The World Bank Report No: ISR15815 Implementation Status & Results Madagascar Governance and Institutional Development Project II (P103950) Public Disclosure Copy Operation Name: Governance and Institutional Development Project II Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 30-Oct-2014 (P103950) Country: Madagascar Approval FY: 2008 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 03-Jun-2008 Original Closing Date 31-Aug-2012 Planned Mid Term Review Date 31-Oct-2013 Last Archived ISR Date 21-Jun-2014 Effectiveness Date 13-Oct-2008 Revised Closing Date 31-Aug-2014 Actual Mid Term Review Date 28-Feb-2014 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the Recipient’s public financial management and social accountability at the central government and at the Communal levels. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Component 1 – REVISED: Improvement of Public Financial Management. 13.33 Component 2 – REVISED: Improvement of Local Governance 8.38 Component 3 - NEW: Institutional Strengthening & Knowledge Management. 4.90 Component 4 – NEW: Project Coordination 4.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating High Implementation Status Overview The progress towards the achievement of the Project Development Objective of strengthening the recipient’s public financial management and social accountability at the central government and communal levels is moderately unsatisfactory. Page 1 of 13 The World Bank Report No: ISR15815 Throughout the life of the PGDI 2, a difficult environment affected the implementation of the project and the achievement of the results, largely as a consequence of an unstable political situation and a long delayed election that created uncertainty and lack of leadership for key reforms such as Public Financial Management. However, in 2014 project implementation and performance have increased considerably and more than 95% of activities have been launched and total disbursements exceed 83% by the end of August 2014. Likewise, tangible results emerging in the area of public financial management with the completion of the PEFA Self-Assessment late December 2013 and the publication of quarterly Public Disclosure Copy budget execution reports, with three out of four PDO indicators and seven out of thirteen intermediate indicators having exceeded their expected final targets; as a result of a very successful land registration operation. The project has remained a key tool in the dialogue with the government as it addresses key reforms for the country, including PFM, land management, and access to information. The project managed to launch a series of key analytical works that will shape the dialogue with the Government of Madagascar on public sector reforms for the next 10 years. To that end, a PFM reform strategy is currently under discussion, a prospective study of the land sector institutional framework is ongoing, and the draft access to information act is under preparation. At the same time, the government managed to undertake an innovative, integrated project that showed promising results in local governance and a pilot grant program to civil society to support demand side governance. The Access to Information Charter was adopted in December 2013 and a new Knowledge Platform for social accountability has been implemented with the project’s support. Locations Country First Administrative Division Location Planned Actual Madagascar Not Entered Fort Dauphin Madagascar Not Entered Nosy Be Madagascar Not Entered Moramanga Madagascar Diana Antsiranana Madagascar Analamanga Antananarivo Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 13 The World Bank Report No: ISR15815 Indicator Name Core Unit of Measure Baseline Current End Target Number of selected indicators that increase Number Value 0.00 2.00 3.00 their rating in the PEFA self evaluation report Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Public Disclosure Copy Comments This indicator increased since the last ISR, as a result of a PEFA having been conducted at the sub-national level for the city of Antananarivo. In conjunction with the national- level PEFA Self-Assessment carried out in December 2013 (see PDO indicator 1 for moreinformation), the current value for this indicator is 2. Comments on the national- level Self-Assessment have been received from theEU, the PEFA Secretariat, and during the most recent mission, the IMF provided its comments and an Action Plan. However, as indicated during the most recent Implementation Support mission, the Ministry of Finance and Budget did not carry out a subsequent assessment at the national level before the project closed. Nevertheless, a third PEFA— at the sub-national level of Public Disclosure Copy Mahajanga— was completedby project closing. In addition, the city of Tamatave also expressed an interest in conducting a sub- national PEFA assessment, butitwas not finished by project closing. Page 3 of 13 The World Bank Report No: ISR15815 Number of ministries publishing quarterly Number Value 0.00 40.00 10.00 budget execution report through media or Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 internet. Comments This indicator has exceeded Public Disclosure Copy its target value and quarterly budget execution reports are now available on the website of the Ministry of Finance and Budget for 40 government entities, including the Ministries, the Prime Minister’s Office, and the Presidency. While these reports vary considerably in quality and consistency, all quarterly reports can be accessed online at: http://www. dgbudget.mg/index.php? option=com_content&view=ar ticle&id=45&Itemid=38 The Local Governance Index (IGL ) average is Number Value 3.90 4.50 4.50 increased in targeted Local Governments. Date 31-Aug-2013 31-Aug-2014 31-Aug-2014 Comments This indicator increased since the last ISR and has exceeded its final target value as a result of OCAI activities and the implementation of Rapid Results Initiatives at the Communal level. The Local Governance Index (IGL) was designed to Public Disclosure Copy measure transparency, accountability and participation at the communal level. The data provided was from April and the figure was updated a final time in August before project closed. The baseline value was calculated with reference to 50 communes. Page 4 of 13 The World Bank Report No: ISR15815 Direct Project Beneficiaries Number Value 0.00 8589.00 8000.00 Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments - Persons trained: 6800 - People Receiving Direct - People Receiving Direct Public Disclosure Copy - Commune befitting from Training: 8,589 Training: 8,000 communal grants: 0 - OSC benefiting from Social -Communes Benefiting from -Communes Benefiting from Accountability grants: 0 Communal Grants: 86 Communal Grants:100 -CSOs benefiting from Social -CSOs benefiting from Social Accountability Grants: 68 Accountability Grants: 45 -Percent of which are -Percent of which are Women: 40%. This sub- Women: 50%. indicator has increased marginally but has not yet reached the final target value because the proportion of women in Participatory Budgeting committees is still low. In addition, there is no specific activities in the project to promote gender mainstreaming and the Malagasy cultural context sometimes makes it difficult for women to participate in person. People Receiving Direct Training Number Value 6800.00 8589.00 8000.00 Sub Type Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Breakdown Comments This sub-indicator has exceeded its final target as a result of the following: Training of CSOs and the Public Disclosure Copy Communal Steering Committee(COPILO) through the Social Accountability Grant (FSC) (6982 people); Training and sensitization of Participatory Budgeting committees by the Operation for Communal Institutional Support (OCAI) (774 people); Training of the Participatory Budgeting Network during Page 5 of 13 The World Bank Report No: ISR15815 various workshops (144 people); the Participatory Budgeting initiative in Mahajanga (14 people); and Public Disclosure Copy the implementation of the project by CSOs and the FSC (275 and 400 people respectively). Communes Benefitting from Communal Grants Number Value 0.00 86.00 100.00 Sub Type Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Breakdown Comments This sub-indicator has increased significantly since the last ISR as mechanisms for securing funds (Bweb) have been established. Previously, this indicator was lagging, with only 5 communal beneficiaries, as a result of delays in the disbursements of the communalgrants and increased fiduciary supervision by the PIU. Nevertheless, this indicator has increased. CSOs benefiting from Social Accountability Number Value 0.00 71.00 45.00 Grants Sub Type Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Breakdown Comments This sub-indicator has increased since the last ISR and has exceeded its final target value. ...Of which Female Percentage Value 30.00 40.00 50.00 Sub Type Public Disclosure Copy Supplemental Intermediate Results Indicators Page 6 of 13 The World Bank Report No: ISR15815 Indicator Name Core Unit of Measure Baseline Current End Target Number of PEFA audited self-evaluation Number Value 0.00 2.00 2.00 reports published and discussed Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Public Disclosure Copy Comments This indicator increased since the last ISR, as a result of a PEFA having been conducted at the sub-national level for the city of Antananarivo. In conjunction with the national- level PEFA Self-Assessment carried out in December 2013 (see PDO indicator 1 for moreinformation), the current value for this indicator is 2. Comments on the national- level Self-Assessment have been received from theEU, the PEFA Secretariat, and during the most recent mission, the IMF provided its comments and an Action Plan. However, as indicated during the most recent Implementation Support mission, the Ministry of Finance and Budget did not carry out a subsequent assessment at the national level before the project closed. Nevertheless, a third PEFA— at the sub-national level of Public Disclosure Copy Mahajanga—was expectedtobe completed by project closing. In addition, the city of Tamatave also expressed an interest in conducting a sub-national PEFA assessment, but was not finished by project closing. Page 7 of 13 The World Bank Report No: ISR15815 Number of IFMIS Centralization/integration Number Value 1.00 1.00 8.00 indicators rated « satisfactory » Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has remained Public Disclosure Copy unchanged since the last ISR. To date, the implementation of a Rapid Results Initiatives in the pursuitof "small improvements" has allowed the development of "Revenues" module, although it has yet to be fully implemented. The team believes that this will be done shortly, as the government made a verbal commitment to move towards the full integration of the IFMIS system. Number of bids, of the central Government, Number Value 58.00 77.77 75.00 awarded under open competition Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator appears to have increased since the last ISR and to have exceeded the final target value. However, this seemingly strong performance is the result of procurement activities done through “Quotation” (i.e. for contracts less than 50,000 USD), and does not include National or International bidding. As a result, if the project is to be extended, this Public Disclosure Copy discrepancy in measurement should be clarified with the PIU. NB: This indicator is a percentage, despite the unit of measure being listed as a number in the operations portal. This information cannot be changed without it resulting in deleting previous Page 8 of 13 The World Bank Report No: ISR15815 performance under this indicator. Percentage of FDL communes with an Percentage Value 39.00 71.00 50.00 improved CGF score (D+) (FDL communes) Public Disclosure Copy Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has increased since the last ISR due in part to the implementation of Rapid Results Initiatives in a number of communes which has increased Financial Management (FDL) activities. Percentage of FDL communes with an Percentage Value 55.00 38.00 65.00 improved GMP score (D+) (FDL communes) Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator did not progress since the last ISR as the GMP (procurement) score for many municipalities has deteriorated due to adelay in the disbursements of OCAI grants which impedes progress on procurement activities. As with the FDL indicator, the numberof communes involved was increased from 50 to 124. Percentage of communes publishing Percentage Value 0.00 56.00 100.00 information on public service in compliance Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 with BIANCO recommendations. Comments This indicator has not increased since the last ISR due to delays in the implementation of DAC (Anti- Public Disclosure Copy Corruption Plan) based onthe technical standards of BIANCO (Anti-Corruption Agency). Nevertheless, many municipalities have already implemented most of these standards with the means at their disposal and different mechanisms have been put in place as necessary. As Page 9 of 13 The World Bank Report No: ISR15815 mentioned in the last ISR, 123 targeted communes have been trained on public service compliance. Public Disclosure Copy Number of land parcels recorded for local Number Value 3000.00 537514.00 8000.00 taxation Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has continued to increase and has exponentially exceeded its final target value. The exceptional performance for this indicator is explained by the fact that in the OCAI activities, the tax census was one of the first completed elements. Since this activity was a pure innovation, with no prior historical experience, the baseline indicator was underestimated as was the final target value. Number of land parcels with secured Number Value 2500.00 2500.00 7500.00 ownership rights registered Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has not progressed since the project began as no applications for land certificates have been fully processed. Following the launch delay of OCAI, this activity is still in the phase of identifying the parcels and Public Disclosure Copy collection of land certificates requests (requests are numbered about 130,000 at the end of June). Moreover, poor quality of PLOF has necessitated a higher degree ofquality control and hence delays. The values entered for Page 10 of 13 The World Bank Report No: ISR15815 October 31 and April 30 were erroneous. Number of social accountability initiatives Number Value 169.00 169.00 450.00 implemented at the local level Public Disclosure Copy Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has neither increased since the last ISR nor from the baseline value. However, additional activities have been launched to support this component are expected to be completed by August 31, 2014. The Number of Public Institutions that endorse, Number Value 0.00 239.00 60.00 publicly, the “Access to information and Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Knowledge Sharing Charter” Comments This indicator has increased since the last ISR and has already exceeded its final target value. To date, 27 national public institutions, 137 municipalities (communes using Participatory Budgeting), and 76 CSOs (including churches and large COSs benefiting from FSC Grants) have become signatories to the “Access to information and Knowledge Sharing Charter”. Percentage of GDLN budget that is covered by Percentage Value 40.00 29.11 60.00 own resources. Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has declined Public Disclosure Copy significantly since the last ISR due to the holiday period, during which workshops and trainings, whichhelp to mobilize revenue, are typically not held. This indicator is calculated on an annual basis, and the current ratio takes into account the expenses and the Page 11 of 13 The World Bank Report No: ISR15815 incomes from January 2014 to June 2014). Number visitor of the INSTAT Website Number Value 40000.00 58446.00 90000.00 Public Disclosure Copy Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments For the first six months of 2014, there have been 58,446 visitors to the INSTAT website, and based on extrapolations from previous trends, it is anticipated that there will be 116,592 visitors to the INSTAT website, which will ensure that the final target will beexceeded as in years past. Per the detailed log-framing of the results framework, this indicator is to be measured on an annual basis and it is currently only possible to record the year-to-date visits. This remarkable performance can be explained by (1) increased data content on the website, (2) investors seeking economic, demographic, and social data on Madagascar since the end of the crisis, and (3) support from PGDI 2 (before the suspension of support for INSTAT). Knowledge management database available Yes/No Value No Yes Yes Public Disclosure Copy and accessible via internet Date 31-Aug-2012 31-Aug-2014 31-Aug-2014 Comments This indicator has progressed since the last ISR and the knowledge management platform will be finalized in July 31, 2014. Data on Financial Performance (as of 07-Oct-2014) Financial Agreement(s) Key Dates Page 12 of 13 The World Bank Report No: ISR15815 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P103950 IDA-44110 Closed 03-Jun-2008 15-Jul-2008 13-Oct-2008 31-Aug-2012 31-Aug-2014 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103950 IDA-44110 Closed XDR 24.30 19.10 5.20 15.99 3.11 84.00 Disbursement Graph Key Decisions Regarding Implementation The project closed on August 31, 2014. Public Disclosure Copy Restructuring History Board/AOB Decision on 15-Jul-2012 Related Projects There are no related projects. Page 13 of 13