The World Bank Report No: ISR13597 Implementation Status & Results Panama PA Third Programmatic Development Policy (P146942) Public Disclosure Copy Project Name: PA Third Programmatic Development Policy (P146942) Program Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 25-Mar-2014 Country: Panama Approval FY: 2014 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 30-Dec-2013 Original Closing Date 30-Jan-2015 Planned Mid Term Review Date Last Archived ISR Date Effectiveness Date Revised Closing Date 30-Jan-2015 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) This single-tranche operation in the series of three Programmatic Fiscal Management and Efficiency of Expenditures DPLs is designed to help improving fiscal management and strengthen social transfer programs. The operation supports four key policy areas: (i) mobilizing domestic tax revenue and increasing tax transparency; (ii) modernizing public procurement practices; (iii) improving the institutional arrangements for debt management; and (iv) expanding social transfer programs and improving the capacity of institutions for targeting. 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 Overall Implementation Progress (IP) Satisfactory Implementation Status Overview Public Disclosure Copy The board approved the Panama third programmatic fiscal management and efficiency of expenditures development policy loan on December 30, 2013. The loan agreement was signed on January 28, 2014. Results Results Indicators Page 1 of 5 The World Bank Report No: ISR13597 Indicator Name Core Unit of Measure Baseline Current End Target Central Government tax revenue as a share of Percentage Value 11.00 12.20 12.00 GDP. Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Public Disclosure Copy Comments In 2013, tax revenue as a share of GDP exceeded the end target of 12 percent. ITBMS revenue as a share of GDP. Percentage Value 2.10 3.10 3.30 Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments ITBMS revenue as a share of GDP is lower than in 2012, when it reached the goal of 3.3 as a share of GDP. Large Taxpayer Unit (LTU) coverage of total Percentage Value 0.00 0.00 55.00 tax collection. Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments The Government, through the MEF, has created the LTU within the DGI and has made it operational through: 1) the identification of 72 Large Taxpayers; 2) the selection and training of ten (10) tax auditors to carry out audits of large taxpayers; and 3) the preparation by DGI of an action plan to be implemented by the LTU in 2013 to increase tax collection from Large Taxpayers. Tax information exchange agreements signed Number Value 0.00 9.00 12.00 and exchanged information as requested. Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Comments Tax information is not shared Panama has signed 9 tax Public Disclosure Copy with any country information exchange agreements and responded to 21 information requests. Central government agencies and all others Number Value 2452.00 6622.00 7300.00 subject to Law 22 and its modifications use Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 framework agreements and the number of Comments The number of products The number of products catalogue items procured under those framework agreements is increased. covered by framework covered by framework agreements amounted to agreements amounted to 2452 in 2009. 6622 in 2013. Page 2 of 5 The World Bank Report No: ISR13597 The medium-term debt management strategy Text Value is published and revised annually and Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 corresponding debt evaluation reports compare Comments No formal debt management The Government, through the the evolution of risk indicators with the targets Public Disclosure Copy in the strategy in 2014. strategy in place. MEF has approved the organizational structure of the Crédito Público, including the functions and responsibilities for each of its internal units. The Government through MEF has adopted a plan for domestic debt market development including: (i) the adoption of a policy and issuance of regulation for the promotion and functioning of the primary dealers program; and (ii) the modification of the contracts with international credit rating agencies to have domestic sovereign bonds rated. The proxy means test is in use to select all Percentage Value 0.00 100.00 households that enter in the Red de Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 Oportunidades CCT program. Comments The proxy means test used to determine eligibility has been revised this year to more accurately reflect poverty conditions. It will be implemented in 2014, fulfilling the medium term outcome indicator of using the revised proxy means test to select all households that enter the Public Disclosure Copy program. Moreover, the Government is currently conducting a targeting assessment of Red de Oportunidades and results are expected by May 2014. Page 3 of 5 The World Bank Report No: ISR13597 Increased ability of MIDES to conduct Text Value recertification of beneficiaries (evidenced by Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 resolution and recertification strategy of 100a Comments No tools to conduct The Government through los 70) in 2014. Public Disclosure Copy recertification. MIDES has adopted a policy and issued regulations for the better targeting of beneficiaries of the 100 a los70 program including provisions (i) to verify compliance with beneficiaries’ co-responsibilities and processes for entry to and exitfrom said program; (ii) to incorporate beneficiaries in the Registro Único de Beneficiarios; and (iii) to formally incorporate the Secretaría Ejecutiva del Programa 100 a los 70 into MIDES. Issuance of quarterly reports by MIDES based Yes/No Value No No Yes on the single registry assessing the coverage Date 31-Dec-2009 07-Mar-2014 31-Dec-2014 and efficiency of social programs, including Comments No report is due yet. individual duplications at household level. Percentage of children from the poorest quintile Percentage Value 0.00 0.00 70.00 who receive Beca Universal. Date 31-Dec-2009 31-Dec-2009 31-Dec-2014 Comments The team is contacting the agency for the updated data. The number of people with severe disabilities Number Value 0.00 5000.00 10000.00 and in porverty or vulnerable condition covered Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 by the Angel Guardian program. Comments The Angel Guardian program Public Disclosure Copy started in 2013 and has already covered half of the end target. Data on Financial Performance (as of 04-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P146942 IBRD-83330 Not Effective 30-Dec-2013 28-Jan-2014 30-Jan-2015 30-Jan-2015 Disbursements (in Millions) Page 4 of 5 The World Bank Report No: ISR13597 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P146942 IBRD-83330 Not Effective USD 200.00 200.00 0.00 0.00 200.00 0.00 Tranches Public Disclosure Copy Tranche 1 Amount (USD) Expected Release Date Actual Release Date Status 0 Pending Released Key Decisions Regarding Implementation The board approved the Panama third programmatic fiscal management and efficiency of expenditures development policy loan on December 30, 2013. The loan agreement was signed on January 28, 2014. It has not become effective yet. Restructuring History There has been no restructuring to date. Related Operations P123255-Development Policy Loan, P127332-Second Programmatic Development Policy Loan Public Disclosure Copy Page 5 of 5