The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) AFRICA WEST | Gambia, The | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 2 | ARCHIVED on 16-Jun-2021 | ISR46062 | Implementing Agencies: THE GAMBIA, Department of Public and Private Partnership and Public Enterprises - DPPP&PE Key Dates Key Project Dates Bank Approval Date: 04-Jun-2020 Effectiveness Date: 28-Jul-2020 Planned Mid Term Review Date: 15-Feb-2023 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2025 Revised Closing Date: 30-Jun-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to increase fiscal space and improve effectiveness of public resources management. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Strengthening Revenue Collection and Public Procurement Processes:(Cost $17.00 M) Component 2: Supporting Fiscal Management of State-Owned Enterprises (“SOEs”) and Restructuring Plans of Telecom SOEs:(Cost $15.00 M) Component 3: Project Implementation Support and Reform Coordination:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating High Moderate Implementation Status and Key Decisions The Gambia Fiscal Management Development Project became effective on July 28, 2020. The five-year project is financed through a US$35 million International Development Association (IDA) Grant. The Project Development Objective is to increase fiscal space and improve the effectiveness of public resources management. This will be achieved by: (a) enhancing the Gambia Revenue Authority’s (GRA) compliance management, revenue risk analysis, and enforcement capacity, for broadening the tax base and improving voluntary compliance; (b) introducing electronic Government Procurement (e-GP); and (c) improving financial and operational performance of State-Owned Enterprises (SOEs) and reducing the telecom-related fiscal burden. The project responds to a context in which SOE's fiscal burden is unsustainable for public finance, and in which a significant tax potential gap (5-7 percent of GDP) constrains revenue collection. The Fiscal Management Development Project (FMDP) is aligned with the strategic objectives of the Government’s National Development Plan (NDP) and the World Bank Group Country Engagement Note for the Republic of The Gambia for FY18- FY21 (CEN n° IDA/R 2018-0139). 6/16/2021 Page 1 of 7 The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) Progress towards the achievement of the PDO and overall Implementation Progress are Moderately Satisfactory. After the declaration of the Project's effectiveness on July 28, 2020, the procurement processes of key capacity building and technical assistance contracts have been launched. All Project Implementing Unit staffing recruitment is completed with the award of the contract to fill the Project Manager position in March 2021. In addition, on March 9, 2021, the Ministerial Cabinet approved the establishment of a Tax Policy Unit which paves the way for the strengthening of the capacity of the Unit. The GRA business review and the technical assistance for e-GP readiness review contracts have also been awarded. The disbursement rate has increased from 4.6 percent (September 2020) to close to 9 percent (May 2021). Nonetheless, critical reforms embedded in the SOE Bill and the restructuring of the Telecom SOE sector have been significantly delayed. The Government counterpart and project team are monitoring these two reforms' actions to accelerate the implementation momentum. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High Substantial Macroeconomic High High Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Moderate Institutional Capacity for Implementation and Substantial Substantial Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Substantial Moderate Other -- -- -- Overall High High Moderate Results PDO Indicators by Objectives / Outcomes Increased Fiscal Space IN00972399 ►Value Added Tax (VAT) Gross compliance ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 26.00 26.00 26.00 40.00 Date 29-Nov-2019 18-Sep-2020 31-Dec-2020 31-Mar-2025 Comments: Domestic gross VAT collection over final consumption net of imports 6/16/2021 Page 2 of 7 The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) Improved effectiveness of public resources management IN00972400 ►Aggregate annual SOEs report prepared and published by the centralized oversight agency (SOE Commission) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Nov-2019 18-Sep-2020 31-Dec-2020 31-Dec-2024 Effectiveness of the government oversight function evidenced by the annual publication of an aggregate Comments: SOE report assessing SOE activities, operational and financial performance and fiscal risk reporting. IN00972511 ►Share of competitive biddings for procuring organizations using electronic Government Procurement (e-GP) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 0.00 50.00 Date 31-Jan-2020 18-Sep-2020 31-Dec-2020 30-Jun-2025 Comments: Increase of competitive biddings in pilot procuring organizations using e-GP Overall Comments PDO No progress to record at PDO indicators level. The activities and inputs that will lead to progress on PDO indicators are delayed (establishment of SOE Centralized oversight agency) or just initiated after concluding the procurement process (e-GP and Tax) Intermediate Results Indicators by Components Component 1: Strengthening revenue collection and public procurement processes IN00972512 ►Adoption of a tax expenditure policy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2019 18-Sep-2020 31-Dec-2020 30-Jun-2025 Comments: Adoption of Tax Expenditure Policy covering both direct and indirect taxes IN00972514 ►Share of active large taxpayers paying VAT on time (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 48.00 48.00 48.00 90.00 6/16/2021 Page 3 of 7 The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) Date 29-Nov-2019 18-Sep-2020 18-Sep-2020 30-Jun-2025 Comments: Share of active large taxpayers paying VAT on time IN00972516 ►GRA operational staff are qualified and deployed for field audits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 6.00 6.00 15.00 Date 29-Nov-2019 18-Sep-2020 18-Sep-2020 31-Dec-2024 Comments: Increased audit efficiency by deploying adequate qualified operational staff for field audits IN00972518 ►Electronic and Mobile Services for Large and Medium Taxpayers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 29-Nov-2019 18-Sep-2020 31-Dec-2020 30-May-2025 Comments: Electronic Filling Rate (CIT, PIT, PAYE and VAT) for Large and Medium Taxpayers IN00972519 ►Rolling out e-GP in pilot ministries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Jan-2020 18-Sep-2020 31-Dec-2020 30-Jun-2025 Comments: Rolling out electronic Government Procurement in pilot ministries IN00972521 ►Certified procurement professionals in the procuring organizations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 31-Jan-2020 18-Sep-2020 31-Dec-2020 30-Jun-2025 Comments: Certified procurement professionals performing procurement tasks in the procuring organizations IN00972523 Certified women procurement professionals in the procuring organizations (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 31-Jan-2020 18-Sep-2020 31-Dec-2020 30-Jun-2025 6/16/2021 Page 4 of 7 The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) Component 2 Supporting Fiscal Management of SOEs and Restructuring Plans of Telecom SOEs IN00972513 ►Comprehensive SOE Bill including adequate institutional framework (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Current legal and institutional framework is SOE Act adopted with characterized by a level Value no no implementing of confusion and a regulations fragmented oversight function Date 31-Jul-2019 18-Sep-2020 31-Dec-2020 30-Dec-2022 A comprehensive SOE Bill approved by the Cabinet. The Act should clearly outline (i) an applicable legal regime that clearly defines roles of various corporate bodies (shareholders, board, management); (ii) Comments: definition of an ownership policy; (iii) a delineation of roles and lack of political interference in the day-to- day management of SOEs; (iv) a clear control and disclosure framework IN00972515 ►Performance contracts signed with the main corporatized State-Owned Enterprises (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Jul-2019 18-Sep-2020 31-Dec-2020 31-Jul-2024 As measured by performance contracts signed between the government and the Board of SOEs of Comments: corporatized State-Owned Enterprises (SOEs) that operate in important parts of the Gambian economy, including telecommunications and energy, water and services IN00972517 ►Performance audit reports of SOE prepared by the National Audit Office and discussed with the Public Enterprises Committee of the National Assembly and published on the website of the MoICI (DLR2) (Number, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 Date 29-Nov-2019 18-Sep-2020 31-Dec-2020 31-Dec-2024 Performance audits of SOEs conducted by the National Audit Office and submitted to the Public Comments: Enterprises Committee and disclosed to the public after endorsement by the National Assembly IN00972520 ►4G Penetration rate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 3.00 3.00 18.00 Date 31-Dec-2019 18-Sep-2020 18-Sep-2020 31-Dec-2024 Comments: Increase access to quality mobile broadband through 4G penetration rate IN00972522 ►A centralized oversight agency (SOE Commission), has been established and operationalized with required staffing to monitor financial and operational performance of the SOEs in its portfolio (DLR.1) (Yes/No, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 6/16/2021 Page 5 of 7 The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) Value No No No Yes Date 29-Nov-2019 18-Sep-2020 31-Dec-2020 31-Dec-2024 The operationalization of an active and informed Centralized SOE Oversight Agency, including its ability to Comments: independently analyze fiscal risk and assess SOE activities, operational and financial performance Overall Comments IR No progress to record on the IRIs. After the project effectiveness (July 28,2021), inputs and activities to drive progress on the result indicators have been initiated and progress on the indicators will be recorded after these activities implementation. Performance-Based Conditions IN00972524 ►PBC 1 A centralized oversight agency (SOE Commission), has been established and operationalized with required staffing to monitor financial and operational performance of the SOEs in its portfolio (DLR.1) (Yes/No, Intermediate Outcome, 4,000,000.00, 33%) Baseline Actual (Previous) Actual (Current) Fiscal Year 2023 Value No No No -- Date -- 18-Sep-2020 31-Dec-2020 -- IN00972525 ►PBC 2 Performance audit reports of SOE prepared by the National Audit Office and discussed with the Public Enterprises Committee of the National Assembly and published on the website of the MoICI (DLR2) (Number, Intermediate Outcome, 2,000,000.00, 16%) Baseline Actual (Previous) Actual (Current) Fiscal Year 2023 Value 0.00 0.00 0.00 -- Date -- 18-Sep-2020 31-Dec-2020 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P166695 IDA-D6190 Effective USD 35.00 35.00 0.00 3.16 33.43 8.6% Key Dates (by loan) 6/16/2021 Page 6 of 7 The World Bank Implementation Status & Results Report GAMBIA FISCAL MANAGEMENT DEVELOPMENT PROJECT (P166695) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P166695 IDA-D6190 Effective 04-Jun-2020 22-Jun-2020 28-Jul-2020 30-Jun-2025 30-Jun-2025 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/16/2021 Page 7 of 7