The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) Economic Management Strengthening (P152171) AFRICA | Ghana | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 5 | ARCHIVED on 19-Jun-2019 | ISR37466 | Implementing Agencies: Ministry Of Finance (MoF), Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 30-Aug-2016 Effectiveness Date: 01-Nov-2016 Planned Mid Term Review Date: 28-Jun-2019 Actual Mid-Term Review Date: -- Original Closing Date: 31-Mar-2020 Revised Closing Date: 31-Mar-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen the Government of Ghana s institutional capacity for revenue and expenditure management. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Strengthening Ghana Revenue Authority s Business Intelligence Systems:(Cost $4.00 M) Component 2: Strengthening Debt Management:(Cost $1.20 M) Component 3: Strengthening Capacity in Public Investment Management:(Cost $4.00 M) Component 4: Improving the Governance of State- Owned Enterprises:(Cost $5.25 M) Component 5: Project Management:(Cost $0.55 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Overall, apart from component 1, there continues to be good progress in the implementation of the project. As a result, the project implementation is remains at Satisfactory (S). There have been no additional disbursements since the last ISR, as the previous disbursement was sufficient to fund ongoing activities. There has been little progress in component 1, and this will be one of the subject's of discussion in the MTR. The debt department has conducted a number of training and capacity building activities and as a result has been able to prepare robust Medium Term Debt Strategy and Anual Borrowing plan for 2019. 6/19/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) The full operationalization of the trading room, which is still being finalized, will further improve the availability of real-time information from the market and communication with relevant market players. The date for completion was revised to end of June 2019 due to delays in obtaining suitable space and setting up of the room at the Ministry of Finance. Under component 3 the team has developed the Public Investment Management Operations Manual and associated guidelines and templates. The PIP Working Committee has also been established. Moreover, progress was made on key activities including the conduct of a comprehensive organizational review and capacity assessment, development of PIM regulations; the design and implementation of a comprehensive and continuous training program at relevant national tertiary-level training institutions; preparation of a National Infrastructure Plan (NIP); and development of a national M&E system. Here, also, the completion date was revised from the December 2018 to October 2019. Under Component 4 the equity study was completed and the recommendations of the Report have been reviewed and submitted to the Management of MoF for approval. In the mean time MOF shared outcomes in the study in the State Ownership workshop organized on September 27 2018. MoF is working on getting approval to allow for full scale dissemination. In addition, the Single Entity i.e. State Interests and Governance Authority (SIGA) law was passed by Parliament in May, 2019, enabling progress in preparation for its establishment as an institution. Therefore, MOF is now working with relevant institutions in activating all other actions that were contingent in the passage of the law. These actions include 1. Developing the organizational chart, setting up the structure and job descriptions, and supporting the recruitment of qualified staff. 2. Developing and supporting the implementation of approved policies, guidelines, and tools for the Government as shareholder (for example, board nominations framework, performance monitoring system, aggregate annual reporting for the SOE sector as a whole). 3. Developing and supporting policies, guidelines, and tools for SOEs in its portfolio (such as financial reporting standards for the SOEs to adopt and implement, disclosure policies, templates for annual reporting). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Moderate Moderate Fiduciary Substantial Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To strengthen the Government of Ghana's instutional capacity for revenue and expenditure managment IN00712278 ►PDO Indicator 1: Tax Audit Yield ratio for audits conducted by the GRA (Percentage, Custom) 6/19/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 12.00 25.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 Target was not achieved; the actual performance (12%) fell short of the mid-term target of 15%. Comments: To strengthen the Government of Ghana's instutional capacity for revenue and expenditure managment IN00712265 ►PDO Indicator 2: Deviation of the share of short-term refixing in total debt at the end of the year from the level set out in the medium-term debt management strategy (MTDS) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 0.36 5.90 0.50 Date 01-May-2016 28-Sep-2018 31-Dec-2018 31-Mar-2020 This target was achieved since the actual performance was a negative deviation (-5.9) compared to a target of positive 1 percent. The unit of measurement for this indicators is less than or equal to the target. At the end of December 2018:  Level set out in MTDS was less than or equal to 30%.  At end-December 2018, the share of short-term re-fixing in total debt was 24.1%.  Remarks: Target was achieved; the actual performance (24.1%) did not exceed the upper limit of 30%. Comments:  thus the actual performance was -5.9 percent. Note: Baseline: 2%, Mid-Term Target: 1% and end target is not more than 0.5 percent. To strengthen the Government of Ghana's instutional capacity for revenue and expenditure managment IN00712276 ►PDO Indicator 3: Percentage of public investment projects that are prioritized on the basis of published standard criteria for project selection (prior to the inclusion in the budget) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020  3,614 ongoing (legacy) projects were validated by the Public Investment Program (PIP) Unit of the MoF as of December 2018. Out of this number, 260 projects were prioritised and included in the 2018 Budget on the basis of the standard criteria published as part of the 2018 Budget Preparation Guidelines; thus reflecting 7% achievement.  Remarks: The indicator definition in the PAD clearly specifies that only projects included in the Budget that are aligned with the PIM guidelines, included in the PIP database and approved by Comments: the PIP Working Committee should count. Given that the inclusion of the 260 projects in the 2018 budget preceded the finalisation and disclosure of the PIM Guidelines[1], the launch and operationalisation of the PIP and PIP Working Committee, it can be inferred that the mid-term target has not been achieved. However, the project has demonstrated significant potential to achieve planned target. Given the level of efforts made, the timely disclosure of the PIM Guidelines and the operationalisation of the PIP (or Integrated Bank of Projects – IBP) will be a game-changer. 6/19/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) [1] PIM Guideline has been finalised and validated by stakeholders. It is, however, yet to be disclosed. [2] PIP was launched in September 2018. The PIP is undergoing further upgrade into an Integrated Bank of Projects. [3] PIP Working Committee inaugurated on 4th May, 2018. To strengthen the Government of Ghana's instutional capacity for revenue and expenditure managment IN00712277 ►PDO Indicator 4: The number of SOEs covered by the aggregate annual reports on SOE financial and governance performance issued no later than six months after the end of the year to the public (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.00 18.00 20.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 Target was achieved (in 2017 but not achieved in 2018 since the 2018 edition passed the six-month deadline); the actual performance (18 SOEs in 2017 and 33 SOEs in 2018) exceeded the target of 15. Although, the 2018 Report was published 9 months after the end of the fiscal year (representing a delay of 3 months), the Report attracted favorable external reviews for its quality and in-depth analysis. Going Comments: forward, the timeliness of the auditing of SOEs financial statement needs to be seriously considered to enable the completion and publication of the Report within the stipulated timeframe. The 2019 report (which looks at 2018 performance is expected to be published in June 2019) Intermediate Results Indicators by Components Component 1: Strengthening Ghana Revenue Authority s Business Intelligence Systems IN00712279 ►IR Indicator 1.1: Launch of Data Warehouse with Business Intelligence System fully integrated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Launch of CRS and GRA Data Warehouse GRA Data Warehouse Value None FACTA linked to GRA not Launched not Launched data warehouse Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 The design phase of the Data Ware has been completed. Implementation of the system is yet to Comments: commence IN00712283 ►IR Indicator 1.2 The usage of the new DW in their auditing and reporting practices (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The management reporting process. The enforcement process Value No Data Warehouse None None (debt collection, non- filer follow up, and nonpayer follow up). Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 The design phase of the Data Ware has been completed. Implementation of the system is yet to Comments: commence 6/19/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) Component 2: Strengthening Debt Management IN00712280 ►IR Indicator 2.1 Deviation from the budgeted net domestic financing (NDF) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.50 -0.69 -0.80 0.50 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 IN00712284 ►IR Indicator 2.2: Public debt data available on MoF’s official website (within months of end of Ghana’s fiscal year) (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 3.00 4.00 3.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 IN00712287 ►IR Indicator 2.3: An operational risk guideline with a business continuity (BCP) and a disaster recovery plan (DRP) approved and reviewed biannually (Yes/No, Custom) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 Work on drafting an operational risk guideline, with BCP and DRP, has already began. Critical business processes have been identified and documented. The next stage of the process is to identify the Comments: strategies to mitigate the risks and draft the operational risk guidelines and code of conduct, indicating that the target was fully not met. Component 3: Strengthening Capacity in Public Investment Management IN00712281 ►IR Indicator 3.1: Roll out and operationalization of PIM strategy and action plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Consultant 1. PIM operational and submitted inception institutional guidelines Report and is currently not disclosed. No PIM strategy/Action developing the capacity Value PIP established Plan Assessment Report. 2. PIP Working PIP Working Committee Committee established has been established. Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 The final draft report on the PIM strategy and action plan is yet to be finalized as consultant needs to Comments: incorporate comments from PIAD and other stakeholders to complete the document. IN00712285 ►IR Indicator 3.2: New projects reviewed by PID team for quality assurance in line with PIM guidelines Operations Manual (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 6/19/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 No new projects have been reviewed in line with PIM guidelines Operations Manual and Templates. The PIM guidelines, operations manual for economic appraisal of projects and templates expected to be Comments: used by PIAD to review new projects were completed in February, 2019 IN00712288 ►IR Indicator 3.3: Civil servants who receive PIM-related trainings (of which female) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 240.00 427.00 500.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 IN00712290 Of which female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 84.00 158.00 150.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 IN00712291 ►IR Indicator 3.4: Public investment projects monitored and reported in publicly disclosed Annual Progress Report (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 The National Infrastructure Plan (NIP) and Public Investment Projects (PIP) are yet to be finalized. The Comments: target was not achieved. Component 4: Improving the Governance of State- Owned Enterprises IN00712282 ►IR Indicator 4.1: SOEs with audited annual financial reports publicly disclosed by the time of SOE Annual General Meetings (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 4.00 15.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 Target not achieved. In Year 1, 7 SOEs had disclosed their audited annual financial reports at the time of Comments: the Annual General Meeting. For Year 2, the number declined to 4 SOEs. IN00712286 ►IR Indicator 4.2: Implementation of the annual action plans for the five SOEs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 54.13 80.00 Date 01-May-2016 28-Sep-2018 28-Sep-2018 31-Mar-2020 Implementation of the short- and medium-term priority actions at the aggregate level is at approximately Comments: 54%. 6/19/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) At the individual company level, implementation is as follows: ECG (31.25%); VRA (73.08%); GNPC (68.97%); GWCL (74.29%); TDC (23.08%) IN00712289 ►IR Indicator 4.3: CSOs participating in the annual stakeholder workshop on SOE governance (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 8.00 15.00 Date 01-May-2016 28-Sep-2018 29-Mar-2019 31-Mar-2020 For the 2018 edition held from 26th to 27th September, 2018, 8 CSOs participated. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152171 IDA-58960 Effective USD 15.00 15.00 0.00 8.94 6.00 60% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152171 IDA-58960 Effective 30-Aug-2016 20-Sep-2016 01-Nov-2016 31-Mar-2020 31-Mar-2020 Cumulative Disbursements 6/19/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Economic Management Strengthening (P152171) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/19/2019 Page 8 of 8