The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) Public Sector Modernisation Project (P152398) AFRICA | Lesotho | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 7 | ARCHIVED on 31-May-2019 | ISR37295 | Implementing Agencies: Ministry of Finance, Ministry of Development Planning, Ministry of Public Service Key Dates Key Project Dates Bank Approval Date: 24-Mar-2016 Effectiveness Date: 25-May-2016 Planned Mid Term Review Date: 30-Jun-2018 Actual Mid-Term Review Date: 04-Jun-2018 Original Closing Date: 24-May-2020 Revised Closing Date: 24-May-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen strategic-level planning, and to improve efficiency in the fiscal and human resource management of Selected Ministries. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Strategic Planning and Fiscal Management:(Cost $2.00 M) Component 2. Strengthening Human Resource Management:(Cost $4.50 M) Component 3. Improving Statistical Capacity:(Cost $2.00 M) Component 4. Strategic Implementation Support:(Cost $1.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The Public Sector Modernisation Project (PSMP) was approved by the Board of the World Bank on March 24, 2016 and the Financing Agreement between the Ministry of Finance (MOF) and the International Development Association was signed on April 15, 2016. The project became effective on May 25, 2016. It aims to strengthen strategic-level planning and to improve efficiency in the fiscal and human resource management of selected ministries. Direct beneficiaries of this multi-sectoral operation are the Prime Minister’s Office (PMO), Ministries of Public Service, Finance, Development Planning, Health, and Education, and the Bureau of Statistics (BOS), all essential to enhance the service delivery in Lesotho. 5/31/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) During the reporting period, the World Bank team has provided continuous implementation support and conducted the Mid-term review (MTR) of the project on June 4-9, 2018. A supervision mission was completed on May 17, 2019. Given the progress recorded to date on finalizing critical procurement processes, launching and implementing various project activities, and initial reporting against the results framework, the overall project performance continues to be rated Moderately Satisfactory. This assessment is made against the indicators captured in the prevailing results framework, as well as initial reporting against proposed revisions to the indicators (at Project Development Objective (PDO) and intermediate level), to be captured by the upcoming project restructuring. Although it is still early to assess impact in terms of outcomes, some major milestones have already been achieved or are well underway in support of Government’s fiscal and human resource management (HRM) reforms, and are as follows: Component 1 has provided capacity building support to the MOF in critical areas such as wage bill management, financial planning and macro forecasting. In addition, the pension modeling and an expenditure analysis tool (BOOST) have been developed, and a training program implemented. The NSDP II and supporting documents will be published in May 2019. The other core activities funded under this component are currently under implementation (State-Owned Enterprises, Public Investment Management). Under Component 2, the project has supported a Rapid Results Initiative 1 (RRI) led by the Ministry of Public Service (MPS) to register national ID numbers for public officers and civil pensioners in the HRM database, Resource Link. Building on this, a biometric census was launched on June 28, 2018. Enumeration concluded on November 5, 2018. A ‘mop up’ exercise to collect data from public servants who were absent with authorization, did not present with an NID, who were unable to produce background documents, or whose identity could not be verified during the crossmatch with the NID database was concluded in March 2019. All ministries have the opportunity to comment on the results of the biometric census. The final report outlining key findings is expected in July 2019. Under Component 3, the project has provided support to the BOS to develop Quarterly Gross Domestic Product (GDP) estimates that are going to contribute to improving fiscal planning. Similarly, a new round of the Lesotho Continuous Multipurpose Household Survey (LCMHS) with improved methodology was complete in February 2018. Data cleaning and validation, as well as the final poverty profile are complete. The final report summarizing key results and including poverty maps is expected in mid to late 2019. Component 4 provides support to project implementation. Technical assistance to support the PMO to pilot an citizen feedback mechanism is underway. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies High Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability High High High Fiduciary Moderate Moderate Moderate Environment and Social Moderate Low Low Stakeholders Substantial Substantial Substantial Other -- -- -- Overall High High High Results PDO Indicators by Objectives / Outcomes 5/31/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) To strengthen strategic-level planning and to improve efficiency in the fiscal and human resource ma IN00708027 ►Credibility of budget framework (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 8.50 8.50 7.50 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 2017/18 Budget vs Expenditure 1. Recurrent Budget: 13,503,150,984 Expenditure: 12,981470,841 Expenditure deviation: 4% Comments: 2. Capital Budget GoL Contribution: 3,433,131,535 Expenditure: 2,504,567,190 Expenditure deviation: 27% IN00708028 ►Consistency of sectoral budget allocations with NSDP forecasts (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 Stakeholders’ comments have been incorporated in the draft NSDP-2 document. However, outstanding activities include development of Medium Term Fiscal Framework and Medium Term Expenditure Framework, M&E framework, costed Public Sector Investment Plan, NSDP implementation Plan and Comments: Financing Strategy. It is proposed to drop this indicator during project restructuring, because it is beyond the scope of NSDP II to propose sectoral budget allocations. IN00708029 ►Irregular HR and payroll records corrected/removed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 20-May-2020 This indicator is on track, with results expected by the end of YR3 of project implementation. Enumeration of civil servants and pensioners is ongoing. A total of 40,888 has been enumerated out of 50,237 and this Comments: composes of 34,875 public officers and 6,013 Civil Pensioners i.e 81% coverage. IN00708030 ►Vacancy rate based on the revised establishment list in MOH and MOET(TSD) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 31.00 0.00 0.00 5.00 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 20-May-2022 The contract for consultancy firm to undertake establishment process and Business re-engineering has been signed by both parties. Propose to amend this indicator during project restructuring to better capture Comments: results under Component 2 which aims to strengthen payroll controls. 5/31/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) Overall Comments PDO Interim ISR will not report against current results framework. After restructuring, the task team will submit a full ISR which reports against the updated results framework. Intermediate Results Indicators by Components Component 1. Strategic Planning and Fiscal Management IN00708031 ►Revised Institutional Plan implemented by MDP (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 This indicator is on track, with results expected by the end of YR3 of project implementation. The draft of the strategic plan is available. It is being reviewed by the Principal Secretary and Minister MODP. Once Comments: approved at this level, it will be submitted to Ministry of Public Service for approval. IN00708035 ►Comprehensive facility budget developed in MOH and MOET (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 In collaboration with the World Bank Health and Education teams, planning for activities under this subcomponent is underway. It is proposed to drop this indicator during project restructuring, as C1.2 will Comments: support expenditure planning and management in MOET and MOH but will not necessarily result in comprehensive facility level budgets. IN00708038 ►Budget execution rate in MOH and MOET is improved at district level (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 75.00 75.00 75.00 95.00 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 In collaboration with the World Bank Health and Education teams, planning for activities under this subcomponent is underway. It is proposed to amend this indicator during project restructuring, as directly Comments: influencing the budget execution rate at district level is beyond the scope of C1.2. Component 2. Strengthening Human Resource Management IN00708032 ►Performance Based Management introduced (Number, Custom) 5/31/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 No Objection to the terms of reference for this activity were provided by the WBG. It is propose to amend Comments: the unit of measure for this indicator to 'text' during project restructuring. IN00708036 ►A training gap report based on the revised qualification in selected ministries completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 Consultancy for establishment process and business review is commencing end of November. Once the establishment list and business processes are updated, training needs will be assessed. It is proposed to Comments: amend this indicator during project restructuring to better align with the objective of Component 2 which will focus on training HR officers on the new business procedures. IN00708039 ►Reduction in numbers of temporary teachers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 Consultancy for establishment process and business review is commencing end of November. The firm will develop establishment management policy for the education sector is yet to be developed to guide the process of managing numbers of temporary teachers. It is proposed to amend this indicator during project Comments: restructuring to focus on the objective of Component 2--strengthening HR controls--rather than on recruitment or regularization of staff. Component 3. Improving Statistical Capacity IN00708033 ►Publication of the HBS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The first round of The first round of CMS/HBS is almost at CMS/HBS is almost at a a completion stage. completion stage. Data Data collection came collection came to an end to an end in February in February 2018. With 2018. With regard to Two HBS conducted Value No survey conducted regard to the poverty the poverty analysis, and published analysis, preliminary preliminary tabulation tabulation and analysis is and analysis is complete. Final results complete. Final are expected by the end results are expected of November 2018. by the end of November 2018. Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 5/31/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) The first round of CMS/HBS is almost at a completion stage. Data collection came to an end in February 2018. With regard to the poverty analysis, preliminary tabulation and analysis is complete. Final results Comments: are expected by the end of November 2018. It is proposed to amend the unit of measure during project restructuring. IN00708037 ►Quarterly time series published consistent with SDDS requirements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Quarterly GDP published Quarterly GDP Quarterly GDP No quarterly GDP Value in line with SDDS published in line with published in line with published requirements SDDS requirements SDDS requirements Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 Achieved and on track. The report has been published on the Government website. Comments: Component 4. Strategic Implementation Support IN00708034 ►Service-level standards developed in MOET and MOH with citizen’s feedback (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In collaboration with In collaboration with the the World Bank Health level standards World Bank Health and and Education teams, adopted as Education teams, Value No standards established planning for activities performance planning for activities under this benchmark goal in all under this subcomponent subcomponent is districts is underway. underway. Date 13-Jan-2016 09-Nov-2018 09-Nov-2018 22-May-2020 TOR to design citizen feedback mechanisms have been approved. It is proposed to amend this indicator during project restructuring, as support to this area will strengthen mechanisms for citizen feedback but Comments: not necessarily through service-level standards. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152398 IDA-57720 Effective USD 10.00 10.00 0.00 4.25 5.94 42% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152398 IDA-57720 Effective 24-Mar-2016 15-Apr-2016 25-May-2016 24-May-2020 24-May-2020 Cumulative Disbursements 5/31/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 5/31/2019 Page 7 of 7