The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) Progestão Mato Grosso: Public Sector Management Efficiency (P178339) LATIN AMERICA AND CARIBBEAN | Brazil | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2023 | Seq No: 2 | ARCHIVED on 23-Jun-2023 | ISR56619 | Implementing Agencies: Secretariat of Finance - Mato Grosso, State of Mato Grosso Key Dates Key Project Dates Bank Approval Date: 23-Aug-2022 Effectiveness Date: -- Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2028 Revised Closing Date: 30-Jun-2028 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) Improve efficiency in public resource management in selected departments of the State of Mato Grosso. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Whole-of-Government Management Systems:(Cost $41.00 M) Management Systems in Strategic Sectors:(Cost $6.80 M) Project and Change Management:(Cost $2.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Progestão MT: Public Sector Management Efficiency project (Progestão-MT) was approved by the Board of Directors on August 23, 2023, and is currently awaiting approval from the Brazilian Senate, which is expected by end of August 2023. The project was approved in the amount of USD 40 million, with a counterpart funding of USD 10 million. The project's development objective is to improve efficiency in public resource management in selected departments of the State of Mato Grosso. The Progestão-MT is the second operation in a Series of Projects (SoP) under the Progestão Program, designed to assist Brazilian States in implementing reforms that will improve efficiency in public expenditures. The objective of the Progestão Program is to develop the fiscal budget and asset management of the Brazilian State governments through actions that aim to reduce and rationalize public spending with long-term results to contribute to the fiscal sustainability of subnational entities. The Program is available to all Brazilian States, regardless of their fiscal situation, and will provide technical assistance to help participating States modernize and improve efficiency in whole-of-government functions and strategic sectors through investments in management reforms and information systems. Specifically, the Progestão-MT will finance investments in: (i) human 6/24/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) resource management; (ii) pensions management; (iii) public procurement; (iv) public investment management and budgeting; (v) asset management; (vi) education; (vii) health; and (viii) social assistance. Project effectiveness has been delayed due to changes requested by the Borrower and its Guarantor. By letter of March 15, 2023, the SoMT requested restructuring of the Project to strengthen the project’s alignment with Senate Resolution 43/2001. Following technical discussions with the SoMT and the guarantor the Loan Agreement (LA) was revised to respond to the concerns raised: (i) removing references to gender, citizen engagement, sustainable and green procurement, and climate change; (ii) reviewing activities and indicators to demonstrate that they are related to fiscal, financial, and asset management; (iii) demonstrating the fiscal and financial impacts of the proposed activities. As such a project restructuring (Level two restructure) was approved by the World Bank’s Country Director on April 24, 2023. The project team continued to provide support to State counterparts on matters of effectiveness and implementation readiness. To this end, an implementation readiness mission to Cuiaba was conducted from March 1-3 2023 to support the Project Management Unit (PMU) in prioritizing and preparing project implementation activities for the next 12-18 months. All project areas, including core government functions/systems and sectors, have already prepared their annual work plan for 2023-2024. Furthermore, several Terms of Reference (ToRs) are currently being prepared in advance of project signature to expedite implementation once the project becomes effective. During the mission, the team also discussed and reviewed key effectiveness documents, such as the Manual of Operations (MoP) and legal documents for establishing the PMU, as well as the Memorandum of Understanding (MoU) among project beneficiaries. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve efficiency in public resource management in selected departments of the State of Mato Grosso IN01304686 ►Public sector workforce replacement rate for non frontline service delivery staff (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/24/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) Value 0.98 0.98 0.98 0.97 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Personnel recruited from outside the public sector divided by personnel leaving active post (retirement, Comments: resignation) in non-frontline service delivery areas. Baseline is average of last 5 yrs This indicator excludes personnel employed in front line service delivery IN01304687 ►Time between opening and finalizing the procurement process (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 195.00 195.00 195.00 120.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2026 Comments: Days between Demand Registration in procurement system and award of contract to provider IN01304688 ►Investment Budget execution rate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 55.50 55.50 55.50 70.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2026 Average annual execution of public investment projects compared with original budget in the last 5 years, Comments: considering a filter of investment projects applied to the attribute "expenses group="Investments" in the State Planning integrated system (FIPLAN) IN01304689 ►Net fixed property income (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.10 15.10 15.10 20.10 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2026 Average net fixed propery income of State "receita patrimonial" element in Budget revenues (Millions of Comments: Reais). Baseline is average of lst 3 yrs. Excludes property sales and purchases Intermediate Results Indicators by Components Component 1: Whole-of-Government Management Systems IN01304690 ►Payroll irregularities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 -0.30 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2026 6/24/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) Expenditure irregularities in the active personnel payroll. Data will come from Audit reports. The Comments: management analytics product will identify risk areas for control. Baseline is total payroll and target is - 0,3%. IN01304692 ►State public agencies and institutions conducting strategic workforce planning (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 # of institutions/agencies with strategic workforce planning reports as percent of total number of state Comments: agencies/institutions IN01304694 ►Performance of the state pension fund relative to the average for Brazilian states (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.10 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Measures of the performance of the State pension fund in comparison to the average of other State Comments: governments, with a target of improving annual returns by at least one standard deviation. IN01304696 ►Public hearing on public investments by state or through transfers to municipalities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Government incorporating feedback to improve government's investments made through transfers to Comments: municipalities, as well as capital investments by capturing user satisfaction on specific dimensions of quality, timeliness and accessibility of information provided IN01304697 ►Integrated dashboard for municipal transfers with operational information and accessible to the public (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Comments: Website with information on municipal transfers is operational and acessible to the public IN01304698 ►Pension payroll irregularities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 -0.30 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 6/24/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) Expenditure irregularities (of any category) in the retired personnel and pensioner payroll. Data will come Comments: from Audit reports. The management analytics product will identify risk areas for control. Baseline is total payroll and target is a reduction of 0.3% IN01304699 ►Use of price reference system in competitive bidding processes (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Comments: Share of goods and services bidding documents with price reference IN01304700 ►Public procurement processes with sustainability criteria (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 27.00 27.00 27.00 50.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Public procurement with sustainability criteria. Share of public procurement processes with environmental, Comments: social, and governance criteria IN01304701 ►Women-owned businesses registered in the state's procurement system and eligible to participate in public bids (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Measures women-owned businesses registered in the state's procurement system and eligible to Comments: participate in public bids as a share of total business registered. IN01304702 ►Public investment projects prepared and selected in line with PIM methodology (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Measures degree of application of the new PIM methodology to public investment projects. A review of all Comments: new projects will be carried out to determine compliance IN01304703 ►Inventory on State ICT Infrastructure (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 6/24/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) Comments: Complete inventory report on state ICT infrastructure and systems finalized and available IN01304704 ►Public real estate with complete legal documentation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 15.00 15.00 80.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Number of state real estate properties with complete legal documentation proving state ownership as Comments: share of total number of state real estate properties listed in state database Component 2: Management Systems in Strategic Sectors IN01304691 ►Number of high complexity health units with hospital management system implemented and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Number of high complexity health units implementing an integrated digital hospital management system Comments: with minimally required information and analytical capabilities IN01304693 ►Municipalities using new financial management system to provide reports on social assistance services (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 65.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Percentage of municipalities generating reports on social assistance services from the financial Comments: management information system IN01304695 ►Municipalities with capacity building on the new social assistance services management system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 31-Dec-2021 12-Dec-2022 22-Jun-2023 30-Jun-2027 Percentage of municipalities that have adopted and were trained in the new social assistance services Comments: management system Performance-Based Conditions Data on Financial Performance 6/24/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Progestão Mato Grosso: Public Sector Management Efficiency (P178339) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P178339 IBRD-94360 USD 40.00 40.00 0.00 0.00 40.00 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P178339 IBRD-94360 23-Aug-2022 -- -- 30-Jun-2028 30-Jun-2028 Effective Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/24/2023 Page 7 of 7