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: 5 | ARCHIVED on 24-Jan-2020 | ISR40240 | 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: 30-Apr-2020 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 Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions Since the previous ISR was filed on October 29, 2019 the following positive developments have taken place: 1. Implementation of two major consultancy have started: the Program-based Budgeting technical assistance and PEFA assessment. 2. Inception mission for the above two consultancies took place during weeks of January 15th and January 20, 2020, respectively. 3. The progress was also made toward implementation of consultancies on the Technical Assistance to the Ministry in Strengthening Budget Planning, Coordination, Execution and Transparency and Change Management consultancy are . The progress is significant and shows the Ministry of Finance (MoF) renewed commitment to the project. These combined with the transfer of the project management function to an experienced and well-staffed - with fiduciary, procurement and logistics specialist - project implementation 1/24/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) unit (PIU) within the MoF in October 2019, and appointment a new dynamic Project Director (newly appointed Deputy Minister of Finance) who was presiding over the progress made in the last 2.5 months, validates an upgrade of the IP project ratings to MS. The progress outlined above, allows an increase of IP project rating from Moderately Unsatisfactory (MU) to Moderately Satisfactory (MS). The PDO rating will remain MU, pending a decision about extension of the project closing date. Extension of the closing date discussions are underway. 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 Moderate 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 IN00792513 ►Decreased variance in functional composition of expenditure out-turn (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The deviation of actual The deviation of actual expenditure according to expenditure according the functional to the functional Reduction by at least 7 classification for 2018 classification for 2018 (seven) percentage Value 13.10 amounted to 21.4%, amounted to 21.4%, points compared to which shows which shows baseline deterioration in the deterioration in the indicator performance by indicator performance 8.3% from the baseline by 8.3% from the 1/24/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) value. Data for 2019 is baseline value. Data expected to be available for 2019 is expected to in the 1st quarter 2020. be available in the 1st quarter 2020. Date 28-Sep-2018 18-Oct-2019 18-Oct-2019 31-Aug-2020 IN00792514 ►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 The indicator value for 2018 is 4.6% of total 2018 is 4.6% of total republican budget republican budget expenditures, which Value 4.50 expenditures, which Not more than 3% indicates a indicates a deterioration deterioration in the in the indicator indicator performance performance in 2018. in 2018. Date 31-Dec-2017 18-Oct-2019 18-Oct-2019 31-Aug-2020 IN00792515 ►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 IN00792546 ►Improved revenue forecasting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The forecasting is done This activity will be This activity will be based on revenue covered under Package covered under Updated methodology forecasting methodology Value 2. The draft ToR is ready Package 2. The RfEOI is used to forecast adopted in 2015. There for uploading into the WB was published on revenues is no information system procurement system. December 16, 2019. on revenue forecasting Date 01-Jun-2016 18-Oct-2019 21-Jan-2020 31-Aug-2020 IN00792550 ►Increased public participation in budget process, an OBI participation score (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 31 out of 100 (2017). 31 out of 100 (2017). 57 out of 100 Questions used in 2017 Questions used in (2019/2020). Value 52 out of 100 (2015) assessment have 2017 assessment changed, therefore a have changed, The questions used to direct comparison of therefore a direct compute this score 1/24/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) 2015 and 2017 scores comparison of 2015 have changed, may be misleading. and 2017 scores may therefore, the end-of- be misleading. project value may need to be revisited. Date 31-Dec-2015 04-Mar-2019 04-Mar-2019 31-Aug-2020 IN00792553 ►Training in PFM area in support of PFM Strategy delivered (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target ToRs for package 3 ToRs for package 3 MoF Training center is covering capacity covering capacity actively involved into building and training Training of at least 800 Value building and training training of relevant activities. The RfEOI PFM staff activities is under officials in PFM area was published on preparation. December 27, 2019. Date 01-Jul-2015 18-Oct-2019 21-Jan-2020 31-Aug-2020 Building capacity of the Ministry of Finance in the public finance management IN00792547 ►Enhanced e-GP coverage (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A firm to assist MoF in developing the e-GP A firm to assist MoF in consultancy module has developing the e-GP been contracted, but consultancy module e-GP only covers goods e-GP also covers Value implementation is has been contracted; and works procurement consultancy selection seriously delayed due to implementation MoF inability to fulfil accelerated in requirements outlined in December 2019. the ToRs Date 30-Nov-2017 18-Oct-2019 21-Jan-2020 31-Aug-2020 IN00792551 ►Increased capacity in internal audit,€€ number of certified auditors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target According to According to information information obtained obtained from the MoF, from the MoF, out of out of 96 training 96 training Value 0.00 participants, 84 - passed participants, 84 - 70.00 certification exams, 62 of passed certification whom work as auditors in exams, 62 of whom the public service. work as auditors in the public service. Date 30-Nov-2017 18-Oct-2019 18-Oct-2019 31-Aug-2020 Intergovernmental Fiscal Relations and Sub-National PFM IN00792548 ►System of intergovernmental fiscal relations improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/24/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) No work has been done, yet. The system of PEFA package was intergovernmental retendered. The RFP PEFA inception No vision to improve fiscal relations was published and mission is taking place Value intergovernmental improved based on the proposals were on January 20-23, transfer system. project submitted and opened on 2020. recommendations is October 3, 2019. fully operational Contracting is expected to be finalized by October 31, 2019. Date 30-Nov-2017 04-Mar-2019 21-Jan-2020 31-Aug-2020 IN00792552 ►Equalization power of the intergovernmental fiscal transfers formula improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This activity to be This activity to be implemented under implemented under Reduced by 15% Value 1653,7 for 2017 package 2. ToRs are package 2. RfEOI was compred tot he currently under published on baseline value preparation. December 16, 2019. Date 31-Dec-2017 18-Oct-2019 21-Jan-2020 31-Aug-2020 Project Management IN00792549 ►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 existing PIU under Project implementation MoF. The CLMU is function transferred to adequately staffed to the CLMU - the existing efficiently perform its The PIST is fully PIU under MoF. The duties. While staffed and preforms Value PIST does not exist CLMU is adequately recruitment of a its duties timely and staffed to efficiently Project Coordinator with adequate quality perform its duties (PC) is pending, the pending the recruitment MoF appointed an of a Project Coordinator. interim Acting Project Coordinator who fulfills this role in a satisfactory manner. Date 01-Jun-2018 18-Oct-2019 21-Jan-2020 31-Aug-2020 Data on Financial Performance Disbursements (by loan) 1/24/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) 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) 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. 1/24/2020 Page 6 of 6