The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) AFRICA | Nigeria | Finance, Competitiveness and Innovation Global Practice | Requesting Unit: AFCW2 | Responsible Unit: EA2F2 IBRD/IDA | Program-for-Results Financing | FY 2017 | Team Leader(s): Feyifolu Adeyosola Boroffice, Rajul Awasthi Seq No: 4 | ARCHIVED on 17-Feb-2020 | ISR40127 | Created by: Magalie Pradel on 19-Dec-2019 | Modified by: Feyifolu Adeyosola Boroffice on 08-Feb-2020 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Project Development Objective is to improve the business enabling environment and strengthen fiscal management and accountability in Kaduna State. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Program is being implemented effectively. The Program Implementation manual has been completed and the Program Action plan updated. An Independent Verification report received in December 31, 2019 indicated that 7 of the 10 DLIs met their targets. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161998 IDA-60980 Effective USD 133.79 133.79 0.00 61.47 73.32 46% P161998 IDA-60990 Effective USD 216.21 216.21 0.00 115.45 103.97 53% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161998 IDA-60980 Effective 20-Jun-2017 29-Sep-2017 26-Apr-2019 31-Mar-2021 31-Mar-2021 P161998 IDA-60990 Effective 20-Jun-2017 29-Sep-2017 26-Apr-2019 31-Mar-2021 31-Mar-2021 2/17/2020 Page 1 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IDA60980-001 Simplified Business Partially 1 Regular XDR 25,540,000.00 7,330,000.04 29 % process Achieved Systematic Property Reg. Partially 2 Regular XDR 25,540,000.00 9,120,000.05 36 % Prog. Achieved Partially 3 Regular Strengthening Inv. Promo XDR 25,540,000.00 3,659,999.91 14 % Achieved 4 Regular Dev. of Leg. Frmwk - PPP XDR 20,980,000.00 Not Achieved 0.00 Loan: IDA60990-001 4 Regular Dev. of Leg. Frmwk - PPP XDR 4,560,000.00 Not Achieved 0.00 Partially 5 Regular Dev. of Frmwk FRILIA XDR 25,540,000.00 3,670,000.00 14 % Achieved Partially 6 Regular Increasing IGR outturn XDR 25,540,000.00 3,670,000.00 14 % Achieved Improvement of Tax Partially 7 Regular XDR 25,540,000.00 7,290,000.01 29 % collection Achieved Increasing Capital Partially 8 Regular XDR 25,540,000.00 10,860,000.01 43 % Expenditure Achieved Increasing Proc. Partially 9 Regular XDR 25,540,000.00 7,290,000.01 29 % effectivness Achieved Impr. Govt. Response to Partially 10 Regular XDR 25,540,000.00 10,859,999.97 43 % Fiscal Perf. Achieved Program Action Plan Action Description Review KADIPA’s budget (and outer years) to ensure it is commensurate to KADIPA’s mandate Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Supplementary budget for 2019 budget (with estimates for 2020 and 2021) reflects the adjusted budget for KADIPA Comments Development and implementation by KADIPA of a strategy based on a socio-economic assessment to maximize Action Description benefits sharing of investments Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress 2/17/2020 Page 2 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) KADIPA approval of benefits sharing strategy and annual monitoring of implementation of strategy (with adjustments Completion Measurement if necessary) Comments Development of investors’ satisfaction survey (including satisfaction with KADIPA facilitation services) and of Action Description investors’ grievance redressal mechanism by KADIPA Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion Measurement Investors’ satisfaction survey launched and investors’ grievance redress mechanism operational; annual reports Comments Action Description KADIPA to lead the development of the proposed North West Investment Area Agreement Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion Measurement NWIAA presented at the Northern Governors Forum Comments Development of a PPP legal and institutional framework that appropriately manages E&S risks: (i) PforR PIM to Action Description incorporate E&S aspects & outline risk assessment criteria for low E&S risk; (ii) PPP manual incorporates best practice E&S risk management Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems (I) PforR Implementation Manual Completion Measurement (II) PPP Manual Comments Action Description Commission of a study of social impact of tax reforms, through distributive analysis (KADIRS) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Completion of study Comments 2/17/2020 Page 3 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Undertake a Strategic Environmental and Social Assessment to support the Kaduna State Infrastructure Master Plan: Action Description (i) Outline and Terms of Reference; (ii) Strategic Environmental and Social Assessment Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems (i) Terms of Reference Completion Measurement (ii) Approved Strategic Environmental and Social Assessment Comments Publish Budget Execution Report, Annual Financial Statement and audit opinion on the Kaduna State Government Action Description and Local Governments financial statements Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement BERs available on the state’s website (within six weeks of quarter end) and AFSs (within seven months of end of FY) Comments Development and implementation of the Framework for Responsible and Inclusive Land Intensive Agricultural Action Description Investments - FRILIA (KADGIS) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems (I) Stakeholder Engagement Plan submitted (II) KADGIS (and relevant agencies) has developed in-house capacity to support the FRILIA implementation (staff trained and assigned responsibility for support to FRILIA implementation) Completion Measurement (cont. in Comments) (III) Committee established as per TOR; bi-annual reports from committee Comments (IV) Community grievance redress and conflict resolution mechanism operational Action Description Review KADGIS’ budget to ensure it is commensurate to KADGIS mandate Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress 2/17/2020 Page 4 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Supplementary budget for 2019 (if required); (with estimates for 2020 and 2021) reflecting the adjusted budget for Completion Measurement KADGIS Comments Action Description Agreed amendments to Kaduna State Land Use Regulations (KADGIS) Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous Completed Completion Measurement Revised regulations Comments Undertake, review, and enhance the Systematic Property Registration Program Stakeholder Engagement Strategy Action Description (KADGIS) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Measurement Updated Stakeholder Engagement Plan Comments Action Description Implementation of a grievance redressal mechanism for the Systematic Property Registration Program (KADGIS) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Measurement Grievance redress mechanism operational Comments Action Description Prepare and regularly review Systematic Property Registration Program documentation (KADGIS) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Approved Standard Operating Procedure manual; training manual and promotional material; updated SPRP Completion Measurement documentation (including regulatory framework) Comments 2/17/2020 Page 5 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Review KEPA budget to ensure that it allows KEPA to satisfactorily fulfill its mandate, with a focus on private Action Description investments in Kaduna State; and detailed capacity-building program outlined and budgeted Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Supplementary budget for 2019 supported by a capacity assessment program; (with estimates for 2020 and 2021) Completion Measurement reflects the adjusted budget for KEPA Comments Action Description Strengthening of grievance redressal system for taxpayers (KADIRS) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Grievance redress mechanism operational Comments Production and dissemination of statistical information, with a focus on socio-economic information (Kaduna State Action Description Bureau of Statistics) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Number of surveys completed and publicly disclosed Comments Prepare Procurement Plans for five MDAs with highest volume procurements as part of the budget preparation and Action Description approval process Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Ministry of Agriculture, Works, Education, Health, and Water Resources—procurement plans of these MDAs available Comments Action Description Adoption of fund release policy to MDAs for improved predictability of resource flows to MDAs Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress 2/17/2020 Page 6 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Completion Measurement MDAs BERs showing cumulative budget releases against appropriations Comments Action Description Capacity building on e-procurement procedures and contract management conducted annually for pilot MDAs (KPPA) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Signed attendance sheets, photographs and KADPPA reports Comments Action Description Implementation of grievance redressal mechanism (KPPA) Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Continuous In Progress Completion Measurement Grievance redress mechanism annual reports Comments Action Description Introduction of risk-based internal audit function outside the expenditure processing cycle (Accountant General) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Internal audit reports Comments Action Description Operationalization of the state anticorruption framework (for PForR lead agencies) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Appointment of anti-corruption desk officer Comments Risks 2/17/2020 Page 7 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High Substantial Moderate Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and High High Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders High Substantial Substantial Other High High High Overall High Substantial Substantial RiskComments Comments Given the continuation of the previous administration and the continuation of the implementation of the State Development Plan the political risks are deemed moderate. The Project Management office is working effectively with the government which lowers the institutional capacity risk. Results PDO Indicators by Objectives / Outcomes Improving the business enabling environment IN00789273 ►1. Simplified business processes: reduction in the time required to start a business, deal with construction permit and register property (DLI1) (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 248.00 132.00 132.00 123.00 Date 31-Dec-2014 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments Strengthening fiscal management and accountability IN00789272 ►2. Increased budget credibility: IGR outturn and capital expenditure execution rate, in percentage (DLI 6 & 8) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 42; 50 53; 43 53; 43 66; 70 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 2/17/2020 Page 8 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Comments IN00789274 ►3. Increased fiscal accountability, measured by improved government responsiveness to citizens’ feedback on fiscal performance: indicated by the percentage of capital projects improved (DLI 10) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Improved government responsiveness to citizens’ feedback on fiscal performance: percentage of capital Comments projects improved in response to citizens' feedback (DLI 10) Intermediate Results Indicators by Results Areas Improving the business enabling environment IN00789275 ►Implemented reforms supporting private sector development (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Dec-2015 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789337 ►Implementation of systematic property registration program: new Certificates of Occupancy (CofOs) issued (DLI 2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40,000.00 Date 01-Jan-2017 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789339 ►Strengthening investment promotion: Memoranda of Understanding signed between investors and KADIPA (DLI 3) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 32.00 Date 01-Jan-2017 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789341 ►Investors that reach operations stage or aftercare in Kaduna State with KADIPA facilitation (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 20.00 2/17/2020 Page 9 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Date 01-Jan-2017 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789343 ►Development of the legal and institutional framework for PPP (DLI 4) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target One PPP transaction with low E&S risks Incomplete legal and incomplete legal and incomplete legal and Value reaches commercial institutional framework institutional framework institutional framework closure Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789345 ►Development and implementation of a Framework for Responsible and Inclusive Land-Intensive Agricultural Investments (DLI 5) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target FRILIA adopted through a legal Value No FRILIA No FRILIA No FRILIA instrument and under satisfactory implementation Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments Strengthening fiscal management and accountability IN00789336 ►Improvement of tax collection: registered taxpayers (TIN) filing tax returns (DLI 7) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6,000.00 6,000.00 6,000.00 200,000.00 Date 31-Dec-2015 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789338 ►Compliance of large (over 250 employees) private and public corporate entities with Personal Income Tax Administration (PAYE) system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 70% for private; 80% for 70% for private; 80% for 70% for private; 80% for 80% for private, 90% Value public entities pubic entities pubic entities for public entities Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789340 ►Enhanced strategic planning and budgeting of public investment: MDAs whose budgeted capital expenditure are aligned with Sector Implementation Plans (SIP) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/17/2020 Page 10 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Value 25.00 25.00 25.00 100.00 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789342 ►Increased procurement effectiveness: main procuring MDAs implementing e-procurement, disclosing information on contract awards and conducting procurement audits (DLI 9) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789344 ►Timely payment of contractors by public entities: arrears of payment to contractors as percentage of appropriation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.70 1.70 1.70 0.50 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789346 ►Improving performance information on service delivery: sector programs evaluated after three years of implementation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 50.00 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00789347 ►Increased fiscal transparency of State and Local Governments (LG): disclosure of state and LG appropriations and budget execution audit reports (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Timely disclosure of LG budgets disclosed for LG Budgets disclosed in LG Budgets disclosed in state and LG budgets first time in 2016; audit 2017; audit report of LG 2017; audit report of LG Value and audit reports of report of LG budget budget execution not budget execution not state and LG budget execution not disclosed. disclosed. disclosed. execution. Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 1. Simplified business processes: reduction in the time required to start a business, deal with construction permit and register property (Outcome, 35.00, 0%) 2/17/2020 Page 11 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Baseline Actual (Previous) Actual (Current) 2020 Value 248.00 132.00 132.00 123.00 Date 31-Dec-2014 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 2 2. Implementation of systematic property registration program: number of new CofOs issued (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 0.00 12,522.00 10,000.00 Date 01-Jan-2017 14-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 3 3. Strengthening investment promotion: number of new Memoranda of Understanding signed between investors and KADIPA (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 10.00 10.00 13.00 8.00 Date 01-Jan-2017 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 4 4. Development of the legal and institutional framework for PPP (Output, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 One PPP Approved legal and Incomplete legal and transaction with low Value Work in progress institutional framework for institutional framework E&S risks reaches PPP commercial closure. Date 01-Jan-2017 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 5 5. Development and implementation of a Framework for Responsible and Inclusive Land-Intensive Agricultural Investments (FRILIA) (Output, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Social audit FRILIA principles confirms satisfactory Value No FRILIA No FRILIA approved by Kaduna State implementation of Governor FRILIA. Date 01-Jan-2017 20-Dec-2018 29-Nov-2019 -- Comments Source: Independent Verification Report from IVA(PwC). 2/17/2020 Page 12 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) ►DLI 6 6. Increasing IGR outturn (Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 42.00 53.00 53.00 66.00 Date 31-Dec-2016 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 7 7. Improvement of tax collection: increase in number of registered taxpayers (TIN) filing returns (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 6,000.00 30,000.00 103,082.00 200,000.00 Date 31-Dec-2015 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 8 8. Increasing capital expenditure execution rate (Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 50.00 43.00 29.00 70.00 Date 31-Dec-2016 -- 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments ►DLI 9 9. Increasing procurement effectiveness (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 No MDA is currently using the e-procurement portal Implementation of e- for procurement activities procurement, Low level of transparency 26 main procuring MDAs disclosure of Value and competitiveness in Work in progress were disclosing contract contract awards, procurement process awards procurement audit in Procurement audit of one 15 main procuring main procuring MDA MDAs. sighted Date 31-Dec-2015 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments 2/17/2020 Page 13 of 14 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) ►DLI 10 10. Improved government responsiveness to citizens’ feedback on fiscal performance: percentage of capital projects improved in response to citizens' feedback (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 0.00 46.00 20.00 Date 31-Dec-2016 20-Dec-2018 29-Nov-2019 -- Source: Independent Verification Report from IVA(PwC). Comments 2/17/2020 Page 14 of 14