Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Public Sector Modernization Project (P101614) EUROPE AND CENTRAL ASIA | Kosovo | Governance Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 9 | ARCHIVED on 07-Jul-2015 | ISR20071 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:04-Feb-2010 Effectiveness Date:17-Jun-2011 Planned Mid Term Review Date:30-Jun-2013 Actual Mid-Term Review Date:30-Oct-2013 Original Closing Date:30-Jun-2013 Revised Closing Date:30-Jun-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) (a) To strengthen the performance of key budget organizations in budget formulation, budget execution, and public procurement; (b) To establish the foundations for fiscally sustainable payroll management and effective human resource management in the core civil service; and (c) To create conditions for further automation of government work processes and for development of e-government applications. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Improving public financial management performance in selected budget organizations:(Cost $3.00 M) Component 2 - Improving payroll administration and laying the foundations for a professional civil service:(Cost $2.05 M) Component 3 - Increasing the security and efficiency of government information systems:(Cost $2.30 M) Component 4 - Project management, including project audit and evaluation:(Cost $0.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 7/7/2015 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Implementation Status and Key Decisions IMPLEMENTATION STATUS OVEVIEW Progress toward achievement of the PDO remains Moderately Satisfactory. Overall Implementation Progress remains Moderately Satisfactory. Substantial advances in implementation of the new Job Catalogue in all central government agencies and municipalities along with introduction of the Human Resource Management Information Systems (HRMIS) and its performance appraisal module. These are in line with the Civil Service Reform Strategy and action plan being prepared by the Government and especially important, because full implementation of the Job Catalogue is expected to become one of Action Plan indicators. These developments allowed for upgrading performance of the second component of the project from "MU" to "MS". Disbursement is at 75% of the total project funds. Project savings are being allocated to supplement funding for existing activities and to new activities. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Improved quality of budget formulation and execution in the budget organizationsthat would participate in the proposed project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PEFA assessment 2009 PEFA 2013 PEFA 2013 PEFA PI-1 Value indicators: score B; # PI-1: score: C (actual PI-01 = B PI-01 = B PEFA PI-12 7/7/2015 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) expenditure deviated from PI-12 = C+ PI-12 = C+ (iii), (iv) score budget by more than 15% PI-12(iii) = C PI-12(iii) = C B; in one of the last three PI-12 (iv) = D PI-12 (iv) = D At least 4/5 years); Disaggregated data Disaggregated data beneficiary # PI-12 (iii, iv): Multi-year provided separately provided separately organizations perspective in fiscal Quality indicators Quality indicators meet at least planning, expenditure partially met partially met 5/7 policy & budgeting # score: intermediate C PI-12 (iii) score: C; PI-12 outcome (iv) score: D; indicators # Only 3/7 quality indicators of budget submissions met by all 5 beneficiary BOs; no BO meets 3 quality indicators for budget execution Date 30-Jun-2009 30-Sep-2014 30-Sep-2014 30-Jun-2016 PHINDPDOTBL  Increased bidder participation in public procurement tenders and cost savings achieved through Quick Gains actions and e- procurement modules (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 8,270 bidders participated in procurement tenders in 2008 (1.7 bidders per contract); No electronic procurement transactions; QG study reports significant price disparities within procurement categories in the same Bidder year (2008): participation # Civil works/ roads: up to increases by 90%; 15%. # Maintenance: 39% # Security: 41%; Price disparities # Buildings rental 64%; in QG Recently signed e- Recently signed e- # Food 95%; procurement procurement contract procurement contract Value # Medicines 17-70%; categories do will capture respective will capture respective # Office supplies 26%; not exceed indicators indicators # Fuel 9.3% in a year/ up 10% in the to 31% in a month same year. Cost savings of No electronic procurement at least 5% for transactions each category achieved. QG study reports significant price disparities within procurement categories in the same year (2008): # Civil works/ roads: up to 90%; # Maintenance: 39% # Security: 41%; 7/7/2015 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) # Buildings rental 64%; # Food 95%; # Medicines 17-70%; # Office supplies 26%; # Fuel 9.3% in a year/ up to 31% in a month Date 30-Sep-2009 30-Nov-2014 30-Nov-2014 30-Jun-2016 PHINDPDOTBL  Transparent and coherent pay and grading structure introduced in the core civil service supported by improved ICT systems that enable effective fiscal and management controls in payroll administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 100% of permanent civil No grading system in the servants civil service; graded; Wide pay variations among Equal bases civil service bodies; pay for posts of Value PEFA indicator PI-18 -- -- equal grade (effectiveness of payroll and salary step controls) score: D+; across civil No link between HRMIS, service bodies; payroll, and Treasury Improved PEFA PI-18 score (C+ or above) Date 30-Sep-2009 01-Nov-2013 01-Nov-2013 30-Jun-2016 PHINDPDOTBL  Enhanced security and interoperability of government information systems (through centralized data storage and systems maintenance,and interoperability framework) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Data center is operational; Reduced risk of data loss; No adequate, secure data Improved The National Data storage and backup facility The National Data access to data Center was for major ICT systems; Center was inaugurated control and Value inaugurated in No interoperability in February 2014 and is physical February 2014 and is between major ICT fully operational. security; fully operational. systems New systems developedaccor ding to interoperability framework. Date 30-Sep-2009 01-Nov-2013 01-Nov-2013 31-Dec-2014 Overall Comments 7/7/2015 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Intermediate Results Indicators PHINDIRITBL  Improved quality of budget and MTEF submissions of beneficiary budget organizations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Beneficiary BOs comply with 3 out 7 budget Partially met- Partially met- All 5 beneficiary Value submission quality criteria performance differs performance differs BOs meet the 7 (see comment for across beneficiaries. across beneficiaries. quality criteria explanation) Date 30-Sep-2009 30-Sep-2014 30-Sep-2014 30-Jun-2016 PHINDIRITBL  Improved budget execution rates by beneficiary budget organizations (BOs) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (a) Deviation from original approved budget expenditure by beneficiary BOs does not exceed 10 percent (in aggregate and a. Partially met. Health a. Partially met. Health by BO) for the year. met, Education and met, Education and (3/5=NO) Agriculture did not. Agriculture did not. All beneficiary BOs meet the (b) Variance in expenditure b. Partially met. b. Partially met. interim composition exceeds Agriculture and Health Agriculture and Health Value outcome overall deviation in primary met. Education did not. met. Education did not. indicators for expenditure by no more budget than 5 percentage points c. Partially met. c. Partially met. execution for the year. (5=NO) Education met, others Education met, others did not. did not. (c) Targets (expenditure and milestones) for at least 70 percent of projects in approved budgets are achieved. (5= NO) Date 30-Sep-2009 30-Sep-2014 30-Sep-2014 30-Jun-2016 PHINDIRITBL  Status of public procurement activities is regularly monitored through contract management information system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/7/2015 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) PPA and PPRC use electronic system to regularly No central capacity exists monitor public Value to monitor procurement -- -- procurement cycle activities by all contracting authorities in Kosovo Date 30-Sep-2009 01-Nov-2013 01-Nov-2013 30-Jun-2016 PHINDIRITBL  HRMIS functions as a civil service registry and online data links between HRMIS-payroll-Treasury systems enable effective fiscal and management controls in payroll administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met - HR MIS Partially met - HR MIS pilot was completed in pilot was completed in the MPA and initiated the MPA and initiated in in five more public five more public institutions: in five more institutions: in five more government government institutions: HRMIS does not include institutions: Ministry of Ministry of Education, HRMIS rolled grade or salary step data; Education, Ministry of Ministry of Local out in all civil Value includes only personnel Local Government Government service data for 3 civil service Administration, and Administration, and organizations organizations Agency for Data Agency for Data Protection, Agency for Protection, Agency for Administration of Administration of Sequestrated or Sequestrated or Confiscated Assets Confiscated Assets and and in one municipality. in one municipality. Date 30-Sep-2009 01-Nov-2013 01-Nov-2013 30-Jun-2016 PHINDIRITBL  Performance appraisal system is introduced and used as a basis for progression along salary steps (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Managers trained (no.); No regular performance Performance appraisal system or Value not yet achieved. not yet achieved. appraisal mechanism for salary launched in progression pilot organizations Date 30-Sep-2009 01-Nov-2013 01-Nov-2013 30-Jun-2016 7/7/2015 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) PHINDIRITBL  Ministry responsible for public administration has necessary capacity to exercise key human resource management functions for the core civil service (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Department responsible for civil service MPA Department of Civil management Value Service Administration has partially met. partially met. has staff 25 staff (14 in payroll unit) trained in all core HR functions Date 30-Sep-2009 30-Nov-2014 30-Nov-2014 30-Jun-2016 PHINDIRITBL Civil service training based on training strategy and monitored according to training impact assessment methodology (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training impact assessment No civil service training methodology strategy. KIPA training developed; covers only basic needs of KIPA training Value all public service. Training -- -- program effectiveness revised; not systematically MPA & KIPA monitored. staff trained in using the methodology Date 30-Sep-2009 30-Nov-2014 30-Nov-2014 30-Jun-2016 PHINDIRITBL  Centralized data management and systems maintenance leads to efficiency gains (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Approx. EUR 0.15 million Cost savings annual spending on from ICT partially met. Data partially met. Data duplicated maintenance, systems center is operationa, center is operationa, but Value plus some EUR 0.4 million maintenance of but cost savings have cost savings have not in duplicated equipment 30% (compared not been estimated yet. been estimated yet. and development of stand- to stand-alone alone systems systems) Date 30-Sep-2009 30-Nov-2014 30-Nov-2014 30-Jun-2016 Overall Comments 7/7/2015 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P101614 IDA-46920 Effective XDR 2.90 2.90 0.00 1.72 1.18 59% P101614 IDA-H5450 Effective XDR 2.30 2.30 0.00 2.17 0.13 94% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P101614 IDA-46920 Effective 04-Feb-2010 10-Mar-2010 17-Jun-2011 30-Jun-2013 30-Jun-2016 P101614 IDA-H5450 Effective 04-Feb-2010 10-Mar-2010 17-Jun-2011 30-Jun-2013 30-Jun-2016 Cumulative Disbursements Restructuring History Level Approved on 23-Jul-2012 ,Level 2 Approved on 03-Sep-2014 ,Level 2 Approved on 02-Dec-2014 7/7/2015 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Related Project(s) There are no related projects. 7/7/2015 Page 9 of 9 Public Disclosure Copy