The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) Public Sector Modernisation Project (P152398) AFRICA EAST | Lesotho | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 11 | ARCHIVED on 07-Jun-2021 | ISR46617 | Implementing Agencies: Ministry of Finance, Kingdom of Lesotho, Ministry of Public Service Key Dates Key Project Dates Bank Approval Date: 24-Mar-2016 Effectiveness Date: 25-May-2016 Planned Mid Term Review Date: 30-Jun-2018 Actual Mid-Term Review Date: 04-Jun-2018 Original Closing Date: 24-May-2020 Revised Closing Date: 30-Nov-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen strategic-level planning, and to improve efficiency in the fiscal and human resource management of Selected Ministries. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Strategic Planning and Fiscal Management:(Cost $2.00 M) Component 2. Strengthening Human Resource Management:(Cost $4.94 M) Component 3. Improving Statistical Capacity:(Cost $2.00 M) Component 4. Strategic Implementation Support:(Cost $1.06 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 The Public Sector Modernisation Project (PSMP) was approved by the Board of the World Bank on March 24, 2016 and the Financing Agreement between the Ministry of Finance (MOF) and the International Development Association was signed on April 15, 2016. The project became effective on May 25, 2016 and was restructured in April 2020 to extend the closing date, at no cost, from May 2020 to November 2021. The project aims to strengthen strategic-level planning and to improve efficiency in the fiscal and human resource management of selected ministries. Direct 6/7/2021 Page 1 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) beneficiaries of this multi-sectoral operation are the Prime Minister’s Office (PMO), Ministries of Public Service, Finance, Development Planning, Health, and Education, and the Bureau of Statistics (BOS), all essential to enhance the service delivery in Lesotho. During the reporting period, the task team has provided implementation support through regular video calls with the project coordination unit and implementing agencies, and a virtual mission in April-May 2021. Several key milestones have already been achieved or are within reach, including completion of the census of civil servants and civil pensioners; significant progress toward cleaning HR/payroll data, publication of the first and second State Owned Enterprises Annual Reports; adoption of new Public Investment Management Appraisal Guidelines, and the National Strategic Development Plan II Strategic Framework. The key remaining objective is achievement of project results indicators related to strengthened human resource management, and given progress to date, the overall performance of the project and progress toward achieving the PDO at Moderately Satisfactory. Component 1 has provided capacity building support to the MOF in critical areas such as wage bill management, financial planning and macro forecasting. In addition, the pension modeling and an expenditure analysis tool (BOOST) have been developed, and a training program implemented. The National Strategic Development Plan II Strategic Framework has been published, as have two Ministry of Finance State Owned Enterprises Annual Report. Revised Public Investment Management Appraisal Guidelines have been adopted and are under implementation, as is the MODP Strategic Plan. Under Component 2, the project has supported a census of civil servants and civil pensioners led by the Ministry of Public Service, and Government is completing an exercise to ensure accurate and comprehensive HR/payroll data, as well as to strengthen establishment management. The Ministry is also in the process of implementing a new Human Resource Information Management System, which is expected to be operational by the project closing date. Under Component 3, the Bureau of Statistics (BOS) Launch the Poverty Assessment in December 2019. This marked a major milestone for the project. The BOS has revised the annual Continuous Multipurpose Survey to allow year to year tracking of key indicators. In addition, the team has produced a draft data sharing policy which is being validated with key stakeholders. The BOS continues to produce quarterly GDP estimates following receipt of technical assistance . Component 4 provides support to project implementation. Technical assistance to support the OPM to pilot a citizen feedback mechanism is underway. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies High Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High High High Sustainability Fiduciary Moderate Substantial Substantial Environment and Social Moderate Low Low Stakeholders Substantial Substantial Substantial Other -- -- -- Overall High Substantial Substantial Results PDO Indicators by Objectives / Outcomes 6/7/2021 Page 2 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) To strengthen strategic level planning IN00990506 ►New capital investment projects appraised according to PIM manual (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 77.00 0.00 75.00 Date 24-Mar-2016 20-Nov-2020 28-May-2021 30-Nov-2021  No new capital investment projects were included in the FY21/22 budget.  As per reporting by the Department Project Cycle Management, all concept notes and project Comments: proposals reviewed by the PSIC were appraised according to the revised PIM manual To improve efficiency in the fiscal management in selected ministries IN00990508 ►Credibility of budget framework (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 9.00 9.00 8.50 Date 24-Mar-2016 20-Nov-2020 31-Mar-2021 30-Nov-2021  9.5 for FY2018/19  9.0 for FY2019/2020 Comments:  Data for FY2020/21 will be available by the end of June 2021 To improve efficiency in the human resource management in selected ministries IN00990507 ►Irregular HR and payroll records corrected/removed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 35% of irregular HR 35% of irregular HR and and payroll records payroll records corrected corrected or removed or removed from the from the HRMIS. 97% HRMIS. 97% of irregular of irregular records Irregular human resource records corrected or 90% of irregular HR corrected or removed Value and payroll records not removed from the HRMIS and payroll records from the HRMIS data identified data extract, which will corrected/removed extract, which will be be imported into the imported into the replacement HRMIS and replacement HRMIS used to run payroll by and used to run payroll July 2021. by July 2021. Date 24-Mar-2016 20-Nov-2020 28-May-2021 30-Nov-2020 Indicator on track to reach end target by project close. The HR/payroll data cleaning exercise is at an advanced stage:  HR records for all public officers and civil pensioners who could not be found during the Comments: biometric census have been corrected or removed. Of the 6148 officers marked ‘not found’ during the biometric census, 3639 (59%) were subsequently enumerated by the MOPS, 1781 (29%) were terminated from the payroll, and a further 728 (12%) have had pay suspended. 6/7/2021 Page 3 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398)  Additional changes to HR data are being effected outside Resource Link in a data extract that will be migrated into the new HRMIS software solution and used to run payroll beginning with the June 2021 ‘go live.’ 97 percent of public officers and civil pensioners in the extract have valid, active unique national ID number associated with their record. Overall Comments PDO Irregular HR and payroll records corrected/removed. The project is on track to meet this PDO indicator by project close. The indicator will only be considered achieved once the HR data is uploaded into the upgraded Human Resource Management Information System. Given the (i) importance of being able to fully capture progress toward improving the accuracy, comprehensiveness and integrity of HR/payroll data in the ICR and (ii) challenges reporting clearly against this PDO indicator to date, a dedicated meeting to discuss and agree how best to report on these activities is planned. The meeting will review the baseline, ensure that we have clear definitions for each indicator, and create a template that facilitates good data collection. New capital investment projects appraised according to PIM manual. During the reporting period, no new capital investment projects were added to the budget. Intermediate Results Indicators by Components Component 1. Strategic Planning and Fiscal Management IN00990509 ►Revised Institutional Plan implemented by MDP (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Strategic Plan is Strategic Plan is Revised institutional Value N/A approved and under approved and under plan under implementation. implementation. implementation Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2020 End target achieved. Comments: IN00990515 ►Annual report on SOE fiscal impact published on MOF website (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2016/17 and 2017/18 2016/17 and 2017/18 Annual report on SOE annual report on SOE annual report on SOE No report on SOE fiscal fiscal impact published Value fiscal impact complete fiscal impact complete impact developed on MOF website and published on MOF and published on MOF regularly website. website. Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2021 End target achieved. The 2016/17 and 2017/18 annual report on SOE fiscal impact are published on MOF website Comments: (http://www.finance.gov.ls/official_documents.php?id=PSD_documents). The 2018/29 annual report is under development with plans to publish in June 2021. IN00990516 ►PIM manual updated and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/7/2021 Page 4 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) PIM manual updated and PIM manual updated PIM manual Value PIM manual not updated operational and operational operational Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2020 End target achieved. Comments: Component 2. Strengthening Human Resource Management IN00990513 ►Training on new business procedures complete for HR officers (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New HR business processes have been approved and will be Training is planned to implemented in the new take place in June HRMIS, which is 2021 as part of training Training not commenced, expected to go live in on the new Training on new as new HR business April/May 2021. Training HRMIS. Given that business procedures Value processes are not yet on new business training has not complete for 50 available. processes will take place started, therefore zero percent of HR Officers as part of training on the HR officers have been new HRMIS software. trained (of which 0% Further, change are women). management workshops for change agents will take place in February. Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2021 On track to achieve end target by project closure. Training is planned for June 2021 as part of training on the new HRMIS. Given that training has not started, therefore zero HR officers have been trained (of Comments: which 0% are women). IN00990514 Of which are women (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2021 IN00990517 ►Revised establishment lists in MOET complete (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The revised Establishment List in To date there is no the Ministry of Establishment List in the Education and Ministry of Education and Training is still No revised establishment Revised establishment Value Training. The exercise pending. In November list in MOET list in MOET complete was disrupted by 2020, MOET reported reshuffling of HR that the had been Officers. disrupted by reshuffling of HR Officers. In April 2021, 6/7/2021 Page 5 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) MOET has not been able to take further action towards updating their establishment lists citing budgetary constraints Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2021 Year 4 target not achieved. Indicator at risk of not achieving end target. Comments: IN00990518 ►Core HR business processes automated and operationalized (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Revised business processes have been approved and translated Configuration/automati HRMIS payroll module in into functional on of core HR use. HRMIS assessment specifications for the business processes in Core HR business and human resource Value HRMIS. Contract the new HRMIS is processes automated management business signature for supply and ongoing and will be and operationalized process review not yet installation of the completed by June carried out. replacement HRMIS is 2021. planned for November 9, 2020. Date 24-May-2016 20-Nov-2020 28-May-2021 24-May-2020 Year 4 target achieved. As of April 2021, project is on track to achieve end target by project Comments: closure. However, significant risks remain and strong mitigation measures are required. IN00990519 ►Civil servants and civil pensioners with accurate National ID number captured in HRMIS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 34.00 78.70 78.70 95.00 Date 24-May-2016 20-Nov-2020 28-May-2021 24-May-2020 End target is on track to be achieved by July 2021. HR data has been extracted from the HRMIS and is being cleaned by Ministry of Public Service in collaboration with line-ministries. This data will be imported in the replacement HRMIS and used to run payroll after the planned June 2021 ‘go live’ date. 97.6% of Comments: civil servants and civil pensioners have an accurate national ID number captured in the HR/payroll data extract. IN00990520 ►Staff on MOET and MOH payroll mapped to an established position in HRMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value MOET and MOH staff MOET - Mapping of staff MOET – The exercise Staff on MOET and are not mapped to to established positions to map MOET staff to MOH payroll mapped established positions. has been postponed until established positions to an established supply and installation of has been completed. position new HRMIS is Given that the revised completed. The decision MOET establishment was made to avoid list has yet to be approved, staff have 6/7/2021 Page 6 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) migrating contaminated been mapped to the data into the new system. existing MOET structures. MOH - Initial exercise to map MOH staff to MOH - Initial exercise established positions to map MOH staff to complete, and results are established positions validated under ongoing is complete, and the data cleaning exercise. results being validated under ongoing data cleaning exercise. Date 24-May-2016 20-Nov-2020 28-May-2021 24-May-2020 On track to achieve end target by project closure. Comments: Component 3. Improving Statistical Capacity IN00990510 ►Improved availability of reliable statistical data to enhance strategic level planning (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Results of first survey published. Revisions to 2020 CMS Results of first survey methodology is Survey methodology published. Revisions to Value No survey conducted complete. Survey revised and 2020 CMS methodology methodology was implemented complete. revised and implemented amid COVID-19 disruptions. Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2021 End target achieved. Comments: IN00990512 ►Quarterly time series published consistent with SDDS requirements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Quarterly GDP is Quarterly GDP current Quarterly GDP is published on the price and volume time published on the Bureau No quarterly GDP Bureau of Statistics’ series commencing Value of Statistics’ website: published website: from the start of the http://www.bos.gov.ls/Pu http://www.bos.gov.ls/ annual time series blications.htm. Publications.htm. published Date 24-May-2016 20-Nov-2020 28-May-2021 30-Nov-2021 End target achieved. Comments: Component 4. Strategic Implementation Support IN00990511 ►Citizen feedback collected in one pilot sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/7/2021 Page 7 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) The citizen feedback management tool was Preparations and logistic piloted with the for the Pilot exercise are Ministry of Health and in the final stages. Ministry of Citizen feedback Ministry of Transport and Transportation starting Value No feedback collected collected in one pilot Ministry of Health have in late November sector officially confirmed their 2020. The results of participation in the Pilot data collection are via Savingram. being analyzed by OPM and shared with MOH/MOET. Date 24-May-2016 20-Nov-2020 28-May-2021 24-May-2020 On track to achieve end target by project closure. Comments: Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152398 IDA-57720 Effective USD 10.00 10.00 0.00 9.04 1.19 88% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152398 IDA-57720 Effective 24-Mar-2016 15-Apr-2016 25-May-2016 24-May-2020 30-Nov-2021 Cumulative Disbursements 6/7/2021 Page 8 of 9 The World Bank Implementation Status & Results Report Public Sector Modernisation Project (P152398) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 31-Jul-2019 ,Level 2 Approved on 26-Mar-2020 ,Level Approved on 09-May-2020 Related Project(s) There are no related projects. 6/7/2021 Page 9 of 9