The World Bank Report No: ISR15191 Implementation Status & Results Chile Second Public Expenditure Management (P103441) Public Disclosure Copy Operation Name: Second Public Expenditure Management (P103441) Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 28-Jun-2014 Country: Chile Approval FY: 2008 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 28-Aug-2007 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date 25-Apr-2011 Last Archived ISR Date 21-Dec-2013 Effectiveness Date 27-Feb-2008 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 25-Apr-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall development objective would be to increase the efficiency of operations regarding financial management, budget formulation, and budget execution, and the transparency of public expenditure management at the central and municipal level through the implementation of an updated, functionally enhanced and expanded financial administration system (SIGFE). Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Upgrading and Extending the Financial Information System to the Central Government Entities 15.20 Improvement of Budget Procedures and Mechanisms of the Management Control System 0.60 Strengthening Financial Administration at the Municipal Level 8.50 Project Management 0.40 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Prospects towards achieving the outcomes continue to be moderately satisfactory. While the main system performance issues appear to have been resolved, implementation of the system advanced more slowly than expected (currently being in production in approximately half of the targeted central government institutions (84 out of 173)). The Project is almost fully disbursed (US$24,681,311 disbursed out of US$24,800,000), and all remaining funds are expected to be fully disbursed by project closing. Page 1 of 6 The World Bank Report No: ISR15191 Locations No Location data has been entered Public Disclosure Copy Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase efficiency of public financial Text Value Aggregated information SIGFE II is 100% developed. 100% of SIGFE II management Administration by upgrading and available only on demand Currently, there are 84 implemented expanding the national financial administration insititutions using SIGFE II, system and using common standards at the representing a 49% of the central level goal of implementationin 173 institutions. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Partially achieved. Increase effectiveness and transparency in Text Value Consolidated financial SIFIM has been implemented A Municipal Financial public expenditure management on the information at the municipal in the 100 targeted Information System, capable municipal level by developing a Municipal level available in 180 days municipalities. In regards to of aggregating the information FinancialInformation System. the municipal aggregator, the of all 345 Municipalities is hardware and software implemented, and information licenses, and the municipal is available in 30 days. aggregator system are installed in the Subsecretariat's office. The Municipal Aggregator is expected to enter into operation in January 2015. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Almost achieved. Increase effectiveness of financial Text Value Several incongruent systems 100 municipalities operating Financial information of at management at the local level by implementing used for financial within SIFIM as of May 2014. least 100 municipalities is Public Disclosure Copy a system built on common standards administration at municipal included in the Municipal level Financial Information System Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Achieved. Intermediate Results Indicators Page 2 of 6 The World Bank Report No: ISR15191 Indicator Name Core Unit of Measure Baseline Current End Target Number of institutions where time required to Number Value 0.00 83.00 93.00 aggregate financial data for the central Date 08-Aug-2007 23-May-2014 30-Jun-2013 Public Disclosure Copy government is reduced from 30 to 8 days Comments 0 institutions Partially achieved. Financial 93 institutions information for the central government institutions in SIGFE and SIGFE II, and the homologated institutions is turned in within the first 15 days of each month. For institutions within the coverage of the central government (exceptthe Public Treasury), the closing period is the 8th working day of each month, and information is aggregated in SIGFE the next working day. Increased processing capacity of transaction Text Value Transaction processing With the institutions currently 200,000 transactions module from 95,000 to 200,000 financial capacity of 95,000 per day using the system, only 5% of processed per day and transactions per day with a response time the CPU is being used. Given response time less or equal to within 8 seconds at port results of performance and 8 seconds scalability tests, it can be projected that the system meets the target. Date 03-Aug-2007 23-May-2014 30-Jun-2012 Comments Achieved. In performance tests, 154 transactions were processed per minute (equivalent to 9,240 per hour). SIGFE's configuration processes have been Text Value Manual configuration Achieved. SIGFE's configuration automated, YR 2-5. processes processes automated Public Disclosure Copy Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Batch interfaces between SIGFE and Text Value Batch interfaces Interoperability with SIGFE Fully automated, real-time ChileCompras, BIP of MIDEPLAN and other 2.0 was fully developed. data exchange between selected systems have been replaced by full However there are delays SIGFE & ChileCompras, interoperability, YR 2-5. with putting interoperability MIDEPLAN#s BIP and other with Chilecompras selected systems intooperation due to changes in the basline of the Public Market application (following Page 3 of 6 The World Bank Report No: ISR15191 the development of the functionality with SIGFE2.0. Similarly the business model underlying the BIP and the Public Disclosure Copy functionality needs to be revisited, as the Ministry of Social Development is in the process of creating a new version of the BIP application. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Partially achieved. Upgraded SIGFE used by the 90% of the CGE Text Value Lack of reliable and timely 84 institutions using SIGFE Fully integrated, online data that presently use SIGFE. The remaining 10% financial information 2.0 in May 2014 (representing transfer for 100% of Central of CGE that operate their own systems should consolidated for the entire 49% of the institutions government's financial generate fin. info. consistent with SIGFE public sector covered by SIGFE I). In information financial info. requirement regards to the institutions operating their own (homologous) systems, the Institute of Labor Security has been operating SIGFE 2.0 since 2011, and positive viability studies have been carried out in the Ministry of Public Works and the Social Security Institute. There have also been advances in the homogalation of the accounting conditions in the Public Treasury to SIGFE's rules and requirements. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Partially achieved. Establishment of a new administrative structure Text Value No administrative structure Achieved. Creation of the Information Public Disclosure Copy and processes to institutionalize SIGFE within Technology Department DIPRES, YR1-5 Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Information Technology Division was created within DIPRES. SIAP implemented in DIPRES, including Text Value Limited integration of SIAP Following postponement of SIAP in operation producing interoperability with SIGFE, YR 2-5. with SIGFE the project in 2012, authorities integrated financial and decided to reinitiate the budget information project in 2014. It is hoped to carry out thebidding process Page 4 of 6 The World Bank Report No: ISR15191 in August 2014, and have the contract by the beginning of 2015. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Public Disclosure Copy Comments Not achieved. Municipal Information System developed that is Text Value Local isolated databases in SIFIM has been implemented A Municipal Financial capable of aggregating the information of all use in the 100 targeted Information System, capable 345 municipalities municipalities. In regards to of aggregating the information the municipal aggregator, the of all 345 Municipalities is hardware and software implemented, and information licenses, and the municipal is available in 30 days. aggregator system are installed in the Subsecretariat's office. The Municipal Aggregator is expected to enter into operation in January 2015. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Almost achieved. Time lag to produce information on aggregated Text Value 180 days Information can now be 30 days or less municipal budget expenditures has been obtained in 90 days. reduced from 180 to less than 30 days Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Partially achieved. With the implementation and entry into operation of the municipal aggregator (expected in 2015), it will be possible to have information in less than 30 days. 100 new municipalities are using a new Number Value 0.00 100.00 100.00 financial administration sub-systems Date 03-Aug-2007 23-May-2014 30-Jun-2013 Public Disclosure Copy Comments 0 municipalities As of May 2014, 100 100 municipalities municipalities are operating SIFIM. Project implementation and coordination as Text Value The process of monitoring All workshops were carried 4 information exchange well as the monitoring and evaluation of the and evaluation of the project out within the SIGFE 2.0 workshops amongst entities implementation process, FY 1-5 will take place with a low level Users' Committee which have implemented the of implementation new transactional module of SIGFE. Date 03-Aug-2007 23-May-2014 30-Jun-2013 Comments Achieved. Page 5 of 6 The World Bank Report No: ISR15191 Data on Financial Performance (as of 27-Jun-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P103441 IBRD-74850 Effective 28-Aug-2007 30-Nov-2007 27-Feb-2008 30-Jun-2013 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103441 IBRD-74850 Effective USD 24.80 24.80 0.00 24.68 0.12 100.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy As expected, the project will close on June 30, 2014. Restructuring History Level two Approved on 07-Mar-2012, Level 2 CD Decision on 28-Jan-2014 Related Projects There are no related projects. Page 6 of 6