The World Bank Report No: ISR9619 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: 3 Status: ARCHIVED Archive Date: 27-Mar-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 06-Oct-2012 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) Moderately 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: ISR9619 Indicator Name Core Unit of Measure Baseline Current End Target State-Owned Enterprices Oversight:SOEs Text Value All audit reports for 2011 have Online publishing of SOEs financial operations are carried out in a been published on the UMEP audited financial statements. Public Disclosure Copy transparent manner and are subject to scrutiny website. by the Government and civil society. Date 01-Jul-2011 12-Feb-2013 31-Dec-2013 Comments In an effort to increase the quality of audits, some of the audit companies will be selected by UMEP every two years starting this year. Audit companies for 5 SOEs have been selected for this year. Audit reports are expected for March 2013. 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, 2012. later than June 30 of the following year. Date 12-Feb-2013 31-Dec-2013 Comments ANNP audit report was published on July 17, 2012 and FEPASA (railroad) is not operational, so no audit report was prepared. 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 13-Feb-2013 31-Dec-2013 Central Administration entities with SOEs. Comments The Budget 2013 includes a provision for the payment of the 20% for the past-due accumulated debt. It is yet to be decided how muchof these funds will be paid to which Public Disclosure Copy SOE. State-Owned Enterprises Oversight: Rate of Percentage Value 51.00 80.00 timely payments reaches 80% for basic Date 30-Jun-2010 13-Feb-2013 31-Dec-2013 services provided to the State by SOEs Comments Baseline Jan-Jun 2010 The budget law 2013 includes (Electricity, Telecommunication, Water). a provision that obliges public sector entities to prioritize payments of basic services to SOEs. Page 2 of 5 The World Bank Report No: ISR9619 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 Public Disclosure Copy Date 31-Dec-2010 13-Feb-2013 31-Dec-2013 Comments These companies are ANDE, ANNP, COPACO, ESSAP, INC, PETROPAR and DINAC State-Owned Enterprises Oversight: The Hours Value 11.20 11.00 number of hours of power outage as measured Date 31-Dec-2010 12-Feb-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 2012 are: Q1: 13.49; Q2: 9.67; and Q3: 5.61. Please note that as the power outages are cyclical, it is not possible to calculate an average based only on 3 quarters. the data for quarter 4 is not available yet. State-Owned Enterprises Oversight: The Percentage Value 79.40 87.00 89.20 coverage of ESSAP water access as measured Date 31-Jan-2010 13-Feb-2013 31-Dec-2013 by the percentage of households in urban Comments Baseline January 2010: areas with access to water has increased to 89.2%. 79.4% State-Owned Enterprises Oversight: The Percentage Value 19.00 17.00 18.00 percentage of user complaints to ESSAP has Date 31-Dec-2010 31-Dec-2012 31-Dec-2013 decreased to 18%. Comments Baseline 2010: 19% Three additional call centers are planned for 2013. State-Owned Enterprises Oversight: Fixed Days Value 20.00 20.00 17.00 telephone line installation time has decreased Date 31-Dec-2010 31-Dec-2012 31-Dec-2013 to 17 days. Public Disclosure Copy Comments Baseline 2010: 20 days Average of 4 quarters in 2012: Q1:21 days, Q2: 22 days, Q3: 19 days and Q4: 18 days. For an explanation please refer to the previous ISR. Page 3 of 5 The World Bank Report No: ISR9619 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 12-Feb-2013 31-Dec-2013 the ministries are rated C. Public Disclosure Copy Comments Baseline: 2008 Integrated As per the 2011 PEFA report Fiduciary Assessment rating (repeat assessment) for for PI-20 and PI-21: D+ Paraguay, both indicators PI-20 and PI-21 are rated C. 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 13.50 13.80 13.8%. Date 31-Dec-2010 31-Dec-2012 31-Dec-2013 Comments Baseline 2010:13.4% Tax System: Ratio of audits of large tax payers Percentage Value 55.00 90.00 70.00 that result in additional assessment exceeds Date 31-Dec-2010 25-Feb-2013 31-Dec-2013 70%. Comments Baseline 2010: 55% 20 audits of large tax payers have been carried out of which 18 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 Public Disclosure Copy 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 Page 4 of 5 The World Bank Report No: ISR9619 Amount (USD) Expected Release Date Actual Release Date Status 0 Pending Released Public Disclosure Copy Key Decisions Regarding Implementation N/A Restructuring History There has been no restructuring to date. Related Operations There are no related projects. Public Disclosure Copy Page 5 of 5