The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) LATIN AMERICA AND CARIBBEAN | Panama | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 14 | ARCHIVED on 12-Oct-2018 | ISR34075 | Implementing Agencies: Republic of Panama, Direccion de Administracion de Proyectos, DAP Key Dates Key Project Dates Bank Approval Date: 03-Mar-2011 Effectiveness Date: 07-Mar-2012 Planned Mid Term Review Date: 21-Nov-2014 Actual Mid-Term Review Date: 15-Sep-2014 Original Closing Date: 30-Sep-2016 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist public agencies of the Borrower in producing, using and disseminating timely and quality performance information, thereby allowing a more efficient, transparent and accountable use of the Borrower#s public budget funds. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component/Part 1: Developing capacities for results-based planning, budget management and evaluation:(Cost $2.52 M) Component/Part 2: Managing Public Resource Information Efficiently:(Cost $42.98 M) Component/Part 3: Strengthening public procurement and contracting:(Cost $9.00 M) Component/Part 4: Supporting Project Management Capacities:(Cost $0.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project was recently restructured and extended by 16 months to December 2019. During the supervision mission held from September 17-20, 2018, the team noted progress on component 2 (roll-out of the ISTMO) to 26/36 (72%) decentralized entities. The final target is 100% (36/36) by December 2019. Additionally, the government has decided to extend the implementation of ISTMO to 4 state owned enterprises (SOEs) and 3 financial intermediaries. By September four SOEs and three financial intermediaries have implemented the system. With respect to component 3, the new procurement system is being designed and is anticipated to be operational by May 2019. 10/12/2018 Page 1 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) 10/12/2018 Page 2 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) 10/12/2018 Page 3 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) 10/12/2018 Page 4 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Low Low Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results 10/12/2018 Page 5 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) PDO Indicators by Objectives / Outcomes Efficient, transparent and accountable use of the public budget funds IN00598299 ►Quality of public sector financial information improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The first consolidated Not achieved. The first financial statement for consolidated financial the central government is statements for the expected to be manually central government produced by June (within The government are expected to be Financial reports do not 6 months). It is also prepares through automatically provide complete expected that such ISTMO and publishes produced by June 30, information on financial statements within 6 months after 2019. The MoF is also Value government revenue and would be produced in the end of the fiscal working on expenditures thus even less time in the year consolidated strengthening the impeding the monitoring future, subject to the financial statements of quality and reliability of of budget execution provision of timely the Central financial information revenue information, Government produced at which requires an inter- institutional level by institutional agreement each entity prior to its between MEF, consolidation Contraloria, and the DGI. Date 30-Aug-2013 23-Feb-2018 27-Sep-2018 31-Dec-2019 IN00598371 ►Increased transparency in public procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The PanamaCompra3 contract has been signed and is awaiting final approval by the 60% competitive 100% of competitive Contraloria for Not achieved. procurement processes procurement implementation to start. Implementation of of Central and processes of central The new law for Public PanamaCompra3 has Decentralized and decentralized Value Procurement was been launched in July, Government are publicly entities are publicly approved by Congress 2018 and is expected and daily available available through on August 24, to be completed by through PanamaCompra PanamaCompra 3 on establishing guiding May, 2019. 2 a daily basis. principles for transparency, professionalization, and efficiency. Date 17-Jul-2015 23-Feb-2018 27-Sep-2018 31-Dec-2019 Producing, using and disseminating timely and quality performance information IN00598396 ►Public entities increase the production and dissemination of performance information linked with budget information (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Performance information Not achieved. Information on the is limited, not publicly DIPRENA plans to budget associated with Value -- available and not linked organize a workshop key performance to financial information in November which will indicators for 10 public 10/12/2018 Page 6 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) provide training to sector entities is public institutions on produced and the newly introduced publically disclosed. sectoral budget classification. The Bank suggests to add an additional training worshop focusing on associating the key performance indicators (KPIs) with the new budget classification, which will allow the institutions to produce budget information associated with KPIs. Date 30-Aug-2013 -- 27-Sep-2018 31-Dec-2019 Intermediate Results Indicators by Components Component/Part 1: Developing capacities for results-based planning, budget management and evaluation IN00598298 ►Improved performance orientation of the budget (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Program budgeting In 2018, DIPRENA approach is introduced selected 6 new entities to Target has been in three pilot ministries pilot performance achieved. In 2018, The budget document for the 2018 budget budgeting in parallel with DIPRENA selected 6 does not use program year (budget for three the regular budget new entities to pilot Value classifications with very ministries are prepared submission process. The performance limited financial using program draft Organic Budget Law budgeting in parallel performance information classification and is currently being with the regular budget financial and non- reviewed by DIPRENA submission process. financial performance and Legal Services. information) Date 01-Jun-2011 23-Feb-2018 27-Sep-2018 31-Dec-2019 Component/Part 2: Managing Public Resource Information Efficiently IN00598372 ►Increased institutional coverage of the new ISTMO model in Central Government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 01-Jun-2011 23-Feb-2018 27-Sep-2018 31-Dec-2019 Target has been achieved. Comments: IN00598243 ►Increased institutional coverage of the new ISTMO model in Decentralized Government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/12/2018 Page 7 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Value 0.00 -- 72.00 100.00 Date 30-Aug-2013 -- 27-Sep-2018 31-Dec-2019 ITSMO has been implemented in 26 of the 36 decentralized institutions. Comments: IN00598244 ►Increased use of ISTMO in Central Government (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target SIAFPA, RAMAN, and all 75% of Central the previous information Government’s Budget systems which supported is subject to ISTMO the budget execution, controls and Value were basically ex-post -- Not available. registration by Dec. registry systems. 2019. (excluding Implementation of ex- transferences, Fondos ante controls was not Financieros, payroll) feasible Date 30-Aug-2013 -- 27-Sep-2018 31-Dec-2019 Clarifying measurement of this indicator with DNC. Comments: IN00598394 ►Increased use of ISTMO in Decentralized Government (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target SIAFPA, RAMAN, and all 75% of Decentralized the previous information Government’s Budget systems which supported is subject to ISTMO the budget execution, controls and Value were basically ex-post -- Not available registration by Dec. registry systems. 2019. (excluding Implementation of ex- transferences, Fondos ante controls was not Financieros, Payroll) feasible Date 30-Aug-2013 -- 27-Sep-2018 31-Dec-2019 Clarifying measurement of the indicator with DNC Comments: IN00598373 ►Extended functional coverage of the new ISTMO model (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value The current SIAFPA ISTMO includes all Achieved. ISTMO The new IFMIS model does not include functions and integration includes all functions integrates functionalities for budget with National Debt and integration with functionalities for preparation and is not (SIGADE) and Single National Debt budget preparation, harmonized with national Treasury Account. The (SIGADE), Single accounting, budget payroll, procurement and only integration missing Treasury Account, and execution, treasury public investment system is that with Tax. The only and accounting; with PanamaCompra 3 and integration missing is interfaces with national public investment. In that with debt, the treasury addition, ISTMO has PanamaCompra 3 and single account, and the implemented integration public investment (not e-tax system with payroll (EPD), DGI part of end target). In and SIAFPA addition, ISTMO has Consolidado. implemented integration with payroll 10/12/2018 Page 8 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) (EPD) and SIAFPA Consolidado. Date 01-Jun-2011 23-Feb-2018 23-Feb-2018 31-Dec-2019 Component/Part 3: Strengthening public procurement and contracting IN00598395 ►Improved procurement complaint management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Not achieved. The mission verified that the Panama Compra 3 The current Platform includes DGCP has PanamaCompra system functionalities for implemented a has no instruments to managing complaints. Value -- procurement complaint facilitate complaints Implementation of the module through about procurement Platform has been PanamaCompra 3 processes initiated in July, 2018, and is expected to be completed by May, 2019. Date 30-Aug-2013 -- 27-Sep-2018 31-Dec-2019 IN00598436 ►Modernized legal framework for procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Target has been achieved. Law 61, reforming public contracting in Panama, Updated procurement Law 22 (2006) and published September law (Law 61) and regulation 366 (2006). 27, 2017 in the Official corresponding The law has changed 6 Gazette (reforms the regulations (Decreto Value times between 2009 and -- text of Law 22 of 40) establishing 2014, but the regulation 2006). Executive guiding principles for 366 has never been Decree (Regulation) transparency, modified. 40, published April 10, professionalization, 2018 in the Official and efficiency. Gazette (replaces Regulation 366 of 2006). Date 30-Aug-2013 -- 27-Sep-2018 31-Dec-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P121492 IBRD-80160 Effective USD 55.00 55.00 0.00 41.15 13.85 75% 10/12/2018 Page 9 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P121492 IBRD-80160 Effective 03-Mar-2011 26-Sep-2011 07-Mar-2012 30-Sep-2016 31-Dec-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 09-Oct-2015 ,Level 2 Approved on 29-Jun-2018 Related Project(s) There are no related projects. 10/12/2018 Page 10 of 10