The World Bank Report No: ISR8662 Implementation Status & Results Yemen, Republic of Yemen Public Finance Modernization Project (P117363) Public Disclosure Copy Operation Name: Yemen Public Finance Modernization Project (P117363) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 02-Apr-2013 Country: Yemen, Republic of Approval FY: 2011 Product Line: IBRD/IDA Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 20-Dec-2010 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 05-Aug-2013 Last Archived ISR Date 04-Jul-2012 Effectiveness Date 19-Jan-2011 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project's development objective (PDO) is to improve the efficiency and transparency of management of public finance by providing decision-support systems and building capacity of public finance management institutions. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Enhancing Decision Making Mechanism of Budget Management 1.00 Improving Financial Management Information Systems 6.55 Enhancing capacity of public procurement institutions 1.02 Strengthening Institutional Capacity of COCA 0.60 Project Management 1.26 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The Project was approved on December 20, 2010 and became effective on January 19, 2011. Soon thereafter, a political turmoil started in the country, as a consequence of which, the Bank had to suspend disbursements under the Yemen portfolio, with effect from July 28, 2011. The suspensions were lifted on January 20, 2012. The PMU has been able to Page 1 of 7 The World Bank Report No: ISR8662 carry out most of its planned activities to-date. Against the project cost of XDR7.64 million, an amount of XDR2.10 million (28% of the project cost) has been disbursed in just about one year. The progress towards achieving the outcomes is ongoing and the set targets have all been achieved. The key achievements since the start of the project have been as follows: (i) Public Disclosure Copy AFMIS rolled-out in 13 additional central government ministries and 3 additional central government departments; (ii) LGMIS rolled out to 16 new Project Management Units (PMUs); (iii) operational and technical support to units implementing both AFMIS and LGMIS provided; (iv) Commitment Control System piloted in 5 ministries; (v) Cash Management System piloted in 5 pilot ministries; (vi) High Tender Board (HTB) provided training on public procurement as per target; (vii) Mapping of business processes in the Government Accounts and the Economic Units departments of the Ministry of Finance completed; (viii) Central Organization for Control and Audit (COCA) provided training as per target; and (ix) Strategy for High Authority for Tender Control (HATC) has been prepared. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Efficiency of PFM measured by number of Number Value 10.00 12.00 18.00 relevant 20 PEFA dimensions with scores of Date 30-Jun-2008 07-Feb-2013 30-Jun-2015 #B# and above. Comments This was based upon the The PMU has established an This is to be measured by PEFA Assessment of internal monitoring PEFA Assessment at the end 2008-2009 and verified at the mechanism to monitor the of the project (2015). start of the project. PEFA indicators internally. Two more targeted PEFA dimensions (PI-12 (i) and PI-19 (iii)) have achieved a PEFA score of 'B". These results have been measured by the PMU and verified by the Bank's Task Team. Average of score of relevant 20 PEFA Number Value 2.30 2.80 3.30 dimensions measuring the efficiency of PFM Public Disclosure Copy Sub Type Supplemental Percentage of relevant 20 PEFA dimensions Percentage Value 50.00 70.00 90.00 with scores of 'B' and above Sub Type Supplemental Page 2 of 7 The World Bank Report No: ISR8662 Transparency in PFM measured by the score Number Value 3.00 4.00 5.00 of PEFA Indicator PI-10 for Public Access to Date 30-Jun-2008 07-Feb-2013 30-Jun-2015 Key Fiscal Information. Comments The PEFA Score of 'C' The PMU has established an The score of 5 corresponds Public Disclosure Copy corresponds to the score of 3 internal monitoring with PEFA score of 'A' and mechanism to monitor the will be measured by PEFA PEFA indicators internally. Assessment in the third year These results have been at the end of the project measuredby the PMU and (2015). found that the country has now achieved 'B' score as per PEFA assessment. This has been verified by the Bank's Task Team. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target COCA has developed and approved a mid and Yes/No Value No No Yes Long-term Strategic Plan (4.3) Date 07-Feb-2013 31-Dec-2015 Comments Value of Investment Projects in the Capital Amount(USD) Value 652000000.00 150000000.00 Budget (CB) that are not included in the Public Date 01-Jan-2009 07-Feb-2013 30-Jun-2015 Investment Plan (PIP) Comments This value could not be determined at present mission, but baseline and final targets remain valid. Percentage of Capital Budget (CB) that are not Percentage Value 37.00 10.00 included in the Public Investment Plan (PIP) Sub Type Supplemental Number of 30 Central Government Ministries in Number Value 0.00 9.00 30.00 which Commitment Control System is Date 01-Jan-2011 07-Feb-2013 30-Jun-2015 Public Disclosure Copy operational Comments Percentage of 30 Central Government Percentage Value 0.00 30.00 100.00 Ministries in which Commitment Control Sub Type System is Operational Supplemental No. of Governorates in which AFMIS is Number Value 0.00 0.00 18.00 operational - Core Modules Date 01-Jan-2011 07-Feb-2013 31-Dec-2013 Comments Page 3 of 7 The World Bank Report No: ISR8662 Number with Extended Modules Number Value 0.00 0.00 11.00 Sub Type Supplemental Public Disclosure Copy No. of PMUs in which LGMIS is operational Number Value 3.00 32.00 36.00 Date 01-Jan-2011 07-Feb-2013 31-Dec-2013 Comments This includes 20 World Bank PMUs and 12 IFAD units Average Lead time for disbursement Days Value 40.00 10.00 8.00 application process Sub Type Supplemental Number of 30 Central Government Ministries in Number Value 0.00 9.00 30.00 which Cash Management System is Date 01-Jan-2011 07-Feb-2013 30-Jun-2015 operational Comments Percentage of 30 Central Government Percentage Value 0.00 100.00 Ministries in which Cash Management System Sub Type is Operational Supplemental Process Simplification Plan of Ministry of Yes/No Value No Yes Yes Finance developed Date 01-Jan-2011 07-Feb-2013 31-Dec-2012 Comments No. of Functions in Ministry of Finance in which Number Value 0.00 0.00 2.00 process simplification implemented Sub Type Supplemental No. of Central Government Ministries in which Number Value 4.00 17.00 30.00 AFMIS is operational - Core Modules Date 01-Jan-2011 07-Feb-2013 31-Dec-2013 Comments No. with Extended Modules Number Value 0.00 0.00 30.00 Public Disclosure Copy Sub Type Supplemental No. of Central Government Departments in Number Value 0.00 3.00 11.00 which AFMIS is operational - Core Modules Date 01-Jan-2011 07-Feb-2013 31-Dec-2013 Comments Number with Extended Modules Number Value 0.00 0.00 11.00 Sub Type Supplemental Page 4 of 7 The World Bank Report No: ISR8662 Number of procurement-related government Number Value 0.00 708.00 1500.00 staff trained on the Provisions of Law No. 23 of Date 07-Feb-2013 31-Dec-2015 2007 and its Executive Bylaws (3.1) Comments Public Disclosure Copy Capacity of Fiscal Institute to impart Yes/No Value No No Yes procurement training assessed and their Date 07-Feb-2013 31-Dec-2015 capacity building plan developed and delivered Comments (3.2) Capacity Building Program of Fiscal Institute Text Value 0 0 X3 delivered to ‘X’ no. of Trainers Sub Type Supplemental Strategy and Bylaws of HATC developed (3.3) Yes/No Value No Yes Yes Date 07-Feb-2013 31-Dec-2015 Comments Contract Registration and Public Grievance Yes/No Value No No Yes Management System operational(Y/N) Sub Type Supplemental 20 of relevant COCA staff are trained to Number Value 0.00 14.00 20.00 become trainers on AFMIS modules and Date 07-Feb-2013 31-Dec-2015 auditing in IT-based environment. (4.1) Comments 300 of relevant COCA staff trained on the Number Value 0.00 35.00 300.00 reforms in budget preparation & execution, Date 07-Feb-2013 31-Dec-2015 improved accounting, and public procurement Comments 40 of relevant COCA staff trained on special Number Value 0.00 0.00 40.00 revenue sectors, and consolidated final Date 07-Feb-2013 31-Dec-2015 accounts. (4.2) Comments Data on Financial Performance (as of 14-Mar-2013) Public Disclosure Copy Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117363 IDA-H6350 Effective 20-Dec-2010 04-Jan-2011 19-Jan-2011 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117363 IDA-H6350 Effective XDR 7.64 7.64 0.00 2.10 5.54 28.00 Page 5 of 7 The World Bank Report No: ISR8662 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation At the request of the Government, an additional grant of US$5 million is proposed to be provided to the Government of Yemen in the form of Additional Financing to the Yemen Public Finance Modernization Project (PFMP). The objective of the proposed Additional Financing is to improve the efficiency and transparency in the management of public finances by providing decision-support systems and building capacity of public finance management institutions, by scaling up of those ongoing project activities which are doing particularly well and new activities if there is an important missing link in the public financial management. The project will be restructured including the re-allocations to different components and activities. The additional financing of US$ 5 million would finance three new sub-components to be included under Component 1 on strengthening the decision making mechanisms of the Budget Management: (i) Strengthening National Accounts System, (ii) Internal Audit System, and (iii) Capacity building. The additional financing would also help in scaling up of ongoing successful activities: (i) upgrading the ‘client-server’ model of Accounts and Financial Management Information System (AFMIS) to web-enabled or web-based, (ii) rolling out AFMIS to Ministry of Finance Treasuries in 21 Governorates, (iii) process simplification in the Ministry of Finance, (iv) capacity building on public procurement, and (v) building the capacity of staff of Central Organization for Control and Audit (COCA) on auditing the key sectors like the oil, tax, customs and banking. Public Disclosure Copy The institutional arrangement would continue to remain unchanged. The Project Management Unit (PMU) is already established and operational. Considering that the Central Statistics Organization (CSO) under the Ministry of Planning and International Cooperation, and Internal Audit Department under the Ministry of Finance are going to benefit through the Additional Financing, the Operations Manual has been updated to reflect their relationship with the PMU in the Ministry of Finance. In addition, the accounting system of the PMU within the MOF has been updated to separately record and report on the activities of the additional financing implemented by the PMU. The negotiations for the additional financing are tentatively planned for April 4, 2013, and the Board presentation is scheduled for May 16, 2013. Restructuring History Level two Approved on 22-Jan-2012 Page 6 of 7 The World Bank Report No: ISR8662 Related Projects P133637-Yemen Public Finance Modernization Project - Additional Financing Public Disclosure Copy Public Disclosure Copy Page 7 of 7