Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Public Sector Modernization Project (P101614) EUROPE AND CENTRAL ASIA | Kosovo | Governance Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 11 | ARCHIVED on 10-Aug-2016 | ISR24749 | Implementing Agencies: Ministry of Public Administration Key Dates Key Project Dates Bank Approval Date:04-Feb-2010 Effectiveness Date:17-Jun-2011 Planned Mid Term Review Date:30-Jun-2013 Actual Mid-Term Review Date:30-Oct-2013 Original Closing Date:30-Jun-2013 Revised Closing Date:31-Dec-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) (a) To strengthen the performance of key budget organizations in budget formulation, budget execution, and public procurement; (b) To establish the foundations for fiscally sustainable payroll management and effective human resource management in the core civil service; and (c) To create conditions for further automation of government work processes and for development of e-government applications. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Improving public financial management performance in selected budget organizations:(Cost $3.00 M) Component 2 - Improving payroll administration and laying the foundations for a professional civil service:(Cost $2.05 M) Component 3 - Increasing the security and efficiency of government information systems:(Cost $2.30 M) Component 4 - Project management, including project audit and evaluation:(Cost $0.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Satisfactory Overall Risk Rating  Substantial  Moderate 8/10/2016 Page 1 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Implementation Status and Key Decisions IMPLEMENTATION STATUS OVEVIEW Progress toward achievement of the PDO remains Moderately Satisfactory. Overall Implementation Progress remains Moderately Satisfactory. While substantial advances were made earlier in implementation of the new Job Catalogue in all central government agencies and municipalities along with introduction of the Human Resource Management Information Systems (HRMIS) and its performance appraisal module, the expected government decision completing transfer to the new system in 2016 has not been issued. Introduction of the e-procurement system is also behind the schedule, although an announcement of its piloting was made on January 5, 2016 by the Prime Minister Isa Mustafa. These delays prevent the team to increase either progress toward achievement of the Project Development Objective or Overall Implementation Progress ratings and therefore, they remain at "MS". Disbursement is at 84% of the total project funds (97% of the Grant and 73% of the Credit). Majority of project savings have been contracted to supplement funding for existing activities and to new activities. 8/10/2016 Page 2 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) 8/10/2016 Page 3 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  High  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Improved quality of budget formulation and execution in the budget organizations that would participate in the proposed project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PEFA assessment 2009 PEFA 2013 PEFA 2013 PEFA PI-1 indicators: score B; Value # PI-1: score: C (actual PI-01 = B PI-01 = B PEFA PI-12 expenditure deviated from PI-12 = C+ PI-12 = C+ (iii), (iv) score 8/10/2016 Page 4 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) budget by more than 15% PI-12(iii) = C PI-12(iii) = C B; in one of the last three PI-12 (iv) = D PI-12 (iv) = D At least 4/5 years); Disaggregated data Disaggregated data beneficiary # PI-12 (iii, iv): Multi-year provided separately provided separately organizations perspective in fiscal Quality indicators Quality indicators meet at least planning, expenditure partially met partially met 5/7 policy & budgeting # score: intermediate C PI-12 (iii) score: C; PI-12 outcome (iv) score: D; indicators # Only 3/7 quality indicators of budget submissions met by all 5 beneficiary BOs; no BO meets 3 quality indicators for budget execution Date 30-Jun-2009 30-Sep-2014 30-Sep-2014 30-Dec-2016 PHINDPDOTBL  Increased bidder participation in public procurement tenders and cost savings achieved through Quick Gains actions and e- procurement modules (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 8,270 bidders participated Partially met, mostly Partially met. in procurement tenders in due to recent 2008 (1.7 bidders per successes in the On January 5th, 2016 contract); Centralized the Government No electronic procurement Procurement. announced start of transactions; piloting phase of the e- QG study reports The e-procurement procurement system significant price disparities contract with six selected CAs. within procurement implementation is The actual piloting categories in the same under implementation. started on March 15, Bidder year (2008): Currently the PPRC 2016. participation # Civil works/ roads: up to and the vendor are increases by 90%; working on testing of On June 11, 2016 the 15%. # Maintenance: 39% system modules and Minister of Ministry of # Security: 41%; preparing for final Finance sent a letter to Price disparities # Buildings rental 64%; testing and piloting of the Bank with a request in QG # Food 95%; the system in six to extend the project procurement # Medicines 17-70%; selected contracting closing date. The main Value categories do # Office supplies 26%; authorities (Ministry Of justification for the not exceed # Fuel 9.3% in a year/ up Infrastructure, Ministry extension was the 10% in the to 31% in a month of Local Government Government decision to same year. Administration, Ministry start using of e- of Public procurement system by Cost savings of No electronic procurement Administration, Ministry central government CAs at least 5% for transactions of Finance, Ministry of on September 1, 2016 each category Environment and and by local government achieved. QG study reports Spatial Planning, and CAs on January 1, 2017, significant price disparities Kosovo Energy and that in order to within procurement Coorporation). The achieve these, there is a categories in the same contract completion need to introduce into year (2008): date is December 15, the system # Civil works/ roads: up to 2015 and therefore, changes/amendments of 90%; implementation is the Law on Public # Maintenance: 39% significantly behind Procurement adopted in # Security: 41%; project schedule. The February 2016. # Buildings rental 64%; PPRC and vendor Based on this letter and 8/10/2016 Page 5 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) # Food 95%; have requested non- project completion # Medicines 17-70%; cost extension of the e- report, the Bank on June # Office supplies 26%; procurement contract 30 has approved # Fuel 9.3% in a year/ up until April 30, 2016. extension of closing date to 31% in a month The Bank granted an of PSMP untill extension conditional of December 31, 2016. progress with implementation. The Central Procurement Agency The Central (CPA) confirmed that Procurement Agency during 2015 through (CPA) through centralized procurement centralized procedures conducted procurement procurement in 11 procedures conducted categories and achieved procurement in 11 to complete categories. The procurement contracts for Supply of procedures, sign Wood and Coal (for contracts and start heating) are signed implementation for and under categories: Supply of implementation; The Wood, Supply of Coal contracts for Supply (for heating), Supply of with Fuel, Heating oil, Heating oil, Supply with Air Tickets, Wooden Wooden Pellet Pellet and Office (contracts are signed in Stationery are waiting 2015) and Supply with for the Minister’s Fuel (contract is signed signature; The early in 2016). contracts for Supply of Tires, Sanitary/hygienic Signing of contracts for products, Cleaning categories: Supply with services and Food Air Tickets, Supply with articles are under Office Stationery, Supply procurement with Tires is delayed and procedures. signing is done only in June 2016. According to the information provided by While procurement the CPA for two procedures for centralized categories Supply with procurement contracts Sanitary/Hygienic that are under products, Cleaning implementation (Supply Services and Food of Wood and Coal), Articles are repeated/re- contract prices or unit tendered and are in prices are about 15- process. 25% lower comparing to market prices or previous contracts. Date 30-Sep-2009 15-Dec-2015 30-Jun-2016 30-Dec-2016 PHINDPDOTBL  Transparent and coherent pay and grading structure introduced in the core civil service supported by improved ICT systems that enable effective fiscal and management controls in payroll administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/10/2016 Page 6 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Value No grading system in the Partially met. Partially met. 100% of civil service; Wide pay permanent civil variations among civil The Methodology (Job On May 25, 2016 the servants service bodies; PEFA Catalogue) for Job Government of Kosovo graded; indicator PI-18 Classification and new has approved Job Equal bases (effectiveness of payroll Grading System are Classification (1500 Job pay for posts of controls) score: D+; No link developed and adopted titles and grading for equal grade between HRMIS, payroll, by the government. 14500 of 17000 civil and salary step and Treasury Based on this servants) and obliged all across civil methodology ~90% of government institutions service bodies; government institutions to start implementation Improved PEFA have completed job of new job classification PI-18 score (C+ classification and from September 1, or above) grading of their civil 2016. servants and sent their proposal for review to This decision also the Joint MPA-MoF requests the joint Commission. Review MoF/MPA commission and approval of to complete job proposals from the classification of Joint Commission are remaining 2500 of civil the last steps before servants by June 30 and the new Job propose value of the Classification and salary coefficients be grading system shall used for in the new job be adopted by the classification and new Government decision. payment structure. Link between HRMIS, As of June 30, the joint Payroll and Treasury commission has not are still not operational. received any proposal Although the link on job classification from between HRMIS and remaining institutions Payroll was established which means that in test environment - remaining jobs will technically (because it classified automatically was a part of the according to the job PSMP-subcomponent classification 2B), the link was not methodology. functional and HRMIS and Payroll system The value of the were not interoperated coefficient to be used for due to lack of new Job the new job Classification and classification and new grading structure at the payment structure are time of testing. not proposed yet. Recently, after Is likely that due to completion of ~90% of financial constraints the Job Classification and Government will start grading structure and implementation of job due to preparations for classification as system wide scheduled, but without implementation of the changes in payment new Job Classification structure, or simply and grading structure, keeping salaries at the the MPA decided to same level as before the test/pilot within the restructuring of job MPA the link between classification. HRMIS and Payroll in December 2015. Link between HRMIS, Therefore, some Payroll and Treasury are 8/10/2016 Page 7 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) updates expected at ready, but not used yet. the time of the next During December 2015 supervision. and first part of 2016, the MPA has tested the link between HRMIS and Payroll System and verified that the link is ready to be used starting September 1st when the data are compliant to new job classification and new grading and payment structure. Date 30-Sep-2009 15-Dec-2015 30-Jun-2016 30-Jun-2016 PHINDPDOTBL  Enhanced security and interoperability of government information systems (through centralized data storage and systems maintenance,and interoperability framework) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Fully met. Fully met. Data center is The National Data operational; The National Data Center was Reduced risk of Center was inaugurated inaugurated in data loss; in February 2014 and is February 2014 and is Improved No adequate, secure data fully operational. fully operational. access to data storage and backup facility control and for major ICT systems; In addition, the ICT Value In addition, the ICT physical No interoperability Security Management Security Management security; between major ICT Framework for Kosovo Framework for Kosovo New systems systems Government ICT Government ICT developed Systems is developed Systems is developed according to and adopted by the and adopted by the the MPA. MPA. interoperability framework. Date 30-Sep-2009 31-Mar-2014 31-Mar-2014 31-Dec-2014 Overall Comments Intermediate Results Indicators 8/10/2016 Page 8 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) PHINDIRITBL  Improved quality of budget and MTEF submissions of beneficiary budget organizations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Beneficiary BOs comply with 3 out 7 budget Partially met- Partially met- All 5 beneficiary Value submission quality criteria performance differs performance differs BOs meet the 7 (see comment for across beneficiaries. across beneficiaries. quality criteria explanation) Date 30-Sep-2009 30-Sep-2014 30-Sep-2014 30-Dec-2016 PHINDIRITBL  Improved budget execution rates by beneficiary budget organizations (BOs) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (a) Deviation from original approved budget expenditure by beneficiary a. Partially met. Health a. Partially met. Health BOs does not exceed 10 met, Education and met, Education and percent (in aggregate and Agriculture did not. Agriculture did not. by BO) for the year. All beneficiary (3/5=NO) (b) Variance in BOs meet the b. Partially met. b. Partially met. expenditure composition interim Agriculture and Health Agriculture and Health Value exceeds overall deviation outcome met. Education did not. met. Education did not. in primary expenditure by indicators for no more than 5 percentage budget c. Partially met. c. Partially met. points for the year. (5=NO) execution Education met, others Education met, others (c) Targets (expenditure did not. did not. and milestones) for at least 70 percent of projects in approved budgets are achieved. (5= NO) Date 30-Sep-2009 30-Sep-2014 30-Sep-2014 30-Dec-2016 PHINDIRITBL  Status of public procurement activities is regularly monitored through contract management information system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met.. Not yet achieved. Contract Management PPA and PPRC Contract Management Information System use electronic Information System is (CMIS) is part of the E- system to part or one of the E- procurement system regularly No central capacity exists procurement system modules. CMIS monitor public Value to monitor procurement modules. Successful developed and tested by procurement cycle completion of the e- PPRC and verified that it activities by all procurement contract is operational and contracting will ensure updates provides functionalities authorities in before the end of for PPRC, CPA and Kosovo PSMP. each Contracting Authority to manage and 8/10/2016 Page 9 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) monitor contracts from the date of signing till contract completion. Starting from July 1st, 2016, CPA, PPRC and CAs included in piloting phase are in able to use the CMIS module for contract management and monitoring. Date 30-Sep-2009 15-Dec-2015 30-Jun-2016 30-Dec-2016 PHINDIRITBL  HRMIS functions as a civil service registry and online data links between HRMIS-payroll-Treasury systems enable effective fiscal and management controls in payroll administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met. HRMIS is rolled out in all government institutions, but it still has limited functionalities/modules. Majority of personnel offices in the central and local government Partially met. institutions use the HRMIS for recruitment HRMIS is rolled out in and leave management. all government institutions, but use of According to data the system is with provided from MPA, limited starting from January 1, functionalities/modules. HRMIS does not include 2015 till June 30, 2016, Business processes HRMIS rolled grade or salary step data; about 900 recruitments related with recruitment out in all civil Value includes only personnel of Civil Servants were in Civil Service, service data for 3 civil service prepared and requests for approval organizations organizations announced through of new job positions HRMIS. and recruitment processes are going After adoption of the Job only through HRMIS. Classification by the Leave management Government (May 25, also done through the 2016), the MPA has HRMIS. started entering data for each government institution in order to be ready to start with new job classification by September 1st, 2016. The new Civil Service regulations were adopted in early 2016 resulting in updates in 8/10/2016 Page 10 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) HRMIS and addition of three modules: HR planning module, module for recruitment of high level of civil servants and module for online application for government job positions in civil service (all work was supported by the PSMP). Date 30-Sep-2009 15-Dec-2015 30-Jun-2016 30-Dec-2016 PHINDIRITBL  Performance appraisal system is introduced and used as a basis for progression along salary steps (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met. The new guideline for Partially met. implementation of the new performance The new guideline for appraisal system is implementation of the developed and adopted new performance by the Minister of MPA. appraisal system is developed and adopted The HR managers are by the Minister of MPA. Managers trained for trained (no.); No regular performance implementation of the About 200 HR managers Performance appraisal system or new performance and HR officers are Value appraisal mechanism for salary appraisal system. trained to use the new launched in progression performance appraisal pilot From January 2015 all system, which is a organizations civil service separate module of the organizations have HRMIS. Civil service started implementation organizations are still of the new not using this system as performance appraisal a mechanism for salary system, BUT without management. using it for salary increases for the years 2015 and 2016. Date 30-Sep-2009 15-Dec-2015 30-Jun-2016 30-Dec-2016 8/10/2016 Page 11 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) PHINDIRITBL  Ministry responsible for public administration has necessary capacity to exercise key human resource management functions for the core civil service (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Met. The Department for Civil Service Administration (DCSA) within MPA increased its capacities through trainings. DCSA personnel is trained Partially met. jointly with HR managers in suing the The Department for HRMIS modules and Civil Service HRM functions ( usage Administration (DCSA) of the new methodology within MPA increased for job classification, its capacities through performance appraisal Department trainings. The DCSA system, HR planning, responsible for regularly is training etc.) and have become civil service MPA Department of Civil personnel officers from trainer for HRMIS and management Value Service Administration has all government HR functions. has staff 25 staff (14 in payroll unit) institutions to exercise trained in all some of key human The DCSA through their core HR resource management trainers regularly trains functions functions for the civil and provides support for service, e.g., usage of personnel officers from the new Job all government Catalogue, institutions in the HRMIS Performance appraisal, and HR functions. HR planning, etc. Separate training sessions were conducted for about 200 HR managers and HR officers in: HRMIS, Job Catalogue and Performance Appraisal Systems. Date 30-Sep-2009 15-Dec-2015 30-Jun-2016 30-Dec-2016 PHINDIRITBL  Centralized data management and systems maintenance leads to efficiency gains (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Fully met. Fully met. Approx. EUR 0.15 million Cost savings The Data Center (DC) From the time that Data annual spending on from ICT is fully operational and Center(DC) became duplicated maintenance, systems provides higher than operational in February Value plus some EUR 0.4 million maintenance of expected savings. 2014, the number of in duplicated equipment 30% (compared institutions that have and development of stand- to stand-alone From the time that DC requested and started to alone systems systems) became operational in use DC infrastructure for February 2014, most of their IT systems has 8/10/2016 Page 12 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) government institutions rapidly increased. have started to use DC infrastructure for their Almost 70% of the DC IT systems (Software capacity is utilized to applications) that they provide storage, data previously hosted security, access, outside, including maintenance and maintenance services. administration services and also provides higher The largest savings to- than expected cost date are coming from savings. the hardware, because now some of According to information institutions do not provided by the Ministry spending anymore on of Public Administration, core hardware. for over last two years, the example, the Ministry DC has produced 2.5 of Health (MoH) is million Euro in savings. introducing the Health This calculation is based Information System on the number of (HIS) and have agreed government institutions with MPA to host HIS that are using the Data using DC Center for their systems infrastructure, servers, and the budget that storage, core would be spent on networking equipment, buying of new maintenance services, equipment, hosting, etc. Therefore, the administration/maintena MoH avoided nce, for electricity, investments in cooling, etc. for these centralized equipment institutions (assuming and infrastructure (new they would maintain server room, core their IT systems out the networking, storage, data center). This etc.) for HIS. calculation also includes cost of establishment fragmented Data Centers (server rooms) that would have been created in absence of MPA-Data Center. (E.g. Kosovo Customs avoided the need to establish their own DC for backup purposes; Ministry of Health avoided the need to establish their own DC for Health Management Information System which is being implemented, etc.). Date 30-Sep-2009 15-Dec-2015 15-Dec-2015 30-Jun-2016 Overall Comments 8/10/2016 Page 13 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P101614 IDA-46920 Effective XDR 2.90 2.90 0.00 2.45 0.45 84% P101614 IDA-H5450 Effective XDR 2.30 2.30 0.00 2.23 0.07 97% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P101614 IDA-46920 Effective 04-Feb-2010 10-Mar-2010 17-Jun-2011 30-Jun-2013 31-Dec-2016 P101614 IDA-H5450 Effective 04-Feb-2010 10-Mar-2010 17-Jun-2011 30-Jun-2013 31-Dec-2016 Cumulative Disbursements Restructuring History Level Approved on 23-Jul-2012 ,Level 2 Approved on 03-Sep-2014 ,Level 2 Approved on 02-Dec-2014 ,Level 2 Approved on 28-Jun-2016 8/10/2016 Page 14 of 15 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Related Project(s) There are no related projects. 8/10/2016 Page 15 of 15 Public Disclosure Copy