The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Capacity Building in Public Financial Management 2 (P155148) EUROPE AND CENTRAL ASIA | Kyrgyz Republic | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 4 | ARCHIVED on 29-Oct-2019 | ISR38865 | Implementing Agencies: Ministry of Finance, Project Implementation Unit, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 14-Dec-2017 Effectiveness Date: 11-Jul-2018 Planned Mid Term Review Date: 29-Nov-2019 Actual Mid-Term Review Date: Original Closing Date: 31-Aug-2020 Revised Closing Date: 31-Aug-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve budget predictability, control and transparency in the Kyrgyz Republic. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening budget planning and execution:(Cost $0.82 M) Building capacity of the Ministry of Finance in the public finance management:(Cost $1.07 M) Intergovernmental Fiscal Relations and Sub-National PFM:(Cost $0.63 M) Project Management:(Cost $0.39 M) Overall Ratings Name 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 High Implementation Status and Key Decisions Project implementation has experienced significant delays since December 2018. The World Bank team has worked with the Ministry of Finance and funding donors to determine the way forward given the Ministry’s suggestion of significant changes in the project implementation plan and composition of activities discussed at the Project Steering Committee meeting on March 11, 2019. Based on the capacity assessment results, an agreement on the direction towards acceleration of the project implementation progress was reached with the Ministry of Finance in July 2019. It was agreed that project components and capacity building activities envisaged in the original CB PFM-II project design remained relevant. The Ministry would advance the procurement process for the program-based budgeting, undertake a functional review of the Ministry, and proceed with implementation of the other project activities. 10/29/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) However, due to significant delays in procurement, the project remains rated moderately unsatisfactory. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Moderate Institutional Capacity for Implementation and Sustainability Substantial High High Fiduciary High High High Environment and Social Moderate Low Low Stakeholders Substantial Substantial Substantial Other -- Low Low Overall Substantial High High Results PDO Indicators by Objectives / Outcomes to improve budget predictability, control and transparency in the Kyrgyz Republic IN00753025 ►Decreased variance in functional composition of expenditure out-turn (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The deviation of actual expenditure according This is an annually- to the functional measured indicator. Its classification for 2018 baseline value was amounted to 21.4%, established by utilizing Reduction by at least 7 which shows the budget data for 2017. (seven) percentage Value 13.10 deterioration in the An updated annual value points compared to indicator performance will be calculated by baseline by 8.3% from the October 1, 2019 using baseline value. Data the latest budget data for 2019 is expected to available at that time. be available in the 1st quarter 2020. Date 28-Sep-2018 04-Mar-2019 18-Oct-2019 31-Aug-2020 IN00753111 10/29/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) ►Diminished stock of expenditure payment arrears as a share of central budget expenditures (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The indicator value for This is an annual 2018 is 4.6% of total indicator. An updated republican budget value will be calculated expenditures, which Value 4.50 Not more than 3% by October 1, 2019 using indicates a most recent budget data deterioration in the available at that time. indicator performance in 2018. Date 31-Dec-2017 28-Sep-2018 18-Oct-2019 31-Aug-2020 IN00753112 ►Improved budget transparency Open Budget Index value (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvement over 2019/2020 index 55 out of 100 (OBI Value 54 out of 100 (2015) 55 out of 100 (OBI 2017) value, if updated value 2017) (for 2020/2021) is available Date 31-Dec-2015 04-Mar-2019 04-Mar-2019 31-Aug-2020 Intermediate Results Indicators by Components Strengthening budget planning and execution IN00753113 ►Improved revenue forecasting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A ToR to hire a local The forecasting is done This activity will be consultant on revenue based on revenue covered under forecasting was Updated methodology forecasting methodology Package 2. The draft Value developed. The is used to forecast adopted in 2015. There ToR is ready for consultant has to focus revenues is no information system uploading into the WB on improvement of the on revenue forecasting procurement system. methodology. Date 01-Jun-2016 04-Mar-2019 18-Oct-2019 31-Aug-2020 IN00753117 ►Increased public participation in budget process, an OBI participation score (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 57 out of 100 31 out of 100 (2017). 31 out of 100 (2017). (2019/2020). Questions used in Questions used in 2017 2017 assessment assessment have The questions used to have changed, Value 52 out of 100 (2015) changed, therefore a compute this score therefore a direct direct comparison of have changed, comparison of 2015 2015 and 2017 scores therefore, the end-of- and 2017 scores may may be misleading. project value may be misleading. need to be revisited. Date 31-Dec-2015 04-Mar-2019 04-Mar-2019 31-Aug-2020 10/29/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) IN00753120 ►Training in PFM area in support of PFM Strategy delivered (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target ToRs for package 3 MoF Training center is MoF Training center is covering capacity actively involved into actively involved into Training of at least 800 Value building and training training of relevant training of relevant PFM staff activities is under officials in PFM area officials in PFM area preparation. Date 01-Jul-2015 04-Mar-2019 18-Oct-2019 31-Aug-2020 Building capacity of the Ministry of Finance in the public finance management IN00753114 ►Enhanced e-GP coverage (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A firm to assist MoF in developing the e-GP consultancy module A firm, which will assist has been contracted, e-GP only covers goods MoF in developing e-GP e-GP also covers Value but implementation is and works procurement on consultancy selection, consultancy selection seriously delayed due is being recruited to MoF inability to fulfil requirements outlined in the ToRs Date 30-Nov-2017 04-Mar-2019 18-Oct-2019 31-Aug-2020 IN00753118 ►Increased capacity in internal audit,€€ number of certified auditors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The project assisted MoF in providing handouts and coffee-break to According to internal auditors, who information obtained participated in training for from the MoF, out of certification program. 96 training Value 0.00 participants, 84 - 70.00 According to the MoF, passed certification out of 96 people exams, 62 of whom participated in the work as auditors in the training, 56 passed public service. certification tests and became certified auditors. Date 30-Nov-2017 04-Mar-2019 18-Oct-2019 31-Aug-2020 Intergovernmental Fiscal Relations and Sub-National PFM IN00753115 ►System of intergovernmental fiscal relations improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No vision to improve The RFP for the PEFAs No work has been The system of Value intergovernmental were sent out. Deadline done, yet. intergovernmental transfer system. for proposal submission fiscal relations 10/29/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) is May 13, 2019.was PEFA package was improved based on the announced. retendered. The RFP project was published and recommendations is proposals were fully operational submitted and opened on October 3, 2019. Contracting is expected to be finalized by October 31, 2019. Date 30-Nov-2017 04-Mar-2019 04-Mar-2019 31-Aug-2020 IN00753119 ►Equalization power of the intergovernmental fiscal transfers formula improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This activity to be The baseline was implemented under Reduced by 15% calculated, based on the Value 1653,7 for 2017 package 2. ToRs are compred tot he budget data for 2017 currently under baseline value provided by MoF preparation. Date 31-Dec-2017 04-Mar-2019 18-Oct-2019 31-Aug-2020 Project Management IN00753116 ►The PIST is fully staffed and preforms its duties timely and with adequate quality (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Project implementation function transferred to the CLMU - the The PIST is fully staffed existing PIU under The PIST is fully and preforms its duties MoF. The CLMU is staffed and preforms Value PIST does not exist timely and with good adequately staffed to its duties timely and quality efficiently perform its with adequate quality duties pending the recruitment of a Project Coordinator. Date 01-Jun-2018 01-Apr-2019 18-Oct-2019 31-Aug-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P155148 TF-A3998 Effective USD 3.01 3.01 0.00 0.31 2.71 10% Key Dates (by loan) 10/29/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155148 TF-A3998 Effective 15-Dec-2017 24-Jan-2018 11-Jul-2018 31-Aug-2020 31-Aug-2020 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/29/2019 Page 6 of 6