The World Bank Report No: ISR7524 Implementation Status & Results Comoros Economic Governance Technical (P102376) Public Disclosure Copy Operation Name: Economic Governance Technical (P102376) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 31-Jul-2012 Country: Comoros Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): UCP/ ABGE Key Dates Board Approval Date 31-Jan-2011 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 30-Apr-2012 Last Archived ISR Date 01-Jan-2012 Effectiveness Date 28-Feb-2011 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 26-Mar-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Economic Governance TA Project is intended to support the government#s ongoing program of institutional building, particularly by strengthening state capacity, accountability and governance. Specifically, the project will contribute towards improving public financial management and public administration. The operation will also be instrumental in helping the authorities maintain a good track record under the ECF-supported IMF program, and in fulfilling key #triggers# towards reaching completion point under the enhanced HIPC initiative. It will also help implement major policy reforms targeted by the complementary DPO. Both operations have beenconceived, along with the ISN, as an integrated package. While the DPO provides visibility and high-level government focus to the reform program in the areas of public administration and public financial management, the proposed TA project will support on-the-ground implementation through technical assistance, learning and equipment. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Rationalizing the Public Financial Management ( PFM) institutional framework and 0.80 processes. Public Disclosure Copy Component 2: Supporting civil services reforms, including wage bill management 0.17 Demand-driven facility 0.13 Project Management 0.27 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Page 1 of 5 The World Bank Report No: ISR7524 Implementation Status Overview A year into implementation, the project has done quite well. Performances are satisfactory with regard to PDO and overall implementation. Progress towards achievement of the Project Development Objectives "PDO" is well advanced and with the current level of support we should be closing by end 2012. The PDO Level Results Indicators of more than 50% of civil servants paid through the automated payroll system is almost achieved. Payments of the Union's and Islands' civil servant salaries from July 2011 to March 2012 were effected Public Disclosure Copy through the GISE. Meanwhile shortcomings noted in the system are undergoing adjustments for a full transfer of all payroll to GISE this year. Furthermore, some Intermediate Results have also progressed satisfactorily mainly (i) the new organic law for PFM was adopted by the Council of Ministers on March 28, 2012; (ii) the Study on the Computerization master plan is completed and awaiting adoption by the Cabinet; and (iii) the reform of the Treasury decree has been adopted by the government. Finally, the actual disbursement rate (after correction) as of March 31 was about 54%. Despite those positive results, additional efforts are required in the area of timely preparation of the budget (PEFA PI-11) and the strengthening of the controls on salaries of civil servants (PEFA PI-18). Finally, a better organization is still required to ensure all the studies so far carried out are properly implemented. Toward that end, a re-allocation of Grant proceeds along with an extension of Grant closing date will be submitted. Thus adequate resources would be allocated to implementation of the ongoing reforms and time will be sufficient to dovetail with the planned Budget support with a view to achieving HIPC Completion point. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target The composition of budget expenditure Percentage Value deviates from the original budget by less than Date 31-Dec-2007 31-Mar-2012 31-Dec-2013 5% (PEFA PI-2) Comments Sectoral classification could Sectoral Classification is Indicator P-12 is rated at "D+" not be made in the 2007 possible. PEFA study as the Indicator P-12 information was not available rated at " D" for Islands- Indicator P-12 was rated at "D" Budget execution reports published (on the Text Value web or national media) regularly Date 22-Nov-2010 31-Mar-2012 31-Dec-2013 Comments Budget execution reports are Production of quarterly budget The comprehensiveness of produced quarterly but with execution report starting. the reports is improved to Public Disclosure Copy only summary information and include social sectors and/or limited distribution priority sectors The share of civil servants paid through the Percentage Value 0.90 1.00 0.90 automated payroll system is above 90% Date 22-Nov-2010 31-Mar-2012 31-Dec-2013 Comments Payrolls are established The government has started The share of civil servants largely on manual basis with the payment of the civil Page 2 of 5 The World Bank Report No: ISR7524 limited automated control servants salary through the paid through the automated mechanisms GISE. Union and 3 Islands' payroll system is above 90% July 11 - March 12 paid through the GISE. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target A new Organic Law for PFM prepared for Text Value adoption Date 29-Feb-2012 31-Mar-2012 31-Dec-2013 Comments Existing texts (Organic Law The draft Organic Law Law submitted for adoption to on Law of Finance, Decree adopted by the Cabinet in the Parliarment public accounting, March 12 and being prepared Classification, Chart of for Parliament to enact the accounts) take no account of law. Appointment of Sr staff Comoros' unique in Treasury (Union and constitutional evolution Islands) to follow before end of 2012. Annual budget prepared in timely manner Text Value Belated budget approval by Budget prepared in March Budget preparation calendar (PEFA PI-11) Sub Type the legislature or similarly 2012. is respected (FY13)- Indicator mandated body. Lack of P-I-11 is rated at "C" Supplemental active participatory involvement of federal and island administrations in the preparation of budget submissions - Indicator P-I-11 was rated at "D+" Limited use of budgetary adjustements during Text Value Budgetary adjustments are Indicator PI-16 is rated C the FY (PEFA PI-16) Sub Type relatively frequent during th year reflecting a poor Supplemental anticipation of cash flows and Public Disclosure Copy inefficient tracking of expenditures during the year- Indicator PI-16 is rated "D" Enhanced computerization of budget Text Value PFM information systems are Selection and roll out of management and reporting (Indicator PI-24) Sub Type rudimentary. Indicator PI-24 is accounting module of the rated "D" applied software publication Supplemental of a monthly four phase Page 3 of 5 The World Bank Report No: ISR7524 statement by entities and consolidated, consistent with approved budget 45 days after FY period end; Public Disclosure Copy Production of the Closed accounts (compte general administration Finances); indicator PI-24 is rated "C" Data on Financial Performance (as of 17-Jul-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P102376 IDA-H6460 Effective 31-Jan-2011 23-Feb-2011 28-Feb-2011 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102376 IDA-H6460 Effective XDR 1.20 1.20 0.00 0.73 0.47 61.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR7524 Key Decisions Regarding Implementation The Government has taken the lead in sensitizing the population with regard to the PFM reforms as well as the revenue sharing mechanism necessary for improved transparency in the budgetary process, the inter-islands allocation and the controls over the expenditures. The new organic law on public finances- PFM Bill "Loi sur les Operations Financieres de l'Etat- LOFE" was introduced by the President in a keynote speech broadcast over several days on TV, radio and printed in large newspapers . The Bank will continue to provide Public Disclosure Copy support, through the component 3 of the project , to the government to reach to a broad consensus between the Union and the Islands on some matters such as the nature and the extend of the Islands' financial autonomy in order to facilitate the implementation of the proposed PFM and civil services activities of the Economic & Governance Technical Assistance "ABGE". Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5