The World Bank Report No: ISR5568 Implementation Status & Results Kyrgyz Republic Governance Technical Assistance Project (P071063) Public Disclosure Copy Operation Name: Governance Technical Assistance Project (P071063) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 24-May-2011 Country: Kyrgyz Republic Approval FY: 2003 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 15-May-2003 Original Closing Date 31-Dec-2008 Planned Mid Term Review Date 23-Feb-2009 Last Archived ISR Date 24-May-2011 Effectiveness Date 28-Aug-2003 Revised Closing Date 28-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to strengthen the Borrower#s institutional capacity to implement the measures under the Program outlined in the GSAC Program Document and to assist with the Treasury modernization. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost 1. TECHNICAL ASSISTANCE TO SUPPORT IMPLEMENTATION OF REFORMS INCLUDED IN 1.59 GSAC: (I) IMPROVE TRANSPARENCY AND STRENGTHEN 2. MODERNIZATION OF THE TREASURY 4.83 3. PROJECT MANAGEMENT 0.55 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Implementation Status Overview The Ministry of Finance (MOF) has taken a number of actions to move forward with the implementation of Treasury Management Information System and Human Resource Management Information System (TMIS/HRMIS) contract, as well as completed stage two of implementation of the contract with ALSI on installation of field hardware and network equipment, and building of infrastructure system. To facilitate the finalization of the system requirements for TMIS/HRMIS, the MOF has hired an international consultant and two national consultants to finalize the Unified Chart of Accounts. The company “International Business Systems� (in the Russian Federation) has developed detailed functional Page 1 of 7 The World Bank Report No: ISR5568 requirements for customization of the Budgeting Module, which was transferred to the software supplier, FreeBalance. The Treasury Single Account (TSA) is expected to introduce a major improvement in the management of budget execution and will enable the efficient cash management, and enhance a greater degree of transparency, etc. The MOF has revised the project management arrangements, which was approved by the Government order. The MOF management initiated a financial and IT audit of the state entity InfoSystem, which was created to support MOF system automation needs. While the financial audit has not revealed any substantial issues, the audit of information systems revealed a number of Public Disclosure Copy weaknesses relate to information security. The MoF has developed an action plan to address those issues/weaknesses and has started to implement them already. The Treasury published monthly budget execution reports on its website in a transparent manner. Successful and timely project implementation requires a more coordinated and rigorous effort of all key MOF managers. In order to strengthen the Bank’s continuous support to project implementation, the Task Team Leader (TTL) moved from the Bank’s Head Quarters (Washington, DC) to the Bishkek Country Office. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public perception re transparency, Text Value No baseline surveys Improvements in public responsiveness and integrity of public sector as conducted. The relevant FH attitudes shown through measured by annual surveys. indexes for 2004 were: surveys (0=weakest; 7=strongest): Anticorruption and Transparency -2.34; Accountability and Public Voice-1.8 Date 30-Jun-2003 04-Nov-2010 28-Dec-2012 Comments No survey was conducted under the project at the end of 2010 due to elections Improved access, reliability and timeliness of Text Value Budget reports fragmented Budget execution reports: Comprehensive summary information about budget execution, to public and not widely available. monthly, quarterly and annual budget reports made publicly officials and civil society. are published on the Central available within 6 months of Treasury website. The last budget. execution. Public Disclosure Copy available report was for October 2011. Date 30-Jun-2003 12-Dec-2011 28-Dec-2012 Comments Percentage of private firms participating in Text Value Not available Information not available 100 percent public procurement Date 30-Jun-2003 09-Feb-2011 28-Dec-2012 Page 2 of 7 The World Bank Report No: ISR5568 Indicator Name Core Unit of Measure Baseline Current End Target Comments The available MOF capacity and the legal mandate do not Public Disclosure Copy provide for collection of such information Percentage of "Main" and "Lead" civil servants Text Value Not available, as (i) the old State Personnel Department Competition process recruited on competitive basis. version of the civil service law Monitors appointment improved and most senior didn’t require mandatory decisions and maintains civil servants recruited on a competitive process for records of competitive competitive basis. recruitments, and (ii) there selections. was no monitoring of this indicator in 2004. Date 30-Jun-2003 20-Apr-2011 28-Dec-2012 Comments Generally civil service formally complies with requirement of competitive selection. Increased predictability in budget allocations Text Value Budget allocation in health for health and education and education under the MDTF is informed by the sector strategy. MOF and Government Budget Committee review sector strategies and agree allocations. Date 20-Apr-2010 Comments In 2011 Government plans implementing significant pay increases in social sectors. This may impact the ability of these sectors to implement budgets as approved. Public Disclosure Copy Intermediate Results Indicators Page 3 of 7 The World Bank Report No: ISR5568 Indicator Name Core Unit of Measure Baseline Current End Target Percentage of required declarations of high Text Value No declarations or provision All high state officials present state officials published annually. for declarations and publish declarations. Public Disclosure Copy Date 30-Jun-2003 12-Dec-2012 28-Dec-2012 Comments Currently, the government works on strengthening this process through the introduction of data verification procedure. It is expected that once the Code of Civil Service will be approved by the Parliament, the guidelines on this matter will be approved as well. Number of draft laws and regulations Text Value No draft laws discussed Most significant laws and discussed with the private sector and civil regulations discussed with society, prior to their adoption. private sector and civil society prior to adoption Date 30-Jun-2003 04-Nov-2010 28-Dec-2012 Comments After the political turmoil, the publication of legal drafts has resumed. Coverage, quality and timeliness of audit Text Value Reports of COA confined to Improved quality of audit reports of Chamber of Accounts (CoA). compliance with regulations reports, including particularly on the annual budget. Date 30-Jun-2003 04-Nov-2010 28-Dec-2012 Comments Results of the recent CoA Audit reports were widely discussed in the mass media. The reports are mostly related to legality, not effectiveness or efficiency of the use of Public Disclosure Copy public funds. Increased usefulness of the budget as a Text Value Budget poorly presented. Medium-term framework was Transparent budget prepared strategic policy instrument, as a result of Allocations managed on a prepared in April and is on basis of medium term improvements in its formulation process, monthly basis according to expected to form a basis for framework. Revisions to content and presentation. cash availability. annual budget of 2012. budget take place through due process and not on basis of cash available to Treasury Date 30-Jun-2003 22-Apr-2011 28-Dec-2012 Page 4 of 7 The World Bank Report No: ISR5568 Indicator Name Core Unit of Measure Baseline Current End Target Comments The Government undertook a very challenging commitment Public Disclosure Copy of raising salaries for health and education public servants in 2011. This creates concerns over the ability of the Government to meet its commitments in case of uncertain revenue collection. Government Public Information Center (GPIC) Text Value No GPIC Center fully established and established and functioning. significant number of users from the general public. Date 30-Jun-2003 12-Dec-2011 28-Dec-2012 Comments Following the April 2010 events, the Government PIC was not operating for some time. Currently, it is fully operational. Access to legal database of the Ministry of Text Value No legal database Legal acts available from Regular use of database by Justice available to the public on line. MOJ website general public. Date 30-Jun-2003 04-Nov-2010 28-Dec-2012 Comments Web-based database available for all Internet users. Kyrgyzstandard reorganized to separate Text Value Kyrgyzstandard carries out Regulatory and enforcement regulatory and enforcement functions. both regulatory and functions fully separated. enforcement functions Date 30-Jun-2003 04-Nov-2010 28-Dec-2012 Comments No change Independent Civil Service Agency established Text Value No CSA State Personnel Service is Agency fully operational and and operational. fully operational and engaged managing recruitment, Public Disclosure Copy in automation in HRMIS. promotion and training of Civil Servants. Date 30-Jun-2003 12-Dec-2011 28-Dec-2012 Comments A new civil service development concept has been prepared by SPS to promote further development of a professional civil service, which was approved by President on June 20, 2011. Page 5 of 7 The World Bank Report No: ISR5568 Computerized Treasury System implemented. Text Value Treasury largely manual TIMS network connections New Treasury system fully system completed for 65 Regional functional. Treasury Offices and 31 line ministries and agencies. The Public Disclosure Copy MOF and the supplier are finalizing the technical requirements for TMIS customization. Date 30-Jun-2003 12-Dec-2011 28-Dec-2012 Comments MOF is hiring consultancy to develop detailed functional specifications for a budget module A detailed functional specification fora budget module was developed by IBS (A Russian Company) and was already transferred to the software supplier, FreeBalance. Data on Financial Performance (as of 07-Dec-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P071063 IDA-37570 Effective 15-May-2003 28-May-2003 28-Aug-2003 28-Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P071063 IDA-37570 Effective XDR 5.80 5.80 0.00 3.29 2.51 57.00 Public Disclosure Copy Disbursement Graph Page 6 of 7 The World Bank Report No: ISR5568 Public Disclosure Copy Key Decisions Regarding Implementation 1. The MOF and the Supplier (FreeBalance company) should work together according to the agreed plan to finalize the system requirements, customize, and install the system, and implement system pilot testing at the beginning of 2012. 2. The MOF in collaboration with the supplier shall finalize configuration of TMIS software by January 2012. 3. The MOF and Central Treasury (CT) should finalize the unified chart of accounts and arrangements for TSA operations prior to system installation, by January 2012. 4. The MOF and the SPS (State Personnel Service) should complete the drafting of legislation to enable effective functioning of TMIS/HRMIS by the March 2012. Restructuring History CD Approved on 12-May-2008, Board Approved on 28-May-2009, Level two Approved on 20-Dec-2010, Level two Approved on 14-Feb-2011 Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7