The World Bank Report No: ISR15575 Implementation Status & Results Honduras Improving Public Sector Performance (P110050) Public Disclosure Copy Operation Name: Improving Public Sector Performance (P110050) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 21-Jul-2014 Country: Honduras Approval FY: 2012 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 06-Dec-2011 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 05-May-2014 Last Archived ISR Date 26-Feb-2014 Effectiveness Date 15-Dec-2011 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 16-Jun-2014 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to strengthen the management of public finances and to establish a more efficient, effective and transparent public procurement system through: (i) upgrading the public financial management system; (ii) upgrading the e-procurement platform; (iii) enhancing the internal control systems over personnel expenditures; and (iv) building capacity of the Central Administration. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1. Strengthening and Consolidating Financial Management Systems 7.90 Component 2. Strengthening the Public Procurement System 4.70 Component 3. Improving Public Sector Human Resource Management 3.70 Component 4. Strengthening Government monitoring and evaluation capacity 0.80 Component 5. Project Coordination 1.10 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating High Substantial Implementation Status Overview Between May and June 2014, the midterm review of the Project was conducted. Changes in the structure of the Executive Power resulted in new institutional arrangements for the Page 1 of 6 The World Bank Report No: ISR15575 implementation of the Project. In this regard, a Steering Committee with the heads of the Finance Secretariat (SEFIN), SEFIN’s Project Administration Unit (UAP), the Presidential Directorate of Strategic Planning, Budget and Public Investment (DPPEPIP by its Spanish acronym), and the Presidential Directorate of Transparency and State Modernization (DPTRE by its Spanish acronym) was formed to foster the Project. Furthermore, the Modernization Unit (UDEM) within SEFIN presented an IT strategy and a roadmap for the development of the new SIAFI, and is working closely with the team of the DPTRE, which absorbed ONCAE, for the procurement of the new Honducompras platform and ensure its Public Disclosure Copy interoperability with SIAFI. Further, the Government has shown strong commitment in the implementation of Component 3, which foresees performing payroll audits and functional review studies in five key sectors that will improve public expenditure effectiveness and control. Moreover, the Project's Operation’s Plan has been approved, and includes an overview of the activities to be performed until the current closing date of the Project in December 2015. Finally, the procurement plan is in the process of being updated. As of April 2014, the Project reports an overall execution of approximately 2.4 million. Locations Country First Administrative Division Location Planned Actual Honduras Francisco Morazan Tegucigalpa ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved control over payroll management in Text Value Weak controls over payroll Terms of Reference for the Payroll management audits# all central government institutions processing in central implementation of Payroll action plans are fully administration institutions audits in 8 institutions (DEI, implemented in all central SEFIN, BCH, CNBS, INSEP, government institutions. health Secretariat, Education Secretariat, Security Secretariat) are under preparation Date 15-Oct-2011 19-Jun-2014 31-Dec-2015 Comments First payroll audits are expected to present results by December 2014. PI-4: Stock and monitoring of expenditure Text Value B in the PEFA Report 2011 B in 2013 PEFA Report A payment arrears Date 15-Oct-2011 19-Jun-2013 31-Dec-2015 Public Disclosure Copy Comments Publication of bidding opportunities (including Text Value Less than 10% of bidding Data not available 80% publication of bidding documents) and contract award information opportunities are published opportunities (including documents) and contract award information Date 15-Oct-2011 19-Jun-2013 31-Dec-2015 Comments Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR15575 Indicator Name Core Unit of Measure Baseline Current End Target Number of framework agreements Number Value 0.00 5.00 6.00 implemented for common use goods Date 15-Oct-2011 19-Jun-2013 31-Dec-2015 Public Disclosure Copy Comments Five framework agreements have been implemented for common use goods. The Law governing the use of Framework Agreements is expectedto be fully enacted by December 2104. This would allow the elaboration of additional agreements. Institutional coverage of the updated SIAFI Text Value The current framework (used In progress 100% of Central Government by 100% of Central and 80% of decentralized Government and 3 institutions operate with the decentralized institutions) updated SIAFI complies with international best-practice but needs to be updated Date 15-Oct-2011 19-Jun-2013 31-Dec-2015 Comments Conceptual design has been completed. 75% of the processes have been documented Additional functionalities of SIAFI system Text Value Some functionalities have not Budget module ins under All additional functionalities implemented been implemented and others preparation are in place and operating have been implemented partially (travel, HR, administration of goods, etc.) Date 15-Oct-2011 19-Jun-2013 31-Dec-2015 Comments HR Module and National Goods module are operating Public Disclosure Copy under SIAFI II Open Budget Index Text Value Score of 11 out of 100 in OBI 53 out of 100 in OBI 2012 Improvement on OBI index (at 2010 least 50 out of 100). Date 15-Oct-2011 16-Jun-2014 31-Dec-2015 Comments Page 3 of 6 The World Bank Report No: ISR15575 New e-procurement platform implemented and Text Value No transactional e- No transactional e- At least 25% of procurement at least 25% of procurement transactions procurement platform in place procurement platform in place transactions carried out online carried out online Date 15-Oct-2011 16-Jun-2014 31-Dec-2015 Public Disclosure Copy Comments The procurement of the new platform is expected to start in the second half of 2014. Institutional strengthening of ONCAE Text Value Limited institutional capacity No progress yet Procurement units in all of ONCAE to fulfill mandate central government institutions have received training in operation of new e- platform Date 15-Oct-2011 16-Jun-2014 31-Dec-2015 Comments Accreditation of SIAFI users in central Text Value No accreditation in place No progress yet All SIAFI users in financial government institutions management units of central government institutions are accredited. Date 15-Oct-2011 16-Jun-2014 31-Dec-2015 Comments Successful transition of project management Text Value No transition strategy Achieved Successful transition Date 15-Oct-2011 16-Jun-2014 31-Dec-2014 Comments Improved professionalization of public service Text Value Appointments to professional No progress yet Activities supporting in selected institutions positions in key institutions professionalization in one are highly politicized following more institution is completed clientelism rather than technical competence. DEI has completed a revision of career and pay structures Date 15-Oct-2011 20-Jun-2014 31-Dec-2015 Public Disclosure Copy Comments Enhanced control over personnel expenditure Text Value Weak control over personnel No progress yet Implementation of corrective in identified high risk areas expenditure in high risk areas measures following findings of transactions-based payroll audit for contracted personnel in the Health Ministry and in the Public Works Ministry are completed, leading to at least 3 percent savings in contracted personnel Page 4 of 6 The World Bank Report No: ISR15575 expenditures in both institutions on an annual basis Date 15-Oct-2011 20-Jun-2014 31-Dec-2015 Public Disclosure Copy Comments Number of sector cabinets using the indicators Text Value No M&E system in place Three sector cabinets have 6 sector cabinets using the and goals established in the M&E system and been implemented indicators and goals basing their decisions based on the information established in the M&E provided by the system system. An increase in user satisfaction. Date 15-Oct-2011 20-Jun-2014 31-Dec-2015 Comments The increase is to be defined To be defined on the basis of the survey conducted in Y2 Data on Financial Performance (as of 26-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P110050 IDA-50200 Effective 06-Dec-2011 07-Dec-2011 15-Dec-2011 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110050 IDA-50200 Effective XDR 11.70 11.70 0.00 1.76 9.94 15.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR15575 Public Disclosure Copy Key Decisions Regarding Implementation No decision to disclose. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6