The World Bank Implementation Status & Results Report
Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
AFRICA | Somalia | Governance Global Practice |
Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 7 | ARCHIVED on 15-Apr-2020 | ISR40259 |
Implementing Agencies: Federal Republic of Somalia, Ministry of Finance, Federal Republic of Somalia
Key Dates
Key Project Dates
Bank Approval Date: 25-Jun-2015 Effectiveness Date: 02-Jul-2015
Planned Mid Term Review Date: 31-Oct-2017 Actual Mid-Term Review Date: 27-Nov-2017
Original Closing Date: 30-Jun-2022 Revised Closing Date: 30-Jun-2022
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Project Development Objectives
Project Development Objective (from Project Appraisal Document)
The Development Objective of the project is to support the government to provide credible and sustainable payroll and to establish the foundation
for efficient budget execution and payment systems for the non-security sectors in FGS and eligible interim and emerging states.
Has the Project Development Objective been changed since Board Approval of the Project Objective?
Yes
Board Approved Revised Project Development Objective (If project is formally restructured)
To support the Federal Government of Somalia and Eligible Federal Member States to strengthen resource management systems, the inter-
governmental fiscal framework, and service delivery systems in health and education.
Components Table
Name
Recurrent cost finance to reform resource management sytems:(Cost $56.60 M)
Strengthen inter-governmental fiscal relations:(Cost $1.80 M)
Transfers for core government functions and foundational education and health service delivery mechanisms
in eligible FMS:(Cost $54.70 M)
Project Management and Coordination in the Federal Government and FMS:(Cost $6.90 M)
Overall Ratings
Name Previous Rating Current Rating
Progress towards achievement of PDO Satisfactory Satisfactory
Overall Implementation Progress (IP) Satisfactory Satisfactory
Overall Risk Rating High High
Implementation Status and Key Decisions
Component 1: Recurrent cost finance to reform resource management systems (US$56.6m)
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The World Bank Implementation Status & Results Report
Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
The Participation Eligibility Criteria to be applied from July 2019 onwards were revised for the first 6 months of 2020 at the Annual Review in
October 2019, to include prioritization of staffing of ministries of education and health.
Subcomponent 1.1 continues to provide a ‘baseline’ level of input-based financing of the FGS civil service wage bill.
Subcomponent 1.2 provides a continued source of financing for the Federal Government of Somalia (FGS) Capacity Injection Mechanism
(CIM) recruits (recruited through the support provided by the World Bank Capacity Injection Project (CIP)). Financing totals US$6.6 million
over the three-year additional financing period. This financing is set to decline from US$2.6 million in 2019 and 2020, to US$1.4 million in 2021.
Over the remaining project period, the FGS will, therefore, be taking responsibility for either co-financing an increasing share of the Capacity
Injection Modality (CIM) payroll or scaling back expenditure on the program. CIM recruits were on-boarded to the Somalia Financial Management
Information System (SFMIS)in the fourth quarter of 2019. US$2,475,910.66 million had been disbursed by FGS by December 31, 2019.
The FGS has made good progress on implementation of the 2019 RCRF reform benchmarks or ‘Disbursement-Linked Indicators’ (DLIs) in
2019. The FGS Ministry of Finance submitted two Verification Reports, dated October 21, 2019, and November 13, 2019 from the Office of the
Auditor General (Independent Verification Agent or “IVA”). The Bank was able to confirm achievement of six out of eight benchmarks scheduled for
2019, and associated funds reimbursement (an amount of SDR 1,025,000 for each benchmark confirmed as having been met/achieved):
Component 2: Strengthen inter-governmental fiscal relations (forums and secretariat)
Inter-governmental fiscal coordination between the FGS and FMS has improved substantially in the second half of 2019. The World Bank,
International Monetary Fund (IMF), and European Union (EU) convened a meeting of Finance Ministers in Addis Ababa in September 2019, which
included a strong joint commitment from Finance Ministers to re-invigorate regular inter-governmental fiscal forum meetings. Following on from this,
an Inter-Governmental Fiscal Federalism Committee (IGFCC) meeting together with a full Finance Ministers’ Fiscal Forum (FMFF) meeting was
held in Kampala in November 2019. This meeting approved the Inter-Governmental Fiscal Transfers Policy Paper (an RCRF reform benchmark or
“DLI”). The meeting also agreed to improve routine sharing of fiscal reports, as well to work on the development of a data sharing system between
the Ministries of Finance, which the World Bank is supporting with financing through RCRF. A follow on IGFFC / FMFF was held in Kismayo in
December 2019, which included advances on the fiscal inputs to the Constitutional drafting process, a milestone agreement that Jubaland State of
Somalia (JSS) would agree to common customs tariffs with Federal Government of Somalia (FGS) and Puntland State of Somalia (PSS) and set
out priorities for future technical assistance to Public Financial Management (PFM) at Federal Member State (FMS) level. A follow-on IGFCC/FMFF
meeting scheduled for Baidoa in early March 2020 was postponed due to emerging challenges in inter-governmental cooperation and is now on
hold as a result of the COVID-19 pandemic.
Component 3: Transfers for core government functions and foundational education and health service delivery mechanisms in eligible
FMS (US$54.7 million)
Sub-component 3.1: Financing core government functions in FMS. At the RCRF mid-Year Review (in June 2019), and again at the Annual
Review in Garowe and Mogadishu (in October 2019), timeliness of processing of Federal member States' Statement of Expenditures (SOEs) was
discussed, noting that Disbursement Cycle deadlines were not being consistently met. It was agreed to continue to explore how to better manage
SOE processing to reduce delays.
The FMS ministries of finance all underlined the importance of supporting them to access Non-Salary Recurrent Cost (NSRC) funds. The
World Bank RCRF task team, together with the PREMIS team, presented further measures on NSRC confirming that FMS receiving PREMIS
support will be able to access funds for NSRC on an advance-replenishment basis (as opposed to reimbursement). This will be set out in a revised
version of the Project Operations Manual (POM). All FMSs are expected to have a minimum of US$ 50,000 NSRC budgeted for 2020 for RCRF
financing.
Many FMSs have established an unsustainably large number of government ministries. It is not sustainable for these ministries to be so
heavily reliant on RCRF financing. It is also unlikely that domestic revenue in many states will be sufficient to fully staff and sustain such a large
number of ministries. Further, from a technical perspective, it should be possible to manage the emerging functions of the FMSs with relatively few
ministries. RCRF will in future carefully review all recruitment plans for RCRF financing prior to approval and may limit recruitment to selected
priority ministries (e.g. focusing on financial management, accountability, revenue, education and health service delivery). As a first step the
participation eligibility criteria have been revised to prioritize recruitment of senior staff of education and health ministries.
Sub-component 3.2: Financing education service delivery
The teacher salary subcomponent provides financing for teacher salaries for Benadir, Puntland, Jubbaland, Galmudug, Hirshabelle and
South West States of Somalia, with all states fully onboarded during the fourth quarter of 2019. Benadir teachers were on-boarded in 2018,
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The World Bank Implementation Status & Results Report
Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
but, as mentioned above, had not been brought on-SFMIS payroll module at time of writing. The Ministry of Education, Culture and Higher
Education (MoECHE) has undertaken Teacher proficiency testing (TPT) to set the baseline for teacher knowledge of Somali language, Islamic
Studies, Math, English and pedagogy. A total 897 public and private primary and secondary school teachers in Benadir participated in the
proficiency testing. As a next step, MoECHE has shared the final, approved draft of the report as evidence for achievement of the DLI. MoECHE
also agreed to share a TPT scale-up plan for the remaining FMS. School Supervision activities were initiated in fourth quarter of 2019. The World
Bank and MoECHE developed a simple draft approach to financial management for RCRF supported school supervision activities and incorporated
it into the POM. MoECHE in consultation with FMS DGs prepared a budget and work plan which was approved by the Bank prior to commencement
of supervision activities.
During the Annual Review meetings, MoECHE shared a draft system-strengthening proposal that includes recruitment of local financial
management and procurement consultants who will provide capacity building to the State Ministries of Education. As a next step,
MoECHE was requested to share the final draft proposal for WB review. The FY20 Education component allocations were agreed at the Annual
Review meeting. After extensive discussions, FGS and FMS education delegations agreed on resource allocations which will be incorporated into
the 2020 FGS/FMS budgets and RCRF annual work plan and budget.
Sub-component 3.3: Laying foundations for health service delivery mechanisms.
The Annual Review meeting supported the FGS and FMS Ministry of Health (MOH) teams to finalize plans for the roll out of the health
component of the RCRF Project. Specifically, the Annual Review finalized the workplans and budgets for FGS and each FMS for the year 2020.
Good progress has been made to advance the preparation of the implementation of the FHW program, but important steps remain to be completed.
The training of Master Trainers and the refresher training for FHW/S were completed by end 2019. The procurement of the Health Technical Partner
(HTP) and recruitment of key support positions in FGS and FMS MoHs are advanced.
The governments in Puntland, Benadir and Galmudug are in the process of re-activating an existing cadre of FHWs across the three
governments. The World Bank through RCRF is supporting government to take over the payment of the existing FHW/S salaries by end of the first
quarter of 2020. During the Annual Review discussions, under the leadership of the FGS MOH, an agreement on a sharing formula for additional
FHW scale up has been achieved.
Component 4: Project management and coordination in FGS and FMS.
In accordance with the revised Project Operations Manual, the RCRF Project Management Team (PMT) is required to meet quarterly and
follow a set agenda.
Risks
Systematic Operations Risk-rating Tool
Risk Category Rating at Approval Previous Rating Current Rating
Political and Governance Substantial High High
Macroeconomic High High High
Sector Strategies and Policies Substantial Moderate Moderate
Technical Design of Project or Program Substantial Substantial Substantial
Institutional Capacity for Implementation and
Substantial Substantial Substantial
Sustainability
Fiduciary High High High
Environment and Social Low Low Low
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The World Bank Implementation Status & Results Report
Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
Stakeholders Substantial Substantial Substantial
Other High High High
Overall High High High
Results
PDO Indicators by Objectives / Outcomes
Recurrent cost finance to reform resource management systems
IN00793093
►Share of civil servants' salaries financed by government (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 40.00 80.00 80.00 40.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
IN00793121
►Percentage of eligible civil servants salaries paid on time (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 8.00 67.00 67.00 22.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
Strengthen inter-governmental fiscal relations
IN00793094
►Inter-governmental transfers to eligible FMS (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 45.50 69.20 45.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
This indicator can only be fully assessed at end the end of each, starting with Year 1 or FY2019 (i.e. after
December 31st 2019) as it requires a comparison between total resources transferred to FMS in baseline
year (2018) against subsequent years (Year 1 is 2019, Year 2 is 2020, Year 3 is 2021). As an interim
Comments: assessment, for the September 2019 ISR, based on outturn at end June 2019, and assuming this
execution rate is continued throughout the second half of 2019, results in an increase from 2018 to 2019
of 45.5% in transfers to FMS.
Transfers for core Govt functions and foundational education and health service delivery mechanisms
IN00793095
►Eligible FMS/BRA conducting proficiency testing of teachers as an annual exercise establishing minimum competency level of teachers
(DLI 7) (Number, Custom)
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Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 1.00 3.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
Intermediate Results Indicators by Components
Recurrent cost finance to reform resource management systems
IN00793125
►Monthly payroll reports published on MOF website (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 4.00 5.00 12.00 12.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
IN00793129
►Strengthened payment process for operational expenditures (DLI 4) (Percent) (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
All government
payments for salaries,
transfers and capital
expenditures to be
Cash advances are Cash advances are executed as payments
Cash advances to MDAs
progressing to MDAs progressing to MDAs to Bank accounts
Value 50% of operating
with 29.7% of operating with 9.8% of operating directly to vendors,
expenditures.
expenses expenses with the exception of:
petty cash, travel
advances, security
sector and contingency
(per Appropriation Act)
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
Strengthen inter-governmental fiscal relations
IN00793124
►Inter-governmental forums held annually (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 3.00 1.00 4.00 4.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
IN00793128
►Strengthen FGS transfers to FMS (DLI6) (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
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The World Bank Implementation Status & Results Report
Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
Met. Execution rate for Met. Execution rate for
fiscal transfers to FMS fiscal transfers to FMS
2018 fiscal transfers to FGS fiscal transfers
for H1 2019 (January – for the year 2019 (Jan-
FMS budgeted at USD execution rate to FMS
June) of 104.7% of Dec) of 278% of
12m, with USD 5.4m for equal to or greater
Value budgeted level exceeds budgeted level
block transfers under than the outturn rate
execution rate for exceeds execution
Ministry of Interior and for domestic revenues
domestic revenue for H1 rate for domestic
Federal Affairs (Year 3)
at 104.6% of budgeted revenue for at 241% of
level budgeted level
Date 31-Jul-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
Transfers for core Govt functions & foundational education & health service delivery mechanisms
IN00793122
►Strengthen school supervision (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Some FMS including
Puntland have started
Some FMS including
to develop operations
Puntland have started to
Lack of a coherent and quality assurance
develop operations and
system for school manuals on Satisfactory
quality assurance
supervision, with supervision. Puntland completion of full
manuals on supervision.
Value inadequate financing to has also developed a round of supervision
Puntland has also
enable FMS education comprehensive annual activities in eligible
developed a
ministries to fulfil this costed supervision FMS
comprehensive annual
function workplan. Other states
costed supervision
are in preparatory
workplan.
stage for undertaking
supervision exercises
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
IN00793123
►Contract Management Unit established and fully staffed according to organogram (Yes/No, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value No No No Yes
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
IN00793126
►Women of child bearing age (15-59 years) and children 0-59 months referred to health facilities by Female Health Workers (Percentage,
Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 10.00
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
IN00793127
►Female Health Workers selected according to guidelines, trained, and actively providing services (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 162.00 750.00
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Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
Date 31-Dec-2018 30-Jun-2019 31-Dec-2019 30-Jun-2022
Data on Financial Performance
Disbursements (by loan)
Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed
P154875 IDA-D3780 Effective USD 60.00 60.00 0.00 33.26 25.03 55%
P154875 TF-A0534 Effective USD 51.00 51.00 0.00 51.00 0.00 100%
P154875 TF-A6971 Effective USD 35.00 35.00 0.00 35.00 0.00 100%
P154875 TF-A8244 Effective USD 2.00 2.00 0.00 0.00 2.00 0%%
Key Dates (by loan)
Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date
P154875 IDA-D3780 Effective 25-Sep-2018 31-Oct-2018 05-Feb-2019 30-Jun-2022 30-Jun-2022
P154875 TF-A0534 Effective 29-Jun-2015 29-Jun-2015 02-Jul-2015 30-Jun-2020 30-Jun-2020
P154875 TF-A6971 Effective 15-Feb-2018 12-Mar-2018 12-Mar-2018 30-Jun-2020 30-Jun-2020
P154875 TF-A8244 Effective 25-Sep-2018 31-Oct-2018 05-Feb-2019 30-Jun-2022 30-Jun-2022
Cumulative Disbursements
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Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875)
Restructuring History
Level 2 Approved on 06-Mar-2018 ,Level 2 Approved on 07-Jun-2018 ,Level 2 Approved on 29-Jun-2018
Related Project(s)
P167224-Recurrent Cost & Reform Financing Project - Additional Financing ,P173650-Somalia Recurrent Cost & Reform Financing Project -
Phase 3
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