The World Bank Report No: ISR12788 Implementation Status & Results Paraguay Public Sector Reform Development Policy Loan (P117043) Public Disclosure Copy Project Name: Public Sector Reform Development Policy Loan (P117043) Program Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 21-Dec-2013 Country: Paraguay Approval FY: 2012 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 13-Dec-2011 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date Last Archived ISR Date 27-Mar-2013 Effectiveness Date 07-Nov-2012 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The overall development objective of the proposed PSDPL is to contribute to the effectiveness and efficiency of the public sector. This is expected to be reached via the following specific objectives: (i) exerting effective Oversight of SOEs; (ii) improving Central Administration’s internal financial control; and (iii) strengthening the Tax System. Contribution to the CPS: The proposed DPL isfully consistent with the current World Bank Group CPS (2009-2013): two out of the three cross-cutting themes addressed by the CPS program – governance, poverty reduction, and equitable growth – are supported by the PSDPL. Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview Public Disclosure Copy The complete loan amount has been disbursed and implementation is progressing satisfactorily. Results Results Indicators Page 1 of 5 The World Bank Report No: ISR12788 Indicator Name Core Unit of Measure Baseline Current End Target State-Owned Enterprices Oversight:SOEs Text Value Audited financial statements Online publishing of SOEs financial operations are carried out in a for 2012 have been published audited financial statements. Public Disclosure Copy transparent manner and are subject to scrutiny on UMEPs website. by the Government and civil society. Date 01-Jul-2011 22-Nov-2013 31-Dec-2013 Comments State-Owned Enterprises Oversight: Timely Text Value Audit reports for 7 out of 9 SOEs audited financial delivery of SOEs audited financial statements. SOEs were published before statements are available no June 30, 2013. later than June 30 of the following year. Date 22-Nov-2013 31-Dec-2013 Comments FEPASA and DINAC had their reports published in July 2013. State-Owned Enterprises Oversight: Recovery Percentage Value 0.00 0.00 20.00 of 20% of the past-due debt accumulated by Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 Central Administration entities with SOEs. Comments The Budget 2013 included a provision for the payment of the 20% for the past-due accumulated debt. However, this provision was never regulated through a decree preventing any action to be taken. State-Owned Enterprises Oversight: Rate of Percentage Value 51.00 64.00 80.00 timely payments reaches 80% for basic Date 30-Jun-2010 22-Nov-2013 31-Dec-2013 services provided to the State by SOEs Comments Baseline Jan-Jun 2010 The increase in the rate of (Electricity, Telecommunication, Water). timely payments was achieved through a rule that requires SOEs to be in compliance with their utilities' Public Disclosure Copy payments to make changes in the budget. For 2014 a line will be included in the budget of each of the institutions to account for utilities' payments. At least 5 SOEs have established targets that Text Value 7 SOEs have management At least 5 SOEs have can be monitored on a regular basis by UMEP contracts establishing targets established targets that can that are monitored on a be monitored on a regular regular basis. basis by UMEP Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 Page 2 of 5 The World Bank Report No: ISR12788 Comments These companies are ANDE, ANNP, COPACO, ESSAP, INC, PETROPAR and DINAC. Public Disclosure Copy State-Owned Enterprises Oversight: The Hours Value 11.20 11.00 number of hours of power outage as measured Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 by hs/year per user has dropped to 11 hours. Comments Baseline 2010: 11.2 hr/year Data for the 3 first quarters of per user 2013 are: Q1: 4.98; Q2: 7.28; and Q3: 9.24. Please note that as the power outages are cyclical, itis not possible to calculate an average based only on 3 quarters. the data for quarter 4 is not available yet. These numbers are cumulative. State-Owned Enterprises Oversight: The Percentage Value 79.40 88.39 89.20 coverage of ESSAP water access as measured Date 31-Jan-2010 22-Nov-2013 31-Dec-2013 by the percentage of households in urban Comments Baseline January 2010: This indicator is no longer on areas with access to water has increased to 89.2%. 79.4% their management contracts, but they were still monitoring it. State-Owned Enterprises Oversight: The Percentage Value 19.00 18.00 percentage of user complaints to ESSAP has Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 decreased to 18%. Comments Baseline 2010: 19% This indicator has been removed from their management contracts and are no longer monitored. Currently they monitor average resolution time for complaints regarding drinking water, which is at 58%. Public Disclosure Copy State-Owned Enterprises Oversight: Fixed Days Value 20.00 10.00 17.00 telephone line installation time has decreased Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 to 17 days. Comments Baseline 2010: 20 days The improvement up to Q3 is due to the exclusion of weekends and holidays of the calculation of the indicator. For Q4 it is expected to outsource the installation and maintenance of services of IPTV and ADSL. Page 3 of 5 The World Bank Report No: ISR12788 Central Administration Internal Financial Text Value PI-20 and PI-21: D+ Achieved. PI-20 and PI-21 for 50% of Control: PEFA Indicators for internal control the ministries are rated C. and internal audit (PI-20 and PI-21) for 50% of Date 31-Dec-2008 22-Nov-2013 31-Dec-2013 the ministries are rated C. Public Disclosure Copy Comments Baseline: 2008 Integrated Mission concluded that Fiduciary Assessment rating achievements made by the for PI-20 and PI-21: D+ time of the 2011 PEFA report have been maintained. An advance from D+ to C The end target of this shows which shows: (i) A indicator has been achieved. more comprehensive set of internal control rules, and (ii) A broader coverage and quality of internal audit function and a higher extent of management response to internal audit findings. Tax System: Tax-to-GDP ratio is at least Percentage Value 13.40 13.80 13.80 13.8%. Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 Comments Baseline 2010:13.4% GDP measurement methodology in the country has been altered through the inclusion of the sale of energy by the Bi-national energy firms Itaipu and Yasireta to the national production levels. Notwithstanding, using this altered GDP calculation, and adding to the tax collection (numerator of the indicator) the royalties provided by these Bi-national firms, the Tax-to-GDP ratio would reach 15.5 percent for 2012. Public Disclosure Copy Indicator stated above is based on the original GDP and tax collection methodology used at the time of the loan agreement (excludes Bi-national energy firms sales). Page 4 of 5 The World Bank Report No: ISR12788 Tax System: Ratio of audits of large tax payers Percentage Value 55.00 75.00 70.00 that result in additional assessment exceeds Date 31-Dec-2010 22-Nov-2013 31-Dec-2013 70%. Comments Baseline 2010: 55% 20 audits of large tax payers Public Disclosure Copy have been carried out of which 15 resulted in additional assessments. Data on Financial Performance (as of 19-Nov-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117043 IBRD-81090 Effective 13-Dec-2011 02-Mar-2012 07-Nov-2012 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117043 IBRD-81090 Effective USD 100.00 100.00 0.00 100.00 0.00 100.00 Tranches Tranche 1 Amount (USD) Expected Release Date Actual Release Date Status 0 Pending Released Key Decisions Regarding Implementation N/A Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Operations There are no related projects. Page 5 of 5