The World Bank Report No: ISR13829 Implementation Status & Results El Salvador Fiscal Management and Public Sector Performance Technical Assistance Loan (P095314) Public Disclosure Copy Operation Name: Fiscal Management and Public Sector Performance Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 26-May-2014 Technical Assistance Loan (P095314) Country: El Salvador Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 24-Nov-2009 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 11-Feb-2013 Last Archived ISR Date 03-Sep-2013 Effectiveness Date 24-May-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 11-Feb-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the institutional capacity of specific government processes and agencies to increase the effectiveness and efficiency of revenue and expenditure management and enhance accountability and transparency in the public sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Tax Collection Agencies 5.20 Modernizing Public Expenditure and Financial Management 13.00 Enhancing and piloting information management and public sector transparency initiatives 0.80 Project coordination 1.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview After initial challenges to project implementation have been mostly overcome, Government counterparts have progressed in execution, which is reflected in the achievement of important target indicators. However, the overall lag in project implementation has affected most of the intermediate and outcome indicators, which have not been achieved but are now in better conditions to be reached. Consistently, disbursements have been also increased during CY2013 (4.2 million), but overall disbursement rate continues to be low taking Page 1 of 6 The World Bank Report No: ISR13829 into account the age of the project (31% or 6.27 million). The transparency and customs modernization agenda (Components A and C) have continued to progress, while the financial management agenda (Component B) has suffered a significant delay given its complexity, the depth of the reform and technical preconditions, as well as the number of actors involved. In order to technically support Government in completing their financial management agenda, a series of supervision missions were carried out between November 2013 and March Public Disclosure Copy 2014. The overall strategy to develop and implement SAFI II was reassessed, and a new implementation calendar was issued by the Government, adjusting scope and timing to launch the new SAFI II. The new calendar sets 2017 as the year to launch the system. MoF is requesting an extension of the closing date to ensure the adequate technical and financial support from the Bank. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Tax collection as a percent of GDP increases Text Value Tax colllection as a Tax collection as a Tax collection as percentage at least 1% as a result of greater effectiveness percentage of GDP was percentage of GDP was of GDP has increased at least and efficiency 13.2% 15.8% by Dec 2013 1% Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments The Government has updated Achieved. this number to 13.73% Stronger budgeting, treasury, and human Text Value Government financial There is a proposal for a Government financial resources management and adoption of statements are not consistent National Accounting Plan statements are consistent international accounting standards with international standards; under the new SAFI II that with IPSAS and GFS costing of programs is not takes into account IMF standards and contributing to possible. standards. USAID has cost activities and outputs in supportedthe development if public programs the conceptual model for new accounts based on international standards. Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Public Disclosure Copy Comments The introduction of multi-annual projections Text Value PEFA indicator #12: Multi- Several legal and Improvements in the ratings in and programmatic structure in the budget year perspective in fiscal methodological instruments PEFA indicator #12: #Multi- strengthens strategic planning and the planning, expenditure policy approved to introduce multi year perspective in fiscal implementation of performance-based and budgeting [baseline: C+ annual projections and planning, expenditure policy budgeting 2009] - PEFA indicator #5: program based budgeting: and budgeting# and PEFA Classification of the budget • Guía Metodológica indicator #5: #Classification of [baseline: C 2009] para la Identificación y Diseño the budget# de Programas • Manual del Marco Page 2 of 6 The World Bank Report No: ISR13829 Institucional de Mediano Plazo • Manual para la Clasificación Funcional- Public Disclosure Copy Programática del Gasto Público • CIRCULAR No. SAFI-004/2013 Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Hours to clear merchandise from the moment it Hours Value 60.00 21.46 48.00 arrives to custom terminal until it is released Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Achieved % increase of successful lawsuits conducted Percentage Value 85.00 81.82 5.00 by the DGII and the DGA at the TAIIA Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments 85% for DGII and 60% for 81.82 % for DGII and 62% for DGA DGA. The changed interpretations of the norms reported in the last ISR still has effects on the indicator. % increase of web-processed transactions Percentage Value 9.42 23.90 5.00 Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments VAT statements through web 23.9% VAT statements 5% increase are 9.42% (Dic.2009) through web of web processed transactions; 89% of customs statements Achieved. 80% of banks are electronic 98% of customs statements incorporated Public Disclosure Copy are electronic 50% of banks accept electronic payments 90% of banks accept electronic payment Availability of a new electronic purchasing Text Value Current purchasing system is COMPRASAL has been A new electronic purchasing system designed and implemented not electronic. developed and is working system designed and (COMPRASAL). although not 100% of implemented in central government agecies are using government institutions it. (COMPRASAL) Page 3 of 6 The World Bank Report No: ISR13829 Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Implementation of the Single Treasury Account Text Value The STA is not implemented, STA is under development The Single Treasury Account Public Disclosure Copy (STA) and electronic payment module leading to inefficiencies in the within the new SAFI. and electronic payment implemented in all Central Government, use of financial resources and module was implemented in including the national hospitals network. payments all central government, including the national hospitals network. Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments The Human Resource Management System Text Value The Human Resource SIRH is being developed Budget formulation for HR (SIRH) is updated and inter- operating with Management System (SIRH) under the new SAFI. and payroll is automatic and SAFI is not inter-operating on line linked to SAFI with SAFI, for budget formulation and implementation Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Creation of automatic accounting reports and Text Value Accounting reports and The new SAFI is still under SAFI is able to automatically financial statistics according to international financial statistics are not development. However, a create accounting reports and standards created automatically, and do number of steps have already financial statistics according not meet international been taken to harmonize to IPSAS and 2001 IMF standards accounting reports with legal Government Financial starndars. Statistics standards There is a proposal for a National Accounting Plan under the new SAFI II that takes into account IMF standards. USAID has supported the development if the conceptual model for new accounts based on Public Disclosure Copy international standards. Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Transparency related policies piloted and Text Value n/a Two sets of transparency Transparency related policies implemented activities have been approved piloted and implemented in at and are being implemented in least three central more than three central government agencies agencies. Page 4 of 6 The World Bank Report No: ISR13829 Date 31-Dec-2013 31-Dec-2014 Comments Implementation of a medium term expenditure Text Value There is currently no medium Several legal and The medium term expenditure Public Disclosure Copy framework and results-based budgeting system term expenditure framework methodological instruments framework and results-based in the Central Government and results-based budgeting approved to introduce multi budgeting has been system in place annual projections and formulated in SAFI in all program based budgeting: central Government • Guía Metodológica institutions para la Identificación y Diseño de Programas • Manual del Marco Institucional de Mediano Plazo • Manual para la Clasificación Funcional- Programática del Gasto Público • CIRCULAR No. SAFI-004/2013 Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments % recovery of tax arrears portfolio Percentage Value 70.00 64.00 60.00 Date 31-Dec-2009 31-Dec-2013 Comments Decrease of 7%. Development of the conceptual model for the Text Value The budget is not structured The conceptual model for the The conceptual model for the programmatic classification in the budget using the programmatic budgeting module was programmatic classification in classification approved on October 15, the budget has been 2012, and it includes the developed and the budget is programmatic classification of structured by programs budget. Operalization of the conceptual plan in the new SAFI is still under Public Disclosure Copy development Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Data on Financial Performance (as of 24-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095314 IBRD-78120 Effective 24-Nov-2009 16-Mar-2011 24-May-2011 31-Dec-2014 31-Dec-2014 Page 5 of 6 The World Bank Report No: ISR13829 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095314 TF-95841 Closed 17-Mar-2010 28-May-2010 28-May-2010 30-Sep-2010 30-Jun-2011 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095314 IBRD-78120 Effective USD 20.00 20.00 0.00 6.28 13.72 31.00 P095314 TF-95841 Closed USD 0.08 0.06 0.01 0.06 0.00 100.00 Disbursement Graph Key Decisions Regarding Implementation No decisions for disclosure Public Disclosure Copy Restructuring History Level two Approved on 18-Feb-2011 Related Projects There are no related projects. 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