The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) Malawi Governance to Enable Service Delivery Project (P164961) AFRICA EAST | Malawi | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 3 | ARCHIVED on 20-Oct-2021 | ISR48197 | Implementing Agencies: Republic of Malawi, National Local Government Finance Committee Key Dates Key Project Dates Bank Approval Date: 30-Apr-2020 Effectiveness Date: 16-Dec-2020 Planned Mid Term Review Date: 20-Jan-2023 Actual Mid-Term Review Date: Original Closing Date: 30-Sep-2025 Revised Closing Date: 30-Sep-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen Local Authorities’ institutional performance, responsiveness to citizens and management of resources for service delivery. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Performance-Based Financing for Service Delivery:(Cost $73.20 M) Strengthening Inter-governmental Accountability Systems:(Cost $3.80 M) Local Government Performance Improvement Support:(Cost $18.00 M) Adaptive Management and Innovation Support:(Cost $5.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project has made significant implementation progress over the last six months, with the primary objective of completing an objective and credible Local Authority Performance Assessment towards the disbursement of the first round of the Performance Based Grant (PBG) to qualifying Local Authorities (LAs). In particular, the project successfully oversaw: (i) achievement of the PBG Disbursement Condition – documenting that GoM transferred to LAs the full amount of the District Development Fund (DDF) in FY20/21 as per the approved budget no later than April 30, 2021 ; (ii) validation of the first round of the Local Authority Performance Assessment (LAPA) and Triggers Assessment through a fair and credible process; (iii) delivery of timely performance improvement support to LAs; and (iv) the completion of LA audits and redeployment of procurement officers across all LAs — all measures aimed at supporting LAs to qualify to receive the PBG. The process for determining the first round of the PBG eligibility concluded at the end of August – with 24 of 28 LAs qualifying. 10/20/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) Despite these achievements, the project continues to be urged to speed up internal process for the release of funds, for procurements, and for keeping to the agreed timelines with disbursement of the first round of PBG and undertaking the second round of the LAPA so as to ensure the PBG is closely aligned to the overall GoM annual budget process. 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 Substantial Moderate Moderate Macroeconomic Substantial Moderate Moderate 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 Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Moderate Moderate Other -- Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Strengthened institutional performance IN01037896 ►Local Authorities that are eligible for the Performance Based Grant (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 24.00 26.00 Date 30-Sep-2019 24-Mar-2021 10-Sep-2021 30-Sep-2024 Number of LAs that have achieved Minimum Access Conditions (MACS) and Triggers determined by the Comments: performance assessment. IN01037897 ►Local Authorities that increase their performance assessment score by at least 5 points (Number, Custom) 10/20/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Can be calculated in December 2021 following second LAPA assessment. Comments: Strengthened management of resources IN01037898 ►Local Authorities that complete 80% of the capital investment projects in their Annual Investment Plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 0.00 0.00 26.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Capital investment projects are considered completed when handover is certified. Applies to capital investment projects that are specifically planned to be completed in that year as per approved AIP. Comments: Includes only projects funded by the DDF and PBG. Can be calculated for first time in March 2022 following end of first FY of PBG. Strengthened responsiveness to citizens IN01037899 ►Increase in citizen satisfaction (disaggregated by sex) with preparation and implementation of Annual Investment Plans based on periodic beneficiary feedback survey (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Survey to cover at least 4 aspects of satisfaction with implementation of AIP, such as: knowledge on part of citizens; efficiency of implementation; responsiveness to citizen needs; transparency of process. Comments: First round of citizen satisfaction survey to be undertaken in Nov/Dec 2021. Intermediate Results Indicators by Components Performance-Based Financing for Service Delivery IN01037900 ►Annual local authority performance assessment conducted on time with quality assurance and results published and used to determine District allocation of the Performance-Based Grant (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 30-Sep-2019 24-Mar-2021 27-Aug-2021 30-Sep-2024 Comments: Performance assessment process described in assessment Manual and Project Implementation Manual IN01037903 ►District Development Fund (DDF) released to Local Authorities on time and in full amount allocated in approved budget (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/20/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) Value No No Yes Yes Date 30-Sep-2019 24-Mar-2021 30-Apr-2021 30-Sep-2024 Predictability (no variance between approved budget and actual releases) and timeliness (quarterly Comments: releases; with full release by the end of the first month of the fourth quarter) of the DDF. IN01037905 ►Local Authorities that submit quarterly physical progress reports for Annual Investment Plan (AIP) projects (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Physical reporting as per standard in MoLGRD guidelines. Can be reported for first time in March 2022 Comments: following end of first FY of PBG. IN01037907 ►Local Authorities that improve their performance on Financial Management and Accounting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 18.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 LAs that score at least 9 (out of 15) on performance assessment area on Financial Management and Accounting. This performance area provides evidence of institutional performance on proper financial management and accounting. Comments: Can be calculated in December 2021 following second LAPA assessment. 'Baseline' figure of LAs in first LAPA assessment is 19 Local Authorities. Intergovernmental Accountability Systems IN01037901 ►Progressive improvement in transparency, policy coherence and accountability in intergovernmental fiscal transfer System (IGFTs) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NLGFC publishes annual report on the IGFTs, progress with No fiscal decentralization No fiscal strategic commitments, No fiscal decentralization Value strategy; IGFTS not decentralization status of prior strategy transparent strategy recommendations, and recommendations on at least one area of reform Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Standard and content for NLGFC Annual Report to be defined in the Project Implementation Manual (PIM). Comments: Areas of recommendations to be defined in PIM (to include formulae, structure of grants; equalization; vertical sharing). IN01037904 ►Local Authority financial statements audited by National Audit Office by December 31 of each year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 28.00 10/20/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 LA Audits were not completed by NAO until July 1, 2021 vs. statutory deadline of December 31, 2021. Comments: Local Government Performance Improvement Support IN01037902 ►Vacancy rate for core functions across Local Authorities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 56.00 56.00 52.70 20.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Definition of core functions as agreed with LASCOM and HR Task Force and documented in the Project Comments: Implementation Manual IN01037906 ►Targeted Local Government Performance Improvement Plans for the bottom 5 scoring Local Authorities developed and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 The 5 LAs that score the lowest in the Performance Measures of the performance assessment. Performance Improvement Plan CNs have been developed as of Aug 2021. To be implemented between Comments: Sept 2021- March 2022. IN01037908 ►Local Authorities that each year produce and act on at least 2 semi-annual internal audit reports (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 8.00 26.00 Date 30-Sep-2019 24-Mar-2021 31-Dec-2020 30-Sep-2024 This will be assessed per performance assessment performance measure 24 (Internal Audit). Comments: Current score from LAPA 2020 (completed December 2020). IN01037909 ►Gender sensitive standards for selection of Annual Investment Plan projects in place (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NLGFC Annual Report reports on use and Value N/A N/A N/A impact of gender sensitive standards Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 IN01037910 ►Improved citizen engagement on Annual Investment Plans as measured by the Performance Measures relating to citizen engagement and access to information (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Mean scores on performance Value N/A N/A N/A assessment PMs relating to citizen 10/20/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) engagement and access to information improves against previous year Date 30-Sep-2019 24-Mar-2021 30-Jul-2021 30-Sep-2024 Standards as defined by the current performance assessment PMs 2, 10, 11 and 12, which assess extent of LA use of social screening and information flows to citizens. Comments: Can be measured in December 2021 following second LAPA asessment. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164961 IDA-D5980 Effective USD 100.00 100.00 0.00 10.81 93.19 10% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164961 IDA-D5980 Effective 30-Apr-2020 05-Nov-2020 16-Dec-2020 30-Sep-2025 30-Sep-2025 Cumulative Disbursements 10/20/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Malawi Governance to Enable Service Delivery Project (P164961) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/20/2021 Page 7 of 7