The World Bank National Statistics and Data for Development (P162621) REPORT NO.: RES38267 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF NATIONAL STATISTICS AND DATA FOR DEVELOPMENT APPROVED ON JULY 6, 2017 TO MINISTÉRIO DA ECONOMIA E FINANÇAS POVERTY AND EQUITY AFRICA Regional Vice President: Makhtar Diop Country Director: Mark R. Lundell Regional Director: Asad Alam Practice Manager/Manager: Pierella Paci Task Team Leader: Javier Eduardo Baez Ramirez, Andre Herzog, Carlos Chadreque Penicela Da Maia The World Bank National Statistics and Data for Development (P162621) ABBREVIATIONS AND ACRONYMS ENE National School of Statistics (Escola Nacional de Estatística) INE National Institute of Statistics (Instituto Nacional de Estatística) MEF- Ministry of Economy and Finance – Department of Cooperation DC MEF- Ministry of Economy and Finance – Department of Economic Research DEEF MTC Ministry of Transport and Communication PAD Project Appraisal Document PDE Spatial Development Planning PIU Project Implementation Unit The World Bank National Statistics and Data for Development (P162621) BASIC DATA Product Information Project ID Financing Instrument P162621 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 06-Jul-2017 30-Dec-2022 Organizations Borrower Responsible Agency Instituto Nacional de Estatisticas,Ministerio dos Ministerio da Economia e Financas Transportes e Comunicacoes Project Development Objective (PDO) Original PDO The project development objective is to improve the production and dissemination of quality socioeconomic statistics. The project will also support the use of data in evidence-based policy making through improved capacity for spatial development planning and aid data management. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D2280 06-Jul-2017 17-Jul-2017 07-Aug-2017 30-Dec-2022 62.00 29.24 33.53 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank National Statistics and Data for Development (P162621) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The Mozambique National Statistics and Data for Development Project (P162621) was approved by the Board on July 6, 2017. The project became effective one month later on August 7, 2017. The project was restructured on April 9, 2019 to i) introduce the category "works" into the eligible expenditures under Component 1, ii) adjust few intermediate indicators in the Project Results Framework to better align with the activities in Component 3, and iii) transfer fiduciary responsibilities from the MEF-DC to the MTC PIU for Component 4. Since effectiveness, the project has disbursed US$29.24 million, primarily to finance the census in Component 2 and spatial planning technical assistance to national agencies under Component 3. The project is currently rated Moderately Satisfactory for both progress towards achievement of the development objectives and implementation progress. A full description of the project status and disbursement estimates for FY20 can be found in the most recent ISR dated June 10, 2019. 2. The purpose of the proposed Level 2 restructuring is to: (i) reallocate U$1.5 Million from the unallocated component to component 3 to finance new activities to strengthen the Government’s spatial planning capacity and increase transparence and openness of spatial data; ii) reallocate U$1.5 Million from the unallocated component to component 1 to create a new subcomponent to finance economic research activities at the Ministry of Economy and Finance (MEF-DEEF); iii) cancel the remaining U$3 Million from the unallocated component; (iv) cancel the remaining funds in the PPF refinancing category, equivalent to U$4.5 Million; and v) amend the Financing Agreement (FA) to override a provision from the last restructuring that transferred the full technical implementation of Component 4 away from the Ministry of Economy and Finance (MEF-DC) to the Ministry of Transport and Communication (MTC) instead of switching only the fiduciary responsibilities. 3. The project’s Component 3 – Spatial Development Planning is among the best performing in the whole portfolio of the World Bank in Mozambique. After 1 year of implementation, all major contracts have been signed, most activities are well advanced, including the capacity support on spatial planning to seven national agencies, the formulation of the national spatial development infrastructure strategy, the formulation of the new spatial data standards regulations, and the new institutional arrangements and business plan for the national spatial planning entity (PDE). The PDE currently offers high-level or aggregated multisector data and maps across different sectors, line ministries and agencies, as well as satellite images and basic spatial analytical tools acquired in the past. However, the platform lacks the new cutting-edge hyper-local spatial data and analytics that are needed today for the government, private sector and others to make informed policies and investments decisions. Secondly, the PDE platform was developed using proprietary GIS and data management systems that while allowing public visualization and very technical geospatial data manipulation, is already outdated, not users-friendly, and restricts The World Bank National Statistics and Data for Development (P162621) public access to manipulate and download spatial data in machine-readable formats. To address this shortcoming, the Minister of Economy and Finance submitted to the World Bank a letter on April 26, 2019 expressing the request from the implementing agency of Component 3 (Ministry of Transport and Communication) to reallocate uncommitted funds from the project to address these shortcomings. After discussions with MTC and the Bank, it was agreed to reallocate U$ 1.5 Million to support activities to strengthen PDE capacity on the new hyper-local data and analytic approaches and tools, and to support improving the PDE platform design and interface and guarantee full public access to spatial data, including in machine learning format. 4. A new subcomponent will be created under Component 1 (INE Institutional Strengthening and Capacity Building) to support economic research at the Department of Economic and Financial Studies Unit of the Ministry of Economy and Finance (MEF-DEEF) with the objective of strengthening evidence-based policymaking. The research unit provides strategic advice and technical inputs to the Ministry of Economy and Finance. It aims to support the development of cross-sectoral evidence-based strategic planning, policy making and evaluation in support of economic diversification in Mozambique in the context of an impending resource boom. The strategic research funded under this program is expected to inform government policy and serve as the basis of a dialogue across ministries to guide public investments, reforms and institutional strengthening. The project will invest in strengthening the technical cadre at the unit, as well as some operating costs. This is a strategic investment for the Bank to fund as it will increase its ability to influence policy dialogue using evidence. 5. An amendment to the Financing Agreement (FA) is needed to rectify an administrative oversight incurred in the last project restructuring in which fiduciary and technical implementation responsibilities for Component 4 (Aid Data Management for Enhanced Planning and Budgeting and Monitoring) were fully transferrred from MEF-DC to the MTC, as opposed to just the fiduciary responsibilities. 6. Project Financial Management and Procurement arrangements remain adequate, and there are no overdue Interim Financial Reports, nor audit reports. II. DESCRIPTION OF PROPOSED CHANGES 7. The reallocation of U$1.5 Million from the unallocated component to Component 3 (Spatial Development Planning) will be utilized to fund two main new activities. Firstly, it will help to strengthen the capacity of the PDE team to provide actionable, sustainable, and financially viable cutting-edge geospatial data and analysis services for a broad range of stakeholders. This will include: (i) capacity building on customizing the PDE platform to real needs of government, private sector, and civil society; (ii) producing and/or integrating hyper-local spatial data of, inter alia, poverty, access to infrastructure, demographics, and land use; (iii) integrating complex hyper-local data analytical models for government decision making; and, (iv) creating financially sustainable services for the private sector to identify market opportunities, prospect consumers, and analyze behavior patterns. Secondly, it will help to transform the PDE online platform into a full Open Geospatial Data and Geospatial Applications platform that The World Bank National Statistics and Data for Development (P162621) is open to the public. This includes: (i) providing software services or developing open source software to enable the easy publication and consumption of Mozambican geospatial datasets; (ii) redesigning the www.mozgis.gov.mz to become more user friendly and capable of automatically harvesting, displaying, and downloading machine-readable data in all key formats; and (iii) providing on-the job intensive training on management of open geospatial data and geospatial applications for the new public interface data platform. 8. The creation of the new subcomponent (1.5 – Support to the Economic Research Unit at MEF – U$1.5 Million equivalent) will support research activities aimed at strengthening evidence-based policymaking in the Ministry of Economy and Finance in the areas of: i) Macroeconomic analysis and statistics: ii) Population studies: iii) Sectoral policies; and, iv) Financial analysis. World Bank funding will complement technical and financial assistance being provided by Development Partners such as Norway, Switzerland and Finland as part of a concerted international effort to build technical capacity within the Ministry. Specifically, this subcomponent will cover the costs of hiring qualified local consultants, training, attendance at conferences, data collection for relatively small surveys, and acquisition of some IT equipment, such as computers, tablets, and printers. 9. Performance of subcomponent 1.5 will be measured by counting the number of research outputs funded by the project that are produced by the research unit. Four analytic studies are expected yearly, starting in 2020. By the project closing date, 12 analytical studies are expected. 10. The PIU at INE will take over the fiduciary responsibilities of subcomponent 1.5. New financial management and procurement support will be hired to support the operation of the PIU. 11. The Financing Agreement will be amended as follows: i) Section 3.01 of the Agreement will be revised to indicate that Part 4 of the Project will be carried out by MTC and MEF; ii) Part 1 (e) will be introduced under Schedule 1 to describe new project activities aimed at supporting MEF’s Economic Research Unit; iii) Section I.A.1 of Schedule 2 will be revised to indicate that MEF shall be responsible for the technical implementation of Part 4 of the Project; iv) Section I.A.4(a) of Schedule 2 will be revised to introduce the requirement for the Recipient and Project Implementing Entities to carry out the Project in accordance with: (a) a manual for Parts 1 and 2 of the Project (the “INE Implementation Manual”), (b) a manual for Part 3 of the Project (the “MTC Implementation Manual”) and (c) the MTC Implementation Manual and MEF's existing Manual - Administração Financeira e Procedimentos Contabilisticos (“MAF”) for Part 4 of the Project; v) the disbursement table under Section IV.A.2 of Schedule 2 will be revised to reflect reallocation of Project proceeds and; vi) Definition No. 16 of the Appendix on “Project Implementing Entities” will be revised to better reflect the respective responsibilities of MTC and MEF in the implementation of Parts 3 and 4 of the Project. The World Bank National Statistics and Data for Development (P162621) III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Institutional Arrangements ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank National Statistics and Data for Development (P162621) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) INE Institutional Strengthening INE Institutional Strengthening 4.60 Revised 6.10 and Capacity Building and Capacity Building Data Collection, Analysis and Data Collection, Analysis and 69.94 Revised 68.44 Dissemination Dissemination Mainstreaming Spatial Mainstreaming Spatial 10.00 Revised 11.50 Development Planning Development Planning Aid Data Management for Aid Data Management for Enhanced Planning and 2.00 No Change Enhanced Planning and 2.00 Budgeting and Monitoring Budgeting and Monitoring Unallocated Contingency 6.00 Revised Unallocated Contingency 0.00 TOTAL 92.54 88.04 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation BORROWER' S REQUEST IDA-D2280- Disburs XDR 45,300,000.00 5,571,000.00 16-Oct-2019 39,729,000.00 FOR 001 ing COUNTRY REASONS OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-D2280-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: Gds,NCS,CS,TR,OC Part 1 and 2 27,765,000.00 11,227,690.52 27,765,000.00 100.00 100.00 The World Bank National Statistics and Data for Development (P162621) iLap Category Sequence No: 2 Current Expenditure Category: Gds,NCS,CS,TR,OC Part 3 7,306,000.00 2,391,536.10 8,398,000.00 100.00 100.00 iLap Category Sequence No: 3 Current Expenditure Category: Gds,NCS,CS,TR,OC Part 4 1,461,000.00 33,962.03 1,461,000.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: UNALLOCATED 4,368,000.00 0.00 0.00 100 iLap Category Sequence No: 5 Current Expenditure Category: PPF REFINANCING 4,400,000.00 2,104,138.80 2,105,000.00 100 Total 45,300,000.00 15,757,327.45 39,729,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2018 14,372,287.15 14,372,287.15 2019 12,506,982.93 12,506,982.93 2020 14,000,000.00 14,000,000.00 2021 12,000,000.00 7,000,000.00 2022 7,500,000.00 6,127,602.00 2023 711,639.00 700,000.00 . Commented [TB1]: Please revise proposed disbursement estimate to be consistent with revised project amount