1. ICDS System Strengthening & Nutrition Improvement Project (ISSNIP) (Credit # 5150-IN) Central Project Management Unit Ministry of Women and Child Development Government of India www.wcd.nic.in/issnip.htm Progress Update & Key Issues (As on 28 Feb-15)

2. Structure of Presentation I. Progress towards Project Development Objectives (PDOs) II. Update on Key Actions since last Mission A. Revision of State Annual Action Plans 2014-15 B. Revision of Procurement Plans C. Status of Procurement of Goods D. Project Staffing at Central Level E. Hiring of Consultants in the States F. Financial Status G. Details of Reimbursement Claims H: Audit Issues III. TA Agency – Key Information & Contract Management IV. Action on Key activities V. Issues 2

3. 3 I: Progress towards PDOs IndicatorTarget (Yr-2) (Dec, 2014) Achievement (Jan, 2015) PDO Indicators Indicator 1: Percentage of project blocks reporting information using revised MIS50%42% Indicator 4: Percentage of Anganwadi Centres (AWCs) implementing IPC activities focused on IYCF practices40%58% Intermediate results indicators IR 1.3: Number of project States that have adopted the operational guidelines, including a set of facilitators manuals for incremental capacity building 68 (100%) IR 1.4: Percentage of project districts with district resource groups (DRGs) established and trained to implement the incremental capacity building system (ILS) 50%57% IR 2.2: Number of project States that have adopted the IPC guidelines and materials for use by Anganwadi Workers48 (100%)

4. II. Update on Key Actions since last Mission (Period: Sept 2014 – January 2015) 4

5. IIA: Revision of State Annual Action Plans 2014-15 All eight States submitted revised AAPs based on comments and suggestions of CPMU; Revised plans have detailed out some of key activities including district based pilots and innovations (in few States). While according approvals, States have been advised the following: Given the limited time period available during 2014-15 and the proposed restructuring of the project, the State Govt may undertake only those priority activities which have already been initiated (e.g. ILA, community based events, mid-media activities, training on MIS etc.) and await the outcome of the project restructuring and MWCD's guidelines thereon for developing the next year's plan. In the interim, the State may augment the systemic infrastructure by way of procurement of already approved essential IT goods and hiring of Consultants up to the block level at the earliest. 5

6. IIB: Revision of Procurement Plans Central level procurement plan revised; NoC received from the World Bank. All eight States submitted revised procurement plans for remaining period of phase 1 These plans include additional IT goods up to block level, supply of weaning bowls to mothers of seven months to 2 years, etc, as per the ‘remedial action plan’ agreed with the Bank during July 2014 Bank’s No objection conveyed to all States except Chhattisgarh that is revising plans further. 6

7. IIB: Procurement Plans – Contd/- Estimated budgets in the revised procurement plans: Goods & Non-Consultancy Services: States :Rs. 100.26 crore [$16.74 million] CPMU: Rs. 53.00 lakh [$0.087 million] Total: $16.83 million Consultancy Services: States: Rs. 59.21 crore [$9.35 million] CPMU: Rs. 42.17 crore [$7.00 million] Total: $16.35 million 7

8. IIC: Status of Procurement of Goods Central level: Supply of most of the essential goods completed. Procurement of additional IT goods (Software, I-Pads, storage device, etc) and office furniture underway (expected to be completed by 28 Feb 2015). State level: AP, Bihar, Chhattisgarh and MP completed SPMU level procurement of essential IT and other goods. Procurement of goods for district and block level is being initiated in most of the States. 8

9. IID: Project Staffing at Central Level Joint Secretary (Child Development & Nutrition) is leading the project implementation as (Ex-Officio) National Project Director for ISSNIP (as per EFC approval) Selection of Project Director has been completed. An Indian Forest Service Officer from Jharkhand cadre offered the position on 2 Jan-15. Proposal for appointment of three Project Managers submitted for approval. Posts likely to be filled up 20 Feb. Since project effectiveness, CPMU has been functioning with support of 1 Dy. Secretary, 1 Under Secretary, 1 Assistant Director, 1 Section Officer and 1 UDC. Five senior Consultants (FM, Nutrition & Child Development, BCC & Training, Social Development and M & E) joined during Aug-Nov 2014. None of the ranked candidates (three) for the position of Procurement Consultant accepted the offer. 9

10. IIE: Hiring of Consultants in the States (following IC method of selection) 10 StateLevel SPMUDistrictBlock Andhra PradeshCompleted2 out of 10 districts completed Under process BiharCompleted19 out of 19 districts completed Due ChhattisgarhCompleted7 out of 11 districts completed Under process JharkhandShort-listing completed. Interviews scheduled in 3 & 4 week of Feb Short-listing of applications underway Madhya PradeshAdvt. made for online applications (Jan-15) MaharashtraApproval of competent authority received recently. RajasthanAdvt. made for online applications (Dec-14) Uttar PradeshAdvt. made (Dec-14)

11. IIF: Financial Status Budgetary Allocations: An amount of Rs. 196 crore ($33 million) was kept at BE 2014-15 [Rs. 167.00 crore ($28 million) for the States; Rs. 29 crore ($5 million) for the CPMU] Note: Due to less demand, allocation at RE 2014-15 has been reduced to Rs. 85 crore Funds Release: An amount of Rs. 66.55 crore ($11 million) has been released to the States during 2014-15. Since 2012-13, a total of Rs. 181.66 crore ($30 million) has been released to the States. IUFRs are being received from the States on quarterly basis. Disbursement: Till 31 Dec-14, re-imbursement claims for a total amount of Rs. 17.84 crore (gross) ($2.9 million) submitted to CAA&A for the expenditures incurred at the central and state levels for the period up to the period 30 Sept 2014. 11

12. IIG: Details of Re-imbursement Claims 12 Claim No. Date of submission of claims Expenditure (Rs. Million)Period covered Amount (gross) Amount (Net) (70% IDA share) 0113 Jan-1427.1218.98 1 Jan 2011 – 31 Oct 2012 (Retroactive period) 02 13 Jan-14 17.5312.27 1 Nov 2012 – 31 Dec 2013 0319 Mar-1430.3321.231 -15 March 2014 0418 Jun-1469.0148.3116 – 31 March 2014 0515 Dec-1434.4224.101 April – 30 Sept 2014 Total178.41124.90 ($2.05 million)

13. IIH: Audit Issues Audit of CPMU level expenditures (for about Rs. 9.00 crore) completed in Dec-14 by the CAG. Certificate received and shared with the Bank. Audit of expenditures for 2013-14 completed in AP and MP during Jan-Feb-15. Certificates awaited. Due to negligible expenditures in 2013-14, the World Bank has waived requirement of audit in other six States. 13

14. IIIA: Technical Assistance Agency - Key Information 14 1 Name of the Consultancy Service Technical Assistance to ISSNIP 2Name of the Agency M/S PriceWaterHouseCoopers (PwC) Pvt.Ltd, Kolkata in association with CINI, Kolkata and IHMR, Jaipur 3Type of contractBoth time-based and lump-sum 4 Prior Review by the World Bank Completed 7Date of effectiveness7 November 2013 8Duration26 Months (till 31 December 2015) 9Value of the contract: Rs. 342,607,226.00 ($6 million) (exclusive of taxes as applicable) 10Composition of TA TeamCentral Level:  1 Team Leader, 1 Dy. Team Leader,  5 Technical Program Coordinators (Public Health, Nutrition, Training, Communication, and M & E)  7 Professional Support Staff State level: 1 State Team Leader; 1 Regional Manager per 4- 5 districts [Total 8 STLs, 32 RMs]

15. IIIB: TA Agency - Contract Management Technical assistance at central and state levels through an external agency is being provided at scale, first time in ICDS. TA operation is in place for 14 months. Reviews of the TA Agency’s work and performance by the designated Review Committee held in July-14 and Jan-15. Overall performance in respect of both technical and operational issues remains a matter of serious concern. An amount of Rs. 5.91 crore ($0.97 million) has been released to TA Agency till 31 Dec-2014 against both time-based and 19 lump- sum activities (out of 26). 15

16. IV: Action on Key Activities (1) Supervision of quality in roll-out of revised MIS completed in Andhra Pradesh, Chhattisgarh and Madhya Pradesh with TA support. As remedial measure, refresher training of selected Supervisors and AWWs being undertaken under ISSNIP. Roll out of Incremental Learning Systems (ILS): Almost all 162 districts have formed District Resource Groups (DRGs); orientation of SLMTs along with DRGs on first three months modules completed in all States except in UP, Rajasthan and Maharashtra. Sector level IL sessions initiated in Madhya Pradesh. Organization of traditional community based events: Initiated in full scale across AWCs in 8 States focusing on infant feeding practices (with an emphasis on complementary feeding), care during pregnancy, new born care etc. 16

17. 17 Orientation Training of DRGs on ILA: Patna 22- 23 Dec 2014

18. 18 Annaprashana (initiation of complementary feeding) event inaugurated by Honourable Minister (Govt. Of Bihar) Community Based Events – Participation of Political Leaderships

19. 19 Hon’ble Deputy CM Sri N.Chinnarajappa and Hon’ble Finance Minister Sri. Yanamala Ramakrishudu and Collector East Godavari District, felicitating pregnant women during Samuhika Sreemanthalu held in East Godavari District Community Based Events – Participation of Political Leaderships

20. IV: Action on Key Activities (2) As part of strengthening BCC for nutrition, some of the States (Bihar, MP and Chhattisgarh) have initiated mid-media activities through local folk groups to create awareness on health and nutrition issues: 20 State# districts covered# projects covered# shows organized Bihar19 out of 191901710 Madhya Pradesh26 out of 30583653 ChhattisgarhState has developed 13 BCC films on different themes. Mass printing (1700 copies) of these films is underway for distribution among Sector Supervisors for use in ILA and community events.

21. IV: Action on Key Activities (3) Design and implementation of Convergent Nutrition Action Pilots in Odisha and Uttarakhand (non-Project States) by TA Agency:  Draft designs prepared. Comments of WB received.  Consultation with Govt. of Uttarakhand held on 30 Jan 2015  As part of CNA implementation, an IT based pilot focusing on name based tracking of children and women on key health & nutrition indicators in one district each in two states to be undertaken. Operational Guidelines on implementation of CNA pilot: TA Agency organized a one-day consultation with the District Authorities and related stakeholders in Lohardaga distract in Jharkhand to discuss draft operational guidelines on CNA pilot and share experiences (Nov-14). 21

22. IV: Action on Key Activities (4) Development of Urban ICDS Pilots: A one day consultation-cum-workshop organized by TA Agency in Mumbai with project States, NGOs working in urban slums, Urban bodies and Experts (28 Jan 2015). Draft operational guidelines on urban pilot are to be revised based on inputs from the consultation. IT based pilot on name based tracking of underweight children: With technical assistance from BMGF, district based IT pilot is under consideration in one district each in UP, Bihar and Maharashtra. Consultations with BMGF and State WCD Teams underway. Development of Programme Management Tools for ICDS Functionaries: Through focused group discussions with ICDS field functionaries at the district/block/sector levels across 3-4 States (UP, Maharashtra, Bihar, AP), draft PMTs are under development with support TA Agency. Expected to be completed by 28 Feb 2015. 22

23. IV: Action on Key Activities (5) Guidelines for Design and Assessment of Innovations and Pilots: One of the key project characteristics is to provide flexibility to the States/districts to experiment a wide range of system and programme level innovations and pilots to generate newer evidences for better programme outcomes. During appraisal of the State Annual Action Plans of the previous and the current years, it was found that most of the States have either not identified any innovations/pilots (especially using the untied funds for the high-burden districts) or the proposals did not provide some basic details. Keeping in view of this, CPMU developed guidelines with the States outlining essential steps in development of the innovative proposals by the States (10 Dec-14) 23

24. V: Issues (1) Though in operation for more than 2 years, project implementation delayed significantly primarily for want of timely approvals of the competent authorities on project staffing (technical and other consultants). This has been the most critical for implementation of the project. Previously held two Missions had rated the project implementation as 'moderately satisfactory', due to implementation delays and the resultant lack of progress towards the achievement of Project Development Objectives (PDOs). Implementation of the project activities in the field started only recently since mid-2014. Progress is varied across States; some of the States with large project allocations such as UP, Rajasthan and Maharashtra are still lagging behind. 24

25. V: Issues (2) Till date, an amount of about $2 million has been disbursed against a target of $106 million. There is large amount of unspent balances under the project, in addition to an unallocated fund of about $26m that has accrued due to exchange rate fluctuations In view of the above, the MWCD has taken a conscious decision to initiate process of 're-structuring' the project, as was also suggested by the Bank during the last Mission. A couple of activities and interventions within the project's purview, have been identified by the Ministry to address some of the emerging needs of larger ICDS Scheme as well as the preparatory activities under the forthcoming NNM. Restructuring of project is expected to help achieve the key PDOs as well as accelerate project disbursements. Performance of TA Agency till date is a matter of serious concern. 25