TANZANIA SECOND SOCIAL ACTION FUND. First Quarter Implementation Progress Report (July - September 2011)

Transcription

1 TANZANIA SECOND SOCIAL ACTION FUND First Quarter Implementation Progress Report (July - September 211) Prepared by TASAF Management Unit Old Kilwa Road/Malindi Street P. O. Box 9381, Dar Es Salaam, Tanzania Tel: /4 Fax: info@tasaf.org Website: October, 211

2 TABLE OF CONTENTS OVERVIEW OF TASAF... VI EXECUTIVE SUMMARY... VII 1. PROGRESS OF PROJECT IMPLEMENTATION GENERAL OVERVIEW NATIONAL VILLAGE FUND (NVF) IMPLEMENTATION STATUS PROCESSING SUBPROJECTS FOR FUNDING TASAF II -ADDITIONAL FINANCING I (AF-I) TASAF II -ADDITIONAL FINANCING II (AF-II) PROGRESS RING FENCED FUND SUB PROJECTS COMPLETION AND CERTIFICATION CAPACITY ENHANCEMENT DEVELOPMENT COMMUNICATION TRAINING, RESEARCH AND PARTICIPATION (TRP) CB-CCT PILOT PROGRAMME ASSESSMENT OF THE PROXY MEANS TEST (PMT) FORMULA SUPPORT TO COMMUNITY FOUNDATIONS IN FOUR URBAN AREAS COORDINATING TASAF CARBON AND CLIMATE CHANGE INITIATIVE CONDUCTING PARTICIPATION SURVEYS SUPPORT TO STUDENTS CONDUCTING PRACTICAL TRAINING AND RESEARCH TRAINING WARD LEVEL FACILITATORS IN BUSINESS AND ENTREPRENEURSHIP SKILLS MONITORING AND EVALUATION UNIT INFORMATION TECHNOLOGY - MANAGEMENT INFORMATION SYSTEM COMMUNITY SAVINGS AND INVESTMENT PROMOTION (COMSIP) AUDIT ORGANISATIONAL MANAGEMENT ASPECTS STAFFING NSC MEETINGS SET TECHNICAL REVIEW MEETINGS GENERAL STAFF INFORMATION SHARING MEETING TASAF III PREPARATION MEETINGS DISPOSAL OF AGED VEHICLES FINANCIAL AND PROCUREMENT ASPECTS FINANCE IMPLEMENTATION STATUS SOURCES AND USES OF FUNDS DEVIATIONS AND REASONS EXTERNAL AUDIT FOR THE YEAR 29/21 ACCOUNTS PROCUREMENT ISSUES SAFEGUARDS AND ENVERONMENTAL ASPECTS REPORTING OF ENVIRONMENTAL ISSUES PROJECT OUTCOMES IMPLEMENTATION CHALLENGES RECOMMENDATIONS AND WAY FORWARD ANNEXES i

3 8.1 REVISED RESULTS FRAMEWORK AND MONITORING AND EVALUATION ARRANGEMENTS ANNEX 8. 2: FINANCIAL MANAGEMENT REPORT (FMR) ii

4 List of Tables TABLE 1: NUMBER OF SUBPROJECTS FUNDED BY BENEFICIARY CATEGORY... 3 TABLE 2: SUBPROJECTS PROCESSED BY SOURCE OF FUND, CUMULATIVE UP TO 3 TH SEPTEMBER, TABLE 3: PROGRESS OF SUBPROJECTS IMPLEMENTATION UNDER RING FENCING ARRANGEMENT IN TASAF II... 8 TABLE 4: NINTH TRANSFER OF CASH TO CB-CCT BENEFICIARIES TABLE 5: TENTH TRANSFER OF CASH TO CB-CCT BENEFICIARIES TABLE 6: LIST OF DISBURSEMENT BATCHES (JULY-SEPTEMBER, 211)... 2 TABLE 7: DISBURSEMENT OF CASH TRANSFERS TO THREE PILOT LGAS-BAGAMOYO, CHAMWINO AND KIBAHA (UP TO 3 TH SEPEMBER, 211)... 2 TABLE 8: ADDITIONAL FINANCING- I (AF-I) FUNDS DISBURSEMENT BATCHES (UP TO 3 TH SEPTEMBER, 211).. 21 TABLE 9: ADDITIONAL FINANCING II (AF-II) FUNDS DISBURSEMENT BATCHES UP TO 3TH SEPTEMBER, 211 (FOR COMPLETION AND FUNCTIONALITY) TABLE 1: ADDITIONAL FINANCING II (AF-II) FUNDS DISBURSEMENT BATCHES VG AND PWP AS AT 3TH SEPTEMBER, TABLE 11: OPEC II FUNDS DISBURSEMENT BATCHES TABLE 12: REPLENISHMENT APPLICATIONS CB-CCT TF TABLE 13: REPLENISHMENT APPLICATIONS AF-I 4636 TA TABLE 14: REPLENISHMENT APPLICATIONS AF-I 4741 TA TABLE 15: REPLENISHMENT APPLICATIONS-OPECII 132OP TABLE 16: CONTRIBUTION OF COUNTERPART FUNDS-GOT (IN TZS) TABLE 17: SOURCE AND EXPENDITURE OF FUNDS FOR THE QUARTER ENDED 3TH SEPTEMBER, 211 (IN TZS) TABLE 18: CUMULATIVE SOURCES AND EXPENDITURE AS AT 3TH SEPTEMBER, TABLE 19: IDA CUMULATIVE EXPENDITURE TO DATE (USD) TABLE 2: CB-CCT CUMULATIVE EXPENDITURE TO DATE (USD) TABLE 21 : AF I-CUMULATIVE EXPENDITURE TO DATE (USD) TABLE 22: IDA -AFII CUMULATIVE EXPENDITURE TO DATE (USD) TABLE 23: BASIC SERVICES PROGRESS OVER BASELINE LIST OF ABBREVIATIONS iii

5 CB- CCT CDD CE CMO CF CMT COMSIP CSC DC DED E-PRA FI FMAS IDA IEC IT/MIS JAST JSDF LGA LSP M&E MACEMP MDGs MKUKUTA MOHSW NSC NSGRP NVF OBoQ OFID O&M PFM PTS SET SP SPDS SPIF TACAIDS TASAF TC TFCMP TMAP TMU TRP TZS VGS VFC VFJA Community Based Conditional Cash Transfer Community Driven Development Capacity Enhancement Chief Ministers Office Community Foundation Council Management Team Community Savings and Investment Promotion Community Score Card District Council District Executive Director Extended Participatory Rural Appraisal Food insecure Financial Management and Accounting Systems International Development Agency Information, Education and Communication Information Technology/Management Information Systems Joint Assistance Strategy of Tanzania Japan Social Development Fund Local Government Authority Local Service Provider Monitoring and Evaluation Marine and Coastal Environmental Management Project Millennium Development Goals Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania Ministry of Health and Social Welfare National Steering Committee National Strategy for Growth and Reduction of Poverty National Village Fund Operational Bills of Quantities OPEC Fund for International Development Operation and Maintenance Participatory Forest Management Project Tracking System Sector Expert Team Service Poor Sub-Project Data Sheet Sub-project Interest Form Tanzania Commission for AIDS Tanzania Social Action Fund Town Council Tanzania Forest Conservation and Management Project Tanzania Multi-Sectoral AIDS Project TASAF Management Unit Training, Research and Participation Tanzanian Shilling Vulnerable Group Support Village Fund Coordinator Village Fund Justification Assistant iv

6 VFSA VPO-2 ZAC Village Fund Systems Auditor Second Vice President s Office Zanzibar AIDS Commission v

7 OVERVIEW OF TASAF Tanzania Social Action Fund (TASAF) is a Community-Driven Development (CDD) operation initiated by the Government of Tanzania to enhance its efforts on poverty reduction. Its Development Objective is to improve access of communities to enhanced socio-economic services and income generating opportunities. The objective is linked to Millennium Development Goals (MDG s) indicator targets as stipulated in the National Strategy for Growth and Reduction of Poverty (NSGRP/MKUKUTA). The project provides a mechanism that allows local governments to respond to community demands focusing on interventions that will ultimately contribute to the attainment of MKUKUTA objectives and those of the Millennium Development Goals. The Project has been delivering critical infrastructure services and social assistance to the urban and rural poor, while at the same time addressing institutional organization and capacity-building needs at village and LGA levels. Eventually communities have been able to improve access to basic socio-economic services, increase access to income generating opportunities and improve the quality of basic services as well as enhancing livelihoods of beneficiaries for marginalized groups in the communities. TASAF II operations are guided by the following key principles: (i) Autonomous but operating in harmony with other ongoing initiatives within the Local Government Reform Program, in order to ensure sustainability of the Fund s achievements. (ii) Demand-driven and follows a bottom up planning and decision-making approach. (iii) Finances community-initiated projects directly; (iv) Acts as a safety net by targeting vulnerable households and poor communities; (v) Conform to sector norms and standards. (vi) Non-partisan and apolitical. (vii) Modalities to access the Fund have to be clear; (viii) Delivery structure ensures speedy operations; (ix) Adequate and timely technical support; (x) Transparent and demonstrate full public accountability; (xi) Processing and management are cost-effective; and (xii) Strengthen community empowerment. TASAF II MAIN COMPONENTS TASAF II is implemented under two major components, namely the National Village Fund (NVF) and Capacity Enhancement (CE). The target groups for the NVF are: the service poor communities who lack basic social and market services such as education, water and sanitation, roads, banking and markets; the ablebodied individuals in food insecure households who are provided with temporary employment opportunities so as to increase their cash income, skills, and opportunities from working in financed public works programs; and households with vulnerable individuals (orphans, disabled, elderly, widows/widowers and those infected or affected by HIV/AIDS) who are provided with assistance to manage sustainable economic activities for income generation purposes. TASAF II also receives Ring-fenced funds from Marine and Coastal Environment Management Project (MACEMP), the Participatory Forest Management (PFM) a sub component under Tanzania Forest Conservation and Management Project (TFCMP), Community AIDS Response Fund (CARF) sub component under Tanzania Commission For Aids (TACAIDS), Community AIDS Response Fund (CARF) sub component under Zanzibar AIDS Commission (ZAC), and Tanzania Poverty Reduction Project (TPRP) under Organization of Petroleum Exporting Countries (OPEC). Following TASAF II principles and procedures these institutions have been disbursing funds to the community for the selected sub project related to their sectors. The Ring-fenced facility operates under the NVF and follows the NVF rules of access, and serves as a collaborative arrangement and broadens the use of the CDD approach. The Capacity Enhancement (CE) component provides expertise required for communities to efficiently achieve their objectives. Its major functions are to enhance capacities of communities and other stakeholders; to promote transparency and accountability in the management of TASAF supported activities at all levels and promote formation of voluntary savings and investment vi groups.

8 EXECUTIVE SUMMARY The quarterly report summarizes the progress of the project activities implemented during the reporting period July-September 211. It describes the subprojects that have been completed, justified and those in progress. The report also summarizes the progress made under Capacity Enhancement component. In addition the report gives the status of funds disbursed to all the LGAs/VPO-2 and the expenditure by categories. Implementation challenges that the Project has encountered during the period are also pointed out, including the way forward towards achievement of the Project s Development Objective (PDO). The National Village Fund (NVF) 1 During the quarter under review, the number of sub projects applications approved by LGAs/VPO-2 1 and submitted to TASAF Management Unit increased by 66 percent, from 93 in the previous quarter to 154 in the current quarter. Cumulatively, 12,391 subprojects applications have been received from all LGAs/VPO-2 since the Project started. The new applications were mainly from identified Food-Insecure LGAs and Islands of Unguja and Pemba in Zanzibar. 2 The National Steering Committee (NSC) endorsed 273 sub projects, worth TZS.5 Billion, for funding in this period. Cumulatively, 1,799 subprojects, valued TZ billion have been processed and endorsed by NSC for funding. 3 Distribution of subprojects across beneficiary groups since TASAF II started is as follows: Service Poor 4,294 (4%), Vulnerable Group 5,476 (51%) and Food Insecure 1,29(1%). The highest number of subprojects among beneficiary groups was recorded in the Vulnerable Group category. 4 Cumulatively, 8,717 community subprojects have been completed; of which 5,977 have been issued with completion certificates. Thus to date 69% of completed sub projects have been issued with completion certificates. 5 TMU is closely following up with LGAs in order to ensure that all completed subprojects are justified and apply for completion certificates. Additional Financing 6 TASAF II obtained a total of 65 million US Dollars through additional financing I and II aimed at supporting interventions in 63 identified Food-Insecure LGAs in Tanzania Mainland, and Unguja and Pemba, in Zanzibar and for completion of uncompleted subprojects. A total of 143 subprojects, valued TZS 2.75 billion were funded under AF-I during reporting period, and cumulatively, 831 subprojects valued TZS18.2Billion have been funded. A total of 128 subprojects valued TZS.2.3Billion, have been funded under AF-II and 1,21 engineering verified subprojects funded under AF-II, have been 1 Second Vice president s office in Zanzibar vii

9 completed, out of 1,492 that received funds for addressing completion and functionality deficiencies. 7 Ring-Fenced Fund Projects Ring-fenced funds from OPEC-I&II, PFM and ZAC have been fully absorbed. During this quarter under review, there were 2 new subprojects endorsed for funding under MACEMP. Cumulatively, 3,665 communities sub projects worth TZS 36.4 Billion have been supported under this category. More subprojects from 12 LGAs of Mtwara and Lindi regions will be supported by OPEC II. Capacity Enhancement Development Communication 8 TASAF has continued to air its Radio Programme. 12 Radio Programs were broadcasted Themes covered by the programs included; Community Savings and Investment Promotion (COMSIP), Community Based Conditional Cash Transfer (CB-CCT) and Public Works Programs (PWP 9 The press release was published in widely circulated Newspapers Showing LGAs/VPO-2 implementation progress. It mainly focused on Subprojects completion, justification of disbursed funds for all LGAs in Tanzania Mainland, as well as, Unguja and Pemba in Zanzibar. 1 Regional Supplements for 6 Regions of Rukwa, Manyara, Pwani (Coast), Dodoma, Lindi and Arusha, were compiled and published on widely circulated local Newspapers country wide,. For each Region, 22, copies of the Regional supplements were printed 11 TASAF participated in Farmers Day Exhibition (Nane-Nane), which took place in August, 211 at Nzuguni grounds in Dodoma Region. It took this opportunity to display achievements realized in project implementation and benefits gained by beneficiaries of the project. This was a good forum for TASAF to meet members of the general public for clarifications of issues and respond to various inquiries. Training, Research & Participation 12 During the period under review implementation of activities for the Pilot Community Based Conditional Cash Transfer (CB-CCT) continued in the three pilot LGAs of Kibaha, Bagamoyo and Chamwino. The ninth and ten transfers were processed amounting to TZS.235Million. Cumulatively, transfers amounting to TZS9.7Million have been processed, since the programme started. 13 Training in entrepreneurship skills and Business plans started to be conducted to Ward level facilitators in LGAs getting funding from AF-I and AF-II. A total of 16 LGAs have been covered, and 1 facilitators trained. 14 TASAF continued to support Community Foundations (CFs) to carry out their activities; viii

10 Monitoring and Evaluation 15 The impact Evaluation on support to Vulnerable Group subprojects in 5 study districts of Moshi, Kwimba, Lushoto, Makete and Nzega still in progress. Second round of household surveys has been completed in all districts. Follow up surveys (HH_R3) for Moshi and Lushoto could not start as per revised study schedule due to delay in soliciting funds for the work. It is expected to start in September211. According to the revised work schedule, third round surveys for Kwimba, Makete and Nzega districts is planned to start in October, The implementation of Citizen Report Card in Tanzania was completed. The survey findings dissemination meetings with TASAF team, sector ministries, PMO-RALG and stakeholders were conducted in July and August 211. Information Technology/Management Information Systems 17 Provision of technical support and management of computer based Financial Management and Accounting System (FMAS) and Project Tracking Systems (PTS) continued during the period under review. The activities focused on provision of support to CB-CCT MIS development, updating of website and generation of ad-hoc and scheduled reports in FMAS and PTS applications. 18 Cumulatively, a total of 12,94 subproject data sheets have been captured in the system, for NVF and ring fenced projects. Reconciliation of sub-project data between Project Tracking System (PTS) and Financial Management Information System is going on. Finance 19 During the Quarter the Project received a total of TZS 18.67billion from IDA credit, Government and Ring Fenced funds. Cumulatively, the Project has received a total of TZS billion, against the total accessible amount (Credits and Grants) of TZS 442. billion. 2 Total expenditure for the reporting period amounts to TZS Billions 2. Cumulative expenditure to date is TZS billion. 21 Justification status shows the following: For amount disbursed 1 year and above is TZS 28.6 Billion and amount justified is TZS billion, reflecting 76.4%. For amount disbursed between 6 and 12 Months is TZS 1.7 billion and amount justified is TZS.4billion, reflecting 13.78%. For amount disbursed below 6 Months is TZS 2.2 billion and amount justified is TZS.9 Billion, reflecting 4.2%. 2 The exchange rate used in converting USD currency was TZS 1,66 as at 3 th September 211 ix

11 Overall, amount disbursed is TZS billion and amount justified is TZS billion, reflecting 74.8% as at 3 th June, The total approved and disbursed amount in the quarter aggregated to TZS million. Cumulatively, a total of TZS billion has been disbursed to date. Audit 23 Audit section continued with its routine activities of conducting internal audits and review of LGA s internal Audit reports and made recommendations for improvement on project risk areas. 24 Special audit was conducted in Arusha Municipal Council and report issued to Management for their responses and taking corrective actions to address issues raised. Organizational Management 25 Two SET review meetings were organized for Tanzania Mainland and Zanzibar, and 36 th NSC Meetings were conducted. General staff meeting was held for information sharing and other staff matters were discussed. 26 TASAF III -Productive Social Safety Net (PSSN) preparation meetings continued, where thematic groups continued to accomplish agreed assignments, before appraisal Mission. 27 New 11 staff joined TASAF during the quarter Procurement 28 The Unit continued with provision of procurement support services to implementing agencies as per approved Annual Procurement Plan to get procurement requisite capacity to implement the community sub project cycle activities and acquiring various goods and services and, management of contracts. 29 General Implementation Challenges i. Low number of completion certificates issued compared to completed subprojects reported by LGAs. This is due to delay in engaging external sector experts to evaluate completed subprojects by LGAs. ii. Limited available sector experts at LGAs/Islands and ward level for supervision and monitoring of the large number of subprojects pose difficulties in monitoring and follow-up during implementation for some LGAs. iii. Lack of funds for extending Spot Audits to other LGAs iv. Rising operating and maintenance costs due to aged project vehicles. Frequent breakdowns also affect provision of technical backstopping services to LGAs. v. Lack of funds for Staff training vi. Frequent breakdown of HP Compaq laptops and desktops which seemingly to have exceeded recommended lifespan and inadequate financial resources for replacement x

12 vii. Lack of close follow up of implementation of engineering verified subprojects for completion and functionality at LGAs. viii. Responses not timely provided on issues reported by LGAs Internal Auditors and, FOOs by LGA Management 3 Recommendations and Way Forward In order to address the afore-mentioned challenges, the following measures have been taken: i. The LGAs have been argued to expedite the process of evaluating completed subprojects by external experts and apply for completion certificates. ii. TMU will continue providing backstopping support services to slow performing LGAs to reverse the current trends in the areas of completion and justification iii. TMU will dispose of aged vehicles and buy new ones for field works and other operations iv. TMU has started recruitment process to fill some of vacant positions, v. Once funds will be available, some will be allocated for Staff training and development vi. To remind LGA Directors to timely respond to issues reported by LGAs Internal Auditors and FOOs and take corrective actions for improvement.. xi

13 1. PROGRESS OF PROJECT IMPLEMENTATION 1.1 General Overview To achieve the Project Development Objective (PDO), TASAF II is implemented under two major components, namely the National Village Fund (NVF) and Capacity Enhancement (CE). The target groups for the NVF are: the service poor communities who lack basic social and market services such as education, water and sanitation, roads, banking and markets; the able-bodied individuals in food insecure households who are provided with employment opportunities so as to increase their cash income, skills, and opportunities from working in NVF financed public works programs; and households with vulnerable individuals (orphans, disabled, elderly, widows/widowers and those infected or affected by HIV/AIDS) who are provided with assistance to manage sustainable economic activities for income generation purposes. TASAF II also receives funds for supporting community subprojects from other Projects through its Ring Fenced Window: Marine and Coastal Environment Management Project (MACEMP), the Participatory Forest Management (PFM) a sub component under Tanzania Forest Conservation and Management Project (TFCMP), Community AIDS Response Fund (CARF) sub component under Tanzania Commission For Aids (TACAIDS), Community AIDS Response Fund (CARF) sub component under Zanzibar AIDS Commission (ZAC), and Tanzania Poverty Reduction Project (TPRP) under Organization of Petroleum Exporting Countries (OPEC). Following TASAF II principles and procedures these institutions have been disbursing funds to the community for the selected sub project related to their sectors. The Ring-fenced facility operates under the NVF and follows the NVF rules of access and procedures. The Capacity Enhancement (CE) component provides required expertise for communities to efficiently achieve their objectives. Its major functions are to enhance capacities of communities and other stakeholders; to promote transparency and accountability in the management of TASAF funded activities at all levels, and to Promote formation of Voluntary Savings and Investment groups. 1.2 National Village Fund (NVF) Implementation Status During the quarter, a total of 154 Subproject applications were received from Local Government Authorities, in Tanzania Mainland and the Islands of Unguja and Pemba in Zanzibar. An increase of about 66 percent, on 93 applications received in the last quarter of year 21/11, as illustrated in Figure 1 below. These were verified by Project Officers at TMU, to confirm if they complied with NVF criteria for funding before being forwarded to SET for further verification of Sector Norms and Standards. Generally, the number of new applications received is not is many, because, most 1

14 LGAs/VPO-2 had fully absorbed their allocated funds. The number of new applications received during the Quarter, was largely from 63 Identified Food Insecure LGAs/VPO-2, financed under Additional Financing I& II (AF I& II). Implementation in other LGAs focused on other aspects, like; subprojects completion and functionality, justification of disbursed and thereof utilised funds, and supporting communities, which have completed their subprojects, to apply for completion certificates from TMU. Figure 1 : Trend of New Subprojects Applications Submitted by LGAs/VPO-2 in the last Four consecutive Quarters 25 Number of applications Second Quarter 21/11 Third Quarter 21/11 Fourth Quarter 21/11 Period: Quarterly First Quarter 211/12 Cumulatively, 12,391 subproject applications have been received from all LGAs/VPO-2, since the Project was launched in year 25. The number of applications has surpassed the target value of 5,95 subprojects at the design stage. Additional resources obtained in TASAF II; from Ring Fenced Projects and Additional Financing I &II, amounting to US$ 47Million and US$ 65 Million respectively, have greatly contributed to this achievement. Additional Financing I &II, resulted into extension of TASAF II implementation period, from June 29 to June Processing Subprojects for Funding During the quarter under review, a total of 273 Subprojects, with a total disbursement value of TZS 5,89,64,217 were processed and endorsed by National Steering Committee (NSC) for funding. This reflects an increase of about 63 Percent over 167 Subprojects processed in the prior quarter, worth TZS 4,175,938,514. The number of 2

15 subprojects supported across beneficiary categories, for the two quarters and cumulative to date, are as shown in Table 1 and Figure 2 below. The number of subprojects supported across beneficiary categories, for the four years and cumulative to date, are as shown in Table 1 and Figures 2, 3 below Table 1: Number of Subprojects Funded by Beneficiary Category Number of Sub projects funded S/N Beneficiary Category Current Quarter Preceding Quarter Quarterly Increase/ -decrease cumulative 1 Service Poor (SP) 4,294 2 Vulnerable group (VG) ,476 3 Food insecure (FI) ,29 Total ,799 Figure 2: Subprojects Processed for funding by beneficiary categories 6 Number of subproject ,294 5, This quarter Previous Cumulative Quarter Period (Quarterly/Yearly) Service Poor (SP) Vulnerable group (VG) Food insecure (FI) Cumulatively, 1,799 subprojects have been processed and endorsed by NSC for funding, with a total value of TASAF contribution of TZS 189,623, 57, Distribution of funded subprojects by sources of fund is illustrated in Table 2 and Figure 3 hereunder: 3

16 Table 2: Subprojects Processed by Source of Fund, cumulative up to 3th September, 211 Type of funding Source IDA-credit (Main) IDA-Grant (Main) IDA-credit (AF-I) IDA-credit (AF-II) Number of subprojects Funded Value in TZS Percentage to total funding 3,676 1,651,81, ,499 32,8,7, ,21,335, ,31,19,56. 1 Ring Fenced Projects 3,665 36,452,38, Total 1, ,623,57, Figure 3: Total number of Subprojects funded by source of funding Figure 4: Total funds disbursed to subprojects by source of funding 4,5 4, Billions 12 1 Number of subprojects 3,5 3, 2,5 2, 1,5 1, 3,676 2,499 3,665 Amount in TZS Grant Ring Fenced Projects IDAcredit IDA- IDAcredit (AF-I) IDAcredit (AF-II) IDAcredit IDA- IDAcredicredit IDA- Grant (AF-I) (AF-II) Source of fund Ring Fenced Projects 4

17 1.4 TASAF II -Additional Financing I (AF-I) During the reporting period, a total of 143 Subprojects, valued TZS 2,758,453,197., were processed from 61 identified Food Insecure LGAs, and Islands of Unguja and Pemba in Zanzibar. The number of subprojects processed increased by 54% over 93 Subprojects in the last quarter of the previous year, valued TZS 2,219,42736, as shown in Figures 5 and 6. The overall implementation achievement indicates that, 831 Subprojects worth TZS 18,21,335,115. have been processed and endorsed by NSC for funding. Figure 5: Comparison of Number of Subprojects processed by Quarters under AF-I Figure 6: Quarterly Comparison of value of subprojects processed under AF-I Millions 4, 3,5 Number of subprojects Third Quarter 21/11 93 Fourth Quarter21/11 Period:Quarters 143 First Quarter211/12 Amount in TZS 3, 2,5 2, 1,5 1, 5 3,66 Third Quarter 21/11 2,219 Fourth Quarter21/11 2,758 First Quarter211/12 Period -Quarterly 1.5 TASAF II -Additional Financing II (AF-II) Progress During this period, a total of 128 Subprojects, worth TZS 2, 31, 19, 56, TASAF contribution were processed from 61 identified Food Insecure LGAs, and Islands of Unguja and Pemba in Zanzibar. During the quarter, an Engineering Verification was carried out for 14 subprojects in Muheza District Council. Also, provision of support and follow up continued on implementation of Engineering Verified (EV) subprojects. The progress shows that 1,21 subprojects have been completed, out of 1,492 subprojects that had received additional funds for addressing completion and functional deficiencies. 5

18 1.6 Ring Fenced Fund Figure 7: The above picture shows Engineerinsg Verified Subproject successfully completed -two classrooms, 8 Students tables with chairs, 2Teachers tables with chairs, 2 Rain water harvesting tanks (5Ltrs), 6holes Toilets and Solar installation, at Mrangi Secondary School, Musoma DC TASAF II receives funds, under ring fenced arrangement from Marine and Coastal Environment Management Project (MACEMP), the Participatory Forest Management (PFM) a sub component under Tanzania Forest Conservation and Management Project (TFCMP), Community AIDS Response Fund (CARF) sub component under Tanzania Commission For Aids (TACAIDS), Community AIDS Response Fund (CARF) sub component under Zanzibar AIDS Commission (ZAC), and Tanzania Poverty Reduction Project (TPRP) under Organization of Petroleum Exporting Countries (OPEC). Following TASAF II principles and procedures these projects have been disbursing funds to the communities for the selected sub projects related to their sectors. The Ring-fenced facility operates under the NVF and follows the NVF rules of access Marine and Coastal Environment Management Project (MACEMP) The project finances implementation of communities subprojects, in 14 LGAs along the Coastal line, in Tanzania mainland and the Islands of Unguja and Pemba in Zanzibar. During the current quarter, 2 Subprojects worth TZS 29,996,46 were funded in Zanzibar. A total of 783 Sub projects worth TZS 11,648,933,85. have been supported, since the Project joined Ring Fenced partnership with TASAF II Organization of Petroleum Exporting Countries (OPEC) The project finances Subprojects in two regions of Lindi and Mtwara only. OPEC I, covered 9 rural LGAs in Mtwara and Lindi regions. OPEC Phase I, provided US$ 1Million to TASAF II for disbursement to specified LGAs. A total of 38 6

19 communities Subprojects have been supported, valued TZS 1,29,252,14.. The provided fund had been fully absorbed. OPEC Phase II, provided US$ 12Million to TASAF II to finance community Subprojects in both Rural and Urban LGAs, in two Regions of Mtwara and Lindi. Some of the resources have been utilised to finance identified OPEC I subprojects completion and functionality deficiencies. There were no new subprojects supported during the period under review Participatory Forest Management (PFM) This Sub-component of Tanzania Forest Conservation and Management Project (TFCMP) finances activities related to promotion of community based Forest conservation and Management. It provided US $ 4 Million to TASAF II, for supporting communities in 25 selected LGAs, in Tanzania Mainland. The allocated funds have been fully absorbed. Therefore, there were no new subprojects were processed during the period. Cumulatively, 273 communities sub projects worth TZS 4,849,66,769 have been funded Zanzibar AIDS Commission (ZAC) This is a Community AIDS Response Fund Component under T-MAP for Zanzibar AIDS Commission. There were no new subprojects processed during this period. Cumulatively, 256 communities sub projects worth TZS 1,79,672,888 have been processed and funded in Unguja and Pemba, in support of Government s efforts in combating HIV/AIDS Community AIDS Response Fund (CARF) This is a Sub-Component of Tanzania Commission for Aids (TACAIDS). It provided funds through a Ring Fenced window in TASAF II to support community subprojects in combating HIV/AIDS in Tanzania Mainland. There were no new subprojects processed for funding during the period, because the agreement period with TASAF had expired. Cumulatively, a total of 1,973 subprojects, worth TZS 8,214,915,561, have been processed and funded. However, there were 179 subprojects applications returned, because TACAIDS could not provide funds for them. In summary the progress of implementation of community subprojects under Ring Fencing Arrangement in TASAF II is portrayed in Table 3, Figure 7 and 8 below. 7

20 Table 3: Progress of subprojects implementation under Ring fencing arrangement in TASAF II SN Number of Sub projects Value in TZS Project This reporting This Reporting Name/Source Cumulative Cumulative period Period 1 MACEMP Mainland 464 6,766,661,641 Zanzibar ,996,46 4,882,271,444 Subtotal 11,648,933,85 2 ZAC Pemba ,715,742 Unguja 155 1,37,957,146 Subtotal 1,79,672,888 3 OPEC 38 1,29,252,14 4 PFM 273 4,849,66,769 5 TACAIDS 1,973 8,214,915,561 Total 8 3,665 36,452,38,443. Figure 9: Status of funds disbursement by each project in ring fenced arrangement in TASAF II MACEMP; 783; 21% B il lio ns TACAIDS; 1,973; 55% ZAC; 256; 7% OPEC; 38; 1% PFM; 273; 7% Amount in TZS Figure 8: Number of subprojects funded by each Project under Ring fenced partnership in TASAF II MACEMP ZAC OPEC Project Name PFM TACAIDS 8

21 1.7 Sub projects Completion and Certification During the reporting period, a total of 184 subprojects have been reported completed, a decrease of about 61 Percent of 473 subprojects completed in the last quarter of previous year. Cumulatively, 8,717 subprojects have been completed. However, during the reporting quarter, 182 certificates were issued to completed sub projects, compared to 295 issued in the previous quarter, a decrease of about 38 percent. Therefore, a total of 5,977 certificates have been issued to completed subprojects. About 69% of completed sub projects have been issued with completion certificates. Evidently, there is a discrepancy between number of subprojects completed and completion certificates issued. TMU has set up strategies to ensure that all completed subprojects at LGAs/communities are issued with completion certificates. These include formation of task forces and appointment of focal Programme Officer for each zone to team up with respective cluster Finance and Operations Officers (FOOs). Figure 1: Comparative of quarterly completion certificates processed Completion certificates processed 7 Number of certificates Third Quarter Fourth First Quarter 21/11 Quarter 211/12 21/11 Perod: Quarterly 9

22 2. CAPACITY ENHANCEMENT The Capacity Enhancement (CE) component supports capacity building to communities and other stakeholders; to promote Transparency and Accountability in the management of TASAF funded activities at all levels and to promote formation of voluntary savings groups. These three main objectives are set to be achieved through the activities undertaken under Development Communication (DC), Training, Research and Participation (TR&P), Monitoring and Evaluation (M&E), Information Technology and Management Information Systems (IT&MIS) and Community Savings and Investment Promotion (COMSIP). Implementation status of activities for CE component is summarized under each subcomponent as discussed below. 2.1 Development Communication Publicity about TASAF II supported activities and implementation achievements attained so far, continued during the reporting period. To achieve that various means of disseminating information to the relevant stakeholders and the general public were used as follow: TASAF Special Regional Supplements During this period, a total of 132, copies of TASAF Special Regional Supplements were compiled and published on widely circulated local Newspapers country wide, covering the following regions: Rukwa, Manyara, Pwani (Coast), Dodoma, Lindi and Arusha. For each Region, 22, copies of the Regional supplements were printed. The Special supplements featured successfully completed sub projects and success stories on the positive impact of sub projects into lives of the beneficiary communities. The feedback we get from the readers, show that these Regional supplements are well received and they promote TASAF work beyond the Regions in which sub projects are implemented Press Releases Press releases enforce transparency and accountability in implementation community development interventions. During the reporting period, a press release was issued in September, 211. It mainly focused on Subprojects completion, justification of disbursed funds for all LGAs in Tanzania Mainland, as well as, Unguja and Pemba in Zanzibar. This method worked well as a tool to inform the Public on Project progress and triggered weak performing LGAs to initiate strategies for improvement. There has been an increase of sub projects completion, that call for more efforts on processing completion certificates Participation in Public Exhibitions TASAF participated in Farmers Day Exhibition (Nane-Nane), which took place in August, 211 at Nzuguni grounds in Dodoma Region. It took this opportunity to display achievements realized in project implementation and benefits gained by beneficiaries of the project. This was a good forum for TASAF to meet members of the general public for clarifications of issues and respond to various inquiries. Beneficiaries from Rufiji, Kongwa, 1

23 Dodoma and Zanzibar participated by show casing products made and processed by their respective groups Radio Programs During this quarter, 12 Radio Programs were broadcasted. Apart from the managerial aspect on the implementation of TASAF activities, the program featured interviews with beneficiaries of sub projects, who informed of achievements they have realised through TASAF support. Themes covered by the programs were; Community Savings and Investment Promotion (COMSIP), Community Based Conditional Cash Transfer (CB-CCT) and Public Works Programs (PWP). 2.2 Training, Research and Participation (TRP) During the period under review the Training, Research and Participation (TRP) Unit continued to coordinate and oversee the training, research and participation functions at the community, Local Government Authority/VPO-2 and national levels. During the reporting period the following activities were accomplished: CB-CCT Pilot Programme The Community Based Conditional Cash Transfer (CB-CCT) Pilot Programme provides grants to targeted Poor and Vulnerable households upon complying with agreed specific household co-responsibilities like: keeping school age children enrolled in and attending schools and taking children of - 5 years to health facilities and elderly persons visit health facilities on a regular basis. Likely outcomes of the Program will be: increased enrollment rates, improved preventive health care, and raise household consumption and hence improve human capital indicators. In respect of implementation of CB-CCT the following activities were undertaken: Two transfers of Cash were made, as summarised in Tables 4, 5 and Figure 11. It is worth noting that, individual beneficiaries increased by 1,229, during the tenth transfer, as more households were enrolled in the process of scaling up. Table 4: Ninth Transfer of Cash to CB-CCT Beneficiaries Pilot LGA Number of Villages Number of beneficiaries Amount transferred (TZS) Bagamoyo DC 17 6,51 61,518,75. Chamwino DC 11 2,815 26,55,. Kibaha DC 12 2,274 22,587,5. Total 4 11,599 11,611,25. 11

24 Table 5: Tenth Transfer of Cash to CB-CCT Beneficiaries Pilot LGA Number of Villages Number of beneficiaries Amount transferred (TZS) Bagamoyo DC 17 7,12 67,976,25. Chamwino DC 11 3,137 31,12,5. Kibaha DC 12 2,589 26,73,75. Total 4 12, ,62,5. Figure 11 : Amount disbursed to each LGA for Ninth and Ten Transfers Millions Amount Transferred Ninth Transfer Tenth Transfer 1 - Bagamoyo DC Chamw ino DC Kibaha DC Name of Pilot LGA Cumulatively, transfers processed have amounted to TZS. 9.7 Million, since the pilot programme started. Compliance verification forms for the ninth and ten transfers were carried out. Field work for follow up of non compliance cases in treatment villages was conducted Assessment of the Proxy Means Test (PMT) Formula During the reporting period, an assessment of Proxy Means Test (PMT) formula continued to be carried out, in collaboration with an Expert from the World Bank Headquarters in Washington. Activities undertaken included; validation through village Assembly meetings in three Pilot LGAs, and preparation of validation report for sharing with World Bank team. 12

25 2.2.3 Support to Community Foundations in four urban areas Support continued to be provided to Arusha Municipal Community Foundation (AMCF), Kinondoni Community Foundation (KCF), Morogoro Municipal Community Foundation (MMCF), and Mwanza City Community Foundation (MCCF). These involved, followed up on availability of data cards to facilitate the readily access internet and s. The gadgets were secured and arrangements for their delivery are underway, followed up with East Africa Association (EAAG) of Grant makers and the four community foundations with a view to facilitating the four institutions join the EAAG and processed request for funding AMCF-CEO to attend a forum in South Africa Coordinating TASAF Carbon and Climate Change initiative TMU followed up preparation of the Project Idea Note (PIN) as well as accessing REDD 3 resources, as well as, followed up with Africa Climate Policy Centre (ACPC) on the concept note that was submitted in June, Conducting Participation Surveys Preparations for carrying out participation survey in four district councils, namely Kilindi, Handeni, Kiteto and Simanjiro were done. Surveys are conducted with a view to following up on quality of training and participation in the implementation of supported sub projects. Findings and key lessons are shared with other stakeholders, including respective councils Support to students conducting practical training and research A total of 48 Bachelors, Masters and PhD degree Students from institutions of higher learning within and outside the country were supported to undertake practical training and conduct research on TASAF supported activities in different Local Government Authorities Training Ward Level facilitators in Business and Entrepreneurship skills Training in entrepreneurship skills and Business plans to Ward level facilitators in all LGAs being supported under AF-I and AF-II started. A total of 1 facilitators have already been trained in Moshi, Siha,Maswa, Meatu Iringa, Tunduru, Mbarali, Kibaha Bagamoyo, Kilwa, Meru, Arusha,Ukerewe,Manyoni, Iramba and Magu District Councils 3 Reducing Emissions from Deforestation and Forest Degradation in Developing Countries 13

26 2.3 Monitoring and Evaluation Unit The overall objective of Monitoring and Evaluation in TASAF II is to ensure better planning, targeting, provide feedback to relevant stakeholders and timely decision making in order to improve service delivery. During the reporting period, the following activities were undertaken: Dissemination of Information to Stakeholders It is apparent that, dissemination of information to stakeholders, regarding progress of Project activities implementation is one of the core functions of Monitoring and Evaluation process. To achieve this, several reports were prepared and distributed to relevant stakeholders to show progress of Project implementation towards achieving Project Development Objective (PDO). These included Project Quarterly Progress reports, Review of LGAs Progress Reports, Annual Progress Report, Management Reports and Ad hoc reports, as they were demanded by Stakeholders Studies and Surveys TASAF II VG Impact Evaluation Study Follow up and supervision of TASAF II-VG Impact Evaluation Study in five selected survey District Councils, which started in year 28, continued during the Quarter. The study districts include: Moshi, Lushoto, Kwimba, Nzega, and Makete. The objective of the study is to assess the impacts of supporting Income Generating interventions for the poor and Vulnerable Groups (VG) such as Orphans, Elderly, People with disability, Widows, Unemployed youths etc. The Consultants undertaking this study is Ms. Economic Development Initiatives (EDI) of Bukoba, Tanzania. The progress of the study can be summarized as follows; Second Round Survey (HH_R2) has been completed in three Districts of Kwimba, Makete, and Nzega, which had lagged behind. Funds for implementation were disbursed to LGAs for the groups in the control Villages. Therefore, all participating LGAs have completed their second round survey (HH_R2). Unfortunately, delays occurred, as the third round (HH_R3) for Moshi and Lushoto could not occur, according to revised schedule. Funds were not timely mobilized. The work is now expected to start in October 211. TOR for third round of Household Survey (HH_R3) for Kwimba, Makete, and Nzega was prepared and the assignment is expected to start in November or December, 211. TMU conducted field visits to Kwimba, Nzega, Moshi and Lushoto to assess the progress of implementation and provision of technical support. Some groups plans were revised, based on discussions held with them, to address challenges encountered, so as to expedite implementation. 14

27 Citizen Report Card in Tanzania During the reporting period, implementation of Citizen Report Card (CRC) in Tanzania through TASAF was completed. The study objective was to assess Citizen s satisfaction with delivery of Public Services. The study was carried out by experienced Consultants, MS Public Affairs Foundation (PAF) of India, in collaboration with. The survey explored the delivery of public services in four selected sectors; Water, Education, Health and Roads. Key indicators measured for each service were; access, availability, usage, problem, resolution, satisfaction, corruption and overall satisfaction. Dissemination meetings were conducted to respective sector ministries, in Tanzania Mainland, including PMO-RALG and Zanzibar. Ultimately, a wider Stakeholders dissemination meeting, including Media people was conducted in August, 211. The study findings indicated that, the highest overall satisfaction was 3% on District hospitals (Health) and other services were lower. Service Providers in the covered sectors are responsible for initiating reform actions for improvement Community Score Card for CB-CCT Pilot Programme The Community Score Card (CSC) was conducted for CB-CCT Pilot programme, to assess the extent to which the CB-CCT Pilot programme has an impact on beneficiaries with regard to accessing Education and Health services, as well as, to get perceptions of beneficiaries and stakeholders on the CB-CCT Pilot program itself, in the selected intervention areas. The assignment was carried out by MS Public Affairs Foundation (PAF), in selected communities in three Pilot District Councils of Kibaha, Bagamoyo and Chamwino. The draft report has been submitted to TMU for comments CB-CCT Impact Evaluation Study CB-CCT follow up Household Surveys started, during the reporting period. The Consultants, Ms. Economic Development Initiatives (EDI) has accomplished work in two LGAs of Kibaha and Bagamoyo. Field work had started in Chamwino. In addition, a CB-CCT Focus Group-based Qualitative Evaluation had been completed. Draft report was submitted for TMU and Bank review Information Technology - Management Information System IT/MIS provides routine supports to TMU and LGAs/VPO-2 on issues relating to IT Systems and associated infrastructure. Regular maintenance and troubleshooting of ICT equipment to ensure they operate smoothly and efficiently. In addition TASAF stakeholders were provided with physical and financial information about the progress of sub-project activities, and permit field officers to track the movement of resources as sub-projects are implemented. 15

28 Status of Implementation The activities carried out during this period are as summarized below: Data capture and verification Data capturing, involving entering of subprojects details and updating Project Tracking System (PTS) continued during this period. A total of 596 subprojects records have been captured in PTS during this period. This makes a total of 12,94 subprojects details captured in PTS up to 3 th September 211. Moreover, sub-project data reconciliation exercise, between Project Tracking System (PTS) and other sources within TASAF continued Technical and Operation support to TMU and LGAs/VPO-2 Under this area the following were the achievements: i. Generated and disseminated ad-hoc and scheduled reports to various stakeholders as and when needed in order to facilitate decision making and implementation of various activities, ii. Monitors the execution of automatic backup, iii. Provided technical and operational support to computer users in problems related to software and hardware Construction of LAN to the new rented building During the period, the IDA issued a No Objection for the contract on the construction of LAN at new rented building. The contract has been signed, and the assignment started and estimated completion date is Mid October, Upgrade of Website Terms of reference to engage consultant to carry out that assignment was developed and sent to World Bank for clearance. Follow-up is being done to ensure the contract is cleared. However, as a part of regular website maintenance, minor upgrade was done by the developer of website, whereby recent security features were incorporated Facilitating Implementation of CB-CCT Pilot Program The following activities were undertaken to support implementation of CB-CCT pilot program: i. Coordinated the exercise of verification of pending cases in Kibaha, Bagamoyo and Chamwino by re-collecting the correct information and update CB-CCT MIS. ii. Provided support to staff who went to the villages in CB-CCT Pilot LGAs, to make follow-up on non-compliance by furnishing them with necessary information. 16

29 iii. Prepared and shared TOR to facilitate engagement of Consultant to modify/develop targeting module, based on new recommended targeting mechanism that uses the new PMT model. iv. Provided support to ninth and tenth payment cycles of CB-CCT beneficiaries in 4 treatment villages, in three pilot LGAs, whereby transfers were generated in MIS and various forms to facilitate payment. 2.5 Community Savings and Investment Promotion (COMSIP) Community Savings and Investment Promotion is a new initiative being implemented under TASAF II aimed at promoting the culture of saving among the poor individuals and groups. COMSIP enables poor people to form groups and mobilize savings from their own resources and invest in income generating activities. A total of 1,778 voluntary savings groups have been formed with a total of 21,712 individual savers in the targeted 46 LGAs. Some groups have invested in other income generating subprojects, like rice production, Vegetables growing, Poultry keeping, Kiosks etc. During the reporting period the following activities were accomplished: Compiling reports on the status of COMSIP groups Provision of technical support to COMSI groups on loans management and other group activities 2.6 Audit Auditing in TASAF is aimed at contributing to improved management and cost effectiveness of the Project delivery and internal operational activities. It is also aimed at strengthening accountability for funds advanced for subprojects in line with laid down policies and procedures so as to achieve the Project Development Objective (PDO) and therefore contribute to the government efforts towards poverty reduction. Therefore a risk based audit approach is advocated for all TASAF audit activities at all levels. Implementation status During the quarter, the following were activities were accomplished: Conducting Internal Audit at TMU During the quarter, the directorate carried out post audits at TMU on expenditures for the period April to June 211 including audits of Imprests. It also carried out audit of Cash and Bank for Local TZS accounts and special accounts denominated in USDs. The reports are being compiled for discussions with Management Conducting Special Audits 17

30 During the period, no special audits were conducted. However, one spot audit was conducted at Arusha Municipal Council; the report was prepared and issued to Arusha MC for Management actions. The following key issues emerged from this audit, Poor documentation at CMC level, Poor management of supervision funds and absence of supervision reports, Lack of bank reconciliations for both NVF and Operational accounts operated at the council, Inadequate technical support to CMCs in implementing completion and functionality of subprojects causing slow progress of work and Lack of internal audits for TASAF supported activities Review of LGA Quarterly Internal Audits Reports. During the quarter under review, the directorate continued to receive and review quarterly internal audits reports from LGAs internal auditors. About 21 internal audit reports were received from various LGAs during this quarter under review. The Main issues emerging from these reports were summarised for Management to take decision. 2.7 Organisational Management Aspects HR Unit continued to assist on the followings; Provide Strategic Human Resources Support to TASAF Business, Development and Maintenance of excellent rapport with both TMU and individual managers. As well, help managers to manage employment relations more effectively by offering them consistent direction, support and encouragement. Also, engage in the wider business of TASAF, field visits; provide logistical support to all NSC/TMU, staff meetings and World Bank Missions Staffing Recruitment for Vacant Posts: A No Objection for interview the vacant positions were granted on May 16, 211. An interview panel of eight members with various professional backgrounds was appointed. Interviews were conducted from 27 th July, 211 to 3 rd August, 211. Consequently, 11 staffs have been recruited who are expected to report on duty in October and November, 211. Also, an interview for the post of TASAF Executive Director was conducted on 21 st September, 211. However, recruitment has not yet been done NSC Meetings During the period under review, the 36 th NSC Meeting was conducted. NSC Members conducted field visit to Iringa Region, from 12 th -15 th September, 211 to see actual progress of Project s activities implementation and share experiences with key implementers, as well as, beneficiaries. 18

31 2.7.3 SET Technical Review Meetings During the period under review, two review meetings were organized and held in Tanzania Mainland and Zanzibar respectively General Staff Information Sharing Meeting During this reporting period, the information sharing meeting for all staff was conducted on Friday, 23 rd September, 211 at White Sands Hotel, in Dar es Salaam. It was a good opportunity for all Staff to share information pertinent to organization, the progress of where we are, and where we are going were discussed TASAF III Preparation meetings Also, meetings for TASAF III -Productive Social Safety Net (PSSN) preparations were facilitated and successfully undertaken. The preparations are still going on; thematic groups are still working on their allocated assignments to meet the set deadlines Disposal of aged Vehicles The process for disposal of 57 aged Vehicles commenced during the month of September, 211. The team from Ministry Of Finance (MoF) is preparing the report for the exercise to be carried out. 19

32 3. FINANCIAL AND PROCUREMENT ASPECTS 3.1 Finance The Directorate of Finance supports Project Management by ensuring sound Financial Management and Accounting Systems (FMAS) are in place and adhered to. In addition, it ensures that appropriate internal controls are maintained to generate accurate financial information to support TASAF activities at all levels of TASAF operations Implementation Status i) Disbursement of Funds to LGAs/VPO-2 and Communities During the quarter, implementation of community sub-projects went on well and the support provided by LGAs/VPO-2 experts was adequate to allow fund absorption. All LGAs have qualified to Local Government Development Grant and therefore 1% disbursement is now made to all LGAs. The total approved and disbursed amount in the quarter aggregated to TZS 235,683,75 as shown in Table 6 below. Cumulatively, a total of TZS.161, 431,96, were approved and fully disbursed. Table 6: List of Disbursement Batches (July-September, 211) BATCH APPROVED AMOUNT (TZS) TRASFERED AMOUNT (TZS) Noncompliant Noncompliant DATE NO. Compliant LGAs LGAs TOTAL Compliant LGAs LGAs TOTAL ,621,25. 11,621,25. 11,621,25. 11,621, ,62,5. 125,62,5. 125,62,5. 125,62,5. TOTAL 235,683,75 235,683,75 235,683,75 235,683,75 TACAIDS with ring-fenced funds under the TMAP CARF component had no disbursements during the quarter as all received funds had been disbursed by 3 th June 21 and no further funds have been received to date. Cumulatively TZS 8,12,658,51.7 were approved and TZS 7,871,947, disbursed to community subprojects leaving an amount of TZS 248,71, deficit out of approved applications not disbursed due to inadequate funds replenishment from TACAIDS CB-CCT is a Pilot Community Based Conditional Cash Transfer programme in three Pilot District Councils of Kibaha, Bagamoyo and Chamwino. During the quarter, ninth and ten transfers amounting to TZS.235, 683,75. (coloured) were disbursed. So far disbursements to beneficiaries have aggregated to TZS 9,872,5., as shown in Table 7 below: Table 7: Disbursement of Cash Transfers to three Pilot LGAs-Bagamoyo, Chamwino and Kibaha (UP TO 3 TH SEPEMBER, 211) 2

33 Date TRANSFER No. Compliant LGAs APPROVED AMOUNT TRASFERED AMOUNT Noncompliancompliant Non- LGAs TOTAL Compliant LGAs LGAs TOTAL ,55,. 63,55,. 63,55,. 63,55, ,57,. 63,57,. 63,57,. 63,57, ,461,25. 6,461,25. 6,461,25. 6,461, ,376,25. 61,376,25. 61,376,25. 61,376, ,951,25. 68,951,25. 68,951,25. 68,951, ,612,5. 118,612,5. 118,612,5. 118,612, ,725,. 112,725,. 112,725,. 112,725, ,942,5. 115,942,5. 115,942,5. 115,942, ,621,25. 11,621,25. 11,621,25. 11,621, ,62,5. 125,62,5. 125,62,5. 125,62,5. TOTAL 9,872,5. 9,872,5. 9,872,5. 9,872,5. Additional Financing I (AF I) Additional Financing I was approved to address food insecurity in identified 4 LGAs and later was increased to 61 LGAs and Unguja and Pemba, despite dropping out 4 LGAs which were assessed as being food secure. During the quarter two batches (19-2 coloured) were approved and disbursement of TZS 2,94,89, was made. Cumulatively, TZS 17,57,252,57.68 have been approved and disbursed to respective LGAs/VPO-2. (Refer Table 8 below). Table 8: Additional Financing- I (AF-I) funds disbursement Batches (up to 3 th September, 211) Date BATCH No. Compliant LGAs APPROVED AMOUNT TRASFERED AMOUNT Noncompliant Non-compliant LGAs TOTAL Compliant LGAs LGAs TOTAL ,763, ,763, ,763, ,763, ,187, ,187, ,187, ,187, ,948,155, ,948,155, ,948,155, ,948,155, ,33, ,33, ,33, ,33, ,78, ,78, ,78, ,78, ,746, ,746, ,746, ,746, ,28, ,28, ,28, ,28, ,633, ,633, ,633, ,633, ,175,75, ,175,75, ,175,75, ,175,75, ,323, ,323, ,323, ,323, ,522, ,522, ,522, ,522,

34 APPROVED AMOUNT TRASFERED AMOUNT Date BATCH No. Compliant LGAs Non-compliant LGAs TOTAL Compliant LGAs Noncompliant LGAs TOTAL ,376, ,376, ,376, ,376, ,734, ,734, ,734, ,734, ,7, ,7, ,7, ,7, ,11, ,11, ,11, ,11, ,789,132,2.49 1,789,132,2.49 1,789,132,2.49 1,789,132, ,113, ,113, ,113, ,113, ,66,51,6.72 1,66,51,6.72 1,66,51,6.72 1,66,51, ,739, ,739, ,739, ,739, ,214,35,8.38 1,214,35,8.38 1,214,35,8.38 1,214,35,8.38 TOTAL 17,57,252, ,57,252, ,57,252, ,57,252,57.68 Additional Financing- II (AF -II) Additional Financing II (AF II) operations commenced through funding the Engineering Verified subprojects and five batches had been verified and a total of TZS 42.7 billion have been disbursed to complete respective uncompleted community subprojects,(refer Table 9). The 63 LGAs have continued to access AF II funds to address food insecurity and to date three batches have been approved and transferred, amounting to TZS 1.8 billion(refer Table 1). Table 9: Additional Financing II (AF-II) Funds disbursement batches up to 3th completion and Functionality) September, 211 (for Date BATCH No. Compliant LGAs APPROVED AMOUNT Non-compliant LGAs TOTAL Compliant LGAs TRASFERED AMOUNT Non-compliant LGAs TOTAL ,884,454,488. 9,884,454,488. 9,884,454,488. 9,884,454, ,265,49,852. 8,265,49,852. 8,265,49,852. 8,265,49, ,34,913,491. 9,34,913,491. 9,34,913,491. 9,34,913, ,833,848,148. 7,833,848,148. 7,833,848,148. 7,833,848, ,693,944,. 7,693,944,. 7,693,944,. 7,693,944,. TOTAL 42,712,29, ,712,29, ,712,29, ,712,29,979. Table 1: Additional Financing II (AF-II) Funds disbursement batches VG and PWP as at 3th September,

35 APPROVED AMOUNT TRASFERED AMOUNT Date BATCH No. Compliant LGAs Non-compliant LGAs TOTAL Compliant LGAs Non-compliant LGAs TOTAL ,84, ,84, ,84, ,84, ,375, ,375, ,375, ,375, ,459, ,459, ,459, ,459,825. TOTAL 1,791,639, ,791,639, ,791,639, ,791,639, OPEC FUNDS OPEC with ring-fenced funds did not disburse any funds during the quarter as no replenishment of applied funds had been received. Disbursements of TZS 1,811,668,285. during the previous quarter remain on record to-date. However, cumulatively TZS 5,613,17,975. were approved. (Refer Table 11) Table 11: OPEC II Funds disbursement batches Date BATCH No. Compliant LGAs APPROVED AMOUNT TRASFERED AMOUNT Noncompliant Non-compliant LGAs TOTAL Compliant LGAs LGAs TOTAL ,356,747,817. 3,356,747,817. 1,813,668,285. 1,813,668, ,256,423,158. 2,256,423,158. TOTAL 5,613,17,975. 5,613,17,975. 1,813,668,285. 1,813,668,285. ii. Replenishment of Funds a) IDA Credit and Grant During the Quarter, no application was processed for replenishment of funds from neither IDA Credit nor Grant. One application (number 19) was processed for CB-CCT Trust Fund totaling USD 94,32.92 (Table 12 refers). Two applications were processed for the Additional Financing I (AF I) (Number 12&13) totaling USD 2,14, (Table 13 refers). Another three applications were processed for Additional Financing II (AF II) (Number 5-7) totaling USD 5,717, (Table 14 refers). OPEC II had two applications (6-7) totaling USD 692,567.9 OPEC II had two applications (4-5) totaling USD 677,25.41 (Table 15 refers) Table 12: Replenishment applications CB-CCT TF 9491 APPLICATION S/N DATE NO. CURRENCY AMOUNT Jul-11 TASAF II 19 USD 94,32.92 Total 94, Table 13: Replenishment applications AF-I 4636 TA 23

36 APPLICATION S/N DATE NO. CURRENCY AMOUNT 12 1-Jul-11 TASAF II 12 USD 1,722, Jul-11 TASAF II 13 USD 292,22.83 Total 2,14, Table 14: Replenishment applications AF-I 4741 TA APPLICATION S/N DATE NO. CURRENCY AMOUNT 5 1-Jul-11 TASAF II 5 USD 93, TASAF II 6 USD 1,889, TASAF II 7 USD 2,925, Total 5,717, Table 15: Replenishment applications-opecii 132OP APPLICATION S/N DATE NO. CURRENCY AMOUNT 6 15-Aug-11 TASAF II 6 USD 31, Aug-11 TASAF II 7 USD 382, Total 692,567.9 b) Counterpart Funds By the end of the Quarter, the Project had received Government contribution of TZS 1. billion for the 1st quarter 211/212. Cumulatively, from the beginning of the project to date, the Government has contributed a total of TZS 16,442,,. (Table 16 refers). GOT projected contribution to project closure is US$ 21.5m (equivalent to TZS 21,5,,. at negotiation inclusive of AF I and AF II). Table 16: Contribution of Counterpart funds-got (in TZS) DATE AMOUNT ,,,. TOTAL 1,,,. c) Justification of Advances 24

37 Justification of funds disbursed for subprojects implementation and facilitation have been submitted smoothly especially for the LGA s/zanzibar (Unguja and Pemba) with full time Village Fund Justification Assistants and Village Fund Coordinators. In LGAs without full time VFCs and VFJAs, reminders have been made to respective LGA Directors to allocate full time qualifying officers and ensure smooth flow of justification reports. The justification status shows that as at 3/9/211 TZS billion were justified against TZS 28.6 billion disbursed above 1 year; reflecting 76.4% of amount disbursed. For amounts disbursed between 6 and 12 months (TZS 1.7 billion) TZS.4 billion have been justified reflecting 13.78% of disbursed amount, and for amounts disbursed below 6 months (TZS 2.2 billion) TZS.9 billion have been justified which is 4.2% of disbursed amount. In overall TZS billion representing 74.8% of the total amount disbursed of TZS billion has been Justified as at 3 th September, 211. We expect joint backstopping teams from TMU to slow performing LGAs will accelerate the completion and justification status to above 9% for amounts disbursed over one year by end of 2 nd Quarter of the 211/212 financial year Sources and Uses of Funds The Project received a total of TZS 25,616,924, and used a total of TZS 25,747,329,8.23 respectively from IDA grant and credit, as well as GOT and Ring fenced funds during the quarter. To date the Project has received a total of TZS 311,82,2,76.82 against the total allocation (Credits and Grants) of TZS 36,655,878,35., while the total expenditure is TZS 295,718,511, Table 17 below shows sources and uses of funds for each source during the quarter. Table 18 shows the cumulative figures to date for each source. The Project received a total of TZS 18,672,761,833.7 and used a total of TZS 18,842,23,981.3 respectively from IDA grant and credit, as well as GOT and Ring fenced funds during the quarter. To date the Project has received a total of TZS 381,547,485, against the total allocation (Credits and Grants) of TZS 442,45,123,2.4, while the total expenditure is TZS 365,615,58, Table 17 below shows sources and uses of funds for each source during the quarter. Table 18 shows the cumulative figures to date for each source Table 17: Source and Expenditure of Funds for the quarter ended 3th September, 211 (In TZS) SOURCE RECEIPTS EXPENDITURE IDA Credit / Grant (Main Project). 954,183,

38 IDA Credit Additional Financing I 9,491,96, ,685,476,79.96 IDA Credit Additional Financing II 3,343,682, ,75,815, Government of Tanzania 1,,,. 311,72,74.5 OPEC Fund I. OPEC Fund II 1,149,661, ,317,943. Forestry (PFM).. MACEMP.. ZAC.. CB-CCT 156,542, ,858,534. TACAIDS.. Public Education Fund. 5,668,855.2 Exchange Gain 3,531,778, Total 18,672,761, ,842,23,981.3 Table 18: Cumulative Sources and Expenditure as at 3th September, 211 SOURCE RECEIPTS TO END OF PROJECT RECEIPTS TO DATE EXPENDITURE TO DATE UN USED RECEIPTS TO DATE IDA Credit / 356,9,,. 315,637,958, ,66,582, ,571,375, Grant Government of 21,5,,. 16,442,,. 15,17,22, ,334,797, Tanzania OPEC Fund I 12,436,593, ,436,593, ,44,43, ,392,,19, OPEC Fund II 19,92,,. 3,813,481, ,52,43,99. 1,311,51, Forestry (PFM) 5,378,672,74.3 5,378,672,74.3 3,716,893, ,661,779, MACEMP 12,,,. 11,843,747, ,893,29,6.19 1,96,538, ZAC 1,77,442, ,77,442, ,77,442, CB-CCT 3,12,658,9. 1,655,935, ,468,328, ,67, TACAIDS 8,978,755, ,978,755, ,978,755, Public 13,,. 13,,. 129,811, ,811,355.2 Education Fund Other Income 18,119, ,119,168.2 EXCHANGE GAIN. 3,531,778, ,531,778,481.5 Total 442,45,123, ,547,485, ,615,58, ,55,428, Table 19: IDA Cumulative Expenditure to date (USD) 26

39 S/N Category Description Allocated Current quarter expenditure Cumulative expenditure Cumulative percentage 1A-C SUB PROJECTS 138,15,2. 2,1, ,134, GOODS 6,881, ,881, CONSULTANCY 14,511, , ,63, SERVICES 4 TRAINING 13,41,58.2 8, ,8, OPERATING 2,583, , ,135, COSTS 6 UNALLOCATED 1,485,.... TOTAL 195,12,12.8 3,32, ,222, Table 2: CB-CCT Cumulative Expenditure to date (USD) 1 GOODS 235, , , CONSULTANTS 683,99. 71, , TRAINING 232,6. 232, CONDITIONAL 4 CASH TRANSFER 727,5. 347, , UNALLOCATED. 2,. -2,. Total 1,879,915. 1,541, , Table 21 : AF I-Cumulative Expenditure to date (USD) S/N Category Description Allocated Disbursed Undisbursed Cumulative percentage 27

40 S/N Category Description Allocated Disbursed Undisbursed Cumulative percentage 1A-D SUB PROJECTS 27,2, ,19, ,91, GOODS... 3 CONSULTANCY SERVICES 1,581, , , TRAINING 1,581, , ,12, OPERATING COSTS 1,581,44. 1,31, , UNALLOCATED. 5,878, ,878, TOTAL 31,945,89. 21,548, ,396, Table 22: IDA -AFII Cumulative Expenditure to date (USD) S/n Category Description Allocated Disbursed Undisbursed Cumulative percentage 1A-D SUB PROJECTS 31,62,14. 18,259, ,36, GOODS... 3 CONSULTANCY SERVICES 1,581,44.. 1,581,44. 4 TRAINING 955, ,8. 5 OPERATING COSTS 1,581,44. 31, ,552, UNALLOCATED. 7,81, ,81, TOTAL 35,738,1. 25,372, ,368, Deviations and Reasons Tables show that cumulatively all categories are still within allocated funds. However, the main TASAF II Credit No. 42 TA and Grant No. H 134 TA, have been fully absorbed. Current disbursements are accessed through the two Additional Financing facilities (AF I and AF II) CB-CCT pilot preparatory operations are complete and the main preoccupation is the cash transfers to the targeted beneficiaries with corresponding impact assessment and reviews. After reviewing the Proxy Means Testing formula and agreed upon, CB-CCT beneficiaries will access the AF I funds under category 1 D External Audit for the Year 29/21 Accounts The External Audit for the year 21/211 accounts is in progress with NAO audit teams conducting field visits to sampled 34 LGAs and in Unguja and Pemba. We expect this audit 28

41 exercise will be completed in due course and an audit report is expected to be issued on time for submission to IDA before the due date of 31/12/ Procurement Issues Introduction: This status on Procurement and related activities for TASAF II aimed at providing procurement support services to implementing agencies to get procurement requisite capacity to implement the community sub project cycle activities and acquiring various goods and services. During this period, provision of usual services and assistance in matters related to procurement at TMU and LGA level continued Since each contract line involves a series of procurement actions, the status for each contract is provided in the following section below Implementation Status Management of contracts for supplies and services Coordination of management of contracts for supplies and services continued including preparing call off orders as required, recommending inspection committees. All aimed at making sure that goods and services for office operation are acquired timely and in adherence to contract requirements Consultancy services to Conduct Citizen Report (CRC) design and implementation in TASAF supported LGAs/Islands During the quarter, the consultant conducted a series of dissemination meetings to the sectors involved and stakeholders workshop to present findings and consult on reforms. The execution of the assignment was concluded at the end of August, 211. Final payment was done and contract closed PWP Impact Evaluation A No Objection for SSS justification is still under consideration by IDA Construction of LAN in the new rented office No Objection was granted by IDA and contract signed early Septembers 211. LAN construction work is about to be completed Impact Assessment of SP and Capacity Enhancement (Training and COMSIP) No objection was granted by IDA early July, 211 to issue RFP to short listed consultants and consultants were issued RFP in the mid of the same month. A pre-proposal meeting was scheduled early August, however could not be held as none of consultants attended the 29

42 scheduled conference. In the course of preparing proposals, some clarifications raised by consultants were responded. Out of four shortlisted consultants sent with RFP, two submitted proposal by the submission deadline. Evaluation of technical proposal is underway and completion has been affected by ongoing TASAF III preparations, as experts responsible for evaluation are also responsible for project preparations Upgrade website to have dynamic link and Mapping No Objection for TOR was granted by IDA late August, 211. Advertisement of request for expression of interest is pending approval of revised cost included in updated Procurement Plan Five studies for preparation of TASAF III All assignments have been concluded and contracts closed CB CCT Pilot Program Process Evaluation A contract was signed early August 211, and execution commenced immediately and is on track, so far, two outputs have been submitted Security services The execution of contract is ongoing Furniture Execution is underway; fabrication of furniture is going on Procurement of vehicles under OPEC funds Contract was signed and partial delivery done Service and Maintenance of Air Conditions and Generator The execution of contract is ongoing Disposal of Vehicles Disposal processes are going on Procurement of Photocopy Machine under OPEC funds Frequent breakdown of photocopy machine due to ageing of the equipment necessitated replacement so as to smoothen office operations, thus a Photocopy Machine was procured in this quarter Technical Audit in TASAF operating areas No Objection for TOR was granted by IDA. Request for expression of interest was advertised and deadline for submission was August 211. Short listing is under conclusion. 3

43 Preparation of Annual Procurement Plan Following training on Procurement Management Information System by the Public Procurement Regulatory Authority done to TASAF procurement staff, drafting of Annual Procurement Plan for financial year 211/12 was done in the system and draft APP has been shared with IDA. The system is easy to use and Stores database for past information and can be accessed when required, can publish tender opportunities and award directly when users are enabled, but currently tenders are submitted to PPRA. The system analyses performance indicators that facilitate detection of problems and take corrective measures easily, and has capability of producing quarterly reports. 31

44 4. SAFEGUARDS AND ENVERONMENTAL ASPECTS 4.1 Reporting of Environmental Issues There has been a positive response from LGAs/VPO-2 on reporting environmental issues in their quarterly progress reports. During the reporting period, a good practice of addressing environmental issues were observed in Musoma District Council, where trees were planted around constructed secondary Schools to preserve environment and provides shades for students. Tree Nursery, where 55, trees have been grown, was established by PWP beneficiaries at Chimati Village. These are expected to be distributed to public institutions like Schools and offices for planting around their buildings and selected open areas. Some trees will be sold to individual people in the village and neighbouring villages. Figure 12: The above picture shows portion of trees Nursery grown by PWP Beneficiaries at Chimati Village in Musoma DC, which was visited by External Auditors 32