The World Bank Report No: ISR11222 Implementation Status & Results Madagascar Governance and Institutional Development Project II (P103950) Public Disclosure Copy Operation Name: Governance and Institutional Development Project II Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 09-Dec-2013 (P103950) Country: Madagascar Approval FY: 2008 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 03-Jun-2008 Original Closing Date 31-Aug-2012 Planned Mid Term Review Date 31-Oct-2013 Last Archived ISR Date 13-Mar-2013 Effectiveness Date 13-Oct-2008 Revised Closing Date 31-Aug-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the Recipient’s public financial management and social accountability at the central government and at the Communal levels. Has the Project Development Objective been changed since Board Approval of the Project? ● Yes No Component(s) Component Name Component Cost Component 1 – REVISED: Improvement of Public Financial Management. 13.33 Component 2 – REVISED: Improvement of Local Governance 8.38 Component 3 - NEW: Institutional Strengthening & Knowledge Management. 4.90 Component 4 – NEW: Project Coordination 4.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Unsatisfactory Overall Risk Rating High High Implementation Status Overview The progress towards the achievement of the project's development objectives of strengthening the efficiency and transparency of Government at the central and communal level is unsatisfactory. As only one of the four project development objective (PDO) level indicators progressed during the period covered by the report, it is unlikely that the project will achieve its objectives by August 2014. Over the period, progress was made essentially in the area of budget transparency with the Ministry of Finance and Budget (MFB) publishing Page 1 of 7 The World Bank Report No: ISR11222 regularly quarterly budget execution reports. However, the Government has yet to launch the Public Expenditure Framework Assessment (PEFA), which is essential in informing current as well as future public financial management reforms. As a result of the political crisis, the Local Governance Index (IGL), which measures transparency, accountability, and participation at the communal level have regressed, and the number of project beneficiaries stagnated. The recruited agencies should accelerate the implementation of the activities supporting local governance to achieve results before project closing in August 2014. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Madagascar Not Entered Fort Dauphin Madagascar Not Entered Nosy Be Madagascar Not Entered Moramanga Madagascar Diana Antsiranana Madagascar Analamanga Antananarivo Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of selected indicators that increase Number Value 0.00 0.00 3.00 their rating in the PEFA self evaluation report Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments PEFA Self-Assessment delayed to November 2013 following a request from the client to conduct the Assessment after the first round of the Presidential elections (October 25) to avoid potential reputational risks for the client. Public Disclosure Copy Number of ministries publishing quarterly Number Value 1.00 35.00 10.00 budget execution report through media or Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 internet. Comments The Ministry of Finance and Budget is publishing on the web a quarterly budget execution report which includes information on budget execution for 35 Ministries and the Prime Page 2 of 7 The World Bank Report No: ISR11222 Minister's Office. The Bank team will engage with the client to revise target. New target will be reported in the Public Disclosure Copy December 2013 ISR. The Local Governance Index (IGL ) average is Number Value 3.90 3.70 4.50 increased in targeted Local Governments. Date 31-Aug-2013 31-Oct-2013 31-Aug-2014 Comments The Local Governance Index (IGL) measuring transparency, accountability and participation at the communal level declined as a result of the political crisis. Direct Project Beneficiaries Number Value 0.00 7400.00 8000.00 Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments - Persons trained: 6800 - Persons trained: 7400 - Persons trained: 8000 - Commune befitting from - Commune befitting from - Commune befitting from communal grants: 0 communal grants: 0 communal grants: 100 - OSC benefiting from Social - OSC benefiting from Social - OSC benefiting from Social Accountability grants: 0 Accountability grants: 0 Accountability grants: 45 Both thecommunal and social accountability grants have not been allocated yet. The decision on not distribute the grants was motivated by the risk of political capture during the Presidential electoral campaign (October – December, 2013). Intermediate Results Indicators Public Disclosure Copy Page 3 of 7 The World Bank Report No: ISR11222 Indicator Name Core Unit of Measure Baseline Current End Target Number of PEFA audited self-evaluation Number Value 0.00 0.00 2.00 reports published and discussed Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Public Disclosure Copy Comments PEFA Self-Assessment delayed to November 2013 following a request from the client to conduct the Assessment after the first round of the Presidential elections (October 25) to avoid potential reputational risks for the client. Number of IFMIS Centralization/integration Number Value 1.00 1.00 8.00 indicators rated « satisfactory » Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments Note the IFMIS module on Revenues is partially integrated. Number of bids , of the central Government, Number Value 58.00 27.00 75.00 awarded under open competition Date 31-Aug-2012 31-Dec-2012 31-Aug-2014 Comments Decline in performance is explained by the internal auditor's strike (between June and early October 2013). The Number of Public Institutions that endorse, Number Value 0.00 0.00 60.00 publicly, the “Access to information and Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Knowledge Sharing Charter” Comments “Access to information and Knowledge Sharing Charter” drafted. Currently under review by 45 government institutions prior to approval. Public Disclosure Copy Percentage of FDL communes with an Percentage Value 39.00 0.00 50.00 improved CGF score (D+) (FDL communes) Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments Tender completed and executing agencies selected. However, activities supporting this indicator have not started yet. December 2012 ISR reported Page 4 of 7 The World Bank Report No: ISR11222 based on data collected from a sample of 27 communes. Percentage of communes publishing Percentage Value 0.00 0.00 100.00 information on public service in compliance Public Disclosure Copy Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 with BIANCO recommendations. Comments Tender completed and executing agencies selected. However, activities supporting this indicator have not started yet. Number of land parcels recorded for local Number Value 3000.00 3000.00 8000.00 taxation Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments Tender completed and executing agencies selected. However, activities supporting this indicator have not started yet. Number of land parcels with secured Number Value 2500.00 5000.00 7500.00 ownership rights registered Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments Success of the communal land registration operation exceeds expectations. Number of social accountability initiatives Number Value 169.00 169.00 450.00 implemented at the local level Date 31-Aug-2012 31-Dec-2012 31-Aug-2014 Comments Tender completed and executing agencies selected. However, activities supporting this indicator have not started yet. Percentage of GDLN budget that is covered by Percentage Value 40.00 39.00 60.00 own resources. Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Public Disclosure Copy Comments Number visitor of the INSTAT Website Number Value 40000.00 163000.00 90000.00 Date 31-Aug-2012 31-Oct-2013 31-Aug-2014 Comments Knowledge management database available Yes/No Value No No Yes and accessible via internet Date 31-Aug-2012 31-Dec-2012 31-Aug-2014 Comments On-going tendering process. Data on Financial Performance (as of 26-Aug-2013) Page 5 of 7 The World Bank Report No: ISR11222 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P103950 IDA-44110 Effective 03-Jun-2008 15-Jul-2008 13-Oct-2008 31-Aug-2012 31-Aug-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P103950 IDA-44110 Effective XDR 24.30 19.10 5.20 13.53 5.57 71.00 Disbursement Graph Key Decisions Regarding Implementation The Bank missions (June and October 2013) agreed with the government that they would focus on implementing the following activities by agreed upon deadlines: Conduct PEFA Public Disclosure Copy self-assessment (November 2013); Recruit firms responsible for consolidating the IFMIS integration and proposing priorities for future PFM reforms (November 2013); Revise the PFM stakeholders training plan (November 2013); Recruit a consultant responsible to set-up the knowledge platform (December 2013); Recruit a firm responsible for conducting a custom institutional assessment/HR study aimed at increasing revenue collection (January 2014); Launch the “Listening to Madagascar” Survey (January 2014); and Accelerate the roll-out of two Integrated Communal Development Operations (ICDO) (On-going), including the training of local government officials in the area of public financial management and anti-corruption, the launch of participatory budgeting activities in selected communes before the end of December 2013 and cash transfers (communal grants) to local government in January 2014. The detailed action plan was discussed at length during the June and October missions and reflected in the revised Project Implementation Plan (PIP) cleared by the Bank on October 15, 2013. Underpinning these activities, the project team also reached an agreement with the World Bank Institute (WBI) Governance and Leadership Team to use the Rapid Results Approach (RRA) to speed-up project implementation and accelerate disbursements before the project’s closure in August 2014. Page 6 of 7 The World Bank Report No: ISR11222 The Bank encourages the Government to call a meeting of the project's Steering Committee (Comité d’Orienration et Suivi) by November 20th, 2013. The objective of the meeting will be to approve the revised Project Implementation Plan (PIP) and ensure all stakeholders will facilitate the implementation of all project activities. Restructuring History Public Disclosure Copy Board/AOB Decision on 15-Jul-2012 Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7