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 EAST | Somalia | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 8 | ARCHIVED on 26-Oct-2020 | ISR43300 | 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 pdoTable 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 Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The project has made substantial progress in supporting core Federal Government of Somalia (FGS) salaries, improving the payment systems at the FGS level, and supporting the federal dialogue. More attention needs to be paid to enhancing tax and service delivery systems. 10/26/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875) The component-wise progress Progress of component 1 has been satisfactory. Substantial progress in timely and accurate payment of salaries through an automated payroll system has been made. The remaining weaknesses include the maintenance of up-to-date staff personnel files and archiving, weak management of time and attendance. The payment of salaries through the Capacity Injection Mechanism is also satisfactory. There is a need to conduct a pay, grading, and job evaluation exercise for harmonization of salaries and sustainability of the wage bill with due reference to the Federal Members States (FMSs) and Federal Government of Somalia (FGS) pay scales. A pay and grading exercise for FGS has now been started through the support of the Somalia Capacity Injection Project. Progress on component 2 has also been satisfactory with the setting up of the Intergovernmental Fiscal Reform Unit, convening of high-level political and technical meetings, producing analytical reports, and providing support to FMSs for fiscal reporting. The mechanism of eligibility criteria has also been useful to incentivize performance. It is being further strengthened. Going forward, it will be important to focus on intergovernmental fiscal relations, tax, and financial reporting policy reforms. The progress on component 3 has been rated moderately unsatisfactory mainly because of the unsatisfactory progress in the health subcomponent because of the COVID-19 constraints and the substantial delays in contracting the health technical partner. The progress on the education sub- component is moderately unsatisfactory because of the underutilization of budget, substantial delays in payment of salaries to teachers, and COVID-19 constraints on school opening and supervision activities. To address these issues, the focus will be on procurement and deployment of the health technical partner, use of mobile phones to improve monitoring and data systems, and addressing the deficiencies in the timely delivery of salary top-ups to teachers. The progress of component 4 is satisfactory. 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 10/26/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875) Fiduciary High High High Environment and Social Low Low Low 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 IN00887776 ►Share of civil servants' salaries financed by government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 80.00 82.00 40.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 IN00887779 ►Percentage of eligible civil servants salaries paid on time (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 67.00 83.00 22.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 Strengthen inter-governmental fiscal relations IN00887777 ►Inter-governmental transfers to eligible FMS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 69.20 0.00 45.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 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 IN00887778 10/26/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875) ►Eligible FMS/BRA conducting proficiency testing of teachers as an annual exercise establishing minimum competency level of teachers (DLI 7) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 4.00 3.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 Overall Comments PDO 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 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. 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 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. Intermediate Results Indicators by Components Recurrent cost finance to reform resource management systems IN00887783 ►Monthly payroll reports published on MOF website (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 12.00 5.00 12.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 IN00887787 ►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 9.8% 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 31-Dec-2019 30-Jun-2020 30-Jun-2022 Strengthen inter-governmental fiscal relations 10/26/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875) IN00887782 ►Inter-governmental forums held annually (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 4.00 5.00 4.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 IN00887786 ►Strengthen FGS transfers to FMS (DLI6) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Met. Execution rate for Met. Execution rate for 2018 fiscal transfers to fiscal transfers to FMS fiscal transfers to FMS FGS fiscal transfers FMS budgeted at USD for the year 2019 (Jan- for the months (Jan- execution rate to FMS 12m, with USD 5.4m for Dec) of 278% of June) of 2020 is 75% equal to or greater Value block transfers under budgeted level exceeds exceeds execution than the outturn rate Ministry of Interior and execution rate for rate for domestic for domestic revenues Federal Affairs domestic revenue for at revenue for at 45% of (Year 3) 241% of budgeted level budgeted level Date 31-Jul-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 Transfers for core Govt functions & foundational education & health service delivery mechanisms IN00887780 ►Strengthen school supervision (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Some FMS including Five states(PSS, HSS, Puntland have started to GSS, JSS, SWSS) develop operations and and Banaadir region Lack of a coherent quality assurance developed supervision system for school manuals on supervision. Satisfactory costed school supervision, with Puntland has also completion of full supervision Value inadequate financing to developed a round of supervision operational plans, enable FMS education comprehensive annual activities in eligible checklists and tools. ministries to fulfil this costed supervision FMS 1,554 primary and function workplan. Other states secondary schools are in preparatory stage were visited between for undertaking Nov 2019 to April 2020 supervision exercises Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 IN00887781 ►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 31-Dec-2019 30-Jun-2020 30-Jun-2022 IN00887784 ►Women of child bearing age (15-59 years) and children 0-59 months referred to health facilities by Female Health Workers (Percentage, Custom) 10/26/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 IN00887785 ►Female Health Workers selected according to guidelines, trained, and actively providing services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 162.00 359.00 750.00 Date 31-Dec-2018 31-Dec-2019 30-Jun-2020 30-Jun-2022 Performance-Based Conditions 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 42.63 16.72 71% 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-2022 P154875 TF-A6971 Effective 15-Feb-2018 12-Mar-2018 12-Mar-2018 30-Jun-2020 30-Jun-2022 P154875 TF-A8244 Effective 25-Sep-2018 31-Oct-2018 05-Feb-2019 30-Jun-2022 30-Jun-2022 Cumulative Disbursements 10/26/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Somalia Recurrent Cost & Reform Financing Project - Phase 2 (P154875) 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 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 10/26/2020 Page 7 of 7