The World Bank Report No: ISR6275 Implementation Status & Results Mongolia Governance Assistance Project (P098426) Public Disclosure Copy Operation Name: Governance Assistance Project (P098426) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 09-Mar-2011 Country: Mongolia Approval FY: 2006 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 23-May-2006 Original Closing Date 15-Jan-2012 Planned Mid Term Review Date Last Archived ISR Date 09-Mar-2011 Effectiveness Date 21-Jul-2006 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 11-May-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) To assist the government in (i) improving the efficiency and effectiveness of governance processes in the management of public finances, (ii) promoting transparency and accountability in the performance of public sector functions, and (iii) fostering the investment climate in Mongolia. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost A. Management of Public Finance 4.11 B. Fostering Public Accountability and Monitoring 1.69 C. Investment Climate 7.88 D. Project Coordination and Evaluation 0.95 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The Governance Assistance Project is a multi-component project that has been under implementation since 2007. The major achievements of the project to date are: -- The development of the Computerized Mining Cadastre System (CMCS) which, coupled with relevant training and organizational changes, improved the quality and speed of the license processing, reducing discretionary actions within the cadastre office and eliminating overlaps with other licenses and protected areas. Page 1 of 7 The World Bank Report No: ISR6275 -- The rollout of the government's treasury system the Government Financial Management Information System (GFMIS), to 325/333 soums by the end of 2011, exceeding the original target of 50 soums. The project financed the first 50 soums, with the rest financed by the state budget, underlining government commitment and the sustainability of the GFMIS. The GFMIS has significantly improved payment processing and budget execution. -- Technical assistance to the Independent Agency Against Corruption (IAAC) in developing its Asset and Income Declaration System, including a web-based portal; in anti- Public Disclosure Copy corruption public awareness campaigns; and in launching the bi-annual Mongolian Corruption Index to measure progress on anti-corruption, based on household and enterprise perception surveys, as well as agency risk assessments. The baseline survey was completed in December 2009. The follow-up survey, financed by the government, was conducted in December 2011, with results expected in May 2012. -- Tax administration reforms, including the introduction of a regular strategic planning process, introducing risk management procedures, improving taxpayer services and information, and strengthening transparency and integrity. -- Capacity building of the Procurement Policy Department (PPD) of the Ministry of Finance, in particular on procurement monitoring. Continued support for public procurement reform and the development of an integrated tax administration information system (TAIS) are the two main remaining activities in the project. The Government made major changes to the Procurement Law in June 2011 which includes the establishment of a central procurement agency and a procurement inspectorate in the MoF; decentralization of procurements from the local budget to local governments; the introduction of framework agreements; support to e-government; and a new role for civil society organizations in bid evaluation and ex post monitoring of contracts. GAP will be used to help implement these provisions in the law. TAIS is currently under implementation, although some delays are anticipated. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved efficiency and effectiveness of Text Value There is no formal Strategy New Medium Term Debt A Public Debt Strategy (PDS) management of public finance framework as for Debt Management in place Strategy (2012-14) being is developed; adopted and evidenced by more efficient monitoring of the and no comprehensive prepared used as a critical tool for debt situation based on the adoption of the monitoring of debt situation. Govt. to make sound fiscal debt strategy. policy decision. A comprehensivemonitoring of the debt mgt to ensure sustainability. Public Disclosure Copy Date 01-Jul-2006 01-Mar-2012 31-Dec-2013 Comments World Bank providing End target will be the effective technical assistance outside implementation of the Debt of this project management strategy (2012-2014) Improved public accountability as evidenced Text Value The perception of corruption Mongolia Corruption Index MCI target of 0.8 (2013) by:(i) reduced perception of corruption and (ii) is on the rise in Mongolia, as Baseline (2009): 0.64 an effective conflict of interest framework that reflected in various studies complies with UNCAC. and surveys (e.g. investment MCI (2011): Results expected climate assessment (ICA), in May 2012 Page 2 of 7 The World Bank Report No: ISR6275 USAID corruption report, WBI indicators). Date 01-Jan-2006 01-Mar-2012 31-May-2014 Public Disclosure Copy Comments The IAAC developed the Second survey conducted in Reduced perception of Mongolian Corruption Index in 2011. Publication of survey corruption as measured by 2009, based on quantitative results available in May 2012. increase in the Mongolia (perception surveys) and Corruption Index qualitative indicators tomonitor corruption. MCI is authorized in the Anti- corruption law and measured every 2 years. MCI is on scale of 0-1, with higher number reflecting lower corruption Improved IC as evidenced by:(i)reduced Text Value (i) ICA and (ii) Currently, Proportion of business (i) Future ICAs show a proportion of firms perceiving corruption as a GDNT audits ALL taxpayers taxpayers perceiving reduction in proportion of major obstacle to investment and (ii)reduced on a 2-3 year cycle, leading to corruption as a major obstacle firms perceiving corruption as cost of compliance for business taxpayers about 10,700 annual audits to investment increased by an obstacle to investment and [among pilot group] from a pool of 26,400 6.66 points in 2011 to (ii) reduction of audits to taxpayers (or 41%). compare with 2008. However lessthan 25% a proportion of taxpayers perceiving “e-tax filing saves paper work and user friendly� is increased by 18 percents. A percentage of businesses audited declined by 9.9% in Khan-Uul district tax office and reached to 15% while in LTU this figureincreased by 14.6% and reached to 50.3%. Date 01-Jan-2005 01-Mar-2012 31-Dec-2013 Comments Limited progress Public Disclosure Copy Intermediate Results Indicators Page 3 of 7 The World Bank Report No: ISR6275 Indicator Name Core Unit of Measure Baseline Current End Target Improvement in Public Access to Key Fiscal Text Value Open Budget Index score of OBI 60 (2010) OBI target of 70 for 2012 Information (PEFA PI-10). 18 in 2006 survey Public Disclosure Copy Date 01-Jan-2006 22-Feb-2011 31-Oct-2013 Comments The International Budget In a short period of time, This target would place Partnership#s Open Budget Mongolia has gone from Mongolia in group of countries Survey (OBI) assesses the being a country that provided that provides "significant availability and the scant budget information to information". comprehensiveness of budget one that provides much more documents in each country comprehensive information. based on expert opinion. Its score fell just short of placing it in the #significant information# category, outperforming high-income countries like Italy and Portugal. GFMIS rollout and better control over budget Text Value 0 Soums connected Achieved: 325 soums Target Achieved. execution. connected Date 01-Jan-2006 01-Mar-2012 31-Dec-2013 Comments Government funds connecting remaining soums Functional system of income and asset Text Value No incomes and assets Good progress: 99.7% Detailed assets and income declaration and disclosure. disclosed compliance rate in the declarations continue to be submission of assets and published. Improved analysis income declarations. Asset of IAD through functional and Income Declaration Asset and Income Declaration Information System Information System developed and accepted by IAAC in October 2011. Date 30-Jun-2006 01-Mar-2012 31-Dec-2013 Comments sset and Income Declaration A Information System under Public Disclosure Copy development which should improve analysis. LSMS data readily available to the Public. Text Value LSMS data is accessible in ACHIEVED. HSES conducted Target achieved theory but access is difficult in annually. Dynamic database practice and not advertised. on LSMS created. LSMS raw data disseminated to public by online and paper basedregimes. Page 4 of 7 The World Bank Report No: ISR6275 Date 30-Jun-2006 01-Mar-2012 31-Dec-2013 Comments Improved and expanded disclosure of key Text Value GDNT publishes taxpayer All information for taxpayers GDNT publishes and Public Disclosure Copy GDNT data. assistance information and which set in the list has been disseminates (i) taxpayer information about rulings, posted in the GDNT’s website assistance information; (ii) taxes and guidelines. accordingly. Customer’s customer satisfaction and (iii) satisfaction survey conducted comprehensive statement of on annual basis and the taxpayers'rights. results published on GDT’s website regularly. Date 30-Jun-2006 01-Mar-2012 31-Dec-2013 Comments Improved investment climate as evidenced by Text Value Sound legal framework. 2006 Public Procurement law of Removal of direct contracting increased use of open competition in public Procurement Law based on Mongolia amended in June claiuse from Procurement procurement. international best practice 2011. But law enforcement Law. Functional PMMIS. Weak Procurement date is October 1, 2012. By Monitoring System. this amendment direct contracting provision of 2007 law removed. Procurement Management and Monitoring Information System is completed and accepted by the MOFin 2011. Date 30-Jun-2006 01-Mar-2012 31-Dec-2013 Comments On track Effective debt recording system developed Text Value No comprehensive monitoring Upgrading DMFAS from DMFAS upgrade completed of debt situation Version 5.2 to 5.3 completed in 2008. Upgrading to version 6.0 just started. Expected date of completion is September 2012. Date 01-Jan-2006 01-Mar-2012 31-Dec-2013 Public Disclosure Copy Comments On track Efficient operation of the Mining Registry and Text Value No computerized cadastre Achieved: the Computerized Increased public access to Cadastre system system; management of Mining Cadastre System the mining cadastre to further mineral licenses arbitrary and (CMCS) went on-line April 1, enhance transparency non-transparent 2010 and is now the primary tool for mining licensing and management. Date 01-Jan-2006 01-Mar-2012 31-Dec-2013 Page 5 of 7 The World Bank Report No: ISR6275 Comments This Result has been achieved Public Disclosure Copy Data on Financial Performance (as of 03-Feb-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P098426 IDA-H2220 Effective 23-May-2006 23-Jun-2006 21-Jul-2006 31-Dec-2013 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P098426 IDA-H2220 Effective XDR 9.74 9.74 0.00 8.03 1.71 82.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 16-Jul-2010 Related Projects Page 6 of 7 The World Bank Report No: ISR6275 There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 7 of 7