The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Public Finance Management Modernization Project 2 (P150381) EUROPE AND CENTRAL ASIA | Tajikistan | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 22-Nov-2019 | ISR39172 | Implementing Agencies: Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 01-Jun-2015 Effectiveness Date: 10-May-2016 Planned Mid Term Review Date: 01-Oct-2019 Actual Mid-Term Review Date: 04-Oct-2019 Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to improve effectiveness, control and accountability of public expenditure of the Republic of Tajikistan. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name 1. Public Finance Management Modernization:(Cost $8.80 M) 2. Strengthening Public Procurement:(Cost $2.50 M) 3. Strengthening External Audit:(Cost $2.70 M) 4. Managing Public Administration Reforms:(Cost $4.90 M) 5. Project Management:(Cost $2.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Moderately Unsatisfactory ►Moderately Satisfactory Overall Risk Rating ►Substantial ►Moderate Implementation Status and Key Decisions 11/22/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Achievement of the Project Development Objective remains moderately satisfactory. Based on the PEFA 2017, most of the PEFA indicators have improved compared to the baseline. The mission noted positive progress in project implementation on Component 1 PFM Reform, Component 3 Strengthening External Audit, and partially Sub- Component 4.1 Strategic Planning and Sub-Component 4.3 Civil Service Reform. However, there is no improvement in the indicator on providing key procurement information to the public. Moreover, indicators with respect to completeness of financial statements and accounting standards have current scores lower than baseline. Likewise, due to delays on Sub-Component 4.2. Developing and Implementing E-Government Road Map, there is no progress to report with respect to the e-government services being offered through the e-Government system. Nevertheless, progress on the ground indicates that additional results could be observed by next supervision mission in April 2020 by implementing recommendations provided to sub-components 1.2., 1.3., and 4.2. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance ►Moderate ►Moderate ►Moderate Macroeconomic ►High ►High ►High Sector Strategies and Policies ►Moderate ►Moderate ►Moderate Technical Design of Project or Program ►Moderate ►Moderate ►Moderate Institutional Capacity for Implementation and Sustainability ►Moderate ►Moderate ►Moderate Fiduciary ►Substantial ►Substantial ►Moderate Environment and Social ►Low ►Low ►Low Stakeholders ►High ►High ►Moderate Other -- ►Moderate ►Moderate Overall ►Substantial ►Substantial ►Moderate Results PDO Indicators by Objectives / Outcomes Improved effectiveness of PFM IN00762624 ►Improved effectiveness of public expenditure measured by the increased alighnment of expenditure with policy priorities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 25.00 75.00 Date 01-Jan-2013 01-Apr-2019 01-Nov-2019 30-Jun-2021 11/22/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) From baseline PEFA score D for PI-12, PEFA 2017 reports improvement with a score of C (when using PEFA 2011 Comments: methodology). Improved control of public expenditure IN00762625 ►Improved control of public expenditure measured by the stock of expenditure payment arrears (in percent of total expenditure by period) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 2.00 Date 01-Jan-2013 01-Apr-2019 01-Nov-2019 30-Jun-2021 From baseline PEFA scores D for PI-18i and PI-4, PEFA 2017 scores show improvements to C+ Comments: Improved accountability of public expenditure IN00762691 ►Improved accountability of public expenditure measured by the quality of annual financial reports (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 10.00 10.00 12.00 Date 01-Jan-2013 01-Apr-2019 01-Nov-2019 30-Jun-2021 From baseline PEFA score of PI-25i and PI-25iii of B and C, PEFA 2017 scores went down to C and D, respectively. Comments: IN00762692 ►Improved accountability of public expenditures measured by the quality of financial audit (PI-26i) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 75.00 Date 01-Jan-2013 01-Apr-2019 01-Nov-2019 30-Jun-2021 According to the results of 2017 the central government entities representing less than 50% of total expenditures were covered by audits. Comments: From baseline PEFA score D for PI-26, PEFA 2017 score shows improvement to C+. Overall Comments PDO Update of indicators is expected after December 31, 2019. Intermediate Results Indicators by Components 11/22/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) 1. Public Finance Management Modernization IN00762693 ►Additional functionalities (modules) of TFMIS (commitment control, cash management, payment order processing, assets management andpayroll management) installed and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 5.00 Date 01-Jan-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The 5-year Treasury Development Plan was approved by the decision of the 3rd PFM Coordination Council dated August 11, 2015 No. 1/3, which determines the introduction of all necessary modules of the TFMIS. The Ministry of Finance of the Republic of Tajikistan under the support of the State Unitary Enterprise “IFOSC”, has developed independently a Comments: bank payment management module and implemented it from January 1, 2017. On July 2018, MoF signed a contract with consulting company to assist with implementation of commitment control, cash management and assets management modules. The work is underway. IN00762698 ►Timeliness of annual financial reports (PI-25ii) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 7.00 7.00 6.00 Date 01-Jan-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The financial reporting on a cash basis in accordance with budget classification is submitted to the Government of the Republic of Tajikistan within 6 months of the end of the fiscal year, to the Parliament of the Republic of Tajikistan and to the External Audit (Chamber of Accounts of the Republic of Tajikistan) within 7 months of the end of the fiscal year. The indicated terms of submission of reporting are set by the Law on the Public Finance. The financial reporting on an accrual basis in accordance with TPSAS is formed, however a transition period to 2020 is Comments: determined by the Public Sector Accounting Strategy in which the formed financial reporting on an accrual basis is trial and is not submitted to external audit. From baseline PEFA score of B for PI-25ii, PEFA 2017 shows improvement with score of A. 2. Strengthening Public Procurement IN00762694 ►Key procurement information is made available to the public in a timely manner through appropriate means (PI-19iii) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 100.00 100.00 100.00 Date 01-Jan-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The Public Procurement Agency forms the annual procurement report. According to 2017 report, the number of accredited procuring entities covered by the report was 72% of total. Currently, the report is not published. It is expected that at the end of 2019, the report will be published on the public procurement portal. According to the Agency's information, on 9 Comments: months of 2018, 100% of the accredited procuring entities were covered by the report. From baseline PEFA score of B for PI-19iii, PEFA 2017 shows no change. IN00762699 11/22/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) ►Total value of contracts that were awarded through an open and competitive process (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 94.00 94.00 100.00 Date 01-Jan-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The Agency on Public Procurement of Goods, Works and Services under the Government of the Republic of Tajikistan has made a report on awarded contracts under the open and competitive procurement process in 2017. According to the report, 94.11% of contracts were awarded under the open and competitive process. Comments: According to the Agency's report for 9 months of 2018, 93.6% of the purchases awarded under the open and competitive procurement process, 6.4% are the purchases from one source. From baseline PEFA score of C for PI-19, PEFA 2017 shows improvement with score of B. 3. Strengthening External Audit IN00762695 ►Evidence of follow up on audit recommendations (in percent of audit recommendations) (PI-26iii) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 40.00 40.00 80.00 Date 01-Jul-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 Accomplished. The Chamber of Accounts has audited 338 (state bodies - the state budget) for 2018 and 126 audit recommendations were submitted. According to the preliminary data, the implementation of recommendations makes more than 40% of the total Comments: number of recommendations submitted to the audited organizations in 2018. From baseline PEFA score of D for PI-26iii, PEFA 2017 shows improvement with score of A. IN00762700 ►Coverage of external audit (in percent of total expenditure) (PI-26i) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 75.00 Date 01-Jan-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 According to the results of 2017 the central government entities representing less than 50% of total expenditures were covered by audits. Comments: From PEFA baseline score of D for PI-26i, PEFA 2017 shows improvement with score of C. 4. Managing Public Administration Reforms IN00762696 ►The number of services available through e-Governance system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 11/22/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Date 01-Jan-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The e-government roadmap was developed by an international consultant. This document is under consideration in the EOP RT for further approval. The electronic address of citizens is functioning through the official website president.tj, electronic visa through the website e-visa.tj, electronic tax reporting through andoz.tj, internet banking of the banking sector, electronic public procurement through zakupki.gov.tj, electronic request and SMS informing about fines of the traffic police through the Shakhri bekhatar system, an electronic diary in some educational institutions, electronic Comments: notification about the results of testing of applicants through the website ntc.tj, the legal information bank of the Republic of Tajikistan www.adlia.tj, payment of salaries and related taxes of BO, through Internet banking through FMIS etc. But since the above e-services were implemented out of project funds, the actual number of e-services implemented from the project funds is zero. IN00762701 ►Timeliness of changes to personnel records and the payroll (months) (PI-18ii) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 1.00 1.00 0.00 Date 01-Jan-2013 01-Apr-2019 01-Nov-2019 30-Jun-2021 All changes in personnel are taken into account by the personnel service. All changes upon their accomplishment are sent to the accounting department. Accounting department every month, when calculating salaries takes into account all changes in staff in a mandatory manner. At the moment, all these operations are carried out manually and in hard copy. Some public Comments: institutions have special software for personnel accounting, payroll accounting and payment. From baseline PEFA score of B for PI-18ii, PEFA 2017 shows no change. 5. Project Management IN00762697 ►Project supported NGO publishing reports on feedback received and how this feedback has been used. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Sep-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The assignment is under progress. Comments: IN00762702 ►Beneficiariessatisfied with systems and procedures implemented by the project, as measured by user satisfaction surveys (percent of users surveyed) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 01-Sep-2015 01-Apr-2019 01-Nov-2019 30-Jun-2021 The current actual number is zero since survey has not been conducted yet. The assignment is under the progress. Comments: IN00762703 ►Percent of women beneficiaries satisfied with systems and procedures implemented by the project, as measured by user satisfaction surveys (Percentage, Custom Breakdown) 11/22/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 01-Sep-2015 01-Apr-2019 01-Apr-2019 30-Jun-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150381 IDA-56310 Effective USD 5.50 5.50 0.00 0.00 5.84 0% P150381 IDA-D0550 Effective USD 4.50 4.50 0.00 2.97 1.47 67% P150381 TF-A1735 Effective USD 9.77 9.77 0.00 3.93 5.84 40% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150381 IDA-56310 Effective 01-Jun-2015 17-Feb-2016 10-May-2016 30-Jun-2021 30-Jun-2021 P150381 IDA-D0550 Effective 01-Jun-2015 17-Feb-2016 10-May-2016 30-Jun-2021 30-Jun-2021 P150381 TF-A1735 Effective 17-Feb-2016 17-Feb-2016 10-May-2016 30-Jun-2021 30-Jun-2021 Cumulative Disbursements 11/22/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Public Finance Management Modernization Project 2 (P150381) Restructuring History There has been no restructuring to date. Related Project(s) P172924-Additional Financing for PFMMP 2 11/22/2019 Page 8 of 8