Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) Yemen Public Finance Modernization Project (P117363) MIDDLE EAST AND NORTH AFRICA | Yemen, Republic of | Public Sector Governance Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 6 | ARCHIVED on 01-Dec-2014 | ISR16468 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:20-Dec-2010 Effectiveness Date:19-Jan-2011 Planned Mid Term Review Date:01-Nov-2014 Actual Mid-Term Review Date:31-Dec-2014 Original Closing Date:31-Dec-2015 Revised Closing Date:31-Dec-2015 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project's development objective (PDO) is to improve the efficiency and transparency of management of public finance by providing decision- support systems and building capacity of public finance management institutions. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Enhancing Decision Making Mechanism of Budget Management:(Cost $1.00 M) Improving Financial Management Information Systems:(Cost $6.55 M) Enhancing capacity of public procurement institutions:(Cost $1.02 M) Strengthening Institutional Capacity of COCA:(Cost $0.60 M) Project Management:(Cost $1.26 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  --  Moderate 12/1/2014 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) Implementation Status and Key Decisions Fourteen (14) months before closure, the disbursement rate for the project is 32.6% (44.6% for the original project and 9.54% for the additional financing). For the initial project around 70% of the funds are already committed, which is much less the case for the AF where large chunks of the procurement plan are linked to activities which have not been moving enough for lack of high-level agreement (like the connection of AFMIS to CBY). The PFM Project has been making a good progress. Since the start of the project, the Accounting and Financial Management Information System (AFMIS) has been rolled out to 21 ministries and 10 central departments, thereby taking the cumulative coverage to 25 ministries and 10 central departments (35 government entities), which is 85 % of the total project target for the central government of 30 ministries and 11 central departments (41 government entities). Currently, the project is setting up the infrastructure (equipments and network connection) for 13 new entities (9 central departments, 4 governorates) and the project is expected to have AFMIS implemented in these entities by the end of this year. Similarly, Loans and Grants Management Information System (LGMIS) has been rolled out to 36 Project Management Units (PMUs), which is 100 % of the total project target of 36 PMUs. The Project has successfully rolled out commitment control and cash management systems in 8 ministries and has now initiated the procurement procedures for the development of commitment control function in AFMIS. The Project has made necessary adjustments in the AFMIS software for its roll out to Governorates as well as some screens to adopt AFMIS in the Central Bank of Yemen (CBY). The roll out to 4 Governorates is in progress, but the CBY is objecting to adopt AFMIS. The Project has signed a contract for upgrading the Data Center and establishing a Disaster Recovery Site. The data center location has been moved from the third floor to the basement in building (B) and the work on the data center is supposed to start mid October. The Ministry of Finance is implementing commitment control and cash management systems on pilot basis and want to use a comprehensive Treasury Management System. The project has organized a study visit for government officials to Morocco, which has implemented a Treasury Management System effectively. The project has cancelled the consultant's contract for the cash management because the consultant did not comply with the terms of reference and not responding to the project's requests. The project is planning to re-advertise the consultancy service for the cash management. The MOF and the project are currently working for the consultancy firm that was assigned to review the government accounting manual and draft an accounting manual that is in line with the international standards (IPSAS). The Project has contributed to reducing the divergence between the Capital Budget and Public Investment Plan. While at the start of the Project, with the Budget of 2009 acting as the baseline, the 37 % of the investment projects included in the Capital Budget were not part of the Public Investment Plan prepared by the Ministry of Planning. This proportion has come down to 17 % of the Capital Budget in the Budget of 2013. It is expected to go further down in the Budget of 2014. As part of ongoing discussion on enhancing budget transparency, the project has contracted a company to upgrade the official website of the Ministry of Finance. It has also prepared data for publishing budget information using the BOOST software. The 'Boost' will enable citizens and viewers to access and analyze the budget information up to the lowest layer of the chart of accounts. The ministry of finance and the project has also prepared a Citizen's Budget of 2013 & 2014, in which 2013 citizen budget was published in the MOF website and 2014 citizen budget was published by both the official website and the printed booklets. The government has been implementing MTEF since 2009 and want to move to a higher order MTBF. The Project has sent a government delegation on a study visit to Korea which has implemented both MTBF and MTPF using FMIS. The implementation of the recommendations for simplification of procedures in the Ministry of Finance, has started and the project provided the equipment and currently conducting the training for the MOF staff. The capacity building and institutional development plan for the Fiscal Institute has been prepared and approved by the Fiscal institute. The capacity building program in the area of public procurement is also doing well and about 934 government staff have been trained and the training for the second batch of about 1,200 government staff (technical committees) is in progress. The project has also sent a number of 12 HATC board member and technical staff to Turin, Italy, for training on the public procurement policies and also contracted a consulting firm (CEW) to develop a registration system for contracts and complaints management and the implementation is in progress. The task of providing training to government officials on public procurement bylaws has virtually stopped due to the change, and low capacity of the new technical staff in the High Tender Board. The Project is going to hire a highly experienced Public Procurement expert to coordinate the implementation of this training and it is expected that the training would get re-started soon. 12/1/2014 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) The Project is supporting the upgrading of National Accounts System to the System of National Accounts (SNA) 2008 classification and in this context organized 2 study visits for the key officials of Central Statistics Organizations (CSOs) to Tunisia and Morocco. The Project has organized several training for MOF, but lacks a comprehensive Capacity Building Program. The Project has been advised to prepare and monitor progress in that reference. In regards to COCA, the project has organized an intensive training course on the AFMIS for a number of 25 COCA employees as well as number of 49 employees were trained on the use of AFMIS system. Another 19 employees were trained on the procurement law No. 23 of 2007 and 16 employees were trained in the field of the new classification of budget. In addition to that 12 trainees were trained in the field of telecommunication taxes in the Republic of Lebanon. In other regards, the project has been providing MOF, HATC, HTB, COCA and CSO with the needed hardware, software, furniture, and capacity building. 1.The completion of the commitment control manual and the related module in AFMIS is the priority for the project in the upcoming phase as this is a key component for internal control of the budget process. 2. It has been decided that the possibility for the MEF to install in its own premises access to AFMIS open for agencies that are not connected to the system (momentarily or permanently) would be explored. This would help increase the coverage of AFMIS and meet the government’s commitment in the IMF program to cover 55 agencies by May 2015. Then the question of reconciliation with CBY bank information would be dealt with at a later stage. 3. It has been decided that as early as possible and if the local situation permits a diagnostic of the status of PFM reform should be undertaken to inform the post-national dialogue discussions. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Substantial Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Low Environment and Social  --  --  Low Stakeholders  --  --  Moderate 12/1/2014 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) Other  --  --  Moderate Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Efficiency of PFM measured by number of relevant 20 PEFA dimensions with scores of #B# and above. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 12.00 12.00 18.00 Date 30-Jun-2008 31-Dec-2013 18-Nov-2014 30-Jun-2015 Comments PHINDPDOTBL  Average of score of relevant 20 PEFA dimensions measuring the efficiency of PFM (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 2.30 2.80 2.80 3.30 Date 30-Jun-2008 31-Dec-2013 18-Nov-2014 30-Jun-2015 Comments PHINDPDOTBL  Percentage of relevant 20 PEFA dimensions with scores of 'B' and above (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 70.00 70.00 90.00 Date 30-Jun-2008 31-Dec-2013 18-Nov-2014 30-Jun-2015 Comments PHINDPDOTBL  Transparency in PFM measured by the score of PEFA Indicator PI-10 for Public Access to Key Fiscal Information. (Number, Custom) 12/1/2014 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 4.00 4.00 5.00 Date 30-Jun-2008 31-Dec-2013 18-Nov-2014 30-Jun-2015 Comments Overall Comments Intermediate Results Indicators PHINDIRITBL  COCA has developed and approved a mid and Long-term Strategic Plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 30-Jun-2014 Comments PHINDIRITBL  Value of Investment Projects in the Capital Budget (CB) that are not included in the Public Investment Plan (PIP) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 652000000.00 548000000.00 548000000.00 150000000.00 Date 01-Jan-2009 31-Dec-2013 31-Dec-2013 30-Jun-2015 Comments PHINDIRITBL  Percentage of Capital Budget (CB) that are not included in the Public Investment Plan (PIP) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 37.00 17.00 17.00 10.00 Date 01-Jan-2009 31-Dec-2013 31-Dec-2013 30-Jun-2015 Comments 12/1/2014 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) PHINDIRITBL  Number of 30 Central Government Ministries in which Commitment Control System is operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 30.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 30-Jun-2015 Comments PHINDIRITBL  Percentage of 30 Central Government Ministries in which Commitment Control System is Operational (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 13.00 100.00 Date 01-Jan-2011 30-Oct-2011 30-Oct-2011 30-Jun-2015 Comments PHINDIRITBL  No. of Governorates in which AFMIS is operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 18.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2013 Comments 12/1/2014 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) PHINDIRITBL  Number with Extended Modules (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 11.00 Date 01-Jan-2011 30-Oct-2011 30-Oct-2011 31-Dec-2013 Comments PHINDIRITBL  No. of PMUs in which LGMIS is operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 45.00 45.00 36.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 30-Jun-2014 Comments PHINDIRITBL  Average Lead time for disbursement application process (Days, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 10.00 10.00 8.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 30-Jun-2014 Comments PHINDIRITBL  Number of 30 Central Government Ministries in which Cash Management System is operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 30.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 30-Jun-2015 Comments 12/1/2014 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) PHINDIRITBL  Percentage of 30 Central Government Ministries in which Cash Management System is Operational (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 100.00 Date 01-Jan-2011 30-Oct-2011 30-Oct-2011 30-Jun-2015 Comments PHINDIRITBL  Process Simplification Plan of Ministry of Finance developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2012 Comments PHINDIRITBL  No. of Functions in Ministry of Finance in which process simplification implemented (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2012 Comments PHINDIRITBL  No. of Central Government Ministries in which AFMIS is operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 24.00 24.00 30.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2013 Comments 12/1/2014 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) PHINDIRITBL  No. with Extended Modules (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 01-Jan-2011 30-Oct-2011 30-Oct-2011 31-Dec-2013 Comments PHINDIRITBL  No. of Central Government Departments in which AFMIS is operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 11.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2013 Comments PHINDIRITBL  Number with Extended Modules (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 11.00 Date 01-Jan-2011 30-Oct-2011 30-Oct-2011 31-Dec-2013 Comments PHINDIRITBL  Number of procurement-related government staff trained on the Provisions of Law No. 23 of 2007 and its Executive Bylaws (3.1) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 948.00 948.00 1500.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2014 Comments 12/1/2014 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) PHINDIRITBL  Capacity of Fiscal Institute to impart procurement training assessed and their capacity building plan developed and delivered (3.2) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Jan-2011 07-Feb-2013 07-Feb-2013 31-Dec-2014 Comments PHINDIRITBL  Capacity Building Program of Fiscal Institute delivered to ‘X’ no. of Trainers (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0 0 -- 50 Date 01-Jan-2011 07-Feb-2013 07-Feb-2013 31-Dec-2014 Comments PHINDIRITBL  Strategy and Bylaws of HATC developed (3.3) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2011 07-Feb-2013 07-Feb-2013 31-Dec-2015 Comments PHINDIRITBL  Contract Registration and Public Grievance Management System operational(Y/N) (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Jan-2011 07-Feb-2013 07-Feb-2013 31-Dec-2015 Comments 12/1/2014 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) PHINDIRITBL  20 of relevant COCA staff are trained to become trainers on AFMIS modules and auditing in IT-based environment. (4.1) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 20.00 Date -- 31-Dec-2013 31-Dec-2013 31-Dec-2015 Comments PHINDIRITBL  300 of relevant COCA staff trained on the reforms in budget preparation & execution, improved accounting, and public procurement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.00 36.00 300.00 Date 01-Jan-2011 31-Dec-2013 31-Dec-2013 31-Dec-2015 Comments PHINDIRITBL  40 of relevant COCA staff trained on special revenue sectors, and consolidated final accounts. (4.2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 40.00 Date 01-Jan-2011 07-Feb-2013 07-Feb-2013 31-Dec-2015 Comments Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P117363 IDA-H6350 Effective XDR 7.64 7.64 0.00 3.41 4.23 45% 12/1/2014 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Yemen Public Finance Modernization Project (P117363) P117363 IDA-H8470 Effective XDR 3.40 3.40 0.00 0.32 3.08 10% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P117363 IDA-H6350 Effective 20-Dec-2010 04-Jan-2011 19-Jan-2011 31-Dec-2015 31-Dec-2015 P117363 IDA-H8470 Effective 17-May-2013 19-Jun-2013 13-Aug-2013 31-Dec-2015 31-Dec-2015 Cumulative Disbursements Restructuring History Level Approved on 22-Jan-2012 Related Project(s) P133637-Yemen Public Finance Modernization Project - Additional Financing 12/1/2014 Page 12 of 12 Public Disclosure Copy