The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) LATIN AMERICA AND CARIBBEAN | Panama | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 16 | ARCHIVED on 09-Dec-2019 | ISR38644 | Implementing Agencies: Republic of Panama, Direccion de Administracion de Proyectos, DAP Key Dates Key Project Dates Bank Approval Date: 03-Mar-2011 Effectiveness Date: 07-Mar-2012 Planned Mid Term Review Date: 21-Nov-2014 Actual Mid-Term Review Date: 15-Sep-2014 Original Closing Date: 30-Sep-2016 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist public agencies of the Borrower in producing, using and disseminating timely and quality performance information, thereby allowing a more efficient, transparent and accountable use of the Borrower#s public budget funds. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component/Part 1: Developing capacities for results-based planning, budget management and evaluation:(Cost $2.52 M) Component/Part 2: Managing Public Resource Information Efficiently:(Cost $42.98 M) Component/Part 3: Strengthening public procurement and contracting:(Cost $9.00 M) Component/Part 4: Supporting Project Management Capacities:(Cost $0.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The last supervision mission (September 16-20, 2019), noted that the three PDO indicators are unlikely to be achieved by December 31, 2019. The mission noted the concerns raised regarding the functionality of ISTMO centered on the negative perception of the system by users, the unreliability and inconsistent financial statements information produced by the system and the limited capacity of MEF to sustain the system. The Bank will continue to provide technical guidance to help solve the inter-institutional challenges that are hampering the successful deployment of ISTMO and make progress towards the achievement of the component 2 PDO indicator to “produce consolidate financial statements for central government 12/9/2019 Page 1 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) 12/9/2019 Page 2 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) 12/9/2019 Page 3 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) 12/9/2019 Page 4 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Low Low Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results 12/9/2019 Page 5 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) PDO Indicators by Objectives / Outcomes Efficient, transparent and accountable use of the public budget funds IN00746766 ►Quality of public sector financial information improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The first consolidated financial statements for Target has not been The government the central government achieved. The MoF Financial reports do not prepares through are expected to be continues working on provide complete ISTMO and publishes automatically produced strengthening the information on within 6 months after by early 2020. The MoF quality and reliability of Value government revenue and the end of the fiscal is working on financial information expenditures thus year consolidated strengthening the quality produced at the impeding the monitoring financial statements of and reliability of financial institutional level of budget execution the Central information produced at needed for Government the institutional level consolidation. needed for consolidation. Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 IN00746768 ►Increased transparency in public procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 60% competitive 100% of competitive Government expects procurement processes procurement This indicator will be to start testing system of Central and processes of central achieved once the functionality in October Decentralized and decentralized Value system has been and roll out Panama Government are publicly entities are publicly implemented, which is Compra to at least 10 and daily available available through expected by July 2019. institutions in through PanamaCompra PanamaCompra 3 on December. 2 a daily basis. Date 17-Jul-2015 29-Mar-2019 20-Sep-2019 31-Dec-2019 Producing, using and disseminating timely and quality performance information IN00746767 ►Public entities increase the production and dissemination of performance information linked with budget information (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The authorities have indicated that they are laying the ground work The authorities have Information on the for the next indicated that they are budget associated with Performance information administration to fully laying the ground work key performance is limited, not publicly implement results based for the next Value indicators for 10 public available and not linked budgeting in the 2020 administration to fully sector entities is to financial information budget, which will be implement results produced and approved in August based budgeting in the publically disclosed. 2019. No additional work 2021 budget. has been done beyond the pilots in 5 sectors. Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 12/9/2019 Page 6 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Intermediate Results Indicators by Components Component/Part 1: Developing capacities for results-based planning, budget management and evaluation IN00746770 ►Improved performance orientation of the budget (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target DIPRENA selected 3 sectors (Transport, Program budgeting Education and Health) approach is introduced Target has been to pilot program in three pilot ministries achieved. In 2018, The budget document classfications. for the 2018 budget DIPRENA selected 6 does not use program Consultancy work has year (budget for three new entities to pilot Value classifications with very been done to review ministries are prepared performance budgeting in limited financial the budget using program parallel with the regular performance information classifications of these classification and budget submission sectors. However, the financial and non- process. work has not been financial performance applied in the budget information) process. Date 01-Jun-2011 29-Mar-2019 20-Sep-2019 31-Dec-2019 Component/Part 2: Managing Public Resource Information Efficiently IN00746771 ►Increased institutional coverage of the new ISTMO model in Central Government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 01-Jun-2011 29-Mar-2019 20-Sep-2019 31-Dec-2019 Target has been achieved. Comments: IN00746773 ►Increased institutional coverage of the new ISTMO model in Decentralized Government (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 89.00 89.00 100.00 Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 ITSMO has been implemented in 32 of the 36 decentralized institutions. The remaining 4 institutions will not deploy ITSMO because they do not meet the minimum requirements in terms of budget structure, Comments: operational structure, and quality of information. Additionally, ITSMO has been deployed in 5 State-Owned Enterprises and 4 Financial Intermediaries. IN00746774 ►Increased use of ISTMO in Central Government (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target SIAFPA, RAMAN, and all Target is achieved. Target is achieved. 75% of Central the previous information 99.98% of Central 100% of Central Government’s Budget Value systems which supported Government´s Budget is Government´s Budget is subject to ISTMO the budget execution, subject to ITSMO´s is subject to ITSMO´s controls and 12/9/2019 Page 7 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) were basically ex-post controls and regulation controls and regulation registration by Dec. registry systems. (excluding transfers, (excluding transfers, 2019. (excluding Implementation of ex- fondos financieros and fondos financieros and transfers, Fondos ante controls was not payroll) payroll) Financieros, payroll) feasible Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 Clarifying measurement of this indicator with DNC. Comments: IN00746775 ►Increased use of ISTMO in Decentralized Government (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target SIAFPA, RAMAN, and all 46% of Decentralized 75% of Decentralized the previous information Target is achieved. 75% Entities´ budget is Government’s Budget systems which supported of Decentralized Entities´ subject to ITSMO´s is subject to ISTMO the budget execution, budget is subject to controls and regulation controls and Value were basically ex-post ITSMO´s controls and (excluding transfers, registration by Dec. registry systems. regulation (excluding fondos financieros, 2019. (excluding Implementation of ex- transfers, fondos and payroll, and transferences, Fondos ante controls was not financieros, and payroll) excluding Caja de Financieros, Payroll) feasible Seguro Social) Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 Universidad de Panamá, Universidad Tecnológica de Panamá, Zona Franca del Barú, and Instituto Panameño de Deportes will not deploy ITSMO because they do not meet the minimum requirements in terms of budget structure, operational structure, and quality of information. Together they represent 54% Comments: of Decentralized Entities´budget (excluding Caja de Seguro Social, which was not included in the ITSMO implementation plan because this entity had already procured and deployed SAP). IN00746776 ►Extended functional coverage of the new ISTMO model (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target ISTMO includes all Achieved. ISTMO functions and includes all functions and integration with The new IFMIS model integration with National National Debt integrates Debt (SIGADE), Single (SIGADE), Single The current SIAFPA functionalities for Treasury Account, and Treasury Account, and does not include budget preparation, Tax. The only integration e-Tax. However, the functionalities for budget accounting, budget missing is that with budget formulation Value preparation and is not execution, treasury PanamaCompra 3 and module of ISTMO is harmonized with national and accounting; with public investment (not not being used due to payroll, procurement and interfaces with national part of end target). In resistance of budget public investment system debt, the treasury addition, ISTMO has unit in MEF. The 2019 single account, and the implemented integration budget was prepared e-tax system with payroll (EPD) and in an application Fiori, SIAFPA Consolidado. which is integrated with ITSMO. Date 01-Jun-2011 29-Mar-2019 20-Sep-2019 31-Dec-2019 Component/Part 3: Strengthening public procurement and contracting IN00746769 ►Improved procurement complaint management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/9/2019 Page 8 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Panama Compra 3 Panama Compra 3 Platform includes Platform includes The current functionalities for functionalities for DGCP has PanamaCompra system managing complaints. managing complaints. implemented a has no instruments to Government expects Value Implementation of the procurement complaint facilitate complaints to start testing the Platform has been module through about procurement platform in October initiated in July 2018 and PanamaCompra 3 processes and roll out to at least is expected to be 10 institutions in completed by July 2019. December 2019. Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 IN00746772 ►Modernized legal framework for procurement (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Target has been Target has been achieved. Law 61, achieved. Law 61, reforming public reforming public contracting in Panama, Updated procurement contracting in Panama, Law 22 (2006) and published September law (Law 61) and published September 27, regulation 366 (2006). 27, 2017 in the Official corresponding 2017 in the Official The law has changed 6 Gazette (reforms the regulations (Decreto Gazette (reforms the text Value times between 2009 and text of Law 22 of 40) establishing of Law 22 of 2006). 2014, but the regulation 2006). Executive guiding principles for Executive Decree 366 has never been Decree (Regulation) transparency, (Regulation) 40, modified. 40, published April 10, professionalization, published April 10, 2018 2018 in the Official and efficiency. in the Official Gazette Gazette (replaces (replaces Regulation 366 Regulation 366 of of 2006). 2006). Date 30-Aug-2013 29-Mar-2019 20-Sep-2019 31-Dec-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P121492 IBRD-80160 Effective USD 55.00 55.00 0.00 43.49 11.51 79% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P121492 IBRD-80160 Effective 03-Mar-2011 26-Sep-2011 07-Mar-2012 30-Sep-2016 31-Dec-2019 Cumulative Disbursements 12/9/2019 Page 9 of 10 The World Bank Implementation Status & Results Report Enhanced Public Sector Efficiency Technical Assistance Loan (P121492) Restructuring History Level 2 Approved on 09-Oct-2015 ,Level 2 Approved on 29-Jun-2018 Related Project(s) There are no related projects. 12/9/2019 Page 10 of 10