The World Bank Report No: ISR12302 Implementation Status & Results Timor-Leste Planning and Financial Management Capacity Building Program (P092484) Public Disclosure Copy Operation Name: Planning and Financial Management Capacity Building Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 12-Nov-2013 Program (P092484) Country: Timor-Leste Approval FY: 2006 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Mar-2006 Original Closing Date 10-Jul-2011 Planned Mid Term Review Date Last Archived ISR Date 15-Apr-2013 Effectiveness Date 15-Nov-2006 Revised Closing Date 31-Jan-2014 Actual Mid Term Review Date 04-Jun-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) Capacity in the Ministry of Finance strengthened for prudent, effective and accountable planning and management of public finances to promote growth and poverty reduction. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Capacity in the General Directorate of State Finances 7.40 Strengthening Capacity in the General Directorate of Revenue and Customs 3.50 Strengthening Capacity in the General Directorate of Policy Analysis and Research 2.94 Strengthening Capacity in the General Directorate of Corporate Services 6.03 Professional Development Program 2.80 Public Disclosure Copy Program Implementation 2.40 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status Overview Page 1 of 6 The World Bank Report No: ISR12302 This ISR (Sequence number 9) is a partial update of the April 2013 ISR (Sequence number 8), with a focus on results indicators and preliminary findings from a recent Implementation Support mission, timed in mid October at the government's request in order to coincide with discussions on a successor donor project. A new ISR (sequence number 10) will shortly be entered to incorporate full findings from that mission, in particular relating to overall implementation progress and risk rating. That will Public Disclosure Copy be the last ISR before the project closes in January 2014. Highlights since ISR number 8, to be fully captured in ISR sequence number 10 include: - Continued progress across the results areas during the extension period, with noteworthy deliverables including budget preparation with much less external assistance than previous years, publication of the 2000-2011 National Accounts, draft tax and customs codes, financial regulations, and treasury operations manual. - The World Bank continues to be represented on the Consultative Committee of the Ministry of Finance - the MoF's regular Senior Management Meeting - now formally also representing all donors. - A number of initiatives have significantly strengthened MoF management, including updated Annual Action Plans with key performance indicators to implement the MoF Strategic Plan and the new government 5 year plan, MoF task and staff mapping exercises, a skills gap analysis, and a formal process for identifying training needs, candidates and courses. - Results reporting strengthened by linking the programme results framework to the Ministry of Finance's results framework. - Quick replacement of the senior programme manger, although a lack of handover has meant the loss of some institutional memory as we prepare for project closure. - Good use of the Programme Implementation Unit staff to build capacity of counterparts in the Directorate General for Corporate Services. - Good coordination between the World Bank and donors to prepare the follow-on programme of support to the Ministry of Finance, although uncertainty remains around the nature and timing of this, and the technical assistance requirements. Locations Country First Administrative Division Location Planned Actual Timor-Leste Distrito Dili Dili Timor-Leste Not Entered Democratic Republic of Timor-Leste Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Institutional Development and Capacity Text Value IDCBP implemented in part Part implementation and M&E Building Plan implemented and ongoing needs through MOF reorganization of IDCBP. identified. and merit-based appointment Public Disclosure Copy process. Agreed it will be finalised as part of Strategic Plan process to December 2010. Date 03-Jun-2010 19-Mar-2012 30-Nov-2012 Comments Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR12302 Indicator Name Core Unit of Measure Baseline Current End Target Budget with medium-term outlook submitted to Text Value 2010 Budget submitted on 2014 Budget with medium Continued timely submission Parliament on time. time as per Budget and term outlook submitted on of quality budget, and Public Disclosure Copy Financial Management Law. time as per Budget and improved medium-term fiscal Strengthen quality of forward Financial Management Law. forecasts. estimates. Date 03-Jun-2010 29-Oct-2013 31-Jan-2014 Comments Fiscal discipline maintained through reduction Text Value Reduction in non-oil deficit Reduction in non-oil deficit to in the non-oil deficit as a % of GDP. (<100% of non-oil GDP) <80% of non-oil GDP. following moderation in spending growth for 2009 and 2010 State Budgets. Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Aggregate revenue and expenditure outturn # Text Value Revenue outturn is over 90% Aggregate revenue and 80% of budget in the last two years in 2009, compared to around expenditure outturn at least 75% in 2008. Expenditure 85% of budget in last two outturn in 2009 is close to years. 90%. Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments # Quarterly publication of budget Text Value Reports have been submitted Quarterly reports in 2013 Continued full functionality of execution reports within two months of the end on time to Parliament. published within two months Transparency Portal. of the quarter. of the end of the quarter. Date 03-Jun-2010 29-Oct-2013 31-Jan-2014 Comments Daily reconciliation of government bank Text Value Full reconciliation of accounts Government accounts up to accounts using FMIS. 2005-09 ($850mn in receipts date and reconciled in FMIS. and $800mn in payments). Public Disclosure Copy Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Timely publication of audited annual financial Text Value Annual Audited Accounts for Publication of annual audited accounts. 2008 are published as financial accounts within 30 required though with some days after its presentation to delay because of change in the Prime Minister. auditors Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Page 3 of 6 The World Bank Report No: ISR12302 Improving results from public perception Text Value In 2010, first survey by Asia Improving results from public surveys, for each Directorate, of efficiency, Foundation shows a poor perception surveys, for each effectiveness, ethics and integrity public perception of Customs, Directorate, of efficiency, slightly better for Revenue effectiveness, ethics and Public Disclosure Copy integrity Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Increasing domestic tax collections as a % of Text Value In 2009, domestic tax was 9% Increasing domestic tax non-oil GDP of non-oil GDP, an increase collections as a % of non-oil from 8% in 2007 GDP Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments National accounts published by the Statistics Text Value Source data for national A comprehensive set of Source data for national Directorate and three staff trained as national accounts being established, national accounts covering accounts established; national accounts specialists by July 2011 and efforts under way to 2001-2011 published in 2013. accounts published; and three appoint staff. SD have set staff trained. April 2011 to publish national accounts and GDP estimates Date 03-Jun-2010 29-Oct-2013 31-Jan-2014 Comments Statistics Work Plan agreed by MoF and other Text Value Key elements of SWP being SWP being implemented as Completion of initial targets stakeholders, with implementation plan agreed implemented (HIES, BAS and demonstrated by the data within the SWP. and funding secured by end-2010 APS). Additional funding release sechulde and data secured from other donors. published online. Date 03-Jun-2010 29-Oct-2013 31-Jan-2014 Comments Macroeconomic framework sets annual budget Text Value A macro framework has Macro framework in place and National staff able to update ceilings starting in 2009, with four staff able to started to set the annual it has been used to set the and interpret macro model update and interpret the framework byJuly budget ceilings. The model is medoum term ceilings and and framework. 2011 gradually being updated and outlook for the budget in FY13 refined. At this stage it seems and FY14. Two staff trained Public Disclosure Copy unlikely that four staff will be so far but not fully proficient. able to update and interpret the framework by July 2011 Date 03-Jun-2010 29-Oct-2013 31-Jan-2014 Comments Completion of merit-based appointments Text Value Appointment of Grades A-B More than 75% of positions across MOF and more than 75% are qualified completed. Performance occupied by qualified staff. staff. management system being developed. Page 4 of 6 The World Bank Report No: ISR12302 Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Establishment and staffing of Internal Audit Unit Text Value No progress to date. Establishment and staffing of Public Disclosure Copy Internal Audit Unit. Date 03-Jun-2010 03-May-2011 31-Jan-2014 Comments Establishment and staffing of Legal Unit Text Value Limited progress to date -- Establishment and staffing of difficulty in finding suitably Legal Unit. qualified staff. The Program has provided important in-line function. Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Improved project supervision rating on Text Value Improvements in all aspects Satisfactory ratings across all implementation progress, procurement and of program implementation program implementation financial management though more work needed on indicators. FM, M&E, and reporting Date 03-Jun-2010 19-Mar-2012 31-Jan-2014 Comments Data on Financial Performance (as of 10-Oct-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P092484 IDA-H2100 Effective 21-Mar-2006 18-May-2006 15-Nov-2006 10-Jul-2011 31-Jan-2014 P092484 TF-93959 Effective 18-Mar-2009 18-Mar-2009 18-Mar-2009 10-Jul-2011 31-Jan-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P092484 IDA-H2100 Effective USD 7.00 7.00 0.00 7.43 0.00 106.00 P092484 TF-93959 Effective USD 25.10 25.10 0.00 23.35 1.75 93.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR12302 Public Disclosure Copy Key Decisions Regarding Implementation Following a request from the Minister of Finance, the World Bank agreed to extend the project for fourteen months. The project closing date is now 31 January 2014. Restructuring History Level one Approved on 19-Feb-2010, Level two Approved on 25-May-2011 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6