Document of The World Bank FOR OFFICIAL USE ONLY Report No: 58319-VN PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 9.2 MILLION (US$14.0 MILLION EQUIVALENT) TO THE SOCIALIST REPUBLIC OF VIETNAM AND ON A PROPOSED PROJECT RESTRUCTURING FOR THE PUBLIC FINANCIAL MANAGEMENT REFORM PROJECT January 4, 2011 Poverty Reduction and Economic Management Unit East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective: January 4, 2011) Currency Unit = Vietnamese Dong (VND) VND 1 = US$0.00005128 US$1 = VND 19,499 FISCAL YEAR January 1 ­ December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing BA Budget Allocation BPS Budget Preparation System CM Cash Management COA Chart of Accounts CQS Selection Based on the Consultants' Qualifications DMFAS Debt Management Financial and Analysis System DPI Department of Planning and Investment FMIS Financial Management Information System GBP Great Britain Pound GFMIS Government Financial Management Information System GOV Government of Vietnam IA Implementing Agency MOF Ministry of Finance MPI Ministry of Planning and Investment MTDP Medium Term Debt Program MTEF Medium Term Expenditure Framework MTFF Medium Term Fiscal Framework PFMRP Public Financial Management Reform Project PMU Project Management Unit QCBS Quality- and Cost-Based Selection SDR Special Drawing Right SU Spending Unit TA Technical Assistance TABMIS Treasury and Budget Management Information System TSA Treasury Single Account UCOA Unified Chart of Accounts VND Vietnamese Dong Vice President: James W. Adams Country Director: Victoria Kwakwa Sector Director: Vikram Nehru Sector Manager: Linda Van Gelder Task Team Leader: Quyen Hoang Vu VIETNAM PUBLIC FINANCIAL MANAGEMENT REFORM PROJECT ­ ADDITIONAL FINANCING AND RESTRUCTURING CONTENTS Project Paper Data Sheet Project Paper I. Introduction ......................................................................................................................................... 1 II. Background and Rationale for Additional Financing and Restructuring ............................................ 1 III. Proposed Changes ............................................................................................................................... 5 IV. Appraisal Summary ............................................................................................................................. 8 Annexes Annex 1. Revised Results Framework and Monitoring Indicators ......................................................... 11 Annex 2. Operational Risk Assessment Framework .............................................................................. 18 Annex 3. Detailed Description of Modified or New Project Activities .................................................. 21 Annex 4. Revised Estimate of Project Costs and Reallocation of Funds ............................................... 34 4(a). Detailed Breakdown of Additional Financing and Total Undisbursement .............................. 34 4(b). Extension Phase Estimated Project Costs by Funding Source ................................................ 36 4(c). Reallocation of Funds and Changed Percentage of Financing ................................................ 38 Annex 5. Updated Implementation and Procurement Plans ................................................................... 39 MAP IBRD 33511 VIETNAM PUBLIC FINANCIAL MANAGEMENT REFORM PROJECT ­ ADDITIONAL FINANCING AND RESTRUCTURING Project Paper Data Sheet Basic Information - Additional Financing (AF) Country Director: Victoria Kwakwa Sectors: General public administration sector Sector Director: Vikram Nehru (50%), Sub-national government administration Team Leader: Quyen Hoang Vu (50%) Project ID: P120613 Themes: Public expenditure, financial management Expected Effectiveness Date: May 2011 and procurement (P), Debt management and fiscal Lending Instrument: Investment Lending (IL) sustainability (P) Additional Financing Type: Environmental category: Not required (C) Expected Closing Date: February 28, 2013 Joint IFC: Joint Level: Basic Information - Original Project Project ID: P075399 Environmental category: Not required (C) Project Name: Public Financial Management Expected Closing Date: February 28, 2011 Reform Project Lending Instrument: Specific Investment Loan Joint IFC: (SIL) Joint Level: AF Project Financing Data [ ] Loan [ x ] Credit [ ] Grant [ ] Guarantee [ ] Other: Proposed terms: IDA ­ Standard Credit Grace period (years): 10 Years to maturity: 35 Commitment fee: 0.5% Service charge: 0.75% AF Financing Plan (US$m) Source Total Amount (US $m) Total Project Cost: 17.0 Cofinancing: 0.0 Borrower: 3.0 Total Bank Financing: 14.0 IBRD 0.0 IDA 14.0 New 14.0 Recommitted 0.0 Client Information Recipient: Socialist Republic of Vietnam Responsible Agency: Ministry of Finance of Vietnam Contact Person: Mme. Dang Thi Thuy (Director of Project Management Unit) Telephone No.: (84 4) 3971 9664 Fax No.: (84 4) 3971 9273 Email: DangThiThuy@mof.gov.vn AF Estimated Disbursements (Bank FY/US$m) FY 2011 2012 2013 Annual 4.1 6.8 3.1 Cumulative 10.9 14.0 Project Development Objective and Description Original project development objective: The objective of the Project is to strengthen the Recipient's capacity to plan, execute and report on its budget and to improve the transparency and accountability of the budgetary systems and processes. Revised project development objective: N/A Project description: The project aims to strengthen and integrate core treasury and budget management information systems; to strengthen the links between budget management and the Government's developmental goals within a medium-term expenditure framework; and to improve the management of public debt and other fiscal risks. Safeguard and Exception to Policies Safeguard policies triggered: [ ]Yes [ x ] No Environmental Assessment (OP/BP 4.01) [ ]Yes [ x ] No Natural Habitats (OP/BP 4.04) [ ]Yes [ x ] No Forests (OP/BP 4.36) [ ]Yes [ x ] No Pest Management (OP 4.09) [ ]Yes [ x ] No Physical Cultural Resources (OP/BP 4.11) [ ]Yes [ x ] No Indigenous Peoples (OP/BP 4.10) [ ]Yes [ x ] No Involuntary Resettlement (OP/BP 4.12) [ ]Yes [ x ] No Safety of Dams (OP/BP 4.37) [ ]Yes [ x ] No Projects on International Waters (OP/BP 7.50) [ ]Yes [ x ] No Projects in Disputed Areas (OP/BP 7.60) [ ]Yes [ x ] No Does the project require any exceptions from Bank policies? [ ]Yes [ x ] No Have these been approved by Bank management? [ ]Yes [ ] No Conditions and Legal Covenants: Financing Agreement Description of Date Due Reference Condition/Covenant Paragraphs 1 and 2, The Recipient shall maintain, throughout the Already in place/ Section I.A, Schedule 2 period of project implementation, the Steering ongoing. Committee to: (i) provide overall guidance and direction in the implementation of the project, and (ii) ensure the project activities are coordinated with other national initiatives for public administration reform. Paragraph 3, Section The Recipient shall maintain, throughout the Already in place/ I.A, Schedule 2 period of project implementation, a Project ongoing. Management Unit (PMU) led by experienced manager of MOF, with qualified staff in adequate numbers, all with qualifications and experience and terms of reference satisfactory to the World Bank, for: (i) overall project management and administration; (ii) coordination among relevant departments within the MOF, and with other relevant agencies and line ministries; and (iii) monitoring and evaluation of Project activities. Paragraphs 4(a), 4(b) The Recipient shall maintain: (i) a Financial Already in place/ and 4(c), Section I.A, Management Manual; (ii) a FM system; and (iii) ongoing. Schedule 2 training to the PMU staff in financial management and disbursement, in a manner satisfactory to the Bank. Paragraphs 5(a) and The Recipient shall: (a) by no later than May 31 Already in place/ 5(b), Section I.A, and November 30 of each year, furnish to the ongoing. Schedule 2 Bank for its review and comments, a semi-annual work program; and (b) implement said work program in a manner satisfactory to the Bank, taking into consideration the Bank's view thereon. Paragraphs 6(a) and The Recipient shall: (a) by no later than Already in place/ 6(b), Section I.A, November 30 of each year, furnish to the Bank for ongoing. Schedule 2 its prior concurrence, an annual plan for the maintenance and, if necessary, upgrade of the hardware and software, and the connectivity of said system, said annual plan to include the estimated costs therefor; and (b) carry out such plan in a manner satisfactory to the Bank. I. Introduction 1. This Project Paper seeks the approval of the Executive Directors to: (a) provide an additional credit in an amount of SDR 9.2 million (US$14.0 million equivalent) to the Socialist Republic of Vietnam for the Public Financial Management Reform Project (Project Identification No. P075399, Credit Number 3767-VN); and (b) introduce changes in the project and the accompanying amendments to the project's legal documents. 2. The objectives of this Additional Financing (AF) are to: (i) ensure successful completion of original project activities that face cost overrun; and (ii) scale-up the implementation of selected activities and add limited number of new activities in order to improve the efficiency of the project and sustain its development effectiveness. 3. A second-order restructuring is also being sought as part of the Additional Financing, to adjust the scope of several sub-components, and to reallocate funds to other categories. No changes to the project development objective, overall design, and implementation modalities are sought. 4. As part of the proposed restructuring, a second two-year extension of closing date of the original credit from February 28, 2011 to February 28, 2013 would be approved, increasing the project life to 9 years. The extended closing date of original credit will coincide with the closing date of additional credit. (Extension of the original credit will be carried out in two phases starting with six months extension till August 30, 2011 and followed by 18 months extension later. The proposed two phased approach will prevent interruption of ongoing activities while the new Financing Agreement is signed and declared effective.) II. Background and Rationale for Additional Financing and Restructuring A. Consistency with Country Partnership Strategy (CPS) 5. The project, with additional financing, restructuring and extension, remains fully consistent with the 2007-2011 Country Partnership Strategy (CPS), particularly in terms of providing support for strengthening the institutions necessary to facilitate a more complex and diverse economy in Vietnam. Specifically, it supports the fourth goal of promoting good governance. The focus is on the sub-goal of improving public financial management systems and practices, information and transparency. Indirect but important contributions will be made to the achievement of other governance sub-goals including public administration reform, development of e-government and combating of corruption. B. Project Background 6. The project credit in the amount of SDR39.90 million, equivalent at that time to US$54.33 million, was approved by the Board of Executive Directors on May 22, 2003, and became effective on September 4, 2003. Standard IDA credit terms were applicable, with a 10 years grace period and 40 years maturity. Total project financing was US$71.45 million, including a US$9.99 grant from DFID and the counterpart contribution of US$7.14 million. The original project's closing date was February 28, 2009, which was later extended to February 28, 2011. 7. The objective of the project is to strengthen budget planning, execution, reporting and accountability. Three key performance indicators are: (i) accuracy, timeliness, relevance, transparency and compliance with international best practices in budget execution and reporting at each level of government; (ii) better planning of the State Budget and the Public Investment Program to achieve the growth and poverty reduction goals set out in the Comprehensive Poverty Reduction and Growth Strategy 1 (CPRGS); and (iii) greater fiscal sustainability through improved and integrated recording of external and domestic public and publicly guaranteed debt, improved capacity to monitor SOE liabilities, and improved ability to assess associated fiscal risks. 8. The project is organized into four components, namely: (1) Strengthening treasury and budget management; (2) Strengthening state budget and investment planning; (3) Strengthening management of public debt and monitoring of SOE fiscal risks; and (4) Project management support. The project provides an integrated package of assistance to strengthen budget planning, execution, reporting and accountability of the country's public financial management system. The project includes major investments to upgrade the core systems of public financial management, and Technical Assistance (TA) to support institutional reform, policy formulation, and capacity building. 9. As part of the project, an integrated Treasury and Budget Management Information System (TABMIS) is being implemented in treasury offices and financial agencies in three out of four levels of the government ­ central, provincial and district. Upon completion, TAMBIS will enable accurate, timely and consolidated budget reporting and cash accounting. A platform is also being introduced for a number of essential PFM reforms such as revamping and integrating account code structure, and introducing elements of accrual accounting and modern cash management. The project is providing support for modern budget planning approaches in core government agencies and provinces. It is also providing support to strengthen public debt management in core government agencies, including an integrated framework for recording of domestic and external debt and monitoring of fiscal risks. C. Status of Implementation and Progress in Meeting Project Objectives 10. The project is making progress to meet its development objectives, though several outstanding challenges remain, as discussed below. 11. Component 1 (Strengthening treasury and budget management): The following four out of five critical stages of TABMIS have been implemented: (i) analysis and re-design of the policies, business processes and the accounting regime for TABMIS, (ii) analysis, design, development and testing of the software, (iii) setting up the hardware system, and (iv) piloting and roll-out the system. To date, TABMIS has been implemented at the Ministry of Finance (MOF) and rolled out to treasuries and financial agencies in 35 out of 63 provinces. Fifteen largest spending line-ministries are getting ready to use TABMIS to conduct budget allocations for 2011. 12. The implementation of the TABMIS system is laying a strong foundation for realizing the first performance indicator when nationwide roll-out gets completed in 2011. A number of key associated reforms (unified Chart of Accounts, commitment accounting and other elements of accruals accounting, enabled Treasury Single Account and improved cash management) are underway to help Vietnam adopt international best practices. 13. There are certain issues regarding the contractual agreements related to TABMIS. MOF is currently negotiating with key contractors on possible improvements in the contracts (including warranty/post-warranty clauses, additional hardware needs, and user licensing terms), for satisfactory system performance and operational acceptance, and sustainability of developed solutions. 14. The completion of TABMIS will require additional budget and time. Moreover, several existing functions have not been fully activated, due to lack of legal and technical requirements including data integration across external systems that are under development. 2 15. Component 2 (Strengthening state budget and investment planning): The medium-term fiscal framework (MTFF) and the medium-term expenditure framework (MTEF) have been successfully piloted in 6 ministries (Ministries of Finance, Planning and Investment, Education and Training, Health, Transport, and Agriculture and Rural Development) and 4 provinces (Hanoi, Ha Tay, Vinh Long, and Binh Duong). 16. However, a budget preparation information system (BPS), which among other things can support the preparation of MTFF and MTEF, has not been implemented yet. The development of BPS has been consciously delayed to take account of some of the critical changes that are expected in the new budget law. The new budget law is expected to be submitted to the government after the new administration assumes office in mid 2011. 17. Component 3 (Strengthening the management of public debt and other fiscal risks): This component is aimed at strengthening public debt management and institutions by supporting the promulgation of the Public Debt Law and establishment of the specialized Debt Management Department. Currently, the project is focused on strengthening the capacity of the institutions that are responsible for undertaking public debt and risk management. This is being done by providing technical assistance to develop a long-term debt strategy, medium-term debt management program, and risk management regulations. These measures are expected to contribute to greater fiscal sustainability. 18. However, the implementation of the domestic debt management information system (DMFAS) and the integration of the debt databases had initially experienced procurement delays. The problem has been resolved and DMFAS implementation finally started in December 2010. Initial attempts to strengthen the monitoring the fiscal risks from SOEs were only partially successful due to lack of necessary legal framework, poor data availability and limited assessment capacity. 19. Component 4 (Project implementation support): This component, including fiduciary management, remains satisfactory. Institutional and implementation arrangements remain effective (including the well functioning Inter-Ministerial Steering Committee, Component Technical Units, and the Project Management Unit organized into specialized component implementation teams). Commitment of senior officials towards this project and the support of consultants have improved during the period of project implementation. However, there is still a need to bring in additional advisory support in terms of technical functions, as well as for project and contract management. 20. The ratings and sub-ratings for the past three ISRs for the project are shown in Table 1 below. Table 1: ISR Ratings in the last 12 months ISR #12 ISR #13 ISR #14 Rating Category (Dec 2009) (Sep 2010) (Jan 2011) Progress Towards PDO S S S Overall Implementation Progress MS MS MS Financial Management S S S Procurement S MS MS Counterpart Funding S S S Overall Safeguard Compliance n/a n/a n/a ISR Rating - HS (Highly Satisfactory), S (Satisfactory), MS (Moderately Satisfactory), MU (Moderately Unsatisfactory), U (Unsatisfactory), and HU (Highly Unsatisfactory) 21. Overall progress is assessed as Moderately Satisfactory (MS) due to delayed implementation of TABMIS and DMFAS. MOF has adopted concrete plans to ensure successful completion in 2011 of (i) TABMIS implementation (improve TABMIS performance and functionalities, address project 3 management issues, complete nationwide rollout, and fully take-over the system administration role), and (ii) DMFAS implementation. Procurement management was recently downgraded to MS due to internal procurement approval procedure currently being used in MOF which appears to be cumbersome. MOF has committed to resolve this issue by making necessary procedure streamlining and developing detailed coordination mechanism among relevant units. 22. Disbursement and commitments. As of November 30, 2010, disbursement from IDA and DFID was 54 percent and 86 percent, respectively, hence the overall disbursement for the project is 59 percent. It is expected that by the end of the current project period (i.e., February 28, 2011), 62 percent of the IDA Credit and 90 percent of DFID Grant will be disbursed. The request for additional financing takes into account the undisbursed amounts (US$22.59 million IDA credit, US$1.08 million DFID grant, and US$2.82 million GOV counterpart fund) including gains from exchange rate fluctuations between SDR and USD, and GBP and USD of about US$6.35 million, and US$1.32 million respectively. 23. Compliance with Covenants. This project is in compliance with all dated legal covenants. There are no overdue or qualified audit reports. Financial Management has been rated Satisfactory for the project, Procurement has been recently rated Moderately Satisfactory, while safeguards compliance is not required for this project. D. Rationale for Additional Financing and Restructuring 24. Additional Financing (AF) is required in order to ensure successful completion of original project activities that face cost overrun and to enhance the efficiency and sustainability of the project through scaled-up and new activities. (i) Nearly 65 percent of AF will go towards completion of the original project activities for which the cost has increased during the past seven years of project implementation. AF is needed to complete TABMIS nationwide implementation, ensure system stability and sustainability for the full scope of users and functions required. (ii) The reminder 35 percent of AF will be used to finance implementation of additional or expanded activities. For component 1, AF is required to increase system efficiency by scaling up implementation of selected module, and prepare for staged expansions towards the longer term vision of a Government Financial Management Information System (GFMIS), with TABMIS at its core1. For component 2, AF is required to timely prepare for the adoption of MTFF and MTEF, which were successful piloted during the last four year, and integration of these frameworks to the annual budget process. For component 3, AF is needed to further enhance public debt and risk management instruments and capacity, and to strengthen the monitoring of fiscal risks arising from SOEs. 25. A level-2 Restructuring is required in response to changing circumstances to align the modified project activities with the legal agreement, reallocate the budget to other activities, and extend the project for two years. It does not involve any changes to project development objectives or associated outcome targets. The project had experienced delays due to time consuming procurement process and slow implementation involving large and complex IT systems and was extended. The limited capacity of MOF 1 On August 27, 2010, GOV Prime Minister issued Decision No. 1605 adopting the national IT program for public sector during 2011­2015. The program aims to strengthen information infrastructure, proactively apply IT in public sector to enhance productivity and reduce operation costs, and lay the foundation for e-government which will provide updated information and online services to enterprises and citizens. The program mandates MOF to implement TABMIS nationwide and prepare for a government integrated financial information system. 4 also affected the pace of implementation of the project. Some of these issues have since been addressed and the project implementation has gathered pace in recent years. III. Proposed Changes 26. Project development objectives remain unchanged. Three key performance indicators of the project also remain valid. However, the output indicators are updated to fully reflect the expectations from the key project activities (see Annex 1). Supplemental Letter No. 2 of the Development Credit Agreement (DCA) will also have to be amended to reflect the changed indicators. A. Additional Financing 27. The AF will focus on completion of original project activities and enhancement of project impact and efficiency. 28. For component 1, the cost of meeting some of the original project activities has increased during the past seven years, resulting in a cost overrun. The numbers of users, volume of usage, and correspondingly, system size, and support services have been found to be significantly higher than what was assumed in 2003 when the project was designed. To complete TABMIS nationwide implementation, ensure system stability and sustainability for all the users and functions, additional hardware, software licenses, and associated implementation services are required as well as the need to conduct additional user and technical training, and technical assistance in project management and implementation. 29. In the meantime, there is a need to implement additional activities, in order to timely improve the efficiency of operations and sustain project's impact. These include: (i) The AF will support expansion of Budget Allocation (BA) Module to major supervising agencies (about 300) at central budget levels. This is to increase system efficiency and spread out the current workload. Ultimately this aims to sustain the project's accomplishments and impact, and ensure that system capabilities will be appreciated by wider system users from MOF to the government, including lines ministries and provinces, as a whole. The additional funds will be used to optimize IT infrastructure for BA rollout to line ministries and agencies, provide training to users, and for purchase of additional hardware, software licenses and implementation services. (ii) The AF will support the designing of a Web Portal enabling e-transaction by all SUs (about 100,000) and partners of government, also serving as a platform for additional future PFM applications. This is to prepare for a modified approach to linking SUs with TABMIS via a portal, which will replace the concept in the original project of providing SUs direct access. The additional funds will be used to study a suitable portal model, to develop an implementation roadmap, and to prepare technical requirements and bidding document for the portal. (iii) The AF will support further public finance reform beyond the current project. It will develop a model and a roadmap towards GOV's longer term vision of a Government Financial Management Information System (GFMIS), with TABMIS at its core, and of e-government. This includes (i) establishment and operation of State Accountant General function, towards producing government-wide financial statements including public assets financial information; and (ii) preparation of a model and roadmap for future development towards GFMIS including Asset Management, and possibly other key elements of the GFMIS such as Human Resource and Payroll, Public Investment, and Inventory Management. The available funds will be used to finance a series of technical assistance on these topics. 5 30. For component 2, the AF will help in institutionalizing the MTEF and MTFF in the budget process. MTFF and MTEF have been successfully piloted during the last four years, but additional work is needed toward their adoption into relevant law and mainstreaming into the budget process. The additional funds will be used to develop guidelines for implementation of these frameworks. 31. For component 3, the AF will facilitate adoption and operationalization of sound practices of public debt and risk management, strengthen debt management system, and improve monitoring of fiscal risks arising from SOEs. Initial activities have been conducted under the project in the last years, but additional work is needed to sustain project accomplishments and impacts. The additional funds will be used to enhance public debt and risk management instruments and capacity, and develop a strategy to implement debt and risk management information systems. B. Restructuring 32. The proposed restructuring does not involve any changes to project development objectives or to the associated outcome targets. The proposed restructuring involves changes to intermediate outputs and associated inputs: (i) adjusting the scope and title of a number of sub-components in response to changing circumstances; (ii) allocating additional financing and reallocating funds of original credit to other categories; and (iii) extending the project for two more years. At GOV request, a retroactive financing up to SDR 920,000 (US$1.4 million equivalent) is allowed on the Additional Credit. 33. Adjusting the scope and title of several sub-components. The scope of sub-components and associated costs have been revised, merged, and added to align the modified project activities with the legal provisions. Detailed adjustments are included in Annex 3. 34. Allocation of additional financing and reallocation of funds. These are done through four dimensions as described below. Detailed breakdown by disbursement category is included in Annex 4(c). (a) Allocation of the Additional Credit amounts to each sub-component and disbursement category. The AF of US$ 14 million will mainly be allocated to Component 1 (about 80 percent). (b) Reallocation of the unallocated amount of the Original Credit (SDR3.11 million) to other categories of items to be financed out of the proceeds of the Credit. (c) Addition and updated definition of categories: A new category of "Consultants' Services/ Training/Workshops" is added to reflect the plan to use IDA, instead of DFID cofinancing which is expiring, for this type of expenditures. The definition of "Incremental Operating Costs for TABMIS" is updated to include costs related to training other than those provided by TABMIS contractor. (d) Changes to percentage of financing in each category: The original capital structure is rather complicated, causing difficulties for financial management and reporting of the Project. Simplification of capital structure is now proposed with only three types: 100 percent IDA, 95 percent IDA, and 100 percent counterpart fund. These changes will be applicable to expenditures incurred after the date of the amendment of legal agreement. 35. Revised closing date. An extension of the project is required for completion of outstanding and additional activities. The key original outstanding activities include (i) Completion of TABMIS rollout to the remaining 28 provinces and any adjustments required after the first years of operation, full operationalization of core TABMIS modules including commitment management and cash management, and introduction of a Treasury Single Account; (ii) Development of a feasibility study for a budget preparation system (BPS); and (iii) Implementation of the domestic debt management system (DMFAS) 6 and integration of domestic and external debt databases. To justify for this second extension, MOF has developed an Action Plan outlining the activities to be carried out during the extended period as well as the disbursement projections for the remaining life of the project (Annex 5 and Table 4). The implementation plan and disbursement projections have been appraised and found acceptable. C. Updated Project Costs, Financing, Implementation and Procurement Plans 36. Project costs and financing. Project costs and financing have changed from the original project, as per the tables below. Details are included in Annex 4(a) and Annex 4(b) respectively. Table 2. Updated Project Costs (US$m.) Original (f) (g) (h) (a) (b) (c) (d) Additional Total Project Original Disbursed Undisbursed Currency Financing undisbursed Total (2/2011) (2/2011) Gain (c)+(d)+(f) (a)+(d)+(f) Component 1 61.422 44.861 16.561 6.935 14.942 39.686 84.547 Component 2 4.180 3.121 1.059 0.041 0.500 0.75 3.871 Component 3 2.881 1.627 1.256 0.000 0.705 1.758 3.385 Component 4 2.974 3.016 -0.04 0.697 0.853 1.315 4.331 Total 71.46 52.625 18.830 7.673 17.000 43.508 96.130 Table 3. Updated Financing Plan (US$m.) Original Credit (f) (h) (a) (b) (c) (d) (e) Additional Project Original Disbursed Undisbursed Currency Total Credit Total (2/2011) (2/2011) Gain (a) + (d) (a)+(d)+(f) Loan 54.330 38.084 16.245 6.351 60.681 14.000 74.681 Grant 9.990 10.225 -0.232 1.322 11.312 0.000 11.312 Counterpart 7.140 4.317 2.823 0.0 7.140 3.000 10.140 Total 71.460 52.625 18.836 7.673 79.133 17.000 96.130 37. Implementation and Procurement Schedule. The revised plan for all activities to be implemented in the extended period and the accompanying procurement plan are included in Annex 5. 38. Disbursements. Disbursements are projected as per the table below. Table 4. Updated Disbursement Projection (US$m.) 2003 ­ 2/2011 - 7/2011- 7/2012- Total of which Total 2/2011 6/2011 6/2012 6/2013 extension IDA project Component 1 44.861 8.376 27.885 3.425 39.686 33.266 84.547 Component 2 3.121 0 350 400 750 750 3.871 Component 3 1.627 254 1.229 275 1.758 1.655 3.385 Component 4 3.016 277 610 428 1.315 927 4.331 Total (cum.) 52.625 8.907 30.074 4.528 43.509 36.598 96.130 7 IV. Appraisal Summary 39. The Bank has completed appraisal of the economic, financial, technical, fiduciary, environmental, and social aspects of the proposed additional activities. Appraisal verifies that needed implementation arrangements are set, fiduciary controls are in place, and the GOV is ready and has adequate capacity to implement the additional activities. The implementation arrangements are expected to continue to operate satisfactorily during the remainder of the project. A. Economic and Financial Analysis 40. As with the parent project, the direct benefits of budget, treasury, and debt management reform are to strengthen the Government's capability to manage public finances more effectively. Therefore, the impact of the project is mostly institutional and cannot be easily isolated or quantified. Consequently, a traditional economic analysis (such as net profit value (NPV) or internal rate of return (IRR)) to justify the project is not appropriate in this case. At project start, it was concluded that the project cost should be more than compensated by savings due to better planning, implementation and control of the budget. Vietnam's total public expenditure in 2001 was the equivalent of some US$7 billion. It was considered that efficiencies of just a quarter of a percentage point of this amount per year (US$17.5 million) would be sufficient to achieve undiscounted payback in just over four years. With similar argument, it can be considered that the gains from project are now several time higher since total public expenditure has almost quadrupled since then (about US$27 billion in 2010). 41. Costs. With an additional US$17 million required for investment costs, and US$ 21.56 million financing extended from the original credit (including gains from exchange rate fluctuations between SDR and GBP and USD of about US$ 7.67 million), the total project costs are now US$ 96 million. 42. Benefits. The project will not generate direct income or benefits against which costs could be compared. Nevertheless, the project will have substantial fiscal benefits over time, namely: (i) improved aggregate fiscal discipline and fiscal risk management (TABMIS, MTEF and MTFF, and debt and risk management will result in better planning, monitoring and control of aggregate budget spending, and avoiding excessive risk exposure and unnecessary borrowing costs); (ii) improved budget allocation at the sector and institutional level (TABMIS, MTEF and MTFF, and roll-out of Budget Allocation module will result in better planning, monitoring and control of spending allocations); and (iii) improved operational efficiency and effectiveness of public expenditure and financial management (TABMIS will result in timely and accurate information and enable improved transparency, for better decision making, control and compliance, external and internal scrutiny, and improved cash management etc). Moreover, the additional activities to be implemented, including the Technical Assistance towards GFMIS, will help improve and sustain the project's impact, and ensure timely preparation for the next phase of PFM reforms in Vietnam. B. Risks 43. Like any projects involving procurement and implementation of large scale IT system, this project was originally considered to be of high risk. However, with a reasonably satisfactory track record of project implementation, the overall risk can now been downgraded to medium risk (Medium-I). Specifically, the downgrade can be explained by the following factors: (i) the AF does not include the development of any additional system, which tends to be complex and time consuming; (ii) the Implementing Agency and the PMU have gained considerable experience in managing this project and remains highly committed; and (iii) the managerial and technical capacity of involved agencies have been considerably enhanced. 8 44. Most of the risks will have high impact if they materialize, but there is a low likelihood of them occurring (see Annex 2). One of the highest risks is associated with the sustainability of the project's impact, involving: (i) MOF and contractor's ability to constantly ensure satisfactory system performance, capacity, and functionality vis-à-vis government requirements in short and medium term; (ii) MOF's ability to smoothly take over the operation of the completed systems from the contractors before the end of the contract and (iii) continued effort by the Government to maintain project initiatives after completion of the project. 45. Mitigation measures are built into the project's plan, and will be implemented and properly monitored to ensure successful and timely implementation of the project. These include: (i) MOF will continue to work closely with the contractor to resolve related issues (system hanging, slow response times, problem resolution times, and server capacities) to strengthen and maintain system credibility; and implement additional activities toward full operationalization of key system modules. (ii) MOF will be developing a time-bound and well defined take-over plan from the contractor; developing a capacity enhancement plan informed by an IT audit (to assess needs, gaps, strategy to enhance capacity and infrastructure); intensifying training to ensure adequate in-house capacity for system management, information security and performance monitoring; and gradually taking over the ownership of the TABMIS database and system administration functions; and (iii) MOF will be institutionalizing the reforms initiated under the project to sustain their long-term impacts; appropriately scaling up accomplishments; timely studying roadmaps for future expansions and incorporating identified roadmaps into mainstreaming development strategies; and strengthening training and change management with various stakeholders to timely prepare for future reforms and enhance reform buy-in. C. Financial Terms for the AF 46. The Additional Financing would be provided as an IDA Credit. The only condition of effectiveness is the receipt of a legal opinion certifying that the Additional Financing Agreement will have been duly authorized and executed by the Government of Socialist Republic of Vietnam and is legally binding. D. Fiduciary, Safeguard, Institutional and other Operational Aspects 47. Fiduciary. Procurement under the proposed Additional Financing will be carried out in accordance with the World Bank's Guidelines: Procurement under IBRD and IDA Credit, May 2004, as revised in October 2006 and May 2010, and Guidelines: the Selection and Employment of Consultants by the World Bank Borrowers, May 2004 as revised in October 2006 and May 2010 and in provision stipulated in the Financing Agreement. Apart from the requirement to use the most updated version of the procurement guidelines and the increase of the authorized amount for the Designated Account, the fiduciary arrangements will remain unchanged from those of the parent project. The PMU implementing the additional activities was appraised for its capacity to implement procurement and adequacy of financial management arrangements under the parent project. The PMU has implemented procurement and exercised financial management satisfactorily and demonstrated a satisfactory track record of implementation of fiduciary requirements. With the activities planned for the remaining project period, the PMU is advised to request monthly replenishments of the Designated Account. The Bank's Anti- Corruption Guidelines will apply to the Additional Financing. 9 48. The propose procurement plan submitted by MOF has been found acceptable to the Bank team and is in accordance with discussions held. The proposed procurement methods for goods and consultants' services are in accordance with the provision of the Procurement Schedule of the Financing Agreement (FA). 49. The procurement plan foresees a large number of individual contracts (both local and international), as opposed to firms. This approach is considered to be appropriate since the majority of these consulting services are of a specialized nature where the experience and qualifications of the individuals are paramount. The proposed pairing of international with national consultants is a measure to minimize the time normally required for international consultant to familiarize themselves with local conditions. Furthermore, it is expected that MOF would consider grouping a number of individual consultancies into several packages to be procured via QCBS or CQS as appropriate. The justification for procuring a large value additional hardware and licenses through direct purchase or variation orders through the Contractor for the on-going TABMIS contract is acceptable given the proprietary nature of the required goods and warranty and integration responsibility. It is expected that an updated procurement plan in light of appraisal discussions will be finalized by the end of negotiations. 50. Social. The extension phase is not expected to change to the assessment of the social impact of the original project. 51. Environment. As with the original project, no environmental impact of the extension phase is expected. 52. Safeguards. Similarly to the original project, no safeguard issues are triggered. 53. Institutional arrangements. At the broad level, the implementation arrangements will remain unchanged from the original project, given that (i) these have been proven to be satisfactory in recent years of project implementation; (ii) MOF and PMU have gained considerable experience in managing this project and remain highly committed to implement the activities proposed under the AF; and (iii) MOF is committed to adopt the coordination plan and reinforce human resources of the PMU. 54. Meanwhile, as noted above, it will be particularly arduous to coordinate the selection and manage a large number of individual consultants in the extension period. MOF has committed to maintain and enhance the current arrangements within MOF and PMU. By end of April 2011, MOF will adopt a time- bound assignment and coordination plan, to ensure smooth implementation of the AF activities among relevant functional departments, the Component Technical Units led by senior officials, and the PMU's Component Implementation Teams. In addition, the PMU will urgently bring in additional full-time staff and advisory consultants to support project and contract management, and enhance necessary training to its staff. Moreover, MOF will timely review the current internal procurement approval procedure which appears to be cumbersome, and will make necessary streamlining. 55. Fraud and Corruption. The areas considered most likely to be subject to wrongdoing are fraud in financial management, and fraud and corruption in procurement. Safeguards to prevent fraud and corruption in these areas that have been put in place by the MOF have been reviewed and assessed as adequate to enable them to implement the Bank's anti-corruption guidelines, a copy of which has been provided. There have been no allegations of fraud or corruption thus far in the parent public financial management reform project, and no extraordinary mitigation measures are considered necessary to supplement those that are already in place. 10 Annex 1. Revised Results Framework and Monitoring Indicators Revisions to the Results Framework Rationale for Change Current Proposed change PDO The objective of the Project is to The objective of the Project is to Unchanged. strengthen the Recipient's strengthen the Recipient's capacity to plan, execute and capacity to plan, execute and report on its budget and to report on its budget and to improve the transparency and improve the transparency and accountability of the budgetary accountability of the budgetary systems and processes. systems and processes. PDO indicators Accuracy, timeliness, relevance, Accuracy, timeliness, relevance, Unchanged. transparency and compliance with transparency and compliance with international best practices in international best practices in budget execution and reporting at budget execution and reporting at each level of government. each level of government. Better planning of the State Better planning of the State Minor change in the guiding Budget and the Public Investment Budget and the Public Investment strategy paper from CPRGS Program to achieve the growth Program to achieve the growth to SEDP. and poverty reduction goals set and poverty reduction goals set out in the CPRGS. out in the SEDP. Greater fiscal sustainability Greater fiscal sustainability Unchanged. through improved and more through improved and more integrated recording of external integrated recording of external and domestic public and publicly and domestic public and publicly guaranteed debt, improved guaranteed debt, improved capacity to monitor SOE capacity to monitor SOE liabilities, and improved ability to liabilities, and improved ability to assess associated fiscal risks. assess associated fiscal risks. Intermediate Results/Output Indicators Part A: Strengthen Treasury and Budget Management (a) Utilization throughout (a) Utilization throughout Revised. The chart of government of an integrated government of a restructured accounts (COA) was chart of accounts for treasury and integrated chart of restructured and integrated and budget management and accounts for treasury and for treasury and budget spending units, consistent budget management, management, but yet for with appropriate international consistent with appropriate spending units. Eventually, standards (by end 2004). international standards (by the COA is expected to be end 2011). further revised to enable consolidation of information from Spending Units, but further study needs to be conducted (see outcome indicator 1(i)). 11 Revisions to the Results Framework Rationale for Change Current Proposed change The restructured COA is being utilized at rolled out sites. COA utilization progress is therefore contingent on completion of roll-out which is now scheduled for end 2011. (b) Implementation of TABMIS (b) Implementation of TABMIS Revised. Roll-out plan has in Treasury head office, in treasury head office, MOF been modified, leaving the MOF, MPI and one pilot and two pilot provinces (by major provinces toward the province (by end 2005), with June 2009), with relevant end, to mitigate the relevant staff trained. staff trained. operational risks. (c) Roll-out of TABMIS to all (c) Roll-out of TABMIS to all Revised. Roll-out is Treasury offices in provinces Treasury and Finance Offices implemented to Treasury and and districts (by end 2007), in provinces and districts (by Finance Offices in each site with relevant staff trained. end 2011), with relevant staff at the same time. The roll- trained. out plan has also been (d) Roll-out of TABMIS to modified towards completion Finance departments and by end 2011. planning departments at provincial and district level Departments of Planning and (by 2008), with relevant staff Investment (DPIs) at trained. provincial and district levels were excluded from TABMIS roll-out since it was considered not cost- effective to do so. DPI access to TABMIS will be further studied under the Web portal and GFMIS work (Annex 2, sub-components 1(g) and 1(i)). (e) Piloting of TABMIS in (d) Implementation of budget Former indicator dropped. selected large spending units allocation module in 40 large New indicator proposed, in (by 2008), with relevant staff central ministries and line with changed project trained. government agencies (by end activities (see more detail in 2011), with relevant staff Annex 2, sub-component trained. 1(d)). (e) Roll-out of budget allocation New. To monitor the results module deployment to of one major additional sub- selected major supervising component (see more detail agencies at central budget in Annex 2, sub-component level (by March 2013), with 1(e)). acceptable performance and relevant staff trained. 12 Revisions to the Results Framework Rationale for Change Current Proposed change (f) About 80% of state budget New. To monitor the expenditure commitment and efficiency of commitment associated contracts, and management enabled by 100% of capital expenditure TABMIS. commitment are recorded and monitored through TABMIS (by end 2011). (g) Budget execution results New. To monitor the directly obtained from accuracy and timeliness in TABMIS are published on budget execution and MOF website on a monthly reporting. Currently, only basis within 15 days after the aggregated estimates of end of the month (by March budget execution are 2013). published, on a quarterly basis and 45 days after the end of the quarter. It is also advised that the level of disaggregation of published data should be increased. (h) Preservation of at least 30 New. This is to mitigate one dedicated and properly of the highest risks trained technical specialists associated with the at central, to manage sustainability of project TABMIS databases, system impacts (refer to main text, security, user access, and to paragraphs 43-45). provide technical support to end users. (f) Progress on the road from (i) Progress on the road from Revised. A unified COA and cash to accruals accounting cash to accruals accounting; progress toward applying and to a Treasury Single Unified Chart of Accounts IPSAS and accrual Account. for consolidation of state accounting are expected accounting information (Annex 3, sub-components developed (by March 2013). 1(e)-1, 1(e)-3, and 1(e)-4). (j) Model, roadmap for New. To reflect progress on development and the road toward implementation of cash implementation of modern management system adopted CM systems. It is expected (in 2012); and Study on cash that in 2012 the legal management tools and framework for cash systems conducted; and management including CM Treasury Single Account system model and roadmap introduced (by March 2013). will be adopted. A study on CM tools and systems including for cash flow forecasting will also be conducted by project end. 13 Revisions to the Results Framework Rationale for Change Current Proposed change Progress towards a TSA was originally envisaged. By now, it is likely that the TSA will be introduced by project end, when the inter-bank and inter-treasury payment systems are activated and cash management legal framework is adopted. (Annex 3, sub-component 1(e)-2). (k) Model, implementation New. To monitor the results roadmap, technical of one major additional sub- requirements and bidding component (Annex 3, sub- document for TABMIS component 1(f)). portal developed. (l) Model and implementation New. To monitor the results roadmap for a government of one major additional sub- financial management component (Annex 3, sub- information system component 1(g)). developed. Part B: Strengthen State Budget and Investment Planning (a) 5 year MTFF prepared as (a) 3 year MTFFs and MTEFs Revised. No change in part of 2005 budget cycle, piloted as part of budget originally targeted objectives and rolled over, updated and cycle in four sectors and four and outputs, revision reflects published as part of each provinces; and rolled over, changed preparation and subsequent budget cycle. updated and published as pilot approaches. part of each subsequent (b) MTEFs successfully piloted Merged with Part B (a) budget cycle (starting from in two sectors and two above. fiscal year 2005 until fiscal provinces as part of 2005 year 2008). budget cycle; rolled over and updated in the first two sectors and provinces, plus piloted in a further two sectors and provinces, as part of 2006 budget cycle; and rolled over, updated and published in all four sectors and all four provinces in subsequent years. (d) Workshops on medium-term (b) Workshops on medium-term Revised. Workshops were expenditure planning budget planning provided to conducted on both medium- provided to all relevant relevant senior National term fiscal and expenditure senior government officials Assembly deputies and frameworks; not only with by 2006, with consensus for government officials (by senior government officials 14 Revisions to the Results Framework Rationale for Change Current Proposed change wider roll-out of medium- 2008), with consensus for but also with relevant term budget planning wider roll-out of medium- parliament deputies (output emerging. term budget planning order was changed to be in emerging. line with corresponding sub- component). (c) Guidelines for nationwide New. To monitor the results implementation of MTFF of one major additional sub- and MTEF finalized (by component. The guidelines March 2013). will be finalized, but will only adopted after the amended budget law is passed (passage timing is unidentified now). (c) Budget planning module of (d) Feasibility study of a budget Revised. Budget planning TABMIS tested and preparation system (BPS) module of the proposed implemented in all 61 completed and technical Oracle solution as a part of provinces by 2008. requirements for BPS TABMIS is considered not developed in line with the appropriate to MOF needs. conclusion of the feasibility The original PAD envisaged study (by March 2013). the implementation of a stand-alone BPS interfacing with TABMIS. The project is restructured to reduce the scope of BPS implementation to development of a feasibility study for such system (Annex 2, sub-component 2(e)). If the study finds BPS development feasible, technical requirements for the system will be prepared under the project as well. Part C: Strengthen the Management of Public Debt and other Fiscal Risks (a) Identification of a lead (a) Identification of a lead Revised. The output was department in MOF to direct department in MOF to direct competed with delay (in debt management across debt management across 2009). Government, with Government, with appropriate regulations appropriate regulations issued by end 2004. issued (by mid 2009). (b) Approval and publication of (b) Approval and publication of Revised. The approval of debt management objectives a long-term debt debt management objectives by end 2005. management strategy was delayed since it is including debt management contingent on the approval of objectives (by end 2011). the long term debt strategy. 15 Revisions to the Results Framework Rationale for Change Current Proposed change (d) Analytical capability in debt (c) Analytical capability in debt Revised. The TA funded by management enhanced with and risk management the AF focuses on capacity critical staff identified and enhanced with critical staff building for risk management trained. identified and trained. Middle of public debt. Meanwhile, Office capacity is sustained there is a strong need to by, among other things, sustain sufficient number of preservation of at least five staff with appropriate staff of appropriate qualification and experience qualification and experience. in the MO to benefit from the TA to be provided (the order of outputs 3(c) and 3(d) was changed for consistency with corresponding sub- components). (c) Domestic debt recording (d) Domestic debt recording Revised. Implementation of system (able to provide system (able to provide DMFAS and integration of consolidated public debt data, consolidated public debt domestic and external debt including external debt) data, including external debt) database was delayed due to established and operational established and operational difficulties in procurement. by end 2005, with key staff (by end 2011), with key staff trained in new trained in new systems/practices. systems/practices. (e) Strategy for debt and risk New. To monitor the results management information of one major additional system developed (by March activity. 2013). (f) DeMPA self-assessment on New. To monitor the results public debt management of one important additional performance conducted (by activity. mid 2012). (e) SOE liabilities monitoring (g) Legal framework and Revised. To monitor practices established and monitoring indicators expected progress in line operational by end 2006, adopted (by end 2011); with changed circumstances with key staff trained in the analytical capability (Annex 3, sub-component use of this information to enhanced, for monitoring of 3(c)). make preliminary SOEs fiscal risks. assessments of associated risks. Part D: Project Implementation Support (a) Key project staff and (a) Key project staff and Unchanged. equipment in place by 2004 equipment in place by 2004 and throughout project and throughout project implementation period. implementation period. 16 Revisions to the Results Framework Rationale for Change Current Proposed change (b) Full compliance with World (b) Full compliance with World Unchanged. Bank procurement, financial Bank procurement, financial management and reporting management and reporting requirements. requirements. (c) International project and New. To monitor timely contract management engagement to critical consultant(s) in place (by advisor support in project March 2011). and contract management. (d) Study on follow-on public New. To monitor the results financial management of one important additional reforms and systems activity. development conducted (by March 2013). 17 Annex 2. Operational Risk Assessment Framework Project Development Objective(s) The objective of the Project is to strengthen the Recipient's capacity to plan, execute and report on its budget and to improve the transparency and accountability of the budgetary systems and processes. PDO Level Results 1. Accuracy, timeliness, relevance, transparency and compliance with international best practices in budget Indicators: execution and reporting at each level of government. 2. Better planning of the State Budget and the Public Investment Program to achieve the growth and poverty reduction goals set out in the country development strategies and plans. 3. Greater fiscal sustainability through improved and more integrated recording of external and domestic public and publicly guaranteed debt, improved capacities to monitor SOE liabilities, and improved ability to assess associated fiscal risk. Risk Risk Rating Risk Description Proposed Mitigation Measures Category Project Stakeholder Risks Medium-I The risk that direct and indirect stakeholders may Project will continue change management and (High Impact/ lack understanding of project complexity during consultation with various categories of stakeholders, as system/impact stabilization period might adversely part of communication strategy. Low Likelihood) affect the determination of Implementing Agency (IA) to satisfactorily complete the project as Release of new features will be tested and signed off planned and sustain project impact afterwards. carefully. Implementing Agency Risks Medium-I There are risks associated with lacked capacity to TA on international practices, training, and country (High Impact/ implement complex project, insufficient capacity peer learning will be implemented. IA will also utilize and confidence to judge advice from contractors other available resources, e.g. multi-donor trust fund, Low Likelihood) and advisors, and fraudulent claims of bonuses. for needed technical assistance and capacity building. The Bank is maintaining close supervision and implementation support. 18 Risk Risk Rating Risk Description Proposed Mitigation Measures Category Efforts underway to timely engage with advisory support in technical, project and contract management, where IA capacities appear to be insufficient. MOF will enhance training (including short-term exchange and on-the-job training in other countries) and understanding of acquired solutions, to build self confidence to use external advice in the best way possible. A section on fraud and corruption will be included in the external financial auditor TORs. Project Risks Design Medium-I The risk that timing will not be enough for IA has decisively led the designing of the project, in (High Impact/ successful completion of project activities, rolled- close consultation with the World Bank. Lessons from out activities are not based on well tested modules, previous implementation have been incorporated into Low Likelihood) and preparations for envisaged future expansion design of AF phase. Relevant legal, technical and HR are more supply driven. constraints have also been taken into account. Operations Medium-I The risk that Help Desk is not well functioning to IA will constantly strengthen Help Desk's capacity, (High Impact/ address comprehensive technical issues raised by through on-the-job training, and ensure its sustainable users, which may affect user confidence in use of staffing. Coordination between its staff and specialized Low Likelihood) the system, rollout progress to additional sites, and technical support staff will be strengthened, to address efforts towards additional functionality. all queries from users properly. Social & Low Potential environmental impacts and social issues Environm associated with the project. ental Program Low Uncoordinated efforts supported by various The Steering Committee will take responsibility for & Donor programs and donors might divert the focus of the coordinating donors in the area of public financial IA away from satisfactory completion of PFMRP management reform. activities. Delivery High The risk that project's accomplishments and Quality impact may not be sustainable, due to: 19 Risk Risk Rating Risk Description Proposed Mitigation Measures Category i) Unsatisfactory system performance, capacity, IA is 1) working closely with the vendor to resolve and functionality vis-à-vis government related issues (system hanging, slow response times, requirements in short and medium term. problem resolution times, server capacities) to strengthen and maintain system credibility; 2) implementing additional activities toward full operationalization of key system modules. ii) Lack of IA's full ownership for all aspects of Realizing the importance of this issue, IA is urgently the operations, even when it may elect to developing 1) a detailed hand-over plan to ensure outsource several other aspects; ownership by contract end; 2) an IT capacity enhancement plan informed by an IT audit; and 3) in- house capacity for system management, information security and performance monitoring. iii) Reforms initiated under the project are not IA is 1) institutionalizing reforms initiated to sustain followed up by further expansion towards their long-term impacts; 2) appropriately scaling up identified longer-term. accomplishments; 3) timely studying roadmaps for future expansions and incorporating identified roadmaps into mainstreaming development strategies. Additional measures include: 4) Constant dialogue between GoV and WB to sustain the long term objectives of the project; 5) Strengthened training (including country peer learning) and change management on reforms towards international best practices; 6) Designed project components providing enabling platforms for future development. Overall Risk Rating at Overall Risk Rating Comments Preparation During Implementation The rating of Medium-I for preparation is associated with the safe design approach ­ not including any additional system development. The same rating for implementation Medium-I Medium-I reflects the strong government commitment and considerable experience gained and capacity built during project implementation. Highest risk is associated with impact sustainability which will require close monitoring of various mitigation measures. 20 Annex 3. Detailed Description of Modified or New Project Activities This section describes in detail the modified or new project activities as a result of restructuring and additional financing. The Project Appraisal Document of original project (Report No. 25480-VN) remains valid for reference. Revisions in this Project Paper will supersede relevant sections in the original PAD should there be any difference between the two papers. COMPONENT 1: STRENGTHENING TREASURY AND BUDGET MANAGEMENT In 2006, IBM was selected to be the system integrator (contractor) for TABMIS development and implementation. Oracle Business Suite applications and database were chosen as solution. After 7 years of project implementation, four out of five critical stages of TABMIS have been implemented: (1) analysis and re-design of the policies, business processes and the accounting regime for TABMIS, (2) analysis, design, development and testing of the software, (iii) setting up the hardware system, and (iv) piloting and currently rolling out the system. However, the completion of TABMIS will require additional budget and time. There are also critical issues that need to be addressed urgently to ensure satisfactory system performance and operational acceptance, and sustainability of developed solutions. Sub-component 1(a) ­ Procurement assistance and Independent Bid Evaluation (original sub- component 1(a)). Sub-component 1(b) ­ Technical Assistance for TABMIS implementation (revisions to original sub- component 1(b)). Sub-component 1 (b) provides assistance with (i) procurement management; (ii) Independent Validation and Verification (IV&V) services; and additionally (iii) IT project management expertise, including system testing and system audit; and (iv) ongoing support for TABMIS development, implementation, and rollout. This technical assistance will not only provide independent verification, but also close consultancy for MOF and PMU oriented towards MOF interests during project implementation. 1(b)-1. TA for Project Implementation: Technical, functional and project management capacities of MOF's human resources have markedly increased in the first phase of the TABMIS Project. However, to complete project efficiently and take over the system from the contractor, MOF still requires technical assistance to complete the project with high efficiency and build capacity for TABMIS operation and administration. 1(b)-2. TA for Oracle Database and Applications: Assistance with technical expertise in Oracle Database and Oracle Financials, to conduct functional audit, consulting and training activities, and provide on-going support on technical issues. The scope of this assistance will also include oversight of the technical training (1(c)-4 below), plus a feasibility study on Oracle software versions upgrades in light of the high level of customization in TABMIS. 1(b)-3. TA for Functional Expertise: Technical assistance with process and functional expertise in Treasury and Budget Management, to provide on-going support on accounting, budgeting, and business process issues, including rationalization of user license usage. This technical assistance provide process and functional advise which was lacking in the IV&V consulting provided in the last years. This assistance will provide consulting and training for capacity building of MOF's business and functional staff during the TABMIS and BA rollout. 21 1(b)-4. TA for developing feasibility study and technical requirements for system operation and administration services: After the Contractor completes TABMIS rollout, the system will be handed over to MOF for operation and administration. It is necessary to plan in advance the purchase of additional supporting services, if needed, beyond the warranty and post-warranty periods. MOF plans to establish of a team specializing in the task of system operation and administration, and plans to recruit and train new staff. However, under current circumstances and in the coming years, TABMIS operation and administration will be a difficult task for MOF due to the complexity of the system and the lack of sufficiently trained technical and functional staff. Thus, MOF will focus on preparing for direct administration of important parts of the system, for example the database. For other duties, it is necessary to consider outsourcing system operation and administration after the completion of TABMIS rollout and warranty periods. The project will organize an IT audit to assess the current MOF IT operation. Based on this audit, technical assistance will be provided to develop a feasibility study and technical requirements and the bidding document for procurement of outsourced maintenance, system operation and administration services. Sub-component 1(c) ­ TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government agencies (mergence of original sub-components 1(c) to 1(h) plus new element) The ongoing TABMIS implementation suffers from some deficiencies such as insufficient hardware capacity, insufficient software licenses, and insufficient system operation capacity, resulting in unsatisfactory system performance. Thus, to successfully complete the TABMIS rollout, it is necessary (1) to continue with rollout activities; (2) to procure additional hardware; (3) to purchase additional licenses; (4) to continue training of users and technicians. 1(c)-1. TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government: TABMIS has been rolled out to both Treasury offices and Finance offices by province or district. Original plan to concurrently rollout to investment and planning departments (DPIs) at provincial and district levels has been revised, since it was considered not cost-effective to do so. DPI access to TABMIS will be further studied under the Web Portal and GFMIS work (sub-components 1(f) and 1(g)). By the original project end date of February 2011, rollout will have reached to 35 provinces/cities. MOF and contractor will continue with system roll-out at the remaining 28 provinces/cities, system acceptance and hand-over, maintenance and support. The cost for these activities (payments of TABMIS contract to IBM, implementation expenses associated with the contract, Government's implementation expenditures, training in policies and accounting, etc) will be covered by undisbursed funds carried over from the original project. Within the scope of the current phase, the Oracle Financials Budget Allocation Module (BA), embedded in TABMIS, is being implemented at treasuries and financial agencies from the central level to the district level. Data entry of budget allocations to all spending units, a great volume of work, is carried out by the financial agencies, resulting in a heavy burden of work. To address this imbalance of between budget allocation workload between finance agencies, line ministries and local agencies, it is necessary that major supervising agencies can directly enter budget allocation data for their own sectors into the system to enhance their responsibilities and ensure the accuracy and timeliness of the budget allocations in the system. Given these reasons, during the first contract variation order, it was decided that BA will be deployed at 40 largest out of 122 ministries and central government agencies which, by Vietnamese budget system, 22 are tier-1 agencies of central budget level. These are the ministries and agencies which own the largest number of subordinate spending units. This task was traded off with the TABMIS pilot at selected large spending units (former sub-component 1(g), given the need to implement BA at these units, and the conclusion that it would not be cost-effective to pursue direct access to TABMIS by SUs (see more detail in sub-component 1(f) below). To date, 15 major ministries and government agencies have been trained and already entered 2010 budget allocation data for their sectors in TABMIS. By end 2011, financial and budget departments of 40 ministries/agencies will be able to directly access to TABMIS and conduct budget allocation for their sectors. 1(c)-2. Additional hardware: According to the bidding document and the contractor's commitment in the contract, the current sizing of TABMIS servers is for 5,100 named users (or 2,550 concurrent users) with scalability for up to 10,200 named users (or 5,100 concurrent users) by the 13th year of operation. These numbers were estimated at the beginning of the Project, in 2003, based on the real number of transactions in 2002, and extrapolated using a forecasted economic growth rate of 6% per annum. However, according to the current demand of TABMIS implementation, the number of users will be about 14,000 when the system is fully rolled out to all provinces/cities, an increase of 9,000 users as compared to the total number of users stated in the original contract, and an increase of 4,000 users as compared to the maximum capacity of the system committed to by the Contractor. Moreover, the volume of transactions has also increased by many times as compared to the figure forecast in 2003. In 2003, it was predicted that the volume of transactions would be 54 million in the 3rd year and 95 million in the 10th year. In fact, according to the actual number of transactions in 2009, the total volume of transactions at the completion of TABMIS rollout will be nearly 300 million per year. In addition, according to the project design, each implementation unit will be supplied with 2 PCs. However, due to splitting of districts from the beginning of the Project to the expected completion of the system's rollout, the number of PCs stated in the Contract will be 500 short of what is required in order to ensure system rollout throughout the country. Thus, in order to ensure system rollout throughout the whole country with stable efficiency and operation, it is necessary to procure additional hardware (servers, PCs, other necessary equipments and set-up services). The demand for additional servers will be at least three times (an increase of two times) when compared to the existing sizing. Updated sizing and division of related responsibilities between MOF and TABMIS system integrator regarding additional hardware are being clarified urgently. It is expected that new servers will be installed by IBM, as part of its contractual obligations, and then by MOF, as soon as possible to ensure sufficient central resources for the coming rollouts. Moreover, the warranty periods of some of the training and development environment hardware, which were installed in 2007 and 2008, will expire in 2012 and 2013. Such hardware will be replaced or supplemented in the extended period. 1(c)-3. Additional software license: There is a need to purchase additional licenses for the whole package. TABMIS contract defined the number of users of 5,100 so the correlative number of Oracle software licenses was calculated and put into the total investment capital of the Project. Due to the expected increase of the number of users to 14,000, it is necessary to buy additional licenses in the extended period. The procurement method and exact cost for the additional licenses will be decided after negotiations with the supplier. As in other similar projects funded by the World Bank (e.g. Moldova, Kyrgyz Republic, Georgia, and Ukraine), there is ongoing negotiation effort to simplify licensing terms for web-based applications, i.e. on concurrent user and/or enterprise package basis, instead of named user licenses as in the original contract. This effort is expected to help reduce the licensing costs for the government. 23 1(c)-4. Additional training (end-users, technical, and functional training): The increase of the number of users will, of course, create demand for additional training. In addition, there is a need for additional training for officials after rotation, plus retraining of certain users of the current phase. The training content will be the same as that of the current phase, consisting of technical, training, functional training, accounting policy training and end-users' training. Training approaches will be considered during implementation. Concerning technical training, as TABMIS is a large, complex system requiring a high availability, system operation and administration requires MOF to have adequate technical staff with professional knowledge and intensive technical knowledge. Operations during the current phase have revealed shortage of human resources with technical knowledge of system operation and administration, despite the fact that technical training courses have been delivered by the vendor. Based on the actual demand and the experience from other countries, it is advised that MOF should arrange and provide in-depth training to 40-50 officials at the central level to gradually handle TABMIS operation and administration. At the lower levels, training for IT officials and key users needs to be constantly maintained as well. Sub-component 1(d) ­ BA module rollout to selected major supervising agencies at central budget level (new) To continue to address the imbalance of budget allocation workload between line ministries and local agencies, BA implementation should further reach out to other major budget supervising agencies. The government has decided to roll out BA further to about 300 agencies at tier-1 and tier-2 level of the central budget (such as General Departments of Taxation or Customs, which are under line ministries, or the Provincial People's Court under the Supreme's Courts, or the University directly under Ministry of Education). This additional rollout is considered cost-efficient and feasible. The selected agencies are the departments or agencies overseeing a great number of subordinate units at all lower levels. In addition, most of these units are located in Hanoi or in the center of provinces/cities where there already exists sufficient technical infrastructure and human resources to ensure implementation is feasible. The AF funds will be used to optimize infrastructure to ensure adequate communication between MOF and these agencies, and purchase additional hardware, software and implementation services. This additional activity is to increase system efficiency and spread out the current workload. Ultimately this aims to sustain project's accomplishments and impact, and ensure that system capabilities will be appreciated by wider system users from MOF to the government, including lines ministries and provinces, as a whole. Sub-component 1(e) ­ Supplementary technical assistance with financial management rationalization and reform (addition to original sub-component 1(i)). The objective of this component as a whole is to support the reform of treasury and budget management, and not just the strengthening of systems used for such management. This sub-component ensures that funds are available to finance related technical assistance needs as they emerge during TABMIS implementation and GFMIS preparation: 1(e)-1. Assistance with the chart of accounts and business processes for TABMIS: Government has already undertaken some important financial management rationalization and reforms, in preparation for and during TABMIS implementation. This includes the establishment of a restructured and integrated account code structure for the treasury and budget accounting systems and review and reengineering of business processes for TABMIS. 24 1(e)-2. Assistance with preparation for modern cash forecasting and management systems and establishment of Treasury Single Account: The Oracle Financials Cash Management Module was implemented in TABMIS Phase 1 but not fully rolled out. Some functionalities have been implemented, such as funds transfer and the recording of interest and fees. It will not be possible to implement modern cash management by project end, due to lack of legal and technical requirements including data integration across external systems that are under development. Cash flow forecasting has not yet been implemented due to the lack of data and interfaces from related agencies (e.g. tax and customs) required for such forecasting. TABMIS currently lacks the capacity for cash forecasting and cash management, which can only be provided in the long term when there is sufficient legal basis (a decree on cash management, in which relevant units are required to provide information of revenue and spending including commitments to the State Treasury for collection and cash forecasting) and related technical conditions (especially revenue management systems for Tax and Customs, and payment interfaces with banks). Additional technical assistance is needed for Cash Management function, including for: identification of sources and formats of data required to enhance the use of TABMIS CM module to improve cash flow management at the treasuries, assistance in the development of spreadsheets for cash management requirements not covered by TABMIS CM module, and analysis of the impact of debt management reform and implementation of Treasury Single Account on cash management. This sub-component is to assist with the preparation for future phased implementation of cash management systems. It includes development of model and roadmap for cash management system, and if possible, of technical requirements for cash forecasting system which will help the development of a system in a near future. Establishment of a Treasury Single Account: The combination of TABMIS and the new inter-bank transfer system will make a Treasury Single Account technically feasible, but assistance with institutional development will be required to support its operationalization and the development of associated processes and procedures. 1(e)-3. Consolidation of State Accounting information and preparation for establishment and operation of State Accounting General function: Currently, budget accounting conducted at the treasuries is separate from accounting at the spending units, with separate reporting regimes. This TA would analyze how this could be rationalized and how spending unit state budget accounting reports might eventually be produced in TABMIS. The project will support the development of a unified chart of accounts (UCOA) for consolidation of state accounting information. As experienced in many other countries, the development and implementation of such a unified accounting regime are feasible, where SUs may use their own detail of the universal COA, but must follow the level of aggregation required by the reporting system interfacing with the Treasury. There should also be improvement of the budget classification (BC) and alignment of UCOA with the BC (including for MTEF needs). This sub-component also includes technical assistance towards the establishment of an Accountant General function at the State Treasury of Vietnam; development of the Accountant General chart of accounts; design of business processes suitable for processing of accounting information input and output. Including eventually producing Whole Of Government financial statements from TABMIS. 1(e)-4. Development of regulation to apply IPSAS: The scope of this technical assistance would also include reform of legal framework, and eventual application of policies and regulations to apply international public accounting standards (IPSAS) towards accrual accounting. 25 Sub-component 1(f) ­ Assistance with preparation for a TABMIS Portal for access by spending units and external partners (new) There was a plan to attempt to pilot implementation of TABMIS in selected large spending units, as the first step toward the long-term vision of integration of all spending units into TABMIS, so that they could transact electronically with the Treasury. With about hundred thousand spending units in Vietnam, the rollout of direct TABMIS access to all of them is not feasible, even in the long run. The approach is considered not cost-effective, since it would pose enormous cost and technical challenges, and security concerns. However, the demand for information collection and consolidation in TABMIS is one of the objectives of a Government financial information system. Immediate and effective utilization of available TABMIS functionalities is also required. The approach to link SUs with TABMIS was changed from direct access to indirect access through a Web Portal. International experience has shown that developing a Portal is a necessary and appropriate solution to input spending unit information into TABMIS, exploit TABMIS functionality and save investment costs. Initial ideas suggest such Portal to provide the interface for budget-, purchase- and payment-related data exchange from the spending units to the Finance Departments & Treasuries. This portal would include all processes and data which need to be provided by the SUs for the purpose of recording state budget execution, including budget allocation, payables and commitment management, and budget releases. Once developed, such portal is also expected to be able to support access to TABMIS by other government agencies (such as planning and investment departments at all levels) and external partners of the government. To prepare for the implementation of this Portal, technical assistance is required develop a model and roadmap, a high-level design, technical requirements and bidding documents for the procurement of Portal in follow-on projects. Sub-component 1(g) ­ Assistance with development of model and roadmap for a GFMIS (new) There has always been a vision toward a future government-wide financial management information system (GFMIS) with TABMIS at its core. Study will be conducted on a number of possible functional enhancements for PFM aspects, either as stand-alone systems interfacing with or modules integrated to TABMIS. Building on the accomplishments of this project, the Government will try to define a strategy to achieve that vision by defining the scope of future phased extension. It is very important that a strategy going forward for TABMIS be formulated from a business strategy (for instance what the MOF plans to do in relation to expenditure control and the possible move to program or performance based budgeting) and then from the business objectives and vision to drill down to ICT implications. IT solutions should not drive the PFM reform process, and meanwhile information systems should be designed to support improved business processes, not to just automate existing shortcomings. Also, the development of such vision will certainly have impacts to the formulation and amendment of legal framework in the future. Key modules of the proposed TABMIS, and the wider integrated financial management information architecture, are summarized in the chart below. The provisional six key modules of TABMIS are summarized in the rectangular box. This TABMIS will have the capability to interface with the further systems (either existing or envisioned) summarized in the oval shapes surrounding. 26 To carry out long-term public financial management reform beyond the current project, towards the goal of realizing a comprehensive government financial management information system the following technical assistances is required: 1(g)-1. TA for feasibility of public asset management rationalization: Technical Assistance to MOF departments responsible for fixed asset management and asset management policy (Public Asset Management Department-PAMD), to assist in preparations for eventual rationalization of financial management of fixed assets at Spending Units. Fixed Asset (FM) module of Oracle was purchased in TABMIS contract but not implemented, and in fact the scope of work originally designed under phase 1 was traded-off with several items of Variation Order 1. Software license for this module is still available but not in use. The constraints leading to the postponement were i) there is no connectivity between the current core TABMIS and budget spending units (SUs), therefore it is difficult to key data into the system by SUs who manage and use public assets, ii) TABMIS COA bases on modified cash accounting while the SUs' COA bases on accrual accounting. These key constraints are still current, and will remain applicable if no measures are to be undertaken to address them in the future. At the present, the management mandate of MOF is focusing only on certain large asset types such as premises, land and vehicles (with value higher then VND 500,000,000). The management need of PAMD is limited at number aspects, original price and physical status of assets only but not much on financial aspects of the public assets ­ including depreciation ­ of these kinds (big value) and of other kinds as well (e.g. assets with value higher than a certain level which is defined contingent on the financial management purposes). MOF has developed and installed a "tailor made" software program to serve the current management mandates. 27 There is a need for technical assistance to study applicable solutions which will enable the recording and management of all government assets, including those overseen by PAMD, in all management and financial aspects. 1(g)-2. TA for studying GFMIS model and roadmap: Based on the Government's development strategies for the financial and IT sectors, this technical assistance will support the development of a model and roadmap for the further development of FMIS to serve as a shared vision for PFM reform moving forward. The expected model should cover asset management, and other GFMIS elements such as Human Resources (HR) and Payroll, Public Investment, and Inventory Management. While payroll constitutes the most significant recurrent costs of the Government, reforms on human resources management are now central in Public Administration Reform in Vietnam. HR and Payroll Management Information System should support staff management, human resource planning and budgeting, meanwhile is essential for the future introduction of accrual accounting. TA should study the scope of HR and Payroll functional contributions to the Government. If the need emerges, this may be followed by preparation of functional requirements definition. While detailed planning is generally a stand-alone function, the accounting, budgeting and reporting requirements may be recorded in both detail and aggregate through the use of functionality available in standard Financial Management Information Systems. When linked to HR systems, performance management in the Public Investment area can be enhanced. A software solution for Inventory Management would provide functions for purchase, distribution, accounting, use and disposal of reserve stocks. There might be further study on whether such solution should be part of, or closely linked with, TABMIS. If the need emerges, there could also be possible technical assistance to study applicable solutions which will enable the recording and management of all government inventories in all physical and financial aspects. COMPONENT II: STRENGTHENING STATE BUDGET AND INVESTMENT PLANNING Sub-component 2(a) ­ Assistance to MOF and MPI with preparation of an MTFF and oversight of MTEF pilot (original sub-component 2(a)) Sub-component 2(b) ­ Assistance with prepration of MTFFs and MTEFs in four pilot sectors and four pilot provinces (original sub-component 2(b)) Sub-component 2(c) ­ Workshops to support establishment of medium-term budget planning (original sub-component 2(c)) Sub-component 2(d) ­ Assistance with development of guidelines for nationwide implementation of MTEF and MTFF (new) From the results of the pilot implementation of MTEF&FF in the last years, there is a need to for continued assistance to study and develop models, templates, and guideline documents in a clear and simple manner which are suitable for implementation in Vietnam, and then draft legal regulations providing guidance on the implementation of these customized MTEF&FF for integration with the annual budget process applying to the whole country. 28 Sub-component 2(e) ­ Assistance with preparation for a budget preparation system (revisions to original sub-component 2(d)) Development of a budget preparation system (BPS) to, among other things, support the implementation of MTEF&FF is within the scope of the Project's current phase. The overall objective of a BPS would be to considerably enhance the capacity for budgeting agencies to prepare, debate, consolidate and submit budget proposals. Such a system would also provide management of budget changes and reporting. Frequent exchanges of budget data between BPS and TABMIS would also enhance funds control, cash management and reporting. According to the original design, the system would be implemented after the completion of TABMIS rollout. Thus the budget preparation system has not yet been implemented due to insufficient conditions ­ TABMIS rollout has not been completed, and MTEF&FF have thus far only been piloted. In the extended period, TABMIS rollout will be completed, and support will be provided for the application of MTEF&FF through the drafting of legal regulations and guidance on implementation. However, the legal framework for budgeting process in the period of 2011-2013 might introduce many changes. It will be more efficient to develop the BPS after these changes are clear. Thus, there will be technical assistance for developing a feasibility study of a budget preparation system. If within the project timeframe, the feasibility study completes and finds the development of the BPS system feasible, then there will be further technical assistance for developing technical requirements for the system. COMPONENT III: STRENGTHENING MANAGEMENT OF PUBLIC DEBT AND OTHER FISCAL RISKS Sub-component 3(a) ­ Technical assistance and capacity building to support strengthening of recording and management of public debt and risk (addition to original sub-component 3(a)) This technical assistance will provide support for the further development of best practice public debt management, including the Long-Term Debt Strategy, development and annual updates of the Medium- Term Debt Management Program, and the development of a the system of risk management measures and thresholds. Support will be provided for the development of business processes in public debt management, in which the rights and obligations of each unit in and out of MOF will be clearly identified, and the division of duties between the Debt Management and External Finance Departments will be elucidated. The technical assistance will include capacity building for officials involved in public debt management, with a focus on capacity building of capital mobilization from the international markets, domestic debt management, on-lending management. The scope of the technical assistance will also include self-assessment on public debt management performance according to DeMPA standards introduced by the World Bank. Technical Assistance will also be provided for developing policies and regulations on risk management and debt monitoring, including market risk (currency and interest rate), funding risk, liquidity risk and credit risk. The technical assistance will also support the development of business processes and a manual on risk management for public debt, as well as training to use the IMF and World Bank MTDS toolkit and other basic risk management systems. Sub-component 3(b) ­ Implementation of system for recording, consolidation and management of public debt, and preparation for future system development (addition to original sub-component 3(b)) 3(b)-1. Completion of DMFAS implementation for domestic debt management and integration of domestic and external debt databases. MOF selected DMFAS version 5.3 developed by UNCTAD for 29 domestic debt management and integration of domestic and external debt databases. Bidding procedures for this software implementation are to be completed. It is scheduled that DMFAS implementation will be started in early January 2011 and complete by end of 2011. 3(b)-2. Technical Assistance for risk management information system development plan. To meet the requirements for public debt management when commercial borrowings will gradually replace ODA loans, more sophisticated and modern debt and risk management information systems will be required. The additional funds will provide technical assistance for the development of debt and risk management information systems. Sub-component 3(c) ­ Technical assistance and capacity building to strengthen monitoring of SOE fiscal risks (addition to original sub-component 3(c)) Technical assistance will also be provided for the assessment and analysis of the existing regulations and templates for SOEs' financial monitoring and management. The technical assistance will also support the development and promulgation of new mechanisms for SOE financial monitoring in accordance with the Law on Enterprises, in order to ensure the timely provision of information to the Government to manage the risk of SOE liabilities. This sub-component will assist the adoption of legal framework and monitoring indicators and strengthen analytical capability for monitoring of SOEs fiscal risks. COMPONENT 4: PROJECT IMPLEMENTATION SUPPORT Sub-component 4(a) ­ Project management consulting support (ongoing) This sub-component includes remuneration and allowances, and capacity building for PMU staff. In addition, it includes advisory services including from international consultants with project and program management and legal expertise, to support MOF and PMU in the management over contracts, contractors and consultants. Sub-component 4(b) ­ Further Project Development (ongoing) This sub-component includes support for the preparation of a PFMRP Phase 2. Technical assistance activities include consultancy, workshops, training, and capacity building to support the PMU in preparing for further PFMR beyond the current phase. Sub-component 4(c) ­ PMU operation and management costs (ongoing) This sub-component includes remuneration and allowances for government officials working for PMU, and office management and operating costs for the PMU. 30 Table 5. Detailed Description of Restructuring Items No Original Design No Proposed Change Reasons for Change Component 1. Strengthening Treasury and Budget Management 1(a) Procurement assistance 1(a) Procurement assistance Unchanged. and Independent Bid and Independent Bid Evaluation Evaluation 1(b) Independent verification 1(b) Technical assistance for Revised. Required TA for and validation (IV&V) TABMIS implementation TABMIS has gone beyond, but not excluding, IV&V, to all aspects of system development, implementation and administration, including on Oracle database and applications and on review of business processes. 1(c) Training and change 1(c) TABMIS development Merged. TABMIS solution management and rollout to all Treasury (former sub-components 1(c) - and Finance Offices at 1(f)) was procured as a single 1(d) Installation and central, provincial and "turn-key" package without configuration of TABMIS district levels; and BA detailed cost breakdown for in Treasury head office, module implementation at each element. During contract MOF, MPI, and one pilot largest ministries and variation order 1, the pilot province central government TABMIS at SUs (former 1(g)) 1(e) Roll out to all Treasury agencies was substituted by the offices in provinces and implementation of BA module districts at 40 central ministries and government agencies including 1(f) Roll-out to Finance MPI. In addition, it is difficult Departments and planning to split regular operation costs departments at provincial and Government's expenses for and district levels the implementation team (1(h)) 1(h) Government TABMIS as MOF and contractor jointly implementation team implement TABMIS. Original division of sub- components with specific associated costs makes it difficult to assess the alignment of actual project accomplishments to corresponding legal provisions. 1(d) BA module rollout to New. Additional BA rollout to selected major supervising about 300 major supervising agencies at central budget units at central budget level is level needed to sustain project impact. 31 No Original Design No Proposed Change Reasons for Change 1(i) Supplementary technical 1(e) Supplementary technical Unchanged title, additional assistance with financial assistance with financial activities. This includes management management envisaged work such as on rationalization and reform rationalization and reform unified Chart of Accounts and operationalization of a Treasury Single Account; and additional work such as preparation for modern cash forecasting and management systems and for establishment of State Accounting General function. 1(g) Pilot implementation in 1(f) Assistance with New. TABMIS rollout to all selected large spending preparation for a TABMIS SUs (about 100,000) was units Portal for access by proven to be not cost-effective, spending units and since it would pose enormous external partners cost and technical challenges, and security concerns. The approach to link SUs with TABMIS was changed from direct access to indirect access through a Portal. The new sub-component aims to develop model, roadmap, technical requirements and bidding document for such portal. 1(g) Assistance with New. The expected model and development of model and roadmap will cover asset roadmap for a GFMIS management, and possibly other aspects of a GFMIS including human resources and payroll, public investment, and inventory management. Component 2. Strengthening State Budget and Investment Planning 2(a) Assistance to MOF and 2(a) Assistance to MOF and Unchanged. MPI with preparation of MPI with preparation of an MTFF and oversight of an MTFF and oversight of MTEF pilot MTEF pilot 2(b) Assistance with prepration 2(b) Assistance with prepration Unchanged. of MTEFs in four pilot of MTFFs and MTEFs in sectors and four pilot four pilot sectors and four provinces pilot provinces 2(c) Workshops to support 2(c) Workshops to support Unchanged. establishment of medium- establishment of medium- term budget planning term budget planning 32 No Original Design No Proposed Change Reasons for Change 2(d) Assistance with New. Additional TA is needed development of guidelines to prepare for the for nationwide institutionalization of the implementation of MTEF frameworks, and their and MTFF integration into the annual budget process. 2(d) Design and 2(e) Assistance with Revised. The scope of this sub- implementation of a preparation for a budget component is reduced to reflect budget preparation system preparation system possible accomplishments by (BPS) project end in legal agreement. BPS should be designed when MTEF & MTFF guidelines and critical changes to the budget law are finalized. Both elements are expected to only be shaped by 2012; therefore it will not be possible to implement BPS by Feb 2013. This sub-component includes development of feasibility study and technical requirements for the BPS in line with the conclusion of the feasibility study. Component 3. Strengthening Management of Public Debt and other Fiscal Risks 3(a) TA and capacity building 3(a) Technical assistance and Revised. Activities cover not to support strengthening of capacity building to only domestic debt, but overall recoding and management support strengthening of public debt. Additional TA to of domestic debt recording and develop debt management and management of public risk management frameworks debt and risk and instruments, and continue to enhance capacity for public debt management. 3(b) Procurement of systems 3(b) Implementation of system Revised. This sub-component for recording, for recording, includes DMFAS consolidation and consolidation and implementation as originally management of public management of public planned. In addition, it will debt debt, and preparation for also include a strategy to future system development develop debt and risk management information systems. 3(c) Monitoring of SOEs' 3(c) Technical assistance and Updated. Continued assistance Fiscal Risks capacity building to to develop regulation, strengthen monitoring of monitoring indicators, and SOE Fiscal risks capacity to assess SOE fiscal risks. 33 Annex 4. Revised Estimate of Project Costs and Reallocation of Funds 4(a). Detailed Breakdown of Additional Financing and Total Undisbursement Content of Work Budget Original AF Total Undisbursed Project 71,461 17,000 96,130 43,508 I. Component I 61,422 14,942 84,547 39,686 1(a) ­ Procurement assistance and Independent Bid Evaluation 200 0 346 0 1(b) ­Technical Assistance for TABMIS implementation 2,000 950 3,725 1,538 1(b)-1. TA for Project Implementation 2,000 200 2,470 348 1(b)-2. TA for Oracle Database and Applications 0 430 875 810 1(b)-3. TA for Functional Expertise 0 120 180 180 1(b)-4. TA for developing feasibility study and technical requirements for system operation and administration services 0 200 200 200 1(c) ­ TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government agencies 53,525 10,822 76,226 34,863 1(c)-1. TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government: 53,525 3,439 63,226 21,863 1(c)-2. Additional hardware 0 3,857 6,000 6,000 1(c)-3. Additional software license 0 1,526 5,000 5,000 1(c)-4. Additional training (end-users, technical, and functional training): 0 2,000 2,000 2,000 1(d) ­ BA module rollout to selected major supervising agencies at central budget level 0 1,650 1,650 1,650 + TA for optimization of communication lines 0 150 150 150 + BA Module roll-out 0 1,500 1,500 1,500 1(e) ­ Supplementary technical assistance with financial management rationalization and reform 1,000 570 1,600 635 1(e)-1. Assistance with the chart of accounts and business processes for TABMIS 1,000 0 965 0 1(e)-2. Assistance with preparation for modern cash forecasting and management systems and establishment of Treasury Single Account: 0 170 235 235 1(e)-3. Consolidation of State Accounting information and preparation for establishment and operation of State Accounting General function 0 200 200 200 1(e)-4. Development of regulation to apply IPSAS 0 200 200 200 1(f) ­ Assistance with preparation for a TABMIS Portal for access by spending units and external partners 0 500 500 500 1(g) ­ Assistance with development of model and roadmap for a GFMIS 0 450 500 500 1(g)-1. TA for feasibility of public asset management rationalization 0 150 200 200 34 Content of Work Budget Original AF Total Undisbursed 1(g)-2. TA for studying GFMIS model and roadmap 0 300 300 300 Provision for Component I 4,697 0 0 0 II. Component II 4,180 500 3,871 750 2(a) ­ Assistance to MOF and MPI with preparation of an MTFF and oversight of MTEF pilot 400 0 735 0 2(b) ­ Assistance with prepration of MTFFs and MTEFs in four pilot sectors and four pilot provinces 2,200 0 1,908 0 2(c) ­ Workshops to support establishment of medium-term budget planning 200 0 478 0 2(d) ­ Assistance with development of guidelines for nationwide implementation of MTEF and MTFF 0 500 500 500 2(e) ­ Assistance with preparation for a budget preparation system 1,000 0 250 250 Provision for Component II 380 0 0 0 III. Component III 2,883 705 3,385 1,758 3(a) ­ Technical assistance and capacity building to support strengthening of recording and management of public debt and risk 1,065 65 2,010 809 3(b) ­ Implementation of system for recording, consolidation and management of public debt, and preparation for future system development 1,325 250 735 449 + Implementation of debt management information system DMFAS 3,125 0 485 199 + Building debt and risk management information system development 0 250 250 250 3(c) ­ Technical assistance and capacity building to strengthen monitoring of SOE fiscal risks 230 390 640 500 Provision for Component III 263 0 0 0 IV. Component IV 2,976 853 4,331 1,315 4(a) ­ Project management consulting support 1,289 653 2,869 855 4(b) ­ Further Project Development 500 200 550 299 4(c) ­ PMU operation and management costs 915 0 912 161 Provision for Component IV 272 0 V. Provision for the Project as a whole 0 0 Total 71,461 17,000 96,130 43,508 35 4(b). Extension Phase Estimated Project Costs by Funding Source Budget Content of Work Count. Loan Grant Total Fund Project 36,598 1,088 5,823 43,508 I. Component I 33,266 703 5,717 39,686 1(a) ­ Procurement assistance and Independent Bid Evaluation 0 0 0 0 1(b) ­Technical Assistance for TABMIS implementation 950 588 0 1,538 1(b)-1. TA for Project Implementation 200 148 0 348 1(b)-2. TA for Oracle Database and Applications 430 380 0 810 1(b)-3. TA for Functional Expertise 120 60 0 180 1(b)-4. TA for developing feasibility study and technical requirements for system operation and administration services 200 0 0 200 1(c) ­ TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government agencies 29,406 0 5,457 34,863 1(c)-1. TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government: 17,056 0 4,807 21,863 1(c)-2. Additional hardware 5,700 0 300 6,000 1(c)-3. Additional software license 4,750 0 250 5,000 1(c)-4. Additional training (end-users, technical, and functional training): 1,900 0 100 2,000 1(d) ­ BA module rollout to selected major supervising agencies at central budget level 1,390 0 260 1,650 + TA for optimization of communication lines 150 0 0 150 + BA Module roll-out 1,240 0 260 1,500 1(e) ­ Supplementary technical assistance with financial management rationalization and reform 570 65 0 635 1(e)-1. Assistance with the chart of accounts and business processes for TABMIS 0 0 0 0 1(e)-2. Assistance with preparation for modern cash forecasting and management systems and establishment of Treasury Single Account: 170 65 0 235 1(e)-3. Consolidation of State Accounting information and preparation for establishment and operation of State Accounting General function 200 0 0 200 1(e)-4. Development of regulation to apply IPSAS 200 0 0 200 1(f) ­ Assistance with preparation for a TABMIS Portal for access by spending units and external partners 500 0 0 500 1(g) ­ Assistance with development of model and roadmap for a GFMIS 450 50 0 500 1(g)-1. TA for feasibility of public asset management rationalization 150 50 0 200 1(g)-2. TA for studying GFMIS model and roadmap 300 0 0 300 Provision for Component I 0 0 0 0 36 Budget Content of Work Count. Loan Grant Total Fund II. Component II 750 0 0 750 2(a) ­ Assistance to MOF and MPI with preparation of an MTFF and oversight of MTEF pilot 0 0 0 0 2(b) ­ Assistance with prepration of MTFFs and MTEFs in four pilot sectors and four pilot provinces 0 0 0 0 2(c) ­ Workshops to support establishment of medium-term budget planning 0 0 0 0 2(d) ­ Assistance with development of guidelines for nationwide implementation of MTEF and MTFF 500 0 0 500 2(e) ­ Assistance with preparation for a budget preparation system 250 0 0 250 Provision for Component II 0 0 0 0 III. Component III 1,655 84 19 1,758 3(a) ­ Technical assistance and capacity building to support strengthening of recording and management of public debt and risk 775 34 0 809 3(b) ­ Implementation of system for recording, consolidation and management of public debt, and preparation for future system development 430 0 19 449 + Implementation of debt management information system DMFAS 180 0 19 199 + Building debt and risk management information system development 250 0 0 250 3(c) ­ Technical assistance and capacity building to strengthen monitoring of SOE fiscal risks 450 50 0 500 Provision for Component III 0 0 0 0 IV. Component IV 927 301 87 1,315 4(a) ­ Project management consulting support 653 202 0 855 4(b) ­ Further Project Development 200 99 0 299 4(c) ­ PMU operation and management costs 74 0 87 161 Provision for Component IV 0 0 0 0 V. Provision for the Project as a whole 0 0 0 0 Total 36,598 1,088 5,823 43,508 37 4(c). Reallocation of Funds and Changed Percentage of Financing Category Allocation (expressed in SDR) % of Financing Original Revised Additional Original Revised Total Original Revised Credit Original Credit (1) Goods other (1) Goods other 100,000 130,000 0 130,000 100% of 95% than than foreign financial financial expenditures; management management 100% of local information information expenditures systems systems (ex-factory cost); 75% of local expenditures for other items procured locally. (2) Goods for (2) Goods for 30,880,000 32,380,000 5,835,000 38,215,000 95% 95% the financial the financial management management information information systems systems (3) Incremental (3) Incremental Operating Operating Costs Costs (*) (a) for TABMIS (a) for TABMIS 5,740,000 6,600,000 280,000 6,880,000 80% 95% (b) for PMU (b) for PMU 70,000 130,000 0 130,000 70% 100% (4) Unallocated (4) Consultants' 3,110,000 660,000 3,085,000 3,745,000 100% Services/ Training/ Workshops (**) TOTAL 39,900,000 39,900,000 9,200,000 49,100,000 * The term "Incremental Operating Costs" means the reasonable costs of incremental expenditures incurred by the Recipient in the implementation of the Project (which expenditures would not have been incurred absent the Project), including (a) in regard to the TABMIS, the costs of hardware and software maintenance and the costs of connectivity; and costs related to training other than those for training services provided by TABMIS contractor, and (b) in regard to the PMU, the costs of travel, communications and utilities, and office consumables; but excluding salaries; and ** The term "Training and Workshops" means the reasonable costs of expenditure incurred by the Recipient in facilitating and conducting training and workshop activities under the Project including costs of material, equipment and venue rental, and per diem and transportation for those attending and training or the workshop, and study tours. 38 Annex 5. Updated Implementation and Procurement Plans 2011 2012 2013 Component/activities 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 I. Component I 1(a) ­ Procurement assistance and Independent Bid Evaluation 1(b) ­Technical Assistance for TABMIS implementation 1(b)-1. TA for Project Implementation Local consultant International consultant Workshop Training and study tour 1(b)-2. TA for Oracle data base and application Local consultant International consultant Workshop Training and study tour 1(b)-3. TA for Funtional Local consultant International consultant Workshop Training and study tour 1(b)-4. TA for developing feasibility study and technical requirements for system operation and administration services Local consultant International consultant Workshop Training and study tour 39 2011 2012 2013 Component/activities 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 1(c) ­ TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government agencies 1(c)-1. TABMIS development and rollout to all Treasury and Finance Offices at central, provincial and district levels; and BA module implementation at largest ministries and central government: 1(c)-2. Additional hardware 1(c)-3. Additional software license 1(c)-4. Additional training (end-users, technical, and functional training): 1(d) ­ BA module rollout to selected major supervising agencies at central budget level + TA for optimization of communication lines Local consultant International consultant Workshop Training and study tour + BA Module roll-out 1(e) ­ Supplementary technical assistance with financial management rationalization and reform 1(e)-1. Assistance with the chart of accounts and business processes for TABMIS 1(e)-2. Assistance with preparation for modern cash forecasting and management systems and establishment of TSA Local consultant International consultant Workshop Training and study tour 40 2011 2012 2013 Component/activities 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 1(e)-3. Consolidation of State Accounting information and preparation for establishment and operation of SAG function Local consultant International consultant Workshop Training and study tour 1(e)-4. Development of regulation to apply IPSAS Local consultant International consultant Workshop Training and study tour 1(f) ­ Assistance with preparation for a TABMIS Portal for access by spending units and external partners Local consultant International consultant Workshop Training and study tour 1(g) ­ Assistance with development of model and roadmap for a GFMIS 1(g)-1. TA for feasibility of public asset management rationalization Local consultant International consultant Workshop Training and study tour 1(g)-2. TA for GFMIS model and roadmap Local consultant International consultant Workshop Training and study tour 41 2011 2012 2013 Component/activities 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 II. Component II 2(a) ­ Assistance to MOF and MPI with preparation of an MTFF and oversight of MTEF pilot 2(b) ­ Assistance with prepration of MTFFs and MTEFs in four pilot sectors and four pilot provinces 2(c) ­ Workshops to support establishment of medium-term budget planning 2(d) ­ Assistance with development of guidelines for nationwide implementation of MTEF and MTFF Local consultant International consultant Workshop Training and study tour 2(e) ­ Assistance with preparation for a budget preparation system Local consultant International consultant Workshop Training and study tour Provision for Component II III. Component III 3(a) ­ Technical assistance and capacity building to support strengthening of recording and management of public debt and risk Local consultant International consultant Workshop Training and study tour 3(b) ­ Implementation of system for recording, consolidation and management of public debt, and preparation for future system development 42 2011 2012 2013 Component/activities 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 + Implementation of debt management information system DMFAS + Building debt and risk management information system development plan Local consultant International consultant Workshop Training and study tour 3(c) ­ Technical assistance and capacity building to strengthen monitoring of SOE fiscal risks Local consultant International consultant Workshop Training and study tour Provision for Component III IV. Component IV 4(a) ­ Project management consulting support Local consultant International consultant Workshop Training and study tour 4(b) ­ Further Project Development Local consultant International consultant Workshop Training and study tour 4(c) ­ PMU operation and management costs Office equipment Operation expenditure Procurement time Implementation time 43 Updated Procurement Plan Cost estimated End Comp. WB Proc. Proc Proc No ACTIVITIES Type Contract Notes ref. review TOTAL DFID IDA Gov't Method Start End Impl COMPONENT I 39,686 703 33,266 5,717 1 TABMIS Contract, 1(c)-1 IS 21,863 17,056 4,807 10/2011 Under impl implementation costs associated with the Contract (logistics for training, equipment, data entry rooms) 2 TABMIS additional hardware 1(c)-2 Prior IS 6,000 5,700 300 CO/ ICB 3/2011 5/2011 10/2011 3 TABMIS additional licenses 1(c)-3 Prior IS 5,000 4,750 250 CO/ ICB 3/2011 5/2011 12/2011 & associated implementation services 4 Additional training (users and 1(c)-4 Prior for TWS 2,000 1,900 100 QCBS/ 12/2012 To be technicians) QCBS CQS/ divided SOEs into smaller contract 5 BA rollout 5.1 BA implementation 1(d)-2 Prior IS 1,305 1,240 65 CO/ ICB 6/2011 10/2011 12/2012 5.2 BA Government 1(d)-2 N/A IS 195 195 SOEs 12/2012 implementation team 6 Technical Assistance 6.1 International consultant for 1(b)-1 Prior CS 120 60 60 IC 12/2010 6/2011 12/2012 Under impl project implementation support 6.2 Local consultant for project 1(b)-1 Post CS 58 28 30 IC 3/2011 6/2011 12/2012 implementation support 6.3 International consultants for 1(b)-2 Post CS 380 80 300 IC 12/2010 12/2011 12/2012 Prior Oracle database, Oracle review in applications, version case of upgrading, and developing each technical requirements for contract system operation and admin equivalent services or exceed $50,000. Several contracts are under impl 44 Cost estimated End Comp. WB Proc. Proc Proc No ACTIVITIES Type Contract Notes ref. review TOTAL DFID IDA Gov't Method Start End Impl 6.4 Local consultant for Oracle 1(b)-2, Prior CS 170 20 150 IC/ CQS 3/2011 5/2011 12/2012 database, Oracle 1(b)-4 applications, version upgrading, developing technical requirements for system operation and admin services 6.5 International consultant for 1(b)-3 Post CS 50 50 IC 3/2011 5/2011 12/2012 Prior Functional Expertise review in 6.6 Local consultants for 1(b)-3 Post CS 60 30 30 IC 3/2011 5/2011 12/2012 case of Functional Expertise each 6.7 International consultant for 1(d)-1 Post CS 50 50 IC 6/2011 9/2011 10/2012 contract connectivity optimization for exceed BA implementation $50,000 6.8 Local consultant for 1(d)-1 Post CS 50 50 IC 6/2011 9/2011 10/2012 connectivity optimization for BA implementation 6.9 International consultant for 1(e)-2 Prior CS 60 60 IC 3/2011 5/2011 8/2012 operation of cash flow management (CM) 6.10 Local consultant for 1(e)-2 Prior CS 60 30 30 IC 3/2011 5/2011 8/2012 operation of cash flow management (CM) 6.11 International consultant for 1(e)-3, Prior CS 80 80 IC 9/2011 12/2011 12/2012 State accounting 1(e)-4 information consolidation and development of operation guidelines for Public Accountant Standards 6.12 Local consultant for State 1(e)-3, Post CS 80 80 CQS 9/2011 12/2011 12/2012 accounting information 1(e)-4 consolidation and development of operation guidelines for Public Accountant Standards 6.13 Consultancy service for 1(f) Prior CS 250 250 QCBS 5/2011 10/2011 12/2012 develop model, roadmap, tech requirements and bid document for TABMIS Portal 45 Cost estimated End Comp. WB Proc. Proc Proc No ACTIVITIES Type Contract Notes ref. review TOTAL DFID IDA Gov't Method Start End Impl 6.14 International consultants for 1(g)-1, Post CS 120 120 IC/ CQS 5/2011 9/2011 12/2012 Prior studying methods on public 1(g)-2 review for asset (PA) financial IC database integration, contracts studying model and exceed roadmap towards FMIS $50,000 6.15 Local consultants for 1(g)-1, Post CS 110 110 IC/ CQS 5/2011 9/2011 12/2012 Prior studying methods on public 1(g)-2 review for asset (PA) financial IC database integration, contracts studying model and exceed roadmap towards FMIS $50,000 6.16 All Trainings/ Workshops/ 1(a) to TWS 1,625 455 1,170 SOEs 12/2012 Study tours 1(g) COMPONENT II 750 0 750 0 1 International consultant for 2(d) Prior CS 180 180 SSS 9/2011 11/2011 12/2012 developing guidelines documents on implementation of MTEF&FFs 2 Local consultant for 2(d) Prior CS 90 90 SSS 9/2011 11/2011 12/2012 developing guidelines documents on implementation of MTEF&FFs 3 Consultancy for developing 2(e) Post CS 160 160 CQS 7/2011 11/2011 12/2012 feasibility study and technical requirements of a budget preparation system 4 All Trainings/ Workshops/ 2(d); TWS 320 320 SOEs 2/2013 Study tours 2(e) COMPONENT III 1,758 84 1,655 19 1 International consultant for 3(a) Prior CS 214 34 180 IC/ SSS 3/2011 5/2011 12/2012 capacity building for management of public debt and risk management of public debt 2 Local consultant for capacity 3(a) Prior CS 160 160 IC/ SSS 3/2011 5/2011 12/2012 building for management of public debt and risk management of public debt 46 Cost estimated End Comp. WB Proc. Proc Proc No ACTIVITIES Type Contract Notes ref. review TOTAL DFID IDA Gov't Method Start End Impl 3 International consultant for 3(b) Prior CS 70 70 IC 6/2011 9/2011 12/2012 debt and risk management information system development plan 4 Local consultants for debt and 3(b) Prior CS 70 70 IC 6/2011 9/2011 12/2012 risk management information system development plan 5 International consultant for 3(c) Prior CS 150 150 IC/ SSS 3/2011 5/2011 9/2012 capacity building financial risk monitoring of SOEs 6 Local consultants for capacity 3(c) Prior CS 80 20 60 IC/ SSS 3/2011 5/2011 9/2012 building financial risk monitoring of SOEs 7 All Trainings/ Workshops/ 3(a) to TWS 815 30 785 SOEs 2/2013 Study tours 3(c) 8 DMFAS implementation 3(b) IS 199 180 19 DC 12/2011 Under impl COMPONENT IV 1,315 301 927 87 1 Project management support and consulting 1.1 PMU consulting staffs 4(a) Prior CS 550 172 378 Ext 2/2011 2/2011 2/2013 Extension of current contract 1.2 Consultants (legal and 4(a) Prior CS 220 220 IC 12/2010 2/2012 2/2013 Contract contract management) Mgment Consultant are under impl 1.3 Project Financial Audit Post CS 30 30 CQS 2/2011 4/2011 6/2013 2 Development of next phase 2.1 International consultant 4(b) Prior CS 89 89 SSS/ IC 2/2012 3/2012 12/2012 2.2 Local Consultant 4(b) Prior CS 60 49 11 SSS/ IC 2/2012 3/2012 12/2012 3 All Trainings/ Workshops/ 4(a); TWS 205 80 125 TWS 12/2012 Study tours 4(b) 4 Office equipments 4(c) Post G 44 44 NS 3/2011 5/2011 6/2011 5 PMU's operation costs 4(c) OC 30 30 SOEs 6/2013 6 Remuneration and allowances 4(c) OC 87 87 SOEs 6/2013 for PMU's Govt' staffs TOTAL 43,509 1,088 36,598 5,823 47 Cost estimated End Comp. WB Proc. Proc Proc No ACTIVITIES Type Contract Notes ref. review TOTAL DFID IDA Gov't Method Start End Impl LEGEND: CS Consulting Services CO Change Order G Goods CQS Consultant Qualification Selection IS Information System Ext Extension of current contract N/A Not Applicable IC Individual Consultant OC Operational Costs NS National Shopping TWS Training/ Workshop/ Study Tour QCBS Quality & Cost Based Selection SOEs Statement of Expenditures SSS Single Source Selection DC Direct Contracting 48 IBRD 33511R1 102°E 104°E To 106°E 108°E 110°E To Babao Kunming To VIETNA M Kaiyuan To Tiandong CHINA Ha Giang Cao Bang 4 PROVINCE CAPITALS 5 To Lao Cai Re Nanning Lai Chau Town 1 d 9 NATIONAL CAPITAL 3 Bac Can 8 22°N 22°N To RIVERS Tuyen Quang 10 Lang Son Hepu Bla 7 Thai 2 c k Yen Bai Nguyen MAIN ROADS 13 Dien Son La Viet Tri 12 Vinh Yen 14 RAILROADS Bien Phu 11 Bac Giang 15 6 Bac Ninh To HANOI 17 Hai Duong Ha Long PROVINCE BOUNDARIES Muang Xai Hoa Binh 16 18 19 Hai Phong 21 Hung Yen 20 INTERNATIONAL BOUNDARIES Ha Nam 22 23 Thai Binh Nam Dinh Ninh Binh 25 Ma 24 20°N 26 20°N To PROVINCES: Luang 1 Lai Chau 32 Da Nang LAO Prabang Thanh Hoa 2 3 Dien Bien Lao Cai 33 34 Quang Nam Quang Ngai P EOPLE'S PEOPLE'S 27 Gulf 4 Ha Giang 35 Kon Tum D EM . REP. of Hainan I. (China) 5 Cao Bang 36 Gia Lai A Vinh Tonk in 6 Son La 37 Binh Dinh 7 Yen Bai 38 Phu Yen n Ha Tinh n 8 Tu Yen Quang 39 Dac Lac 28 a a a 9 Bac Can 40 Dac Nong 18°N 18 To 18°N Khammouan m m m 10 Lang Son 41 Khanh Hoa 11 Phu Tho 42 Binh Phuoc 12 Vinh Phuc 43 Lam Dong Dong Hoi C 29 13 Thai Nguyen 44 Ninh Thuan o 14 Bac Giang 45 Tay Ninh r d d d 15 Quang Ninh 46 Binh Duong Dong Ha To il 16 Ha Noi 47 Dong Nai Savannakhet 30 17 Bac Ninh 48 Binh Thuan THA ILA ND Hue lll e e e 18 Hung Yen 49 T.P. Ho Chi Minh r 19 Hai Duong 50 Ba Ria-Vung Tau 31 32 Da Nang a a a 20 Hai Phong 51 Long An 16°N 16°N 21 Hoa Binh 52 Tien Giang 22 Ha Nam 53 Dong Thap Tam Ky 33 23 Thai Binh 54 Ben Tre 24 Ninh Binh 55 An Giang Quang Ngai 25 Nam Dinh 56 Vinh Long 34 26 Thanh Hoa 57 Tra Vinh Ngoc Linh (3143 m) 27 Nghe An 58 Kien Giang 35 Kon Tum 28 Ha Tinh 59 Can Tho 29 Quang Binh 60 Hau Giang 37 30 Quang Tri 61 Soc Trang 14°N Cent ral Central 14°N Pleiku 31 Thua Thien Hue 62 Bac Lieu 36 Quy Nhon 63 Ca Mau Highlands 38 Tuy Hoa CAMBODIA 39 Buon Ma Thuot 41 40 Nha Trang Gia Nghia 12°N To Da Lat 12°N Kampong Cham 42 To Dong Xoai 43 44 Kampong Chhnang Phan Rang- 45 Thap Cham Mekong Tay Ninh 47 Thu Dau46 Mot 48 Bien Hoa Gu l f 51 49 Ho Chi Minh City Phan Thiet 53 of 55 Cao Lanh Tan An 50 Th a i l a n d Long Xuyen 52 My Tho Vung Tau Phu Vinh Long Ben Tre VIETNAM Quoc 59 56 10°N Rach Gia Can Tho 54 10°N lta 58 60 Tra Vinh Vi Thanh 57 De This map was produced by 61 Soc Trang the Map Design Unit of The g World Bank. The boundaries, 62 n ko Bac Lieu colors, denominations and Me Ca Mau any other information shown 0 50 100 150 200 Kilometers on this map do not imply, on 63 the part of The World Bank Group, any judgment on the legal status of any territory, 0 50 100 150 Miles or any endorsement or acceptance of such boundaries. 104°E 106°E 108°E JANUARY 2010