will include gender-desegregated data and it will be developed by integrating the results of studies to be carried out under the project which include families, LGs and CBOs. A survey carried out by CNM, in collaboration with the Bank on the reproductive issues of poor rural families, will complement the baseline. Reports. The monitoring and evaluation system includes three types of reports: (a) Operational Reports of each component to be prepared according to the performance monitoring indicators timetable; (b) a Mid-term Evaluation Report incorporating beneficiaries' views to be prepared at the end of the first year and disseminated to civil society; and (c) an Impact Evaluation Report to be produced at the end of the third year consisting of results from the beneficiary assessment and main lessons learned to be disseminated among federal and local governments and civil society. D: Project Rationale: This section is not to be completed in a LIL PAD. Rationale should be implicit in paragraph B: 3. E: Summary Project Analysis (only as applicable to this LIL) 1. Economic The project has not been subjected to a conventional economic rate of return analysis since its immediate objectives and outputs are either primarily institutional or involve changes in behavior. However, the project will generate the following non-quantifiable economic benefits: (a) mobilization of capacities within families and among families to face the challenges of poverty; (b) greater awareness about the role of gender equity in promoting better access to human capital and other resources and opportunities; and (c) enhanced institutional capacity to meet economic needs of male and female beneficiaries. There is a chance, too, that the project could generate quantifiable benefits in terms of opportunities for women in particular to generate incomes as one of the possible outcomes of shifts in traditional gender roles. In addition, as part of the LIL's monitoring and evaluation system, the different approaches and activities incorporated into the project will be assessed including regarding costs and returns. 2. Financial [ ] Summarize issues below (e.g., cost recovery, tariff policies, financial controls and accountability) []To be defined (indicate how issues will be identified) [x] None PROFAM is a pilot project and cost recovery is not a project objective. However, fiscal sustainability is an important consideration in the design of this LIL as is testing the level of administrative costs for implementation. Although CNM has committed itself to promoting equal opportunities among men.and women and public policies with a gender perspective, at present, the current level of public expenditure on gender initiatives is low. The planned investments in the project, such as the development of informational materials, have low recurrent cost implications. - 10- CNM will monitor and assess the costs of Programa Equidad. In addition, the project will involve local communities and organizations in the financing and maintenance of subprojects under this program. For instance, successful proposals to the Programa Equidad will include a 20 percent minimum contribution on the part of the beneficiaries. 3. Technical Traditionally, social programs have addressed poor families through separate sectoral initiatives frequently treating the family members as individual clients of early childhood, primary or secondary education, nutrition, scholarship programs, education, HIV programs, etc. The proposed LIL will test the introduction of diverse mechanisms at different levels for operationalizing a comprehensive, integrated family approach in development projects. The LIL will carry out actions to promote changes in behavior in three levels and evaluate the results through participatory monitoring and evaluation. These instruments were identified to maximize effective actions in the short-run and provide a range of piloting from a communications strategy to a small grants program. The different levels include: (a) institutional - the strengthening of the capacity of the regional agencies of CNM to incorporate its gender equity mandate through seminars and workshops; (b) conimunity-basedpartnerships - support to capacity building and technical assistance for NGOs and CBOs and grants in the Programna Equidad; and (c) civic incentives - to transmit new ideas and successful experiences to a wide audience. 4. Institutional 4.1 Executing agencies: CNM has demonstrated capacity for project execution. Currently, CNM is involved in several different projects and programs with international financing. CNM is executing a $15.0 million loan from the Inter-American Development Bank (IDB) to improve the development, monitoring, and evaluation of public policies and programs, the National Program for Women (Programa Federal de la Mujer) through which five new provincial offices are being established. They are also executing (but not administering) the PHRD for Gender Technical Assistance Capacity Building Initiative, a project on gender in the health sector financed by the Economic Commission on Latin America and the Caribbean (Comision Econ6mica de Latina Americay el Caribe) and a project to strengthen communication strategies (United Nations Development Fund for Women, UNIFEM). 4.2 Project management: Overall, CNM has both the technical and administrative capacity to manage the PROFAM project. When necessary, consultants would be hired for specific tasks. CNM is an autonomous organization which seeks to decentralize its community interventions to the grassroots level, maintaining only the administrative functions and those responsibilities related to the articulation of social policy formulation at the central level. Both the IDB-financed project and the World Bank-supported PHRD have contributed to the institutional capacity of CNM. 4.3 Procurement issues: Procurement will be the responsibility of the PIU within CNM. The procurement assessment carried out during preparation indicated that the PIU, specifically the Administrative Chief, has experience and knowledge, although some limitations were identified in procurement procedures. For instance, little experience exists in community-based procurement, which represents the majority of the LIL's procurement activities and where procurement supervision and monitoring will be key for successful implementation of the subprojects. To minimize the risk related to the lack of procurement experience with World Bank projects, it was agreed that as part of the Action Plan, the Administrative Chief will enhance her knowledge with training on selection of consultants for World Bank projects. Due to the small amount of procurement required for the LIL, an experienced consultant will be retained for - 11 - procurement assistance, specifically for LIL activities, when required. In addition, an independent consultant will conduct audits on one out of every five subprojects annually. 4.4 Financial management issues: An assessment of the project's accounting system, internal controls, planning, budgeting, and financial reporting system was conducted during project preparation. The PIU satisfies the Bank's minimum financial management requirements (4B certification). Nevertheless, the project is not currently eligible for Project Management Report (PMR) based disbursements. It was agreed that traditional disbursement procedures would be used for a transition period of six months after project effectiveness. 5. Environmental Environmental category: C 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. No civil works will be financed under the project. Proposed subprojects to be financed under the Progrania Equidad will be relatively small in nature and are intended for capacity building and family strengthening activities. 5.2 What are the main features of the EMP and are they adequate? Not Applicable. 5.3 For Category A and B projects, timeline and status of EA Not Applicable. 5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed EMP? Describe mechanisms of consultation that were used and which groups were consulted? Not Applicable. 5.6 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? Not Applicable. 6. Social: 6.1 Summarize key social issues arising out of project objectives, and the project's planned social development outcomes. A Social Assessment was carried out during preparation with a desk review of relevant reports, fieldwork, and consultations with task managers, NGOs, and community-based groups. The key social issues in this LIL include the link between poverty and family organization, gender roles, violence, and social capital. The main findings of the Social Assessment indicate that different types of channels need to be used to promote change in gender-based social expectations, such as the media, education, families, and communities. The LIL will work through community and local level organizations to address issues that require changes in attitudes, such as substance abuse, family relations, violence, maternal health, and reproductive health. The project will act through community social capital and target both males and females. Family and Poverty. Although Argentina is a relatively rich country, it also has a high level of poverty, affecting about 30 percent of its population. In absolute terms, of the 32 million people living in urban areas in Argentina in 1998, about 9 million were living in poverty and about 2 million in extreme poverty. The poorest households in Argentina tend to be younger, have more children and have larger dependency ratios (see Table). Since poor families are larger and younger than average, children are more prone to be poor than adults. In 1998, around 45 percent of all children (aged 0-14) were living in poverty compared to 25 percent of adults. Only 13 percent of those 65 years old and older were found to be below the poverty line. Large family sizes are the result of much higher fertility rates among poor women, a factor that tends to perpetuate poverty. Though population growth in Argentina is relatively low, 1.3 percent per year, fertility rates are higher for the poor families. - 12 - Comrnarison of Indicators for Lower and Higher Income Families Income levels Average age of Average size of Fertility Rate household household Lower quintile 25 years 5.1 people 4.2 per 1,000 Upper quintile 41 years 3.1 people 1.3 per 1,000 Poor families face many obstacles to overcoming poverty. They live in poor housing areas, which often lack water and sanitation services, access to roads and other public amenities. Only about 25 percent of poor families receive any form of direct public assistance. Another problem is that children of poor families are more likely to drop out of school for various reasons, mainly the need to work. Poor families frequently suffer from bad health, lack of education, malnutrition and other factors such as violence. Unemployment has risen and the rates are higher among the poor and very poor than for the general population. In a recent survey among the urban poor, the lack of a steady job and the problems of violence and insecurity were considered the most important issues. This situation often leads to problems of alcohol and drug abuse, and an increase in domestic and community crime and violence. It also may lead to a shift in gender roles as more poor women join the labor force and sometimes earn more than their partners. This shift has been a source of tension within the family and it appears to be increasing. Youth also stand out as a particularly vulnerable population. Poor youth report a high incidence of drug and alcohol abuse and a general feeling of despair as they face a future characterized by insecurity, unemployment, and violence. Gender, fanmilies, and poverty. Within the family unit, one of the most important changes registered in recent decades is the changing role of women. Women, particularly poor women, have increasingly entered the labor force as a strategy to maintain household income. According to a recent survey,' women represent 39 percent of the labor force in Argentina. However, women entering the labor market usually are only employed part time, on a temporary basis or in conditions demanding long hours at low pay. Between 20 and 30 percent of women are employed in domestic service or in the informal sector. Gender bias prevails because on average, women earn only 71 percent of what their male counterparts earn in similar jobs. Differences are higher at professional levels where women's earnings are only 66 percent of men's and they have fewer opportunities to occupy managerial positions. In recent years, unemployment has particularly affected male workers with a higher impact on young uneducated men. Despite changes in the labor market, changes in the domestic roles within households have been slower. In Buenos Aires for instance, between 1980-1994, the proportion of families with only one income earner decreased from 68 to 52 percent while the families with two income earners increased from 23 to 38 percent in the same period. Nevertheless, the main burden of domestic chores still lies on women. Higher income women can hire domestic help, but poorer women have to reconcile their working hours with domestic work. According to a recent study,2 female-headed households face difficulties that increase the probability of remaining poor. Usually, these households have only one source of income and most of the resources are spent on food and services. The probability of children from these female- headed households being poor is 25 percent higher than in a household headed by a man, thus continuing a vicious cycle of poverty. Violence. Domestic violence mainly affects women and the majority is domestic workers. In 30 percent of the cases, unemployed men are responsible for violence, indicating that frustration and economic uncertainty spur violence. In addition, social patterns contribute to domestic violence such as aggressive models, "macho" attitudes, and lack of education as well as social tolerance towards violent behavior. ' Rodriguez et al, 1997 Encuesta Permanente de Hogares de 1,996 2 Geldstein Rosa, 1997. Mujeresjefas de hogar: familia, pobreza y gdnero. - 13 - Institutional and legal issues and gender. Argentina competes favorably in social indicators such as literacy, infant and maternal mortality, etc. However, there are some institutional and legal drawbacks affecting Argentinean families. The most important one is the lack of an official public program on family planning. While a new Reproductive Law was recently approved in the City of Buenos Aires, it has not been approved in all of the Provinces. Adolescents, the poor population and rural inhabitants are the most affected by the lack of access to family planning services and information. Teen-age pregnancy remains a problem in Argentina, particularly among girls with low levels of education. Social security coverage also seems to be gender biased due to lower female participation in the labor force, higher levels of dependency and greater participation of working women in the informal sector. Therefore, few women have pensions or other forms of social support and are more prone to be poor during old age. This situation is expected to change accordingly with changes in occupation patterns and the increase in the number of more educated women. Recent legislation intended to eliminate gender discrimination and the creation of institutions such as CNM and the Child and Family Council, as well as various public programs intended to support vulnerable populations and address poverty would help to reverse the above-mentioned situation. The PROFAM LIL fits within this new framework. 6.2 Participatory Approach: How are the key stakeholders participating in the project? From the initial identification of PROFAM and throughout project preparation, CNM has been carrying out an ongoing, open consultation process with potential beneficiaries in order to learn from existing experiences of community-based family interventions. The preparation team carried out a consultation process with community-based organizations and local governments working on issues related to the strengthening of families, reproductive health, violence, and education. Important lessons were drawn from this experience including targeted beneficiaries, eligibility, project activities, potential demand for Programa Equidad, costs of subprojects and appropriate institutional mechanisms. These lessons and experiences were incorporated into the project's design and Operations Manual, specifically about the implementation of Programa Equidad. 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? A principal objective of the project is to pilot and strengthen innovative approaches to family interventions by LGs and CBOs. A second objective is to promote the existing social capital within poor communities. Thus, by its nature, the project is dependent on the collaboration with civil society organizations. 6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? The LIL is designed to empower community organizations and create ownership for the project by giving full responsibility to the beneficiaries. As mentioned above through the Programa Equidad, PROFAM will finance initiatives that promote responsibility and participation of all beneficiaries from decision- making to execution to monitoring. In addition, Progrania Equidad includes a minimum beneficiary contribution of 20 percent. Technical assistance and training will be provided as necessary and priority will be given to subproject proposals that include a participatory approach and seek to improve gender equity. This learning experience will also help community networks to develop their own capacity to ensure sustainability. - 14 - 6.5 How will the project monitor performance in terms of social development outcomes? PROFAM is a social development project and the expected social development outcomes are directly linked to the overall project objectives. Refer to Section C.3, Monitoring and evaluation arrangements, for further details on proposed mechanisms. 7. Safeguard Policies: 7.1 Do any of the following safeguard policies apply to the project? Policy Applicability Environmental Assessment (OD 4.01) No Natural Habitats (OP/BP/GP 4.04) No Forestry (OP 4.36) No Pest Management (OP 4.09) No Cultural Property (OPN 11.03) No X Indigenous Peoples (OD 4.20) Yes Involuntary Resettlement (OP 4.30) No Safety of Dams (OP 4.37) No Projects on International Waterways (OP 7.50) No Projects in Disputed Areas (OP 7.60) No 7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. The Argentina Indigenous Community Development LIL focuses on strengthening social organization and culture of indigenous peoples and formulating local development plans within indigenous lands. Therefore, the PROFAM LIL will not specifically target indigenous peoples, but rather ensure coordination, where appropriate, between the two projects. F: Sustainability and Risks 1. Sustainability: This section is not to be completed in a LIL PAD. - 15 - 2. Critical Risks: (reflecting assumptions in the fourth column of Annex 1) From Outputs to Objective Lack of demand from LGs and CBOs for M Outreach and communication Programa Equidad. strategies included in project. CNM does not receive continued support from M Conduct a communication GOA for its focus on gender equity as an campaign and promote horizontal element of poverty reduction. exchange of positive experiences among networks and families. Counterpart funds are not made available in the S A condition of negotiations will be national budget. reserving the Bank and government financial resources in the 2001 Budget Law. Civil society organizations and local N Conduct educational campaigns and governments do not support the values of capacity building activities with PROFAM and of working in networks. critical stakeholder groups. From Components to Outputs Beneficiaries and CNM do not remain M Develop beneficiary ownership and committed to the conception of PROFAM as an ensure a participatory focus. innovative learning process. The distribution of grants may not be timely. M Clear design of operation of Programa Equidad to ensure an efficient and focused process with transparency and consensus. Overall Risk Rating M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk) 3. Possible Controversial Aspects The question of reproductive health and access to family planning information and materials, while not a direct objective of the project, may none-the-less be controversial depending on how the project's stance is perceived by groups who are not supportive of such measures. Moreover, changes of traditional gender roles and equity may be negatively perceived by some. The collaborative stance of the project and its goal of promoting best practices among existing NGOs will mitigate against these possible negative reactions. G: Main Loan Conditions 1. Effectiveness Condition: a. Presentation of the final version of the Operations Manual satisfactory to the Bank. 2. Other: -16- H: Readiness for Implementation [] 1. a) The engineering design documents for the first year's activities are complete and ready for the start of project implementation. [X] b) Not applicable. [X] 2. The procurement documents for the first six months' activities are complete and ready for the start of project implementation; and a framework has been established for agreement on standard bidding documents that will be used for ongoing procurement through the life of the LIL. [X] 3. The LIL's implementation plan has been appraised and found to be realistic and of satisfactory quality. [] 4. The following items are lacking and are discussed under loan conditions (Section G): 1: Compliance with Bank Policies [X] 1. This project complies with all applicable Bank policies. lvjv,i~N\LAJ / b/}A'>/ A ,v, Team Lea4er: Maria-Valeria Pena Team Leadert: Sandra Cesilini or D r: Ernesto May Sec r Director: John Redwood Country Director: Myrna Alexander - 17- Annex 1: Project Design Summary ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM Sector-related CAS Goal: Sector Indicators: Sector / Country Reports: (from Goal to Bank Mission) To promote human capital National economic data, Poverty alleviation development, gender equity Decrease in the living standard surveys prioritized by GOA and poverty alleviation proportion of families living below the poverty No major economic and Follow-on Development line. social crisis Objective: The well being of poor men and women will improve through support to gender equity and strengthening of families as comprehensive units. Project Development Outcome / Impact Project Reports: (from Objective to Goal) Objective: Indicators: Counterpart funds are To test and monitor a social As compared to a Questionnaires, field available and timely and capital approach to address baseline study: visits and participatory the GOA commitment to the vulnerability of the poor (a) improved awareness beneficiary assessments family strengthening and by targeting families as among beneficiary gender equity remains comprehensive units and families about the strong promoting gender equity importance of gender equity and cohesive No major economic or family practices as a social crisis means of reducing their vulnerability; (b) improved awareness among beneficiary families about children's emotional needs and how to respond to them; (c) decrease in domestic violence episodes among beneficiary families; (d) improved evidence of responsible parenthood among beneficiary families; (d) increase in the proportion of CBOs and LGs connected in civil society networks. - 18- Hierarchy of Objecves Key Performance M.trlg & .liAtion .__.__.__.__..__.__._ . ndicator_ Output from each Output Indicators: Project Reports: (from Outputs to Objective) component: Programa Equidad finds a Ia. Families' abilities to la. At least 100 Project completion report sustainable demand from function cohesively are subprojects are LGs and CBOs strengthened successfully Supervision reports implemented under CNM receives continued Equity Program by the support from the end of the project, government for its focus on according to indicators gender equity as an element included in the of poverty reduction Operational Manual lb. Community social lb. At least 30 Timely allocation of capital is expanded. networks of LGs and counterpart funds CBOs receive capacity on gender and A number of LGs and cohesion approaches CBOs share the values of PROFAM and of working 2. Gender awareness 2a. At least three in networks (parental responsibility, communication reproductive health and campaigns are carried decision making, respect for out by the end of the non traditional gender roles project among children and youth,) 2b. Ten "encuentros" of among critical stakeholder critical stakeholders are groups increases organized in different areas of the country to interchange positive experiences related to the objectives of PROFAM 2c. Three dissemination packages of communication materials linked to the project themes are defined and implemented each year. 3. CNM capacity for 3. Small training and communicating with local dissemination stakeholders and facilitating workshops between community driven CNM and its local initiatives is strengthened agencies are organized in all 24 provinces by the end of the project - 19 - Hierarchy ofWObjoit . ei Assumptions Project Components/Sub- Inputs: Project Reports: (from Components to components: (in millions) Outputs) 1. Family Strengthening: 1. US$4.27 a. Programa Equidad Supervision reports Project beneficiaries and Independent project CNM remain committed to b. Social Capital Promotion auditing PROFAM as an innovative, Ongoing participatory learning process 2. Gender and 2. US$1.21 beneficiary assessment Community Awareness: Timely distribution of a. Meetings and workshops grants b. Publications and videos c. Media Campaigns 3. Institutional 3. US$1.20 Development: a. Consultants b. Equipment c. External auditors d. Capacity building e. Monitoring and evaluation f. Administrative unit -20 - Annex 2: Project Description ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM The development objective of the Argentina Family Strengthening and Social Capital Promotion Project - PROFAM is to test and monitor a social capital approach to address the vulnerability of the poor by targeting families as comprehensive units and promoting gender equity. To achieve this objective, the project will support, monitor, and learn from initiatives promoted by local governments (LGs) and community-based organizations (CBOs), provide capacity building opportunities for networks, LGs, and CBOs, and promote the dissemination of knowledge and experiences related to community interventions supporting family development and equitable gender relations. The following three components have been designed to meet this objective. Project Component 1 - US$4.27 million Family Strengthening The strengthening of families through an approach, which recognizes them as agents rather than clients, is important to capture and support family capacity in order to work cohesively to face the numerous challenges of poverty. Recognizing the characteristics of families and communities, PROFAM will support different types of initiatives from community-based networks, LGs and CBOs that are intended to support families, promote more equitable gender relationships and expand community social capital. This component consists of the following sub-components: 1. Programa Equidad. The principal activity of PROFAM will be the implementation of the Programa Equidad, a demand-driven grant program for the development of small subprojects which promote and strengthen the capacity of families to actively function within their community. Targeting. The Programa Equidad will target poor communities in Argentina where domestic violence against women and children, teen pregnancy, juvenile delinquency, and substance and alcohol abuse are higher. It will also target poor areas where there is a lack of access to reproductive health information and options, including childcare. Eligibility. LGs, service NGOs, CBOs and other civil society groups are eligible to apply for the small grants program, although preference shall be given to those organizations that have proven targeting mechanisms, technical experience in related themes, and demonstrate a capacity and willingness to be innovative and to learn. Specific eligibility criteria for LGs and civil society organizations are detailed in the Operations Manual. Those groups that do not fulfill the eligibility criteria but have potential may receive technical assistance in order to refine and re-submit the proposals. Selection. CNM will ensure that the proposals meet the minimum technical criteria before their inclusion in the selection process. An evaluation and selection committee comprised of external specialists will be established to conduct the review and selection of grant proposals. The principal responsibilities of the committee will include: (a) carrying out a review of community subprojects in compliance with project guidelines and eligibility criteria as defined in the Operations Manual; and (b) assessing community participation in the identification, preparation and execution of subprojects and the quality of technical assistance. The technical committee will also be responsible for establishing the paranThters to monitor and evaluate subproject implementation. Criteria. Priority shall be given to proposals that seek to promote more equitable gender relationships within the family and/or the community. For those applicants that lack experience in the incorporation of a gender approach, but demonstrate the capacity to achieve the goals of PROFAM, technical assistance may be provided. The detailed eligibility criteria are included in the Operations Manual. Three key selection criteria are that proposals must: (a) include a gender perspective; (b) foster partnerships among LGs, CBOs and families in order to increase access, availability and utilization of resources; and (c) -21 - incorporate participatory decision-making processes with potential beneficiaries. Proposals will be developed in accordance with procedures and criteria outlined in the Operations Manual. Small grant requests may not exceed $30,000 and should include a minimum community contribution of 20 percent. Technical assistance for the preparation and implementation of the subprojects may be included in the proposal amount. Menu. Due to the demand-driven, innovative nature of Programa Equidad, the Operations Manual includes eligible themes, rather than specific activities. Some examples of subproject themes may include reproductive health, domestic violence, maternal/paternal responsibility, rights and citizenship, child welfare and educational support, culture and recreation, and environmental awareness. The project will not finance religious or political activities, or major civil works 2. Social Capital Promotion - Networks or associations of CBOs, NGOs, and in some cases, local governments, are often better situated than central or provincial governments to work with poor communities on the design, management and monitoring of community-based initiatives. In addition, these networks provide an integrated approach to addressing problems of poverty and familial relationships by promoting the collaboration and solidarity of these organizations. Often they are more aware of the need to avoid prolonging clientelistic relations among the poor. PROFAM will support the strengthening of existing networks, LGs, CBOs and other civil society organizations through capacity building and technical assistance, and in some instances the provision of basic equipment such as computers or printers. The selection criteria and procedures for such activities are detailed in the Operations Manual, however priority will be given to those networks that demonstrate innovative approaches to family strengthening, facilitate the participation of the family and promote more equitable gender relations. Capacity building activities for the organizations will: (a) encourage reciprocity among civil society and governmental organizations; (b) promote the articulation of an integrated strategic approach to facilitate their collaboration; (c) improve the participation of families and other stakeholders in the design, management and monitoring of community-based initiatives; and (d) strengthen the administrative capacity of such organizations. Project Component 2 - US$1.21 million Gender and Community Awareness The objective of this component is to promote awareness-raising and communication strategies at a micro-level that seek to directly impact the project target areas to further enhance government-civil society-community-family relationships, particularly related to reproductive health choices and decision making, parental responsibility, respect for non-traditional gender roles among youth and children, etc. Specifically, communication strategies will: (a) disseminate best practices on community interventions dedicated to family development and equitable gender relation; (b) promote an increased understanding about gender issues and the rights of children among critical stakeholder groups; (c) encourage the participation of families as protagonists in the definition of their own priorities and evaluation of social programs from which they benefit; and (d) increase awareness of benefits of working in alliances or partnership networks. Project Component 3 - US$1.20 million Institutional Development This component will build upon the existing project management capacity of the PIU within CNM as the entity responsible for the coordination and monitoring of the implementation of the project by providing technical assistance and capacity building for PIU staff and consultants. Specifically, this component will support: (a) consultants to support the technical and administrative implementation of the project; (b) capacity building for PIU staff and consultants; (c) the implementation of a monitoring and evaluation system, including the definition of the baseline and performance indicators; (d) consultants for the project audits; and (e) equipment (computers, printers, software etc) necessary for project implementation. - 22 - Annex 3: Estimated Project Costs ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM Prjc ost By GioeU~mf s$l~i Smliont 1. Family Strengthening Programa Equidad 3.03 0.00 3.03 Social Capital Promotion 0.87 0.16 1.03 Subtotal 3.90 0.16 4.06 2. Gender and Community Awareness 1.02 0.13 1.15 3. Institutional Development 1.05 0.11 1.16 Total Baseline Cost 5.97 0.41 6.38 a/ Physical Contingencies 0.26 0.02 0.28 Price Contingencies 0.00 0.01 0.01 Total Project Costs 6.23 0.44 6.67 Front-end fee 0.00 0.05 0.05 Total Financing Required 6.23 0.49 6.72 a/ total does not add due to rounding --ti - byCost .i- Catpnoryt - :;I -i, US $n-iHion US $mIlion- Goods 0.69 0.05 0.74 Consultant Services and Training 1.54 0.39 1.93 Subprojects 3.37 0.00 3.37 Operating Costs 0.63 0.00 0.63 Total Project Costs 6.23 0.44 6.67 Front-end fee 0.00 0.05 0.05 Total Financing Required 6.23 0.49 6.72 -23 - Annex 4: Social Assessment ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT-PROFAM 1. The social assessment (SA) conducted for the project was based on several reports on household, families, gender, and poverty available for Argentina, including the 1999 Poverty Assessment and a Gender Portfolio Review undertaken by the Gender Unit in LCSPR. It was also based on consultations with task managers, NGOs and community-based groups. The project design, including components, sub-components, activities, costs and key indicators, is compatible with the recommendations from the SA. 2. Poverty and family organization are intrinsically linked. Decisions on the allocation of time, finances, and use of resources and opportunities are made at the family level and they are based on the organization of gender and generational roles. Variations in gender roles, including segregated or interchangeable and balanced roles will affect reproductive pattems, acquisition of human capital, opportunities and timing of entrance in the labor market, and income earning potential. In Argentina, family size is the single most importantfamily characteristic correlated with per capita income and expenditure. An analysis of expenditure per capita in terms of a number of household characteristics demonstrates that only the number of household members and the completion of primary school by the household head were statistically significant, with a negative correlation between per capita expenditure and household size accounting for almost all the "explained" variance. A review of the Bank portfolio in Argentina suggests that attention to a family interaction framework and gender could improve the quality and development impact of the Bank's investments in the sub-region. 3. At the aggregate level, Argentina's relative achievements in reducing gender gaps and addressing gender- differentiated issues are noteworthy. In terms of gender, this country displays many characteristics of an industrialized nation: a gender balance in educational attainment, relatively low fertility levels and maternal mortality rates, and one of the lower gender gaps in labor force participation in Latin America. The average wage differential between men and women is not only among the lowest in the Region, but it compares very favorably to many industrialized nations, such as the United States, Canada, Switzerland and Britain where the differential is higher than Argentina's. 4. While the average fertility rate is low compared to other Latin America and the Caribbean (LAC) countries, rates vary widely across socioeconomic groups, with rural and marginal urban areas at a disadvantage in terms of access to services and information. The risk of maternal mortality increases with the number of pregnancies. Together with infant mortality, maternal mortality accounts for the majority of all premature deaths. Maternal mortality rates, again while comparatively low, range significantly in the country. The main reason for the high number of children among poor women is lack of access to contraception. However, women also show a lack of awareness regarding the linkage between multiple pregnancies, poverty, and their poor health status. Some women consulted during the SA, often understand either pregnancy or nursing as a "destiny." Women would sometimes remark that "religion forbids the use of contraception," a powerful argument in a very Catholic country. One woman interviewed in a shelter for battered women during the field work also suggested that when their wives are pregnant or nursing all the time, men are assured that they are able to "control" their wives and keep them at home. In other words, high fertility is a poverty issue that results from a very segregated pattern of gender roles and very often, it is linked to domestic violence. 5. Teenage pregnancy continues to be a problem in Argentina with higher rates of adolescent pregnancy observed among those girls with less formal education. Some studies also show that while fertility rates have decreased since 1980, the incidence of pregnancy increased moderately among girls between the ages of 10 and 14. Adolescent fertility rates also vary by region and by socioeconomic group. At one extreme, the Federal Capital (14.2 per 1000) exhibits adolescent fertility rates similar to European nations whereas jurisdictions such as Chabut, Formosa, Misiones, Rio Negro and Salta exhibit rates similar to other less developed Latin American countries (over 50 per 1000). 6. Pregnant teens are more likely live in poor households, and their children are more susceptible to the risk of low birth weight, neglect and more likely will dropout from schools and live in poverty than those of other women. A study of adolescent fertility conducted by Pantelides et al in Buenos Aires showed that adolescent girls and boys - 24 - have limited knowledge of how their reproductive systems function. The study also showed that among those interviewed, 40 percent were not using contraceptive devices and 25 percent of these (all female) did not use contraception because they wished to become pregnant. The study found that 94 percent of males and 77 percent of females interviewed were sexually active, and among those, 15 and 41 percent, respectively, had experienced a pregnancy. In the majority of the cases, girls had dropped out of school before becoming pregnant. Other factors that put girls at risk of early pregnancy included: (a) having a mother or father who had his/her first child before the age of 20; (b) having a sibling who had been an adolescent mother; and (c) having had a parent, particularly the mother, absent from the home. 7. The study found that 10 to 14 year olds were more likely to become pregnant by men over the age of 30, in contrast with older adolescent groups, where it is rare that fathers are older than 30. A United Nations Development Fund (UNDP) report ( Violencia de Genero) indicates that in absolute terms, of the 700,000 annual births, about 100,000 mothers are less than twenty years old. Evidence also shows that precocious pregnancies are more frequent among those with less schooling or living in more precarious socioeconomic situation. Fathers of babies born from women between the ages of 9 and 13 are on average ten years older than the mothers.3 Information reported by UNDP also shows that in 1997, in some municipalities, there was a lack of paternal responsibility in half of all children born that year. The lack of information and access has resulted in illegal abortions - the third cause of maternal mortality in the country. 8. Among the better-educated in Argentina, gender differences in salary levels and advancement in the labor force persist. Moreover, while education has brought opportunities to women in the labor force, their contributions are perceived as supplemental or secondary to men's. Domestic work continues to be for the most part a woman's responsibility. Moreover, among the poor, responsibilities for housework and childcare constrain the potential for women to work outside of their homes. Married women generally exhibit low labor force participation rates. Among the poor, boys are expected to work starting very early in life, thus severely hindering their educational attainment and future income, leading to lifelong frustration. 9. For adult men, despite continued economic growth, high unemployment is an emerging problem, which has led to high incidences of depression, substance abuse, and violence among men. This appears to be due to social norms and systems governing male roles, the stigma men face when they are unable to fulfill their primary role as family provider, and the fact that male roles tend to be narrowly defined. Substance abuse and alcoholism, particularly among men, are important worries for their families. This is a factor in violence among youngsters and domestic violence against women and children, and it is an obstacle to resources and income opportunities. Domestic violence and street violence are commonly reported and are rapidly becoming one of the most important items on the agenda of local governments and NGOs. 10. Research conducted by the World Bank demonstrates that a community with high levels of social capital is more likely to organize itself, define, and pursue common goals. Moreover, social capital is an important asset in any ongoing program or project requiring collective action, as in the case of PROFAM. The 2000 Social Capital Survey in Argentina indicates that the diversity and frequency of networking in the lowest income quintile is lower than in the highest. For example, among those living in the poorest quintile, only 32.8 percent socialize with friends in contrast with almost the double in the highest quintile (59.5 percent). Whereas 58.4 percent of residents in the highest quintile households affirm they participate in activities with their families, this is true for only 43 percent of residents in the poorest quintile households. On the other hand, among the poor that participate in any association, 33 percent participate in philanthropic organizations and 48.8 percent in religious organizations (48.8 percent) as compared to those in the highest income quintile (33.8 percent and 23.7 percent respectively). H1. These results indicate that generosity might be a characteristic of the poor. There is a need for actions that mobilize and expand this generous characteristic of their social capital by: (a) supporting civil society organizations which are community based and able to enrich family and community life; and (b) supporting actions that bridge gaps between poor families and community and service organizations. PROFAM will provide support to both 3 Aldo Isuani-Daniel Filmus (1998). Los Retos de la Salud Reproductive. La Argentina Que Viene: anatisis y propuestas para unca sociedad en transici6n. CEDES: Buenos Aires - 25 - actions, testing the hypothesis that by promoting a more cohesive and less segregated family life, there will be a positive impact on the ability of families to face challenges posed by poverty. 12. Strategic recommendations. First, the LIL should act upon traditionally held gender roles and expectations so that women and men can take advantage of the newly created opportunities, particularly less crowded households and more schooling. Different channels need to be used to promote change in gender-based social expectations, such as the media, education, families, and communities. PROFAM has defined a specific component to be financed under the loan. Second, to address this, the LIL should act through community and local level organizations. Decentralized mechanisms and community-based organizations have comparatively more advantages than the central government to address issues identified in this report that require sustainable changes in attitudes, such as substance abuse, family disintegration, domestic violence, violence among young men, maternal health, teenage pregnancy, or reproductive health. PROFAM will act through community social capital and will finance specific activities. Third, it is important that the LIL target males as well as females because gender is a relational category. PROFAM will incorporate this criteria in the Operations Manual for the Programa Equidad. - 26 - Annex 5: Procurement and Disbursement Arrangements ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM Procurement A. General Procurement of goods financed by the Bank under the project would be carried out in accordance with the Guidelines, Procurement under IBRD Loans and IDA Credits, dated January 1995 and revised in January and August 1996, September 1997 and January 1999. Consultant services will be procured in accordance with the Guidelines: Selection and Employment of Consultants by World Bank Borrowers dated January 1997 and revised in September 1997 and January 1999, and the provisions stipulated in the Loan Agreement. No civil works or recurrent costs will be financed under the proposed LIL. Procurement methods: The methods to be used for procurement are described below and the estimated amounts for each method are summarized in Table A. The threshold contract values for the use of each method are established in Table B. B. Procurement Responsibilities and Capacity Procurement activities for the Gender and Community Awareness and Institutional Development components will be carried out by the Project Implementing Unit (PIU) of the National Council of Women (Consejo Nacional de la Mujer, CNM). This unit will also coordinate and supervise procurement actions for the subprojects where procurement activities will be carried out directly by the beneficiaries. An assessment of the capacity of CNM was carried out before appraisal to review the organizational structure of the PIU, identify weaknesses and risk factors, and propose specific actions to be addressed before effectiveness. The procurement assessment indicated that the PIU, specifically the Administrative Chief, has experience and knowledge, although some limitations were identified in procurement procedures. For instance, limited experience exists in community-based procurement, which represents the majority of the LIL's procurement activities and where procurement supervision and monitoring will be key for successfully implementing the subprojects. To minimize the risk related to the lack of procurement experience with World Bank projects, it was agreed that as part of the Action Plan, the Administrative Chief will enhance her knowledge with training on selection of consultants for World Bank projects. Due to the small amount of procurement required for the LIL, an experienced consultant will be retained for procurement assistance, specifically for LIL activities, when required. In addition, an independent consultant will conduct audits on one out of every five subprojects on a yearly basis. C. Procurement Arrangements 1. Procurement of Works No procurement of works is anticipated under the project. 2. Procurement of Goods Goods to be procured under the project include computers, printers, videos, publications, and reproduction of promotional materials. Due to the nature and small amounts required, grouping of these purchases would not be feasible. Consequently, no foreign or domestic suppliers would be interested for ICB or NCB procedures. If required, contracts above $50,000 should be procured under NCB procedures. The actual procurement methods would be determined on the basis of the annual CNM procurement plans. Contracts estimated to cost less than US$50,000 per contract, up to an aggregate amount of US$530,000 equivalent may be procured using shopping procedures based on a model request for quotations satisfactory to the Bank. - 27 - 3. Consultant Services and Training Consulting services include technical assistance and provision of training. Most of these services are expected to be carried out by individual consultants. Training and promotion activities would include the rental of facilities, materials, meals, and transportation expenses for participants. Firms Consultant services carried out by a firm will be hired using QCBS procedures. Individuals The project would finance individual consultants for the strengthening of CNM's PIU, i.e. staff for administration of the project, and training for beneficiaries in organization and preparation of community initiatives. Short-term consultants will carry out the majority of these assignments. For the administration of the project, one long-term assignment has been identified and would be selected in accordance with the provisions of paragraphs 5.1 through 5.3 of the Consultant Guidelines taking into consideration the total cost of the contract for the long-term duration of the assignment. This contract would include clauses on periodic evaluation and termination. 4. Subprojects The project includes an estimated amount of US$3.37 million equivalent for subprojects. These subprojects consist of grants to finance initiatives proposed by municipalities and civil society associations on a competitive basis. Subprojects are not predefined. Typical subprojects to be considered may include: (a) domestic violence interventions where children are supported and both men and women are; (b) community-based "host" families where children from dysfunctional and violent parents are placed temporarily; (c) after-school programs that support children with learning disabilities by involving both parents; and (d) local government-sponsored health centers that offers an after-school program to facilitate discussion groups among men and women about reproductive health roles and responsibilities and responsible parenthood; etc. The financing of individual subprojects can not exceed US$30,000. The Operations Manual describes in detail the selection procedure and eligibility criteria and conditions applicable to the subprojects. Beneficiaries have to contribute in cash or in kind with 20% of the total amount of the subproject. An individual subproject could consist of goods, works or services, or any combination of the three. Procurement under subprojects is done by the beneficiaries and to the extent possible would follow shopping procedures. For small purchases of consumption items and off-the-shelf goods direct contracting may be considered. Subprojects will be subject to post-review. 5. Prior Review The prior review thresholds are summarized in Table B. Bank's prior review will be required for a) any NCB; b) the first three contracts under national shopping procedures; c) contracts with individuals consultants above $50,000, and for consultant firms above $100,000. The proposed thresholds for prior review are the standard thresholds used in Argentina. In addition to the prior review of individual procurement actions, an Annual Operating Plan and budget will be reviewed and approved by the Bank. 6. Procurement Supervision Procurement Plan. CNM has prepared an indicative plan for the 3-year period of project implementation, which provides the basis for the aggregate amounts for the procurement methods (per Table A). Annual procurement plans will be submitted as part of the Annual Operating Plan. In addition to the prior review, it is recommended that two full supervision mission visit the field to carry out post review of procurement actions six months after Project initiation and yearly thereafter. Such post-review field analysis should cover a sample of not less than 20 percent of contracts signed and one out of five subprojects. -28 - Procurement methods (Table A) Table A: Project Costs by Procurement Arrangements (US$ million equivalent) Procurement Method 'ExpenditureCategQry TotalCost NC8-- Other at N_._F_.- 1. Goods b/ 0.53 0.21 0.74 (0.40) (0.40) 2. Consultant Services and Training 1.90 0.03 1.93 -- (1.90) -- (1.90) 3. Subprojects 3.37 3.37 (2.65) (2.70) 4. Operating Costs 0.63c 0.63 5. Front-end Fee 0.05 0.05 (0.05) (0.05) Total 5.85 0.87 6.72d (5.00) (5.05) Figures in parenthesis are the amounts to be financed by the Bank loan. All costs include contingencies. Note: N.B.F. = Not Bank-financed a/ Includes goods to be procured through national shopping (US$0.53 m.), consulting services (US$1.04 m), training (US$0.9 m), and subprojects (US$3.37 m). b/ Contracts for goods estimated to cost more than US$50,000 per contract should be carried out under NCB. Procedures. During preparation, no contracts above US$50,000 were planned and therefore not costed. c/ Includes operating costs related to managing the project. d/ Total amount does not add due to rounding. - 29 - Table Al: Consultant Selection Arrangements (optional) (in US$ million equivalent) X~~~~ A QCBS QBS LCS CQ Other A. Individuals 1.00 1.00 (1.00) (1.00) B. Firms 0.02 0.02 (0.02) (0.02) Total 0.02 1.00 1.02 .______ ______ ______ _ _(0.02) _ (1.00) (1.02) Note: QCBS = Quality- and Cost-Based Selection CQ = Selection Based on Consultants' Qualifications Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial Practices, etc. N.B.F. = Not Bank-financed. Figures in parenthesis are the amounts to be financed by the Bank loan. Table A2: Procurement Plan (in US $million) im E$g1 Contracts,' !A 0..iFM "I S 2 Ag , M Equipment 1 0.05 X Promotional Material N/A 0.69 X X X Individual Consultants -15 1.00 X X X Consultant Firms -1 0.02 X X X Training N/A 0.91 Subprojects -140 3.37 X X X Operating Costs N/A 0.63 X X X TOTAL 6.67 Front-end Fee 0.05 TOTAL 6.72 -30 - Prior Review Thresholds (Table B) Table B: Thresholds for Procurement Methods and Prior Review (Th Ihod) -rcureetPiRve Expenditure Categoryr i-; -i thousXad) MehdfS iio 1. Goods >50,000 NCB All if any <50,000 Local Shopping First three contracts 2. Services (a) Individual >50,000 CQ All <50,000 CQ TORs-CV (b) Firms >100,000 QCBS All <100,000 QCBS TOR/short list 3. Subprojects <30,000 N/A None Total value of contracts subject to prior review: 800,000 Overall Procurement Risk Assessment: High Frequency of procurement supervision missions proposed: Every six months. -31 - Disbursement Allocation of loan proceeds (Table C) Disbursements will be made against the categories of expenditures indicated in Table C. The proceeds of the proposed LIL are expected to be disbursed over a period of three years. The Bank will not finance any recurrent costs. The project is expected to be completed by December 31, 2004 and the Loan Closing Date would be June 30, 2005. Financial Management/Disbursement Procedures A Bank-certified Financial Management Specialist carried out an assessment of CNM during project preparation. CNM will be responsible for all project implementation activities, including accounting, disbursement, monitoring and evaluation, coordination, and supervision. CNM will implement the project through the existing Project Implementation Unit (PIU) comprised of both technical and administrative specialists and managed by an Executive Coordinator. Short- term consultants will be hired to strengthen the PIU for special tasks, when necessary. Based on the financial management assessment, CNM is not eligible for Project Management Report-based disbursements. It was agreed that traditional disbursement procedures would be used for a transition period of six months after project effectiveness. These arrangements will be reflected in the Operations Manual of the project. Disbursements will be made on the basis of full documentation for all expenditures made under contracts requiring prior review by the Bank, and contracts whose value will be raised above the prior review limits as a result of amendments. For all other expenditures, disbursements will be made against SOEs: (a) goods costing less than $50,000; (b) contracts for consulting firms, including NGOs costing less than $100,000; (c) contracts for individual consultants costing less than $50,000; (d) all training expenditures; and (e) all Programa Equidad grant expenditures Special Account Payments from the loan proceeds will be administered by the PIU from a Special Account. The Special Account will be maintained in US dollars in a commercial bank selected by the Borrower and acceptable to the World Bank. The authorized allocation, sufficient for about four months of eligible expenditures, would be US$500,000. The Special Account will be managed by the PIU which will be responsible for preparing disbursement requests. These requests would be submitted monthly or when the Special Account has been drawn down by a third of the initial deposit, whichever occurs first. The Special Account will be audited annually by independent auditors acceptable to the Bank. Retroactive Financing. Retroactive financing of up to US$ 500,000 (10% of the Loan amount) will be allowed for eligible expenditures incurred not earlier than October 23, 2000. Accounting, Financial Reporting, and Auditing Arrangements The project will maintain project accounts in accordance with sound accounting practices acceptable to the Bank, as required by the Financial Accounting, Reporting and Auditing Handbook (FARAH). CNM will have the records and accounts of the project for each fiscal year audited, with a separate opinion with respect to the Statements of Expenditures and the Special Account, by independent and qualified auditors acceptable to the Bank. A national auditor will audit all project operations (on an annual basis), as described in the Operations Manual. In addition, a private auditing firm will be contracted to assess management capacity of a sample of beneficiary organizations. Project expenditures will be recorded in such a way that all related sources of funds and types of expenditures are clearly identified. CNM will (a) establish a consistent financial, accounting and reporting system for the project and (b) maintain all required information and supporting documentation corresponding to project implementation. The requirements for accounting, financial reporting, and auditing are described in detail in the Operations Manual. - 32 - Table C: Allocation of Loan Proceeds (in US$ thousands) Expenditure Category Amount in US$'0 |- Finaneing Percentage Goods 380,000 100% Foreign _ _______________________ 50% Local Consultant Services and Training 1,300,000 100% Subprojects 2,570,000 100% of CNM's contribution Project Preparation Facility 500,000 100% Front-end Fee 50,000 100% Unallocated 200,000 Total 5,000,000 - 33 - Annex 6: Project Processing Budget and Schedule ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM Time taken to prepare the project (months) 3 First Bank mission (Identification) 06/25/2000 06/25/2000 Appraisal mission departure 09/18/2000 10/16/2000 Negotiations 12/04/2000 10/5/2001 Planned Date of Effectiveness 01/01/2001 Prepared by: National Council of Women (CNM) Preparation assistance: PHRD and PPF Bank staff who worked on the project included: Maria-Valeria Pena, Co-Task Manager Senior Social Scientist, LCSEO Sandra Cesilini, Co-Task Manager Social Development Specialist, LCC7C Mariana Montiel Senior Counsel, LEGLA Maria Elena Castro Senior Social Scientist, LCSEO Teresa Roncal Procurement Analyst, LCSES Lee Anne Adams Operations Analyst, LCSEO Susana Cirigliano Financial Management Specialist, LCOAA Andres MacGaul Country Procurement Specialist, LCOPR Vanessa Andreani Team Assistant, LCC7C Luis Constantino Peer Reviewer, SASRD Marc Alexander Peer Reviewer, ECCSD Maria Madalena dos Santos Peer Reviewer, LCSHE - 34 - Annex 7: Documents in the Project File ARGENTINA: FAMILY STRENGTHENING AND SOCIAL CAPITAL PROMOTION PROJECT - PROFAM A. Project Implementation Plan Operations Manual Project Implementation Plan B. Bank Staff Assessments Procurement Assessment Financial Assessment C. Other Comisi6n Nacional de la Mujer. Informe de Avances de Ejecuci6n. 8 de marzo, 1999. Comisi6n Nacional de la Mujer. Informe Nacional sobre el Grado de Avance de la Plataforma de Acci6n: Pekin+5. M6dulo 1: La Mujery la Pobreza, 1999. Comisi6n Nacional de la Mujer. Memoria del Taller de Andlisis de Genero y Politcas Putblicas. 29 y 30 de abril, 1997. De Silva, Samantha. Community-based Contracting: A Review of Stakeholder Experience. The World Bank: Washington, DC. January 2000. Gender and the Argentinean Economy, Studies on Gender in Education, Labor Markets, Microenterprise, and Land. LCSPR. Poor People in a Rich Country. Reporte del Proyecto de Fortalecimiento Institucional en Genero. 15 de noviembre, 1999. Secretaria del Trabajo y Previsi6n Social. Memoria del Seminario Nacional Tripartito para el analisis del Plan de Accion - Mas y mejores empleos para las mujeres en Mexico. Octubre 1998. *Including electronic files. -35 - Annex 8 CAS Annex B8 (IFC) for Argentina Argentina Statement of IFC's Held and Disbursed Portfolio As of 7/31/2001 (In US Dollars Millions) Held Disbursed FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic 2000 ASF 20 0 0 0 0 0 0 0 1998 AUTCL 5.22 0 0 0 5.22 0 0 0 1994 Aceiteta Chabas 0 3.1 0 0 0 3.1 0 0 1994 Aceitera General 5 6.9 0 0 5 6.9 0 0 1960/95/97/99 Acindar 48.61 0 0 0 48.61 0 0 0 1994/95/96 Aguas 0 0 0 0 0 0 0 0 1977/84/86/88/94/96 Alpargatas 10 0 0 40.5 10 0 0 40.5 1999 American Plast 9 0 0 0 9 0 0 0 1993 Arg Equity 1nv. 0 2.84 0 0 0 2.84 0 0 2000 Argentina SMMC 50 12.5 0 0 0 12.5 0 0 1989/91/96 BBV Bco. Frances 1.27 0 0 0 1.27 0 0 0 1994/99 BGN 0 0 33 0 0 0 33 0 2001 BSFE 20 0 0 0 3.3 0 0 0 1996/9S Banco Galicia 0 0 0 45 0 0 0 45 1996 Bansud 2.64 0 0 0 2.64 0 0 0 2000 Bco Hipotecario 25 0 0 102.5 25 0 0 102.5 1996 Brahina - ARG 5 0 8.5 9.9 5 0 8.5 9.9 1997 Bunge-Ceval 11.79 0 5 0 11.79 0 5 0 1996 CAPSA 7.64 0 5 21 7.64 0 5 21 1999 CCI 0 20 20 0 0 20 6 0 1995 CEPA 6.67 0 3 1.2 6.67 0 3 1.2 2000 Cefas 10 0 5 0 6 0 5 0 1999 Correo Argentino 63 6.82 5.18 0 63 6.82 5.18 0 1999 DI TELLA 9 0 0 0 0 0 0 0 1994/95 EDENOR 0 0 0 0 0 0 0 0 1998 F.V. S.A. 9.75 0 4 0 9.75 0 4 0 1998 FAID 0 2.75 0 0 0 2.75 0 0 2000 FAPLAC 10 0 5 0 10 0 5 0 1992 FEPSA 1.65 0 2 0 1.65 0 2 0 1997 FRIAR 10 0 2.5 7 10 0 2.5 7 1996 Grunbaum 6 0 2 3.33 6 0 2 3.33 1995/97 HSBC Argentina 28 0 0 0 28 0 0 0 1998 Hospital Privado 9.6 0 0 0 7.5 0 0 0 1992 Huantraico 0 10 0 0 0 0 0 0 1995/97 Kleppe/Caldero 6 0 0 0 6 0 0 0 1996 MBA 0 0.16 0 0 0 0.16 0 0 1992/93/96 Malteria Pampa 2.5 0 1 0 2.5 0 1 0 0/97 Milkaut 6.25 0 10 2 6.25 0 10 2 1978/81/86/87/91/93/96/99 Minetti 30 0 14 100 30 0 14 100 1993/94 Molinos 0 1.24 0 0 0 1.24 0 0 1995 Nahuelsat 12.5 5 0 0 12.5 5 0 0 1996/99 Neuquen Basin 0 5 0 0 0 0 0 0 1993 Nuevo Central 1.88 3 0 1 25 1.88 3 0 1.25 1992 OleaginosaOeste 0.76 0 1.25 0.31 0.76 0 1.25 0.31 1992/95 PAE - Argentine 5.45 0 0 10.91 5.45 0 0 10.91 1998 Patagonia 3.5 0 1 0 3.5 0 1 0 1998 Patagonia Fund 0 19.97 0 0 0 7.5 0 0 1996 Pecom 9.09 0 0 9 9.09 0 0 9 1990/94 Petroken 7.95 0 0 1.14 7.95 0 0 1.14 1994 Quilmes 5.57 0 0 0 5.57 0 0 0 1992 Rioplatense 5.33 1 0 1.67 5.33 1 0 1.67 1999 S.A. San Miguel 8.24 0 0 0 8.24 0 0 0 1995 SIDECO 0 15 0 0 0 15 0 0 1995 SanCor 10 0 20 3 10 0 20 3 1995 Socma 6.26 0 0 15 6.26 0 0 15 1997/98 Suquia 35 0 0 25 35 0 0 25 1997 T61 8.89 0 5 22.5 8.89 0 5 22.5 1987/89/90/96/97 Terminal 6 8.89 0 0 9.75 8.89 0 0 9.75 1995 Terminales Port. 5.5 0 0 0 5.5 0 0 0 1995/00 Tower Fund 0 5 0 0 0 3.44 0 0 1995 Tower Fund Mgr 0 0.14 0 0 0 0.14 0 0 1996 Transconor 21.23 0 18.5 166.17 21.23 0 18.5 166.17 2001 USAL 10 0 0 0 4 0 0 0 1997 Vicentin 19.38 0 0 4 19.38 0 0 4 - 36 - 1993 Yacylec 4.4 5.04 0 1.6 4.4 5.04 0 1.6 1996 Zanon 17.67 0 0 0 17.67 0 0 0 Total Portfolio: 637.08 125.46 170.93 603.73 529.28 96.43 156.93 603.73 Approvals Pending Commitment Loan Equity Quasi Partic 1999 American Plast 0 350 0 0 2000 ALEF 25000 0 0 150000 2000 Hipotecario USCP 25000 0 0 0 2000 Argentina SMMC 50000 37500 0 450000 2001 Gasnor 20000 0 0 20000 2001 Edenor SME 20000 0 0 0 2001 Eki 9500 0 2500 0 2001 ITBA 7000 0 0 0 Total Pending Commitment: 156500 37850 2500 620000 -37- CAS Annex Bt - Argentina Status of Bank Group Operafions (Operations Portfolio) As Of Date tI)e12ta Closed Projecta 76 IBRDIDA- Totl Disbursed (Adte) 2,408.30 olfwN.h has been re-aid 290.91 Total Disbursed (Closed) 12.493.40 of which hes boen repaid 5,333.40 Total Di.bursed (AcW. . Closed) 14,901.69 of which hes boon rerpid 5,624.33 Total Undisbu.ned (Atve) 2,060.07 Total Undslbursed (Closed) 12.14 Total Undsbr-d (Aetv. . Closed) 2,072.21 Active Prriects Diffeence Between Last PSR Expected and Actual Supervision Rating Onainal Amount in US$ Millions Disbursements s Project ID Project Name Develooent lmolermentation Fiscal Year IBRD IDA GRANT Cancel. Undisb. Or4g. Frm Revd P039787 AR BIODIVERSITY CONSE S S 1998 10.1 8.2 0.6 P044447 AR Calamarca Provinaal Rt S S 2001 70 44.3 P068344 AR Cordoba PRL5 S S 2001 303 200 P057473 AR INDIGENOUS COMMUI S S 2001 5 5 0.3 P050713 AR MODEL COURT DEV. S S 1998 5 3.5 3.5 P046821 AR PENSION TA S S 1997 20 5.9 5.9 P006018 AR PROV DEVTrII S HS 1995 225 39.1 6.6 P037049 ARPUB.INV.STRENGTHGS S 1996 16 5.5 5.8 11.3 P073591 AR SAL 1 2002 400 200 P055461 AR SOC&FISC NTL ID SYE HS S 1999 10 4.7 4.7 P069913 AR Santa Fe Provincal Refr # 2002 330 176.7 P057449 AR State Modemization S S 1999 30.3 25.2 25.2 P057459 AR Sustainable Fishenes M S S 2001 5 5 0 P064614 AR- Second Secondary Edi S S 2001 57 56.4 -0.6 P043418 AR-AIDSANDSTDCONTFS S 1997 15 2.2 2.2 P03388 AR-HEALTH INSURANCE IS U 2000 4.9 4.9 3.6 P034091 AR-HIGHER ED. REFORMS S 1996 165 57.6 57.6 10.3 P006059 AR-MATERNAL & CHILD H S S 1997 100 49.7 14.7 P006030 AR-PROV. HEALTH SECT(S S 1996 101.4 14.3 10.6 24.9 P055482 AR-PUB. HLTH. SURV. & I S S 2000 52.5 47.7 25.6 P006057 AR-SECONDARY ED 2 S S 1996 115.5 41.4 41.4 P050714 AR-SECONDARY EDUCAIS HS 1998 119 11.8 11.8 P049269 AR-SOCIAL PROTECTION S S 1998 284 19.9 19.9 P006058 AR-SOCIAL PROTECTION S S 1999 90.8 65.2 29.5 P039584 B.A.URB.TSP U U 1997 200 125.9 95.9 2.9 P055935 EL NINO EMERGENCY FL S S 1998 42 23.1 23.1 23.1 P006052 FLOOD PROTECTION S S 1997 200 138.8 127.8 10608 P006040 FORESTRY/DV S S 1996 16 6 3 4.9 P006060 MUNIC DEVT II HS HS 1995 210 2.9 49.6 -3 P040808 N.FOREST/PROTC S S 1997 19.5 11.7 1 P052590 NAT HWtY REHAB&MAINT S S 1998 450 161 2 124.7 P006050 POLLUTION MGT. U U 1998 18 16.8 13.1 6.7 P006010 PROVAGDEVTI S U 1997 125 110.7 54.9 26.4 P005980 PROV ROADS S S 1997 300 222.9 193.9 P005920 REDUCTION OF OZONE C S S 1997 25 11.2 -10.5 a. Inlended disbursements to date minus actual disbursements to date as projected at appraisal. P006043 RENEWENERGY R.MKTS S S 1999 30 28.4 8.5 P045048 RENEWENERGY R MKTS S 1999 9.2 8.6 2.7 P005968 SEGBAV U U 1987 276 10,5 17.2 27.7 2.9 P006041 SMALL FARMER DV S S 1998 75 38.2 30.4 30.4 P006046 WATER SCTR RFRM S U 1999 30 27 19.5 Overall result Result 4515.8 44.3 33 2 2088.1 650 209.5 aed a Intended disbursements to date minus actual disbursern ents to date as projected at appraisal. Annex ) Argentina PRICES and GOVERNMENT FINANCE 1980 1990 1999 2000 Inflation Domestic prices(% (% change) 6 Consumer prices 100.8 2,314 0 -1.2 -0.8 1 4 Implicit GDP deflator 90.8 2,076.8 -1 9 1.1 2_ _ Government finance (% of GDP, includes current grants) -2 Current revenue 8.1 14.4 19.7 19.7 4 Current budget balance 3.1 -1.5 -1.5 15 GDP deflator -OCPI Overall surplus/deficit -2.5 -2.5 -2.6 -2.4 TRADE (US$ millions) 1980 1990 1999 2000 Export and import levels (US$ mill.i Total exports (fob) . 12,488 23,315 26,244 40,000 Food . 1,374 2,063 2,322 M eat 873 829 933 30,000 Manufactures .. 3,364 6,952 7,825 Total imports (cif). 4,197 25,538 25,157 2,5 Food.. .... Fuel and energy 423 730 719 2 Capital goods .. 1,338 11,902 11,724 64 05 66 97 08 66 00 Export price index (1995=100) 80 88 Import price index (1995=100) 85 83 O Exports F Imports Terms of trade (1995=100) 94 106 BALANCE of PAYMENTS 1980 1990 1999 2000 CurrentaccountbalancetoGDP(%) (hiss mrllions) Exports of goods and services 9,893 14,727 27,836 31,005 Imports of goods and services 13,081 6,954 32,687 32,685 1 Resource balance -3,188 7,773 -4,851 -1,679 Net income -1,609 -6,203 -7,473 -7,517 Net current transfers -101 71 379 287 -3 Current account balance -4,898 1,641 -11,945 -8,909 4 Financing items (net) 6,776 1,352 13,146 8,470 s Changes in net reserves -1,878 -2,993 -1,201 439 -6 - Memo: 1 Reserves including gold (US$ millions) . 10,814 27,831 26,465 Conversion rate (DEC, local/US5) 4.99E-08 0.5 1.0 1.0 EXTERNAL DEBT and RESOURCE FLOWS 1980 1990 1999 2000 (US$ millions) Composition of 2000 debt (USS mill.) Total debt outstanding and disbursed 27,157 62,232 145,994 146,395 IBRD 404 2,609 8,596 8,789 A 8,789 IDA ° ° ° ° G: 31,545 C: 5,056 Total debt service 4,182 6,158 27,900 26,500 D: 11,633 IBRD 71 414 982 1,239 IDA 0 0 0 0 E ,9 Composition of net resource flows . ........-. .... Official grants 2 21 6 6 ..... .. Official creditors 58 456 1,538 1,957 Private creditors 6,038 -974 3,478 -4,204 Foreign direct investment 678 1,836 8,236 10,696 Portfolio equity 0 13 -112 15 F: 85,073 World Bank program Commitments 27 0 132 441 A-IBRD E - Bilateral Disbursements 71 405 1,573 1,020 8 -IDA D-Othermultilateral F-Private Principal repayments 34 233 445 538 C - IMF G- Short-term Net flows 37 172 1,128 482 1 1 Interest payments 37 182 537 701 Net transfers 0 -10 591 -219 Development Economics 9/13/01 -40 - IBRD 293A8 'O.7° 60' f 50, -2 BLIIA ! 20O- 0~~~ ? 0 L I,1 } 02 i \.sPARAGUAY , ,j .,~~~~de Ju@,,juyOr,.,, ;>ftu - B R A Z I L -- -]r7~ \ . . . - . 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