1. Leveraging Community Capacity Financing Civil Society at the Local Level World Bank-InterAction Workshop Samantha de Silva, HDNSP March 02, 2006

2. FUNDING AGENCY (FA) (Central Government Agency/ NGO, Social Fund, Local Government Agency) COMMUNITY GROUP (Village Committees) Materials/ Contractors / Skilled Labor/ Technical Assistance Funding Agency Functions  Disseminate “Rules of the Game”  Appraise Community Proposals  Fund Community Projects  Provide Technical Support Procurement Materials & Services Design and Fund Flow

3. Why use a Community-Driven Development Approach? Trusts communities with decisions/ resources; Achieves scale/outreach Improves cost-efficiency; Increases ownership/ sustainability; Stimulates local economy.

4. Key Design Principles Ensure broad community participation in decision making; Transfer funds directly to communities; Enforce simple, transparent eligibility criteria for approving community projects; Decentralize decision-making and involve local authorities; Require contributions (cash/in-kind); Use simple, standard engineering designs which communities can implement easily.

5. Key Lessons Learned Financing: Financing Agreement/contract basis for disbursement; Output-based method of payment; Disburse in tranches. Procurement: Build incentives for efficiency of procurement. Access to services: Facilitate communities’ access to banks, private sector, service providers; Provide active support on prices and quality.

6. Key Lessons Learned (cont.) Legal Status: Ensure legal status of community group. Community Contributions: Establish percentage to be contributed by communities in cash/labour/materials; Establish method for valuing contributions. Info campaigns: Design campaign to inform all stakeholders and ensure transparency. Maintenance: Address maintenance and recurrent cost issues upfront. Monitoring and Evaluation: Plan for intensive supervision as well as financial, technical, social audits.

7. Examples of Results: Reaching Scale North-East Brazil Poverty Alleviation Project Investment: US$ 1.2 billion Communities reached: 55,000 Indonesia Kecamatan Development Project Investment: US$ 800 million Communities reached: 28,000 Afghanistan National Solidarity Program Investment: US$ 200 million Communities reached: 10,000