Project Restructuring – Key Issues & Actions so far ICDS System Strengthening & Nutrition Improvement Project (ISSNIP) (Credit # 5150-IN) 4th Implementation Support Mission 2-13 February 2015 Project Restructuring – Key Issues & Actions so far Central Project Management Unit Ministry of Women and Child Development Government of India www.wcd.nic.in/issnip.htm

Background After 3rd ISM (held during 19 Aug-3 Sept 2014), the World Bank Country Director in his letter to Secretary (WCD) suggested re-programming of ISSNIP in view of large amount of unspent balances (about 99%) as on date and with about 13 months remaining in Phase 1. This is due to the fact that the project activities began only recently, after about 18 months of its effectiveness. In addition, there is an unallocated fund of about $26m that has accrued due to exchange rate fluctuations (Rs. 45 in 2011 to Rs 60 per $ in 2014). The World Bank suggested ‘restructuring’ of the project to revise its scope so that the IDA credit is fully utilized.

Remedial Action Plan After prolonged consultations during April-July 2014, a ‘remedial action plan’ as suggested by the Bank was agreed by the Ministry keeping in view of the above concerns. This included: provision of additional IT support to strengthen MIS across all districts in 8 States scaling up of a few activities (community based events, activity book for pre- school children etc) and introduction of new activities (e.g. provision of weaning bowls to promote optimal complementary feeding), etc, All within the project’s approved components. States were advised accordingly to revise their Annual Action Plans for 2014-15.

Preliminary Discussions on Restructuring On 3 November 2014, first round of discussion held by the Bank Team with JS (MP). Some of the possible areas of restructuring and the processes involved in it were discussed. During TPRM on 26 Nov-14, the DEA agreed to restructuring process; asked both Bank and MWCD to complete by 31 January 2015. Following this, the MWCD initiated the process; several internal consultations held at the senior management level; a few key interventions and activities identified and agreed with Internal Finance and approval obtained for restructuring. Identified interventions/activities are mostly towards addressing some of the emerging needs under the main ICDS Scheme as well as for preparatory activities under the forthcoming NNM.

Key Considerations for Restructuring (1) Proposed/agreed changes in project activities/interventions will be those from a menu of options that have the highest potential to enhance progress towards achieving project results and also accelerate disbursements. To reconsider existing activities (scope and number) and rationalize if necessary so as to be realistically achieved during the remaining period or an even a small possible extension of project completion date To consider other activities that support project objectives and are able to absorb project funds, are realistically implementable within a short timeframe and are quick disbursing.

Key Considerations for Restructuring (2) D. To revise results indicators/targets as appropriate. Given the decision by DEA and the Bank Country Management Unit to have phase II of ISSNIP as an independent project, it will be important to include some intermediate outcome results and indicators, so that project achievements can be measured in terms of outcomes and not merely be achievement of milestones as was proposed earlier (within the overall phase I and II framework, the project results were structured so that phase I was milestone based and phase II was to measure population level outcomes) F. To support plans/preparedness for National Nutrition Mission.

Suggested Menu of Options Proposed additional activities/ interventions under ISSNIP Level of implementation Target 1 Procurement of weighing scales (baby+ adult) State 40% AWCs in all districts 2 Procurement of Growth Charts 3 Cost for Induction training on revised MIS (as per approved plans by Govt. of India) 5 States (except AP, MP & Chhattisgarh where roll-out is complete) 4 Infrastructure for Cluster Resource Centres (CRCs) (Computer, Office Furniture) 25% Sectors in all districts 5 Additional training for NNM preparedness for Supervisors and AWWs 75% of Supervisors and AWWs (3 days training; batch size: 35; five different trainings per batch) 6 Development and production of thematic training modules Centre Approx. 10 topics/themes. 16 major languages. 7 Consultancy Services for creation of ICDS HR Database Initially may be taken up for 8 project States (nearly 50% of total ICDS functionaries will be covered) 8 Operations Research/Evaluation studies for NNM (through external agencies) Centre/State 5 Studies The above would require an estimated allocation of Rs. 291.39 crore or $49 million

Proposed activities/ interventions Estimated Costs Proposed activities/ interventions Estimated cost Rs. Lakh $ Million 1 Procurement of weighing scales (baby+ adult) 8,608.36 14.35 2 Procurement of Growth Charts 717.36 1.20 3 Cost for Induction training on revised MIS (as per approved plans by Govt of India) 7,000.00 11.67 4 Infrastructure for Cluster Resource Centres (Computer, Office Furniture) 5,380.22 8.97 5 Additional training for NNM preparedness for Supervisors and AWWs 6,113.21 10.19 6 Development and production of thematic training modules 320.00 0.53 7 Consultancy Services for creation of ICDS HR Database 500.00 0.83 8 Operations Research/Evaluation studies for NNM (through external agencies)   Total 29,139.15 48.57