The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Sao Tome and Principe: Institutional Capacity Building Project (P162129) EASTERN AND SOUTHERN AFRICA | Sao Tome and Principe | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 11 | ARCHIVED on 07-Dec-2023 | ISR58549 | Implementing Agencies: Central Bank, Ministry of Justice, Ministry of Planning, Finance, and Blue Economy, National Statistics Agency Key Dates Key Project Dates Bank Approval Date: 18-May-2018 Effectiveness Date: 28-Aug-2018 Planned Mid Term Review Date: 17-Feb-2023 Actual Mid-Term Review Date: 17-Feb-2023 Original Closing Date: 30-Jun-2023 Revised Closing Date: 31-Dec-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To contribute to improved capacity of public institutions to: i) supervise the banking system; ii) promote access to finance; iii) manage public finances; and, iv) produce national statistics. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Financial Soundness and Access:(Cost $8.80 M) Strengthening Budget Credibility, Tax Base and SOE Governance:(Cost $5.70 M) Property Registration and Statistical Development:(Cost $2.70 M) Project Implementation Support:(Cost $1.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions There has been progress in some Project activities and the project development objective remains achievable. The four commercial banks currently licensed by the central bank comply with capital and provisioning requirements, having corrected the deficiencies identified in the 2019 asset quality review. Moreover, the aggregate non-performing loan ratio of the banking sector substantially reduced in 2022, following write-offs of impaired loans. Value Added Tax collection is performing well, following its introduction in June 2023. However, with only about one year to the end of the Project, two result indicators are still not achieved, namely: (i) the population covered by the credit registry, particularly women; and (iii) the Global Statistical Capability Index score. The Project demonstrates a satisfactory level of implementation, despite the impact of the pandemic. About 39 percent of the funds remain undisbursed, although these funds are either committed or soon to be committed. Achieving the project development objective remains subject to substantial risks. The delay in introducing the credit registry reflects the materialization of the risks that the inertia of financial institutions brings to the Project. There are also risks that delays in the production of national 12/7/2023 Page 1 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) statistics planned for 2024 may prevent the target for the Global Statistical Capacity Index from being achieved. Finally, there are risks to the sustainability of investments in information technology systems, and the public institutions benefiting from these investments need to increase the number of staff with skills in this area. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Moderate Macroeconomic Moderate High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Financial Soundness IN01361692 ►Improved capacity of BCSTP to promote financial stability as measured by the percentage of banks that corrected provisioning and capital shortfalls identified by AQR (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 80.00 Date 01-Jun-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 Banks have been implementing the BCSTP issued instructions to reclassify their loan portfolios according to the approved AQR action plan. With the removal of the license of one bank in 2022, all remaining four Comments: banks have complied with the indicator. Financial Inclusion 12/7/2023 Page 2 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) IN01361365 ►Improved Capacity of BCSTP to promote financial inclusion by expanding percentage population coverage of the Credit Registry (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.90 12.30 12.60 25.00 Date 01-Jun-2018 31-Dec-2022 31-Mar-2023 31-Dec-2024 Based on the latest Central Bank data. Baseline and historical data will be revised in the forthcoming Comments: restructuring. IN01361693 of which women (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 7.20 8.70 9.00 10.00 Public Financial Management IN01361364 ►Improved Capacity of Ministry of Finance to generate revenues as measured by Tax Revenues Collected as Percentage of GDP (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 11.50 11.50 15.50 Date 01-Jun-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 According to recent estimates, the ratio was 11.50% as of December 2022. Indicator to be revisited in the Comments: forthcoming project restructuring. Statistcs Capacity IN01361691 ►Improved Capacity of the National Statisitcs Institute to produce national statistics as measured by the Overall Statistical Capacity Score (SCI) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 63.30 55.60 55.60 68.00 Date 01-Jun-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 The SCI is expected to increase until project completion, with the update of the national accounts, the Comments: publication of statistics on education, and the 2024 census. Overall Comments PDO The tax revenue indicator is scheduled to be replaced in the forthcoming project restructuring. Intermediate Results Indicators by Components 12/7/2023 Page 3 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Financial Soundness and Access IN01361696 ►Average lag between end of a quarter and availability of banking sector information for risk based supervision (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 40.00 40.00 35.00 Date 01-Jun-2018 31-Dec-2022 30-Sep-2023 31-Dec-2024 AFAP and BCSTP are preparing the procurement for a new banking supervision system and banks still submit information via external disk. For this reason, the deadline required by regulations for banks to Comments: submit information for prudential supervision purposes remains at 40 days after the end of the quarter. IN01361698 ►Secured Transactions Law and Regulation(s) enacted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 30-Nov-2020 31-Dec-2022 31-Dec-2022 31-Dec-2024 As of December 2022, the indicator reflects the enactment of the Law on Movable Guarantees (Lei das Comments: Garantias Mobiliárias) in July 2022. The Project will support preparation of the underlying regulations. IN01361701 ►Improved operational efficiency of BCSTP through process automation of transactions and eventual elimination of manual reconciliation requirement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 30-Nov-2020 31-Dec-2022 31-Dec-2022 31-Dec-2024 As of 2022, the indicator remains at 0, given that the implementation of the new core banking system is Comments: yet to start. Strengthening Budget Credibility, Tax Base and SOE Governance IN01361695 ►Difference between projected and actual public revenues collected (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 13.40 7.90 10.00 Date 01-Jun-2018 31-Mar-2022 31-Dec-2022 31-Dec-2024 Data supplied by the Budget Department Comments: IN01361697 ►Difference between projected and actual public expenditures (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/7/2023 Page 4 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Value 20.00 16.61 18.00 10.00 Date 01-Jun-2018 31-Mar-2022 31-Dec-2022 31-Dec-2024 Data supplied by the Budget Department Comments: IN01361700 ►Tax Revenue Contributors Registered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,350.00 3,000.00 Date 01-Jun-2018 29-Apr-2022 27-Oct-2023 31-Dec-2024 Once the VAT is rolled out, the contributors would be registered Comments: IN01361703 ►Public procurement practitioners trained in the new framework (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 45.00 40.00 Date 01-Jan-2018 31-Dec-2022 30-Sep-2023 31-Dec-2024 In October 2019, 6 staff from COSSIL concluded successfully their post-graduate degree (3 women and 3 men). Since then, COSSIL staff provided training to several staff of procuring entities in both islands of Sao Comments: Tome and Principe. This does not count as training in the new framework, but is a good step towards capacity building and preparation to the new framework as it allowed to get inputs for the upcoming revision of the procurement framework. IN01361706 of which women (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 25.00 IN01361708 ►All fully owned SOEs have a functional Board (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 01-Jan-2018 30-Sep-2022 30-Sep-2022 31-Dec-2024 A decree has suspended all Boards of SOEs. However, the project has supported the recruitment of a consultant, and efforts are continuing to strengthen the corporate governance in SOEs, including the Comments: instituting of Boards of Directors. IN01361709 ►SOEs audited anually by independent institution and reports published (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/7/2023 Page 5 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Value 0.00 4.00 4.00 4.00 Date 01-Jan-2018 31-Oct-2022 31-Oct-2022 31-Dec-2024 The four SOEs that are fully owned by the government have had their 2020 financial statements audited. The full financial statements and audit reports were published on the Treasury's website Comments: (https://www.financas.gov.st/index.php/publicacoes/documentos/category/147-publicacoes). IN01361711 ►Number of certified accountants and auditors trained on new standards (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 01-Jan-2018 30-Sep-2022 30-Sep-2022 31-Dec-2024 OTOCA is in the process of preparing the new standards and therefore no training has been provided yet on new standards, although 191 accountants and auditors have received relevant information about Comments: improvements to be made in the accounting system in the country. Property Registration and Statistical Development IN01361694 ►Number of Real Estate and Vehicle Registries in the new Information System "Sistema Integrado de Registo de Propriedade - SIRP" (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 87,003.00 77,698.00 133,151.00 Date 01-Jan-2018 30-Sep-2022 30-Sep-2023 31-Dec-2024 All registries are estimated to have about 200,000 registries (162,000 property registries and 38,000 vehicle registries). The Project is targeting the digitalization of at least 65% of these records and Comments: their cataloging is ongoing. IN01361699 Real Estate Registries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 87,003.00 60,608.00 113,000.00 Date 01-Jan-2018 30-Sep-2022 30-Sep-2023 31-Dec-2024 IN01361702 Of which are women registered (Percentage) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 22.00 35.00 Date 01-Jan-2018 30-Sep-2022 30-Sep-2023 31-Dec-2024 IN01361704 Vehicle Registries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 12/7/2023 Page 6 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Value 0.00 0.00 17,090.00 20,151.00 Date 01-Jan-2018 30-Sep-2022 30-Sep-2023 31-Dec-2024 IN01361705 ►Number of new household surveys/census micro-datasets available (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 01-Jan-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 This update reflects the publication of the Enterprise Census. Microdata for the census cannot be published in order to protect privacy and confidentiality. Instead, INE published detailed tabulations as is Comments: standard practice in such cases. IN01361707 ►Number of participants in short term statistics/demography training for whom scholarships may be awarded (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 78.00 78.00 25.00 Date 01-Jan-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 The indicator on number of women for whom a scholarship was awarded was changed from 4 to 6 to Comments: correct a previous mistake and does not reflect new training activities. IN01361710 of which women participants (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.00 36.00 5.00 IN01361712 For whom a scholarship is awarded (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 5.00 Date 01-Jan-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 IN01361713 For whom a scholarship is awarded (women) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 2.00 Date 01-Jan-2018 31-Dec-2022 31-Dec-2022 31-Dec-2024 IN01361714 ►Percentage of inquiries addressed in 15 working days from the public feedback mechanism established at the Ministry of Justice for the new property registry system (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/7/2023 Page 7 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Value 0.00 73.00 73.00 60.00 Date 01-Jan-2021 31-Oct-2022 31-Oct-2022 31-Dec-2024 The citizen information website http://dgrn.gov.st/ where citizens can make inquiries is already operational Comments: and consultations via Facebook have started. Overall Comments IR This results framework is yet to reflect some aspects of the proposed restructuring expected to take place in December. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P162129 IDA-D3080 Effective USD 12.00 12.00 0.00 7.95 3.34 70% P162129 IDA-D8180 Effective USD 7.00 7.00 0.00 3.11 3.61 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162129 IDA-D3080 Effective 18-May-2018 12-Jun-2018 28-Aug-2018 30-Jun-2023 31-Dec-2024 P162129 IDA-D8180 Effective 28-May-2021 08-Jun-2021 08-Jun-2021 31-Dec-2024 31-Dec-2024 Cumulative Disbursements 12/7/2023 Page 8 of 9 The World Bank Implementation Status & Results Report Sao Tome and Principe: Institutional Capacity Building Project (P162129) Restructuring History There has been no restructuring to date. 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