The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Public Finance Management Modernization Project 2 (P150381) EUROPE AND CENTRAL ASIA | Tajikistan | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 7 | ARCHIVED on 14-Dec-2018 | ISR35096 | Implementing Agencies: Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 01-Jun-2015 Effectiveness Date: 10-May-2016 Planned Mid Term Review Date: 01-Oct-2019 Actual Mid-Term Review Date: -- Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to improve effectiveness, control and accountability of public expenditure of the Republic of Tajikistan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1. Public Finance Management Modernization:(Cost $8.80 M) 2. Strengthening Public Procurement:(Cost $2.50 M) 3. Strengthening External Audit:(Cost $2.70 M) 4. Managing Public Administration Reforms:(Cost $4.90 M) 5. Project Management:(Cost $2.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Key progress during the reporting period are the following: 1. Under component 1 (Public Finance Management Modernization), the retendering process for three modules (Cash Management, Commitment Management and Asset Management) under the Tajik Fiscal Management Information System (TFMIS) was successfully completed and the Ministry of Finance signed the contract in July 2018. Work has started and it is expected that the assignment will be completed in December 2020, six months before the project closing date. 12/14/2018 Page 1 of 7 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) 2. Under component 2 (Improving e-Procurement System and Infrastructure), a consultant was contracted in June 2018 to support development of the procurement strategy, identification of needs in resources, workforce, support, reporting, operational maintenance, training plan and roll out and communications was contracted in June 2018. The consultant’s inception report was submitted on October15, 2018 and is currently under review. Likewise, the selection of an international e-procurement consultant to help the Public Procurement Agency (PPA) to create the terms of reference for the functional and technical specifications for the enhancement of the e-procurement system has been completed. The contract is expected to be signed in early December 2018. 3. Under component 3 (Strengthening External Audit), the international consultant has completed (a) a report on review of legislation establishing the Camber of Accounts (CoA), including recommendations for revisions considered necessary to better align with INTOSAI standards and practices, envisaging gradual adoption as the CoA capacity developed over time; (b) a report on review of the CoA’s organizational structure; and (c) technical specifications for IT systems installation, including fiber-optic networking, hardware and software requirements. 4. Under component 4 (Managing Public Administration) work is progressing on the development of proposals for legal framework, designing a strategic planning process and methodology, nine sector templates, and training for officials, which are expected to contribute to better outcome of strengthening policy-based fiscal strategy and budgeting (as measured by PEFA). With respect to the Development of Human Resource Management System, the Civil Service Agency (CSA) is working on obtaining a Government Resolution for legal amendments for competitive selection, performance appraisal and rotation within the civil service. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic High High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders High High High Other -- Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improved effectiveness of PFM IN00608651 ►Improved effectiveness of public expenditure measured by the increased alighnment of expenditure with policy priorities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.00 18.00 75.00 12/14/2018 Page 2 of 7 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Date 01-Jan-2013 12-Jun-2018 01-Oct-2018 30-Jun-2021 Improved control of public expenditure IN00608646 ►Improved control of public expenditure measured by the stock of expenditure payment arrears (in percent of total expenditure by period) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 2.00 Date 01-Jan-2013 12-Jun-2018 01-Oct-2018 30-Jun-2021 Improved accountability of public expenditure IN00608652 ►Improved accountability of public expenditure measured by the quality of annual financial reports (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 8.00 10.00 12.00 Date 01-Jan-2013 12-Jun-2018 01-Oct-2018 30-Jun-2021 The consolidated financial statements of the budget sector was prepared for 2014, 2015, 2016 and 2017 Comments: IN00608653 ►Improved accountability of public expenditures measured by the quality of financial audit (PI-26i) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 75.00 Date 01-Jan-2013 12-Jun-2018 01-Oct-2018 30-Jun-2021 According to the results of 2017 the central government entities representing less than 50% of total Comments: expenditures were covered by audits. Intermediate Results Indicators by Components 1. Public Finance Management Modernization IN00608568 ►Additional functionalities (modules) of TFMIS (commitment control, cash management, payment order processing, assets management andpayroll management) installed and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 5.00 Date 01-Jan-2015 12-Jun-2018 12-Jun-2018 30-Jun-2021 The 5-year Treasury Development Plan was approved by the decision of the 3rd PFM Coordination Council dated August 11, 2015 No. 1/3, which determines the introduction of all necessary modules of the Comments: TFMIS. The Ministry of Finance of the Republic of Tajikistan under the support of the State Unitary Enterprise “IFOSC”, has developed independently a bank payment management module and implemented it from January 1, 2017. On July 2018, MoF signed a contract with consulting company to 12/14/2018 Page 3 of 7 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) assist with implementation of commitment control, cash management and assets management modules. The work is underway. IN00608569 ►Timeliness of annual financial reports (PI-25ii) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 9.00 7.00 6.00 Date 01-Jan-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The financial reporting on a cash basis in accordance with budget classification is submitted to the Government of the Republic of Tajikistan within 6 months of the end of the fiscal year, to the Parliament of the Republic of Tajikistan and to the External Audit (Chamber of Accounts of the Republic of Tajikistan) within 7 months of the end of the fiscal year. The indicated terms of submission of reporting are set by the Comments: Law on the Public Finance. The financial reporting on an accrual basis in accordance with TPSAS is formed, however a transition period to 2020 is determined by the Public Sector Accounting Strategy in which the formed financial reporting on an accrual basis is trial and is not submitted to external audit. 2. Strengthening Public Procurement IN00608570 ►Key procurement information is made available to the public in a timely manner through appropriate means (PI-19iii) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 22.00 72.00 100.00 Date 01-Jan-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The Agency on Public Procurement of Goods, Works and Services under the Government of the Republic of Tajikistan forms the annual procurement reports. According to 2017 report, the number of accredited procuring entities covered by this report makes 72% from the total number. Currently, the reports are not Comments: published. It is expected that at the end of 2018, the reports will be published on the public procurement portal (zakupki.gov.tj). According to the Agency’s data for 9 months, 100% of the number of accredited procuring entities are covered by this report IN00608650 ►Total value of contracts that were awarded through an open and competitive process (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 98.00 94.00 100.00 Date 01-Jan-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The Agency on Public Procurement of Goods, Works and Services under the Government of the Republic of Tajikistan has made a report on awarded contracts under the open and competitive procurement process in 2017. According to the report, 94.11% of contracts were awarded under the open and competitive process. Comments: According to the Agency's report for 9 months of 2018, 93.6% of the purchases awarded under the open and competitive procurement process, 6.4% are the purchases from one source. In June 2018, the share of contracts awarded through open competition was 98%, but due to increase in number of contracts awarded through single source selection the share of open competition contracts dropped to 93.6%. 12/14/2018 Page 4 of 7 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) 3. Strengthening External Audit IN00608648 ►Evidence of follow up on audit recommendations (in percent of audit recommendations) (PI-26iii) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 25.00 25.00 80.00 Date 01-Jul-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The information will be updated after next supervision mission in April 2019. Comments: IN00608649 ►Coverage of external audit (in percent of total expenditure) (PI-26i) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 75.00 Date 01-Jan-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 According to the results of 2017 the central government entities representing less than 50% of total Comments: expenditures were covered by audits. 4. Managing Public Administration Reforms IN00608567 ►The number of services available through e-Governance system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 01-Jan-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The e-government roadmap was developed by an international consultant. This document is under consideration in the EOP RT for further approval. The electronic address of citizens is functioning through the official website president.tj, electronic visa through the website e-visa.tj, electronic tax reporting through andoz.tj, internet banking of the banking sector, electronic public procurement through zakupki.gov.tj, electronic request and SMS informing about fines of the traffic police through the Shakhri Comments: bekhatar system, an electronic diary in some educational institutions, electronic notification about the results of testing of applicants through the website ntc.tj, the legal information bank of the Republic of Tajikistan www.adlia.tj, payment of salaries and related taxes of BO, through Internet banking through FMIS etc. But since the above e-services were implemented out of project funds, the actual number of e- services implemented from the project funds is zero. IN00608647 ►Timeliness of changes to personnel records and the payroll (months) (PI-18ii) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 4.00 1.00 0.00 Date 01-Jan-2013 12-Jun-2018 01-Oct-2018 30-Jun-2021 All changes in personnel are taken into account by the personnel service. All changes upon their accomplishment are sent to the accounting department. Accounting department every month, when Comments: calculating salaries takes into account all changes in staff in a mandatory manner. At the moment, all these operations are carried out manually and in hard copy. Some public institutions have special software for personnel accounting, payroll accounting and payment. 12/14/2018 Page 5 of 7 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) 5. Project Management IN00608654 ►Project supported NGO publishing reports on feedback received and how this feedback has been used. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Sep-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The assignment will be implemented in 2019. Comments: IN00608655 ►Beneficiaries satisfied with systems and procedures implemented by the project, as measured by user satisfaction surveys (percent of users surveyed) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 01-Sep-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 The current actual number is zero since survey has not been conducted yet. The assignment will be Comments: implemented in 2019. IN00608656 Percent of women beneficiaries satisfied with systems and procedures implemented by the project, as measured by user satisfaction surveys (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 01-Sep-2015 12-Jun-2018 01-Oct-2018 30-Jun-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150381 IDA-56310 Effective USD 5.50 5.50 0.00 0.00 5.84 0% P150381 IDA-D0550 Effective USD 4.50 4.50 0.00 2.27 2.19 51% P150381 TF-A1735 Effective USD 9.77 9.77 0.00 2.58 7.19 26% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 12/14/2018 Page 6 of 7 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) P150381 IDA-56310 Effective 01-Jun-2015 17-Feb-2016 10-May-2016 30-Jun-2021 30-Jun-2021 P150381 IDA-D0550 Effective 01-Jun-2015 17-Feb-2016 10-May-2016 30-Jun-2021 30-Jun-2021 P150381 TF-A1735 Effective 17-Feb-2016 17-Feb-2016 10-May-2016 30-Jun-2021 30-Jun-2021 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/14/2018 Page 7 of 7