The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) Afghanistan Capacity Building for Results Facility (CBR) (P123845) SOUTH ASIA | Afghanistan | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2012 | Seq No: 15 | ARCHIVED on 18-Sep-2018 | ISR33062 | Implementing Agencies: Independent Administrative Reform and Civil Service Commission, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 11-Dec-2011 Effectiveness Date: 21-Jan-2012 Planned Mid Term Review Date: 20-Jan-2014 Actual Mid-Term Review Date: 20-Jan-2014 Original Closing Date: 31-Dec-2017 Revised Closing Date: 31-Dec-2018 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project's development objective is to assist the government in improving the capacity and performance of select line ministriesin carrying out their mandates and delivering services to the Afghan people. This will be achieved through the implementation of specific capacity and institution building programs, which include systematic monitoring of and reporting on results. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) To improve the capacity and performance of priority line ministries and independent agencies in selected reform areas. Components Table Name Technical Assistance Facility in Support of Civil Service Reform:(Cost $15.00 M) Building Human Resources:(Cost $123.00 M) Project Management, Monitoring and Evaluation:(Cost $12.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The Capacity Building for Results (CBR) Project's development objective is “to assist the government in improving the capacity and performance of select line ministries in carrying out their mandates and delivering services to the Afghan people.” The Project Development Objective (PDO) indicators are largely to be achieved by improving capacity and performance of line ministries through the provision of skilled civil servants to implement ministries’ reform programs. CBR is a ministry-wide program through which ministries can apply to develop a comprehensive reform 9/18/2018 Page 1 of 7 The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) plan, which is supported based upon progress on reform implementation and service delivery results. The program provides ministries with the opportunity to recruit high capacity staff into critical posts at salaries closer to the market rates. The aim is to increase on-budget service delivery and reduce reliance upon the so-called “second civil service”, i.e., national consultants conducting government functions. CBR supports on-going public administration reforms across government, training for selected civil servants, and limited technical assistance to support ministry reforms. Overall progress towards achievement of the development objective had been slow over the first 3-4 years of project implementation. This was largely due to aspects of the project design, capacity issues, and political-economy factors. Establishing a comprehensive program with robust entry criteria, an appropriate salary scale and the necessary management systems was a complex undertaking given the environment. As highlighted in the Mid-Term Review (MTR) of January-February 2014, the pace of project implementation therefore required significant acceleration to reach the Project objectives within the targeted time frame. Consequently, the Project was restructured on April 25, 2016 (approved by ARTF Management Committee on May 15, 2016) to increase the likelihood of achieving the PDO and to ensure efficient utilization of Project resources Restructuring introduced the following key changes to the Project: (a) Change in the Project Development Objective and revision of the Results Monitoring Framework to reflect the new scope of the Project; (b) Change in implementation arrangement to introduce more flexibility and simplify the process for accessing Project resources; (c) Change to the financing plan by reallocating resources across Project components and cancelling part of the original amount approved for the Project; and (d) Change in Project design by dropping Component 3: Civil Service Training, and streamlining the scope of activities supported under other components to reflect the proposed financing envelope. A second Project Restructuring was processed on June 20, 2017 to consolidate project implementation in the Independent Administrative Reform and Civil Service Commission (IARCSC), in line with Presidential Decree Number 532 dated May 3, 2017. A third and final Project Restructuring was approved on June 8, 2018, for purposes of processing a no-cost extension of the project’s closing date by six months, from June 30, 2018 to December 31, 2018 - to allow continuity of support until effectiveness of the successor Tackling Afghanistan’s Government HRM and Institutional Reforms (TAGHIR) Project (P166978), expected by January 1, 2019. Restructuring changes have contributed to considerable improvements in performance and an accelerated pace of implementation. Progress made since Restructuring changes were enacted includes improved access to CBR for line ministries with CBR Proposals (CBRPs) approved for eleven (11) of thirteen (13) priority ministries. One key output of CBRPs is the recruitment of high capacity staff into critical posts at salaries closer to the market rates. 1,298 of these positions have now been selected, with 929 of 1,085 contracted positions being currently active and a further 113 positions in pipeline, and a total of 1,500 positions expected to be contracted by end-December 2018. The Project further supports training for selected civil servants, and through the Afghan Civil Service Institute (ASCI), it has conducted two pilot trainings, one for Senior Management Groups (SMGs) and another for HR Directors. The Project also supports 14-month Mid-level Management Development Programs (MMD), the first batch of which has now concluded and a second batch launched in January 2018. This program is the equivalent of a two-year work experience that will allow graduates to qualify for accelerated promotion to mid-level manager level across the civil service. As a result of the above-captured implementation progress, made since the enactment of Restructuring changes, Project Ratings assessed by the Mid-Term Review were in September 2016 upgraded from "Moderately Unsatisfactory" to “Moderately Satisfactory” for both "Progress towards achievement of PDO" and "Overall Implementation Progress. These ratings continue to hold. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- High High Sector Strategies and Policies -- High High Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- High High 9/18/2018 Page 2 of 7 The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) Other -- -- -- Overall -- High High Results PDO Indicators by Objectives / Outcomes To improve the capacity and performance of priority line ministries and independent agencies IN00611102 ►Priority line ministries and independent agencies development budget execution improves to at least 60% (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 59.60 74.60 60.00 Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2018 Overall Government of Afghanistan development budget execution for 1396 was 67%, with priority CBR LMAs average achievement improving to 74.6%. Within this, all but 2 (MoCIT and MoMP) of the 13 priority CBR LMAs and 3 key implementation and oversight stakeholders (IARCSC, MoF, AOP) met or exceeded the 60% CBR target: Ministry of Communication and Information Technology (MoCIT) 59.49902 Ministry of Commerce and Industry (MoCI) 72.93006 Ministry of Mines and Petroleum (MoMP) 45.06947 Ministry of Economy (MoEc) 81.35015 Ministry of Public Health (MoPH) 85.81269 Ministry of Agriculture, Irrigation, and Livestock (MAIL) 89.8372 Ministry of Energy and Water (MEW) 63.93534 Comments: Ministry of Public Works (MoPW) 62.93921 Ministry of Rural Rehabilitation and Development (MRRD) 78.51417 Ministry of Labor, Social Affairs, Martyrs, and Disabled (MoLSAMD) 78.13105 Ministry of Urban Development (MUDA) 85.57251 Independent Directorate of Local Governance (IDLG) 76.10302 Afghanistan Independent Land Authority (ARAZI) 69.87666 Independent Administration Reform and Civil Service Commission (IARCSC) 88.81546 Administrative Office of the President (AOP) 60.48441 Ministry of Finance (MoF) 94.33736 9/18/2018 Page 3 of 7 The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) AVERAGE 74.57549 Final development budget execution for 1397 will become available following completion of the fiscal year (December 22, 2018). IN00611103 ►Proposed: Priority line ministries and independent agencies that have implemented at least 2 business process simplifications planned in their CBRP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 9.00 13.00 Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2018 Of the 13 priority CBR LMAs and 3 key implementation and oversight stakeholders, 9 LMAs (MAIL, MoPH, MUDA, MoLSAMD, MoCIT, MoEc, IARCSC, AOP, and MoF) – up from 7 – have met or exceeded the minimum target (2) for business process simplification, to date. In addition, the minimum target has been met – with direct IARCSC support – in 6 other LMAs including the Ministry of Interior and 5 CBR- supported LMAs (Ministry of Education, Ministry of Foreign Affairs, Ministry of Justice, Ministry of Rural Rehabilitation, and Ministry of Information and Culture). Key highlights in terms of business process simplification achieved during the current reporting period include: Processes at MoPH’s National Medicine and Health Products Regulatory Authority (NMHRA): - Process to open pharmaceutical wholesalers in the provinces - Process to transfer pharmacies in the provinces - Process to open new pharmacies in the provinces Comments: Processes at MUDA: - Process to license private companies - Process to handle urban development sketching - Process to manage housing distribution Processes at the Ministry of Information and Culture (MoIC) - Process to license print media - Process to license audio-visual media in the capital - Process to license audio-visual media in the provinces Processes at the Ministry of Interior (MoI) - Process to demilitarize MOI’s support departments - Process to manage the recruitment, operationalization and pay for 10,000 positions that are demilitarized IN00611104 ►Civil service positions recruited by CBR (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 680.00 929.00 1,500.00 Date 31-Dec-2011 31-Aug-2017 05-Sep-2018 31-Dec-2018 A total of 1,083 positions have been contracted by CBR to date, with 154 contracted civil servants since resigning or terminated i.e. total active positions contracted is 929. In addition to this number, a further Comments: 215 positions are selected but not yet contracted i.e. in various stages of approval, and 113 positions remain in pipeline. IN00611108 Civil service positions recruited by CBR filled by women (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 9/18/2018 Page 4 of 7 The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) Value 0.00 37.00 70.00 450.00 Date 31-Dec-2011 31-Aug-2017 05-Sep-2018 31-Dec-2018 Intermediate Results Indicators by Components Building Human Resources IN00611106 ►Civil servants trained through Mid-level Management Development Program (MMD) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 93.00 93.00 200.00 Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2018 93 civil servants completed the first batch of the MMD (with 7 dropping out). The second batch of MMD is Comments: currently in progress, with 100 civil servants (50% of which are women) enrolled. IN00611107 ►Grievance redress mechanism implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2018 IN00611100 ►Civil servants in priority ministries recruited for provinces (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 40.40 15.00 Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2018 375 (40.4%) of 929 active contracted CBR civil servant positions and 450 (39.3%) of 1,144 overall selected positions (including under process but excluding resigned/terminated) are at sub-national level. Additionally, all of the 113 CBR positions currently in pipeline are at sub-national level i.e. 563 (44.8%) of Comments: 1,257 total CBR positions (active, under process, and pipeline) are intended for provinces. This coincides with IARCSC’s carry-out of a comprehensive sub-national capacity assessment. Technical Assistance Facility in Support of Civil Service Reform IN00611105 ►Priority line ministries and independent agencies which have CBRPs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 13.00 Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2017 9/18/2018 Page 5 of 7 The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) Preparation/approval of CBRPs has been de-emphasized per the guidance of the President of Afghanistan for LMA administrative reforms to be based on functional reviews. Functional reviews of: Comments: IARCSC, ARAZI, MoIC, MoPH, and MoE are either completed or in various stages of finalization. IN00611101 ►Number of ministries which have completed pay and grading. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 23.00 23.00 22.00 Date 21-Jan-2012 31-Aug-2017 05-Sep-2018 31-Dec-2018 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P123845 TF-11447 Effective USD 100.00 100.00 0.00 77.01 22.99 77% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P123845 TF-11447 Effective 21-Jan-2012 21-Jan-2012 21-Jan-2012 31-Dec-2017 31-Dec-2018 Cumulative Disbursements 9/18/2018 Page 6 of 7 The World Bank Implementation Status & Results Report Afghanistan Capacity Building for Results Facility (CBR) (P123845) Restructuring History Level 1 Approved on 25-Apr-2016 ,Level 2 Approved on 20-Jun-2017 ,Level 2 Approved on 08-Jun-2018 Related Project(s) There are no related projects. 9/18/2018 Page 7 of 7