INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2649. Date ISDS Prepared/Updated: 06/26/2009 I. BASIC INFORMATION. A. Basic Project Data

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date ISDS Prepared/Updated: 06/26/2009 I. BASIC INFORMATION A. Basic Project Data Country: Brazil Project Name: Second Bolsa Família Task Team Leader: Manuel Salazar Estimated Appraisal Date: September 8, 2009 Managing Unit: LCSHS-DPT INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Project ID: P Report No.: AC2649 Estimated Board Date: November 24, 2009 Lending Instrument: Adaptable Program Loan Sector: Other social services (97%);Central government administration (2%);Subnational government administration (1%) Theme: Social safety nets (100%) IBRD Amount (US$m.): IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 12, , B. Project Objectives [from section 2 of PCN] This is the second phase of the proposed World Bank support for Bolsa Família Program with its two-phase programmatic series of operations. APL-1 covered the transitional ( ) and the expansion and stabilization ( ) phases. It focused on improving the basic architecture of the program and consolidating the integration of the various CCT programs into one and scale-up its operation. While the SWAp component was fully disbursed by December 2006, the technical assistance component has been extended until December 31, 2009 to continue the support on the program monitoring and evaluation. Because the APL supports the Government#s own safety net reforms along with co-funding the Bolsa Família Program, the ultimate development objective of the Bank#s project are the same as those of the program. The broad objective of the program is to reduce poverty and inequality through the provision of direct monetary transfers to poor families and incentives for investing in human capital. As the World Bank contribution is small compared to the total costs of the conditional transfers part of BFP), it would be most accurate to state that overall reduction of

2 poverty and inequality is the ultimate objective of the Bank#s assistance under the proposed project. The proposed second phase of the project ( ), would seek to further strengthen the BFP#s ability to achieve these broader objectives of reducing poverty and inequality and promoting human capital development by supporting: (a) the strengthening of the program#s overall governance through enhanced basic program management functions and accountability, oversight and control functions, in three axes: the registry of beneficiaries (Cadastro Único), management of benefits, and monitoring of conditionalities; (b) the consolidation of the program monitoring and evaluation system; (c) the integration of social protection programs, with Bolsa Família as the central intervention to promote innovations and strategies for beneficiaries# graduation from poverty through investments in human capital such as additional education incentives, and links with complementary actions outside the program#s jurisdiction such as social and productive inclusion interventions and job and productivity programs. C. Project Description [from section 3 of PCN] The proposed second phase of the APL project ( ) would consist of four components, including co-financing the conditional cash transfers component and four technical components to help deepen the basic architecture of the program, strengthen oversight and controls, and address second-generation issues on social protection programs articulation. Component 1: Conditional Cash Transfers (Grants) ($185 million). This component would continue co-financing the program via a program-performance-based Sector Wide Approach (SWAp). Specifically, the project would disburse funds against cash transfers (grants) to poor families upon their compliance with key human development conditionalities. Financing will flow directly from the Treasury to the Caixa Economica Federal after the Ministry of Social Development (with program management by the National Secretariat for Citizen Income) approves the benefit payment roster, #Folha de Pagamento#. CEF will then transfer the money to a pooled account, which beneficiaries can access with a debit card. Component 2: Consolidation of the Bolsa Família Program and the Cadastro Unico. ($19.3 million). The consolidation of the program seeks to permanently update program#s design and adjust operational processes within the Ministry of Social Development. This component, carried out by the National Secretary for Citizen#s Income (SENARC), would finance activities aimed at strengthening program#s overall management, governance and accountability through four channels: enhanced basic program management functions, accountability and oversight and control functions, management of program#s benefits and conditionalities, and strengthening the Cadastro Unico. # Component 2A. Program Management. ($6.4 million; Bank Financing: $3.2 million) This sub-component would support activities to strengthen the basic management and consolidation of the functions of the program by the MDS and its decentralized implementation by states and municipalities. This includes: # Component 2B. Management of program#s conditionalities (US$2.5 million; Bank Financing: $1.25 million). Management of program#s co-responsibilities involves a set of processes aimed at 1) Monitoring compliance with co-responsibilities in education and health at local level as pre-requisite to authorize payments, 2) Registering information about compliance, 3) Ensuring that families comply with co-responsibilities, and 4) Supporting families in non

3 compliance situations.. Processes involved in the management of program#s conditionalities are carried by the Ministries of Social Development, Health and Education at central and local level and the municipalities. This subcomponent is aimed at strengthening instruments, implementation and management arrangements to improve and consolidate the above mentioned processes. # Component 2C. Management of Program#s Benefits (US$2 million; Bank Financing: $1 million). The management of benefits is a set of processes and activities that the program carries out to ensure that benefits are regularly transferred to beneficiary families. The management of benefits in Bolsa Familia involved three set of processes and activities: 1) Authorization of payments #information on families composition, updated information on the registry, analysis of compliance with co-responsibilities by the families; 2) Management of benefits at local level #processes and regulations to block, unblock, cancel, reinstatement and suspension of benefits, according to programs rules; and 3) Payment #logistics, mechanisms to reach families in remote areas, and strategies for beneficiaries to better manage their payments. This component, implemented by SENARC would support MDS to improve the management and logistics of program#s payments cycle, through improving and strengthening existing mechanisms used by MDS and the payment agency (CEF). # Component 2D. Cadastro Unico (US$5.4 million; Bank Financing: $2.7 million). The Cadastro Único is the federal government instrument to identify and measure poverty of low income families, and is the mandatory tool to select beneficiaries of federal social programs. The Cadastro Unico is also used by State and Municipal authorities to target their own social programs. The Project will support the consolidation of the Cadastro Unico as the main mechanism for the registry of low income families in order to improve the information on the socio-economic status of the target population, improve beneficiary selection for existing and future social programs, to minimizing exclusion and inclusion errors, and to serve as a reference for the articulation of social policy reforms and interventions. Component 3: Consolidation of the Monitoring and Evaluation System. ($9.5 million; Bank Financing: $4.5 million). This component, to be implemented by the Secretary for Evaluation and Information Management (SAGI), would support the Secretary to enhance and consolidate the Ministry#s capacity to monitor and evaluate social programs implemented by the Ministry of Social Development as well as other Ministries. Therefore, strengthening the M&E system of the MDS goes beyond the impact evaluation of Bolsa Familia program (third follow-up data collection for the baseline survey of the program specifically) but involves other interventions carried out by the Ministry, as well as other social programs under implementation by other Federal agencies. Component 4: Supporting the National Commitment for Social Development (CNDS #Compromisso Nacional pelo Desenvolvimento Social) ($3 million; Bank Financing: $1.5 million). The CNDS is an initiative launched by the federal government in early 2008 to improve the impact of social policies and enhance their effectiveness through a better horizontal integration among federal agencies and a vertical integration between the Federal Government and the States. The National Secretary for Institutional Articulation and Partnerships (SAIP) at the Ministry of Social Development is the agency responsible to promote and oversee this initiative. Accordingly, funds for this component will be carried out by SAIP. The Project will support a set of key areas for action included as part of the CNDS. As part of this component, the

4 Project will also support the Federal Government in its effort to extend to states and municipalities# technical and financial support as well as incentives to comply with specific goals set in the agreements signed under the National Commitment for Social Development. Component 5: Operational Support to Project Coordination at the Ministry of Social Development. The proposed project would maintain its financial support to the Ministry of Social Development to keep a small team to coordinate and provide support to the implementation of components 2 to 4. D. Project location (if known) National scope. E. Borrower s Institutional Capacity for Safeguard Policies [from PCN] The Government has started innovative targeting practices for quilombolas and indigenous populations during the first phase and expressed its commitment to increase the access and social participation of the most vulnerable populations according to their cultural identities, traditions and values. Consultations will be held to share results, hear about expectations and to validate innovations with the target audiences. The program carries out several actions to improve social participation and accountability in the program, including: (i) training of about 22,000 councilors do BFP and Social Assistance Secretariat in 2009 and 2010, staring in August 2009; (ii) the program in partnership with SAGI carried out a qualitative about social control agents to institutional strengthen them, involving beneficiaries and councilors, and (iii) training coordinators and state teams of BFP on social control and #fiscaliazação#, to provide support to municipalities in strengthening the social control agents. The program will develop an information system about social control and local audits to both collect and share information provided by the different agents and disseminate results and activity reports. F. Environmental and Social Safeguards Specialists Ms Maria Jose Vilas Boas Per Weiss (LCSSO) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) The project will trigger the Indigenous Peoples (OP 4.10) safeguard policy. An Indigenous People#s Plan (IPP), building on the one of Phase 1, will be prepared by the Government during project preparation in consultation with the indigenous population. The Social Assessment will be carried out before September 2009.

5 Safeguard Policies Triggered Yes No TBD Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Environmental Category: C - Not Required III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 07/31/2009 B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: N/A C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. TBD IV. APPROVALS Signed and submitted by: Task Team Leader: Mr Manuel Salazar 06/17/2009 Approved by: Regional Safeguards Coordinator: Mr Reidar Kvam 06/17/2009 Comments: Sector Manager: Ms Helena G. Ribe 06/17/2009 Comments: 1 Reminder: The Bank s Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.

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