Productive Social Safety Net Project II - Additional Financing

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Country context: Tanzania has seen strong economic growth in recent years. Growth averaged 7 percent on the Mainland and 6.6 percent in Zanzibar during the implementation of their respective Five-Year Development Plans (FYDP 2011/12 – 2015/16 and MKUZA II 2010/11 – 2014/15), making the United Republic of Tanzania (URT) one of the stronger performers in Sub-Saharan Africa. In recent years, poor people have significantly benefitted from the economic growth the country achieved. The percentage of the population living in poverty (below the basic needs poverty line) on the Mainland reduced from over 34 percent in 2007 to 28 percent in 2011/12; and those living in extreme poverty (below the food poverty line) decreased from 12 percent to 10 percent in the same period (THBS 2011/12). Despite these achievements, the numbers of people living in poverty and extreme poverty remain high. Approximately 4.3 million people continue to live in extreme poverty across the United Republic of Tanzania (4.1 million on the Mainland and 0.2 million in Zanzibar). Sectoral and institutional context: The Government of the United Republic of Tanzania (URT) has important policies in place to address poverty and vulnerability. The Tanzania Social Action Fund (TASAF) has evolved into a national Productive Social Safety Net system. Since 2012, the Government has been implementing the first phase of the Productive Social Safety Net (PSSN I). The objective of PSSN I is to enable poor households to increase incomes and opportunities while improving consumption. It targets 15 percent of the total population of URT, including all households living under the food poverty line (approximately 650,000 households) plus those at-risk of falling under the food poverty line in case of a shock affecting their income (approximately 350,000 households). Relation to CPF: PSSN II is also aligned with the Country Partnership Framework (CPF) for the United Republic of Tanzania FY18 – FY22 (World Bank, 2018). The PSSN will contribute strongly to focus area 2 of CPF: it is cited as the main instrument for realizing the social inclusion objective under this focus area; and will support other focus area 2 objectives, notably investment in the early years, and strengthening job-relevant labor force skills. Project description: Building on PSSN I, the PSSN II will achieve its objectives through the implementation of combined and integrated interventions. The project has two major components i) Productive Household Support (Benefits and Services) which includes, Cash Transfer, Public Works and Livelihood Support and ii) Institutional capacity and integrated delivery system. It is envisaged that the combination of the proposed livelihood activities and cash transfers will increase household income through building household level assets, enhancing risk management, and facilitating a shift to more productive types of employment. Public works will create productive assets at community level and provide temporary employment opportunities to beneficiary households, further contributing to household income to mitigate food shortage during lean season; and cash transfers will build human capital of children to ensure that they become productive members of society over time, and that beneficiary households can meet their consumption needs during the livelihood strengthening process. This will also strengthen household level resilience and diminish their vulnerability to shocks over time. It is envisaged that providing households with an integrated support will enable a significant number of currently supported households to exit PSSN over time. It is recognized, however, that not all households will make progress in the same way and some may not succeed, but most households are expected to significantly improve their situation and move towards more sustainable livelihoods.Coverage:• CTs, already operational in all PAAs, are expected to scale up to villages not yet covered (30 percent of villages), reaching 1.4 million households at full scale.• PW, currently operational in 44 PAAs, will scale up to all 187 PAAs and all villages; as will the new basic livelihoods sub-component.• Enhanced livelihoods, currently at pilot stage in 8 PAAs, will scale-up to 200,000 households in 44 PAAs.Project components:Component 1: Productive Household Support (Benefits and Services) (Total US$738.00 million – IDA US$261.00 million)This component will provide beneficiary households with an integrated package of support, including a foundational package and livelihoods support.1.1. Cash Transfers (CT)CTs will comprise three types of benefits, layered as follows: i. A fixed transfer offered to all PSSN households. This transfer will be unconditional only for households with no labor capacity and will be referred to as Direct Support. Households with labor capacity will instead receive a time-limited Productive Transfer, which will be accompanied by soft-conditions in the form of community sessions and savings promotion; these households will receive the productive transfer only until they enroll in public works - once they start receiving PW transfers, the productive transfer will stop. ii. A fixed transfer for vulnerable groups provided to all households that include a child aged 0-18 years old (Child Grant) and to those that include a person with a disability (PWD) (Disability Grant). Households that include both a child and a PWD will receive both types of grant.iii. A variable Human Capital Transfer (HCT) offered to households with children, subject to compliance with health or education conditionalities, and varying depending on the number of children and the children’s ages / educational stages. 1.2. Public Works (PW): Participation in PW will be open to PSSN-eligible households with labor capacity and willing to participate. Households with labor capacity will be defined as those including at least one adult aged 18-65 years who is able to work. Households with multiple working age members will have the opportunity to send to public works any adult who is neither pregnant nor the lead caregiver of an infant (aged 0-2 years). Moreover, eligible households that have only one adult able to work who is pregnant or caring for an infant will continue to receive PW wages but will be granted a temporary waiver from the need to work and will be linked with nutrition services. These special provisions are made to avoid over-burdening women and to promote the nutrition and development of young children. They will ensure that the household receives income without compromising the availability of the lead caregiver to ensure appropriate nutrition, care and early stimulation. Options for supporting childcare at PW sites for children aged over 2 years will also be explored. The roll-out of Public Works will be gradual. Currently only 44 PAAs are implementing Public Works. In PSSN II, the existing 44 PAAs plus an additional 72 PAAs will implement PW starting from the second year; and the remaining 71 PAAs will commence PWs implementation during the third year.The PW subprojects will continue to be selected through a participatory community-based planning approach. PSSN PW sub-projects with the potential to adapt to and mitigate climate change risks and those that promote livelihood activities of beneficiary households and the community at large will be encouraged. These will include, but not be limited to, soil and water conservation measures such as terracing, afforestation, sea water protection structures, small scale irrigation, water supply for human and livelihood consumption etc. The participatory approach will be gender-sensitive, so as to ensure that projects respond to the priorities of women as well as men in the community.1.3. Livelihoods Support (Productive Inclusion):To enhance the productive impacts of the foundational packages, livelihoods support will also be rolled out. This will consist of: (i) basic livelihoo

FY17 - Social Protection

World Bank

Project

Water Supply and Storage, Commercial, Government, Education