The World Bank Report No: ISR12454 Implementation Status & Results Mozambique Ninth Poverty Reduction Support Credit (PRSC 9) (P131212) Public Disclosure Copy Project Name: Ninth Poverty Reduction Support Credit (PRSC 9) (P131212) Program Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 15-Mar-2014 Country: Mozambique Approval FY: 2014 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 16-Jul-2013 Original Closing Date 31-Mar-2014 Planned Mid Term Review Date Last Archived ISR Date Effectiveness Date 29-Oct-2013 Revised Closing Date 31-Mar-2014 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) To assist the Government of Mozambique to: (i) to improve the business climate and to increase transparency in extractive industries; (ii) strengthen social protection; and (iii) strengthen public financial management by enhancing effectiveness of internal audit, developing a public investment management process, and improve public debt management Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Overall Implementation Progress (IP) Satisfactory Implementation Status Overview The Ninth Poverty Reduction Support Credit (IDA 52990-MZ) was approved by the World Bank's Board of Directors on July 16, 2013 after the completion of ten prior actions. The Public Disclosure Copy program was signed on September 4, 2013 and became effective on October 29, 2013, after the conditions for effectiveness were met, including the issuance of a satisfactory Legal Opinion. A single-tranche disbursement of US$113.0 million took place in December 30, 2013. The program has achieved satisfactory results so far, although fiscal transparency issues have had some negative impact on the effectiveness of public investment management and public debt management. The Government of Mozambique was committed to achieve all results indicators before the program's closing date of March 31, 2014. As of February 2014 all prior actions were fully achieved and consistent with meeting the program development objectives at the end of the three-year PRSC series. Implementation capacity is adequate. In addition, there is significant technical assistance provided to the GoM by different development partners. The monitoring and evaluation system is based on relevant and easy to monitor indicators and program goals. Despite some challenges in the overall monitoring and evaluation framework, the policy and institutional actions supported by the PRSC series are well monitored and assessed. Results Page 1 of 5 The World Bank Report No: ISR12454 Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of day needed to obtain a business Days Value 15.00 7.00 Public Disclosure Copy license Date 31-Dec-2011 31-Dec-2015 Comments 15 days to obtain a 7 days to obtain a Commercial License. Commercial License. 40 days to obtain an Industrial 20 days to obtain an Industrial License. License Number of applied EITI principles and criteria. Text Value zero Mozambique remains a compliant member of EITI with further improvements in transparency and has published the reconciliation reports upt to 2014 in the Government's public portal in line with the new and revised EITI guidelines. Date 31-Dec-2011 31-Dec-2015 Comments Coverage of the legal framework for managing Text Value Legislation in place does not Legislation provides clear mining activities. set procedures for the authorization to issue a collection of mining royalty mining license, to undertake payments. mining related activities, and regarding management of royalty payments. It mandates annual reporting and auditing of mining related fiscal revenues. Mining tax collection for 2014 fiscal year is enforced according to the new mining legislation. Date 31-Dec-2011 31-Dec-2015 Public Disclosure Copy Comments Quality of coverage of the legal framework for Text Value Legislation in place does not New legislation and managing Petroleum activities. meet requirements with regulations in Petroleum regards to transparency rules enforced. and management of royalty Legislation provides clear payments. authorization to issue a Petroleum license, to undertake petroleum related activities, and regarding management of royalty Page 2 of 5 The World Bank Report No: ISR12454 payments. It mandates annual reporting and auditing of Petroleum related fiscal revenues. Public Disclosure Copy Date 31-Dec-2011 31-Dec-2015 Comments The percentage of transfers to local districts for Text Value Legislation in place sets basic Transfer from the State infrastructure development of local principles for transferring Budget to districts has been communities and assessment of the local funds to communities in which implemented for 2013 and development strategy. extractive industries operate, 2014 as evidenced in the but there are no transfers to annual execution reports, and districts to finance an assessment of the transfer development projects in program has been completed communities in which the for 2013 and 2014, which extractive industries operate. include recommendations on improvements to the transfer system. Date 31-Dec-2011 31-Dec-2015 Comments Total number of direct public works program Number Value 0.00 20000.00 (PASP) beneficiaries. Date 31-Dec-2011 31-Dec-2015 Comments Percentage of payments made to beneficiaries Percentage Value 0.00 50.00 from PASP and PSSB within the month they Date 31-Dec-2011 31-Dec-2015 are due. Comments Percentage of payments made to beneficiaries from PASP and PSSB within the month they are due reaches 50 percent. Percentage of recommendations implemented Percentage Value 0.00 40.00 by the entities audited/inspected by the OCI’s Date 31-Dec-2011 31-Dec-2015 Public Disclosure Copy and IGF. Comments Percent of public investment that has been Percentage Value 0.00 90.00 developed as projects, appraised and Date 31-Dec-2011 31-Dec-2015 evaluated, following the guidelines adopted for Comments project appraisal and evaluation. Quarterly and yearly debt reports published. Text Value The IT system to support the Quarterly public debt reports preparation of the database are prepared for the 2013 and for public debt transactions for 2014 fiscal years and are the analysis of debt published in the government’s Page 3 of 5 The World Bank Report No: ISR12454 sustainability is not fully public portal; they include functional and the debt information on costs and risks reports only published on an of the debt portfolio. Annual annual basis. public debt reports for 2013 Public Disclosure Copy and 2014 include the assessment of the progress in implementing the public debt borrowing plan. Date 31-Dec-2011 31-Dec-2015 Comments Data on Financial Performance (as of 30-Dec-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P131212 IDA-52990 Effective 16-Jul-2013 04-Sep-2013 29-Oct-2013 31-Mar-2014 31-Mar-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P131212 IDA-52990 Effective XDR 73.40 73.40 0.00 73.40 0.00 100.00 Tranches Tranche 1 Amount (USD) Expected Release Date Actual Release Date Status 0 Pending Released Key Decisions Regarding Implementation Public Disclosure Copy The authorities of Mozambique have made significant progress in the institutional and policy actions supported by the PRSC series, including achieving ten out of ten prior actions in line to meet the result indicators at the end of the three-year PRSC series. The following two operations of the PRSC series will strengthen the Public Investment Management and Public Debt Management triggers so as to provide an overall stronger framework on fiscal transparency issues as a result of increasing access of Mozambique to financial markets. Restructuring History There has been no restructuring to date. Related Operations Page 4 of 5 The World Bank Report No: ISR12454 P131212-Ninth Poverty Reduction Support Credit (PRSC 9), P146537-Tenth Poverty Reduction Support Credit (PRSC X) Public Disclosure Copy Public Disclosure Copy Page 5 of 5