Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) Dominican Republic Public Expenditures Management (RE) (P129428) LATIN AMERICA AND CARIBBEAN | Dominican Republic | Governance Global Practice | Recipient Executed Activities | Technical Assistance Loan | FY 2012 | Seq No: 2 | ARCHIVED on 20-Apr-2016 | ISR23194 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:04-Jan-2012 Effectiveness Date:06-Dec-2012 Original Closing Date:31-Dec-2014 Revised Closing Date:13-Jun-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of this task is to support the Ministry of Finance and other agencies with the Government of the Dominican Republic in their efforts to improve public expenditure management. Specifically, the objectives to be financed are to: (i) design and implement and integrate multiyear planningand budgeting; (ii) design and implement a Treasury Single Account for the central administration; and (iii) improve public sector procurement policies and practices. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Implementation Status and Key Decisions Under the Recipient Executed Trust Fund (RETF), of the total Grant amount US$ 1,083,915 made available to the Government as of February 2016, cumulative disbursements to date total US$ 729,730. During this period, with coordinated support through the BETF and the RETF, the Budget 4/20/2016 Page 1 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) Directorate was able to develop the functional methodologies for the new budgeting framework; the Ministry of Planning and Economic Development was able to develop the conceptual framework for a new National System for Monitoring and Evaluation; the National Treasury was able to consolidate the Treasury Single Account further; and the Public Procurement Directorate was able to launch the first version of an e-procurement portal, as well as registering significant progress in the implementation of the civic oversight commissions for public procurement. With respect to the Bank Executed Trust Fund (BETF), during the period July 2015 to February 2016, the Bank delivered the technical assistance products associated with the conceptual, functional, and operational models of the new budgeting framework for the Budget Directorate, per the work plan for this institution that had been endorsed at the July 2015 Steering Committee. In the period since the beginning of the Trust Fund through February 2016, approximately US$ 1,750,000 has been disbursed under the BETF. Together, these figures suggest that approximately 67% of all European Union Trust Fund resources have been disbursed to date. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  Moderate  --  Moderate Comments The upcoming presidential elections of May 2016 constitute a risk in maintaining the consistency of achievement in the implementation of the Project work plan. The Bank team is mitigating this risk by engaging in regular dialogue with the beneficiary entities, which continue to demonstrate commitment to the scope of work associated with the pursuit of the PDO. Results Project Development Objective Indicators PHINDPDOTBL Multi-year perspective in fiscal planning, expenditure policy and budgeting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Forecasts of fiscal Since Project inception, Multiyear aggregates on the basis of the recipient has planning and main implemented initiatives budgeting is categories of economic through this Project that stronger and and functional/sector have strengthened the the link classification are not Awaiting PEFA update linkage between the between the Value prepared yet. Links assessment in 2015 Ministry of Economy, national plan between Planning, and and the budget multi-year estimates and Development, which is is stronger as subsequent setting of in charge of the national measured annual development planning through the budget ceilings are very process, and the PEFA indicator 4/20/2016 Page 2 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) weak. Some sector National Budget #12 (score for strategies Directorate, in the 2014 PEFA have been prepared, but design, execution, and assessment none of them have monitoring and increases from substantial evaluation of public 2010 average complete costing of programs that link to the C level) investments and recurrent achievement of expenditure. Many outcomes outlined in the investment decisions have National Development very Strategy. Specifically, weak links to sector with assistance from the strategies and their Project, a health sector recurrent cost program on implications are not immunization became included in forward budget the first pilot program to estimates. be treated under the newly introduced medium-term budgeting methodology, and was included in the National Budget Law of 2015. RETF resources supported the contracting of specialized technical assistance to develop the program methodology and score cards that the Budget Office and the Ministry of Planning employed jointly in the formulation of this pilot program. Date 01-Nov-2010 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDPDOTBL Predictability in the availability of funds for commitment of expenditures (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Although a cash flow This area has improved Control and forecast is prepared for the as a result of the efficiency of fiscal introduction of the revenue year and updated, on the Treasury Single collection and basis of actual cash Account, which, with budget inflows Project support, has execution and outflows and Ministries consolidated above 90 strengthens are provided reliable percent of all through information on commitment Awaiting PEFA update Government accounts, implementation Value ceilings, significant inyear assessment in 2015 nearing full coverage. of a Single budget adjustments are RETF resources Treasury frequent, particularly at supported the Account the end of the year, contracting of technical (scores for undertaken with a lot of assistance to build an 2014 PEFA discretion interface between the indicators # 16 and little transparency. The government's integrated increases from reduces the credibility of financial management C+ on average the budget execution. system (SIGEF) and the from 2010) 4/20/2016 Page 3 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) TSA, as well as to design and implement a strategy to incorporate external resources (public debt, credits, and donations) into the TSA platform. Also during this period, with coordinated assistance from the BETF, the Government was able to develop a strategy for the management of short and medium-term debt, an important step in modernizing cash management based on a consolidated TSA platform. Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDPDOTBL Recording and management of cash balances (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This area has improved as a result of the introduction of the Treasury Single Account, which, with Project support, has consolidated above 90 percent of all Government accounts, Control and nearing full coverage. efficiency of Most cash balances RETF resources revenue calculated and supported the collection and consolidated daily contracting of technical budget for the accounts managed assistance to build an execution directly by National interface between the strengthens Treasury, but some extra- Awaiting PEFA update government's integrated through Value budgetary funds remain assessment in 2015 financial management implementation outside the arrangement system (SIGEF) and the of a TSA (score from accounts in sector TSA, as well as to for 2014 PEFA Ministries that still maintain design and implement a indicator # own revenue sources and strategy to incorporate 17(ii) other autonomous and external resources increases from decentralized entities. (public debt, credits, and B to A from donations) into the TSA 2010) platform. Also during this period, with coordinated assistance from the BETF, the Government was able to develop a strategy for the management of short and medium-term debt, 4/20/2016 Page 4 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) an important step in modernizing cash management based on a consolidated TSA platform. Date 01-Nov-2010 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDPDOTBL Competition, value for money and controls in procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This indicator has also improved considerably, as indicated in the progress reports published regularly by the Public Procurement Directorate: during this period, the number of public procurement processes that have been published online has increased exponentially, and the In general insufficient data formulation and exists to assess the Public sector publication of annual method procurement procurement plans have used to award many public policies and been promising - efforts contracts and the available practices that the Project has data indicates that use of improve as supported through open competition is limited. measured by assistance to the Regulatory requirements PEFA indicator implementation of the e- do not clearly establish # 19 procurement portal and open (score of 2014 Awaiting PEFA update civic oversight Value competition as the PEFA assessment in 2015 commissions in public preferred method of assessment procurement. procurement. increases from Specifically, during this No data is available on 2010 D level.) period, the Project whether a process is Improvements supported the defined to along the four workshops and enable submitting and dimensions of dissemination efforts addressing complaints the OECD associated with the civic regarding procurement oversight commissions the implementation of the methodology and open procurement procurement process. initiatives, and the contracting of technical assistance to revise the regulatory framework to enable the implementation of the e- procurement portal. BETF resources have complemented these initiative by providing IT technical assistance in the implementation of the e-procurement 4/20/2016 Page 5 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) portal, as well as through contracting local consultants to assist in the execution of the work programs of the civic oversight commissions in line with international good practice in citizen participation in public procurement practices. Date 01-Nov-2010 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDPDOTBL Predictabilityof direct budget support and financial information provided by donors for project budgeting and reporting on project and program aid (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Despite being an indicator that the new PEFA framework proposes to drop, this indicator has also shown No comprehensive and progress based on timely forecast for the year initiatives that the is Better donor National Treasury has provided by the main practices and taken in order to donor agencies and implementation incorporate external predictability of a STA resources into the is very low in both volume improve budget Treasury Single and dates. This negatively execution and Account, which the affects the Government’s Awaiting PEFA update predictability Value Project has supported. financing planning and assessment in 2015 (scores for In the next reporting delays project 2014 period, RETF resources implementation. Only PEFA will be used for technical some agencies indicators D1 assistance to complete covering around 55% of and D2 the incorporation of total apply fiduciary, increase from D external resources accounting and auditing in 2010) (public debt, credits, standards required by the grants, and donations) country. into the TSA, for which the strategic framework has been completed with assistance from the BETF. Date 01-Nov-2010 10-Dec-2014 04-Apr-2016 30-Dec-2016 Overall Comments Intermediate Results Indicators 4/20/2016 Page 6 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) PHINDIRITBL The conceptual design for the national M&E system is available (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The conceptual design for the National M&E System, whose development the Project supported, has been established through a Presidential Decree issued in September 2015. The issuance of this Presidential Decree was also a prior action for the DPL on Strengthening Management of Public Finances (P155425), which was disbursed in December 2016. PHINDIRITBL A series of M&E tools have been prepared including terms of reference for evaluations, review of indicators and performance reports (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments Following the issuance of the Presidential Decree that established the National M&E System in September 2015, which set the stage for the implementation of the new system, the Bank team has assisted MEPyD in developing a terms of reference for the development of a technological platform for the National M&E System, which will streamline monitoring, evaluation, and review of indicators for monitoring progress towards the achievement of the goals established in the National Development Strategy (NDS). The procurement process for the consultancies to implement these terms of reference is underway, and is expected to be completed by the end of April 2016. PHINDIRITBL An evaluation agenda has been prepared for 2012-14 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The formulation of a National Evaluation Agenda, based on the Presidential Decree on the National M&E System that was issued in September 2016, is currently underway. This IR is also an expected result for the prior action on the establishment of a National M&E System in the DPL on Strengthening Management of Public Finances. 4/20/2016 Page 7 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) PHINDIRITBL Forecasts of fiscal aggregates on the basis of main categories of economic and functional/sector classification ready (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments While the National Budget for 2015 demonstrates forecasts of fiscal aggregates on the basis of main categories of economic and functional/sector classification, further assessment is needed to judge the extent to which this is in line with best practice. The team will make final judgment on the achievement of this IR in the next ISR. PHINDIRITBL MTFF/MTEF is aligned with National Strategic Plan (END) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The Government does not have an MTFF/MTEF that conforms with international good practice that characterizes such frameworks. However, public sector investments and expenditures are guided by a Multiannual Plan for the Public Sector, which outlines the series of public programs to be undertaken by each sector, in alignment with the National Development Strategy. The progress in the achievement of the Multiannual Plan for the Public Sector, and its contribution to the achievement of the goals set forth in the National Development Strategy, is monitored and reported on regularly. While the Government continues to introduce principles of medium term planning into its budgetary and expenditure practices, and the institutionalization of such practices will take several iterations and budget cycles, for the purposes of what this IR intended to measure (the alignment of investment and expenditure plans with the National Strategy), the team concludes that this IR has been largely achieved. PHINDIRITBL A pilot control panel has been designed with key performance indicators to measure program and institutional performance (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments With coordinated assistance from the BETF, the Budget Office has developed a methodology for results-based budgeting, which includes a score card to measure program performance from a budgetary perspective. This score card was employed in the formulation of the health sector pilot program, which was included in the National Budget Law of 2015. 4/20/2016 Page 8 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) PHINDIRITBL sector strategies (education, health) have been prepared with substantial complete costing of investments and recurrent Pilot expenditure (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments While not all pilot sector strategies have been prepared with substantial complete costing of investments, a key pilot program in health was introduced into the National Budget in 2015, employing for the first time the newly introduced medium-term, results-based costing methodologies supported under this Project. The National Budget Office has committed to continuing to refine these methodologies and employ them to more sector programs during the next budget cycle. PHINDIRITBL Norms, processes and procedures to implement the STA available (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDIRITBL Inventory of accounts has been finalized (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDIRITBL Single account module has been designed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 4/20/2016 Page 9 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) PHINDIRITBL STA implemented in pilot institutions (SIGEF/UEPEX) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDIRITBL Comprehensive review and detailed recommendation to address current gaps in the framework is available (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 PHINDIRITBL OECD procurement methodology applied (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments While the Government no longer takes the OECD procurement methodology as a firm reference point, due to assessments performed during Project implementation raising concerns about the applicability of this methodology for the Dominican context, the Public Procurement Directorate has undertaken a comprehensive review of current gaps and proposed modifications to the existing regulatory framework accordingly, and has continued to align its processes with international good practice. The proposed amendments to the Public Procurement regulations, currently under review and expected to be issued through a Presidential Decree, conform with international good practice. Therefore, the team considers that the spirit of this IR (the introduction of regulatory improvements in line with international good practice in public procurement) has been largely achieved. 4/20/2016 Page 10 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) PHINDIRITBL The new procurement process model is available (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The Public Procurement Directorate has completed he development and pilot introduction of a new, transactional e-procurement portal, which embodies the new procurement model in line with international good practice. PHINDIRITBL All procurement processes and results are published in the procurement portal (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N N Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The number of procurement processes that are published online in the existing procurement portal has increased exponentially since 2011, and continues to increase, which in itself represents a significant achievement. It is not expected, however, that all procurement processes and results can be published in the new e-procurement portal by the end of this project. PHINDIRITBL New DGCP procurement portal is active and functioning (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The new DGCP procurement portal has been completed and introduced in pilot institutions. The achievement of this IR was also a prior action in the Strengthening Management of Public Finances DPL. 4/20/2016 Page 11 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) PHINDIRITBL Key activities from the DGCP Strategic Plan have been implemented (e.g. pilot implementation of framework contracts or linkages to budget and SIGEF) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Nov-2011 10-Dec-2014 04-Apr-2016 30-Dec-2016 Comments The DGCP Strategic Plan has seen modifications since the inception of the Project - for instance, pilot implementation of framework contracts is no longer a priority - and new priorities have been emphasized, including amendments to procurement regulations, completion of the e-procurement portal, and advancing civic oversight commissions and citizen observatory initiatives. Many of these initiatives have been implemented successfully, and work continues to build linkages between the new e-procurement portal and SIGEF. Therefore, the team considers this IR achieved. Overall Comments The conceptual design for the National M&E System (IRI1), whose development the Project supported, has been established through a Presidential Decree issued in September 2015. Following the issuance of this Decree, which set the stage for the implementation of the new system, the Project has sped up its initiatives to prepare a series of M&E tools including terms of reference for evaluations, review of indicators and performance reports (IRI2), as well as a national evaluation agenda corresponding to the period (IRI3). While the National Budget for 2015 demonstrates forecasts of fiscal aggregates on the basis of main categories of economic and functional/sector classification (IRI4), further assessment is needed to judge the extent to which this is in line with best practice. The Government does not have an official MTFF/MTEF aligned with National Strategic Plan (IRI5), but public programs are largely aligned with the objectives set forth in the National Strategic Plan, and progress is monitored regularly. Additionally, while not all pilot sector strategies have been prepared with substantial complete costing of investments (IRI7), a key pilot program in health was introduced into the National Budget in 2015, employing for the first time the newly introduced medium-term, results-based costing methodologies supported under this Project. All IRIs associated with the implementation of the Treasury Single Account (IRIs 8,9,10, and 11) have been achieved. The Public Procurement Directorate has undertaken a comprehensive review of current gaps (IRI12), proposed modifications to the existing regulatory framework accordingly, and has continued to align its processes with international good practice, through the development and introduction of the e-procurement portal in Government institutions, and activities continue to be implemented to link the portal to the budget and SIGEF systems (IRIs 13-17). The extent of progress in these IRIs further justify an upgrade of implementation progress to moderately satisfactory, with the expectation that the remaining project funds will continue to be used in full pursuit of the achievement of all IRIs. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P129428 TF-11524 Effective USD 1.04 1.04 0.00 0.75 0.32 73% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P129428 TF-11524 Effective 21-Mar-2012 23-Apr-2012 06-Dec-2012 31-Dec-2014 13-Jun-2016 Cumulative Disbursements 4/20/2016 Page 12 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Dominican Republic Public Expenditures Management (RE) (P129428) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/20/2016 Page 13 of 13 Public Disclosure Copy