Beirut, Lebanon July 6, 2007

1. PRESENTATION Social Inter-Ministerial Committee Progress Report # 2 Beirut, Lebanon July 6, 2007 This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

2. Today’s objective is to update Your Excellencies on progress to-date, endorse the MoSA and MEHE programs, discuss the MoH, MoL and NSSF plans, and highlight key issues Meeting Objectives • Brief Your Excellencies on the status of issues raised in the previous IMC and on progress to-date of GR PCO planning and monitoring activities • In the last IMC, 9 main issues were raised regarding MoSA, MoH, and MoL/NSSF: 6 issues were resolved, and 3 are delayed (details in appendix) • Highlight progress and status in each sector: • Paris III Program Milestones (2007 and 2008) • Short Term Technical Assistance Requirements • Short Term Initiatives Implementation Progress and Issues • Discuss MoL, NSSF and MoH engagement under Paris III

3. Progress To-date The Paris III implementation planning process is generally on track – Delays might occur with NSSF Social IMC Progress To-date

4. Social Affairs The Ministry of Social Affairs has developed four main programs under Paris III Ministry of Social Affairs – Program Milestones Short-Term Milestones (Pre-November 2007) Medium/Long-Term Milestones (Post-November 2007) 1 Restructure the Ministry of Social Affairs • Improved procedures for implementation of local development projects at MoSA finalized • Ministerial decision taken for eligibility criteria of NGOs and Welfare Institutions wishing to be subcontracted by MoSA • New MoSA mandate endorsed by Social IMC and Council of Ministers • New MoSA organizational chart enacted by Parliament • Processes at MoSA automated • Social Inter-Ministerial Committee established • Communication Attaché appointed • Social strategy framework developed • Action plan for eliminating duplicated programs and services endorsed by Council of Ministers • Mapping of existing local dev. projects completed • Social strategy action plan endorsed by Council of Ministers and implemented • Duplication in delivery of social services and program implementation eliminated • Monitoring / evaluation mechanisms established • Local development guidelines established 2 Enhance Management of the Social Sector • Proxy Means Testing (PMT) formula finalized • Decision taken by IMC on the hosting of the PMT database • Implementation plan for new targeting mechanism of Social Safety nets programs approved by IMC • Pilot program for new targeting mechanism launched • New targeting mechanism evaluated and scaled up 3 Develop New Targeting Mechanisms for Social Safety Nets Programs • Coverage of services offered to the disabled expanded (Rights and Access) • Proposal finalized for the implementation of free healthcare/hospitalization for the holders of the Disability Card • Provision of cash assistance to poor households using new targeting mechanism • “Full in house” services to disabled improved • Free healthcare/hospitalization provided for targeted segments • Ongoing school food program improved 4 Implement Prioritized Safety Nets Programs

5. Social Affairs Short-term initiatives progress is underway – However budget availability is essential for future progress Ministry of Social Affairs – Short Term Initiatives Progress and Issues Progress on Short-Term Initiatives Issues 1 • Draft procedures for implementing local development project at MoSA prepared • Draft ministerial decision for eligibility criteria of Welfare Institutions and NGOs prepared • Could be delayed in the absence of timely funding Restructure the Ministry of Social Affairs • Previous studies and sectoral strategies conducted by concerned ministries reviewed • Development of social strategy launched with support from experts. Components to be ready by mid-July 2007 • Intern recruited to coordinate elimination of duplicated activities between MoSA, MoH and MEHE. Identification to be completed by August 2007 • Consultant appointed (CDR) to undertake mapping of local dev projects • Delay in appointing a Communication attaché for the Social IMC 2 Enhance Management of the Social Sector 3 Develop New Targeting Mechanisms for Social Safety Nets Programs • Analysis of Multi-Purpose Survey and determination of poverty indicators currently undertaken • Targeting mechanisms under development through proxy means testing • Could be delayed in the absence of timely funding 4 Implement Prioritized Safety Nets Programs • Not initiated • Could be delayed in the absence of timely funding

6. Social Affairs Moving forward, MoSA needs technical assistance of around $1.05 million to achieve short-term (Pre-November 2007) goals … Ministry of Social Affairs – Short Term Technical Assistance Requirements (Pre-November 2007) Programs Milestones Budget Items Amount Total Budget Restructure the Ministry of Social Affairs • New MoSA mandate endorsed by Social IMC and Council of Ministers • New MoSA organizational chart enacted by Parliament • Processes at MoSA automated • Experts/HR fees (MoSA restructuring) • Organizational • Training • Social Development • Legal • $ 2,000 • $ 4,000 • $ 6,000 • $ 2,000 $ 14,000 Enhance Management of the Social Sector • Social strategy action plan endorsed by Council of Ministers and implemented • Duplication in delivery of social services and program implementation eliminated • Monitoring / evaluation mechanisms established • Local develop. guidelines established • Communication Attaché (6 months) • $ 15,000 $ 15,000 Develop new targeting mechanisms for Social Safety Nets programs • Pilot program for new targeting mechanism launched • New targeting mechanism evaluated and scaled up • IT hardware: • 2 Servers • 10 PCs • Peripherals • $ 8,000 • $ 15,000 • $ 2,000 $ 25,000 Implement Prioritized Safety Nets Programs • Provision of cash assistance to poor households using new targeting mechanism • “Full in house” services to disabled improved • Free healthcare/hospitalization provided for targeted segments • Ongoing school food program improved • Cost to increase delivery of proximity services within the Rights and Access program (60,000 handicapped) • $ 1,000,000 (out of $3,000,000) $ 1,000,000 Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

7. Social Affairs … And around $ 33.6 million to achieve long term (Post-November 2007) goals Ministry of Social Affairs – Medium/ Long Term Technical Assistance Requirements (Post-November 2007) Programs Milestones Budget Items Amount Total Budget Restructure the Ministry of Social Affairs • Improved procedures for implementation of local development projects at MoSA finalized • Ministerial decision taken for eligibility criteria of NGOs and Welfare Institutions wishing to be subcontracted by MoSA • Experts fees to assist in the restructuring of MoSA • Subcontractor fees to develop MIS • $ 71,000 • $ 3,521,500 (based on detailed proposal) $ 3,592,500 Enhance Management of the Social Sector • Social IMC established • Communication Attaché appointed • Social strategy framework developed • Action plan for eliminating duplicated programs and services endorsed by CoM • Mapping of existing local development projects completed - - - Develop new targeting mechanisms for Social Safety Nets programs • Proxy Means Testing formula finalized • Decision taken by IMC on the hosting of the PMT database, and the staff required to maintain it • Implementation plan for new targeting mechanism of Social Safety nets programs approved by IMC • Funding needed to scale up pilot program and operate it (to assess the performance of the targeting mechanism) • $ 1,000,000 $ 1,000,000 Implement Prioritized Safety Nets Programs • Coverage of services offered to the disabled expanded • Proposal finalized for the implementation of free healthcare/hospitalization for the holders of the Disability Card • Cash assistance to poor • Free hospitalization cost • Cost to improve food in public schools • Cost to increase delivery of proximity services • In-house services for disabled • Services & Exemptions to poor • $ 16,000,000 • $ 7,000,000 • $ 2,000,000 • $ 2,000,000 • $ 1,000,000 • $ 1,000,000 $ 29,000,000 (depending on targeting) Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

8. Health The Ministry of Health has identified seven main programs under Paris III Ministry of Health Paris III Milestones Short-Term Milestones (Pre-November 2007) Medium/Long-Term Milestones (Post-November 2007) 1 Complete Post-War Recovery Program • Special services provided to injured and affected communities • PHC accreditation program developed and implemented • Catchment areas for 120 centers defined and referral system between centers and hospital designed • Health card system and IT infrastructure developed • Disease management guidelines implemented • Performance based contracting for targeted primary health care services implemented • Roll-out of maternal and child mortality reduction program to 10 cazas completed 2 Upgrade Primary Healthcare Services • Public hospital accreditation program implemented and institutionalized • Clinical practice guidelines developed 3 Follow up Implementation of Quality Assurance Program • Database of eligible beneficiaries integrated across public funds • Pilot testing of the visa billing system completed • National Health Accounts (NHA) updated and institutionalized • By-laws of public funds amended to allow for common procedures • Insurance functions harmonized and integrated across funds • Electronic processing of hospital bills implemented 4 Undertake health financing reform • National expanded immunization program enhanced • Decentralization of epidemiological surveillance system completed • Public health programs strengthened • Emergency management services provided • Non-Communicable Diseases programs enhanced 5 Enhance Public Health Functions and Programs 6 • N/A • "Carte Sanitaire" system implemented • Health technology assessment program developed Improve Public Health Regulations 7 • Drugs registered from 2000 to 2006 re-priced • Current drug registration and reference pricing system reviewed and approved • Generic drug policies developed and implemented Undertake Pharmaceutical Reform

9. Health While MoH has started working on its short-term initiatives, it is still finalizing its detailed planning with the support of the World Bank Ministry of Health – Short Term Initiatives Progress and Issues Progress on Short-Term Initiatives Issues 1 • Completed Complete Post-War Recovery Program • PHC accreditation program funded by Italian Cooperation, and started implementation with Balamand University • Catchment areas, referral system, health card system and IT infrastructure not started and under discussion between MoH and the World Bank during their mission in July 2007 • Wadi Khalid project roll-out lacking funding 2 Upgrade Primary Healthcare Services • Public hospital accreditation program funded by MoH budget of 2007, and implemented by the French Health Authority through ESA (Project duration of 18 months) • Public hospital accreditation program contract signed with ESA in May 2007, waiting for approval of Court of Accounts 3 Follow up Implementation of Quality Assurance Program • Database of eligible beneficiaries already operational across public funds • Pilot testing of the visa billing system conducted in-house by MoH (To be completed by Nov 2007) • Currently developing NHA matrices for 2004-2005 • Several initiatives not started and under discussion between MoH and the World Bank during their mission in July 2007 4 Undertake health financing reform • N/A • National expanded immunization program stopped because funds were not transferred from MoF to MoH • Public health programs (AIDS, NCD) stopped because funds were not transferred from MoF to WHO • Several initiatives not started, and under discussion between MoH and the World Bank 5 Enhance Public Health Functions and Programs 6 • N/A • N/A Improve Public Health Regulations • Documents gathered for re-pricing Category A pharmaceutical products registered after year 2001 • Pricing of part of Category A pharmaceutical products reviewed • N/A 7 Undertake Pharmaceutical Reform

10. Health Most MoH initiatives depend on availability of funding through the DPL – An additional $ 20,000 is required in the short-term to undertake drugs re-pricing Ministry of Health – Short Term Technical Assistance Requirements (Pre-November 2007) Programs Milestones Budget Items Amount Total Budget Complete Post-War Recovery Program • Special services provided to injured and affected communities - - - Upgrade Primary Healthcare Services • PHC accreditation program developed and implemented • Catchment areas for 120 centers defined • Health card system & IT infrastructure developed • To be defined • To be defined DPL Follow up Implementation of Quality Assurance Program • Public hospital accreditation program implemented and institutionalized - - - Undertake health financing reform • Database of eligible beneficiaries integrated across public funds • Pilot testing of the visa billing system completed • National Health Accounts (NHA) institutionalized • To be defined • To be defined DPL Enhance Public Health Functions and Programs • Expanded immunization program enhanced • Decentralization of epidemiological surveillance system completed • Public health programs strengthened • To be defined • To be defined DPL Improve Public Health Regulations • N/A - - - Undertake Pharmaceutical Reform • Drugs registered from 2000 to 2006 re-priced • IT equipment and staff • $ 20,000 $ 20,000 Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

11. Health Most MoH initiatives depend on availability of funding through the DPL – An additional $ 1.3 million is required in the medium-term to roll-out the maternal and child mortality program to 10 cazas Ministry of Health – Medium/Long-Term Technical Assistance Requirements (Post-November 2007) Programs Milestones Budget Items Amount Total Budget Complete Post-War Recovery Program • N/A - - - Upgrade Primary Healthcare Services • Disease management guidelines implemented • Performance based contracting for targeted primary health care services implemented • Roll-out of maternal and child mortality reduction program to 10 cazas • Roll-out of maternal and child mortality reduction program to 10 cazas • $ 1,300,000 DPL + $ 1,300,000 Follow up Implementation of Quality Assurance Program • Clinical practice guidelines developed - - - Undertake health financing reform • By-laws of public funds amended to allow for common procedures • Insurance functions integrated across funds • Electronic processing of hospital bills implemented • To be defined • To be defined DPL Enhance Public Health Functions and Programs • Emergency management services provided • Non-Communicable Diseases programs enhanced • To be defined • To be defined DPL Improve Public Health Regulations • “Carte Sanitaire" system implemented • Health technology assessment program developed - - - Undertake Pharmaceutical Reform • Current drug registration and reference pricing system reviewed and approved • Generic drug policies developed and implemented - - - Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

12. Education The Ministry of Education and Higher Education has identified seven main programs under Paris III Ministry of Education – Paris III Milestones Short-Term Milestones (Pre-November 2007) Medium/Long-Term Milestones (Post-November 2007) • National education strategy developed • Policy, planning and Information Management functions integrated to MEHE • Contract for delivery of SIS equipment signed • Contract signed for organizational structure and performance budgeting • New MEHE organization structure implemented • Performance-based budget for the education sector • EMIS and SIS operational • Permanent Policy, planning, and Information Management Unit 1 Consolidate Policy, Planning and Resources Allocation • Textbooks for all public school students distributed • Free transportation scheme for reallocated cycle 3 students established • Compulsory Basic Education Legislations enacted • Registration fees for Cycle 3 eliminated • Local society engaged in financing of school fund • 100% of cycle 3 reallocated public students receiving free school transportation 2 Achieve Universal Basic Education (UBE) for Ages 6 to 15 • Training on Leadership Management to 30% of Public School Principals completed • Public school teachers reallocated based on optimal utilization plan • Second Language learning opportunities expanded • Recruitment of teachers based on university degrees • Training on Leadership Management to 50% of Public School Principals completed • Separation packages offered to 2884 teachers • Professional competence of teaching workforce enhanced 3 Improve Efficiency, Effectiveness and Competence Level of the Teaching Workforce

13. Education The Ministry of Education and Higher Education has identified seven main programs under Paris III … (Cont’d) Ministry of Education – Paris III Milestones Short-Term Milestones (Pre-November 2007) Medium/Long-Term Milestones (Post-November 2007) • Examination Generation System, Examination Management System, and a Question Bank System developed • New Curriculum developed • Quality and content of the student textbooks and teachers guide enhanced • Learning Achievement enhanced • Access to public preschool education in poor, rural areas expanded • Drop-out Prevention Program implemented • Psycho-social support program expanded 4 Enhance Quality of Education 5 • Schools requiring consolidation identification • Consolidation plan ready • At least 30 non viable schools consolidated (within the first year of consolidation plan implementation) • GIS system to optimize utilization of investment implemented • Upgrading of MEHE physical infrastructure initiated • Continuous process of school consolidation Enhance the Utilization of Educational Facilities • VTE teaching tools and methods reviewed • Plan for elements of quality assurance completed • School distribution across Lebanese regions rationalized • Modern learning assessment tools and new teaching methods developed and implemented • System for pedagogic orientation and guidance implemented 6 Rationalize Vocational and Technical Education • New Laws and Articles for Lebanese University developed • Measures undertaken to ensure administrative, academic, and financial independence of LU • Standards for institutional QA implemented at MEHE • National structures for quality assurance established 7 Develop Quality Assurance in Higher Education

14. Education Ministry of Education achieved progress on four programs Ministry of Education – Short Term Initiatives Progress 1 • Three years education strategy developed and its implementation plan is under preparation • Financial planning team undertaking training • Tenders for EMIS and SIS launched Consolidate Policy, Planning and Resources Allocation 2 • Not started Achieve Universal Basic Education (UBE) for Ages 6 to 15 3 Improve Efficiency, Effectiveness and Competence Level of the Teaching Workforce • Self guided modules and practicum phase currently implemented by 302 school Principals • Procurement process for the selection of the expert to develop evaluation tools launched 4 • Examination Generation System developed • Examination Management System and Question Bank System under development Enhance Quality of Education 5 • Criteria for school consolidation being prepared • Prioritization of small GE and VTE schools currently underway Enhance the Utilization of Educational Facilities 6 • Not started Rationalize Vocational and Technical Education 7 • Not started Develop Quality Assurance in Higher Education

15. Education The MEHE needs technical assistance of around $4 million to achieve short-term (Pre-November 2007) goals … Ministry of Education – Short Term Technical Assistance Requirement (Pre-November 2007) Programs Milestones Budget Items Amount Total Budget Consolidate Policy, Planning and Resource Allocation • National education strategy developed • Policy, planning and Information Management functions integrated to MEHE • Contract for delivery of SIS equipment signed • Contract signed for organizational structure and for performance budgeting • Experts fees to develop capability at MEHE • $ 100,000 $ 100,000 Achieve Universal Basic Education for Ages 6 to 15 • Textbooks for all public school students distributed • Free transportation scheme for reallocated cycle 3 students established • Cost of implementing free textbooks program for year 1 • Cost for free transportation • $ 3,500,000 • $ 300,000 $ 3,800,000 Improve Efficiency, Effectiveness & Competence Level of the Teaching Workforce • Training on Leadership Management to 30% of Public School Principals completed - - - Enhance Quality of Education • Examination Generation System, Examination Management System, and a Question Bank System developed - - - Enhance the Utilization of Educational Facilities • Schools requiring consolidation identification • Consolidation plan ready • At least 30 non viable schools consolidated • Cost of consolidation • $ 100,000 $ 100,000 Rationalize Vocational and Technical Education • VTE teaching tools and methods reviewed • Plan for elements of quality assurance completed - - - Develop Quality Assurance in Higher Education • New Laws and Articles for Lebanese University developed - - - Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

16. Education … And around $24 million to achieve medium/ long term (Post-November 2007) goals Ministry of Education – Medium/ Long Term Technical Assistance Requirement (Post-November 2007) Programs Milestones Budget Items Amount Total Budget Consolidate Policy, Planning and Resource Allocation • New MEHE organization structure implemented • Performance-based budget for the education sector • EMIS and SIS operational • Permanent Policy, planning, and Information Management Unit • Cost to connect 100 sites to EMIS • Experts fees to develop MEHE capability • $ 500,000 • $400,000 $ 900,000 Achieve Universal Basic Education for Ages 6 to 15 • Compulsory Basic Education Legislations enacted • Registration fees for Cycle 3 eliminated • Local society engaged in financing of school fund • 100% of cycle 3 reallocated public students receiving free school transportation • Cost to eliminate registration fees for 2 years • Cost of providing free textbooks for year 2 • $ 8,600,000 • $ 3,500,000 $ 12,100,000 Improve Efficiency, Effectiveness & Competence Level of the Teaching Workforce • Public school teachers reallocated based on optimal utilization plan • Second Language learning opportunities expanded • Recruitment of teachers based on university degrees • Training on Leadership Management to 50% of Public School Principals completed • Separation packages offered to 2884 teachers • Professional competence of teaching workforce enhanced • Cost of professional development for additional 20% of public school principals • Cost of early retirement to be determined by MEHE and MOF • $ 400,000 • TBD $ 400,000 + Early Retirement Plan Cost Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

17. Education … And around $24 million to achieve medium/ long term (Post-November 2007) goals … (Cont’d) Ministry of Education – Medium/ Long Term Technical Assistance Requirement (Post-November 2007) Programs Milestones Budget Items Amount Total Budget Enhance Quality of Education • New Curriculum developed • Quality and content of the student textbooks and teachers guide enhanced • Learning Achievement enhanced • Access to public preschool education in poor, rural areas expanded • Drop-out Prevention Program implemented • Psycho-social support program expanded • Cost of Furniture & equipment • Cost of Psycho Social program • Cost of Drop out program • $ 4,000,000 • $ 500,000 • $ 2,500,000 $ 7,000,000 Enhance the Utilization of Educational Facilities • GIS system to optimize utilization of investment implemented • Upgrading of MEHE physical infrastructure initiated • Continuous process of school consolidation • Cost of GIS • $ 1,000,000 $ 1,000,000 Rationalize Vocational and Technical Education • School distribution across Lebanese regions rationalized • Modern learning assessment tools and new teaching methods developed and implemented • System for pedagogic orientation and guidance implemented • Cost of rationalizing VTE • $ 1,000,000 $ 1,000,000 Develop Quality Assurance in Higher Education • Measures undertaken to ensure administrative, academic, and financial independence of LU • Standards for institutional QA implemented at MEHE • National structures for quality assurance established • Cost of implementing initiative • $ 1,500,000 $ 1,500,000 Note: All budgetary requirements should be reviewed and endorsed by the Ministry of Finance

18. NSSF NSSF reform is advancing along two major streams: Short-Term quick-wins; and a long-Term program in cooperation with the World Bank NSSF Reform Plans • Several plans have been developed for the NSSF, both internally and externally, and some accomplishments have been registered on all levels. However, the current situation of the fund necessitates a substantial increase in the intensity of reform • NSSF reform efforts are following two streams: • Short-term quick-wins which previously attained preliminary consent from the NSSF BoD, and which should attain consensus from all stakeholders • Long-term program that will be formulated by the stakeholders, after reviewing existing reform studies and initiatives, specifically the plan developed in cooperation with the World Bank • A consensus-building approach must be followed to formulate a long term comprehensive reformplan for the NSSF, based on feedback and active participation from all four stakeholders: • Board of Directors (Decision-making Authority) • General Management (Executive Authority) • Technical Committee (Compliance and Advisory Authority) • Ministry of Labor (Oversight Authority) With close support from the Prime Minister and/or Minister of Labor and the GR PCO

19. NSSF The NSSF has started implementing several short-term quick-wins aiming at strengthening administration, auditing accounting … List of NSSF Short Term Initiatives Strengthen the Administration of the NSSF • Implementing Phase I of the IT Infrastructure Master Plan: • Bids completed between January and April 2007, and contracts signed with the corresponding companies: • Hardware & PCs are delivered successively, with delivery completion by May 2007 • LAN installation initiated and will be completed latest by April 2008 • WAN installation initiated and will be completed latest by May 2008 • Software and training contracts to be outsourced to IDS, under a two-year contract, latest by 15/7/2007 • IT systems (hardware, software, training) to be rolled out to 14 out of 35 centers (representing over 60% of NSSF capacity) from August to November 2007 • Completion of Phase I of the IT Infrastructure Mater Plan by July 2008 • Contracting 4 consultants, pursuant to recruitment tests organized by the Civil Services Board: • IT and computerization experts • Actuarial statistician • Managerial accountant • Financial economist Audit NSSF Accounts and Government Dues • Perform 2001 to 2005 audits by an international firm • Grant Thornton has been selected and the auditing process will be carried out from August 2007 until early 2009 • Resolve issues related to government dues owed to the NSSF • Negotiations need to be carried out between MoF and NSSF

20. NSSF … containing administrative expenditures, improving capacity to collect contributions, and determining NSSF liabilities and securing funding NSSF Medium Term Initiatives Contain Administrative Costs and Health Expenditures • Implement the new grade and salary structures • Terminate contracts with hospitals not accredited by the Ministry of Health • Commence “on-call” rotation schemes for doctors during statutory holidays to control hospital admittance • Create an oversight committee to oversee open heart, by-pass and “spring” surgeries • Administer drugs for incurable diseases through the Fund • Commence recruitment proceeding to employ pharmacists • Continuously follow-up and update drug listings and medical supplies Improve NSSF Capacity to Collect Contributions under Current Law • Share non confidential information between MoF and NSSF on registered companies • Perform field audit to increase compliance through: • Increasing the number of field auditors (100 additional auditors) to regularly survey companies • Forward the employment requisitions to the Minister of Labor to present to the CoM • Enhance collection processes: • Create a supervision & control unit to follow-up on companies that repudiate their NSSF commitments • Exempt the companies which did not pay their dues before 2004 from late penalties, in virtue of the Clemency law • Strengthen the Litigation department with lawyers and paralegals and automate it, and request the approval of the CoM to commence paralegal recruitment proceedings Determine NSSF Liabilities & Secure its Funding and Funding Continuity • Perform an actuarial study for the Health and Maternity insurance branch: • Assess the financial situation of the Fund until 2020 • Propose scenarios related to recipients benefits and financing modes • Study completed and delivered to NSSF by August 2007 • Perform an actuarial study for the End of Service Indemnities branch: • Perform an actuarial assessment to determine available and needed funds to establish deficit or surplus amounts • Study completed and delivered to NSSF by September 2007

21. NSSF In parallel to short-term quick-wins, the NSSF is formulating a long-term reform plan in cooperation with the World Bank NSSF Long Term Programs Expand Coverage of Social Insurance System Improve Financial Continuity of the NSSF Strengthen the Administration of the NSSF Projects under study and development in cooperation with the World Bank Strengthen Income Protection Policies Audit, Update and Reform NSSF Accounts and Accounting Practices

22. Labor The Ministry of Labor has planned one program aiming at “Modernizing the Labor Law” and “Enhancing Service Delivery” of the Ministry Overview of Ministry of Labor Paris III Program • The MoL has identified and planned one program aiming at: • Facilitating the employment of temporary, seasonal and young workers within Lebanon • Facilitating the import of highly skilled workers and managers into Lebanon • Streamlining contract termination proceedings • Upgrading the Ministry’s capacity to handle the added workload and modernizing its operations through the introduction of IT capabilities • The program consists of two initiatives: • “Streamlining Employment and Termination Processes”: The first step is to recall the amendment to the Labor Law submitted to the CoM. Subsequently, the MoL would introduce new amendments, which will be submitted to the CoM and Parliament • “Enhancing Service Delivery”: This initiative will start in parallel to the previous one and entails streamlining and automating key processes, and enhancing human capabilities • Currently, MoL lacks technical know-how, manpower, capabilities and resources to fully carry out both initiatives. The MoL, in cooperation with the GR PCO, will investigate the possibility of attaining the required support – legal and MIS/IT experts, capable manpower and other resources – from OMSAR/other public entities/private sector subcontractors – in order to achieve set targets

23. Next Steps Going forward, Natural Owners should resolve pending issues, finalize short-term Technical Assistance requirements, and endorse Paris III Commitment Documents Actions Required • All Natural Owners of the Social Sector require timely funding in order to advance on their implementation plans • Finalize development of Program Charters and KPIs for: • Ministry of Social Affairs • Ministry of Health • Ministry of Education and Higher Education • Ministry of Labor • NSSF: • Develop Program Charters and Detailed Workplans for short-term initiatives • Review and approve funding and TA requests, and finalize short-term requirements • Endorse/ Sign Paris III Commitment Documents with Natural Owners

24. Next Steps An additional IMC meeting should take place to finalize programs, timelines, KPIs and funding, with steady-state implementation progress reporting starting in August IMC Engagement Schedule – May to August 2007 Meeting Objectives Dates • Appoint Secretary to the IMC and agree on his/her role • Review progress, and resolve escalated issues • Review initiative and program allocation, and resolve overlaps • 1st Social IMC: 17 May 2007 First Round of IMC Meetings • Follow up on 1st round of IMC meetings • Endorse initiatives and program allocation • Endorse cross ministerial initiative teams • Resolve escalated issues • 2nd Social IMC: 6 July 2007 Second Round of IMC Meetings • Follow up on 2nd round of IMC meetings • Review and approve natural Owners funding/ TA requests • Endorse/ Sign Paris III Commitment Documents with Natural Owners • 3rd Social IMC: 21 August 2007 Third Round of IMC Meetings

25. Appendix IMC Issues Register Ministry of Social Affairs Ministry of Health Ministry of Education and Higher Education NSSF Ministry of Labor

26. Update on Previous IMC Issues related to initiative allocation and Natural Owners engagement that were raised during the previous Social IMC were addressed and completed Social IMC Issues Register

27. Update on Previous IMC The appointment of a press attaché for the Social IMC, and the recruitment of M&S staff for MoSA and MoL/NSSF have been delayed Social IMC Issues Register

28. Appendix IMC Issues Register Ministry of Social Affairs Ministry of Health Ministry of Education and Higher Education NSSF Ministry of Labor

29. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Social Affairs Ministry of Social Affairs – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

30. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Social Affairs Ministry of Social Affairs – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

31. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Social Affairs Ministry of Social Affairs – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

32. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Social Affairs Ministry of Social Affairs – Summary of Paris III Programs and Initiatives List of Programs and Initiatives Source: (*) “Final Social Action Plan: Towards Strengthening Social Safety Nets and Access to Basic Social Services” (Republic of Lebanon, January 2007)

33. Appendix IMC Issues Register Ministry of Social Affairs Ministry of Health Ministry of Education and Higher Education NSSF Ministry of Labor

34. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Health Ministry of Health – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

35. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Health Ministry of Health – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

36. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Health Ministry of Health – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

37. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Health Ministry of Health – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

38. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Health Ministry of Health – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

39. Appendix IMC Issues Register Ministry of Social Affairs Ministry of Health Ministry of Education and Higher Education NSSF Ministry of Labor

40. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Education Ministry of Education – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

41. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Education Ministry of Education – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

42. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Education Ministry of Education – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

43. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Education Ministry of Education – Summary of Paris III Programs and Initiatives List of Programs and Initiatives

44. Appendix IMC Issues Register Ministry of Social Affairs Ministry of Health Ministry of Education and Higher Education NSSF Ministry of Labor

45. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term NSSF NSSF – Summary of Paris III Programs and Initiatives List of Programs and Initiatives UNDER DEVELOPMENT

46. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term NSSF NSSF – Summary of Paris III Programs and Initiatives List of Programs and Initiatives UNDER DEVELOPMENT

47. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term NSSF NSSF – Summary of Paris III Programs and Initiatives List of Programs and Initiatives UNDER DEVELOPMENT

48. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term NSSF NSSF – Summary of Paris III Programs and Initiatives List of Programs and Initiatives UNDER DEVELOPMENT

49. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term NSSF NSSF – Summary of Paris III Programs and Initiatives List of Programs and Initiatives UNDER DEVELOPMENT

50. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term NSSF NSSF – Summary of Paris III Programs and Initiatives List of Programs and Initiatives UNDER DEVELOPMENT