The World Bank Report No: ISR8854 Implementation Status & Results Ethiopia Public Sector Capacity Building Program Support Project (P074020) Public Disclosure Copy Operation Name: Public Sector Capacity Building Program Support Project Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 29-Dec-2012 (P074020) Country: Ethiopia Approval FY: 2004 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 11-May-2004 Original Closing Date 07-Jul-2009 Planned Mid Term Review Date Last Archived ISR Date 21-Aug-2012 Effectiveness Date 22-Nov-2004 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 19-Mar-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to support the Borrower implement the Program, including: (a) improving the scale, efficiency and responsiveness of public service delivery at the Federal, Regional and local levels; (b) empowering its citizens to participate more effectively in shaping their own development; and (c) promoting good governance and accountability in its public sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost FEDERAL PSCAP 30.00 REGIONAL PSCAP 120.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview IDA's support to the project is expected to be closed on December 31, 2012. Government will continue the program using funding from treasury and other development partners. Relevance: The development objectives of the project maintained their relevance throughout the years of implementation. They are aligned to and support the public sector capacity building and governance pillars in the Government's Poverty Reduction Strategies (2003-present), the World Bank Strategy for Africa (2011) as well as the Country Assistance Page 1 of 20 The World Bank Report No: ISR8854 Strategies for Ethiopia (2003-present). The pillars are meant to address systemic constraints in human and institutional capacity as well as inadequate accountability and transparency in order to provide better public service, empower citizens to participate in matters affecting their lives and promote transparency and accountability in the public sector. Similarly the design features and implementation arrangements largely worked quite well during implementation of the project. Public Disclosure Copy Efficiency: The reforms supported by the project were able to achieve a lot more than the activities indicated in the original five year action plan. The integration of the core public sector reforms into one program and centralizing prototype development at federal level significantly reduced duplication of efforts by different sub-programs and different tiers of government. Similarly, the use of in-house training of trainers, the learning by doing approach instead of fully depending on external consultants has also made significant savings and strengthened local institutional capacity and ownership in a sustainable and efficient manner In civil service, a comprehensive business process review that looked into the strategy of institutions, staffing, structures, and style of management replaced the limited quick wins approach and covered a lot more offices than was originally anticipated. In decentralization, the good governance package attempted to streamline all principles of good governance (accountability, transparency, efficiency, effectiveness, rule of law, participation and consensus building etc) rather than addressing only participation of citizens. It also helped to institutionalize the Kebeles (village) level administration in service delivery and decision making process. In doing this, decentralization has helped to provide services to the population in an efficient way. The urban component managed to more than double the target of masters’ level urban graduates from a planned target of 1000 to 2621 of which 2102 (80.2%) came from regions. Expenditure management and control introduced program budgeting, fixed asset management systems, etc. in addition to rolling out the reforms initiated earlier. The Tax system reform initiated biometric system to organize tax payers’ information and interfaced it with the existing tax identification number. Justice supported new initiatives like asset registration and disclosure and reforms in legal education. Furthermore, based on the previous IFR, the operational cost for the project is 9.04% of the disbursed amount. The project is targeted to meet its PDO: The project has substantially achieved the outputs and outcomes necessary for meeting the development objectives by the end of the project. It has led to, inter alia, considerable improvement in government capabilities to: (i) raise and manage public resources more effectively, (ii) deliver improved public services, and (iii) become more inclusive, transparent and accountable. The capacity to raise and manage public funds more effectively has improved. The adequacy and predictability of financing is being as sured by the increase in revenue collection and improvements made in budget planning, execution and reporting systems. Tax collection has increased nominally from 12.4 in 2005 to 70.7 billion Ethiopian Birr in 2011/12 which is double in real terms. The tax to GDP ratio has improved from 11.6% in 2005 to 12.4% in 2012. The low GDP ratio is largely explained by a lightly-taxed agricultural sector that account for a big chunk of the GDP and significant number of Large State-Owned Enterprises (SOEs) that heavily contribute to public investment but are also not heavily taxed. Some estimates indicate that revenue relative to non-agricultural GDP could be close to 20 percent. The Public Expenditure and Financial Accountability (PEFA) assessments conducted in 2007 and 2010 showed improvement in 50% of the 28 indicators. The Woreda and City Benchmarking Supply Side Survey also confirmed that the percentage of local jurisdictions that has shown efficiency and comprehensiveness of accounting and auditing procedures increased from 30% in 2005 to 85% in 2011 survey. In addition, budget proclamations and expenditure reports also show narrowing in regional and local fiscal gaps through increased unconditional transfers and own revenues. Furthermore, the variation between budgeted and actual expenditures has been reduced from 14% to 4% between 2005 and 2012. Government's capacity to deliver efficient, responsive and transparent service to citizens has improved: This is mainly due to the rapid implementation of district level decentralization and other reforms that addressed outdated legal and policy frameworks, unwieldy structures, cumbersome work processes and systems as well as shortage of important skills in the public sector. The scaling up of district level decentralization from four regions to all regions has improved access to and responsiveness of the public services by bringing them closer to citizens. The decentralization is supported by enabling legal framework (Constitutions, Proclamations) and restructuring of lower administrative units. According to the Public Disclosure Copy 2010/11 Woreda (District) and City Benchmarking Survey, 88% of the local jurisdictions are providing basic services compared to only 25% in 2005. Similarly, the business process re-engineering has simplified cumbersome work processes, set service delivery standards, created one-stop shops for related services, introduced open work place designs and established complaint handling mechanisms in 145 federal, 404 regional and over 19,600 district offices. The organizational and individual performance appraisal system known as the Balanced Score Card (BSC) is being introduced in more and more number of institutions at different administrative levels. Processing time for tax collection decreased on the average from over 4 hours to average of 15 minutes, opening files in courts from one day to 24 minutes and clearance rate for courts nationwide increased from 60% to 98% during the project years. Congestion rate improved from more than 1:3.6 in 2005 to 1:1.5 in 2012. Improved citizen’s satisfaction with services: The Woreda and City Benchmarking Survey confirmed satisfaction of citizens with basic services. For example, citizens using government health facilities have increased from 50% in 2008 to 84% in 2011 in urban areas and from 77% to 94% in rural areas, respectively. Overall satisfaction with health services increased from 62% to 70% while households satisfied with waiting times, attitudes of the medical staff, and availability of drugs increased from 66%, 66%, 53% in 2008 to 81%, 74% and 54% in 2011 respectively. II) The overall satisfaction with primary education services increased from 84% to 94%, with solid waste management from 70% to 74%, Page 2 of 20 The World Bank Report No: ISR8854 and with agricultural extension services from 90% to 94% over the same period. The only sector where satisfaction has not improved is water supply, where satisfaction was dropped from 61% in 2008 to 58% in 2011. However, there has been a 16% fall (from 26% to 10%) in the proportion of the population reliant on unprotected water sources over the past three years. Public Disclosure Copy Increased public participation and engagement: Reforms supported by the project promoted participation of citizens in the preparation and monitoring of plans. Various participatory structures have been established including Councils, development committees, public meetings, and social shengos /mediators. These are complemented by operationalizing manuals on public participation, integrated development plan, local development plan, capital investment plan etc. Membership of Kebele/Village Councils has been increased to 300 to ensure wider representation in the grassroots assemblies in most regions and 70-80 in pastoral regions. Over 16,663 Keble level government/CSO inspection committees consisting of seven to nine members have been formed to ensure citizens’ participation and accountability of executives through formally established voluntary bi-annual public meetings. Transparency and accountability has been enhanced through establishment of information or complaint handling officers at federal, regional and woreda offices as well as recruitment of over 15,415 Kebele Managers. More and more people have begun to demand their rights although this is still at its infancy. This is complemented by increasingly opening up Woreda Council meetings to the public, posting budgets, use of service delivery formats and information technologies such as toll-free call centers (used by over 1000 users daily), portals, and websites. This was also confirmed by the Woreda and City Benchmarking Survey by increased number of respondents who know public service information. Based on the Woreda and City Benchmarking Survey, citizens who know what taxes and fees they are legally required to pay increased from 60% in 2008 to 81% in 2011. Those who know their woreda budget and strategic plan increased from 13% and 17% in 2008 to 20% and 19% in 2011 respectively. Citizens who know council meetings are open to the public increased from 11% in 2008 to 32% in 2011 while those who are personally consulted on development issues increased from 17% to 20% over the same period. Other achievements: Ethiopia’s ranking for on-line service improved from 126 to 80 and for e-participation from 170 to 19 from a total of 174 countries on the UN E-Government Index done between 2005 and 2011 following the expansion of both infrastructure and applications that enhance service delivery and transparency. Skills were strengthened through on the job training, study tours and short and long-term distance training at Diploma, BA, MA, and PhD level. Some examples include the 2621 urban management graduates at Masters’ level and 2 at PhD level, over a 565 at MA and BA in taxation and customs, as well as over 10,600 graduates MA, BA and diploma level in a range of subjects including leadership, accounting, public administration, law etc. The long term training has significantly increased the number of qualified civil servants and leaders at sub-national level. A huge number of short term training courses and sensitization workshops have also been delivered by each sub-program on new laws, directives, working systems and reforms as well as to citizens and taxpayers. For instance, the CSRP delivered training to over 736,207; the DLDP to over 7,743,404 ; (over in 2 million in Oromiya region alone); the JSRP to over 159,297; the UMCBP to over 216,246; the ICT to over 140,456; the TSRP to over 307,082 (excluding tax payer education using different media) and the EMCP to over 45,505. In an assessment made on training aspects of PSCAP, 87% of the responses were positive and speak well of the usefulness of the training courses they had taken. With regard to the urban sub- program, currently about 700 cities have their own active master plans prepared by regions. This is a tremendous achievement compared to the 120 cities that used to have master plan in the country when the only institute was the National Urban Planning Institute in its 10 years of life. This is a result of establishing and capacitating the regional planning institute. Similarly many cities have prepared land grading and benchmark pricing to implement the lease policy. Notwithstanding the above achievements, the public sector is still not strong in attracting, motivating and retaining sound professionals. It is noted that a number of human resources management and development initiatives such as the development of job evaluation and grading, the introduction of balanced score card performance management system, the development of a human resources management information system, and development of a code of conduct for the civil service are underway in the last two years. These are all e Public Disclosure Copy ncouraging signs. However, it remains to be seen whether these initiatives will result in greater motivation and productivity. Similarly, although civil service salaries increased on average by 15% in 2005, 23% in 2008, and 38% in 2011, these adjustments in pay have only partially compensated public servants for the loss of purchasing power. On the other hand, the proportion of citizens reporting paying extra money to get public service increased from 4.3% in 2005 to 6.5% in 2011, (according to the Woreda and City Benchmarking Survey), which suggests an increase in petty corruption. However, in the absence of the reform program, it is probable that petty corruption would have been much higher. Finally, the capacity of communities and the established institutional focal points for participation have to be strengthened continuously for effective and meaningful engagement in matters affecting their lives. **Note on the Woreda and City Benchmarking Survey: The public Sector Capacity Building Program Support Project finances six core sub-programs that are directly linked to the outcomes. One or more sub-programs may contribute for each of the outcomes. One of the binding agreements in the project is to initiate woreda/district and city level benchmarking as one of the main monitoring tools. The Woreda and City Benchmarking Survey helped in creating the baselines and to measure progress over the years. The first survey was conducted in 2005/6 in limited number of local governments and covered the supply side survey only. Starting the second survey conducted in 2008, it incorporated the Page 3 of 20 The World Bank Report No: ISR8854 demand side survey. Supply Side Survey: The supply-side survey collects and analyzes the data from officials in local jurisdictions on aspects like financial autonomy, institutional capacity and coordination, service delivery, practice of participation,and openness of the local government affairs to citizens. Demand Side Survey: The demand side survey collects and analyzes the views, opinions and perceptions of citizens with regard to service delivery, openness of the local governments including access to government information, participation and accountability. The demand side survey uses three tools (citizens’ Report Card using household survey), Focus Group Discussion with citizens representatives and Public Disclosure Copy Key Informant Interviews with civil society organizations). Coverage of the survey: The first round of the Woreda and City Benchmarking was carried out in 2005/6 and established a baseline in a limited number of jurisdictions (10%). In the subsequent three rounds the sample size increased to 38%, 50%, and 33% respectively including the initial (10%) jurisdiction which are used for time series comparison. In addition the demand side of the survey covers more than 11,000 households in every round. The survey result indicates a confidence interval of +/- 3 % at 95% confidence interval. Locations Country First Administrative Division Location Planned Actual Ethiopia Not Entered Federal Democratic Republic of Ethiopia Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 1.1) Reduced budget variance Percentage Value 14.00 4.00 10.00 Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments Reduced budget variance The variation between contributes to increased budgeted and actual predictability and adequacy of expenditure has narrowed financial resources flows. down and target is met 1.2) Reduced fed-regional and regional-local Text Value 1.2a) Federal- regional 1.2a) The proclaimed federal- 1.2a) The target federal- fiscal gaps transfer indicated in budget regional transfer for 12/13 is regional transfer for 12/13 is proclamation is 6.4 billion birr 36.6 billion birr which is 97% 37.6 billion birr (MEFF 11/12) in 2004/05. of the target (37.6 billion birr) on the(11/12 MEFF). 1.2b) Annual average increment of own revenue by Similarly, regional to woreda Similarly, regional to woreda 20%. transfer from treasury source transfer from treasury source Public Disclosure Copy is 4.8 billion birr in 2005/06 is 17.6 billion birr in 2011/12 with an annual average increment of 24%. 1.2b) Regional own revenue is 3.6 billion birr in 2004/05 1.2b) Regional own revenue is 20.1 billion birr in 2011/12 with an annual average AdditionalNote: increment of 26%. Ethiopia’s scoring for predictability of funds for Additional Note: Page 4 of 20 The World Bank Report No: ISR8854 commitment of expenditure is Ethiopia’s scoring for “D� (PEFA 2007) predictability of funds for commitment of expenditure improved to “B� (PEFA Public Disclosure Copy Assessment 2010) and Ethiopia’s has also improved in 50% of the PEFA indicators overall in the 2010 assessment. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments the target for 1.2a is met by 97% and 1.2b is met by 120% 2.1) Participatory budgeting and public Text Value 2.1) No formal participatory 2.1) Voluntary bi-annual 2.1) Participation of citizens is reporting on budgets budgeting and reporting in public meeting on preparation to be an established practice. place in 2004/05. and monitoring of plan has become an established practice. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 2.1) Target is met. 2.2) Involvement of civil society in planning and Text Value 2.2) No formal involvement of 2.2) Civil society involvement 2.2) Participation of civil review processes civil society in planning and in plan preparation and society organizations is to be review process monitoring has become an an established practice. established practice through their membership in Kebele Additional Note: level and inspection Team. At federal level, there was no forum for consultation In addition, the Kebele between government and civil Council membership society organizations. expanded to 300 to ensure wider representation in the grassroots assemblies. Moreover civil societies are made to participate in Council Public Disclosure Copy meeting which provides a space for reviewing plans. Communities are also managing community policing, small infrastructures, community tele-centers etc. Additional Note: At federal level, the Ministry of Page 5 of 20 The World Bank Report No: ISR8854 Civil Service established periodic consultations with civil society and private sector representatives on reforms Public Disclosure Copy and service delivery. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 2.2) Target is met. 3.1) Increased own revenues and unconditional Percentage Value 91.00 100.00 100.00 transfers as a share of total expenditures Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 3.1) 91% of regional 3.1) The regional expenditure expenditure is covered by is covered by own revenue own revenues and and unconditional transfer. unconditional transfer. The target is met. 3.2) Increased tax effort Percentage Value 93.00 101.00 100.00 Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 3.2) Nationwide tax collection 3.2) Nationwide tax collection 3.2) The target is met. target for 2004/05 was 13.4 target for 2011/12 was 70 billion birr and the actual tax billion birr and the actual is collection was 12.4 billion birr 70.7 which is 101% of the which is 93% of the target target 4.1) Average civil service salary Text Value 4.1) Weighted average civil 4.1) Weighted average civil 4.1) Reduced gap between service salary is 94% of the service salary is 82% of the living wage and average civil living wage in 2004/05 living wage in 2011/12. service salary. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments The relevance of this indicator is questionable because there was no activity that is related to it in the civil service reform sub-program 5-year action plan. 4.2) Private-public wage comparison Text Value 4.2) The public- average 4.2) The public- average 4.2) Reduced the gap Public Disclosure Copy private wage comparison for private wage comparison for between public and private instance, for an Executive instance, for an Executive wage. Secretary is 1:1.81 in 2004/5 Secretary is 1 :1.82 in 2011/12 Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments The relevance of this indicator is questionable because there was no activity that is related to it in the civil service reform Page 6 of 20 The World Bank Report No: ISR8854 sub-program 5-year action plan. 4.3) Wage decompression ratios Text Value 4.3) Using the civil service 4.3) Using the civil service 4.3) Improved salary scale for base salary, wage base salary, wage skilled professionals. Public Disclosure Copy decompression ratio is 1:9.8 decompression ratio is 1:32.6 in 2004/5. in 2011/12 which shows salary scale for skilled professionals has improved relative to the non-skilled. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments The ratio shows salary scale The relevance of this indicator for skilled professionals has is questionable because there improved relative to the non- was no activity that is related skilled. to it in the civil service reform sub-program 5-year action plan. 5.1) Improved access, responsiveness and Percentage Value 25.00 88.00 85.00 cost efficiency in priority sectors Date 23-Nov-2005 15-Nov-2012 31-Dec-2012 Comments 5.1) 25% of the local 5.1) 88% of the local 5.1) The target is met. jurisdictions surveyed in 2005 jurisdictions surveyed in 2011 independent Woreda/District independent Woreda/District and City Benchmarking and City Benchmarking Survey are providing basic Survey are providing basic services. (Health, education, services. (Health, education, agriculture, water supply). agriculture, water supply). 5.2) Reduced unit costs and processing time in Text Value 5.2.a) In 2004/05 5.2.a) In 2010/11 5.2.a) priority sectors -Unit recurrent cost per -unit recurrent cost per person -Reduced unit cost person for primary health is for primary health is 7.9 birr 2.8 birr and quality indicators and quality indicators like like health officers, nurses & health officers, nurses and 5.2.b) health extension workers to health extension workers to population ratios are population ratios are -Average processing time for Public Disclosure Copy (1:100,763), (1:4,037) and (1:22,387), (1:2772) (1:5426) tax collection will require 51 (1:7277) respectively; respectively; minutes -Unit recurrent cost for -Unit recurrent cost for -Opening files in courts primary education per primary education per requires 41 minutes on enrolled student is 62.6 birr enrolled student is 111.6 birr average. and teacher-primary school and teacher-primary school student ratio is 1:66 and student ratio has improved to -Average clearance rate for primary student-text book 1.51 and primary student-text courts nationwide will be 80%. ratios is 2:1; book ratios has improved Page 7 of 20 The World Bank Report No: ISR8854 1.25:1 -Salary expenses to service one ha. cultivable land is 289 -Salary expenses to service birr one ha. cultivable land is 233 Public Disclosure Copy birr -Salary cost /m3 solid waste disposed of (cities only) is 273 -Salary cost /m3 solid birr. wastedisposed of (cities only) is 271 birr. - Federal tax collection cost for each 100 birr was 0.80 -Federal tax collection cost for cents each 100 birr was 0.61 cents. (Note we are doing federal only because regional tax - Federal level cost for each offices were functioning under resolved court case is 534 the Regional Finance & birr. Economic Development bureaus until 2009). 5.2.b) In 2011/12 - Federal level cost for each -Average processing time for resolved court case is 726 tax collection requires 15 birr. minutes -Opening files in courts 5.2.b) In 2004/05 requires 24 minutes on average. -Processing time for tax -Average clearance rate for collection requires 4 hours courts nationwide is 96.2% and 35 minutes -Opening files in courts - Congestion rate for courts is requires a minimum of one 1:1.5 day. -Clearance rate for courts nationwide is 60% -Congestion rate for courts is Public Disclosure Copy 1:3.6 Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 6.1) Reduced corruption and arbitrariness in Text Value 6.1) 4.3% of respondents in 6.1) 6.5% of respondents in 6.1) Reduction in incidence of rule enforcement the Woreda and City the Woreda and City corruption. Benchmarking Survey Benchmarking Survey reported paying extra money reported paying extra money to get public service. to get public service. Date 23-Nov-2008 15-Nov-2012 31-Dec-2012 Page 8 of 20 The World Bank Report No: ISR8854 Comments In the absence of the reform program, it is probable that petty corruption would have been much higher. Public Disclosure Copy 6.2) Increased access to justice Text Value 6.2) Number of courts were 6.2) Number of courts 6.2) Increased access to 850, kebele social courts/ increased to over 942, justice. shengos were weakened to additional 15,452 social extinction, mobile benches courts/ shengos were re- existed for federal supreme established /revamped, court and there was no VC mobile benchesintroduced in assisted court proceedings. 4 regions with remote districts, VC-assisted court proceedings initiated in 7 regions and federal level and over 36,012 court cases were heard using the VC facility since it is initiated in 2009. Date 23-Nov-2005 15-Nov-2012 31-Dec-2012 Comments 6.2) Target is met. 6.3) Independence of courts Text Value 6.3) Independence of judiciary 6.3) Improvements were 6.3) Enhanced independence is adequately recognized in made in independence of the of the judiciary the Ethiopian Constitution and Judiciary. The Judicial the various laws. In practice, Administration Commission is the understanding of, and now independently organized respect for, the principles of and the board has been made judicial independence both by to include lawyers, legal all judges and by executives education, and prominent needed improvement. citizen figures to make it more transparent. Judge nomination has become fully merit-based. The legal education was reformed to include exit exams, Public Disclosure Copy mandatory on the job training before joining the workforce and curriculum revision is conducted to 16 courses which were found to be sub- standard. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments Page 9 of 20 The World Bank Report No: ISR8854 6.4) Freedom of information Text Value 6.4.a) There is no 6.4a) Right to information 6.4a) Information act to be proclamation on right to proclamation is enacted and issued and institutional focal information and no the office of ombudsman is points for information to be institutional focal point for designated as implementer of established. Public Disclosure Copy information. the Act. Information officers are in place in all offices. Additional Note: Similarly, Kebele Mangers are -According to the 2008 recruited in all village level woreda and city Kebeles, information and benchmarking survey, citizens service delivery templates who know what taxes and have also been issued. fees they are legally required to pay are 60%, those who Additional Note: know woreda budget are -According to the 2011 13%, those who know their woreda and city woreda strategic plan are benchmarking survey, citizens 17% and those who know who know what taxes and council meetings are open to fees they are legally required the public are 11%. to pay are 81%, those who know woreda budget are -Ethiopia’s E-participation 19%, those who know ranking in the UN Index is 170 theirworeda strategic plan are out of 174 countries in 19% and those who know 2004/05. council meetings are open to the public are 32%. -Ethiopia’s E-participation ranking in the UN Index is 19 out of 174 countries in 2011/12. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments Target is met. Intermediate Results Indicators Public Disclosure Copy Page 10 of 20 The World Bank Report No: ISR8854 Indicator Name Core Unit of Measure Baseline Current End Target Legal and regulatory framework established Text Value 1.1) Studies that will lead to 1.1) At federal level, the 1.1) Laws to be enacted and new laws are being following laws are enacted: strategies to be adopted at Public Disclosure Copy conducted by Civil Service CSRP: civil service federal level. Reform Sub-program (CSRP), proclamation; the business District Level Decentralization process re-engineering (DLDP), Urban Management guidelines; HRD policy & Capacity Building Sub- strategy; Service delivery program (UMCBP), Justice policy; financial proclamations System Reform Sub-program and directives, procurement (JSRP), Tax System Reform and property administration (TSRP) and Information and proclamation, the cash Communication Technology management directives etc. (ICT). DLDP: local government policy (legal) framework; good governance package; modelfiscal transfer formula; UMCBP: city/municipal proclamation; land lease regulations; national urban development policy; property registration, Housing Development Strategy, waste management and beautification strategy; national urban training strategy; and urbangood governance package; JSRP: laws to define legislative procedures for the legislative organs, family law, criminal law, vital events registration, asset registration Public Disclosure Copy and disclosure act; a large number of accountability laws that determine the powers and responsibilities of the three branches of government. TSRP: income tax; turnover tax; excise tax; VAT; customs duty; stamp duty proclamation; manual and directive on post clearance audit; ICT: national ICT policy, e-Government strategy, ICT human resource development strategy, ICT community development Page 11 of 20 strategy, national network The World Bank Report No: ISR8854 1.2) No. of regions adopting enabling Number Value 4.00 11.00 11.00 legislation for local authorities Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 1.2) Municipal enabling All regions adopted municipal 1.2) Municipal Legislation Public Disclosure Copy legislation adopted in only 4 proclamation and urban enacted and urban regions. development policy and development policy and strategy. strategy implemented in all regions. The target is met. 1.3) No. of regions adopting various tax Number Value 0.00 11.00 11.00 proclamations (income, excise, TOT) Date 23-Nov-2004 15-Nov-2012 30-Nov-2012 Comments 1.3) income, turnover tax, 1.3) In addition to the targeted 1.3) The target is met. VAT and withholding tax laws proclamations, a large No. of passed at federal level and tax laws were issued by only 4 big regions. regional governments such as agricultural income and land use fee, customs duty, stamp duty proclamation, chat tax, livestock, presumptive tax regulation, municipality tax lawsand service charge laws, etc 2.1) Percentage of ministries, bureaus and Percentage Value 3.00 100.00 75.00 agencies (MABs) (at federal and in each Date 31-Dec-2012 region) initiating restructuring and Comments 2.1) Performance and service 2.1) The Business process re- 2.1) The target is met. performanceimprovement delivery program (PSIP) engineering (BPR), a more modality has been adopted by comprehensive performance 11 Ministries, Agencies and improvement system than the Bureaus (MABs) PSIP, is implemented in145 federal and 404 regional level ministries, bureaus and agencies (MABs). 2.2) Percentage of woredas and municipalities Percentage Value 0.00 98.00 75.00 undergoing restructuring Public Disclosure Copy Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 2.2) The BPR is implemented 2.2) The target is met. in 19, 635 offices at 693 rural woreda level. 2.3) Percentage of courts at each level Percentage Value 1.00 100.00 75.00 initiating performance improvement Date 23-Nov-2004 30-Nov-2012 Comments 2.3) Federal Supreme Court, 2.3) The court reform program 2.3) The target is met. few federal courts and two is rolled out to the three levels regional supreme courts of courts at federal, regional initiated court reform. and woreda courts. Page 12 of 20 The World Bank Report No: ISR8854 Additional Note: Additional Note In 2005, average clearance Average clearance rate rate is 60% and congestion improved to 98% in 2011/12 Public Disclosure Copy rate is more than 1:3.6 and congestion rate improved nationally. to 1:1.5 in 2012. 2.4) No. of regions adopting sector-specific Text Value 2.4) Data centers existed in 2.4) Data centers are 2.4) Data centers to be automated IT solutions 560 locations at all level for expanded to 735 locations. expanded to all levels of document exchange and government. messaging. Additional Note: Additional Note: -CCMS is expanded to 466 - Court Case Management courts system (CCMS) was used in - biometric taxpayer 25 courts, information registration is - there is no biometric system introduced at all levels for taxpayer information -The SIGTAS has now been registration rolled out to 8 regions (4 big -SIGTAS was operational at regions, Addis Ababa, Dire federal level only in 2005. Dawa,Harari and Afar) for all - No on-line applications are taxes except presumptive tax. developed and Ethiopia’s -on-line and mobile services ranking for on-line service is are introduced in selected 126 and for e-participation sectors. Ethiopia’sranking for 170 from a total of 174 on-line service improved to 80 countries on the UN E- and for e-participation to 19 Government Index done in from a total of 174 countries 2004/05. on the UN E-Government Indexdone in 2011. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 2.4) The target is met. 3.1) Percentage of budgetary institutions at Percentage Value 23.00 100.00 100.00 each level implementing medium term and Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 strategic planning Public Disclosure Copy Comments 3.1) Medium term and 3.1) Medium term and 3.1) Target is met. strategic plan is used at strategic plan is used at all federal level budgetary levels of government, which institutions. made up the Growth and Transformation Plan (GTP). 3.2) No. of regions adopting new budget Number Value 8.00 11.00 11.00 structure at all levels Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 3.2) New budget structure 3.2) All regions are using the 3.2) The target is met. new budget structure and Another program led by Page 13 of 20 The World Bank Report No: ISR8854 and new chart of account chart of accounts. USAID has also supported introduced in 8 regions. the activity excluding the Additional Note: program budgeting. The program budgeting is Public Disclosure Copy introduced at federal level. 3.3) No. of regions adopting of double entry, Number Value 5.00 11.00 11.00 modified cash systems at all levels Date 23-Nov-2004 15-Nov-2012 Comments 3.3) Double entry modified 3.3) All regions adopted the 3.3) The target is met. cash systems in all federal double entry modified cash Another program led by budgetary institutions and the system. USAID has also supported 5 regions. the activity. 3.4) Percentage of budgetary institutions each Percentage Value 23.00 100.00 100.00 level adopting cash management directives Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 3.4) Cash management 3.4) All regions adopted the 3.4) The target is met. directive adopted at federal cash management directive. level budgetary institutions only. 3.5) Percentage of budgetary institutions at Percentage Value 56.00 100.00 100.00 each level rolling out automated financial Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 systems Comments 3.5) Budget Information 3.5) BIS and BDA are 3.5) Target is met. System (BIS) and Budget, adopted at all levels. Another program led by Disbursement and Accounts USAID has also supported (BDA) in federal budgetary Additional Note: the activity. PSCAP supported institutions and 4 regions. An upgraded Integrated the system until 2009. budget and expenditure system (IBEX) is adopted in over 90% of budgetary institutions at federal and regional level. Government has also initiated IFMIS using own funding. 3.6) Procurement legislation adopted and Text Value 3.6) Outdated procurement 3.6) The revised procurement 3.6) Procurement legislation Public Disclosure Copy directives issued act and directive. legislation and directive are and directive to be enacted. enacted and adopted at all levels. Additional Note: The property management Directive, stock management and fixed asset manuals are also introduced. Page 14 of 20 The World Bank Report No: ISR8854 Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments The target is met. 3.7) Accounts and audits backlog reduced at Text Value 3.7) 2 years accounts backlog 3.7) No accounts backlog at 3.7) No accounts and audit Public Disclosure Copy federal, regional levels at national level federal and regional level backlog - 4 years audit backlog at except in Gambella which has federal level and more than 4 2 years accounts backlog years backlog at regional compared to 4/5 years level. backlog. Similarly, there are no audit backlog except in Gambella which has 4 year backlog compared to over 8 years. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 3.7) Target is substantially met. Another program led by USAID and protection of basic services (PBS) have also supported the activity. 3.8) Percentage of budgetary institutions Percentage Value 23.00 100.00 100.00 preparing standardized internal audit reports Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 3.8) preparation of internal 3.8) All offices across the 3.8) Target is substantially audit report was limited to nation prepare internal audit met. federal level. reports. Additional Note: audit organizational structure implemented andthe new internal audit manual introduced at all level. Personnel management systems reformed and Text Value 4.1) No medium-term policy 1) The medium-term 4.1) Medium-term rolled out developed. remuneration policy is not yet remuneration policy to be developed. developed. Public Disclosure Copy Additional Note: New job evaluation is designed and being tested. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 4.1) target is not met. Although the development of medium-term remuneration policy is included as one of the output indicators, there Page 15 of 20 The World Bank Report No: ISR8854 was no activity related to it in the civil service reform program 5-year action plan. 4.2) Results-Oriented Performance Appraisal Text Value 4.2) ROPA study completed 4.2) The upgraded 4.2) ROPAS to be Public Disclosure Copy (ROPA) rolled out at all levels HR guidelines in and piloted in selected offices. performance management implemented in 20 Ministries. woredas and municipalities developed, adopted system, namely, the Balanced Score Card which integrates organizational and individual performance is introduced in 145 federal and 270 regional offices. Individual performance agreements system has been pilot tested and was rolled out in July 2012. Date 15-Nov-2012 31-Dec-2012 Comments Target is met. 4.3) Percentage of budgetary institutions at Percentage Value 0.00 55.00 100.00 each level implementing IT based HRM Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 systems Comments 4.3) No budgetary institutions 4.3) Six regions attempted to The Target is not fully met. implemented IT-based HRM develop IT-based personnel systems. management system including Addis Ababa, SNNPR, Amhara, Somali, Tigray, Benshanagul and Afar. Moreover, the nation- wide integrated civil service management information system is now under development. 4.4) HR guidelines in woredas and Text Value 4.4) Federal and most 4.4) The federal civil service 4.4) HR guidelines are municipalities developed, adopted regional Civil Service proclamation was revised in developed at all level. The Proclamations developed 2007 and six regional target is met. Public Disclosure Copy governments revised their laws in response. Following to this, subsidiary HRM guidelines were developed and are in use at all levels Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments Page 16 of 20 The World Bank Report No: ISR8854 5.1) No. of regions adopting fiscal Percentage Value 4.00 11.00 11.00 decentralization strategy including capital Date 23-Nov-2004 19-Jun-2012 30-Nov-2012 funding mechanisms Comments 5.1) The federal government 5.1) The federal government 5.1) The target is met. Public Disclosure Copy and the 4 big regions have and all regions except Harari fiscal transfer formula. have fiscal transfer formula to provide predictable and transparent fiscal transfers to lower level government. 5.2) No. of regions implementing TIN Number Value 11.00 11.00 11.00 Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 5.2) TIN implemented in 11 5.2) The computerized tax 5.2) Target is met. regions and the total number identification number (TIN) is of taxpayers issued with TIN now implemented in all were 15,555 but there is no regions. Currently, 2,021,087 biometric-based TIN system. million taxpayers were issued TIN certificates. TIN is complemented with the biometric technologies and total of 1.98 million tax payer information has been collected nation-wide using the biometric system. 5.3) Guidelines developed and implemented for Text Value 5.3) Presumptive taxation 5.3) Presumptive taxation 5.3) Presumptive taxation implementing withholding taxes, assessing guideline developed and is guidelines for implementing guideline to be adopted by all presumptive tax bases operational at federal level. withholding taxes and regions. assessing presumptive tax bases were adopted by all regions. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 5.3) Target is met. 5.4) Strengthening and performance Text Value 5.4) Tax system reform 5.4) The tax system reform 5.4) Tax system reform to be improvement of FIRA and Customs action plan prepared. program implemented at all implemented in all regions. Public Disclosure Copy levels of government. The three revenue bodies were merged into one and the capacity to collect revenue has been strengthened. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 5.4) Target is met. Page 17 of 20 The World Bank Report No: ISR8854 Vertical accountability mechanisms (service Text Value 6.1) No service standards 6.1) Service standards were 6.1) Service standards to be standards) established developed. developed in service outlets established at all levels. and offices at federal, regional, woreda and kebele Public Disclosure Copy levels as part of the BPR which was implemented in over 20,000 offices. The above efforts are being formalized or made contractual in nature through theintroduction of the Citizens Charter which is now published in more and more offices. This year 14 federal ministries and all offices in Amhara completed their citizens’ charters. In addition, in urban areas, different types of standards such as urban cadastralstandard, real estate property regulation, data base standard, network standard etc were developed. Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments Target is met. 7.1) No. of regions implementing guidelines for Number Value 0.00 11.00 11.00 citizen participation at the woreda and Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 municipal levels Comments 7.1) Government white paper 7.1) All regions have The target is met. on woreda participation is implemented the guidelines under development. for citizens’ participation at woreda, municipal and kebele levels through the adoption of the rural and urban good Public Disclosure Copy governance package (GGP). 7.2) Percentage of courts at each level Percentage Value 1.00 100.00 75.00 undergoing performance improvement Date 23-Nov-2004 15-Nov-2012 31-Dec-2012 Comments 7.2) Please see 2.3 of 7.2) Please see 2.3 of the 7.2) Target is met. Intermediate Results Intermediate Results Indicators. They are exactly Indicators. They are exactly the same. the same. Page 18 of 20 The World Bank Report No: ISR8854 7.3) Enhanced independence and efficiency of Text Value 7.3) Please see the 6.3 of the 7.3) Please see the 6.3 of the 7.3) Enhanced independence judiciary PDO indicators. They are PDO indicators. They are of the judiciary. exactly the same. exactly the same. Public Disclosure Copy Date 23-Nov-2004 15-Nov-2012 30-Nov-2012 Comments 7.4) Judges and lawyers trained Text Value 7.4) Judges in Federal courts 7.4) A total of 30,700 judges 7.4) All judges are to be and 2 Regional Supreme and court supporting trained. Courts took training as part of personnel were trained of Canadian supported court which over 4800 are judges. reform program. Date 23-Nov-2004 15-Nov-2012 29-Dec-2012 Comments 7.4) Target is met. Data on Financial Performance (as of 05-Dec-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P074020 IDA-38990 Effective 11-May-2004 23-Aug-2004 22-Nov-2004 07-Jul-2009 31-Dec-2012 P074020 IDA-46690 Effective 23-Mar-2010 30-Apr-2010 14-Jul-2010 31-Dec-2012 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P074020 IDA-38990 Effective XDR 66.90 54.17 12.73 53.85 0.32 99.00 P074020 IDA-46690 Effective XDR 31.50 31.50 0.00 28.34 3.16 90.00 Disbursement Graph Public Disclosure Copy Page 19 of 20 The World Bank Report No: ISR8854 Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History Level two Approved on 06-Mar-2012 Related Projects P107217-Additional Finanicing to the Public Sector Capacity Building Program Support Project Public Disclosure Copy Page 20 of 20