The World Bank Report No: ISR9787 Implementation Status & Results Comoros Economic Governance Technical (P102376) Public Disclosure Copy Operation Name: Economic Governance Technical (P102376) Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 17-Mar-2013 Country: Comoros Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 31-Jan-2011 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 30-Apr-2012 Last Archived ISR Date 31-Jul-2012 Effectiveness Date 28-Feb-2011 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 26-Mar-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Economic Governance TA Project is intended to support the government#s ongoing program of institutional building, particularly by strengthening state capacity, accountability and governance. Specifically, the project will contribute towards improving public financial management and public administration. The operation will also be instrumental in helping the authorities maintain a good track record under the ECF-supported IMF program, and in fulfilling key #triggers# towards reaching completion point under the enhanced HIPC initiative. It will also help implement major policy reforms targeted by the complementary DPO. Both operations have beenconceived, along with the ISN, as an integrated package. While the DPO provides visibility and high-level government focus to the reform program in the areas of public administration and public financial management, the proposed TA project will support on-the-ground implementation through technical assistance, learning and equipment. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Rationalizing the Public Financial Management ( PFM) institutional framework and 0.80 processes. Public Disclosure Copy Component 2: Supporting civil services reforms, including wage bill management 0.17 Demand-driven facility 0.13 Project Management 0.27 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Page 1 of 5 The World Bank Report No: ISR9787 Implementation Status Overview The development objectives of the project are on track to be achieved if the momentum is sustained and the funding gap is addressed. The October 2012 and February 2013 supervision missions highlighted significant progress in the implementation of the activities, including the public financial management legal and institutional framework, the integrated financial management information system (IFMIS), and the civil service reforms. In a relatively short period of time, the project has supported the implementation of the following key Public Disclosure Copy activities: (i) the adoption of a new FM bill and related regulations, (i) the appointment of the accountant general of the Union; (iii) the development of the IFMIS master plan and the setting up of the steering committee; and (iv) the development of organic frameworks. The key remaining challenges include the funding gap of the IFMIS and the implementation of the organic frameworks in the Union and Islands. During the mission, the Bank has agreed to prepare an additional financing to fund the budget and accounting software while the African Development Bank will finance the information technology equipment and upgrade of the buildings. In addition, an action plan to implement the organic frameworks in the Union and the Islands has been agreed with Authorities. This action plan includes the appointment of the Board members of the Public Service authority of the Union and the Islands (HAFOP); the update of the organic frameworks in the Union to comply with the operational manual; (iii) the immediate implementation of the organic frameworks in the Islands; (iv) the update of the civil service software (GISE) to incorporate the changes of the organic frameworks. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target The composition of budget expenditure Percentage Value deviates from the original budget by less than Date 31-Dec-2007 08-Feb-2013 31-Dec-2013 5% (PEFA PI-2) Comments Sectoral classification could Sectoral Classification is Indicator P-12 is rated at "D+" not be made in the 2007 possible. PEFA study as the Indicator P-12 information was not available rated at " D" for Islands- Indicator P-12 was rated at "D" Budget execution reports published (on the Text Value web or national media) regularly Date 22-Nov-2010 08-Feb-2013 31-Dec-2013 Comments Budget execution reports are Production of quarterly budget The comprehensiveness of produced quarterly but with execution reports the reports is improved to Public Disclosure Copy only summary information and include social sectors and/or limited distribution priority sectors The share of civil servants paid through the Percentage Value 0.90 1.00 0.90 automated payroll system is above 90% Date 22-Nov-2010 28-Sep-2012 31-Dec-2013 Comments Payrolls are established Payment of all civil servants, The share of civil servants largely on manual basis with except the army is done paid through the automated limited automated control through the payroll system payroll system is above 90% mechanisms (GISE). Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR9787 Indicator Name Core Unit of Measure Baseline Current End Target A new Organic Law for PFM prepared for Text Value adoption Date 29-Feb-2012 31-Mar-2012 31-Dec-2013 Public Disclosure Copy Comments Existing texts (Organic Law The PFM Act has been Law submitted for adoption to on Law of Finance, Decree adopted by the Parliament in the Parliarment public accounting, August 2012. Other related Classification, Chart of regulations (treasury decree, accounts) take no account of etc.) have also been adopted. Comoros' unique constitutional evolution Annual budget prepared in timely manner Text Value Belated budget approval by A budget circular has been Budget preparation calendar (PEFA PI-11) Sub Type the legislature or similarly issued in July 2012. However, is respected (FY13)- Indicator mandated body. Lack of the budget department did not P-I-11 is rated at "C" Supplemental active participatory comply with the timetable. involvement of federal and island administrations in the preparation of budget submissions - Indicator P-I-11 was rated at "D+" Limited use of budgetary adjustements during Text Value Budgetary adjustments are Indicator PI-16 is rated C the FY (PEFA PI-16) Sub Type relatively frequent during th year reflecting a poor Supplemental anticipation of cash flows and inefficient tracking of expenditures during the year- Indicator PI-16 is rated "D" Enhanced computerization of budget Text Value PFM information systems are The technical and functional Selection and roll out of Public Disclosure Copy management and reporting (Indicator PI-24) Sub Type rudimentary. Indicator PI-24 is specifications of the IFMIS accounting module of the rated "D" are being developped. applied software publication Supplemental of a monthly four phase statement by entities and consolidated, consistent with approved budget 45 days after FY period end; Production of the Closed accounts (compte general administration Finances); indicator PI-24 is rated "C" Page 3 of 5 The World Bank Report No: ISR9787 Public Disclosure Copy Data on Financial Performance (as of 25-Feb-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P102376 IDA-H6460 Effective 31-Jan-2011 23-Feb-2011 28-Feb-2011 31-Dec-2013 31-Dec-2013 P102376 IDA-Q5610 Closed 21-Feb-2007 12-Apr-2007 19-Apr-2007 31-Oct-2007 28-Feb-2011 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102376 IDA-H6460 Effective XDR 1.20 1.20 0.00 0.85 0.35 71.00 P102376 IDA-Q5610 Closed USD 0.33 0.00 0.33 0.00 0.00 0.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The development objectives of the project are on track to be achieved if the momentum is sustained and the funding gap is addressed. The bank's supervision missions in October 2012 and February 2013 highlighted significant progress in the implementation of the activities, including the update of the public financial management legal and institutional framework, the development of an integrated financial management information system (IFMIS), and the implementation of civil service reforms. In a relatively short period of time, the project has supported the implementation of the following key activities: (i) the adoption of a new PFM bill and related regulations, (i) the appointment of the accountant general of Page 4 of 5 The World Bank Report No: ISR9787 the Union; (iii) the development of the IFMIS master plan and the setting up of the steering committee; and (iv) the development of organic frameworks. The key remaining challenges include (i) the timely preparation of the budget ; (ii) the funding gap of the IFMIS; and (iii) the implementation of the organic frameworks in the Union and Islands. During the mission, the Bank has agreed to prepare an additional financing to fund the budget and accounting software while the African Development Bank will finance the information technology equipment and upgrade of the buildings. In addition, an action plan to implement the organic frameworks in the Union and the Islands has been agreed with Authorities. Public Disclosure Copy This action plan includes the appointment of the Board members of the Public Service authority of the Union and the Islands (HAFOP); the update of the organic frameworks in the Union to comply with the operational manual; (iii) the immediate implementation of the organic frameworks in the Islands; (iv) the update of the civil service software (GISE) to incorporate the changes of the organic frameworks. Restructuring History There has been no restructuring to date. Related Projects P144049-Economic Governance TA Project (AF), P144381-Economic Governance Technical Assistance - AF Public Disclosure Copy Page 5 of 5