Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) State Employment and Expenditure for Results Project (P121455) AFRICA | Nigeria | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2012 | Seq No: 15 | ARCHIVED on 23-Apr-2020 | ISR40442 | Implementing Agencies: Federal Republic of Nigeria, Federal Ministry of Budget and National Planning Key Dates Key Project Dates Bank Approval Date: 06-Mar-2012 Effectiveness Date: 30-Jul-2013 Planned Mid Term Review Date: 18-Jan-2016 Actual Mid-Term Review Date: 11-Feb-2016 Original Closing Date: 30-Jun-2017 Revised Closing Date: 30-Sep-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to enhance opportunities for employment and access to socio-economic services whileimproving the public expenditure management systems in the participating states. Achievement of the PDO will be measured by thefollowing key performance indicators: (i) Number of people employed under SEEFOR youth employment program in participating states(disaggregated by self-employed, formal employment, and gender); (ii) Number of people with access to services supported intargeted communities (disaggregated by specific services: water points, classrooms, electricity connections, improve sanitationfacilities, etc.); (iii) Percentage deviation of actual aggregate expenditure from budgeted expenditure in the participatingstates; (iv) Percentage of public contracts above threshold awarded through competitive process in each participatingstate. Project Beneficiaries The main beneficiaries of the project are the four state governments with selected ministries,departments and agencies and communities in Bayelsa, Edo, Delta and Rivers states. Specifically the direct beneficiaries ofComponent A – Youth Employment and Access to Socio-Economic services – are mainly youths who are unemployed and/or seeking to betrained in vocational and technical courses in order to find jobs or set up on their own, the technical and vocational traininginstitutions themselves and the state ministries of education and agriculture. In addition, the state agencies responsible forpublic works and waste management will be provided with technical assistance for their oversight function on the sub- component foryouth employment. The beneficiaries of the CDD sub-component are community groups and associations in the four participatingstates, including farmers, women groups and youths in the rural areas. ThePFM component will provide technical assistance tosupport reforms and capacity building in MDAs that deal with state public finance. These will include offices and staff ofMinistries of Budget and/or Economic Planning, Finance, Due Process/Public Procurement, Board of Internal Revenue and State Housesof Assembly. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Youth Employment and Access to Socio-Economic Services:(Cost $187.83 M) Component B: Public Financial Management Reforms:(Cost $57.68 M) Component C: Project Coordination and Implementation Support.:(Cost $19.54 M) 4/23/2020 Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High Substantial Implementation Status and Key Decisions Overall progress towards achievement of the Project Development Objective (PDO) is rated Satisfactory. While overall Implementation Progress has improved - it is still assessed to be Moderately Satisfactory (MS) since there has been some delay in utilization of funds and there are also some delays in meeting some key milestones for Component B. Sub-component A1 - Youth Employment through Public Works: The overall rating for this component remains Satisfactory. To-date, the project has provided employment for 67,605 youths exceeding the project end target of 33,673 by 201 percent. Also, 50 percent of beneficiaries are female, surpassing the minimum threshold (30 percent). Under this sub-component, youth are employed along two interventions/contract typologies – Road Maintenance/Reconstruction and Waste Management. Against an end of project target of 564 contracts, the project has 1,345 contracts, exceeding its target by 238 percent. During the period under review, the team engaged extensively with stakeholders on the key actions for improving project performance and regular hands on support provided by the road engineers on the SEEFOR team. As a result of these missions, there have been a number of improvements which inter alia include, states hiring more supervisors and engineers, improved training is being delivered to teams on concrete works, site diaries are being issued and checked, joint inspections by Government staff, communities and contractors are being carried out before handing over of the site and site specific technical weaknesses are being rectified. A database of 1,000 road projects has been created which will permit comparison across states and across countries. With the project coming to a close in six months time a high level conference on sustainability is planned for June 2020. This will showcase the mainstreaming of the SEEFOR template on road construction by Edo state and the building of sustainable waste management businesses pioneered by Delta State. Sub-component A2 - Technical and Vocational Training (TVET): The overall status of implementation of this sub-component has been upgraded to Satisfactory since Edo and Rivers have made major improvements since the last mission. Against an end of project target of 14,629, the project has achieved a result of 26,422 viz 181%. There has also been good progress in terms of technical and vocational courses accredited under the project. 117 courses have been accredited against an end of project target of 67. The target has been exceeded by 175%. The overall target for the number of persons trained in life planning and entrepreneurial skills has been exceeded by 162%. Of the four SEEFOR States, three have been providing Starter Packs to graduates. This is a kit to enable these persons to start small businesses and become entrepreneurs. A special review of experience on Starter Packs was carried out – in Rivers State. The finding was that the initiative has been successful overall. There was need for improved communication to the students regarding starter packs as well as some pre and post-graduation support in business development and entrepreneurship required. Sub-Component A3 - Community Driven Development (CDD): The overall rating for this component is Satisfactory, based on the progress towards achievement of the Results Framework Indicators for this Sub-component. Support is provided under the project to two major categories of CDD operations: Economic - using the FADAMA approach that focuses on provision of productive goods in rural areas; and Social - using the Community and Social Development Project (CSDP) strategy that addresses the provision of social services and natural resource management to rural and peri-urban communities. The CDD results are commendable with the number of persons with access to services supported in targeted communities at 1,852,913 against an end of project target of 453,863. Under CDD – Social, 351 community-driven projects are being implemented across beneficiary States. These CDPs are at various stages of implementation with 91 percent (320) completed, and the remaining 10 percent (30) ongoing and nearing completion. Only two projects are yet to commence. In terms of interventions under the CDD-Economic typology, of the total of 238 LDPs 184 have been completed (77 percent) with 35 (14.7 percent) on-going and nineteen (8 percent) yet to commence. These interventions are supporting 2,440 User Groups in 214 Community Associations with a total beneficiary outreach of 64,789 individuals – 51 percent of whom are women. Component B - Public Financial Management Reforms: The overall rating for this component is Moderately Satisfactory (MS) since there is a shortfall in achieving some key PDO indicators. PFM Legislation: The development of robust legal framework has been supported through reforms supported under this project. The PFM Law was enacted in Edo State in July 2018 and the Audit Law was passed in 2019. In Rivers the draft PFM Law and Audit Act have both been passed by the State House of Assembly and awaiting final approval. In Delta the State House of Assembly (SHOA) has approved the Procurement Law, Audit Law and PFM Law. The first two are also awaiting final approval, while the PFM law has been returned to the House for reconsideration. In Bayelsa all three key laws – PFM Law, Audit Law and Revenue Law have been drafted and are under review by the SHOA. Budget Reforms: While there has been significant progress across states regarding adoption of IPSAS Chart of Accounts, and production of budget manuals, significant challenges remain. Rivers is lagging in terms of MDA’s that have MTEF’s in place. The budget calendar is also not strictly adhered to in Rivers as in Bayelsa. In Delta budget deviation remains a major challenge. Of the SEEFOR States, Edo is the most advanced in terms of budget reforms with budgets being prepared online through the SIFMIS – Hyperion System with the budget calendar being largely adhered to. Accounting, expenditure control and financial reporting: There has been good progress under this component. All four States produced their FY 2018 Financial Statements on time. Cash management remains a challenge in most states. Edo is ahead of the others since it has implemented the TSA on both the revenue side and the expenditure side. Delta has implemented the TSA only on the expenditure side. Rivers and Bayelsa are 4/23/2020 Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) still to implement the TSA and have sub optimal cash management practices. Budget deviation is key PDO indicators with three of the four states (excluding Edo) exceeding the target specified. With the fiscal challenges in 2020 it is possible that the deviation figures in the current year could be worse than in the past. Internal and external audit: Edo State has passed its Internal Audit Bill into law and other States have produced their own drafts that are at various stages of approval. There is also good progress on external audit with Edo and Delta producing their Annual Audits not later than six months after the end of the FY. However Rivers and Bayelsa produced their's in around 12 months, which needs to improve. The good news is that none of the States now have a backlog regarding audit. A major area of weakness remains follow up on audit reports. PAC’s are in place in all States but only the PAC's in Edo and Delta have produced reports which are still to be considered by the SHOA. State Integrated Financial Information System (SIFMIS): There has been significant progress in 2019. Edo is operating Oracle and is able to produce its 2017 and 2018 Annual Financial Statements through the system. In 2019 it also produced quarterly budget execution statements through the system. Rivers State went live with SAP in January 2019. Network connectivity to 84 MDAs has been rolled out. All configuration has been completed and data migration is ongoing. Training of staff is progressing well, and the State is fully committed to its full operationalization. Bayelsa is also implementing Oracle has also made good progress with “Go Live” being achieved in April 2019. Migration of data has been completed and network connectivity for 47 MDA’s has been completed. Delta State is implementing SAP. It achieved its initial “Go Live” in December 2018. While commitment control is being managed through the system, due to networking not having been completed to the MDAs, the system is operating in parallel run mode. Public Procurement reforms: In procurement, all four States have passed their new Public Procurement Laws. Standard Bidding Documents are in use in Edo and Rivers. They have been developed in Delta and Bayelsa and are at the final stage of approval. Three States have complaint review mechanisms in place. A specialized Procurement Cadre has been established in Edo. Other states are in the process of doing so. There continue to be shortfalls in terms of States publishing public contract awards above a threshold that were awarded through a competitive process. None of the States has managed to achieve this in 2019. Since this a PDO target all States need to ensure that there is improvement in this area before project closure in September 2020. Reform of State Tax Authorities: Excellent progress has been achieved under this sub-component. EDO State Board of Internal Revenue Service has automated most of the core tax administration functions from registration of taxpayers to revenue reporting. Rivers is also doing well with an automatic tax system – RIVTAMIS in place. Bayelsa undertook a mass taxpayer registration drive in December 2018 and that is now yielding results. In Delta the automated system is still under development. Edo has achieved the IGR target and Bayelsa is close to it. More effort is needed from Rivers and especially from Delta which is really lagging. Component C - Project Coordination: The overall rating is has been retained at Moderately Satisfactory. While there have been some improvements by the National Project Coordination Unit (NPCU) delays in producing timely expenditure reports have adversely impacted their performance. Some noteworthy actions taken by the NPCU are the following: (i) convening the meeting of Internal Auditors for the four SEEFOR PIU’s on October 23rd 2019 at the World Bank and agreeing on concrete steps on how they can further professionalizing their activities and improve accountability. (ii) undertaking regular support missions to the States to review project performance and data quality through field visits including the recent mission to Bayelsa and Rivers State; (iii) organizing a training on digital technologies. Some key tasks that need to be undertaken in the next few months are the following: (i) further strengthening data quality; (ii) documenting good practices in SEEFOR and completing the ICR (iii) organizing the conference on Sustainability in June 2002. mpaTable Multiphase Programmatic Approach (MPA) Status mpaTableBody Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High Substantial Macroeconomic -- High Substantial Sector Strategies and Policies -- Substantial Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- High High Environment and Social -- Moderate Moderate 4/23/2020 Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Stakeholders -- Substantial Substantial Other -- Low Low Overall -- High Substantial Results PDO Indicators by Objectives / Outcomes Enhanced opportunities for employment in participating states IN00799818 ►Number of people employed (disagregated by type of employment and gender (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 47,831.00 67,650.00 33,673.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 Enhanced opportunities for employment in participating states IN00799819 ►Number of people trained in technical and vocational skills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 29,682.00 27,200.00 14,692.00 Date 11-Mar-2016 09-May-2019 31-Dec-2019 30-Sep-2019 The May 2019 AM had noted that the data provided for Delta state appeared to be incorrect. It turned out to be so. The correct number for Delta has been incorporated now and that accounts for the difference Comments: between the figures in the last ISR and now. Enhanced access to socio economic services in participating states IN00799820 ►Number of people with access to services supported in target communities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 726,273.00 1,910,402.00 453,386.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 Improved public expenditure management system in participating states IN00799941 ►Percentage deviation of actual aggregate expenditure from budgeted expenditure in the participating states (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/23/2020 Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Value 23.25 14.00 16.00 10.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 There was a deterioration in the budget deviation figures for Bayelsa and that has negatively impacted Comments: the average for the SEEFOR states. Improved public expenditure management system in participating states IN00799942 ►Percentage of public contracts above the threshold awarded through competitive process in each participating state (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.25 52.25 42.00 66.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 There is a difference with the previous ISR primarily due to data received on this indicator from Edo State. Comments: That has now been corrected. Increased number of direct project beneficiaries in participating states IN00799943 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 761,922.00 1,870,827.00 340,000.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799944 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 56.04 52.00 30.00 Intermediate Results Indicators by Components Component A: Youth Employment and Access to Socio-Economic Services IN00799945 ►Sub-Component A1: Number of contracts awarded for public works (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,009.00 1,345.00 564.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799947 ►Sub-component A1: Number of people trained in Life Planning and Entrepreneurship Skills (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/23/2020 Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Value 0.00 45,539.00 64,015.00 39,430.00 Date 11-Mar-2016 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799949 ►Sub-Component A2: Number of technical and vocational courses accredited in each state by the National Board of Technical Education (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 19.00 108.00 119.00 67.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799951 ►Sub-component A.3: Number of CDPs and LDPs projects that were implemented according to plan under SEEFOR project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 517.00 472.00 324.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 There is a difference compared to the previous ISR due to correction in the data supplied by Delta State. Comments: IN00799953 ►Number of participating States that have established Complaint Review mechanism (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 11-Mar-2016 09-May-2019 31-Dec-2019 30-Sep-2019 Component B: Public Financial Management Reforms IN00799946 ►Sub-component B.1: Number of states with draft standard Public Finance Legislation submitted to state legislature (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 4.00 4.00 4.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799948 ►Sub-component B.2:Number of States Publishing Annual Budget Estimates (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799950 ►Sub-component B2: Number of MDAs in each state with defined medium-term expenditure plan derived from the State MTEF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 76.00 76.00 32.00 4/23/2020 Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799952 ►Sub-component B.3:Number of states with new/modern chart of account/budget classification produced and used for budget and annual accounts in each participating state. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799954 ►Sub-component B.4: Number of months taken to submit annual audited financial statements of the state to the State House of Assembly (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17.25 8.75 8.00 5.25 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799955 ►Sub-component B.4:Number of States publishing most recent audited Financial Statements on the state website (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 3.00 4.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 Bayelsa had a challenge since the state website was temporarily down. Comments: IN00799956 ►Sub-component B.5: Number of states that have implemented 3-5 key modules of IFIMIS (FM, budget and payroll) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 4.00 4.00 4.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 IN00799957 ►Sub-component B.6: % of public contract awards published in procurement database and reflected on state official website (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.25 52.25 42.00 60.75 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 As noted earlier, there was an issue with the data received from Edo that has since been corrected. Comments: IN00799958 ►Sub-component B.7: Percentage increase in Internally Generated Revenue (IGR) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 32.75 31.00 40.00 Date 14-Apr-2011 09-May-2019 31-Dec-2019 30-Sep-2019 4/23/2020 Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P121455 IDA-50220 Effective USD 200.00 200.00 0.00 165.36 13.91 92% P133071 TF-17831 Effective USD 82.12 82.12 0.00 65.66 18.93 78% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P121455 IDA-50220 Effective 06-Mar-2012 16-Apr-2013 30-Jul-2013 30-Jun-2017 30-Sep-2020 P133071 TF-17831 Effective 01-Jun-2016 11-Nov-2016 16-Dec-2016 31-Mar-2017 30-Sep-2020 Cumulative Disbursements Restructuring History Level 2 Approved on 29-Mar-2017 ,Level 2 Approved on 20-Sep-2019 4/23/2020 Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report State Employment and Expenditure for Results Project (P121455) Related Project(s) P133071-State Employment and Expenditure for Results Project 4/23/2020 Page 9 of 9