Public Disclosure Copy The World Bank Implementation Status & Results Report 2021 Afghanistan Incentive Program Development Policy Grant (P176137) 2021 Afghanistan Incentive Program Development Policy Grant (P176137) SOUTH ASIA | Afghanistan | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Development Policy Lending | FY 2021 | Seq No: 1 | ARCHIVED on 20-Jan-2022 | ISR50038 | Implementing Agencies: ISLAMIC REPUBLIC OF AFGHANISTAN, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 24-Jun-2021 Effectiveness Date: 30-Jun-2021 Original Closing Date: 30-Jun-2022 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Program Development Objective (from Program Document) Program Development Objectives are: i) supporting sustainability, inclusivity, and transparency in public finances and the civil service; and ii) strengthening the institutional and regulatory framework to support recovery from COVID-19 through management of risks and improved governance. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Unsatisfactory Overall Implementation Progress (IP) -- Unsatisfactory Overall Risk Rating -- High Implementation Status and Key Decisions With the collapse of the de facto government on August 15, 2021, the Bank paused all disbursements in the its Afghanistan portfolio, drawing from principles and procedures in OP/BP 7.30. Recognizing that the current situation makes it improbable that projects can be effectively implemented, the Bank suspended disbursements in whole under the 2021 Incentive Program Development Policy Grant (2021 IP-DPG) Operation based on inadequate progress against policy actions supported under the program, and the absence of an adequate macroeconomic policy framework. The General Conditions (for IDA grants) and the Standard Conditions (for trust fund grants), which are incorporated by reference in the Legal Agreements of the 2021 IP-DPG, provide that the Bank may, by notice to the Recipient, suspend, in whole or in part, the right of the Recipient to make withdrawals from a Grant Account if an extraordinary situation has arisen which makes it improbable that the Projects can be carried out or that Afghanistan will be able to perform its obligations under the respective Legal Agreements. This ISR documents the decision to cancel the project based on the grounds explained above. Risks Systematic Operations Risk-rating Tool 1/20/2022 Page 1 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report 2021 Afghanistan Incentive Program Development Policy Grant (P176137) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- High Macroeconomic High -- High Sector Strategies and Policies Substantial -- High Technical Design of Project or Program Substantial -- Substantial Institutional Capacity for Implementation and High -- High Sustainability Fiduciary Substantial -- Substantial Environment and Social Substantial -- Substantial Stakeholders Substantial -- High Other High -- High Overall High -- High Results Results Indicators Supporting sustainability, transparency, and inclusivity in the civil service and public finances IN01094673 ►Proportion of new tashkeel positions (disaggregated by gender) approved through a unified, transparent process (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 90.00 Date 31-Dec-2020 -- 17-Jan-2022 31-Dec-2021 IN01094674 ►Allowances as a share of wage bill expenditures (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 -- 25.00 22.00 Date 31-Dec-2020 -- 17-Jan-2022 31-Dec-2022 IN01094766 ►Percent of new entrants to the public service (civil service and armed forces, but excluding NTAs) over the previous year enrolled in a defined contribution pension program (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 90.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094767 1/20/2022 Page 2 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report 2021 Afghanistan Incentive Program Development Policy Grant (P176137) ►Number of Ministries/Agencies provided with training on the revised Code of Conduct and on procedure for handling complaints. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094768 ►Number of registered VAT taxpayers (gender disaggregated for individuals and entrepreneurs) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 700.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094769 Number of registered female VAT taxpayers (individuals and entrepreneurs) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094771 ►The time required to prepare, file, and pay value added or sales tax, profit tax and labor taxes and contributions (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 270.00 -- 270.00 230.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094772 ►TCCs with digital signatures as a proportion of total TCCs issued (gender disaggregated for individuals and entrepreneurs) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 0.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094773 Digital examination reports as a proportion of goods declarations selected for examination (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094774 ►Proportion of government payments processed electronically (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 75.00 1/20/2022 Page 3 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report 2021 Afghanistan Incentive Program Development Policy Grant (P176137) Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094775 ►Audited financial data on COVID-19 expenditures is publicly available (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 Strengthening the institutional and regulatory framework to support recovery from COVID-19 IN01094675 ►Commercial losses as a percentage of supply (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.60 -- 16.60 15.00 Date 31-Dec-2020 -- 17-Jan-2022 31-Dec-2022 IN01094781 ►Number of regulations and contract templates for the natural gas value chain developed by AOGRA and approved by the appropriate legal authority (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094782 ►SOB corporate governance requirements specified in the State-Owned Banks Ownership Policy are met (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 IN01094783 ►Afghanistan score against PEFA indicator PI-10.3 on fiscal risk reporting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value D -- D C Date 31-Dec-2020 -- 17-Jan-2021 31-Dec-2021 Data on Financial Performance Disbursements (by loan) 1/20/2022 Page 4 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report 2021 Afghanistan Incentive Program Development Policy Grant (P176137) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P176137 IDA-D8510 Effective USD 132.00 132.00 0.00 131.07 0.00 100% P176137 TF-B5789 Effective USD 300.00 300.00 0.00 0.00 300.00 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P176137 IDA-D8510 Effective 24-Jun-2021 29-Jun-2021 30-Jun-2021 30-Jun-2022 30-Jun-2022 P176137 TF-B5789 Effective 24-Jun-2021 29-Jun-2021 30-Jun-2021 30-Jun-2022 30-Jun-2022 Tranches Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/20/2022 Page 5 of 5