The World Bank Report No: ISR14647 Implementation Status & Results Nigeria Nigeria Public Sector Governance Reform and Development Project (P097026) Public Disclosure Copy Operation Name: Nigeria Public Sector Governance Reform and Development Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 12-Jun-2014 Project (P097026) Country: Nigeria Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 29-Jun-2010 Original Closing Date 30-Nov-2015 Planned Mid Term Review Date 18-May-2015 Last Archived ISR Date 02-Feb-2014 Effectiveness Date 08-Nov-2012 Revised Closing Date 31-Dec-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve transparency, accountability and quality in public finance and human resource management systems, with a view to strengthen governance in the participating states. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Development and Modernization of Public Financial Management Systems 39.10 Human Resource Managemnent Strengthening 9.30 Monitoring and Evaluation System Development 7.50 Improvement of Public Financial Management in Selected States 24.00 Scaling up of Selected Activities Under Original Project 22.00 Public Disclosure Copy Project Coordination 8.50 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Implementation Status Overview Page 1 of 7 The World Bank Report No: ISR14647 1. Originally approved in June 2010, the project was restructured at the request of the Federal Government of Nigeria before the FA was signed in June 2012, for a total net commitment of $78 million. As part of the restructuring, the original project scope was reduced with beneficiaries reducing from 16 states to 11 states, thus changing a number of the original parameters. Public Disclosure Copy 2. Following effectiveness of the project on November 8, 2012, five of the 11 participating states could not access credit funds because of the disbursement arrangements originally in place. Disbursement arrangements were only corrected with the issuance of a 2nd revised DL on November 27, 2013 and these states only effectively gained access to the credit between December 2013 and January 2014. Though these states which suffered prolonged delays in accessing credit funds are now striving to build implementation momentum, the task team is providing intensive implementation support/hand-holding to advance implementation. 3. While the project is technically effective in Kaduna State, there is still no implementation as the state's Designated and Draw Down Accounts have not been fully set up, thus locking down disbursement of about 10% of the credit allocated to the state. The task team received assurances during the just concluded implementation support mission that the political issues which created the impasse have been resolved and the accounts would be set up shortly to enable project implementation. In like manner, Abia State has still not signed its Subsidiary Credit Agreement and has not responded to all inquiries and entreaties from the Bank, thus locking down another 3% of the credit allocated to the state. The situations in these two states have impacted negatively on project implementation and disbursement. 4. In spite of the foregoing and based on the momentum already achieved across the implementing states, the task team remains optimistic that the project is on course to achieve its objectives. A significant part of the undisbursed credit funds is earmarked for the set-up and implementation of the Integrated Financial Management Information Systems (IFMIS) and other ancillary activities, which, by their nature take time to implement. Considering the complex prerequisites for an IFMIS set-up, these funds cannot be front-loaded, but would naturally disburse later, and in large tranches. Preliminary activities for the IFMIS are already at advanced stages, and a substantial part of these funds will surely be disbursed in the next one year. 5. Current disbursements stand at $10.3 million or 13%, Locations Country First Administrative Division Location Planned Actual Nigeria Not Entered Ondo State Nigeria Not Entered Kaduna State Nigeria Not Entered Cross River State Nigeria Not Entered Bauchi State Nigeria Not Entered Anambra State Public Disclosure Copy Nigeria Not Entered Kogi State Results Project Development Objective Indicators Page 2 of 7 The World Bank Report No: ISR14647 Indicator Name Core Unit of Measure Baseline Current End Target Entities and percentage of expenditure audited Number Value 50.00 87.50 75.00 Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Public Disclosure Copy Comments Using the average for Tier I states as basis, Kogi State is at 75% while Ondo is doing 100% coverage. Growth in percentage of public contracts above Percentage Value 20.00 76.00 70.00 threshold awarded through open competition Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Comments Using the average for Tier I states as basis, Kogi State is currently using open competition for 65% while Ondo is doing 87% competitive contracting. Reduced discrepancy between personnel Percentage Value 25.00 20.00 5.00 database and payroll database in partiicipating Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 (Tier 1) states Comments No reliable data was furnished in the Tier I states. However, the project is providing support for a reconciliation of personnel and payroll databases. Decrease in deviation of actual expenditure Percentage Value 55.00 55.00 25.00 from budgeted expenditure in the Tier 1 states Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Comments While Kogi now has a reduced deviation of 45%, the data for Ondo could not be verified hence, the team will hold the figure as it was until the next ISR. Public Disclosure Copy Growth in percentage of actual collection of Percentage Value 60.00 74.44 90.00 projected IGR in Tier 1 states Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Comments Determined based on the IGR collections for the calendar year ended December 2013. Kogi recorded a collection growth of 65.54% while Ondo had a collection growth of 83.33%. Page 3 of 7 The World Bank Report No: ISR14647 Direct project beneficiaries, % of which female Months Value 10.00 19.83 35.00 Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Comments Determined based on number Public Disclosure Copy of persons who have benefited from project funded trainings and on the average for the six states (Kogi -22%, Bauchi -10%, Niger -14%, Ekiti 20%, Adamawa -10% & Plateau -43%) that have funded trainings. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Adoption of revised legal framework for Number Value 0.00 0.00 9.00 commitment control and payment Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 authorization/approval limit adopted in at least Comments Further verification during the 9 states just ended mission confirmed that previously assumed legal frameworks are merely administrative instruments and some of which are obsolete. Development and use of medium-term (3 year Number Value 1.00 5.00 10.00 rolling) sector strategies and fiscal planning in Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 at least 5 MDAs Comments This is currently available in five states - Niger, Imo, Ekiti, Kebbi & Bauchi. Number of MDAs in each state producing Number Value 0.00 0.00 5.00 financial statements using new SIFMIS Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Public Disclosure Copy Comments The two Tier I states (focus of this indicator) are still at the stage of determining functional needs and procurement. SIFMIS is not yet in place Frequency of reconciliation between personnel Number Value 0.00 1.00 4.00 records and payroll database in participating Sub Type Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 states. Breakdown Comments No reconciliation takes place; Only Ondo state does no linkage between personnel Page 4 of 7 The World Bank Report No: ISR14647 and payroll data bases frequent reconciliation resulting in significant levels (monthly). of discrepancies. Procurement legislation enacted and regulatory Number Value 0.00 5.00 2.00 Public Disclosure Copy unit established in participating and selected Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 states Comments Legal and Regulatory frameworks are in place in Niger, Imo, Ekiti, Adamawa, and Kebbi states. Frequency of reconciliation between personnel Number Value 0.00 0.00 4.00 records and payroll database in a year in states Date 30-Jul-2009 30-Apr-2014 04-Mar-2016 Comments There has been change, though insignificant. Only Ondo does this on a monthly basis. Increase in taxpayer coverage/tax database in Percentage Value 0.00 0.00 30.00 participating states Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Comments Taxpayer survey is at an advanced stage in Ondo, with prospects of result by next ISR. Kogi is about to sign a contract for the exercise. Time taken by state legislature to scrutinize Months Value 48.00 48.00 3.00 and issue report on external audit report in Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 participating states Comments Data is only available for Ondo state i.e. 15 months. No progress has been made in Kogi state. Number of participating states with SIFMIS Number Value 0.00 0.00 2.00 Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 Public Disclosure Copy Comments The indicator is revised back to nil as the focus is on only the Tier I states. Procurement of the SIFMIS is in progress in both states, but will take some time to implement. Page 5 of 7 The World Bank Report No: ISR14647 Growth in the number of key MDAs that submit Number Value 0.00 0.00 5.00 annual reports with updated data on agreed Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 results indicators in each participating state Comments Consultancies for state M&E Public Disclosure Copy systems are ongoing in both Tier I states. Templates for reporting already designed and adopted in Ondostate. Hopefully, there will be results to report in next ISR. BATMIS, HRMIS and MTEF/MTSS Number Value 0.00 10.00 15.00 implemented in all line ministries in original Date 30-Jul-2009 30-Apr-2014 31-Dec-2016 project states Comments Currently 10 Ministries in Bauchi state. Data on Financial Performance (as of 27-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P097026 IDA-46670 Effective 29-Jun-2010 29-Jun-2012 08-Nov-2012 30-Nov-2015 31-Dec-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P097026 IDA-46670 Effective XDR 50.54 50.54 0.00 6.74 43.80 13.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR14647 Public Disclosure Copy Key Decisions Regarding Implementation 1. Originally approved in June 2010, the project was restructured at the request of the Federal Government of Nigeria before the FA was signed in June 2012, for a total net commitment of $78 million. As part of the restructuring, the original project scope was reduced with beneficiaries reducing from 16 states to 11 states. 2. Following effectiveness of the project on November 8, 2012, the states are now striving to build implementation momentum and the Bank is providing intensive implementation support/hand-holding to advance implementation. 3. In spite of the foregoing and based on the momentum already achieved across the implementing states, the task team remains optimistic that the project is on course to achieve its objectives. A major outstanding activity which is ongoing is the set-up and implementation of the Integrated Financial Management Information Systems (IFMIS) and other ancillary activities, which, by their nature will take some time to implement. Preliminary activities for the IFMIS are already at advanced stages. 4. Current disbursements stand at $10.3 million or 13%, Public Disclosure Copy Restructuring History Level two Approved on 28-Dec-2011 Related Projects There are no related projects. Page 7 of 7