The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Public Financial Management Improvement Project Phase 2 (P177742) MIDDLE EAST AND NORTH AFRICA | West Bank and Gaza | Governance Global Practice | Special Financing | Investment Project Financing | FY 2022 | Seq No: 3 | ARCHIVED on 30-Jul-2023 | ISR57328 | Implementing Agencies: High Council for Public Procurement Policies, Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 04-Apr-2022 Effectiveness Date: 29-Jun-2022 Planned Mid Term Review Date: 30-Jun-2025 Actual Mid-Term Review Date: Original Closing Date: 30-Apr-2027 Revised Closing Date: 30-Apr-2027 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve public financial management, procurement management, and data use in the Palestinian Authority. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Improving Budget Expenditure Management and Control:(Cost $1.50 M) Financial Accountability:(Cost $2.00 M) Enhancing Revenue Mobilization:(Cost $1.50 M) Improving Public Procurement Management:(Cost $2.00 M) Closing Critical Data Gaps and Modernizing Statistics Production:(Cost $0.25 M) Project Implementation Support and Management:(Cost $0.75 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project has been effective for a year. The Project Management Unit (PMU) and the High Council for Public Procurement Policies (HCPPP) have followed the first year's implementation plan. 7/30/2023 Page 1 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Enhanced predictability in budget execution with reliable and timely information on commitments IN01325647 ►Improved budget execution (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Commitment Recording Deviation in System implemented in No change to the No change to the expenditure most line ministries. Value baseline at the current baseline at the current composition outturns Deviation in expenditure time. time. does not exceed 15 composition outturns is percent on average 20 percent Date 31-Jan-2022 14-Jan-2023 17-Jul-2023 30-Apr-2026 Budget execution control relying on realistic financial allotments linked to credible procurement plans. Comments: Deviation in expenditure composition outturns is reduced with improvements in budget execution based on better planning. Strengthened cash and debt management with improved cash and debt planning IN01325648 ►Cash management procedures and credibility of cash plans and forecasts (Text, Custom) 7/30/2023 Page 2 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Baseline Actual (Previous) Actual (Current) End Target Cash committee is in place but meets Cash management irregularly. Cash procedures and No change to the No change to the management procedures credible cash plans Value baseline at the current baseline at the current are outdated and the with a deviation of less time. time. current deviation from than 25 percent are cash plans exceeds 62 implemented percent Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2027 Comments: Updated cash management procedures and credible cash flow forecasts IN01325652 ►Improving debt management in accordance with debt management action plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 50 percent of actions No change to the No change to the No debt management envisaged in debt Value baseline at the current baseline at the current action plan management action time. time. plan are met Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2027 Documented debt management policies and procedures and prepared Debt Management Strategy and debt management plan. Three-year debt strategy should be prepared and approved by Cabinet. Debt Comments: management policies and procedures documented and approved by the Minister of Finance and the Cabinet. Debt management plan should be prepared annually and approved by Minister of Finance. The indicator will measure the degree to which the actions were implemented on a yearly basis. Improved efficiency of revenue collection IN01325649 ►Taxpayer e-services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.00 11.00 11.00 25.00 Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2027 Taxpayer e-services include tax and customs e-services available on Government e-Services Platforms or Comments: directly at MoF/Revenue Commission online resource Increased value for money, efficiency and transparency in public procurement performance IN01325650 ►Public procurement staff who completed mandatory training and are certified as procurement professionals (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 31-Jan-2022 16-Jan-2023 24-Jul-2023 30-Apr-2027 Comments: Public procurement staff at HCPPP and line ministries and agencies 7/30/2023 Page 3 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Enhanced reliance on administrative records for the production of statistics at the MOF IN01325651 ►Improved sharing of administrative data between MoF and PCBS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Administrative data Data shared on an ad No change to the No change to the shared regularly Value hoc basis based on baseline at the current baseline at the current through a data sharing specific requests time. time. platform Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2027 Comments: Administrative data collected/produced by MoF and PCBS Intermediate Results Indicators by Components Improving Budget Expenditure Management and Control IN01325657 ►Expenditure arrears monitoring (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Arrears monitoring and reporting is done on a monthly basis based on the enhanced Expenditure arrears commitment control No change to the No change to the monitoring is incomplete system and the scope Value baseline at the current baseline at the current and does not include all of arrears is improved time. time. categories of arrears to include private sector arrears and arrears of the pension fund and medical referrals Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2027 Comments: Monthly expenditure arrears monitoring and reporting and the scope including all categories of arrears IN01325661 ►Intergovernmental transfers (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Annually, LGUs receive information from MOF on their LGUs receive information No change to the No change to the transfers. This includes from MOF on an ad-hoc Value baseline at the current baseline at the current Transport tax, property basis on their liabilities time. time. tax (if applicable) and and receivables. any other tax as well as any debt against each LGU. Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2026 7/30/2023 Page 4 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Comments: LGUs receive information from MOF on their liabilities and receivables annually IN01325664 ►Gender considerations in budget preparation in select line ministries (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No gender Gender considerations No change to the No change to the considerations in budget are mainstreamed in Value baseline at the current baseline at the current preparation by line budget preparation at time. time. ministries two pilot ministries Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 31-Dec-2023 Comments: Budget preparation by select line ministries includes gender considerations Improving Financial Accountability of the PFM System IN01325653 ►Operationalization of moving from GFS 2001 to GFS 2014 (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target GFS 2014 is No change to the No change to the implemented for GFS 2001 is used at Value baseline at the current baseline at the current government finance MOF time. time. statistics required for fiscal analysis Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2024 Operational plan to move from GFS 2001 to GFS 2014 based on a phased approach prepared and Comments: implementation of the first phase launched IN01325659 ►Aligning accounting and reporting with international standards (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Approval of transition Cash basis used. plan to accrual basis Mandatory standards are No change to the No change to the (bookkeeping, Value applied with non- baseline at the current baseline at the current disclosures, reporting mandatory standards time. time. and presentation) by selectively applied the Minister of Finance Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2026 Comments: Ensuring alignment with international standards Enhancing Revenue Mobilization IN01325658 ►Customs post-clearance audit files (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 24.00 24.00 24.00 70.00 Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2026 7/30/2023 Page 5 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Comments: Number of customs post-clearance audit files performed with information on additional revenue recovered IN01325662 ►Revenue administration risk management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No change to the No change to the Taxpayer risk register No taxpayer risk register Value baseline at the current baseline at the current is developed and in place time. time. implemented Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2025 Comments: Taxpayer risk register with a list of risks applied to all taxpayers IN01325665 ►Taxpayer education (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Taxpayer education program developed No change to the No change to the Taxpayer education is and implemented Value baseline at the current baseline at the current limited taking into account time. time. feedback from different taxpayer segments Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2026 Taxpayer education program (seminars, publications, etc.) improved based on taxpayer feedback, disaggregated by taxpayer segment, through surveys. The feedback will be used to generate periodic Comments: timebound action plans that will include specific measures to address feedback compiled through the surveys. Improving Public Procurement Management IN01325654 ►Procurement professionalization in civil service (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Procurement is recognized as a distinct profession in civil service with job Procurement is not No change to the No change to the descriptions, Value recognized as a distinct baseline at the current baseline at the current competency profiles, profession in civil service time. time. training requirements and certification scheme for the profession. Date 31-Jan-2022 16-Jan-2023 24-Jul-2023 30-Apr-2025 Procurement is recognized as a distinct profession in civil service with job descriptions, competency Comments: profiles, training requirements and certification scheme for the profession IN01325660 ►Performance monitoring reports of the public procurement system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/30/2023 Page 6 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) HCPPP publishes annual performance monitoring reports of the public procurement No performance No change to the No change to the system against Value monitoring reports baseline at the current baseline at the current predefined KPIs using published time. time. data systematically collected through the single procurement portal Date 31-Jan-2022 16-Jan-2023 24-Jul-2023 30-Apr-2025 HCPPP publishes annual performance monitoring reports of the public procurement system against Comments: predefined KPIs using data systematically collected through the single procurement portal IN01325663 ►Strategy for procurement of pharmaceuticals and medical supplies (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Jan-2022 16-Jan-2023 24-Jul-2023 30-Apr-2025 Comments: Strategy for procurement of pharmaceuticals and medical supplies prepared and adopted Closing Critical Data Gaps and Modernizing Statistics Production IN01325655 ►Macro-fiscal forecasting models (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Forecasting models No change to the No change to the Outdated macro-fiscal updated in line with Value baseline at the current baseline at the current models currently in use international good time. time. practices Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2025 Comments: Macro-fiscal forecasting models updated in line with international best practices IN01325656 ►Measurement of the informal sector and inclusion in national accounts (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Updated national data on informal sector Outdated measures of No change to the No change to the processed and Value the size of informal baseline at the current baseline at the current incorporated into sector time. time. national accounts data and macro-fiscal forecasting models Date 31-Jan-2022 14-Jan-2023 24-Jul-2023 30-Apr-2025 Updated national data on informal sector processed and incorporated into national accounts data and Comments: macro-fiscal forecasting models 7/30/2023 Page 7 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P177742 TF-B8064 Effective USD 8.00 8.00 0.00 0.89 7.11 11% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P177742 TF-B8064 Effective 04-Apr-2022 07-Jun-2022 29-Jun-2022 30-Apr-2027 30-Apr-2027 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 7/30/2023 Page 8 of 9 The World Bank Implementation Status & Results Report Public Financial Management Improvement Project Phase 2 (P177742) There are no related projects. 7/30/2023 Page 9 of 9