The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) Lao PDR Public Financial Management Reform Project (P179016) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | IBRD/IDA | Investment Project Financing (IPF) | FY 2023 | Seq No: 1 | Archived on 29-Jan-2024 | ISR00033 Implementing Agencies: Ministry of Finance of Lao PDR, Ministry of Home Affairs 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 29-Jun-2023) The development objective is to improve the legal framework and institutional capacity for public expenditure and revenue management, public procurement and human resources management. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. OVERALL RATINGS Name Current Progress towards achievement of PDO Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Overall Risk Rating Moderate 3. KEY ISSUES & STATUS 3.1 Implementation Status and Key Decisions The RETF became effective in January 2024 as the Grant Agreement (GA) was signed in late December 2023. Implementation will commence as soon as MoF prepares and WB approves activity plans under each component. 4. SYSTEMATIC OPERATIONS RISK-RATING TOOL Jan 29, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) Rating at Approval Risk Category Approval Package - 29 Jun Proposed Rating 2023 Overall Moderate Moderate Jan 29, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) 5. RESULTS 5.1 PDO Indicators Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Templates for May/2023 progress on 11-Jan-2024 progress on 11-Jan-2024 MTBP piloted Aug/2027 medium-term this indicator is this indicator is in at least two budget plans currently being currently being budget entities (MTBP) and made under made under and SBPS State Budget the BETF part the BETF part prepared Policy of the PFM of the PFM Strengthened medium-term Statement Program. Program. perspective in expenditure prepared Discussions on Discussions on budgeting (Component 1) the draft the draft (Text) MTBP and MTBP and SBPS are SBPS are ongoing and a ongoing and a WB mission is WB mission is planned in Q1 planned in Q1 of 2024 of 2024 selected tax May/2023 At least two Dec/2026 legislation pieces of Strengthened tax legislation needs revised draft (Component 2) (Text) revisions tax legislation prepared Strengthened procurement PPMD does May/2023 PPMD uses its Aug/2027 monitoring and public access not monitor website to Jan 29, 2024 Page 3 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) to procurement information regularly monitor public (Component 3) (Text) public procurement procurement activities and activities and the website is limited regularly information on updated with procurement procurement is made public information, including on procurement opportunities and awards No Instruction May/2023 Instruction on Aug/2027 on implementatio implementatio n of PM Strengthened civil service n of PM Decree on Civil legislation (Component 4) Decree on Civil Service (Text) Service Management Management Strategy Strategy prepared 5.2 Intermediate Results Indicators Baseline Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Month/Year Jan 29, 2024 Page 4 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) seven segments of May/2023 detailed coding of all Dec/2026 Improved chart of accounts (CoA) new chart of accounts seven segments of the (Text) (COA) adopted new COA finalized and adopted by MoF no government staff May/2023 at least 100 staff Aug/2027 Strengthened capacity to use revised trained to use revised trained to use revised Chart of accounts (CoA) (Text) CoA CoA, disaggregated by gender dialogue on treasury Jun/2023 Roadmap for treasury Aug/2027 Strengthened cash management single account reforms single account (Text) ongoing prepared risk-based audit (RBA) May/2023 Comprehensive risk Aug/2027 Strengthened risk management manual prepared management (Text) framework developed no training for tax May/2023 at least 30 tax officials Aug/2027 Strengthened taxpayer services officials to use manual trained on using the (Text) on personal income manual on personal tax income tax tax officials unfamiliar May/2023 at least 50 tax officials Aug/2027 with selected tax- at central and Strengthened awareness of tax related topics, such as provincial level trained officials at central and provincial level land tax, transfer on selected tax-related on different tax-related topics and pricing topics and legislation, legislation (Text) disaggregated by gender 480 government May/2023 at least additional 200 Aug/2027 Strengthened capacity on public officials in charge of government officials in procurement (Text) public procurement in charge of public procurement trained Jan 29, 2024 Page 5 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) six Northern provinces trained Framework May/2023 Framework Aug/2027 Framework agreements piloted agreements not being agreements used in at (Text) used least two ministries Complaint mechanism May/2023 Complaint mechanism Aug/2027 for resolving used to resolve at least Public procurement complaint complaints related to two complaints, if such mechanism operationalized (Text) public procurement have been received not being used no conceptual May/2023 Conceptual framework Aug/2027 Modernized human resources framework and model and model of HRMIS management (Text) of HRMIS developed Around 2,500 (of May/2023 at least additional 500 Aug/2027 which 978 female) civil civil servants at servants at central and central, provincial and Strengthened professionalism of civil provincial level aware district level aware of servants (Text) of the code of ethics the code of ethics, disaggregated by gender Satisfaction with Mar/2023 Satisfaction with Aug/2027 perceived knowledge perceived knowledge from trainings, from trainings, Beneficiary feedback (Text) workshops, workshops, disaggregated by disaggregated by gender: 4.28/5 gender: 5/5 Increased awareness of international no study tours May/2023 at least 2 study tours Aug/2027 experiences on selected key PFM organized on selected key PFM topics (Text) topics Jan 29, 2024 Page 6 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) Jan 29, 2024 Page 7 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) 6. DISBURSEMENTS 6.1 Cumulative Disbursements 6.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed TF-C1981 Effective 1.80 1.80 0.00 0.00 1.80 0% 6.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing TF-C1981 Effective 29-Jun-2023 25-Dec-2023 25-Dec-2023 31-Aug-2027 31-Aug-2027 Jan 29, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report Lao PDR Public Financial Management Reform Project (P179016) 7. RESTRUCTURING HISTORY There has been no restructuring to date 8. ASSOCIATED OPERATION(S) There are no associated operations Jan 29, 2024 Page 9 of 9