Second Rural Infrastructure Development Project

dropped

TO BE REVISED!!!The proposed Second RIDP (RIDP 2) will build on the RIDP’s institutional arrangements, project implementation capacity, and CDD approach to support Uzbekistan 2030 objectives of improving living standards in rural areas; empowering communities to play an active role in the development process; and supporting women’s economic inclusion. It will do so by introducing a new package of technical assistance, facilitation support, planning, and investments in infrastructure and services (public goods and economic infrastructure) aimed at improving the enabling environment for inclusive local economic development. Technical assistance will bring mahalla leaders and groups of economically vulnerable women together to analyze constraints that contribute to women’s time burdens and limit economic opportunities. Each mahalla will produce a QDP supplemented by a Women’s Economic Development Plan, the latter of which is produced by groups of economically vulnerable women. Technical assistance will support the convergence of ongoing programs to address local constraints in a holistic manner and improve access to market information and linkage services. The RIDP 2 will also include changes to implementation arrangements that address shortcomings in the procurement of subproject design services, civil works, and technical supervision identified through RIDP 1. The project will support women’s economic inclusion through: (i) tailored community mobilization and technical assistance to enhance economically vulnerable women’s meaningful participation in mahalla development planning and decision-making, and promote linkages to markets, finance, and skills development; and (ii) infrastructure investments that reduce the time burdens rural women face and improve access to livelihoods activities.Selected Mahallas will be in a sub-set of rural districts in Ferghana, Namangan, Andijan, Jizzakh, Syrdarya, and Tashkent regions. Districts will be identified based on: (i) the share of population living below the national poverty line, (ii) share of households that lack access to clean drinking water supply, and (iii) share of children (3-6 years old) not participating in preschool services. All villages in selected districts will be covered by the Project. Component 1: Socio-Economic Infrastructure for Inclusive Local Economic Development ($290m: $120m IDA, $120m AIIB, $55m GoU) aims to ensure all neighborhoods and groups within selected mahallas have access to quality basic infrastructure and services. This component will finance public goods such as power supply, transportation, and water supply, the lack of which increases women’s time burdens and constrains women’s economic inclusion, as well as economic infrastructure that promotes opportunities for income generation, livelihoods, and self-employment. The average allocation for each mahalla for Subcomponents 1 a and 1b is expected to be ~US$500,000, or ~$160 per capita over the five-year period of the project, which can be used to finance one or more subprojects identified in the QDP.Subcomponent 1a: Demand-Driven Investments in Village Infrastructure and Services. This subcomponent will finance design services and civil works for public goods-focused subproject investments identified by communities in selected mahallas through the participatory Project implementation cycle as defined in the POM, subject to a negative list that includes housing construction and renovation or any investments that require the physical displacement or resettlement of people. Eligible investments in seismic- and climate-resilient basic infrastructure and services subprojects include, but are not limited to (i) modernization of existing rural drinking water supply and sanitation systems to expand access through innovative, alternative models for rural drinking water supply and sanitation; (ii) retrofitting of public buildings for energy efficiency; (iii) modernization of social infrastructure; (iv) rehabilitation of tertiary roads, walkways, footpaths; (v) road drainage and strengthening flood resilience of rural roads and public buildings; (vi) bridge rehabilitation and construction (up to 10 meters long); (vii) street lighting upgrading; (viii) improvements to public spaces; (ix) small-scale construction of public facilities; (x) installation of antennas to provide wireless internet services; (xi) construction and rehabilitation of bus terminals and stops; and (xii) renewable energy supply activities. Subcomponent 1b: Economic Infrastructure for Women’s Economic Inclusion will finance design services and civil works for investments in economic infrastructure identified in Women's Economic Development Plans (WEDPs), including, but not limited to, preschool facilities, common service centers (e.g. facilities for storage, equipment for dairy processing, recycling, or other environmental services, tailoring, handcraft production, and multi-purpose work), transportation services, and other socially-minded enterprises. A share of each village’s total resource allocation will be earmarked to support at least one investment prioritized in the Women’s Economic Development Plan. The economic infrastructure will be financed, operated, and maintained through a public-private partnership model based on global experience, including the Kyrgyz Republic, as well as the existing model in Uzbekistan for family-based kindergartens. Women’s group members (supported under Subcomponent 2b) will be invited to submit proposals for socially-minded enterprises that will be selected by community members based on criteria, which may include: (i) a business plan linked to a locally viable value chain; (ii) entrepreneurs’ own investment contribution (e.g., equipment, materials, buyers); (iii) the number and timing of expected jobs in the facilities generated for local communities; (iv) the number of jobs generated for women; and (v) the package of in-kind support offered to help vulnerable men and women join the value chain in a self-employed status. The Project will finance the costs of constructing or rehabilitating the economic infrastructure, which will be owned by the mahalla committee and operated by the successful women’s group members. Subcomponent 1c: Block Grants to Mahallas. This subcomponent will support the GoU in establishing the Mahalla Budget System by piloting mahalla block grants to selected mahalla committees. Pilot mahallas will receive a block grant to support the provision of basic public social and economic infrastructure and services identified in QDPs, including design services and civil works. Eligible subprojects may include improvements/upgrades to mahalla-level public infrastructure, such as water supply, internal roads, and power supply networks. Further consultations will be held with the MEF and Urban GP to review mandates, avoid duplication, and finalize the positive menu of eligible subprojects. The selected mahalla committees will receive the first round of block grants allocated using a simple formula based on population size and measures of poverty/vulnerability. Block grants transfer will be based on fiduciary requirements and checks, including completion of a QDP. Mahalla committees will also receive additional support and capacity building on community procurement, record-keeping, and reporting. It is expected that subprojects will be small-scale and involve simple designs such that mahalla committee members can directly procure subproject design and civil works following World Bank Procurement Guidelines for CDD projects adapted to Uzbekistan’s legal and regulatory context.Component 2: Mahalla Institutional Strengthening and Community Mobilization ($20m: $20m IDA) aims to enhance: (i) inclusive local governance practice, including community participation in needs assessments, planning, prioritization, selection of subproject investments, and oversight of procurement and subproject implementation through social audi