The World Bank Report No: ISR2233 Implementation Status & Results Kyrgyz Republic Public Disclosure Copy Governance Technical Assistance Project (P071063) Operation Name: Governance Technical Assistance Project (P071063) Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Last Modified Date: 03-Dec-2010 Country: Kyrgyz Republic Approval FY: 2003 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 15-May-2003 Original Closing Date 31-Dec-2008 Planned Mid Term Review Date Last Archived ISR Date 21-May-2010 Effectiveness Date 28-Aug-2003 Revised Closing Date 31-Dec-2010 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to strengthen the Borrower#s institutional capacity to implement the measures under the Program outlined in the GSAC Program Document and to assist with the Treasury modernization. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost 1. TECHNICAL ASSISTANCE TO SUPPORT IMPLEMENTATION OF REFORMS INCLUDED IN 1.59 GSAC: (I) IMPROVE TRANSPARENCY AND STRENGTHEN 2. MODERNIZATION OF THE TREASURY 4.83 3. PROJECT MANAGEMENT 0.55 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Medium-I Implementation Status Overview The Ministry of Finance (MOF), the State Personnel Service and other government entities have made a good progress in meeting project objectives related to governance transparency. The achievements include: better access to budget execution information from the MOF website; improved allocation of funds to social sectors (although impacted by reduced revenue following political unrest of April 2010); transparency of income declaration of public officials; better public access to draft legislation for comments prior to approval; institutionalized separation between political and administrative posts and institutionalization of merit based selection; etc. Page 1 of 9 The World Bank Report No: ISR2233 The MOF initiated implementation of the Treasury Management Information System (TMIS) and Human Resource Management Information System (HRMIS) in February 2010. However, the preparation of system requirements related to a budget preparation module has caused delays in project implementation. Regretfully, during a bidding stage, the Public Disclosure Copy system design included detailed description only for the treasury and human resource management, with a brief description of interface for input of the budget data. However, the Supplier included the budget module in the offer and the Contract without detailed technical requirements for the budget process. During Contract implementation, the political events in the Kyrgyz Republic affected the Supplier's ability to prepare a detailed description for budget preparation requirements according to the agreed timetable. In November, TMIS Contract Management Consultant was hired to assist the MOF with contract implementation and resolution of the system requirements issues, so as to enable successful completion of the TMIS/HRMIS implementation. However, the Credit Closing Date of December 31, 2010 leaves no time for system implementation. The MOF requested extension of the Closing Date. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Public perception re transparency, responsiveness and integrity of No baseline surveys conducted. According to prelimiary results of a Improvements in public attitudes public sector as measured by annual surveys. The relevant FH indexes for 2004 MoF survey, 53% respondents shown through surveys were: (0=weakest; 7=strongest): think that bribery is part of the life, Date Anticorruption and Transparency and 15% think that it is acommon Type Unit of Measure -2.34; Accountability and Public occurence but is not as widely 31-Dec-2010 Custom Indicator Text Voice-1.8 spread, as it is perceived Comment Date Date 30-Jun-2003 04-Nov-2010 Comment Comment The interim government conducts a high visibility campaign to root out corruption from the public office Indicator Baseline Current End Target Indicator Name Value Value Value Improved access, reliability and timeliness of information about budget Budget reports fragmented and not New budget classification improves Comprehensive summary budget Public Disclosure Copy execution, to public officials and civil society. widely available. transparency of expenditure reports made publicy available Date reporting Monthly budget execution within 6 months of budget reports are placed on the CT execution. Type Unit of Measure 30-Jun-2003 website on a monthly basis. 2009 Date Custom Indicator Text Comment Annual Budget execution report has been also published 31-Dec-2010 Date Comment 04-Nov-2010 Comment Page 2 of 9 The World Bank Report No: ISR2233 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of private firms participating in public procurement Not available Not available. Former National 100 percent Date Procurement Agency was Date liquidated due to corruption 30-Jun-2003 allegations. 31-Dec-2010 Type Unit of Measure Comment Date Comment Custom Indicator Text 04-Nov-2010 Comment The available MOF capacity and the legal mandate do not provide for collection of such information Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of "Main" and "Lead" civil servants recruited on competitive Not available, as (i) the old version During the political turmoil, many Competition process improved and basis. of the civil service law didn#t institutional changes occurred most senior civil servants recruited require mandatory competitive which resulted in change of on a competitive basis process for recruitments, and (ii) personnel. No data is available. Date Type Unit of Measure there was no monitoring of this Date indicator in 2004. 31-Dec-2010 Custom Indicator Text 04-Nov-2010 Date Comment Comment 30-Jun-2003 During swift political changes in Comment many cases civil servants were appointed by acting ministers outside of the due process. Public Disclosure Copy Page 3 of 9 The World Bank Report No: ISR2233 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Increased predictability in budget allocations for health and education Health exp allocations are done as Date agreed under Health SWAP. Date Teachers# salaries (financed by categ. grants) are allocated in a Type Unit of Measure Comment scheduled manner though other Comment Custom Indicator Text expenses (from LB) done on ad hoc manner Date 01-May-2010 Comment Budget allocations predictability has worsened in general in April 2010 due to political unrest. Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of required declarations of high state officials published No declarations or provision for 93 percent of political appointees All high state officials present and annually. declarations submitted declarations for 2009, as publish declarations. Date of March 1, 2010. Political events Date and change of the management Type Unit of Measure 30-Jun-2003 made publication of declarations 31-Dec-2010 Custom Indicator Text Comment more challenging due to high Comment frequency turnover of officials Date 04-Nov-2010 Public Disclosure Copy Comment Currently, the govt works on strengthening this process through introduction of data verification procedure. It is expected that guidelines on this matter will be developed by the SPS Page 4 of 9 The World Bank Report No: ISR2233 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of draft laws and regulations discussed with the private sector No draft laws discussed Presently the MOJ has resumed Most significant laws and and civil society, prior to their adoption. publication of draft laws, president regulations discussed with private Date decrees and government sector andcivil society prior to 30-Jun-2003 resolutions on MOJ website. A adoption Type Unit of Measure Comment total of 23legal drafts have been Date Custom Indicator Text available for comments in November. 31-Dec-2010 Date Comment 04-Nov-2010 Comment After the political turmoil, the publication of legal drafts has resumed Indicator Baseline Current End Target Indicator Name Value Value Value Coverage, quality and timeliness of audit reports of Chamber of Reports of COA confined to The law on external audit is in Improved quality of audit reports, Accounts (CoA). compliance with regulations place, but the COA needs external including particularly on the Date support for capacity building to annualbudget. improve the quality of audit reports. Date Type Unit of Measure 30-Jun-2003 Currently the Bank is providing a Comment TA to the CoA within Heath SWAP 31-Dec-2010 Custom Indicator Text and an IDF grant. Comment Date 04-Nov-2010 Comment Results of the recent CoA Audit Public Disclosure Copy reports were widely discussed in the mass media. The reports are mostly related to legality, not effectiveness or efficiency of the use of public funds. Page 5 of 9 The World Bank Report No: ISR2233 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Increased usefulness of the budget as a strategic policy instrument, as Budget poorly presented. In 2010, the collapse of the Transparent budget prepared on a result of improvements in its formulation process, content and Allocations managed on a monthly revenue, negative impact of cross basis of medium term framework. presentation. basis according to cash availability. border trade caused revenue Revisions to budget take place Date shortages. New social expenditure through due process and not on Type Unit of Measure to deal with the fall out of April basis of cash available to Treasury 30-Jun-2003 events further deteriorated budget Custom Indicator Text Date Comment situation. Althouth MTBF was prepared in March, its credibility 31-Dec-2010 isquestionable given the fragility of Comment the fiscal situation. However, using 2010 as a basis, the 2011 budget was prepared and submittedfor consideration of the new Parliament. Date 04-Nov-2010 Comment Political crisis had negative impact on predictability of budget. Indicator Baseline Current End Target Indicator Name Value Value Value Government Public Information Center (GPIC) established and No GPIC Since April events GPIC has not Center fully established and functioning. been functioning to its capacity. significant number of users from Date The GPIC has been replacing its the general public. 30-Jun-2003 equipment and aims to resume Date Type Unit of Measure Comment worksoon. 31-Dec-2010 Custom Indicator Text Date Public Disclosure Copy Comment 04-Nov-2010 Comment Page 6 of 9 The World Bank Report No: ISR2233 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Acess to legal database of the Ministry of Justice available to the public No legal database Database was established and is Regular use of database by on line. fully operational general public. Date 30-Jun-2003 Date Date Type Unit of Measure Comment 04-Nov-2010 31-Dec-2010 Custom Indicator Text Comment Comment Web-based database available for all internet users. Indicator Baseline Current End Target Indicator Name Value Value Value Kyrgyzstandard reorganised to separate regulatory and enforcement Kyrgyzstandard carries out both Regulatory functions adequately Regulatory and enforcement functions. regulatory and enforcement separated. functions fully separated. functions Date Date Date 04-Nov-2010 31-Dec-2010 Type Unit of Measure 30-Jun-2003 Comment Comment Custom Indicator Text Comment No change Indicator Baseline Current End Target Indicator Name Value Value Value Independent Civil Service Agency established and operational. No CSA State Personnel Service (SPS - Agency fully operational and Date new title) is operational although managing recruitment, promotion under new leadership. SPS and training of Civil Servants. 30-Jun-2003 publishes vacant posts and Date Type Unit of Measure Comment monitors data on recruitment, promotion and training of Civil 31-Dec-2010 Custom Indicator Text Servants. Additional support to Comment Public Disclosure Copy strengthen general capacityof the agency is required. Date 04-Nov-2010 Comment A new civil service development concept has been prepared by SPS to promote further development of a professional civil service. Page 7 of 9 The World Bank Report No: ISR2233 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Computerized Treasury System implemented. Treasury largely manual system TMIS/HRMIS system requirements New Treasury system fully Date review competed for treasury and functional. personnel management. Budget Date 30-Jun-2003 module system requirements are Type Unit of Measure Comment being revised. 31-Dec-2010 Custom Indicator Text Date Comment 19-Nov-2010 Comment MOF and the Supplier work to agree on the requirements for the budget module. This will be finalized by Dec 31 2010. To implement the TMIS/HRMIS, the Credit Closing Date needs to be extended. Data on Financial Performance (as of 06-Oct-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P071063 IDA-37570 Effective 15-May-2003 28-May-2003 28-Aug-2003 31-Dec-2010 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P071063 IDA-37570 Effective XDR 5.80 5.80 0.00 2.09 3.71 36.00 Public Disclosure Copy Disbursement Graph Page 8 of 9 The World Bank Report No: ISR2233 Public Disclosure Copy Key Decisions Regarding Implementation 1. The MOF and the Supplier should work together to finalize the system requirements, agree on moving to the next stage, and revise the Contract implementation schedule before the end of 2010. 2. Based on the MOF request for extension of the Credit Closing Date, the Bank shall initially submit a request for an intermediate extension until February 15, 2011. Subject to the MOF and the Supplieragreeing on the path and timetable for TMIS/HRMIS implementation and given that the intermediate extension is granted, the MOF shall submit a new request for Credit Closing Date extension to enable both parties to implement the conditions of the Contract and achieve project objectives. The Bank will initiate the subsequent and final project Closing Date extension. Restructuring History CD Approved on 12-May-2008, Board Approved on 28-May-2009 Public Disclosure Copy Related Projects There are no related projects. Page 9 of 9