The World Bank Report No: ISR11460 Implementation Status & Results El Salvador Fiscal Management and Public Sector Performance Technical Assistance Loan (P095314) Public Disclosure Copy Operation Name: Fiscal Management and Public Sector Performance Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 03-Sep-2013 Technical Assistance Loan (P095314) Country: El Salvador Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 24-Nov-2009 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 11-Feb-2013 Last Archived ISR Date 07-Jan-2013 Effectiveness Date 24-May-2011 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 11-Feb-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the institutional capacity of specific government processes and agencies to increase the effectiveness and efficiency of revenue and expenditure management and enhance accountability and transparency in the public sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Tax Collection Agencies 5.20 Modernizing Public Expenditure and Financial Management 13.00 Enhancing and piloting information management and public sector transparency initiatives 0.80 Project coordination 1.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Progress in the achievement of target indicators is satisfactory, with a significant number of them already achieved. Disbursement rates have picked up since the last ISR and are now at 14.5%, expecting to reach 25% by the end of CY13. The planning of the activities reveals that most of the disbursement will be carried out through CY14 as they pertain to Page 1 of 6 The World Bank Report No: ISR11460 equipment and software, with a small number of consultancies. Thanks to the commitment of the Ministry of Finance and the PIU regular supervision VCs are taking place in order to continue with a close monitoring of implementation activities by CO and task team. Locations Public Disclosure Copy No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Tax collection as a percent of GDP increases Text Value Tax colllection as a Tax collection as a Tax collection as percentage at least 1% as a result of greater effectiveness percentage of GDP was percentage of GDP was of GDP has increased at least and efficiency 13.2% 15.5% by Dec 2012 y 15.1% 1% Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments The Government has updated Achieved. this number to 13.73% Stronger budgeting, treasury, and human Text Value Government financial There is a draft National Government financial resources management and adoption of statements are not consistent Accounting Plan defined to be statements are consistent international accounting standards with international standards; compatible with IPSAS with IPSAS and GFS costing of programs is not (2001). The conceptual model standards and contributing to possible. for the budgeting modulewas cost activities and outputs in approved on October 15, public programs 2012, and its contents are compliant with IMF international accounting standards. Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments The introduction of multi-annual projections Text Value PEFA indicator #12: Multi- Conceptual model for the Improvements in the ratings in and programmatic structure in the budget year perspective in fiscal relevant modules in the new PEFA indicator #12: #Multi- strengthens strategic planning and the planning, expenditure policy SAFI has been finalized and year perspective in fiscal implementation of performance-based and budgeting [baseline: C+ approved. Its contents include planning, expenditure policy Public Disclosure Copy budgeting 2009] - PEFA indicator #5: the introduction ofmid-term and budgeting# and PEFA Classification of the budget projections and performance indicator #5: #Classification of [baseline: C 2009] based budgeting. the budget# Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR11460 Indicator Name Core Unit of Measure Baseline Current End Target Hours to clear merchandise from the moment it Hours Value 60.00 37.20 48.00 arrives to custom terminal until it is released Date 31-Dec-2009 01-Jan-2013 31-Dec-2014 Public Disclosure Copy Comments Achieved % increase of successful lawsuits conducted Percentage Value 85.00 80.60 5.00 by the DGII and the DGA at the TAIIA Date 31-Dec-2009 07-Dec-2012 31-Dec-2014 Comments 85% for DGII and 60% for The 4.4% reduction is DGA explained by a new interpretation of some norms given by the courts in 2010 that has caused some processes tocome under review. This trend is being overturned. % increase of web-processed transactions Percentage Value 9.42 5.00 Date 31-Dec-2009 31-Jan-2013 31-Dec-2014 Comments VAT statements through web 20.8% VAT statements 5% increase are 9.42% (Dic.2009) through web of web processed transactions; 89% of customs statements 94.9% of customs statements 80% of banks are electronic are electronic incorporated 50% of banks accept 80% of banks accept electronic payments electronic payment Availability of a new electronic purchasing Text Value Current purchasing system is COMPRASAL system is A new electronic purchasing system designed and implemented not electronic. being developed system designed and (COMPRASAL). implemented in central government institutions (COMPRASAL) Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments Public Disclosure Copy Implementation of the Single Treasury Account Text Value The STA is not implemented, STA is being developed. The Single Treasury Account (STA) and electronic payment module leading to inefficiencies in the and electronic payment implemented in all Central Government, use of financial resources and module was implemented in including the national hospitals network. payments all central government, including the national hospitals network. Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments Page 3 of 6 The World Bank Report No: ISR11460 The Human Resource Management System Text Value The Human Resource SIRH is being developed. Budget formulation for HR (SIRH) is updated and inter- operating with Management System (SIRH) and payroll is automatic and SAFI is not inter-operating on line linked to SAFI with SAFI, for budget Public Disclosure Copy formulation and implementation Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments Creation of automatic accounting reports and Text Value Accounting reports and Draft of accounting plan SAFI is able to automatically financial statistics according to international financial statistics are not compatible for international create accounting reports and standards created automatically, and do standards. Needs to be financial statistics according not meet international approved to IPSAS and 2001 IMF standards Government Financial Statistics standards Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments Transparency related policies piloted and Text Value n/a Two sets of transparency Transparency related policies implemented activities have been approved piloted and implemented in at and are being implemented. least three central government agencies Date 16-Jul-2013 31-Dec-2014 Comments Implementation of a medium term expenditure Text Value There is currently no medium The Conceptual Model for the The medium term expenditure framework and results-based budgeting system term expenditure framework new SAFI, which includes framework and results-based in the Central Government and results-based budgeting MTE framework and RBB was budgeting has been system in place approved in October 2012. formulated in SAFI in all central Government institutions Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments % recovery of tax arrears portfolio Percentage Value 70.00 59.00 60.00 Public Disclosure Copy Date 31-Dec-2009 07-Dec-2012 Comments Reduction of 11% Development of the conceptual model for the Text Value The budget is not structured The conceptual model for the The conceptual model for the programmatic classification in the budget using the programmatic budgeting module was programmatic classification in classification approved on October 15, the budget has been 2012, wich includes the developed and the budget is programmatic classification of structured by programs budget. Page 4 of 6 The World Bank Report No: ISR11460 Date 31-Dec-2009 16-Jul-2013 31-Dec-2014 Comments Public Disclosure Copy Data on Financial Performance (as of 11-Jul-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095314 IBRD-78120 Effective 24-Nov-2009 16-Mar-2011 24-May-2011 31-Dec-2014 31-Dec-2014 P095314 TF-95841 Closed 17-Mar-2010 28-May-2010 28-May-2010 30-Sep-2010 30-Jun-2011 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095314 IBRD-78120 Effective USD 20.00 20.00 0.00 2.92 17.08 15.00 P095314 TF-95841 Closed USD 0.08 0.06 0.01 0.06 0.00 100.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation No decisions for disclosure Restructuring History Page 5 of 6 The World Bank Report No: ISR11460 Level two Approved on 18-Feb-2011 Related Projects Public Disclosure Copy There are no related projects. Public Disclosure Copy Page 6 of 6