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: GFCAC IBRD/IDA | Program-for-Results Financing | FY 2017 | Team Leader(s): Feyifolu Adeyosola Boroffice, Saeeda Sabah Rashid Seq No: 3 | ARCHIVED on 27-Jun-2019 | ISR37889 | Created by: Feyifolu Adeyosola Boroffice on 25-Jun-2019 | Modified by: Feyifolu Adeyosola Boroffice on 25-Jun-2019 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 Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Implementation Status and Key Decisions The Kaduna State Economic Transformation Program-for-Results (PForR) was approved by the World Bank Board on June 20, 2017. The program became effective on April 26, 2019 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 60.55 158.40 28% 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 Program Action Plan 6/27/2019 Page 1 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) 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 Client Recurrent Yearly In Progress Completion Measurement 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 Client Recurrent Yearly In Progress Completion Measurement 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 Client Recurrent Yearly In Progress Completion Measurement Comments Action Description KADIPA to lead the development of the proposed North West Investment Area Agreement Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Jun-2018 In Progress Completion Measurement 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 6/27/2019 Page 2 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Oct-2017 In Progress Completion Measurement Comments Action Description Commission of a study of social impact of tax reforms, through distributive analysis (KADIRS) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2018 Not Yet Due Completion Measurement Comments 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 Client Due Date 31-Dec-2018 Not Yet Due Completion Measurement 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 Client Recurrent Yearly In Progress Completion Measurement 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 6/27/2019 Page 3 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Client Due Date 31-Dec-2017 In Progress Completion Measurement Comments Action Description Review KADGIS’ budget to ensure it is commensurate to KADGIS mandate Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement Comments Action Description Agreed amendments to Kaduna State Land Use Regulations (KADGIS) Source DLI# Responsibility Timing Timing Value Status Client Due Date 15-May-2017 Completed Completion Measurement Comments Undertake, review, and enhance the Systematic Property Registration Program Stakeholder Engagement Strategy Action Description (KADGIS) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2017 In Progress Completion Measurement Comments Action Description Implementation of a grievance redressal mechanism for the Systematic Property Registration Program (KADGIS) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2017 In Progress 6/27/2019 Page 4 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Completion Measurement Comments Action Description Prepare and regularly review Systematic Property Registration Program documentation (KADGIS) Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Jun-2018 In Progress Completion Measurement Comments 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 Client Recurrent Yearly In Progress Completion Measurement Comments Action Description Strengthening of grievance redressal system for taxpayers (KADIRS) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2017 In Progress Completion Measurement 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 Client Recurrent Yearly In Progress Completion Measurement 6/27/2019 Page 5 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) 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 Client Due Date 30-Jun-2018 In Progress Completion Measurement 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 Client Due Date 31-Dec-2018 Not Yet Due Completion Measurement 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 Client Due Date 31-Dec-2017 In Progress Completion Measurement Comments Action Description Implementation of grievance redressal mechanism (KPPA) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Mar-2018 In Progress Completion Measurement Comments 6/27/2019 Page 6 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Action Description Introduction of risk-based internal audit function outside the expenditure processing cycle (Accountant General) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2018 Not Yet Due Completion Measurement Comments Action Description Operationalization of the state anticorruption framework (for PForR lead agencies) Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Dec-2017 In Progress Completion Measurement Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High Substantial 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 Sustainability High High High Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders High High Substantial Other High High High Overall High High Substantial RiskComments Comments The Political and Governance risks of the program has been reduced from High to Substantial given that the Federal Government won re- election in February 2019, the State Governor won reelection in March and the project has now been declared effective. Other risks covers the Conflict risk which remains high given the fact that intercommunal conflicts in Kaduna State remain active and in fact have worsened in recent months. There is however a recognition that conflict risks in Kaduna State are mostly beyond the control of the program. 6/27/2019 Page 7 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Beyond the boundaries of the program the Kaduna State government and Federal government are focusing on tackling the symptoms, causes, and risk factors of the conflicts in the State. Results PDO Indicators by Objectives / Outcomes Improving the business enabling environment IN00723861 ►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 IN00723860 ►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 Comments IN00723862 ►3. Increased fiscal accountability, measured by improved government responsiveness to citizens’ feedback on fiscal performance: responsiveness is indicated by the percentage of capital projects improv (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 Comments Intermediate Results Indicators by Results Areas Improving the business enabling environment IN00723863 ►Implemented reforms supporting private sector development (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 6/27/2019 Page 8 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Date 31-Dec-2015 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00723865 ►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 IN00723867 ►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 IN00723869 ►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 Date 01-Jan-2017 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00723871 ►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 IN00723873 ►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 6/27/2019 Page 9 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments Strengthening fiscal management and accountability IN00723864 ►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 IN00723866 ►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 IN00723868 ►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 Value 25.00 25.00 25.00 100.00 Date 31-Dec-2016 07-Jun-2018 07-Jun-2018 31-Dec-2020 Comments IN00723870 ►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 IN00723872 ►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 6/27/2019 Page 10 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Comments IN00723874 ►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 IN00723875 ►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%) Baseline Actual (Previous) Actual (Current) 2020 Value 248.00 132.00 132.00 123.00 Date 31-Dec-2014 20-Dec-2018 20-Dec-2018 -- According to the 2018 Subnational Doing Business report released in October 2018 the timeline for Kaduna is: Starting a business 13 days Construction Permits 75 days Comments Registering Property 44 days Total time to register a business, obtain a construction permit and register property has reduced to 132 days. ►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 0.00 10,000.00 Date 01-Jan-2017 14-Dec-2018 14-Dec-2018 -- Unable to verify the current status due to the fact that the operation is not effective. However, according to Comments KADGIS, 17,462 CofOs have been issued since June 2017. 6/27/2019 Page 11 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) ►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 10.00 8.00 Date 01-Jan-2017 20-Dec-2018 20-Dec-2018 -- Comments Updated information not available as PForR not effective. ►DLI 4 4. Development of the legal and institutional framework for PPP (Output, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 One PPP Incomplete legal and transaction with low Value Work in progress Work in progress institutional framework E&S risks reaches commercial closure. Date 01-Jan-2017 20-Dec-2018 20-Dec-2018 -- PforR is not effective so there is lack of funding to complete the legal and institutional framework 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 confirms satisfactory Value No FRILIA No FRILIA No FRILIA implementation of FRILIA. Date 01-Jan-2017 20-Dec-2018 20-Dec-2018 -- Project not effective so there is lack of funding to complete this work. However preparations are underway. Comments ►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 20-Dec-2018 -- Unable to verify until audited financial statements published in 2019 so keeping the number from the previous Comments ISR ►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 6/27/2019 Page 12 of 13 The World Bank Implementation Status & Results Report Nigeria - Kaduna State Economic Transformation Program-for-Results (P161998) Value 6,000.00 30,000.00 30,000.00 200,000.00 Date 31-Dec-2015 20-Dec-2018 20-Dec-2018 -- No updated information as PForR not yet effective (30,000 as of June 2017) so keeping the number from the Comments previous ISR. ►DLI 8 8. Increasing capital expenditure execution rate (Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 50.00 43.00 43.00 70.00 Date 31-Dec-2016 -- -- -- Unable to verify until Kaduna releases its audited financial statements in 2019 so keeping the number from the Comments previous ISR. ►DLI 9 9. Increasing procurement effectiveness (Intermediate Outcome, 35.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Implementation of e- procurement, Low level of transparency disclosure of Value and competitiveness in Work in progress Work in progress contract awards, procurement process procurement audit in 15 main procuring MDAs. Date 31-Dec-2015 20-Dec-2018 20-Dec-2018 -- Work in progress. Comments ►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 0.00 20.00 Date 31-Dec-2016 20-Dec-2018 20-Dec-2018 -- Updated information not available as PForR not effective. Comments 6/27/2019 Page 13 of 13