The World Bank Report No: ISR5460 Implementation Status & Results Uruguay UY Institutions Building TAL (P097604) Public Disclosure Copy Operation Name: UY Institutions Building TAL (P097604) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 10-Aug-2011 Country: Uruguay Approval FY: 2007 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Economy and Finance Key Dates Board Approval Date 30-May-2007 Original Closing Date 30-Dec-2011 Planned Mid Term Review Date Last Archived ISR Date 10-Aug-2011 Effectiveness Date 06-Aug-2007 Revised Closing Date 31-Aug-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective is to improve the Borrower’s public sector performance by: (i) supporting its public sector modernization program in the areas of monitoring and evaluation, performance-based budgeting, e-government, tax administration and statistics; and (ii) strengthening its institutions involved with the design and implementation of public policy reforms in the areas of taxation, promotion of the business environment, and social protection. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Strengthening Customs Administration#s Human Resources Management 0.15 Improving Institutional Planning, Monitoring, and Evaluation 2.21 E-Government 1.55 Support to BPS for institutional strengthening and implementation of tax and social protection reforms 5.18 Support for Capital Markets and Corporate Transparency Reforms 2.55 Public Disclosure Copy Support for Bankruptcy Regulation Reforms 0.12 Project Coordination and Strategy Development 5.36 Support Institutional Strengthening of DGI 3.00 Support Institutional Strengthening of INE 1.10 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Page 1 of 11 The World Bank Report No: ISR5460 Previous Rating Current Rating Overall Risk Rating Low Public Disclosure Copy Implementation Status Overview Implementation continues to progress satisfactorily for all components. Locations Country First Administrative Division Location Planned Actual Uruguay Not Entered Montevideo Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improvements in the design and management Text Value Seven priority areas and 31 Seven priority areas and 31 40 of monitoring and evaluation methodologies expenditure programs have expenditure programs have and tools for improved results budgeting in the identified output and outcome identified output and outcome Central Government Budget. indicators. indicators. Date 31-Dec-2011 31-Dec-2011 31-Aug-2016 Comments E-govt strategy is implemented, ensuring Text Value None. E-govenment agency 150 connectivity through a common platform of the functioning and strategy principal agencies, allowing safe, fast & easy adopted and under exchange of info between agencies & between implementation. agencies & citizens. Date 15-Jun-2007 31-Dec-2011 31-Dec-2012 Comments Entities responsible for policy reform initiatives Text Value Partial. Techincal tools for BPS tax Full implementation of in taxation, capital markets, social protection, collections implemented K- reforms. and bankruptcy regulation have necessary Mkts Law was approved. The Public Disclosure Copy technical tools to implement approved reforms. software development for social protection programs is underway. The Bankruptcy Law was passed. Date 15-Jun-2007 31-Dec-2011 31-Dec-2011 Comments Page 2 of 11 The World Bank Report No: ISR5460 The ratio of the yearly variation in the nominal Percentage Value 13.00 13.00 5.30 tax collections over the yearly variation in the Date 31-Dec-2011 31-Dec-2011 31-Aug-2015 nomial GDP. Comments No progress to date as this is Public Disclosure Copy a new component added to the project during the Additional Financing, which was approved by the Board on 12/6/2011. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target A new human resources management strategy Text Value None. has been defined and presented for the Date 15-Jun-2007 31-Dec-2011 06-Aug-2008 approval of DNA directives (YR1) Comments Component has been eliminated. Review of job profiles for 100% of operational Text Value None. 100 percent. staff has been achieved (YR2) Date 15-Jun-2007 31-Dec-2011 06-Aug-2009 Comments Component has been eliminated. Skills evaluation of 80% of the operational staff Text Value None. 80 percent. has been carried out (YR2) Date 15-Jun-2007 31-Dec-2011 06-Aug-2009 Comments Component has been eliminated. All new recruitments are based on a Text Value Approximately 50 percent 100 percent. competitive, merit-based recruitment policy Date 15-Jun-2007 31-Dec-2011 31-Dec-2011 (YR3). Comments Component has been eliminated. Methodology for use of Indicators, Log Frame, Text Value None. The software for Dashboards Methodology implemented in Information management and PMG has been (Tableros de Control) has a total of 9 ministries. Public Disclosure Copy definted and implemented in 3 pilot institutions been installed in five included in the budget (YR2) and 6 additional ministires and another 3 are institutions (YR5). being implemented. Date 15-Jun-2007 31-Dec-2011 31-Dec-2012 Comments End target date has been shifted out from year 4 or year 5 during the processing of the Additional Financing. Page 3 of 11 The World Bank Report No: ISR5460 Representatives of Parliament, the Court of Text Value None. Target met. Fifteen 15 Representatives Accounts, the Internal Auditor's Office, and at Representatives have been least 2 civil society organizations have been trained in the use of indicators trained in the use of M&E information. (YR3) and change management. Public Disclosure Copy Date 15-Jun-2007 01-Jun-2011 31-Dec-2011 Comments Target was changed from 15 to 25 Representatives during the first semester of 2010. This indicator will no longer be evaluated as of end-2011 because the activities are no longer relevant. HOwever it will be left in the matrix for the purpose of ex-post evaluation of the Project. Number of Rapid Evaluations concluded (YR8). Text Value None. AGEV is contracting 24 consultants as integral members of the rapid evaluation teams. In early 2012, three rapid evaluations of publicinterventions by central Govenrment agencies will be conducted. Date 15-Jun-2007 31-Dec-2011 31-Aug-2015 Comments Target date was shifted out from year 4 to year 8 during the processing of the Additional Financing. Web page and printed reports available to civil Text Value No. Target met. Web page of Yes. society with M&E information (YR3). M&E unit of the Presidential Office of Public Planning already open to the public (since October 2009). Thesite Public Disclosure Copy provides the following M&E information: 1). Uruguay Observatory, 2). Public Policies Simulator, 3). Social Report ObservatoryUruguay 2009. The Uruguay Oberservatory is updated continuously. Date 15-Jun-2007 31-Dec-2011 06-Aug-2010 Comments Target met. Page 4 of 11 The World Bank Report No: ISR5460 The budget decision-makers receive quality Text Value No. Budget decision makers Yes. M&E information from at least 9 ministries to be receive M&E information for used in the budgeting process for 7 seven programmatic areas in programmatic areas. (YR5) 14 ministires. Public Disclosure Copy Date 15-Jun-2007 31-Dec-2012 31-Dec-2012 Comments Target date was shifted out from year 4 to year 5 during the processing of the Additional Financing. Number of Budget Execution reports submitted Number Value 1.00 1.00 4.00 to Congress, including data on indicators Date 31-Dec-2011 31-Dec-2011 31-Dec-2014 (YR7). Comments The strategy and technical requirements for the Text Value No. Target met by AGESIC. A Yes. implementation of the e-government strategy strategy has been approved, have been defined. (YR1) which defines a calendarized list of activities. Interinstitutional agreements for an integrated process are underway. The e-government platform is published on the AGESIC website and is available at http://www. agesic.gub.uy/innovaportal/ v/759/1/agesic/REDuy.html Date 15-Jun-2007 01-Jun-2011 06-Aug-2008 Comments Target met. At least 80% of central government Text Value 0% The software development is 80% procurement of medicine and food, including underway and the centralized ASSE, is done through a transactional e- procurement system will procurement platform. (YR6) begin implementing in July 2012. Public Disclosure Copy Date 15-Jun-2007 01-Jun-2011 01-Apr-2013 Comments *Clarification: the percentage End Target date has been of procurement of food and extended from 8/6/10 until medicine refers to the 4/1/2013. percentage purchased by UCA. *Clarification: ASSE is to be included in the definition of the central government, as it is the most important client of UCA. Page 5 of 11 The World Bank Report No: ISR5460 At least 100 public sector transactions are Text Value TBD. There are currently 608 100 public sector accessible through a unified portal. (YR3) transactions available through transactions. the State Portal, 189 of which are available from start to Public Disclosure Copy finish. Date 15-Jun-2007 31-Dec-2011 06-Aug-2010 Comments Implementation of the modernization program Text Value 0% The planned actions were 100% of the collections area of BPS has advanced in completed in June 2011. accordance with action plan. (YR2-4) Date 15-Jun-2007 31-Dec-2011 31-Dec-2011 Comments Target Met. Increase in the revenue yield of the social Text Value N/A To be reported by BPS The revenue yield of the 5 percent security special contributions. (YR4) following Oct. 2008 mission. social security contributions increased 5 percent from September 2006 to September 2009. No additional increases were expected given the high degree of compliance. However, from October 2009 to September 2010, the revenue yield increased an additional 4.7 percent. From October 2010 to September 2011, the revenue yield increased an additional 6 percent, greatly exceeding expectiations. Date 15-Jun-2007 31-Dec-2011 06-Aug-2011 Comments Target Met. 5 central government institutions have Text Value No central government 5 Central Government 5 central government integrated information on social protection institutions. institutions have presented institutions Public Disclosure Copy programs and beneficiaries on the SIIAS and informaiton about social the information is used for policy making. (YR4) protection on the SIIAS. The system is being built and the necessary actions for institutional strengthening prior to the implementation have been taken. SIIAS has already contacted other instituions to be included after Page 6 of 11 The World Bank Report No: ISR5460 the implementation of phase I and II is under analysis. Date 15-Jun-2007 31-Dec-2011 31-Dec-2011 Public Disclosure Copy Comments Number of additional Government agencies Number Value 5.00 5.00 that have data on their social programs' Date 31-Dec-2011 31-Dec-2011 31-Dec-2014 beneficiaries and benefits integrated in SIIAS Comments To date, five additional (YR7). Government agencies that have data on their social programs' beneficiaries and benefits are integrated in SIIAS. International standards for securities market Text Value No. Capital Markets Law Yes. regulation and securities settlement have been approved. Before its approval applied (YR4). the Central Bank passed a few amendments to Central Bank regulations that were necessary (and possible) to improve compliance with international standards. A schedule for the reglamentation of the new capital markets law is in progress and further implementation of the capital markets law as agreed to as a prior action for the UY DPL 2, approved by the Board on October 25, 2011. Progress has been made towards an improved risk-based supervision. Date 15-Jun-2007 31-Dec-2011 31-Dec-2011 Public Disclosure Copy Comments Private corporations are submitting financial Text Value No. Law creating Accounting Yes. reports according to the new strengthened Board Institute unlikely to be statutory and institutional framework. (YR8) sent to Congress. But target may still be met in other way, through future work with Internal Audit of the Republic, like the adoption of the XBRL taxonomy for the submission Page 7 of 11 The World Bank Report No: ISR5460 of financial reports to the Registry of Financial Statements. Date 15-Jun-2007 31-Dec-2011 31-Aug-2015 Public Disclosure Copy Comments The revised target date was shifted out from year 4 to year 8 during the processing of the Additional Financing. A sustainable and effective process for Text Value No. Target met ahead of time. Yes. adopting IFRS has been applied. (YR4) Decree No. 266/07 has been approved, making the application of IFRS mandatory as of 1/1/2009. Date 15-Jun-2007 31-Dec-2011 31-Dec-2011 Comments Target met. Draft implementing regulations for the new Text Value No. Target met ahead of time. Yes. bankruptcy law have been prepared. (YR2) Bankruptcy Law approved October 2008. Draft regulations approved on 3/23/09, 4/23/09 and 4/29/09. Three regulatory decrees were approved. Date 15-Jun-2007 31-Dec-2011 06-Aug-2009 Comments Target met. Incentive based performance has been Text Value No. Achievement delayed due to Yes. implemented for Human Resources in Customs the elimination of the Administration. (YR5) component. Howerver, activities continue under component 7, which finances consulting services for staff entry and exit policies. Date 15-Jun-2007 31-Dec-2011 31-Dec-2012 Public Disclosure Copy Comments Component has been eliminated, however activities for this indicator continue under Component 7. Study has been presented on the impact of the Text Value No. The project execution unit Yes. new legal framework and the institutinal identified a qualified strengthening activities supported by the consultant to design a system project on times and costs for bankruptcy to assess cost and time cases. savings, however, after an initial attempt, his vision was Page 8 of 11 The World Bank Report No: ISR5460 unsatisfactory to the MEF. The MEF and Bank are in the process of agreeing to an alternative way to obtain time Public Disclosure Copy and cost savings information. Date 15-Jun-2007 31-Dec-2011 31-Aug-2013 Comments Proportion of intensive audits generated by the Percentage Value 0.00 0.00 20.00 risk management system audits over the total Date 31-Dec-2011 31-Dec-2011 31-Aug-2015 intensive audits (YR8). Comments No progress to date as this is a new component added to the project during the Additional Financing, which was approved by the Board on 12/6/2011. Software to support the electronic accounting Yes/No Value No No Yes application developed and operating (YR7). Date 31-Dec-2011 31-Dec-2011 31-Dec-2014 Comments No progress to date as this is a new component added to the project during the Additional Financing, which was approved by the Board on 12/6/2011. Capacity building plan concluded and Percentage Value 0.00 0.00 70.00 implemented in indicated percentages (YR7). Date 31-Dec-2011 31-Dec-2011 31-Dec-2014 Comments No progress to date as this is a new component added to the project during the Additional Financing, which was approved by the Board on 12/6/2011. Public Disclosure Copy Panel Survey of the most vulnerable population Yes/No Value No No Yes concluded (YR 8). Date 31-Dec-2011 31-Dec-2011 31-Aug-2015 Comments No progress to date as this is a new component added to the project during the Additional Financing, which was approved by the Board on 12/6/2011. Data on Financial Performance (as of 20-Dec-2011) Page 9 of 11 The World Bank Report No: ISR5460 Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P097604 IBRD-74510 Effective 30-May-2007 21-Jun-2007 06-Aug-2007 30-Sep-2013 Public Disclosure Copy P097604 IBRD-81160 Not Effective 06-Dec-2011 31-Aug-2015 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P097604 IBRD-74510 Effective USD 12.10 12.10 0.00 6.77 5.33 56.00 P097604 IBRD-81160 Not Effective USD 10.00 10.00 0.00 0.00 10.00 0.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Ministry of Economy and Finance (MEF) requested an additional financing of US$10 million, which was approved by the Board of Executive Directors on December 6, 2011. The Additional Financing expands the coverage of existing well performing components and includes two new components which support institutional strengthening of the Directorate of Taxation (DGI) and the National Statistics Institute (INE). The additional financing loan is expected to be signed in Quarter 3 of FY12. Due to the change in scope of the Project with the inclusion of two new indicators, the Project Development Objective was slightly expanded. The results matrix was also adjusted to reflect the slightly altered or new activities. All changes are reflected in the Project Paper (available on the Bank's external website) and also within this ISR. Restructuring History Level one Approved on 11-Jan-2010, Level two Approved on 10-Feb-2011 Page 10 of 11 The World Bank Report No: ISR5460 Related Projects P123461-Institutions Building Technical Assistance Additional Financing Public Disclosure Copy Public Disclosure Copy Page 11 of 11