$ Report No: RES00477 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT 2 APPROVED ON JUNE 1, 2015 TO REPUBLIC OF TAJIKISTAN Governance Europe And Central Asia Regional Vice President: Antonella Bassani Regional Director: Asad Alam Country Director: Tatiana A. Proskuryakova Practice Manager: Adrian Fozzard Task Team Leader(s): Hassan Aliev The World Bank Public Finance Management Modernization Project 2 (P150381) ABBREVIATIONS AND ACRONYMS FRSPST Financial Reporting Standards in the Public Sector of Tajikistan HRMIS Human Resources Management Information System IFRS International Financial Reporting Standards MOF Ministry of Finance PDO Project Development Objective PFM Public Financial Management TFMIS Tajikistan Financial Management Information System The World Bank Public Finance Management Modernization Project 2 (P150381) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P150381 Public Finance Management Modernization Project 2 Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Tajikistan Approval Date Current Closing Date 01-Jun-2015 30-Jun-2025 Original EA Category Not Required (C) (PAD Approval Package-01 Jun 2015) Organizations Borrower Responsible Agency Republic of Tajikistan Ministry of Finance @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective

The development objective of the project is to improve effectiveness, control and accountability of public expenditure of the Republic of Tajikistan.

Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed i The World Bank Public Finance Management Modernization Project 2 (P150381) IBRD -- -- -- 0 IDA 15.52 12.70 2.86 81.61 Grants 9.66 9.66 0.00 100.00 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Public Finance Management Modernization Project 2 (P150381) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................2 III. PROPOSED CHANGES ................................................................................................................................................9 IV. DETAILED CHANGE(S) ...............................................................................................................................................9 The World Bank Public Finance Management Modernization Project 2 (P150381) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Ministry of Finance (MOF) has requested a 20-month extension of the project closing date from June 30, 2025 to February 28, 2027 by a letter dated September 5, 2024. The project was approved on June 1, 2015 and extended in December 2, 2020 with allocating US$6 million additional financing. In 2022, the project was in problem status then upgraded in early 2024. A 12-month extension of the closing date will be sufficient to disburse part of the remaining project balance in the amount of USD 1.5 million in FY2026. Project implementations was delayed because of turnover of project staff in 2023 after reduction of the staff wages, low client capacity, and delays in the procurement of complex information systems. 2. The project has made significant progress across all project components and activities. The project has disbursed 86 percent of the committed amount to date (100 percent of the grant and 77 percent of the IDA credit). The ratings for progress towards achievement of the project development objective (PDO) and overall implementation progress are Satisfactory. The project has complied with legal covenants, procurement, and financial management arrangements. There are no outstanding audit reports. Since April 2024, the project has made significant progress in i) integrating the Tajikistan Financial Management Information System (TFMIS) and iMOF application providing cash management, liability management, and asset management functionality; ii) extension of iMOF information system to include an accounting module; iii) implementation of the Public Procurement Law and e-Procurement system; and iv) implementation of Human Resources Management Information System (HRMIS). 3. The 12-month extension of the project closing date to June 30, 2026, is necessary to successfully complete planned activities and achieve the PDO. The critical actions to achieve the PDO are listed in Table 1. The 12-month extension will allow sufficient time for completion of the quality delivery, testing and user acceptance of the information systems developed under the project (actions 1, 2 and 3). The 12-month extension will allow MOF to launch the transition of five state-owned enterprises to the International Financial Reporting Standards (IFRS) and work on arrangements for their coverage by external audit (action 4). It will also allow MOF to initiate capacity building for the implementation Financial Reporting Standards (action 5). The 12-month extension provides sufficient time to put in place appropriate transition arrangements that will allow MOF to continue implementation after project closing. Table 1. Critical actions to achieve development objectives Action Initiation Date Completion Current Status Date 1. Development, testing and implementation of August 24, December The firm has provided one report the Information System on Development and 2024 30, 2025 according to the schedule of Monitoring of State Investments Management accomplishment of works. Currently, the Programs firm is expected to complete its works successfully as per MEDT information. 2. Development of additional seven modules for September 13, June 30, The tender was cancelled. New activity Human Resources Management Information 2024 2026 was created based on the bank’s approval System and the process has started. 3. Development of software package to support July 19, 2024 December Currently ToR is being prepared by inventory of audit reports and monitoring of 30, 2025 beneficiary with the completion date of risks; December 2025. 4. Supporting transition of five state-owned September 30, December The contract was signed early January enterprises to the IFRS and their coverage with 2024 30, 2025 2025 and under implementation. external audit 5. Building capacity of the Ministry of Finance on July 15, 2024 December Contract was signed and implementation Financial Reporting Standards in the Public 30, 2025 will be completed by December 2025. Sector of Tajikistan Page 1 The World Bank Public Finance Management Modernization Project 2 (P150381) 4. MOF has initiated key procurement contracts and project activities can be completed within the extension period. On February 15, 2024, a contract was signed with the State Unitary Enterprise “Financing Information Technologies Center” under the MOF to develop the integrated iMOF and TFMIS platforms that support all PFM functions and automate data exchange with other systems. MoF has signed contracts on provision of services to translate IFRS from English to Tajik and Russian languages to facilitate development of Financial Reporting Standards in the Public Sector of Tajikistan (FRSPST). MOF has also signed contracts for strengthening monitoring of state investment programs and improvement of internal audits to standards of internal audit based on international standards. It is expected that US$2 million will be disbursed by the current project closing date of June 30, 2025. More detailed information on contracts is provided in Table 2. The balance of US$1.5 million will be disbursed by the new project closing date of June 30, 2026. No new activities are included through this project restructuring. 5. All project development and intermediate results indicators will be completed by the proposed June 30, 2026 closing date. Table 3 presents the status of indicators. Out of 18 indicators, 3 have been achieved. It is expected that eight indicators (including two PDO indicators) will be achieved by June 30, 2025 and the remaining seven indicators (including the other two PDO indicators) will be achieved by the proposed project closing date of June 30, 2026. II. DESCRIPTION OF PROPOSED CHANGES 6. The proposed changes to the project are (i) the extension of project closing date by 12 months from June 30, 2025 to June 30, 2026; (ii) changes to the project implementation schedule and update the results framework to reflect the additional 12-month implementation period; iii) update the disbursement estimates; and iv) correcting the component cost to reflect the reduced total grant amount to US$9,664,800 per grant amendment signed on June 26, 2022. The extension is required to allow completion of the remaining activities and to achieve the PDO. The implementation schedule will be adjusted to reflect the extended implementation period based on the detailed action plan prepared by the MoF. The key milestones in the implementation plan are presented in the table below. Page 2 The World Bank Public Finance Management Modernization Project 2 (P150381) Table 2. Information on contracts signed Planned Amount of signed Remaining unpaid Expected date of Description Activity reference number Amount, in USD contract in USD contract amount disbursing funds USD 1 Support of the Ministry of Finance of the Republic of Tajikistan in the implementation of the roadmap on AF/PFMMPII/IC-1/2022 80,000.00 36,512.50 18,687.50 June 30, 2025 the introduction of TPSFRS 2 Development of 18 TPSFRS, included in the 3rd and June 30, 2026 AF/PFMMPII/CQS-5/2024 200,000.00 199,700.00 199,700.00 4th phases of introduction 3 Support of the introduction of TPSFRS and accrual June 30, 2025 AF/PFMMPII/CQS-3/2022 200,000.00 195,300.00 175,770.00 basis accounting 4 Support of the Ministry of Finance of the Republic of December 30, Tajikistan to improve the procedures on the AF/PFMMPII/CQS-2/2022 200,000.00 - 200,000.00 2025 application of IFRS in the SOEs 5 Support of the Ministry of Finance of the Republic of Completed Tajikistan in updating IFRS and their translation into AF/PFMMPII/CQS-4/2022 150,000.00 149,200.00 0 Tajik language 6 Support to the Advanced Training Center of MoF RT in organizing regular training of chief accountants of June 30, 2025 AF/PFMMPII/CQS-1/2022 200,000.00 199,804.00 179,824.00 budget organizations on TPSFRS and accrual basis accounting 7 Support to the Ministry of Finance of the Republic of Tajikistan in organizing training of budget organizations employees on working with all AF/PFMMPII/CQS-5/2022 200,000.00 - 200,000.00 December 30, information systems of the Ministry of Finance of 2025 the Republic of Tajikistan 8 Support to the Ministry of Finance of the Republic of Tajikistan in the development of the Procedure of approval and application of IFRS and the development of necessary amendments to the Law AF/PFMMPII/IC-4/2022 15,000.00 - 15,000.00 January 2025 of the Republic of Tajikistan on requirements for normative legal acts in terms of technical regulations 9 Support of the Ministry of Finance of the Republic of Tajikistan in the development of draft improvements to the normative legal acts related to IFRS, and in AF/PFMMPII/IC-5/2022 70,000.00 - 70,000.00 June 30, 2025 the development of mechanisms for monitoring the introduction of IFRS and ISA Page 1 The World Bank Public Finance Management Modernization Project 2 (P150381) Planned Amount of signed Remaining unpaid Expected date of Description Activity reference number Amount, in USD contract in USD contract amount disbursing funds USD 10 Advisory support in improving accounting, capacity December 30, building of employees and preparation of financial AF/PFMMPII/CQS-6/2022 120,000.00 151,300.00 151,300.00 2025 statements of a pilot large state-owned enterprise 11 Conducting an audit of a pilot large state-owned AF/PFMMPII/CQS-7/2022 50,000.00 50,000.00 June 30, 2025 enterprise 12 Performance management system of 27 large state- December 30, AF/PFMMPII/CQS-8/2022 150,000.00 149,300.00 149,300.00 owned enterprises 2025 13 Support of the Ministry of Finance of the Republic of June 30, 2025 Tajikistan in the implementation of the sub- AF/PFMMPII/IC-7/2022 80,000.00 84,275.10 65,331.21 component 1.3 14 Procurement of servers and office equipment for June 30, 2025 AF/PFMMPII/RFB-N-1/2022 355,000.00 350,038.13 70,000.00 MEDT. 15 MEDT support in the implementation of the March 1, 2025 AF/PFMMPII/IC-8/2022 80,000.00 62,500.00 12,500.00 subcomponent 1.4 16 Public investments management methodology development throughout the infrastructure cycle and the creation of a basic electronic system to June 30, 2025 AF/PFMMPII/RFB-N-1/2024 220,000.00 209,780.00 209,780.00 automate each step, ensure key data is used and retained and allows for good practice transparency and disclosure (sub comp 1.4) 17 Development of internal audit methodology, including audit programs and risk assessment June 30, 2025 methodologies, including development of national AF/PFMMPII/QCBS-1/2022 300,000.00 299,150.00 179,490.00 internal audit standards based on international standards 18 Support of the Ministry of Finance of the Republic of June 30, 2025 Tajikistan in the implementation of the AF/PFMMPII/IC-9/2022 100,000.00 80,460.00 68,627.00 subcomponent 1.5 19 Purchase of furniture for PPA AF/PFMMPII/SH-1/2024 95,000.00 95,000.00 June 30, 2025 20 120,000.00 120,000.00 Purchase of office equipment for PPA AF/PFMMPII/SH-2/2024 June 30, 2025 21 IT Consultant for supporting of the e-procurement June 30, 2025 PFMMPII/AF/DC-5/2023 36,000.00 49,092.60 6,750.00 system 22 Conduction of a third-party audit of the Electronic AF/PFMMPII/CQS-7/2024 100,000.00 - 100 000.00 June 30, 2025 Public Procurement system 23 Development and introduction of additional AF/PFMMPII/RFB-N-2/2024 210,000.00 - 210,000.00 June 30, 2026 functionality of the Human Resource Management Page 2 The World Bank Public Finance Management Modernization Project 2 (P150381) Planned Amount of signed Remaining unpaid Expected date of Description Activity reference number Amount, in USD contract in USD contract amount disbursing funds USD Information System of the Civil Service Agency under the President of the Republic of Tajikistan 24 IT Consultant on providing services to support the process of development, testing and introduction of June 30, 2025 Human Resources Management System in the Civil PFMMPII/AF/PIT-1/2024 50,000.00 30,970.00 21,970.00 Service Agency under the President of the Republic of Tajikistan 25 Conducting of final survey of satisfaction of the Completed external and internal users with the systems and AF/PFMMPII/DC-3/2022 30,000.00 37,905.00 0 procedures implemented by the project 26 Selection of a consultant for the development of a December 30, system of national certification of public internal AF/PFMMPII/CQS-4/2024 200,000.00 198,018.00 198,018.00 2025 auditors 27 Support to the Ministry of Finance of the RT on creation of relevant financial reporting forms in December 30, PFMIS of MoF of RT and their aggregation of data on AF/PFMMPII/CQS-3/2024 200,000.00 - 200,000.00 2025 the public sector (budget organizations and state- owned large enterprises) 28 Development of the centralized accounting module June 30, 2025 in the public sector, integrated with the public PFMMPII/DC-1/2023 880,000.00 880,000.00 528,000.00 financial management information system 29 June 30, 2025 Project IT Consultant AF/PFMMPII/SSS-1/2024 24,220.00 22,500.00 15,220.00 30 Procurement, supply and installation of server PFMMPII/NCB-12/2021 520,000.00 equipment for the developed system of electronic 579,605.28 114,282.51 June 30, 2025 procurement and data storage 31 Conduction a final survey of the satisfaction of June 30, 2025 external and internal users with the systems and AF/PFMMPII/DC-1/2024 30,000.00 29,865.50 29,865.50 procedures implemented by the Project 32 Providing advisory support to the Ministry of Finance of the Republic of Tajikistan in the course of AF/PFMMPII/SSS-2/2024 20,000.00 20,000.00 June 30, 2025 creating and introducing the accounting module in the public sector 33 Providing communication services to provide support of the employees of the Ministry of Finance of the Republic of Tajikistan and Chief Accountants AF/PFMMPII/DC-2/2024 19,000.00 19,000.00 March 1, 2025 of budget institutions in the period of introduction of new modules on cash management (M1), Page 3 The World Bank Public Finance Management Modernization Project 2 (P150381) Planned Amount of signed Remaining unpaid Expected date of Description Activity reference number Amount, in USD contract in USD contract amount disbursing funds USD liabilities management (M2) and assets management (M3). 34 IT Consultant for providing consulting services with the view of supporting and maintenance of e- procurement system of the Republic of Tajikistan AF/PFMMPII/PIT-2/2024 33,750.00 33,750.00 18,000.00 June 30, 2025 Total 5,337,970.00 4,029,026.11 3,560,288.72 Page 4 The World Bank Public Finance Management Modernization Project 2 (P150381) Table 3: Status of Results Indicators Indicator Current Status Final Date Target achieved/To be achieved PDO Results Indicators Improved effectiveness of public EU financing these activities, we support the indicator through our work on PIM and accounting PEFA Score B June 2026 expenditure reforms. There is a progress in those agencies in alighning expenditure with policy priorities. The realistic progress in this area will be assessed by PEFA Tajikistan, which is expected in 2025. Improved control of public Stock of expenditure arrears was 2.1% in 2023. Data on stock of arrears is not published, but is PEFA Score A June 2026 expenditure provided to external audit, the Government and the Parliament of Republc of Tajikistan. Improved accountability of public PEFA 2022 reports improvement in the score (now at B compared to C in PEFA 2017) for PEFA Score June 2025 expenditure completeness of financing statements (PI-29.1), noting that the annual financial reports cover the B+ majority of assets and liabilities (except the Public Investment Program and financial performance of state-owned enterprises). Improved accountability of public In 2023, the Chamber of Accounts conducted audits in 166 organizations, which represents around PEFA Score B June 2025 expenditures measured by the 80% of expenditures of central government entities. PEFA 2022 notes that in terms of submission of quality of financial audit (PI-26) reports for external audit (PI-29.2), financial reports are submitted to the Chamber of Accounts within 6 months of the end of the fiscal year. PEFA 2022 reports a score of D+ compared to PEFA 2017 score of C+ (both using 2016 PEFA methodology) for the dimension external audit (now numbered PI-30) primarily due to the observation that the Chamber of Accounts is not fully independent. Intermediate Results Indicators by Components Public Finance Management Modernization Additional functionalities (modules) Three modules are operational: cash management (M1), commitment control/liability management All modules June 2025 of TFMIS (commitment control, cash (M2), and asset management (M3). Accounting module is expected to be operational by the end June are management, payment order 2024. The interfaces developed to connect the HRMIS and TFMIS has reached production stage and operational processing, assets management and require additional work to formalize the processes to be used. for budgeting and commitments. payroll management) installed and Payment order processing module was installed and implemented earlier. operational Timeliness of annual financial reports PEFA 2022 score for the timeliness of submission of financial statements is B higher than the 2017 PEFA Score A June 2026 (PI-25ii) score of C. Target value for the indicator is PEFA Score A (2021). PEFA 2022 noted that annual financial reports cover the majority of assets and liabilities (except for Public Investment Program and financial performance of state-owned enterprises.) Previous target value of - The statement is submitted for external audit within 6 months of the end of the fiscal year (2019) - has been met. Specifically, since 2017, the financial reporting on a cash basis in accordance with budget classification is submitted to the Government of the Republic of Tajikistan, the Parliament of the Republic of Tajikistan and the External Audit (Chamber of Accounts of the Republic of Tajikistan) within 6 months of the end of the fiscal year. Page 5 The World Bank Public Finance Management Modernization Project 2 (P150381) Indicator Current Status Final Date Target achieved/To be achieved Audits performed and audited The target values are: 35% based on financial statements for FY 2020 (2021) and 50% based on 80% June 2026 financial statements submitted by financial statements for FY2021 (2022). In 2023, 17 large state-owned enterprises have conducted largest SOEs mandatory external audit for fiscal year 2022 which makes 63% of the total number of enterprises. Audit opinions of these enterprises are posted on the website of the Ministry of Finance. This is above the project final target. SOE performance monitoring The indicator is behind the target values for 2021 and 2022. The target values are: Foundation for Consistent June 2026 systematically conducted SOE performance monitoring system developed (2021) and First round of KPIs information collected monitoring and monitored (2022). Currently the Ministry of Finance monitors and analyzes the financial and of SOE economic activity of 27 large state-owned enterprises and societies which shares are owned by the performance state. Under additional financing of the “Public Finance Management Modernization Project” under using system the subcomponent “Accounting and financial reporting of state-owned enterprises”, the activities are developed planned to support the improvement of accounting, preparation of financial statements, under the development of a system for analyzing and monitoring the financial condition of state-owned Project enterprises. MOF contracted activities to support up to date IFRS translation and pilot IFRS transition in Tajik Railway SUE. The MOF and the Railway SUE leadership discussed this support during the mission and agreed in principle. Internal audits coverage is increased Fully achieved. PEFA 2022 scored coverage and quality of internal audit function at B - higher than PEFA Score B June 2024 and quality of internal audit function the 2017 score of C, both using the PEFA 2016 methodology and the dimension now numbered is risk-based and complies with PI26.1 international standards (PI-21i) PIM methodology is applied in PEFA 2022 score for public investment management (PI-11) is C+, higher than the 2017 score of D+ 3 pilots January 2025 ministries covering economic from PEFA 2017 (both using the same PEFA 2016 methodology. The Ministry of Economy hired a conducted analysis of investment proposals, consultant, who helped with developing methodology. Also the Ministry has advertised the bidding using PIM project selection, costing and for delivery and installation of PIM monitoring software. methodology monitoring developed by Project Improving Public Procurement Key procurement information is PEFA 2022 maintains the PEFA 2017 score of B for public access to procurement information, both PEFA Score A June 2026 made available to the public in a using the same PEFA 2016 methodology and now numbered PI-24.3.PEFA 2022 noted that at least 4 timely manner through appropriate out of 6 key procurement information is publicly available on the website of the APPGWS and the e- means (PI-19iii) GP portal (score ‘B’).Also, the works is currently underway to introduce the “AUCTION” method.All public procurement activities continue to be managed through the e-Procurement Portal. Moreover, the registration, budget plan uploads, getting budget authorization from TFMIS, announcement, bidding, evaluation and contract award processes have been substantially automated.According to the plan, SUE “Public Electronic Procurement System Development Center” should be created in the Public Procurement Agency (PPA).With the adoption of the Procurement Law, it was necessary to make changes and additions to (14) fourteen by-laws. The consultant has completed the development of five by-laws. Page 6 The World Bank Public Finance Management Modernization Project 2 (P150381) Indicator Current Status Final Date Target achieved/To be achieved Total value of contracts that were Fully achieved. PEFA 2017 already indicates end-target score of A has been reached and this was PEFA Score B December awarded through an open and further confirmed by PEFA 2022, both using PEFA 2016 methodology and the dimension 2024 competitive process (PI-19ii) procurement methods (using competitive) now numbered PI-24.2.PIU reports that within 2023 the Agency on Public Procurement of Goods, Works and Services under the Government of the Republic of Tajikistan has conducted 5025 procurement procedures through the Public e-Procurement Portal in the amount of 2 404 911 110,19 Tajik somoni based on the applications of procuring entities, out of which (97.5 %) procedures were conducted by open competitive methods (with unlimited participation) in the amount of 2 404 911 110,19 Tajik somoni (97.7%). Since 2024, the method “with unlimited participation” has been replaced by the “Open competition” method. Strengthening External Audit Evidence of follow up on audit Fully achieved. PEFA 2022 maintained the PEFA 2017 score of B for on external audit follow-up (now PEFA Score B December recommendations (in percent of numbered PI-30.3), both using the PEFA 2016 methodology. Moreover, as of the end of 2021, the 2024 audit recommendations) (PI-26iii) accomplishment of the audit recommendations is evaluated at the level of 100%. Under the Development Strategy of the Chamber of Accounts of the Republic of Tajikistan for 2019-2023, a procedure for monitoring the accomplishment of audit recommendations has been introduced, including the audit reporting form was updated with further involvement of responsible persons participating in the audit process (both audited persons and auditors). The launch of the accomplishment of the audit recommendations is also foreseen in the specialized audit software. Analysis of the updated form for audit reporting, with further involvement of responsible persons participated in the audit process (both audited persons and auditors), shows that that the recommendations on conducted audits are accomplished by all. Coverage of external audit (in According to preliminary data of the Chamber of Accounts the Republic of Tajikistan as of the end of PEFA Score B December percent of total expenditure) (PI-26i 2020, the central government entities representing 75% of total expenditures were covered by audits. 2024 PEFA 2022 maintained the PEFA 2017 score of C for audit coverage a standards (now numbered PI- 30.1), both using the PEFA 2016 methodology.PEFA 2022 noted the Chamber of Accounts has audited financial reports of the majority of central government entities, accounting for 64.1% of total government expenditure and revenue during 2018-2020. Audits covered revenue, expenditure, and debt, highlighting relevant significant issues, and were based on national ISSAI-compliant standards. In 2023, audit conducted in the central government entites represented about 80% of budget expenditure. Managing Public Administration The number of services available The e-gov portal contains live links to 5 existing electronic public services (e-visa, public procurement, 2 services June 2025 through e-Governance system licenses, tax services, and customs import certificates) and 20 static services. The platform has been are available (Text) developed and currently is managed by a new Agency for Innovation and Digitalization. on e- government system Page 7 The World Bank Public Finance Management Modernization Project 2 (P150381) Indicator Current Status Final Date Target achieved/To be achieved Timeliness of changes to personnel Fully achieved. PEFA 2022 maintained the PEFA 2017 score of A for management of payroll changes PEFA Score A December records and the payroll (months) (PI- (now numbered PI-23.2), both using the PEFA 2016 methodology. Accordingly, the end-target PEFA 2024 18ii) score has been achieved. Interfaces developed to connect the HRMIS and Payroll system with the MOF TFMIS reached production status although additional work is required to formalize the processes to be used for payroll budgeting and commitments. Project Management Project supported NGO publishing The report from the survey conducted on May-June 2021 and finalized on December 2021 shows the Final survey June 2025 reports on feedback received and need for increased awareness campaigns, continuous improvement of systems functionalities, and completed how this feedback has been used. training of users. The Project is supporting the deployment of awareness campaigns, training and (Yes/No) further system improvements under the AF. New survey have yet to be deployed. Beneficiaries satisfied with systems 40.80 The terms of conducting the final survey of satisfaction of external and internal users with the 60.00 December and procedures implemented by the systems and procedures implemented in the project were discussed between the Public Finance 2024 Project, as measured by user Management Modernization Project 2 and the PO SIC “Zerkalo”. A TOR was drawn up and the letter satisfaction surveys (percent of users No. 42 was sent to the Project Manager, World Bank Senior Public Sector Specialist on April 29, 2024. surveyed) (Percentage) The Terms of Reference is also uploaded in the STEP for the World Bank’s review. The firm has been contracted to conduct a new survey, which is expected to complete in December 2024. Percent of women beneficiaries 39.6 30.0 December satisfied with systems and 2025 procedures implemented by the Project, as measured by user satisfaction surveys (Percentage) Page 8 The World Bank Public Finance Management Modernization Project 2 (P150381) @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Results Yes Loan Closing Date Extension Yes Disbursements Estimates Yes Implementation Schedule Yes Components Yes Loan Cancellations No Development Objective No Reallocations No Safeguard Policies Triggered No Financial Management No ISDS No Procurement No MFD/PCE No Institutional Arrangement No Risks No Legal Covenants No Conditions No Implementation Modalities No Disbursements Arrangements No DDO No Clients No Appraisal Summary No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COMPONENTS Current Current Proposed Proposed Cost Action Component Name Cost (USD) Component Name (USD) 1. Public Finance 1. Public Finance Management 13,110,000.00 Revised 13,100,000.00 Management Modernization Modernization 2. Improving Public 2. Improving Public 3,200,000.00 Revised 2,860,000.00 Procurement Procurement 3. Strengthening External 3. Strengthening External 2,700,000.00 Revised 2,700,000.00 Audit Audit 4. Managing Public 4. Managing Public 5,300,000.00 Revised 4,900,000.00 Administration Reforms Administration Reforms 5. Project Management 2,690,000.00 Revised 5. Project Management 2,100,000.00 Page 9 The World Bank Public Finance Management Modernization Project 2 (P150381) TOTAL 27,000,000.00 25,660,000.00 COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IDA-56310-001 Effective 30-Jun-2021 30-Jun-2025 IDA-D0550-001 Effective 30-Jun-2021 30-Jun-2025 IDA-D7500-001 Effective 30-Jun-2025 30-Jun-2025 30-Jun-2026 30-Oct-2026 TF-A1735-001 Closed 30-Jun-2021 30-Sep-2021 DISBURSEMENTS Operation Dates & Projection Details Reasons to change the full Disbursement date and/or the projection Restructuring Implementation Start Date Operation Closing Date 01-Jun-2015 30-Jun-2025 Projected Date for Full Disbursement 31-Aug-2027 Expected Disbursements (in US $) (Absolute) Original Estimation at Preparation Actual Year Revised Estimation (Approval Package – 01 Jun 2015) FY2015 0.00 0.00 0.00 FY2016 0.00 1,000,000.00 1,000,000.00 Page 10 The World Bank Public Finance Management Modernization Project 2 (P150381) FY2017 0.00 1,251,501.00 1,251,501.76 FY2018 0.00 1,804,984.00 1,804,984.44 FY2019 0.00 2,128,661.00 2,128,661.05 FY2020 0.00 1,892,402.00 1,892,402.76 FY2021 0.00 4,025,973.00 4,025,973.39 FY2022 0.00 5,056,519.00 5,056,519.03 FY2023 0.00 2,430,995.00 2,430,995.68 FY2024 0.00 1,768,790.00 1,768,790.75 FY2025 0.00 2,000,000.00 1,007,326.35 FY2026 0.00 1,500,000.00 0.00 FY2027 0.00 0.00 0.00 FY2028 0.00 0.00 0.00 Page 11 The World Bank Public Finance Management Modernization Project 2 (P150381) RESULTS COUNTRY: Tajikistan Public Finance Management Modernization Project 2 @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes Improved effectiveness of PFM Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year PEFA score D for PI- Jan/2013 While the new law 04-Jun-2024 PDO Indicators by 27-Nov-2024 PEFA Score B Jun/2026 12 "On Strategic Objectives / Planning and State Outcomes 1. Forecasting of Improved Development" was effectiveness of PFM signed into law by IN01315955 the President of the ►Improved Revise Republic of effectiveness of Improved effectiveness of public Tajikistan in July public expenditure expenditure measured by the 2022, sectoral measured by the increased alignment of expenditure strategies reports increased alignment with policy priorities (PI-12) (Text) have yet to be of expenditure with developed and fully policy priorities (PI- costed. The 12) (Text, Custom) indicator will be Baseline Actual updated after (Previous) Actual October 2024 (Current) End Target mission. Vis-a-vis Value PEFA score D end-target, PEFA for PI-12 The Law of Page 12 The World Bank Public Finance Management Modernization Project 2 (P150381) 2022 reports a score the Republic of of C, an Tajikistan “On improvement over Strategic Planning PEFA 2017 of D+ for and State medium-term Forecasting” is perspective in adopted by the expenditure resolution of the budgeting (both Majlisi using PEFA 2016 Namoyandagon of methodology and the Majlisi Oli of the dimension now Republic of numbered PI-16 Tajikistan dated May instead of PI-12 per 25, 2022, No. 724 baseline that was and supported by using PEFA 2011 the resolution of Methodology). Majlisi Millii of the Majlisi Olii of the Republic of Tajikistan dated July 15, 2022, No. 301. PEFA 2022 reports a score of C, an improvement over PEFA 2017 of D+ for medium-term perspective in expenditure budgeting (both using PEFA 2016 methodology and dimension now numbered PI-16 instead of PI-12 per baseline that was using PEFA 2011 Methodology). Page 13 The World Bank Public Finance Management Modernization Project 2 (P150381) While the new law "On Strategic Planning and State Forecasting of Development" Comments on achieving targets From baseline PEFA score D for PI-12 (using 2011 methodology), PEFA 2017 reports improvement with a score of C (when using PEFA 2011 methodology). However, under PEFA 2017, PI-12 is now PI-16 using PEFA 2016 methodology). PI-16 score in PEFA 2017 was D+ while PEFA 2022 reports a score of C (using the same PEFA 2016 methodology) - an improvement overall. However, vis-a-vis the target values over time, the indicator is currently behind. The targets for 2021, 2022 and 2023 are: Statements of sector strategies exist for several major sectors (2021). Sectoral strategies reports exist and are fully calculated on cost, generally consistent with financial projections, for sectors representing 25% of primary expenditures (2022) and sectoral strategies reports exist and are fully calculated on cost, generally consistent with financial projections for sectors representing 50% of primary expenditures (2023) Improved control of public expenditure Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year PEFA score D+ for Jan/2013 Stock of expenditure 04-Jun-2024 With respect to the 27-Nov-2024 PEFA Score A Jun/2026 PI-4 arrears was 2.1% in target level of stock 2023. Data on stock of expenditure of arrears is not arrears for 2023, the published, but is PEFA 2022 noted provided to external that as of 2020, the audit, the stock of expenditure Revise Improved control of public Government and the arrears stood at expenditure measured by the stock Parliament of 2.3% in 2020 - near of expenditure payment arrears (PI-4) Republc of the end-target of no (Text) Tajikistan. more than 2%. PEFA 2022 reports a score of C+ for stock and monitoring of expenditure payment arrears, no change from PEFA 2017 (both using the Page 14 The World Bank Public Finance Management Modernization Project 2 (P150381) PEFA 2016 methodology and now numbered as PI-22 instead of PI- 4). Data on stock of arrears is not published, but is provided to external audit, the Government and the Parliament of Republic of Tajikistan. Comments on achieving targets From baseline PEFA scores D PI-4, PEFA 2017 scores show improvements to C+ (using PEFA 2011 Methodology). PEFA 2022 reports a score of C+ for stock and monitoring of expenditure payment arrears no change from PEFA 2017 (both using the PEFA 2016 methodology and now numbered as PI-22 instead of PI-4). However, vis-a-vis the target values, the indicator is behind in publishing the information. The target value of indicators in 2021 and 2023 are: Data on stock of arrears is published (2021) and Data on stock of arrears is published and it does not exceed 2% of total expenditure (2023). There is no specific target for 2022. Improved accountability of public expenditure Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year PEFA Score C+ for Jan/2013 PEFA 2022 reports 04-Jun-2024 PEFA 2022 reports 27-Nov-2024 PEFA Score B+ Jun/2026 PI-25 improvement in the improvement in the score (now at B score (now at B compared to C in compared to C in Revise PEFA 2017) for PEFA 2017) for Improved accountability of completeness of completeness of public expenditure measured by the financing financing quality of annual financial reports (PI- statements (PI- statements (PI- 25) (Text) 29.1), noting that 29.1), noting that the annual financial the annual financial reports cover the reports cover the majority of assets majority of assets and liabilities and liabilities Page 15 The World Bank Public Finance Management Modernization Project 2 (P150381) (except the Public (except the Public Investment Program Investment Program and financial and financial performance of performance of state-owned state-owned enterprises). enterprises). Comments on achieving targets From baseline PEFA score of PI-25i and PI-25iii of B and C, PEFA 2017 scores went down to C and D, respectively. The indicator is also behind the target value for 2021. Compared to PEFA 2017, PEFA 2022 scores for completeness of financial statements is B - an improvement (now numbered PI-29.1) and accounting standards (now numbered PI-29.3) is D - no change. Both PEFA 2017 and 2022 ae using 2016 PEFA Methodology. The target value for 2021 is a consolidated government statement is prepared annually and includes full information on revenue, expenditure and financial assets/liabilities. TPSAS national standards are applied. (2021). There are no intermediate targets from 2022 until the end-of-project. PEFA Score D for PI- Jan/2013 In 2023, the 04-Jun-2024 Awaiting 2022 27-Nov-2024 PEFA Score B Jun/2026 26 Chamber of report on audit Accounts conducted coverage of central audits in 166 government entities organizations, which representing at least represents around 75% of total 80% of expenditures expenditures. PEFA of central 2022 notes that in government terms of submission Revise entities. PEFA 2022 of reports for Improved accountability of notes that in terms external audit (PI- public expenditures measured by the of submission of 29.2), financial quality of financial audit (PI-26) reports for external reports are (Text) audit (PI-29.2), submitted to the financial reports are Chamber of submitted to the Accounts within 6 Chamber of months of the end Accounts within 6 of the fiscal year. months of the end PEFA 2022 reports a of the fiscal year. score of D+ PEFA 2022 reports a compared to PEFA score of D+ 2017 score of C+ compared to PEFA (both using 2016 Page 16 The World Bank Public Finance Management Modernization Project 2 (P150381) 2017 score of C+ PEFA methodology) (both using 2016 for the dimension PEFA methodology) external audit (now for the dimension numbered PI-30) external audit (now primarily due to the numbered PI-30) observation that the primarily due to the Chamber of observation that the Accounts is not fully Chamber of independent. Accounts is not fully independent. Comments on achieving targets PEFA 2022 reports a score of D+ compared to PEFA 2017 score of C+ (both using 2016 PEFA methodology) for the dimension external audit (now numbered PI-30) primarily due to the observation that the Chamber of Accounts is not fully independent. In terms of the target value for the indicator, latest data indicate it is on track to reach the target value for 2022. The target value for 2022 is: Audits cover central government entities representing at least 75% of total expenditures (2022). Intermediate Results Indicators by Components 1. Public Finance Management Modernization Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year none of the 5 Jan/2015 Three modules are 12-Jun-2024 Three modules are 27-Nov-2024 all 5 modules are Jun/2026 modules are operational: cash operational: cash operational (2024) Revise operational management (M1), management (M1), Additional functionalities commitment commitment (modules) of TFMIS (commitment control/liability control/liability control, cash management, payment management (M2), management (M2), order processing, assets management and asset and asset and payroll management) installed management (M3). management (M3). and operational (Text) Accounting module However, they have is expected to be yet to be rolled-out. operational by the In addition, the Page 17 The World Bank Public Finance Management Modernization Project 2 (P150381) end June 2024. The interfaces interfaces developed to developed to connect the HRMIS connect the HRMIS and TFMIS has and TFMIS has reached production reached production stage and require stage and require additional work to additional work to formalize the formalize the processes to be processes to be used for budgeting used. for budgeting and commitments. and commitments. Payment order processing module was installed and implemented earlier. Comments on achieving targets In terms of target values, the indicator has met the target for end-2021. No separate target for 2022. The target values for this indicator are: 3 modules operational (2021) and 4 modules operational (2023). PEFA Score B Jan/2015 PEFA 2022 score for 04-Jun-2024 PEFA 2022 score for 27-Nov-2024 PEFA Score A Jun/2026 the timeliness of the timeliness of submission of submission of financial statements financial statements is B higher than the is B higher than the 2017 score of C. 2017 score of C, Target value for the both using PEFA Revise indicator is PEFA 2016 methodology Timeliness of annual financial Score A (2021). PEFA and now numbered reports (PI-25ii) (Text) 2022 noted that as PI-29.2. annual financial reports cover the majority of assets and liabilities (except for Public Investment Program and financial Page 18 The World Bank Public Finance Management Modernization Project 2 (P150381) performance of state-owned enterprises.) Previous target value of - The statement is submitted for external audit within 6 months of the end of the fiscal year (2019) - has been met. Specifically, since 2017, the financial reporting on a cash basis in accordance with budget classification is submitted to the Government of the Republic of Tajikistan, the Parliament of the Republic of Tajikistan and the External Audit (Chamber of Accounts of the Republic of Tajikistan) within 6 months of the end of the fiscal year. Comments on achieving targets Target value for the indicator is PEFA Score A (2021). PEFA 2022 score for the timeliness of submission of financial statements is B higher than the 2017 score of C, both using PEFA 2016 methodology and now numbered as PI-29.2. PEFA 2022 noted that annual financial reports cover the majority of assets and liabilities (except for Public Investment Program and financial performance of state-owned enterprises.) Previous target value of - The statement is submitted for external audit within 6 months of the end of the fiscal year (2019) - has Page 19 The World Bank Public Finance Management Modernization Project 2 (P150381) been met. Specifically, since 2017, the financial reporting on a cash basis in accordance with budget classification is submitted to the Government of the Republic of Tajikistan, the Parliament of the Republic of Tajikistan an the External Audit (Chamber of Accounts of the Republic of Tajikistan) within 6 months of the end of the fiscal year. less than 30% Sep/2019 The target values 10-Jun-2024 Less than 30% - no 27-Nov-2024 80% Jun/2026 are: 35% based on change from financial statements baseline for FY 2020 (2021) and 50% based on financial statements for FY2021 (2022). In 2023, 17 large state-owned enterprises have conducted mandatory external Revise Audits performed and audited audit for fiscal year financial statements submitted by 2022 which makes largest SOEs (Text) 63% of the total number of enterprises. Audit opinions of these enterprises are posted on the website of the Ministry of Finance. This is above the project final target. Comments on achieving targets No change from baseline. This will be addressed by activities financed under Additional Financing, which have yet to be launched. The indicator is behind the target values for 2021 and 2022. The target values are: 35% based on financial statements for FY 2020 (2021) and 50% based on financial statements for FY2021 (2022). none Jun/2020 The indicator is 10-Jun-2024 No system in place - 27-Nov-2024 Consistent Jun/2026 Revise behind the target no change from monitoring of SOE SOE performance monitoring values for 2021 and baseline performance using systematically conducted (Text) 2022. The target system developed values are: under the Project Page 20 The World Bank Public Finance Management Modernization Project 2 (P150381) Foundation for SOE performance monitoring system developed (2021) and First round of KPIs information collected and monitored (2022). Currently the Ministry of Finance monitors and analyzes the financial and economic activity of 27 large state- owned enterprises and societies which shares are owned by the state. Under additional financing of the “Public Finance Management Modernization Project” under the subcomponent “Accounting and financial reporting of state-owned enterprises”, the activities are planned to support the improvement of accounting, preparation of financial Page 21 The World Bank Public Finance Management Modernization Project 2 (P150381) statements, development of a system for analyzing and monitoring the financial condition of state-owned enterprises. MOF contracted activities to support up to date IFRS translation and pilot IFRS transition in Tajik Railway SUE. The MOF and the Railway SUE leadership discussed this support during the mission and agreed in principle to Comments on achieving targets There is a progress. SOE Department is working on achieving these milestones. This will be addressed by activities financed under Additional Financing, which have yet to commence. The indicator is behind the target values for 2021 and 2022. The target values are: Foundation for SOE performance monitoring system developed (2021) and First round of KPIs information collected and monitored (2022). PEFA 2017 Score C Jun/2020 Fully achieved. PEFA 04-Jun-2024 Fully achieved. PEFA 27-Nov-2024 PEFA Score B Jun/2026 2022 scored 2022 scored coverage and quality coverage and quality Revise of internal audit of internal audit Internal audits coverage is function at B - function at B - increased and quality of internal higher than the higher than the audit function is risk-based and 2017 score of C, 2017 score of C, complies with international standards both using the PEFA both using the PEFA (PI-21i) (Text) 2016 methodology 2016 methodology and the dimension and the dimension now numbered now numbered PI26.1. PI26.1. Page 22 The World Bank Public Finance Management Modernization Project 2 (P150381) Comments on achieving targets PEFA 2022 scored coverage and quality of internal audit function at B - higher than the 2017 score of C, both using the PEFA 2016 methodology and the dimension now numbered PI-26.1. PEFA 2022 noted that following amendments to the internal audit legislation in 2020 and new government resolution on the procedure for creation and liquidation of internal audit units in public sector entities in 2021, internal audit is now operationalized in 10 central government entities, representing most of total budgeted expenditures and for central government entities collecting most of budgeted government revenues. The indicator is behind the target value for 2022. The target value for 2022 is: Internal audit coverage was at least 20% of central government and meeting international standards that include risk-based auditing (2022). Project is hiring a company, which will help with achieving this indicator. No methodology in Jun/2020 PEFA 2022 score for 10-Jun-2024 Methodology in 27-Nov-2024 3 pilots conducted Jun/2026 place public investment place. PEFA 2022 using the PIM management (PI-11) score for public methodology is C+, higher than investment developed by the the 2017 score of D+ management (PI-11) Project from PEFA 2017 is C+, higher than (both using the the 2017 score of D+ same PEFA 2016 from PEFA 2017 methodology. The (both using the Ministry of Economy same PEFA 2016 RevisePIM methodology is applied in hired a consultant, methodology). ministries covering economic analysis who helped with Based on the study of investment proposals, project developing tour to Poland, and selection, costing and monitoring. methodology. Also in accordance with (Text) the Ministry has international advertised the standards, bidding for delivery Methodological and installation of Recommendations PIM monitoring (methodology) have software. been developed ON THE DEVELOPMENT OF A PROJECT REQUEST AND STRENGTHENING MONITORING OF Page 23 The World Bank Public Finance Management Modernization Project 2 (P150381) THE PUBLIC INVESTMENT PROGRAM. The software on monitoring PIM will be implemented soon. Comments on achieving targets This will be addressed by activities financed under Additional Financing, which have yet to commence. PEFA 2022 score for public investment management (PI-11) is C+, higher than the 2017 score of D+ from PEFA 2017 (both using the same PEFA 2016 methodology). The improvement is primarily due to the adoption of the relevant government resolution in 2018 which provided for investment project selection to be undertaken on the basis of standard selection criteria. The indicator is behind the target value for 2021 and 2022. The target values are: PIM methodology developed (2021) and 1 pilot conducted using the PIM methodology developed under the Project (2022). Other large-scale goals of the PIP reform will be achieved under additional financing. The end targets are indicated in the column "End targets" above. 2. Improving Public Procurement Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year PEFA Score B Jan/2015 PEFA 2022 04-Jun-2024 PEFA 2022 27-Nov-2024 PEFA Score A Jun/2026 maintains the PEFA maintains the PEFA 2017 score of B for 2017 score of B for public access to public access to procurement procurement information, both information, both using the same PEFA using the same PEFA Key procurement information is 2016 methodology 2016 methodology made available to the public in a and now numbered and now numbered timely manner through appropriate PI-24.3.PEFA 2022 PI-24.3. PEFA 2022 means (PI-19iii) (Text) noted that at least 4 noted that at least 4 out of 6 key out of 6 key procurement procurement information is information is publicly available on publicly available on the website of the the website of the APPGWS and the e- APPGWS and the e- Page 24 The World Bank Public Finance Management Modernization Project 2 (P150381) GP portal (score GP portal (score ‘B’). ‘B’).Also, the works Also, works are is currently currently underway underway to to introduce the introduce the "AUCTION" method. “AUCTION” All public method.All public procurement procurement activities continue activities continue to be managed to be managed through the e- through the e- Procurement Portal. Procurement Portal. Moreover, the Moreover, the registration, budget registration, budget plan uploads, plan uploads, getting budget getting budget authorization from authorization from TFMIS, TFMIS, announcement, announcement, bidding, evaluation bidding, evaluation and contract award and contract award processes have been processes have been substantially substantially automated. automated.Accordin According to the g to the plan, SUE plan, the State “Public Electronic Unitary Enterprise Procurement “Electronic Public System Procurement Development System Center” should be Development created in the Public Center” should be Procurement created in the Public Agency (PPA).With Procurement the adoption of the Agency. By adopting Procurement Law, it the Procurement was necessary to Law, it was Page 25 The World Bank Public Finance Management Modernization Project 2 (P150381) make changes and necessary to make additions to (14) amendments and fourteen by-laws. additions to The consultant has fourteen (14) by- completed the laws. The consultant development of five has completed the by-laws. development of five by-laws, two of Comments on achieving targets Since the beginning of 2021, 100% of procuring entities have been carrying out procurement activities through the Unified Public Procurement Portal https://eprocurement.gov.tj. The target value for the indicator in 2021 is: 100% of the accredited procuring entities covered by the annual procurement report (2021). The training on the procedures of the new Procurement Law was not conducted, since the completion of the training program also requires the completion of the development of by-laws. The integration of the e-GP system of PPA and TFMIS is now planned to be completed by the end of 2024, when the TFMIS document management system will be operational. An independent audit of the e-GP system is planned for the current period by engaging a firm, to verify and provide an independent report, guarantees and recommendations on the electronic procurement system based on business requirements as well as to ensure maximization of control and mitigation of risks. PEFA Score C Jan/2015 Fully achieved. PEFA 04-Jun-2024 Fully achieved. PEFA 27-Nov-2024 PEFA Score B Jun/2026 2017 already 2017 already indicates end-target indicates end-target score of A has been score of A has been reached and this reached and this was further was further confirmed by PEFA confirmed by PEFA 2022, both using 2022, both using Total value of contracts that were PEFA 2016 PEFA 2016 awarded through an open and methodology and methodology and competitive process (PI-19ii) (Text) the dimension the dimension procurement procurement methods (using methods (using competitive) now competitive) now numbered PI- numbered PI- 24.2.PIU reports 24.2.PIU reports that within 2023 the that within 2023 the Agency on Public Agency on Public Procurement of Procurement of Page 26 The World Bank Public Finance Management Modernization Project 2 (P150381) Goods, Works and Goods, Works and Services under the Services under the Government of the Government of the Republic of Republic of Tajikistan has Tajikistan has conducted 5025 conducted 5025 procurement procurement procedures through procedures through the Public e- the Public e- Procurement Portal Procurement Portal in the amount of 2 in the amount of 2 404 911 110,19 Tajik 404 911 110,19 Tajik somoni based on somoni based on the applications of the applications of procuring entities, procuring entities, out of which (97.5 out of which (97.5 %) procedures were %) procedures were conducted by open conducted by open competitive competitive methods (with methods (with unlimited unlimited participation) in the participation) in the amount of 2 404 911 amount of 2 404 911 110,19 Tajik somoni 110,19 Tajik somoni (97.7%). Since 2024, (97.7%). Since 2024, the method “with the method “with unlimited unlimited participation” has participation” has been replaced by been replaced by the “Open the “Open competition” competition” method. method. Comments on achieving targets PEFA 2022 maintained the score of A assigned by PEFA 2017 for using competitive procurement methods. PEFA 2022 noted that in 2021, 98.3% of all procurement was Page 27 The World Bank Public Finance Management Modernization Project 2 (P150381) conducted following competitive methods (score ‘A’), with the threshold of TJS 750,000 per contract. PIU reports that within 5 months of 2022 the Agency on Public Procurement of Goods, Works and Services under the Government of the Republic of Tajikistan has conducted 1545 procurement procedures through the Public e-Procurement Portal in the amount of 842 992 919 Tajik somoni based on the applications of procuring entities, out of which 1507 procedures were conducted by open competitive methods (97.5 %) in the amount of 823 500 489 Tajik somoni (97.7%).That said, the indicator is slightly behind the target value set for 2021. The target for 2021 is - 100% of contracts that exceed the nationally established monetary threshold for small purchases awarded in open and competitive process. When contracts are awarded by method other than open competition, they are justified by legislation. (2021). 3. Strengthening External Audit Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year PEFA Score D Jul/2015 Fully achieved. PEFA 04-Jun-2024 Fully achieved. PEFA 27-Nov-2024 PEFA Score B Jun/2026 2022 maintained the 2022 maintained the PEFA 2017 score of PEFA 2017 score of B for on external B for on external audit follow-up audit follow-up (now numbered PI- (now numbered PI- 30.3), both using the 30.3), both using the Evidence of follow up on audit PEFA 2016 PEFA 2016 recommendations (in percent of methodology. methodology. audit recommendations) (PI-26iii) Moreover, as of the Moreover, as of the (Text) end of 2021, the end of 2021, the accomplishment of accomplishment of the audit the audit recommendations is recommendations is evaluated at the evaluated at the level of 100%. Under level of 100%. Under the Development the Development Page 28 The World Bank Public Finance Management Modernization Project 2 (P150381) Strategy of the Strategy of the Chamber of Chamber of Accounts of the Accounts of the Republic of Republic of Tajikistan for 2019- Tajikistan for 2019- 2023, a procedure 2023, a procedure for monitoring the for monitoring the accomplishment of accomplishment of audit audit recommendations recommendations has been has been introduced, introduced, including the audit including the audit reporting form was reporting form was updated with updated with further involvement further involvement of responsible of responsible persons persons participating in the participating in the audit process (both audit process (both audited persons and audited persons and auditors). The auditors). The launch of the launch of the accomplishment of accomplishment of the audit the audit recommendations is recommendations is also foreseen in the also foreseen in the specialized audit specialized audit software. Analysis of software. Analysis of the updated form the updated form for audit reporting, for audit reporting, with further with further involvement of involvement of responsible persons responsible persons participated in the participated in the audit process (both audit process (both Page 29 The World Bank Public Finance Management Modernization Project 2 (P150381) audited persons and audited persons and auditors), shows auditors), shows that that the that that the recommendations recommendations on conducted audits on conducted audits are accomplished by are accomplished by all. all. Comments on achieving targets The indicator has surpassed the target value for 2021. The target value is: 90% percent of audit recommendations are accomplished in time (2021). Likewise, the end-target of a PEFA Score of B has been achieved. As of end 2021, the accomplishment of the audit recommendations is evaluated at the level of 100%. Under the Development Strategy of the Chamber of Accounts of the Republic of Tajikistan for 2019-2023, a procedure for monitoring the accomplishment of audit recommendations has been introduced, icluding the audit reporting form was updated with further involvement of responsible persons participating in the audit process (both audited persons and auditors). The launch of the accomplishment of the audit recommendations is also foreseen in the specialized audit software. As of the end of 2021, the accomplishment of the audit recommendations is evaluated at the level of 100%. Analysis of the updated form for audit reporting, with further involvement of responsible persons participated in the audit process (both audited persons and auditors), shows that that the recommendations on conducted audits are accomplished by all audited bodies. PEFA Score D Jan/2015 According to 04-Jun-2024 According to 27-Nov-2024 PEFA Score B Jun/2026 preliminary data of preliminary data of the Chamber of the Chamber of Accounts the Accounts the Republic of Republic of Coverage of external audit (in Tajikistan as of the Tajikistan as of the percent of total expenditure) (PI-26i) end of 2020, the end of 2020, the (Text) central government central government entities representing entities representing 75% of total 75% of total expenditures were expenditures were covered by audits. covered by audits. Page 30 The World Bank Public Finance Management Modernization Project 2 (P150381) .PEFA 2022 Awaiting updates for maintained the PEFA CY21 and CY22. 2017 score of C for PEFA 2022 audit coverage a maintained the PEFA standards (now 2017 score of C for numbered PI-30.1), audit coverage a both using the PEFA standards (now 2016 numbered PI-30.1), methodology.PEFA both using the PEFA 2022 noted the 2016 methodology. Chamber of PEFA 2022 noted Accounts has the Chamber of audited financial Accounts has reports of the audited financial majority of central reports of the government majority of central entities, accounting government for 64.1% of total entities, accounting government for 64.1% of total expenditure and government revenue during expenditure and 2018-2020. Audits revenue during covered revenue, 2018-2020. Audits expenditure, and covered revenue, debt, highlighting expenditure, and relevant significant debt, highlighting issues, and were relevant significant based on national issues, and were ISSAI-compliant based on national standards. In 2023, ISSAI-compliant audit conducted in standards. the central government entites represented about 80% of budget expenditure. Page 31 The World Bank Public Finance Management Modernization Project 2 (P150381) Comments on achieving targets According to the results of PEFA 2017 the central government entities representing less than 50% of total expenditures were covered by audits. From PEFA baseline score of D for PI-26i, PEFA 2017 shows improvement with score of C, using 2011 methodology. PEFA 2022 maintained the PEFA 2017 score of C for external audit coverage and standards (now numbered P1-30.1), both using the PEFA 2016 methodology. The indicator meets the target values for 2020 and 2021. The target for 2020 and 2021 are: Central government entities, representing are 60% of total expenditures are audited annually (2020) and Central government entities, representing 75% of total expenditures are audited annually (2021).< 4. Managing Public Administration Reforms Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year No services available Jan/2015 The e-gov portal 04-Jun-2024 The e-gov portal 27-Nov-2024 2 services available Jun/2026 on e-Gov system contains live links to contains live links to on e-gov system 5 existing electronic 5 existing electronic public services (e- public services (e- visa, public visa, public procurement, procurement, licenses, tax licenses, tax services, and services, and customs import customs import certificates) and 20 certificates) and 20 The number of services available static services. The static services. The through e-Governance system platform has been platform has been (Text) developed and developed but currently is remains a pilot until managed by a new the proposed new Agency for Agency for Innovation and Innovation and Digitalization. Digitalization is established. Comments on achieving targets The indicator has met the target value for 2021. The target is - Implementation strategy approved and rolled out (2021). Likewise, the e-gov platform has been developed but has yet to be operationalized and is awaiting the establishment of a new agency for digitalization. The work under the Project is limited to completing the platform with pilot links to the selected e-services. Page 32 The World Bank Public Finance Management Modernization Project 2 (P150381) The indicator has met the target value for 2021. The target is - Implementation strategy approved and rolled out (2021). Likewise, the e-gov platform has been developed but has yet to be operationalized and is awaiting the establishment of a ne agency for digitalization. Work under the Project is limited to completing the platform with pilot links to selected e-services. PEFA Score B Jan/2013 Fully achieved. PEFA 04-Jun-2024 Fully achieved. PEFA 27-Nov-2024 PEFA Score A Jun/2026 2022 maintained the 2022 maintained the PEFA 2017 score of PEFA 2017 score of A for management A for management of payroll changes of payroll changes (now numbered PI- (now numbered PI- 23.2), both using the 23.2), both using the PEFA 2016 PEFA 2016 methodology. methodology. Accordingly, the Accordingly, the end-target PEFA end-target PEFA score has been score has been achieved. Interfaces achieved. Interfaces developed to developed to Timeliness of changes to personnel connect the HRMIS connect the HRMIS records and the payroll (months) (PI- and Payroll system and Payroll system 18ii) (Text) with the MOF TFMIS with the MOF TFMIS reached production reached production status although status although additional work is additional work is required to required to formalize the formalize the processes to be processes to be used for payroll used for payroll budgeting and budgeting and commitments. commitments. Comments on achieving targets All changes in personnel are taken into account by the personnel service. All changes upon their accomplishment are sent to the accounting department. Every month, when calculating salaries. the Accounting department takes into account all changes in staff in a mandatory Page 33 The World Bank Public Finance Management Modernization Project 2 (P150381) manner. At the moment, all these operations are carried out manually and in hard copy. Some public institution have special software for personnel accounting, payroll accounting and payment. 5. Project Management Revised Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year No Sep/2015 Yes 04-Jun-2024 Yes 27-Nov-2024 Yes Jun/2026 Comments on achieving targets The report from the survey conducted on May-June 2021 and finalized on December 2021 Project supported NGO publishing reports on feedback received and shows the need for increased awareness campaigns, continuous improvement of systems how this feedback has been used. functionalities, and training of users. The Project is supporting the deployment of awareness (Yes/No) campaigns, training and further system improvements under the AF. New survey have yet to be deployed. 0.00 Sep/2015 40.80 The terms of 22-May-2024 40.80 The terms of 22-May-2024 60.00 Jun/2026 conducting the final conducting the final survey of survey of satisfaction of satisfaction of external and external and internal users with internal users with the systems and the systems and procedures procedures Beneficiaries satisfied with systems implemented in the implemented in the and procedures implemented by the project were project were Project, as measured by user discussed between discussed between satisfaction surveys (percent of users the Public Finance the Public Finance surveyed) (Percentage) Management Management Modernization Modernization Project 2 and the PO Project 2 and the PO SIC “Zerkalo”. A TOR SIC “Zerkalo”. A TOR was drawn up and was drawn up and the letter No. 42 the letter No. 42 was sent to the was sent to the Project Manager, Project Manager, Page 34 The World Bank Public Finance Management Modernization Project 2 (P150381) World Bank Senior World Bank Senior Public Sector Public Sector Specialist on April Specialist on April 29, 2024. The Terms 29, 2024. The Terms of Reference is also of Reference is also uploaded in the uploaded in the STEP for the World STEP for the World Bank’s review. The Bank’s review. The firm has been firm has been contracted to contracted to conduct a new conduct a new survey, which is survey, which is expected to expected to complete in August complete in August 2024. 2024. Comments on achieving targets No update since last ISR. New survey have yet to be deployed at the end March 2024. The indicator (total beneficiaries and women beneficiaries) met the target values for 2021 and 2022. The targets are: 30.00 (2021) and 40.00 (2022) for overall. The target for women beneficiaries is 30 for all years. The 2021 survey results indicate a significant increase in satisfaction levels by total beneficiaries; however there is a reduction in satisfaction levels for women beneficiaries when compared to the baseline survey conducted in 2019. The average result of system users' complete satisfaction from the 3 systems (TFMIS 47.5%, E-Procurement 43.4%, E-Government 31.5%) is 40.8% according to the survey conducted during the period May-June 2021 with final report issued in December 2021. The target group of the survey were: the civil servants, suppliers or contractors of works and services, including procuring organizations, as well as the population of the Republic of Tajikistan aged from 18 up to 60 years old. The total sample size was 1200 respondents almost double the baseline survey of 760 respondents. With respect to women users/beneficiaries, their complete satisfaction levels fell from baseline as of the 2021 satisfaction survey. Further reflection is required to understand the decline in women users satisfaction and thereafter an action plan would need to be developed to reverse the decline. Page 35 The World Bank Public Finance Management Modernization Project 2 (P150381) Percent of women 0.00 Sep/2015 39.57 04-Jun-2024 39.57 04-Jun-2024 30.00 Jun/2026 beneficiaries satisfied with systems and procedures implemented by the Project, as measured by user satisfaction surveys (Percentage) Page 36