Document of The World Bank Report No: ICR2092 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-47290 and IBRD-82240) ON A LOAN IN THE AMOUNT OF USD 42 MILLION TO UKRAINE FOR DEVELOPMENT OF THE STATE STATISTICS SYSTEM FOR MONITORING THE SOCIAL AND ECONOMIC TRANSFORMATION PROJECT May 20, 2014 Poverty Reduction and Economic Management Europe and Central Asia CURRENCY EQUIVALENTS Exchange Rate Effective: May 20, 2014 Currency Unit = Ukrainian Hryvnia (UAH) UAH 1.00 = US$ 0.084 US$ 1.00 = 11.95 UAH FISCAL YEAR ABBREVIATIONS AND ACRONYMS AF Additional Financing CIS Commonwealth of Independent States CPS Country Partnership Strategy CQ Consultant Qualification CY Calendar Year DC Direct Contracting DEVSTAT Development of the State Statistics System for Monitoring the Social and Economic Transformation Project EU European Union FM Financial Management FMR Financial Monitoring Report FY Fiscal Year GDP Gross Domestic Product GoU Government of Ukraine HQ Headquarters IAWG Inter-agency Working Group IBRD International Bank for Reconstruction and Development IC Individual Consultants ICB International Competitive Bidding ICT Information and Communications Technology IDA International Development Association IFC International Finance Corporation IMF International Monetary Fund IFR Interim Financial Report IO Intermediate Outcome ISDPS Integrated Statistical Data Processing System ISR Implementation Status and Results Report IT Information Technology LCS Least Cost Selection MOEDT Ministry of Economic Development and Trade MOF Ministry of Finance NBU National Bank of Ukraine NSS National Statistical System ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PDO Project Development Objective PIU Project Implementation Unit POM Project Operational Manual PP Procurement Plan RFP Request for Proposals SIL Specific Investment Loan SDDS Special Data Dissemination Standards SSSU State Statistical Service of Ukraine STATCAP Statistical Capacity Building Program STU State Treasury of Ukraine UAH Ukraine Hryvnia USD United States Dollar Vice President: Laura Tuck Country Director: Qimiao Fan Sector Manager: Carolina Sanchez-Paramo Project Team Leader: Svetlana Budagovskaya ICR Team Leader: Mustafa Dinc UKRAINE Development of the State Statistics System for Monitoring the Social and Economic Transformation Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph Main Report 1. Project Context, Development Objectives and Design ............................................... 1 1.1 Context at Appraisal ............................................................................................. 1 1.2 Original Project Development Objectives (PDO) and Key Indicators ................. 3 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification.............................................................................................. 4 1.4 Main Beneficiaries, ............................................................................................... 4 1.5 Original Components ............................................................................................ 4 1.6 Revised Components ............................................................................................ 5 1.7 Other significant changes ...................................................................................... 5 2. Key Factors Affecting Implementation and Outcomes .............................................. 5 2.1 Project Preparation, Design and Quality at Entry ................................................. 5 2.2 Implementation ..................................................................................................... 6 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization ...... 7 2.4 Safeguard and Fiduciary Compliance ................................................................... 8 2.5 Post-completion Operation/Next Phase ................................................................ 9 3. Assessment of Outcomes ............................................................................................ 9 3.1 Relevance of Objectives, Design and Implementation ......................................... 9 3.2 Achievement of Project Development Objectives ................................................ 9 3.3 Efficiency ............................................................................................................ 10 3.4 Justification of Overall Outcome Rating ............................................................ 11 3.5 Overarching Themes, Other Outcomes and Impacts .......................................... 11 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops ... 12 4. Assessment of Risk to Development Outcome......................................................... 13 5. Assessment of Bank and Borrower Performance ..................................................... 14 5.1 Bank Performance ............................................................................................... 14 5.2 Borrower Performance ........................................................................................ 15 6. Lessons Learned ....................................................................................................... 16 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 17 Annex 1. Project Costs and Financing .......................................................................... 18 (a) Project Cost by Component (in USD Million equivalent) .................................. 18 (b) Financing ............................................................................................................. 19 Annex 2. Outputs by Component ................................................................................. 20 Annex 3. Economic and Financial Analysis ................................................................. 50 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 51 (a) Task Team members............................................................................................ 51 (b) Staff Time and Cost............................................................................................. 52 Annex 5. Beneficiary Survey Results ........................................................................... 53 Annex 6. Stakeholder Workshop Report and Results................................................... 57 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 58 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders ...................... 65 Annex 9. List of Supporting Documents ...................................................................... 66 A. Basic Information Development of State Statistics System for Country: Ukraine Project Name: Monitoring Social & Economic Transformation Project Project ID: P076338 L/C/TF Number(s): IBRD-47290 ICR Date: 12/04/2013 ICR Type: Core ICR Lending Instrument: SIL Borrower: UKRAINE Original Total USD 32.00M Disbursed Amount: USD 41.42 M Commitment: Revised Amount: USD 42.00M Environmental Category: C Implementing Agencies: State Statistics Service of Ukraine (SSSU) Co-financiers and Other External Partners: Government of Ukraine B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 09/13/2001 Effectiveness: 06/15/2005 06/15/2005 11/24/2010 Appraisal: 06/09/2003 Restructuring(s): 11/20/2012 Approval: 03/25/2004 Mid-term Review: 12/01/2006 11/10/2008 Closing: 12/31/2009 12/31/2013 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No N/A at any time (Yes/No): (QEA): Problem Project at any Quality of Yes Satisfactory time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 100 100 Theme Code (as % of total Bank financing) Economic statistics, modeling and forecasting 50 50 Other economic management 25 25 Poverty strategy, analysis and monitoring 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Laura Tuck Shigeo Katsu Country Director: Qimiao Fan Luca Barbone Sector Manager: Carolina Sanchez Deborah L. Wetzel Project Team Leader: Svetlana Budagovskaya Neil James Fantom ICR Team Leader: Mustafa Dinc ICR Primary Author: Mustafa Dinc F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective of the Project is to build a sustainable state statistical system which efficiently provides timely and accurate data for policy evaluation and decision making. The Project will support the implementation of a broad-based poverty reduction strategy to attain job-creating, sustainable economic growth in Ukraine by making available a steady supply of trustworthy and readily available social and economic statistics needed for policy making and monitoring purposes. Revised Project Development Objectives (as approved by original approving authority) The Loan Agreement was amended with a new PDO that is formulated as follows. "The objective of the Project is to build a sustainable state statistical system which efficiently provides timely and accurate data for policy evaluation and decision making". By introducing this change, the PDO in the Loan Agreement has been aligned with what was stated in the original PAD. However, this change does not reflect any substantive modifications in relation to the previous PDO stated in the Loan Agreement for the original project. (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Statistical capacity of the state statistical system according to "PARIS-21" Indicator 1 : methodology Value quantitative or 2.9 3.3 3.5 3.5 Qualitative) Date achieved 12/31/2006 11/24/2010 11/20/2012 12/31/2013 Comments (incl. % achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years Improved efficiency of statistical system by re-allocation of function between central and Indicator 1 : local statistical offices through piloting of two tier organizational model across the country. Value (quantitative No Yes Yes Yes or Qualitative) Date achieved 12/31/2005 11/24/2010 11/20/2012 12/31/2013 Comments (incl. % achievement) Reporting and processing burden diminished: number of statistical forms decreased by Indicator 2 : 12%. Value (quantitative 4.61% 33.18% 35.48% 34.10% or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Time need to fill in the structural business survey form decreased from 9.6 hours to 8.4 Indicator 3 : hours. Value 9.1 8.5 8.4 8.0 (quantitative or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 4 : Statistical business register established, fully operative and regularly updated. Value (quantitative 2.7 3.3 3.4 3.4 or Qualitative) Date achieved 12/31/2006 11/24/2010 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 5 : Automated statistical classification system compliant with EU standards introduced. Value (quantitative 2.8 3.3 3.4 3.4 or Qualitative) Date achieved 12/31/2006 11/24/2010 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 6 : Achieved full compliance with the international statistical standards. Value (quantitative 2.8 3.5 3.5 3.6 or Qualitative) Date achieved 12/31/2006 11/24/2010 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 7 : Increase of rate of response in basic enterprise surveys from 70% to 80%. Value Not less than (quantitative 72% Not less than 80% Not less than 80% 80% or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Reduce the number of processed reports by 70% as a result of small enterprises sample Indicator 8 : survey. Value (quantitative 0% 80% 80% 81% or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 9 : Upgraded short- and medium- forecasting models are introduced and used for analysis. Value (quantitative No Yes Yes Yes or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 10 : Websites created and available for users in all regional offices. Value (quantitative 26 27 27 27 or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 11 : Increased implementation of surveys using electronic data collection methods. Value (quantitative 0% 79% 85% 85% or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Number of staff at the central and local level that received certified training in core Indicator 12 : statistical software products (SPSS&SYBASE). Value (quantitative 0 292 892 892 or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Integrated system for statistical data processing managed by meta data is developed and Indicator 13 : rolled out. Value Developed and rolled (quantitative No Developed Rolled out out or Qualitative) Date achieved 12/31/2005 06/15/2005 11/20/2012 12/31/2013 Comments (incl. % achievement) Indicator 14 : Number of surveys transferred from census to sample based is increased. Value (quantitative 14 20 N/A 19 or Qualitative) Date achieved 11/20/2012 11/20/2012 12/03/2013 12/31/2013 Comments (incl. % achievement) Technical adequacy of regional state statistics bodies to the requirements of ISDPS Indicator 15 : functioning. Value (quantitative 41% 92% N/A 100% or Qualitative) Date achieved 11/20/2012 11/20/2012 12/03/2013 12/31/2013 Comments (incl. % achievement) Number of indicators obtained from household sample surveys on economic activity and Indicator 16 : agricultural activity that are given to users by gender breakdown is increased. Value (quantitative N/A 104 N/A 106 or Qualitative) Date achieved 12/31/2005 11/20/2012 12/03/2013 12/31/2013 Comments (incl. % achievement) G. Ratings of Project Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 06/23/2004 Satisfactory Satisfactory 0.00 2 11/11/2004 Satisfactory Satisfactory 0.00 3 06/29/2005 Moderately Satisfactory Moderately Unsatisfactory 0.00 4 12/22/2005 Moderately Satisfactory Moderately Unsatisfactory 0.00 5 05/31/2006 Moderately Satisfactory Moderately Satisfactory 2.15 6 09/16/2006 Moderately Satisfactory Moderately Satisfactory 2.15 7 07/16/2007 Moderately Satisfactory Moderately Satisfactory 6.22 8 03/04/2008 Satisfactory Satisfactory 12.61 9 09/05/2008 Satisfactory Satisfactory 14.07 10 01/12/2009 Moderately Satisfactory Moderately Satisfactory 16.21 11 08/18/2009 Moderately Satisfactory Satisfactory 17.18 12 05/07/2010 Moderately Satisfactory Moderately Satisfactory 20.81 13 02/15/2011 Moderately Satisfactory Satisfactory 25.35 14 12/10/2011 Satisfactory Satisfactory 30.47 15 06/26/2012 Satisfactory Satisfactory 31.43 16 01/30/2013 Satisfactory Satisfactory 31.43 17 07/24/2013 Satisfactory Moderately Satisfactory 33.43 18 12/30/2013 Satisfactory Satisfactory 41.42 1 H. Restructuring (if any) ISR Ratings Amount Board at Disbursed at Restructuring Reason for Restructuring & Approved Restructuring Restructuring Date(s) Key Changes Made PDO Change in USD DO IP millions Some changes in the results 11/24/2010 N MS MS 23.58 framework and extension of closing date Additional financing and change 11/20/2012 S S 31.43 in component E and F 1 The undisbursed funds have been committed for already completed work and all relevant applications for payment were submitted to the Bank. The actual figure will be updated as soon as these payments were made. I. Disbursement Profile 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal The State Statistical System of Ukraine (SSSU) is the system of state statistics bodies, comprising the SSSU as the specially authorized central executive body in the field of statistics, territorial state statistics bodies, and functional state statistics bodies which are developers of statistical data, such as the MOF, MOE, and the NBU. Statistical activities are conducted according to Ukraine's Law "On State Statistics" adopted in 1992, which lays out the legal basis for statistical work. The new edition of the Law "On Introducing Changes to the Law of Ukraine on the State Statistics" was adopted by the Parliament of Ukraine in July 2000 and became effective at the beginning of the year 2001. The process of transition to a market economy highlighted the need for reform of the statistical system from one that served the needs of a centrally planned economy to one which meets the needs of a democratic society and market economy. Driven by the needs of central planners and decision makers at the lower levels of the administrative system, the scope of statistical collections in the former Soviet Union was extensive. The system was designed to collect comprehensive micro data, at frequent and regular intervals of time (in some instances weekly, but more normally monthly, quarterly and annually). A further feature of the system was that data were collected on a “complete reporting basis” from all legal entities and units. In addition, data was compiled at the small area level. Sample surveys were rare as almost all collections were on a complete enumeration basis. In 1993 the SSSU prepared the long-term "Concept of National Statistics Development" and worked out "The Government Program for Transition to International System of Accounting and Statistics". The first stage of statistical reforms was completed in 1997 and was characterized by concentration of resources in key statistical areas. During 1993- 1997 the basis for the system of national accounts and balance of payments; foreign trade statistics, finance and banking statistics, new labor market statistics was created; some branch statistics had been improved and statistical study of financial conditions of enterprises and organizations was launched; Unified State Register of Enterprises and Organizations of Ukraine was created. New classifications and data coding were introduced; price indices were calculated in accordance with international standards; and SSSU began to introduce the use of sampling methods. The second stage of implementation of the program of statistical reforms (1998-2003) led to further improvement of state statistics through a more focused program that is responsive to the demands of all users. Implementation of the program was to ensure the creation of a statistical system adapted to market conditions and international standards, and its success was demonstrated by Ukraine's subscription to the SDDS. Implementation of the first two phases was supported by the technical assistance (TA) provided by the IMF, EUROSTAT under its TACIS program (Technical Assistance for the Commonwealth of Independent States), OECD, and such bilateral donors as the UK, France, Sweden etc. The World Bank provided support under its IBL for a computerization strategy and procurement of the computer equipment for the SSSU in 1 1993-98 ($9.0m). The project contributed to satisfying the most basic data processing equipment needs at both Headquarters and regional departments. Progress has been limited by resource availability. The Government did not have sufficient resources, particularly for financing comprehensive organizational reform, staff training at all levels, and introduction of the new data collection mechanisms and modern communication and information technology. At the same time, the TA provided by other international agencies and bilateral donors was of limited nature and concentrated basically in upgrading the methodological standards and relevant training of the staff at the Headquarters, as well as on the procurement of equipment on a modest scale, not providing enough resources to embark upon a substantive data collection work, renewal or organizational restructuring. A further constraint was the absence of a proper system of financial and budget management, and an integrated framework to guide the preparation of the annual data collection plan. The annual plans represented an aggregation of user demands without accompanying justification or explanations as to how the data were to be used by the agencies making the demands. In the absence of a costing and charge back mechanism users were at liberty to make demands for what was seen as a “free good”. In addition, the existing approach did not have the requirement of priority setting or taking account of cost considerations. As a result, in many cases an excessive amount of information was collected. Large amounts of the data being collected were not wholly relevant to decision making processes in the new environment but were collected for reasons of tradition. The demand for detailed small area data, particularly on enterprises, driven by traditional and misplaced perceptions about the policy and decision-making role of local administrations, was a driving factor in the explosive data gathering effort. The insistence for detailed data by small area administrations has hampered the introduction of sampling methods. The full coverage approach in data gathering in the face of an explosion in the number of business units, particularly small businesses, has greatly increased the workload of SSSU. A large proportion of these small businesses was often inactive and did not report. Those that were active, however, did not account for a significant part of output. The effort and resources employed were not commensurate to the amount of usable data generated. These issues represented key constraints that need to be addressed at an early stage of modernization if the SSSU was to be able to break away from the past and move towards cutting back on the quantum of data currently collected, adopt sampling methods in its data gathering and operate in a more efficient manner. The other key issues that hold back adaptation of the state statistical system to market conditions were: • inadequate structure of statistical bodies in the country which is inherited from the planned economy era and hampers the large-scale introduction of advanced data collection methods and use the benefits of the network environment provided by the modern Information and Communication Technology (ICT); • insufficient level of interaction and coordination between the SSSU and other government data providing agencies which results in duplication of activities and general lowering of statistical standards; 2 • insufficient skills and experience in modern management issues, particularly at the middle-management level; • insufficient level of knowledge of international statistical standards, methods and practices, particularly at the regional level; • lack of knowledge and experience in the use of statistical software; • insufficient understanding of analytical techniques and familiarity with data at different levels of government. The government has approached the World Bank to assist with the formulation and financing of a long term comprehensive modernization strategy for the SSS. The Project will support the third Program which would, together with ongoing efforts to improve data quality, concentrate on the organizational changes in the system, data dissemination issues and increase in efficiency of data production. The Bank had a unique advantage due to its global expertise with necessary resources in developing and guiding comprehensive, integrated, and targeted statistical capacity building projects. The Bank also had broad knowledge about the country and its development programs. Further, the Bank has established the STATCAP program to support a sector-wide assistance to countries in their statistical capacity building activities that will cover almost all aspects of institutional development, infrastructure improvement, reorganization and human resource development. 1.2 Original Project Development Objectives (PDO) and Key Indicators The development objective of the project is to build a sustainable state statistical system which efficiently provides timely and accurate data for policy evaluation and decision making. The Project will support the implementation of a broad-based poverty reduction strategy to attain job-creating, sustainable economic growth in Ukraine by making available a steady supply of trustworthy and readily available social and economic statistics needed for policy making and monitoring purposes. The Project supports the third long term development Program of the SSSU. A modernized SSS will help to improve economic policy making and private investment decisions by providing pertinent, reliable, and timely data, thereby contributing to Ukrainian economic growth. The improved availability of comprehensive sets of social, poverty-related and labor market indicators, with regional breakdowns, will contribute to the monitoring of policy implementation for social and poverty reduction. This would be achieved by a comprehensive reform of the SSS in the following areas: • strengthening institutional capacity to collect, process, disseminate the data and use it for policy analysis; • improving the match between the needs of those who use the data and the work of those who provide it; • upgrading the quality and flow of official statistical and administrative data by introducing the methodologies and definitions that can bring Ukraine’s performance in the field of statistics up to international standards. A key indicator of performance is the availability of data conforming to international standards. In addition, new policy relevant indicators will be available for the 3 Government of Ukraine. There will be better and timely dissemination of data. Quantifiable indicators of project outcomes include: • an increase in the reliability of regional poverty indicators; • an increase in trained and re-trained staff, particularly at the regional level; • a decrease in survey non-response; • a decrease in number of reporting forms and burden on respondents; • growth of the number of visits to the SSSU website, etc. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification The Loan Agreement was amended with a new PDO that is formulated as follows. "The objective of the Project is to build a sustainable state statistical system which efficiently provides timely and accurate data for policy evaluation and decision making". By introducing this change, the PDO in the Loan Agreement has been aligned with what was stated in the original PAD. However, this change does not reflect any substantive modifications in relation to the previous PDO stated in the Loan Agreement for the original project. 1.4 Main Beneficiaries, There were four main beneficiaries that received direct support from the project: • The State Statistical Services of Ukraine (SSSU) including its regional and local offices; • The Ministry of Finance (MOF); • The Ministry of Economic Development and Trade (MoEDT); and • The National Bank of Ukraine. The general public, government agencies and policy makers at all levels, academic institutions, private sector, NGOs and Civil Society Organizations and mass media had benefited from project through provision of better quality, timely and accessible statistical data. 1.5 Original Components Project components are: Component A (Organizational Development and Management) aimed at streamlining the organizational set-up of the Ukraine State Statistical System, building Institutional Management Systems, strengthening the system of staff training and re-training, developing improved statistical dissemination methods and a better user education strategy, and improving relations with respondents and data providers. Component B (Statistical Infrastructure) targeted improving the sampling frame for household surveys, establishing the statistical register of enterprises and individual entrepreneurs, introducing a unified classification scheme, and improving the legislative basis for the State Statistical System. Component C (Data Development) aimed to improve the quality and timeliness of a number of statistical surveys and outputs including: household sample surveys; integrated 4 annual enterprise statistics; sub-annual surveys of economic activities; national accounts; price statistics; government finance statistics; money and banking statistics; foreign trade statistics; balance of payments statistics; and demography, social statistics and poverty statistics. Component D (Strengthening of Information Basis for Decision Making and Forecasting in the Ministry of Economic Development and Trade (MoEDT) targeted modernizing data presentation methods and processing systems used for analytical purposes, and supporting the use of new short- and medium-term forecasting models. Component E. (Introduction of Modern Information and Communication Technology) aimed at developing a detailed design for the informatization of the State Statistics System. Improvements would be made to source data collection, processing and storage systems; storage and dissemination systems for statistical outputs; data confidentiality and security systems; technical infrastructure; and the skills and competencies of staff using and managing computerized systems. Component F (Project Management) supported the Project Implementation Unit established within the SSSU. 1.6 Revised Components The Component E was revised as part of the additional financing (AF) to expand the Integrated Statistical Data Processing System (ISDPS) nationwide based on the pilots implemented within the original project. The AF covered the financing gap caused by the lack of state budget funds to complete the activities indicated in Component E of the original DEVSTAT project. The Component F was also revised and extended to manage successful implementation the Component E Component E. Introduction of Modern Communication and Information Technology. This component includes the nation-wide roll out of the Integrated Statistical Data Processing System (ISDPS), including purchase of the additional equipment, expanding the ISDPS’s functionalities and conducting the training program to improve the skills and competence of staff using and managing the ISDPS. The local consultant will be hired to carry out the supervision and quality control of ISDPS development as well as nationwide roll-out and expansion Component F. Project Management. This component supports the Project Implementation Unit established within the State Statistics Service of Ukraine (SSSU). The costs for the annual audit will also be included in this component. 1.7 Other significant changes No other significant changes in the project. 2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry 5 The project was designed as a Specific Investment Loan under the umbrella of the STATCAP 2 Adaptable Program Loan (APL). The STATCAP program provided clear guidance on project preparation and design, with the cornerstone being the development of a comprehensive and integrated national action plan for statistical capacity building, often linked to a comprehensive national statistical plan. The key element of STATCAP is commitment to the implementation of a nationally-owned Statistical Master Plan based on a coherent statistical development strategy. Ukraine had a Statistical Master Plan for 2003-2008, and met the eligibility criteria for STATCAP. Ukraine had included financing for statistical development programs in the National Budget and had demonstrated national commitment and leadership for statistical work, including a willingness to comply with good statistical practice. The project proposal was prepared by SSSU together with other beneficiary agencies (Ministry of Finance, Ministry of Economic Development and Trade and the National Bank of Ukraine) in close cooperation with the World Bank. The technical design of the project was based on a detailed analysis of the strengths and weaknesses of the national statistical system as provided in the Statistical Master Plan for 2003-2008 and all four beneficiaries of the project were involved in all phases of project preparation, design and implementation. The project team took a comprehensive approach by combining the methodological and IT improvements with support for organizational and management improvement. The DEVSTAT project was designed with a realistic degree of complexity and achievable number of project components. The project objectives were consistent with the government’s priorities and the Bank’s strategy and goals. The implementation approach was appropriate and innovative and took into consideration lessons learned from prior statistical capacity building projects and best practices. Participatory processes were adequate as all beneficiaries were committed to the project since its inception and participated in all phases of its design, preparation, and implementation. The team properly identified potential risks and accurate mitigation measures during the preparation and paid specific attention to them during the implementation. Although there was no formal quality at the entry assessment, the DEVSTAT project was one of the pilot STATCAP projects and went through a rigorous review and discussion process during the preparation. 2.2 Implementation The actual implementation of the project started with one year delay due to slow progress of the Parliament in ratification of loan agreement that was beyond the control of the Government and the project team (both SSSU and the Bank). After ratification the implementation was carried out as indicated in the Loan Agreements between Ukraine and the International Bank for Reconstruction and Development (IBRD-47290 and IBRD-82240) and in the Project Operational Manual. 2 STATCAP is designed as a horizontal APL to make investments in statistical capacity easier and more effective. It was approved by the Bank’s Board in March 2004. A STATCAP project is appraised and prepared for approval at the regional Vice President level following normal provisions for investment lending. 6 The SSSU was responsible for the overall Project implementation and coordination with other project-beneficiaries who were responsible for the implementation of their respective components of the Project. As the Project coordinator the SSSU prepared, approved and when necessary revised the Project implementation plan and Project Procurement Plan in close coordination with the World Bank. All relevant project documents that required the Bank`s review and approval were prepared and submitted on a timely basis. The SSSU appointed a Deputy Chairman as the Project Manager who was responsible for overall management of the Project in making managerial decisions, coordinating the PIU activity and taking responsibility for preparation, implementation and achievement of project objectives. Each beneficiary agency appointed authorized representatives who were responsible for the coordination of implementation of the relevant components/sub- components of the Project. For day-to-day management of the project activities the Project Implementation Unit (PIU) has been established within SSSU consisting of a PIU Head, consultants for the components of SSSU, NBU, MinFin and MoEDT, procurement specialists, FM specialists, IT procurement specialist, translator and office manager. The PIU provided overall support for the project implementation including preparation and submission of relevant reports, assistance to the Borrower in preparation of bidding documents, organization of tenders for procurement of goods and services, preparation of contracts and coordination among main beneficiaries. The Interagency Working Group (IAWG) was established to ensure the overall coordination and monitoring of the project implementation and held meetings when needed, but not less than twice a year. The IAWG is headed by the Chair of the SSSU and includes at least two representatives from each beneficiary agency. Antimonopoly Committee was also represented in the IAWG. In general, the project has been implemented in accordance with the specified directions and objectives. However, due to one year delay in ratification of loan agreement the closing date of the project was extended by one year to December 31, 2010. The project was restructured in 2010 and the closing date was extended to December 31, 2012 due to delays in the signing of the contract for the development of the integrated data processing system. An additional financing loan (IBRD-82240) for the project was approved on November 20, 2012 to expand the Integrated Statistical Data Processing System (ISDPS) nationwide based on the pilots implemented within the original project. The AF covered the financing gap caused by the lack of state budget funds to complete the activities indicated in Component E of the original DEVSTAT project. The closing date was also extended to December 31, 2013. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization A detailed results framework matrix and necessary arrangements for results monitoring have been included in the project document that would serve as benchmarks for progress. The project team and the implementing agency, SSSU, have closely monitored the project results and have taken corrective actions when needed. 7 The results framework was adjusted 3 to reflect the impact of the AF on project performance and achievement of PDO by adding two intermediate outcome indicators to measure outcomes of the activities financed under the AF. The first indicator assessed the technical compliance of the regional offices with the ISDPS requirements, and the second indicator assessed the impact of the improved technical capacity on statistical data compilation. The original intermediate outcome indicators that were not affected by the AF did not change the target values, but the target dates were extended December 31, 2013 to capture the impact of additional financing. Intermediate output indicators that were not relevant for the AF maintained both target values and target date of December 2012. For the monitoring of the project the following reports were prepared and submitted on a timely basis, which were adequate to monitor project results and outcomes: • Quarterly progress reports including consolidated information on progress of the project and the detailed information concerning fulfillment of procurement plan; • Quarterly financial management reports, which are produced in accordance with the formats coordinated with the World Bank; • Project Progress Report for the last quarter of calendar year included consolidated information concerning implementation of the project for the whole year as well as the updated project monitoring indicators and the results of assessment of statistical capacity based on methodology developed by PARIS 21. All these monitoring activities have been regularly supervised and coordinated by the IAWG. 2.4 Safeguard and Fiduciary Compliance The DEVSTAT project complied with all applicable Bank policies and is entirely consistent with the relevant Operations Policy Guidelines. The Project did not involve any safeguard policies, and at the time of appraisal rated as category C for Environmental Assessment. It did not involve involuntary resettlement, natural habitats or forest areas. The financial management system was run by the PIU and performed well during the implementation. It was capable of recording all transactions and balances, and supported the preparation of regular financial statements that were submitted to the Bank on time. Internal control systems and procedures established by the PIU ensured the reliability of accounting records, and safeguarding of the Project’s resources and assets. All disbursements have been made in line with the provisions of the World Bank Disbursement Handbook and the project disbursement letters dated August 19, 2004 and December 25, 2012. The PIU prepared consolidated financial management reports and submitted on time with the exception of one report for the third quarter of 2006. 3 The original results framework and indicators have been elaborated based on the PARIS21 methodology. The revised framework presents a comprehensive set of indicators to better assess the project implementation progress. More details can be found at http://paris21.org/sites/default/files/scbi-final-en.pdf 8 All procurement of goods and services has been conducted in line with the provisions of the Loan Agreements and Project Procurement Plans that were approved by the World Bank. No procurement compliance issue was raised during the project implementation. 2.5 Post-completion Operation/Next Phase The DEVSTAT project addressed a number of issues and achieved its intended goals. Most of these achievements have been institutionalized and could be sustained (particularly results of components A to D). Although Component E had achieved its stated goals, it is more likely that new functionalities for ISDPS will be developed and introduced stepwise according to the needs and development of the information environment of Ukrainian statistical system. The impact of the ISDPS on the organization of data collection and dissemination and particularly on the division of labor between different levels of state statistical offices should be taken into account, which would require some changes in the organizational structure of the SSSU and other members of the statistical system. This, in turn, could entail some changes in the statistical legislation. The Government of Ukraine has demonstrated its commitment to the improvement of the statistical system, however it is yet to be seen whether it can maintain the level of development, or costs particularly for maintaining, updating and upgrading the ISDPS. It should be clear that despite the achieved results of DEVSTAT project, building sustainable statistical capacity takes longer time than the duration of such a project. Further, to introduce new functionalities for the ISDPS and address issues arising from full implementation of the system, SSSU will need significant amount of additional funding. It is less likely that such funding will be available through regular budget resources and external funding will be needed. Therefore, further cooperation with the Bank and a follow-up project could help the Government fill the financing gap, and hence could be quite beneficial for the statistical system of Ukranie. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation The development objective of the project was relevant and consistent with the objectives of the CAS (2004-2007) by improving the capacity of the statistical system that could provide relevant and good quality statistical data on a timely basis needed for results- based management. Given that a reliable and trusted statistical system is crucial for a well-functioning market economy, the objective of the project still remains relevant. The outcomes of the project will certainly contribute to the achievement of the CPS 2012-2016 strategic objective of improving the quality of public services, strengthening accountability to service users, and targeted assistance to the poor and vulnerable. The modernized statistical system will provide timely, relevant and reliable information for decision making and will address the information asymmetry that exists between the Government and citizens, thus, improve the accountability link. 3.2 Achievement of Project Development Objectives The project has achieved its development objective of building a sustainable statistical system that could efficiently provide timely and accurate data for policy evaluation and evidence-based decision making. The national statistical system of Ukraine is now able to 9 produce and disseminate key statistical data for decision makers in all sectors and at all levels. The methodological skills of the SSSU have been upgraded, and a new regulatory and institutional framework for the national statistical system is currently in place and operational. The organizational structure SSSU has been optimized, however this could require additional refining after the full implementation of ISDPS. The dialogue between SSSU and other data producing agencies as well as users and respondents has improved. The relevant staff of SSSU and other agencies have received specific training and improved their skills. Internationally-accepted standards and methodologies are now being used in data production and sound and well-accepted statistical practices are used for data collection, compilation, and validation. Users enjoy easier and timelier access to data through SSSU website and publications. The SSSU has now a more efficient management team trained in financial and administrative management and leadership. With the implementation of ISDPS 4 the work of staff is automated across the board. All of the SSSU staff have access to PCs that are linked to the corporate network. This has helped the SSSU to improve reporting and dissemination process. The development of ISDPS and its full implementation along with development of relevant applications that automate business processes improved efficiency of staff timelines of data production and dissemination. The project has also supported the establishment of a modern Press Center (also used as a Distance Learning Center) that made it possible to connect all 27 regional offices to the central office for training and meetings. Rate of user satisfaction increased along with access to data. The statistical capacity indicator of the statistical system also improved (see for details Annex 2). 3.3 Efficiency As stated in the PAD, the project is not amenable to a cost-benefit or economic rate of return analysis as national statistical offices have hardly any significant cost-recovery, apart from a small revenue generated from data publications, the financial returns from this project will not be representative of the economic returns. Therefore, it is extremely challenging, if not impossible, to carry out such an analysis and clearly identify the economic impacts of a well-functioning statistical system on the country. The economic benefits from the project derive from the following main sources: • Improved efficiency of statistical operations of the SSSU, resulting in a broader coverage of and higher quality data that affect multiple sectors of society; 4 The system was developed and tested using two statistical observations nation-wide (25 regions). During guarantee period the system will be adjusted and completely prepared for country wide implementation. Currently, the SSSU is consolidating feedbacks and comments from regional offices regarding problematic issues. The contractor will address all issue for the nation-wide system usage of two tested observations. Old and new systems will function in parallel during 2015 while two tested statistical observations will be produced and compared. In case of consistency, further statistics will be produced using the new system only. 10 • Better data will enhance the potential for evidence-based decision making, at policy, program, and project levels; • The project helped to address the significant costs of missing or inaccurate data; • A significant reduction in the cost of data collection through improved systems as well as by moving from full count censuses to sample surveys. Examination of these on the basis of cost effectiveness clearly shows the high level of efficiency achieved by the project. 3.4 Justification of Overall Outcome Rating Rating: Satisfactory A reliable national statistical system is a key building block for evidence-based decision- making in a well-functioning market economy. The improvement of the efficiency and effectiveness of the statistical system has been achieved as evidenced by the production and dissemination of better quality and timely data in all spheres of economic and social statistics, particularly in national accounts, industry, transport, construction and agricultural statistics. Training of statisticians and adoption of new techniques and methods have improved data accuracy, timeliness and coherence. The statistical system has become better coordinated, stronger and more dynamic. Statistical publications are produced regularly and on time. In terms of relevance, achievement of the PDO, and efficiency, the project performed at a level consistent with a satisfactory rating. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 5 The DEVSTAT project did not specifically target these social objectives, but had a positive impact on them by improving the capacity of the national statistical system and SSSU. For example, improvement of the demographic, social and poverty statistics sub- component of the project has helped enhancing the efficiency of social assistance system in Ukraine by improving the identification of target beneficiaries for social assistance and simplifying the benefits allocation procedures. Further, gender indicators have been incorporated in statistical observations in line with international practice. The SSSU and other relevant agencies can now produce timely and reliable statistical data that help improve social service delivery to the population, in particular to the poor, in such areas as health, education and social protection. Further, providing a steady supply of reliable and timely social and economic statistics helped the policy making and monitoring processes. (b) Institutional Change/Strengthening 5 The issues related to poverty measurement were addressed under the Project "Social Assistance System Modernization" implemented by the Ministry of Labor and Social Policy of Ukraine under the World Bank Loan 4807-UA of 28.11.2005 that was ratified in February 2006. 11 In addition to above mentioned achievements, the SSSU has gone through significant institutional change and as a result has strengthened its institutional capacity as evidenced by the project results/outcomes listed below: • Full harmonization of statistical legislation with international recommendations (UN Fundamental Principles of Official Statistics, EU Code of Practices), which provided the basis for the institutional change of the statistical system; • Modified organizational structure of the SSSU and improved management capabilities; • Strengthened collaboration between the SSSU and other relevant government agencies through IAWG; • A new human resource development framework and training strategy in place that strengthened the institutional capacity of the SSSU; • Introduction of a unified system of classifications, covering all main economic classifications and nomenclatures in economic statistics; • The transfer of knowledge on international standards and best practices of most advanced countries in all domain of statistics; • Modernization of hardware and generalized software, especially in regional statistical offices on the level of oblast and rayon; • Improvement of data collection, processing and storage of primary data, dissemination, publications, ICT supported cooperation with respondents and users; • Implementing the system of integrated processing of statistical data and metadata; • Upgrading skills and competence of staff managing the computer systems at all levels of the statistical system of Ukraine. It was observed that the SSSU has sustained these achievements and is now capable to provide technical assistance to other developing countries. (c) Other Unintended Outcomes and Impacts (positive or negative) No negative unintended outcomes were observed. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops A formal beneficiary survey has not been conducted, but a World Bank mission 6 visited Kiev, Ukraine on June 21-30, 2011 as part of the ICR preparation process to review implementation progress of the completed components A-D of the DEVSTAT project and conducted interviews with beneficiaries. The list of people interviewed and the questionnaires used are provided in Annex 5. A follow-up mission 7 visited Kiev, Ukraine on October 7-18, 2013 for the DEVSTAT project ICR preparation. 6 The World Bank team was comprised of Svetlana Budagovskaya (Sr. Economist & Task Team Leader of the DEVSTAT project, ECSP3), Gulnara Febres (Sr. Operations Officer, DECDG, responsible for preparation of the partial Implementation Completion Report (ICR) on DEVSTAT project, and Oleksiy Balabushko (Economist, ECSP4.) The team was assisted by Tetyana Komashko (Team Assistant, ECCUA) 7 The mission led by Mustafa Dinc (Senior Economist/Statistician, DECDG) and comprising Josef Olenski (Consultant) visited Kiev, Ukraine on October 7-18, 2013 for the DEVSTAT project ICR preparation. Svetlana Budagovskaya (Project TTL) joined the team in some meetings. 12 Both missions held meetings with relevant stakeholders and discussed the project results and outcomes. In addition, the second mission visited one large regional office, Kiev City, and a small rayon office, Kiyevo-Sviatoshynskyi rayon to observe the project results outside of the central office. The interviews with the beneficiaries of the DEVSTAT project showed that the results of the project are positive and confirmed the project outputs stated in Annex 2. The interviewed respondents consider that the project was timely and important in bringing the statistical system of Ukraine up-to-date with the internationally accepted standards and classifications. All of the interviewed beneficiaries of the project stated that the project positively influenced their own professional development and skill sets that provided them with a confidence in their own capacity to operate in a more efficient way. There have been noticeable changes in institutional structure of the state statistical system of Ukraine. The project helped increasing reliability, timeliness and quality of the statistics produced in Ukraine, which, in turn, increased the trust in the statistical system. All interviewed beneficiaries stated that the capacity of their respective agencies to collect, process, disseminate the data had significantly improved, and they will be able to sustain these gains in coming years. However, they also mentioned that there will be a need for future support to address the new needs, which will more likely arise from the full implementation of ISDPS. 4. Assessment of Risk to Development Outcome Rating: Low The project had properly identified potential risks and relevant mitigation measures and rated the overall risk as moderate at the approval. The Bank project team and the SSSU have closely monitored the implementation process and during the AF process and updated/upgraded the old “critical risks and possible controversial aspects” framework to the current Operational Risk Assessment Framework (ORAF). It was observed that the proposed mitigation measures worked well and project was successfully completed. Given that the project has achieved all its development objectives and most of these achievements have already been institutionalized, the risk of the sustainability of development outcomes seems low. However, in coming years, the nationwide realization of ISDPS functionalities will require continuing training of relevant staff and timely maintenance and upgrading of hardware and software. Further, improvements and use of IT infrastructure in the country opened up new opportunities for the SSSU to further improve the ISDPS. In coming months and years, new functionalities would be necessary to develop and add to the ISDPS in order to keep it up-to-date, which, in turn, would have an impact on the organization of data collection and dissemination as well as the division of labor between different levels of state statistical system. The actual implementation and use of the system would help defining the priorities of developing new functionalities of the ISDPS. In that sense, the ISDPS could be used as the basis for restructuring of the national statistical system of Ukraine. Although the Government of Ukraine has demonstrated its commitment and continuing support to the improvement of the statistical system, in case the SSSU cannot get the 13 necessary support from the Government for funding these new developments the risk level of development outcomes could increase to moderate. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory As mentioned earlier there was no formal quality at the entry assessment of the project. It was one of the pilot STATCAP projects that was discussed at the Board, therefore it went through a rigorous review and discussion process during the preparation. The Bank ensured that the project team had the appropriate skill mix. Technical aspects of the project were well covered by the team, which was able to establish solid rapport with the Government counterparts based on the quality of advice and information that was being provided. Lessons from earlier operations and projects, and complementarities with ongoing initiatives were taken into consideration and acted upon. The Bank supported the idea of establishing the PIU within the SSSU, which was not set up as an independent PIU. At the time, this approach was not the common practice for most Bank projects in the country. This approach improved the institutional setup and management capacity of the SSSU during the project’s implementation. All the risk mitigation measures incorporated into the design were put in place in a timely manner and the project progressed on schedule except with some delays that were mentioned earlier. Ex-post reviews have only found minor issues during implementation, and most recommendations for improvement have also been put in place in a timely manner. (b) Quality of Supervision Rating: Satisfactory The Bank provided intensive supervision and conducted timely supervision missions. Members of the task team were highly competent, had substantive country experience, and remained dedicated to the project as it progressed. The task team has focused attention on key potential risks – financial management and procurement – and has responded quickly to issues raised by the SSSU or the PIU. Overall, supervision was rated as satisfactory. The procurement risks were taken into account and addressed by Bank staff during the supervision missions. The recommended corrective measures were put in place by SSSU and procurement implementation progressed satisfactorily, although with some delays in few contracts. Procurement risks have been mitigated through supervision, which took place in a timely and appropriate manner. Field supervision missions including ex-post reviews have been carried out as scheduled. Procurement specialists were very well integrated into supervision missions and most reports covered procurement issues in a timely and coordinated fashion. The Bank team and the SSSU have managed the procurement process and its execution diligently. 14 Comprehensive financial management supervision was conducted on a regular basis. Project FM supervision covered all relevant areas including accounting and reporting, internal control procedures, planning and budgeting, external audits, funds flow, organization and staffing and sample transaction review. The responsible FM specialist was resident in the country office and was therefore able to have regular follow up. Issues arising from external audits/management letters and submission of FMRS have been resolved in a timely manner. The ISRs have been prepared with enough detail on a timely basis by the task team. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory In light of project outcomes and the quality of intensive supervision carried out during the project, the overall Bank performance was assessed as satisfactory. The Bank’s performance did not suffer any shortcomings throughout the duration of the project. 5.2 Borrower Performance (a) Government Performance Rating: Satisfactory From the very beginning, government ownership and commitment to the project remained consistently strong as evidenced by the timely provision of counterpart funding, which was provided by the government of Ukraine based on the budget requests of the project beneficiaries. The Government has also been very supportive in issuing necessary decrees on a timely basis that helped change the system. (b) Implementing Agency or Agencies Performance Rating: Satisfactory The implementing agency, the SSSU, was responsive to the implementation needs of the project and established good cooperation with the task team that was maintained throughout the project implementation. The SSSU had a competent and knowledgeable Project Coordinator and experienced project implementation team that were able to successfully manage the procurement and financial management aspects of the project. Similarly, other beneficiary agencies demonstrated strong ownership and successfully implemented their respective components on a timely basis. They all worked in close collaboration with SSSU and strengthened the capacity of their relevant units. Representatives of other beneficiary agencies expressed their overall satisfaction with the project and their willingness to carry on the partnership with the SSSU. Given the overall achievements and results the performance of implementing agencies is rated as satisfactory. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory With the exception of a delay in ratification of Loan Agreement by the parliament, the borrower has demonstrated strong ownership and continuing support for the successful implementation of the project. The SSSU is planning to prepare a follow-up project that 15 will ensure the compliance with international standards and best practices in sustainable manner, which is seen as an evidence of continued commitment and interest of the borrower to continue statistical reform agenda. 6. Lessons Learned • The team took into account critical lessons learned from the earlier statistical capacity building operations when designing the DEVSTAT project. Following these lessons, the team employed a more systematic approach instead of the piecemeal approaches and designed the DEVSTAT project as a comprehensive statistical capacity improvement operation that covered broader aspects of the national statistical system. Another important lesson the team has taken into account and maintained during the implementation was that statistical capacity building requires integrated and coordinated support that could take a long-term commitment. • The successful completion of the project confirmed once again the soundness of these earlier identified and recognized lessons in statistical capacity building operations. This was demonstrated by strong ownership and commitment of the Government and SSSU from the beginning through implementation, which helped successful preparation and completion of the project. Further, ownership and commitment by the Bank project team as evidenced by the continuity and close engagement was another factor that helped successful completion of the project, which was appreciated by the borrower and helped building and maintaining a relationship of trust. These are good lessons that could be utilized in future operations. • Initially, the project procurement plan included a large number of small procurement packages. The project team discussed with the borrower to bundle similar items into one large contract and made necessary adjustments in the procurement plan. The project proved that this approach has been more cost efficient and time saving. Signing a single contract with a consortium regarding the TA consulting services was the right choice for such complex and comprehensive projects. This mechanism provided a one-stop-shop for expertise and technical assistance and helped the implementation of project in a coherent, consistent and well-sequenced manner. This is an important lesson that should be considered by similar Bank projects in the future. • In many countries the ratification process of loan agreements by the parliament for the Bank funded projects could cause delays in effectiveness and implementation of projects. This was the case for the DEVSTAT project in Ukraine. This was beyond the control of the Government, SSSU and the Bank team at that time. Since then the process was changed. For the new projects the Bank project team along with the borrower should make sure that the project funds will be included in the budget line for the implementing agency; so it will not go through the ratification process. In such cases for other countries, identifying champions of project (statistics) within parliament and/or in key committees and hold talks with key members of the parliament and relevant committees could help the ratification process. 16 • It has been the general experience from the previous Bank projects that procurement of IT equipment, particularly complex IT systems was a difficult and lengthy process. Due to their complex structure and limited number of experienced IT procurement specialists in the Bank, procurement process of IT related packages (design and implementation of IT systems, equipment, software and relevant training) is generally slower than other type of procurements. This appears to be the case in DEVSTAT project. There was a more than one year delay resulting from lengthy review and clearance process of a key contract on ISDPS development. The lesson that should be drawn from this experience is twofold. First, the Bank needs to increase the number of experienced IT procurement specialists. Second, in such cases, both the Bank and client team should work closely with relevant procurement specialists and design the procurement package in a way that there would be no confusion or misspecification in the package. • Establishing the PIU within the SSSU instead of as an independent PIU helped improve the management capacity of the SSSU and ensured successful implementation of the project. This is another good lesson the project demonstrated and should be utilized in such operations in the future. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies N/A (b) Cofinanciers N/A (c) Other partners and stakeholders N/A 17 Annex 1. Project Costs and Financing (a) Project Cost by Component (in USD Million equivalent) Original Loan (Loan 4729-UA) Additional Financing (Loan 8224- Total UA) Actual/Lat Actual/Lat Apprais Actual/Late Apprais Apprais est est al st Estimate Percenta al Percenta al Percenta Estimate Estimate Estimat (USD ge of Estimat ge of Estimat ge of Component (USD (USD e (USD millions) as Appraisa e (USD Appraisa e (USD Appraisa millions) millions) millions of Dec 31, l millions l millions l as of Dec as of Dec ) 2013 ) ) 31, 2013 31, 2013 A.Organizatio 3.91 0.67 17.1% 0.00 0.00 0% 3.91 0.67 17.1% nal Development and Management B. Statistical 0.85 4.95 61.7% 0.00 0.00 0% 0.85 4.95 61.7% Infrastructure C. Data 7.17 0.00 0.00 0% 7.17 Development D. 0.87 0.77 88.5% 0.00 0.00 0% 0.87 0.77 88.5% Strengthening of the Information Basis for Decision- Making and Forecasting at the Ministry of Economy and Issues of European Integration E. 22.84 26.95 118.0% 9.79 7.12 72.7% 32.63 34.07 104.4% Introduction of Modern Communicatio n and Information Technology F. Project 1.04 1.38 132.7% 0.227 0.00 0% 1.27 1.38 108.7% Management Unallocated 0.94 N/A N/A N/A N/A N/A 0.94 N/A N/A Total Project 37.62 34.72 92.3% 10.00 7.12 71.2% 47.62 41.84 77.4% Costs Front-end fee N/A N/A N/A N/A N/A N/A N/A N/A N/A PPF Front-end fee 0.32 0.16 50% 0.025 0.025 100% 0.35 0.19 54.3% IBRD Total 37.94 34.88 92.0% 10.07 7.15 71.0% 47.98 42.03 87.6% Financing Required 18 Costs according to Component Original the revised PP Changes with Revised cost Cost as of Nov.2011 AF A. Organizational development 1. 65 0.65 0.000 0.650 and management B. Statistical Infrastructure / 7.51 4.92 0.000 4.920 C. Data Development D. Strengthening of Information Basis for Decision-making and 0.76 0.75 0.000 0.750 Forecasting in the Ministry of Economy E. Introduction of Modern Information and Communication 20.06 24.29 9.790 34.079 Technology F. Project Management 0.91 1.23 0.185 1.416 Unallocated 0.95 Front end fee 0.16 0.16 0.025 0.185 Total 32.00 32.00 10.00 42.00 (b) Financing Actual/Latest Percentage of Appraisal Actual/Late Percentage Appraisal Estimate Appraisal Estimate st Estimate of Estimate (USD (USD (USD Appraisal (USD Type of Co- millions) millions) millions) Source of Funds millions) financing as of Dec 31, Additional as of Dec Original 2013 Financing 31, 2013 Loan (Loan (Loan 8224- 4729-UA) UA) Borrower N/A 5.94 3,19 53.7% 0.042 0.005 11.9% International Bank for Reconstruction and N/A 32.00 31.70 99.1% 10.00 7.14 71.4% Development 19 Annex 2. Outputs by Component Component A. Organizational Development and Management Sub-component A1. Streamlining the organizational set-up of the Ukrainian statistical system No. Task Implementation Results Current Support Streamlining the In response to provisions of the “Strategy The stage-by-stage organizational set-up of for state statistics development untill reduction of staff of the Ukrainian statistical 2008” the Cabinet of Ministers of Ukraine departments at rayon and system issued the Regulation “On Conduct of city levels with further re- Experiment on Introduction of Two-layer allocation of the staff to System for Statistical Information regional level is under way. Collection, Processing and The gradual work towards Dissemination”. According to this integration of the Main Regulation in 2006 in 8 regions of Ukraine Inter-Regional Statistics the relevant organisational and programme Department in the city of and technological tools had been Kyiv with the Head Office experimentally introduced and tested. of SSCU is being Under this experiment the issues of performed. optimisation of organisational structure of statistical offices and re-allocation of functional powers between statistical offices of regional and rayon levels in terms of information and analytical support have been studied. The experiment was conducted under consulting support of Latvian consultants who earlier developed the information system of the Central Statistical Office of Latvia and have been involved in experiment under implementation of this Project. Starting from 2007 activities related with two-layer system testing have been expanded to the entire system of state statistics offices of Ukraine. Due to re-allocation of functional powers between statistical divisions of regional and rayon levels initiated by the experiment as well as centralization of data collection, processing and dissemination processed on the basis of technical re- equipment starting since 2006 the systematic reorganization of the structure of state statistics offices is being made gradually. Over the period 2006-2007 24 departments, units and sectors of statistics in rayon and city departments of statistics were liquidated and their functions were delegated to the regional level. Sub-component A2. Building of institutional management systems Building of The automated system for staff working The areas of application of institutional time accounting was introduced into the staff working time management systems practical work of statistical offices and this accounting system are system allows to determine the level of continuously expanded reporting workload on the employees of towards making the state statistical offices, making evaluation managerial decisions with of efficiency of working time spent and regard to allocation of making re-allocation of number of resources, planning and 20 employees of territorial state statistical evaluation of staff inputs in offices. fulfillment of statistical action plan at all levels. Sub-component A3. Strengthening of the system of staff training and re-training Strengthening of the In order to strengthen the capacity of the system of staff training SSCU staff in introduction of international and re-training statistical standards, English training for the staff of the Head Office of the SSCU has been organized under the Project. In 2007 the Strategy for development of system for training of staff of state statistics offices was developed; implementation of such Strategy was supported under the World Bank Project. Sub-component A4. Development of statistical data dissemination and user education strategy Sub-component A5. Improvement of relations with respondents and data providers Improvement of In the course of experimental introduction relations with of two-layer system for data collection, respondents and data processing and dissemination the number providers of forms of state statistical surveys was decreased by 26 and at the beginning of 2008 reached 181 forms. In the course of 2007 the SSCU has been introducing the new types of information services using Internet. In particular, the “Consulting Center” was tested and introduced on the web-site of the SSCU; currently the information coverage of the functioning consulting center is being expanded. Each year the SSCU holds a number of workshops with data users by different statistical areas where the issues of statistical methodology of relevant branches are considered and discussed. Thus, during 2008 a number of workshops and round tables with data users were organized to address issues of price statistics, national accounts, regional accounts and agricultural statistics. Component B. Statistical Infrastructure Sub-component B2. Setting up a Statistical Register of Enterprises and Sole Traders No. Task Implementation Results Current Support The following documents were developed and approved with Order of the State The Register of Statistical Implementation of the Statistics Committee of Ukraine # 481 1 Units has been statistical register December 16, 2009: implemented, and is maintenance system 1) the Policy of the Register of Statistical operational. Units and the Formation of Sampling Frames of Sets of Units of Statistical 21 Observations of Activities of Enterprises (hereinafter referred to as the "RSU Policy"), the RSU Policy practical implementation time schedule approved with Order of the State Statistics Committee # 16 of January 27, 2010. 2) Methodological Provisions for the Observation of Trends and Demographic Indicators of Enterprises on the Basis of the Register of Statistical Units (approved with Order of the State Statistics Committee # 526 of December 22, 2010); Generating sampling frames is one of the major objectives of the statistical register; for this reason, general populations (sampling frames) of statistical observation A general list of statistical units are set up for the state statistical observation units is research in accordance with the RSU generated annually as of Policy approved with Order of the State November 15. Statistics Committee # 481 of General populations December 16, 2009. (sampling frames) of units Issues of the practical application of the to be studied and reviewed RSU are also determined and regulated by during the statistical the following documents: observation are generated 1) Procedure of the Use of Data from the on the basis of the general Register of Statistical Units (approved with list of statistical observation Order of the State Statistics Committee units. Application of the # 28 of February 10, 2011); The work on updating the 2 statistical register for 2) Rules of Procedure for the performance list of local units on the generating the of the work related to updating the list of basis of the data of the state sampling frames local units on the basis of data of the state statistical observations are statistical observations developed to ensure carried out annually. the completeness of the accounting for local units in the statistical register of enterprises (approved with Order of the State Statistics Committee # 302 of November 18, 2011) In 2013, the methodology of the monitoring of the participation of respondents in the state statistical observations has been prepared (and approved with Order of the State Statistics Committee # 149 of May 14, 2013), and the relevant trial calculations have been performed. Sub-component B3. Implementation of a Universal Classification System No. Task Implementation Results Current Support The automated The classifications used for the RSU classification maintenance Development of the maintenance are uploaded, as well as the system is operable; automated tables. The automated classification 1 classifications are kept up to classification maintenance sub-systems are uploaded into date. maintenance system Statistical Data Processing Integrated A service of re-encoding the System (SDPIS). economic activities of 22 enterprises is offered on the web site of the State Statistical Service of Ukraine The automated classification maintenance sub-system has been set up in the test and trial environments of the SDPIS. The following classifications have been developed: - national classifier DK 009:2010 "Classification of Economic Activities" (KVED-2010) (Order of the State Technical Regulation and Consumer Policy Committee of Ukraine # 457 of October 11, 2010 (as amended); - Methodological Principles and Explanations of Items of the Classification of Economic Activities (KVED-2010) (Order of the State Statistics Committee # 396 of December 23, 2011); - the structure of the Statistical Classification of Products (SKP-2011) (Order of the State Statistics Committee # 254 of October 7, 2011); KVED-2010 and SKP-2011 Development of the - Methodological Principles and classifications are classification of Explanations of items of the structure of maintained; users of these 2 products and services; the Statistical Classification of Products classifications are provided development of related (Order of the State Statistics Committee with the consultancy classifications # 397 of December 23, 2011) support. The following documents have been prepared: - a Concept of the implementation of the reviewed versions of standard international classifications of economic activities and products into the state statistics activities (Order of the State Statistics Committee # 120 of April 8, 2009); - Measures aimed at the implementation of the Project Time Schedule in 2009; - Action Plan of the implementation of the Project Time Schedule in years 2010 to 2012; - Measures related to the performance of the retrospective analysis in connection with the implementation of KVED-2010. The list of industrial Development of the products for the production classification of PRODCOM 2008 was translated into statistics on the basis of 3 products and services; Ukrainian in 2010. CPA 2008 and PRODCOM development of related 2011 — Nomenclature of classifications Industrial Products (approved with Order of the 23 State Statistics Service of Ukraine # 520 of December 17, 2012) Sub-component B4. Improvement of the Legislative Framework of the State Statistics System No. Task Implementation Results Current Support Improvement of the Domestic Statistical Legislation The Operating Principles for State Statistics Agencies have been approved with Order # 216 of June 14, 2010, and published on the web site of the State Completed. The recommendation has been Statistics Service. incorporated during the development of A Code of Practice Operating Principles for State Statistics questionnaire has been 1 Agencies. compiled; the SWOT Most important documents received during analysis has been carried the study tour have been translated. out as a result of the self- assessment. Results of the SWOT analysis have been used as the basis for the development of the long- term development program. Implementation of the System of Statistical Registers of Enterprises (SRE) Documents have been developed on issues related to the maintenance of the Register of Statistical Units. The new system of the maintenance of the The Policy of the Register SRE contains dedicated tables for types of of Statistical Units and the statistical units. 1 Formation of Sampling Frames of Sets of Units of In 2009, enterprises were surveyed in order Statistical Observations of to clarify their economic activities. Activities of Enterprises was approved with Order of the State Statistics Committee # 481 of December 16, 2009 The RSU questionnaires are filled out every year. Provisions have been made for the entry of data on the activity status, the actual address and the principal economic activity, etc. into the SRE; - the file structures for downloading the information for the SRE from annual reporting Electronic Data Processing Suites (KEOI); - instructions on the organization of the monitoring of the submission of financial statements by legal entities not included into the set of statistical observation units 24 for structural statistics purposes have been approved. Minutes of Meeting # 1 of May 26, 2010, "On Amendment of the Catalogue of Files for the exchange of the information between the State Entrepreneurship Committee and the State Statistics Committee on the state registration of legal entities and sole traders, their entry into records and their withdrawal from records". Provisions are made for the entry of data on the activity status, the actual address and the principal economic activity, etc. into the SRE; - the file structures for downloading the information for the SRE from annual reporting Electronic Data Processing Suites (KEOI); - instructions on the organization of the monitoring of the submission of financial statements by legal entities not included into the set of statistical observation units for structural statistics purposes have been approved. Methodological recommendations on the demography of enterprises have been translated into Ukrainian. The plan of state statistical observations for year 2010 calls for the implementation of the methodological provisions on the observation of development trends and the demography of enterprises on the basis of the Register of Statistical Units - the Minutes of Meeting "On Amendment of the Catalogue of Files for the exchange of the information between the State Entrepreneurship Committee and the State Statistics Committee on the state registration of legal entities and sole traders, their entry into records and their withdrawal from records" have been approved; - the State Statistics Committee submitted proposals to the State Entrepreneurship Committee on the amendment of the legislation aimed at ensuring the completeness of the record of local units; a working meeting has been held with representatives of the State Entrepreneurship Committee for the discussion of this issue; - a directory of local unit types for the use in the SRE and in the course of statistical observations has been developed; - the priorities of data sources for the 25 generation of specific SRE indicators (such as the "average number of employees") have been specified; - the Process Plan of 2010 State Statistical Observations provides for the work on maintaining and updating the RSU with the specification of data sources, deadlines and officers in charge; the set-up of general populations of enterprises (sampling frames) at the central level has been provided for by the Time Schedule of the Implementation of the RSU Policy since 2010. The new SRE maintenance system provides for the correction of erroneous administrative data (stored in the form they have been received), while the relevant verified data are added to the statistical database. The set-up of general populations of enterprises (sampling frames) at the central level has been provided for by the Time Schedule of the Implementation of the RSU Policy since 2010. The mission resulted in the development of the curriculum for the seminar: "Methods of Dealing with the Sample in Enterprise Surveys". The seminar has been held within the scope of Mission 3.B7. This is provided for by the RSU Policy. The training took place during the preparation of descriptions of state statistical observations, while taking inventory of the reporting and statistical documents required for the state statistical observations. A document named "Policy of the Register of Statistical Units and the Formation of Sampling Frames of Sets of Units of Statistical Observations of Activities of Enterprises" was developed and approved with Order of the State Statistics Committee # 481 of December 16, 2009 The criteria for setting up the sets of statistical observation units have been provided by the sectoral statistics departments during the preparation of descriptions of state statistical observations, while taking inventory of the reporting and statistics documents required for the state statistical observations. Development of the Automated Classification Maintenance System This work has been performed partly in the 1 form of classifications used for the RSU maintenance. 26 There is a National Statistical Classifications section on the official web site of the State Statistics Service. Order of the State Statistics Committee # 120 of April 8, 2009, "On Approval of the Concept of the Implementation of the Revised Version of the Standard International Classification of Economic Activities into the State Statistical Activities" Order of the State Statistics Committee # 120 of April 8, 2009, "On Approval of the Concept of the Implementation of the Revised Version of the Standard International Classification of Economic Activities into the State Statistical Activities" Development of Skills in the Field of Seasonal Adjustments and Allowances for Working Days Sectoral departments of the State Statistics Service use methods of seasonal 1 adjustments and allowances for working days. Development of the Metadata Base A system of statistical meta- A study visit to the Czech Republic information has been Statistics Office has taken place. created. It is supported by The structure of variable statistical reports means of the taking (input indicators) have been standardized inventory of the reporting and unified. and statistical information The structure of the (variable) input on an annual basis with indicators has been determined by the descriptions of the state Statistical Observations Planning and statistical observations Organization Department on the basis produced in a unified 1 described below in order to support the format. The meta- descriptions of state statistical observations descriptions of state by sectoral departments: statistical observations for Variable = Indicator + Attribute (classifier) data users are produced on (Indicator = Indicator Basis + Attribute). the basis of the above The draft plan of the state statistical descriptions annually and observations (the 2011 draft plan) has been published on the official revised on the basis of descriptions web site of the State produced as a result. Statistics Service of Ukraine. Component C. Data Development Sub-component C1. Selective Household Surveys No. Task Implementation Results Current Support Living Conditions Indicators and Reporting Improve the system of Recommendations for the improvement of The program and the system 1 indicators of household the program and the system of indicators of indicators of the national surveys of the national household survey have been household survey have been developed on the basis of the analysis of improved. The use of the 27 the comparability of the system of national national equivalence scale household survey indicators with the has been implemented for system of indicators of EU member states. the analysis of inequality and poverty issues (e.g., it has been used during the preparation of Joint Order of the Ministry of Social Policy of Ukraine, the Ministry of Economic Development and Trade of Ukraine, the Ministry of Finance of Ukraine, the State Statistics Service of Ukraine and the National Academy of Sciences of Ukraine # 629/1105/1059/408/612 of October 8, 2012, "On Approval of the Methodology of the Integrated Poverty Assessment"). The experience gained as a result of the familiarization with the European survey program (EU SILC — European Union Statistics on Income and Living Conditions) has been applied during the module- based poll regarding the access of households to goods and services. Results of this poll are published on a web site and are used to analyze poverty in terms of deprivations. The Methodological Recommendations for the Income and Consumption Opportunities of Households within the Scope of the Household Survey (Order of the State Statistics Service of January 15, 2013) #10). Survey Data Processing Prepare a description of The draft description of the methodology The Methodology of the the existing of the processing of data obtained as a Processing of Results of the methodology and result of the household survey has been Selective Household Living develop developed. Conditions Surveys was 1 recommendations for The improvement recommendations have developed and published on the improvement of been developed on the basis of the analysis the official web site of the methods and processes of the methodology and procedures of the State Statistics Service of the household living development of the national survey data; (Order of the State Statistics conditions survey data some of the technologies suggested have Committee # 278 of 28 processing. been tried. October 31, 2011). A pilot exercise has been developed for Results of the pilot study the testing the procedure of the imputation have been used to determine of missing values to a small artificial the national equivalence dataset of the household living conditions scale for the analysis of survey using the SRMI sequential multiple inequality and poverty regression with the SPSS module. issues. A pilot study of the impact of various The calculations of the options of equivalence scales on poverty reliability of estimates of and inequality indicators has been indicators of the inequality conducted. The software has been of the living standards of developed for the calculation of the the population have been reliability of estimates of indicators of the implemented nationally and inequality of living standards of the regionally on a permanent population. basis. Staff Training in the Performance of Surveys Familiarize with programs of selective household income, expense and living conditions surveys, as well as modern A study tour took place to the French methods and state-of- Institute of Statistics (Insee) that resulted the-art technologies of in the obtainment of the experience in the processing of data dealing with organizational and of such surveys, and methodological principles of the selective the experience in household income, expense and living The experience gained has methodological conditions surveys, and using the modern been applied in the course approaches toward the software for interviewing, encoding and of the improvement of the 1 adjustment of processing the data of such surveys. A program and the indicator consumption expenses seminar has been conducted on the system of the domestic of households in order improvement of the program, the indicator household living conditions to record the income system and the survey data processing survey. and expenses of the technology, as well as on the methodology well-to-do population of the adjustment of consumption expenses strata. of households in order to cover the Train staff in expenses and income of the well-to-do improving the program, population strata. the indicator system and the technology of the survey data processing. Sub-component C2. Integrated Annual Enterprise Statistics No. Task Implementation Results Current Support 1. Head office staff have obtained knowledge of the EU legislative Criteria have been framework on enterprise statistics and the introduced for assigning the organization of surveys in this area in Create an integral state statistical observations specific EU member states. The EU have 1. enterprise statistics to the enterprise statistics assessed the Ukraine State Enterprise system (Order of the State Statistics Statistics Development Concept and, Service # 548 of together with the Ukrainian specialists, December 29, 2012). determined criteria of assigning the state statistical observations in Ukraine to the 29 enterprise statistics taking into account provisions of the Concept. The new reporting and statistics toolkit for non- finance-sector enterprises and methodological documents on structural statistics have been introduced and operating starting from 2012 reports, namely: the Methodological Policy of the Mutually Co- ordinated System of State Statistical Surveys for Determining Structural Statistics Indicators as a Part of the Enterprise Statistics (Order of the State Statistics Service # 549 of December 29, 2012); Officers of the head office and regional Methodological statistics departments obtained knowledge Recommendations on the of the EU legislative framework on Organization of the State structural statistics and familiarized Statistical Observation of themselves with the EU countries' Structural Changes in the experience in organizing the structural Economy of Ukraine and Its Improve structural 2 surveys. Regions (Order of the State statistics 2. A new reporting and statistics toolkit has Statistics Committee # 366 been developed on the basis of the of December 22, 2011); obtained experience for structural surveys Methodological Policies on of enterprises, as well as methodological the Use of Financial documents that are in conformity with the Statements of Enterprises EU structural statistics regulations. for the Enterprise Statistics Purposes (Order of the State Statistics Committee # 393 of December 23, 2011); Order of the State Statistics Committee # 321 of August 1, 2012, "On Approval of Forms of State Statistical Observations on Structural Statistics (for Non-Finance- Sector Enterprises)". In addition, the draft Methodological Recommendations on Interlinked Structural Statistics Indicators based on Eurostat's Revised Quality Checks document are being tested. Develop forward- The following documents 3 Key indicators have been identified looking indicators have been developed and 30 implemented: Methodological Provisions for the Organization of Surveys of the Business Activity of Enterprises of the Industrial, Construction, Retail, Service, Transport and Agricultural Sectors (Order of the State Statistics Service # 38 of February 8, 2013). Model questionnaires for enterprise business activity surveys have been improved (Order of the State Statistics Service # 544 of December 27, 2012) Sub-component C3. Current Economic Activity Surveys No. Task Implementation Results Current Support 1. The methodology of the 1. The calculation of the industrial calculation of the industrial production index according to the production index has been methodology that meets Eurostat improved; the calculation of requirements has been implemented in indices at the level of major Ukraine since 2009 (with year 2007 as the industrial groups is baseline year). The first publication of data envisaged (the changes to has been made in the express issue of the methodology were Development of "Results of the Operation of Ukraine's approved with Order of the production indices Industry in January 2009" (# 33 of State Statistics Service # 91 February 16, 2009). of March 14, 2013). Starting from 2013, the industrial production index is calculated according to KVED-2010 (NACE rev.2 (with year 2010 as the 1 baseline year). 2. The calculation of sales in the industry has been calculated according to 2. The calculation of the industrial sales KVED-2010 (NACE rev.2) index (with year 2007 as the baseline year) and according to a has been implemented in Ukraine since methodology based on 2011. The first publication of data has been Eurostat's recommendations made in the express issue "Volume of (with year 2010 as the Industrial Products Sold and Sales Index in baseline) (changes to the Ukraine in January 2011" # 47 of March 1, methodology have been 2011. approved with Order of the State Statistics Service of Ukraine # 86 of March 12, 2013). 31 3. The Methodological Provisions for the Calculation of the Index of New Orders in the Converting Industry have been developed and approved (Order of the State Statistics Committee # 16 of January 26, 2011). 4. The calculation of the construction production index according to a 4. The Methodological Provisions for the methodology coordinated Organization of the State Statistical with Eurostat's Observation of the Short-term recommendations has been Construction Statistics and the Procedure implemented since 2013. of the Calculation of the Construction The first data publication Production Index have been developed and took place in the express approved (Order of the State Statistics issue "Performance of the Committee # 200 of August 5, 2011). Construction Work in Ukraine in January 2013) # 03.6-33/230 of February 15, 2013 1. Changes have been introduced to the instruction on the completion of Form # 1- PE of the state statistical observation of economic short-term industry statistics 1. Questionnaire Form # 1- indicators for the purposes of the PE has been improved obtainment of the information on volumes (Order of the State Statistics of new orders (including those foreign) Service of Ukraine # 482 of (approved with Order of the State Statistics November 26, 2012), and Committee # 380 of November 25, 2005, the procedure of its (in the wording of Order of the State completion has been Statistics Committee # 312 of August 18, clarified The gathering of 2009) and registered with the Ministry of data on volumes of the Justice of Ukraine on September 10, 2009, external sales has been in under # 853/16869 (as amended)). Improvement of short- place since 2013. Provisions have been made for the term statistical 4 collection of data on indicators of the observations of the volumes of supply and distribution market situation. (transportation) of the electrical energy and the gas to consumers by local networks (to be used in the calculation of the industrial production index in Section D of KVED- 2. The observation 2010 (Form # 1-PE approved with Order questionnaire has been of the State Statistics Committee # 239 of introduced into the practice July 7, 2009,, and appropriate of statistics (Form # 1-kb, methodological recommendations have Order of the State Statistics been developed (approved with Order of Committee # 255 of July 5, the State Statistics Committee # 535 of 2010). December 29, 2010). 2. The questionnaire of the state short-term construction statistics observation has been improved in terms of the range of 32 indicators and the deadlines for the submission by respondents. Application of seasonal 7 fluctuation allowances Sub-component C.4. National Accounts No. Task Implementation Results Current Support Annual Calculations The calculations for the household sector are being developed and published for Implementation of the following sub-sectors: Methodological provisions have been 1 calculations for the employers, self-employed, developed; the calculation has been household sector by employees, recipients of produced. sub-sectors property income and transfers. Results are published on the web site of the State Statistics Service The conformity of calculations produced Improvement of by the State Statistics Service with the EU The improved data are calculations of the Price and Volume Handbook has been 2 published in prices of the GDP and its ensured. The calculations have been previous year and the components in constant improved in line with the above baseline year. prices Handbook, for instance, in the field of foreign economic activities. Input-Output Table The expanded cost/output table and appropriate Development of an The toolkit and the cost/output table have analytical materials have 1. expanded cost/output been developed. been published. The table cost/output table is developed every year. Regional Accounts Improvement of the The methodology of the calculation of the Components of the gross Gross Regional output of goods and services for local units regional product by 1 Product (GRP) has been developed. The statistical toolkit economic activity are calculation has been improved, and the relevant developed and published methodology. calculations have been made. annually. Geo-information maps are a Improvement of the Introduction of GRP publications using 2 part of the annual GRP GRP publications geo-information maps. publication. Quarterly National Accounts Introduction of A methodology has been used for the use econometric methods of econometric methods for the calculation The calculations are made 1 for the calculation of of the output of goods and services by quarterly. the GDP components economic activity. The accounts for Introduction of The information support has been institutional sectors of the quarterly national developed in line with the elaborated economy are developed and 2 accounts by methodological provisions, and trial published on the web site of institutional sectors of calculations have been produced. the State Statistics Service economy. on a quarterly basis. Sub-component C5. Price Statistics 33 No. Task Implementation Results Current Support This work has been completed within the scope of Contract # 4729/18 of February 27, 2008. Improvement of the The Methodology of the election of Retail 1 Carried into effect from consumer price and Service Enterprises for the Calculation June 1, 2010 statistics of the Consumer Price Index has been developed (approved with Order of the State Statistics Committee # 179 of May 11, 2010) This work has been completed within the scope of Contract # 4729/18 of February 27, 2008. The Methodological Recommendations for 3 Improvement of the Carried into effect from the Selection of Goods and Enterprises for producer price statistics May 1, 2010 the Calculation of the Producer Price Index have been developed (approved with Order of the State Statistics Committee # 39 of February 5, 2010) Sub-component C6. Public Finance Statistics(implemented by MoF) No. Task Implementation Results Current Support Recommendations on Budget classification improvement in view of GFS and SNA requirements have been obtained. MoF has amended the Budget classification and the related handbook. Formats of economic and functional Consulting support of 1 classifications are largely consistent with government finance IMF GFSM 2001. Departmental and statistics improvement program classifications correspond to regulations of national legal acts. Classifications of revenue, expenditure, lending, debt and deficit financing require data reclassification according to format IMF GFSM 2001. 1. Methodology for construction of data 1. Data conversion tables conversion tables by classification of make it possible, if revenue, expenditure, lending and budget necessary, to reclassify data deficit financing and debt in format for budgetary and financial GFS2001 has been improved reporting across all general government subsectors according to format IMF GFSM 2001. Automated conversion Consulting support of tables are updated on a 2 public finance statistics regular basis to reflect improvement changes in the Budget classification and accordingly in budgetary 2. Recommendations on the methodology and financial reporting. for statistical adjustment of cash data to data on accrual basis have been obtained; 3.International experts have provided recommendations on harmonization of GFS data with SNA data, monetary 34 statistics and with balance of payments data; 4. Training workshops and training courses have been conducted for employees of MoF, Treasury, Pension Fund, State Social Insurance Fund and the relevant central executive bodies on sources and mechanisms of generation of GFS data according to international standards (apprx. 100 persons). Consulting services for 29 employees of MoF have received staff training: training. Duration of training: 11 months. improvement of English language skills of MoF employees for them to use the acquired knowledge in practice in their professional activities within the framework 3 of international cooperation in generating GFS data to report in international publications, in particular the Government Finance Statistics Yearbook, and in compliance with the special data dissemination standard. Computer hardware 45 pieces of computer and office and software equipment, and software have been procurement: upgrade purchased. of physical infrastructure through 4 the purchase of computer and office equipment as well as software for data generation and analysis of government finance statistics. Sub-component С7. Monetary and Banking Statistics(implemented by NBU) No. Task Implementation Results Current Support - consultancy support 1. Methodological and organizational 1. Reports are being for improving the issues of monetary statistics coverage of provided to the methodology and other financial corporations (insurance International Monetary organization of companies, non-state pension funds and Fund according to Form monetary and banking investment funds) were reviewed. 4SR “Other Financial statistics; Corporations”. - study tours for An overview of financial improving the corporations and a balance 35 methodology and sheet of other financial organization of corporations by economic monetary and banking sector are being published statistics; in the statistical bulletin and - English language on the official website of training of staff of the the National Bank of National Bank of 2. Methodological issues of compiling Ukraine. Ukraine monetary statistics on financial transactions of depository corporations 2. The data are being were reviewed. Calculations of indicators published in the statistical of monetary statistics on financial bulletin and on the official transactions of depository corporations for website of the National 2008 – 2013 were made. Bank of Ukraine. 3. Indicators of monetary statistics of Ukraine were harmonized with those of the European System of Central Banks. A set 3. An electronic version of of news releases concerning monetary the statistical bulletin that statistics were prepared. complies with international and European standards of statistics is being published on the official website of the National Bank of Ukraine. A set of news releases concerning monetary statistics were prepared and are being published on the 4. Data sources were analyzed to compile official website of the Ukraine`s quarterly financial accounts by National Bank of Ukraine. institutional sector: non-financial corporations, financial corporations, national administration, households and the rest of the world. Calculations of quarterly financial accounts of the financial corporations sector and its subsectors were made. The data were published on the official website of the National Bank of Ukraine 5. Training of NBU employees was conducted to improve their English; this increased the level of professional communication of NBU staff with representatives of the international statistical community in the course of their professional activities. Sub-component C8.1. Foreign Trade Statistics No. Task Implementation Results Current Support This work has been completed within the In 2011, the Methodological scope of Contract # 4729/18. In April Provisions for the Improvement of 2009, the State Statistics Committee Assessment of Volumes of 1 foreign trade statistics carried out a pilot survey of the volume of the Informal Trade in with the incorporation the informal trade at Ukraine/Poland and Statistics of the Foreign of the unofficial trade Ukraine/Russia border checkpoints to Trade in Goods were determine the percentage of the informal developed and approved 36 trade in the statistics of the foreign trade in (Order of the State Statistics goods. Committee # 225 of September 5, 2011) Assessment of the quality of the foreign Reconciliations were conducted with Data reconciliations were 2 trade data using mirror Germany in 2010 within the scope of a performed with Latvia and statistics of the trade TACIS project. Serbia in 2011 and 2012. with key trading partners. The improvement of the methodology of the This work has been completed within the calculation of indices of scope of Contract # 4729/18. The indices average prices, the physical of average prices, physical volumes and volume and the terms of the terms of foreign trade in goods have been foreign trade in goods has published on a quarterly basis on the web been include as a dedicated site of the State Statistics Committee since section into the Improvement of the 2009. The brief methodological comments Methodological Handbook methodology of the on the calculation of the foreign trade on Statistics of the Foreign calculation of price indices have also been published on the Trade in Books approved 3 indices and physical web site. with Order of the State amounts in the foreign In September 2009, the changes have been Statistics Service of trade, and the terms of introduced into the terms of reference for Ukraine trade the development of the software for the # 546 of December 28, Electronic Data Processing Suite (KEOI) 2012. "Calculation of Price Indices, Physical Starting from 2013: Amounts and Terms of Foreign Trade in the indices of average Goods" as a result of the improvement of prices, physical volumes calculations on the basis of the expert and terms of the foreign assessment. trade in goods have been published on a monthly basis since January 2013. A new methodology for the calculation of statistics of the foreign trade in services in Ukraine (Order of the State Statistics Service #43 of February 8, 2013) and the Classification of Foreign Economic Services Pilot surveys of specific services have been Development of the (Order of the State Statistics conducted with changes introduced as a methodology of the Service # 69 of result of surveys in the reporting Form #9- additional calculations February 27, 2013) have ZEZ (Order of the State Statistics Service 4 of volumes of the been implemented. They are #377 of September 7, 2012). Draft foreign trade in specific in line with methodological provisions for the services and services recommendations of the calculation of items related to services in provided by Manual on Statistics of the foreign economic activities have been individuals. International Trade in developed. Services (UN Statistics Division, 2010) and the sixth edition of the IMF Balance of Payments and International Investment Position Manual (IMF, 2009). 37 The form of entrepreneurship reports has This work has been carried out at own been improved. Agreements expense by means of improving the record have been concluded with system. Changes have been introduced into Improvement of the specific state authorities on the Agreement between the State Statistics register of enterprises the provision of lists of 5 Committee and the NBU on the provision offering external enterprises in possession of of a list of enterprises receiving or making services on the basis of licenses for specific payments for the export/import of services the statistical register business activities (tourism, on the basis of banking reports in order to construction, transportation) ensure the complete coverage of reporting in order to improve the units. register of reporting enterprises. Sub-component С8.2. Balance of Payments Statistics (implemented by NBU) No. Task Implementation Results Current Support 1. Methodological framework was developed and calculations of holdings of foreign currency in cash outside banks were made to display in the international investment position, allowing for adjusting data by flows and stocks in external sector statistics; a new method was introduced for generating data on insurance services and reinvested earnings from foreign direct investment. 2. The National Bank began publishing 2. Keep being published. new statistical products: The main areas of - international investment position on a implementation of quarterly basis; subcomponent included - short-term external debt by residual consulting support and maturity; study tours on - seasonally adjusted data for the improving the individual components of the current methodology and the account balance; preparation and - data on private remittances. dissemination of 3. NBU keeps providing external sector 3. A set of measures of methodological and data from the balance of statistics in Ukraine. organizational support were implemented payments, international for the transition to the compilation of investment position and external sector statistics according to the external debt in accordance new methodological framework set out in with BPM6 to the IMF. the sixth edition of the Balance of Payments and International Investment Position Manual (IMF, 2009). Beginning from 2012 onwards, the NBU provides to the IMF data from the balance of payments, international investment position and external debt in accordance with BPM6. Sub-component C9. Demographic, Social and Poverty Statistics No. Task Implementation Results Current Support Development of the Methodology of the Adjustment of Consumption Expenses of Households in Order to Keep Track of Expenses and Income of Well-to-do Population Strata 38 The preparation of the information about the reliability of estimates of indicators of the selective household living conditions The extent of the possible impact of non- survey required for the responses of well-to-do population strata calculation of the consumer on the consumer price index has been price on an ongoing basis Determine the impact estimated. index has been of the insufficient Proposals have been developed for the implemented. coverage of the well- methodology of the adjustment of A number of consultations to-do population strata consumption expenses of households in have been held with officers on the bias of estimates order to keep track of expenses and income of the State Tax Service and of the consumer price of well-to-do population strata and the general structure of the index. recommendations have been issued on the information database of 1 Develop a implementation thereof. revenues and taxable methodology for the The software has been developed and persons has been analyzed adjustment of tested for the adjustment of the system of in order to find and study consumption expenses statistical weights of the household living more efficient data on of households in order conditions survey using the data from payments made by to keep track of external sources (e.g., Kyivenergo data). subscribers for the expenses and income The software has been developed for the consumed electrical energy of well-to-do ascertainment of indicators of the in comparison with data population strata reliability of data of the household living from energy suppliers for conditions survey required for the the purposes of the calculation of the consumer price index. adjustment of consumer expenses of households in order to take into consideration expenses and income of the well-to-do population strata. Mortality Statistics No. Task Implementation Results Current Support The death reasons are encoded in accordance with the methodological In line with the vested powers, the guidance document named methodological guidance document named "Morbidity and Mortality "Morbidity and Mortality Encoding in Encoding in Accordance Accordance with International with International Classification of Diseases of 10th Classification of Diseases Revision" has been developed on the of 10th Revision" approved initiative of the State Statistics Committee with Order of the Ministry together with the Ministry of Health of of Health of Ukraine # 503 Improvement of 1. Ukraine (Order of the Ministry of Health of August 29, 2008. mortality statistics of Ukraine # 503 of August 29, 2008). Materials related to the use The State Statistics Committee has of the IRIS software initiated the translation of the ICD-10 (provided by the expert) are updates into Ukrainian. The relevant letter used to solve issues related has been sent to the Ministry of Health of to complicated situations Ukraine. regarding the choice of the root cause of death, and to draw up instruction letters for regional state statistics agencies (instructive materials on encoding and 39 selecting the root cause of death). Migration Estimates No. Task Implementation Results Current Support The approved Program of the Ukrainian National Census contains an The program of the forthcoming Ukrainian expanded set of questions National Census contains a set of questions about the migration activity targeting a broader range of the of the population. The information about volumes of the external details of the migration migration, including the labor migration. A (including the international Improvement of question about the possibility of residence 1. migration) are sent to external migration data of the respondent in another country, the international organizations year of return to Ukraine and the reasons (Eurostat, IOM, ILO, etc.). for the stay in another country has been The relevant information is included. sent to other countries for data exchange purposes; the data of international questionnaires are processed as well. Selective internal and The relevant sets of questions have been 2 external migration included into the selective labor migration surveys surveys conducted in 2008 and 2012. Establishing a Modern Demographic Statistics Data Acquisition and Processing System No. Task Implementation Results Current Support The methodologies have been developed for "Building up Mortality and Life Expectancy Tables for the Population of The calculations of the Improvement of data Ukraine and Regions Broken down by population reproduction and on the population Gender and Settlement Type" (Order of the life expectancy indicators growth and flows, and 1. State Statistics Committee # 103 of have been implemented into data on the April 26, 2011) and "Building up General the practice of statistics characteristics of the Fertility Tables for Women of Ukraine and starting from 2011. population. Regions Broken down by Settlement Type" (Order of the State Statistics Service # 52 of February 18, 2013). A dedicated web site "Population of Ukraine" has been set up in order to Establishment of the The database is being filled migrate to an electronic system of the 2 central demographic up on an ongoing basis management of time series of statistical statistics database starting from the 1989 data. indicators and to provide broader access to statistics for users. Implementation of Geographical Information Systems (GIS) No. Task Implementation Results Current Support The work related to the application of GIS The dedicated software/methodology technologies for the census GEOPEREPYS GIS suite has been zoning of the territory of the Implementation of a developed for the trial census area together country, the monitoring of 1 Census GIS with the specialized software of the census the census and the data zoning GIS. dissemination is carried out on the basis of digital maps of raions and cities of republican (in the Crimea) 40 and oblast significance. GIS census implementation seminars have been held for officers of the State Statistics Service and local state statistics agencies. Measures have been taken to equip the head office and local bodies of the State Statistics Service of Ukraine with the licensed GIS software. The List of Building and Premises Addresses in The Policy of the List of Building and Urban Settlements for the Premises Addresses in Urban Settlements Ukrainian National Census for the Ukrainian National Census was is used for the census approved with Order of the State Statistics zoning using the GIS Service of Ukraine # 554 of December 29, Zoning software. The 2012. information contained in the list of addresses is kept up to date at a regional level. Sub-component C10. Other Statistics (Regional Statistics) No. Task Implementation Results Current Support Municipal Statistics The form of the statistical The system of indicators for the analysis of bulletin on the socio- the socio-economic development of economic condition of the regions using the administrative data region is being unified sources is kept up to date. For instance, the every year. It contains administrative data on the official labor information obtained from Co-ordination of market are obtained by state statistics administrative data sources survey data and agencies centrally and locally from bodies 1. (for instance, on the official administrative sources of the State Employment Centre, and labor market, the social for regional statistics. published in the monthly statistical bulletin protection, the crime rate). Economic and Social Condition of the Activities are carried out to Region or as a part of the Report on the fill up and keep up to date Socio-economic Condition of the Region, the Regional Passport and other publications at the central and databases. regional levels. The methodology of the assessment of the The list of indicators and performance of the Council of Ministers of the procedure of the the Autonomous Republic of Crimea, assessment of the oblast, Kyiv and Sevastopol City State performance of the Council Development of the Administrations has been developed and of Ministers of the methodology of the implemented (approved with Resolution of Autonomous Republic of assessment of the the Cabinet of Ministers of Ukraine# # 263 Crimea, oblast, Kyiv and socio-economic of April 6, 2005). The range of indicators Sevastopol city state 2. development of underlying the assessment has been administrations have been regions, including the improved as a result of its trial application, improved. The performance definition of the set of and the resolution has been properly of the Council of Ministers indicators amended. The comprehensive assessment of the Autonomous of the socio-economic development of the Republic of Crimea, oblast, Autonomous Republic of Crimea, oblasts, Kyiv and Sevastopol City cities of Kyiv and Sevastopol has been State Administrations is implemented. The list of indicators has assessed on a quarterly 41 been improved and the Comprehensive basis in accordance with Assessment Procedure has been approved Resolutions of the Cabinet (in pursuance of Resolution of the Cabinet of Ministers of Ukraine of Ministers of Ukraine # 833 of June 20, # 650 of June 9, 2011, and 2007) # 335 of April 9, 2012 Every year, the State Statistics Service of Ukraine provides information support to the monitoring of the interregional and intra- Development of the regional differentiation of interregional the socio-economic comparison A list of indicators for comparisons development of regions in 3 methodology, between areas has been developed and kept pursuance of Resolution of including the up to date. the Cabinet of Ministers of ascertainment of a set Ukraine # 476 of May 20, of indicators 2009, "On Implementation of the Assessment of the Interregional and Intra- regional Differentiation of the Socio-economic Development of Regions" The list of indicators (other than those defined by the Law of Ukraine "On The list of indicators used Encouragement of the Regional for the monitoring of socio- Development") and methodological economic development recommendations for the calculations indicators of regions, raions related to the identification of depressed and cities of oblast areas have been developed. With its (republican in the Resolution # 860 of June 245, 2006, the Autonomous Republic of Cabinet of Ministers of Ukraine approved Crimea) significance for the Development of special 4 the Procedure of the Monitoring of Socio- purposes of declaring areas depressive area surveys economic Development Indicators of to be depressed has been Regions, Raions and Cities of Oblast improved. The monitoring (Republican in the Autonomous Republic in question is carried out of Crimea) Significance for the Purposes every year in accordance of Declaring Areas To Be Depressed. The with Resolution of the monitoring is based upon data of the state Cabinet of Ministers of statistical observations and administrative Ukraine # 235 of March 2, data. 2010. The Methodology of the Assessment The calculations of the total (Calculation) of the Number of Available available population of rural Population in Rural Settlements was settlements have been approved with Order of the State Statistics prepared every year starting Service of Ukraine # 111 of May 6, 2011). from year 2011. Improvement of A list of major socio-economic The form of the statistical 5 estimates for small development indicators of cities of bulletin on the socio- areas republican significance in the Autonomous economic condition of the Republic of Crimea, cities of oblast region containing the major significance and raions has been developed indicators of the socio- and approved (Order of the State Statistics economic development of Service of Ukraine # 107 of March 9, cities of the republican 42 2010). significance in the A survey of the socio-economic and Autonomous Republic of financial capacity of village, town and city Crimea, cities of oblast territorial communities has been performed significance and raions is (Request of the Cabinet of Ministers of being unified every year. Ukraine # 21604/0/1/07 of May 14, 2007). The information support to The monitoring of the socio-economic the monitoring of the socio- development of small cities has been economic development of implemented in pursuance of Resolution of small cities is provided the Cabinet of Ministers of Ukraine # 288 annually in pursuance of of April 2, 2009 Resolution of the Cabinet of Ministers of Ukraine # 750 of July 18, 2012, amending Resolution of the Cabinet of Ministers of Ukraine # 288 of April 2, 2009. Recreation and Tourism Statistics at the Regional Level Development of a system of indicators for They are used by local state the assessment of the Recommendations for the development of statistics agencies for the development level of a system of indicators for the monitoring 1. preparation of information areas with of recreational areas of Ukraine have been materials for the recreation/tourism developed. publication. specializations Sub-component C10. Other Statistics (Foreign Investment Statistics) No. Task Implementation Results Current Support 1. The questionnaires of the state statistical observations of investments into foreign economic activities have been improved 1. The data are supplied to Improvement of the (Orders of the State Statistics Committee the National Bank of toolkit and the # 420 of November 6, 2009, and # 115 of Ukraine and the IMF on an 1 methodology of the May 13, 2011). The methodological ongoing basis. direct investment clarifications (Order of the State Statistics survey Committee # 110 of April 1, 2009) and methodological provisions (Order of the State Statistics Committee # 58 of February 15, 2010) have been developed. 2. The Co-ordinated Survey of Foreign Direct Investments in Ukraine as of December 31, 2009, has been conducted under the IMF program with the support from the consultant. Sub-component C10. Other Statistics (Service Statistics) No. Task Implementation Results Current Support Social Services 43 The education account is drawn up annually on the basis of the approved Methodological provisions for the 1 Education services methodology. The results compilation of auxiliary (one hundred are published in the year) education accounts in Ukraine. statistical bulletin "National Education Accounts in Ukraine". The social protection account is drawn up Methodological provisions for the annually on the basis of the Social protection 2 compilation of auxiliary (one hundred approved methodology. The services year) social protection accounts in results are published in the Ukraine. statistical bulletin "National Social Protection Accounts in Ukraine". Non-financial Services The science account is drawn up annually on the The methodology of the compilation of the basis of the approved auxiliary science account has been 1 Science and research methodology. Results are developed as a part of the Methodological services published in the statistical Provisions for Research and digest "Research and Science/Technology Activities Innovation Activities in Ukraine" Component D. Strengthening of Information Basis for Decision Making and Forecasting in the Ministry of Economy(implemented by the MoEDT) No. Task Implementation Results Current Support Sub-component D1. Modernization of data presentation and processing for analytical purposes In order to support The Project resulted in the development of The Decision-making and decision making and the Decision-making and Forecast Support Forecast Support forecasting to create a Information Management System that Information Management special-purpose gives the means to process data based on System is being used by the information system, the key social/ economic/ financial and MoEDT on regular basis. which will facilitate the other indicators of the Ukraine’s economic analytical work development based on the relevant through integration of Microsoft technologies, including the various data sets. following components: • Standard data reporting forms for the data provision to the Ministry; • Data Processing Portal that is used to store and manage different forms, including the input data forms and final consolidated reports; • Statistical Indices Storage Database; • Special uploading tool for the data uploading to the Unified Form Database that contains standard income data forms of the Ministry. The unified forms are available from the Database in the Microsoft Office Excel format; • OLAP Database designed to 44 generate reports representing consolidated statistical indicators; and • Report generating tool with the report updating capacity that is designed to generate reports in the Microsoft Office Excel format. The Decision-making and Forecast Support Information Management System (hereinafter referred to as the IMS) was designed as a single data-processing window of the Ministry to collect and process the current data that flows to the Ministry of Economic Development from the local governments and the relevant institutions, including the statistical data that represents the key macroeconomic/ financial/ social indicators and important web data on the stock exchange indices, other international statistics etc. All the incoming data is collected by the System and made available to the Ministry’s personnel through the IMS Ethernet Web Portal designed based on the Microsoft SharePoint Server 2010 that allows the data being downloaded by the users in Microsoft Office Excel 2010 format. The so-called System Operators generate and upload to the IMS Portal, on requests from the Ministry of Economic Development offices, standard reports, regulatory reports and special user-specific reports that are used by the Ministry’s offices to support their analyses, management initiatives and the decision-making and forecast processes. Sub-component D2. Application of new short- and medium-term forecasting models To upgrade the 1. Five working visits with the capacity of the consultants from MMC MicroMacro Ministry of Economy Consultants BV to Ukraine (which won the to make tender for procurement item D-02.01) were reliable short- and held (February 16-20, April 27-30, June 8- medium-term 12, September 7-11, October 5-9, 2009) economic forecasts: in with the representatives of MoEDT. particular, to During the working missions, develop a forecasting consultants together with experts from the methodology for the Ministry of Economy considered in detail main macroeconomic and substantially finalized each block of indicators with the use the econometric model (monetary, foreign of economic, price, investment blocks, etc.). newly developed short- Also, during the working and medium-term meetings they conducted a macroeconomic forecasting models as analysis of the options of work in the well as to develop integrated econometric model (with a methodology and number of forecast options and temporary 45 practical and permanent shocks simulated). implementation of a The outcome included: short term • -final version of the balance forecasting model on model; the basis of quarterly • -final version of the econometric national accounts and model that allows forecasting of seasonally adjusted key macroeconomic indicators on data produced by the an annual basis; SSCU. • -final version of the independent quarterly module in the integrated system; • -fully functional version of program graphical user interface and the application software to prepare reports; • -final version of the application software to work with different versions of forecasting models, the system of regimented mechanism for user access to the macroeconomic forecasting model; • -complete set of documentation on the system, which includes instructions for users and administrator; • -report on the operational testing of the integrated system using real data and training for the Ministry of Economy employees. Practical capabilities of the short- term annual forecasting module of the integrated model have been used by the Ministry specialists in the development of Ukraine's economy development scenarios based on the combination of external assumptions, including: • -variant increase in the minimum wage; • -variant increase in the price of imported natural gas; • -variant change of UAH exchange rate against the U.S. dollar. 2. Study visits on organizing the macroeconomic forecasting process in the system of state economic policy have been organized. Sixteen representatives of the Ministry of Economy made two study tours: from November 7 to 14, 2010 to London, and from December 5 to 12, 2010 to Paris, France. Component E. Introduction of modern communication and information technologies) No. Task Implementation Results Current Support 46 • Modernization of The questionnaires selected for pilot test The ISDPS has achieved hardware and implementation were chosen optimally. main functionalities generalized The selected questionnaires are the most specified in the project software, complicated forms containing document. especially in heterogeneous data and metadata from Practical realization of these regional statistical enterprises. Successful implementation functionalities shall be offices on the level shall prove that the system should be able verified in the pilot of oblast and to manage all other questionnaires and implementation that is rayon. structures of data. Pilot test planned for October- • Improvement of implementation shall verify all main December 2013. data collection, functionalities of the ISDPS, i.e.: processing and The ISDPS is the solid basis • Design and implementation of storage of primary for deep restructuring of the pilot metadata base (limited to the data, national statistical system of surveys of pilot test dissemination, Ukraine. implementation) publications, ICT • Integrated data capturing and The ISDPS software meets supported editing the objectives specified in cooperation with respondents and • Design and implementing of pilot the project document users. database system However because of the • Implementing the • Integrated processing of data progress in IT and in the system of • Organization of archived data development of the integrated base information infrastructure processing o.f • Pilot production of tables and of the economy during the statistical data, other relevant forms of output lifetime of the project, new metadata and data for selected users functionalities should be paradata (ISDPS) • Migration of output data to other developed (specified above) • Upgrading skills systems • Access of selected users to output The extension of the pilot and competence of test implementation shall staff managing the data base (WEB –mart and computed data base). help to defining the computer systems priorities of developing new on all levels of the Next step planned for 2014 is the functionalities of the statistical system implementation phase of the ISDPS as the ISDPS. of Ukraine. basis of the integrated collecting, processing, storage and dissemination of The center of excellence in statistical data and metadata . In this phase integrated statistical data special attention should be paid on: and metadata system (based in the SSSC, e.g. in IT • changes of metadata and department) seems to be the attributes of metadata items, prerequisite of necessary updating metadata, storage of support for effective and archived metadata and quick implementation of the correspondence tables between ISDPS on all levels versions of metadata, statistical system • editing of input data, with special (independently on external reference to control of producers of the ISDPS completeness and the logical software). control, • possibility of using the methods The impact of the ISDPS on of imputation for missing data, the organization of data • control of comparability of time collecting and series of output data, disseminating, with special • use of different techniques of data reference to the division of entry (paper questionnaires, labor between different electronic forms), levels of state statistical • organization of data capturing on offices, should be an 47 the level of rayon and oblast, integral part of including comparative analysis of implementation strategy of efficacy and quality of different the ISDPS. techniques of data entry, • re-designing of the questionnaires, • elasticity of formulation of queries by end-users, • users friendliness of using the WEB-mart Two statistical products chosen for system’s testing (piloting) assume that ALL functionalities will be tested in order to extend the results of this stage to other statistical products. At the end of testing stage the operational acceptance of system will take place. The results of pilot test implementation on the basis of 2x2x2 (2 x questionnaires, 2 x oblasts and 2 x rayons in each oblast) seem to be sufficient for testing main functionalities of the ISDPS. Positive realization of the pilot test implementation means that the successful completion of the project and DPO are achieved and that the ISDPS is operational for its use in Ukrainian statistics. However, the scope of the questionnaires in the pilot test implementation, although sufficient for testing main functionalities of the software and orgware, does not cover all kinds of questionnaires, that are used in the Ukrainian statistical system. It is suggested, if the project is continued, in the phase of full operational implementing of the ISDPS, planned for 2014, to elaborate detailed specification of functionalities of the ISDPS for all types of surveys, questionnaires and information sources. To reach this objective, it is suggested to specify the sequence of surveys and questionnaires representing main types of surveys, metadata and database systems, representative for usage situations of the state statistics, that will be stepwise implemented to the ISDPS: • one representative questionnaire for each class of statistical respondents: • annual, quarterly and monthly survey (annual data for 3 years, quarterly and monthly data for 18 month period; • surveys using different forms of 48 input data: paper and electronic; • sample survey with changing samples; • metadata base enabling dynamic changes and updating of metadata: classifications, definitions of terms, algorithms of computing output data; • time-series data base; • queries and profiles of end-users for friendly defining of changes of requirements. 49 Annex 3. Economic and Financial Analysis As stated in the PAD, the project is not amenable to a cost-benefit or economic rate of return analysis as national statistical offices have hardly any significant cost-recovery, apart from a small revenue generated from data publications, the financial returns from this project will not be representative of the economic returns. Therefore, it is extremely challenging, if not impossible, to carry out such an analysis and clearly identify the economic impacts of a well-functioning statistical system on the country. The economic benefits from the project derive from the following main sources: • Improved efficiency of statistical operations of the SSSU, resulting in a broader coverage of and higher quality data that affect multiple sectors of society; • Better data will enhance the potential for evidence-based decision making, at policy, program, and project levels; • The project helped to address the significant costs of missing or inaccurate data; • A significant reduction in the cost of data collection through improved systems as well as by moving from full count censuses to sample surveys. The impact on economic development could be assessed in three ways: • the value and costs of delivering current statistics and of generating new and upgraded information; • the long-term cost effectiveness of streamlining statistical work and of efficiency and accuracy gains in reducing labor-intensive statistical operations; and • the impact of reliable data on policy making. It would be quite difficult to evaluate these impacts quantitatively and evaluation methods would be highly subjective. Given that changing policies and practices would create complex and diversified development patterns, relevant and timely information that could help monitoring the rate and direction of change would become an indispensable asset to public and private-sector policy makers. The project would have a very low overall fiscal impact. The effect on recurrent costs resulting from the project is expected to be negligible, since the increase in recurrent costs resulting in the possible higher maintenance costs for the newly installed ICT equipment would be counterbalanced by the decrease in the existing high maintenance costs of the current obsolete equipment, and by the decrease in data collection costs due to rationalization of the data collection plans. Although this is a non-revenue generating public sector reform project to improve statistical capacity, it should lead to considerable cost reduction through better management and the abolition of costly and archaic methods and processes, as well as undesirable duplication of effort. Some revenue may eventually be generated by sales of information, statistical products and services in the planned information centers. 50 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Misha Belkindas Economist ECSP3 Svetlana Budagovskaya Senior Economist ECSP3 Neil James Fantom Senior Statistician DECDG Task Team Leader Richard Gargrave Procurement Specialist ECSO2 Timothy Heleniak Consultant ECSH2 Olga Ivanova Economist ECSP3 Task Team Leader Vitaly Kazakov Financial Management Specialist ECSO3 Maria Koreniako Program Assistant ECCUA Senior Financial Management Galina S. Kuznetsova ECSO3 Specialist Ganna Musakova Senior Program Assistant ECCUA Craig R. Neal Senior Public Sector Specialist ECSP4 Jonathan David Pavluk Senior Counsel LEGOP Supervision/ICR Anarkan Akerova Counsel LEGCF Irina Babich Financial Management Specialist ECSO3 Oleksiy Balabushko Public Sector Specialist ECSP4 Misha Belkindas Consultant ECSP3 Svetlana Budagovskaya Senior Economist ECSP3 Task Team Leader Cem Dener Senior Public Sector Specialist PRMPS ICR Task Team Mustafa Dinc Senior Economist/Statistician DECDG Leader Neil James Fantom Senior Statistician DECDG Task Team Leader Gulnara Febres Senior Operations Officer CFPTO Richard Gargrave Procurement Specialist ECSO2 Vitaly Kazakov Financial Management Specialist ECSO3 Tetiana Komashko Program Assistant ECCUA Maria Koreniako Senior Program Assistant ECCUA Tetiana Kovalchuk Team Assistant ECCUA Knut J. Leipold Senior Procurement Specialist ECSO2 Jozef Olenski Consultant ECSP3 Craig R. Neal Consultant ECSP4 Irina Shmeliova Procurement Specialist ECSO2 Senior Financial Management Rajeev Kumar Swami ECSO3 Specialist Yulia Tomilenko Program Assistant ECCUA Anna L Wielogorska Senior Procurement Specialist ECSO2 51 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY02 13.56 45.05 FY03 29.07 105.36 FY04 18.61 38.44 FY05 -0.01 -0.03 FY06 0.00 0.00 FY07 0.00 0.00 FY08 0.00 0.00 0.00 Total: 61.23 188.82 Supervision/ICR FY02 0.00 0.00 FY03 0.00 0.00 FY04 7.28 4.54 FY05 24.19 40.92 FY06 30.83 78.42 FY07 31.38 80.06 FY08 32.09 97.50 FY09 39.33 116.55 FY10 34.83 92.22 FY11 35.76 87.02 FY12 30.38 106.76 FY13 26.84 63.87 FY14 N/A N/A Total: 292.91 767.86 52 Annex 5. Beneficiary Survey Results A formal beneficiary survey has not been conducted, but a World Bank mission visited Kiev, Ukraine on June 21-30, 2011 as part of the ICR preparation process to review implementation progress of the completed components A-D of the DEVSTAT project and conducted interviews with beneficiaries. The list of people interviewed and the questionnaires used are provided in Annex 5. A follow-up mission visited Kiev, Ukraine on October 7-18, 2013 for the DEVSTAT project ICR preparation. Both missions held meetings with relevant stakeholders and discussed the project results and outcomes. In addition, the second mission has visited one large regional office, Kiev City, and a small rayon office, Kiyevo-Sviatoshynskyi rayon to observe the project results outside of the central office. The interviews with the beneficiaries of the DEVSTAT project showed that the results of the project are positive and confirmed the project outputs stated in Annex 2. The interviewed respondents consider that the project was timely and important in bringing the statistical system of Ukraine up-to-date with the internationally accepted standards and classifications. All of the interviewed beneficiaries of the project stated that the project positively influenced their own professional development and skill sets that provided them with a confidence in their own capacity to operate in a more efficient way. There have been noticeable changes in institutional structure of the state statistical system of Ukraine. The project helped increasing reliability, timeliness and quality of the statistics produced in Ukraine, which, in turn, increased the trust in the statistical system. All interviewed beneficiaries stated that the capacity of their respective agencies to collect, process, disseminate the data has significantly improved, and they will be able to sustain these gains in coming years. However, they have also mentioned that there will be a need for future support to address the new needs, which will more likely arise from the full implementation of ISDPS. 53 Questions for meetings with the beneficiaries of the DEVSTAT project (SSSU, NBU, MOF and MoEDT) • How has the situation in respect of statistics in Ukraine changed since 2005 on: o Institutional development; o Capacity building (HR and infrastructure); o Availability and quality of statistics (Data development)? o Prompt: Compare situation in 2005 with current situation (June 2011) • What has been achieved (outcomes) by the DEVSTAT project: o How has the project helped implementation of the Statistical Master Plan of Ukraine (SMP)? • On the DEVSTAT project inputs: o Has the TA (international expert advice, study tours, training) been effective and addressed the right topics and participants? o Were the inputs focused on implementing DEVSTAT? Were they delivered efficiently? o What is your opinion of the ADETEF International Consortium (France) assistance to the DEVSTAT project implementation? o What other external inputs have there been: equipment, survey funding, other development partner projects? How will you evaluate these developments and contributions of the DEVSTAT to statistical capacity building in Ukraine? • On the DEVSTAT project outputs: o What are the main outputs of your component of the DEVSTAT project? o What are you proud of most? o Is the methodology and data collection/analysis procedure in line with the international standards? • Have relationships with users of statistics and other producers (within SA and with other institutions) improved since 2005? • Have relationships with development partners and donors improved since 2005? • Has the project been well managed: o By Project Implementation Team? o By ADETEF Consortium? o Has it in your opinion given value for money? o By other beneficiaries of the DEVSTAT project? o Was there a fruitful partnership between the beneficiaries? o Were there any problems and challenges that were not resolved? • Were the financial disbursements made in time by the World Bank? • What lessons have been learnt in implementing the DEVSTAT project? • Are the achievements/ gains sustainable? – on: o Institutional development; o Capacity building (HR and infrastructure); o Availability and quality of statistics (Data development)? What else is needed to sustain gains and/or to make further gains? If there is a reincarnation of the DEVSTAT project in any other way, what would you recommend as a focus of this potential new Technical Assistance project? 54 Questions for DEVSTAT Project Implementation Team • Has the DEVSTAT project been (a) efficient; (b) effective in support of implementation of the SMP; (c) given value for money? • What lessons have been learned? • Are the achievements/ gains sustainable? • What else is needed to sustain gains and/or to make further gains? • On project inputs: o In general, has the TA (expert advice, study visits, training) been effective; e.g. has it addressed the right topics and participants? o How are the topics and participants for study visits, training, etc. selected? o Were the inputs focused on implementing SMP? o What is your opinion of the “twinning” arrangement to facilitate contacts with and advice from other statistical agencies? o What other external inputs have there been: equipment, survey funding, other development partner projects? • Have development partners “behaved” themselves: allowing country leadership, coordination, alignment with SMP, etc. • How well do relationships with the subject matter teams (and between the subject matter teams) work? Any room for improvements? • Has PIT been well supported by the SSCU management, the ADETEF Consortium, the World Bank, National Bank of Ukraine, Ministry of Finance and Ministry of Economy of Ukraine? Other development partners? • How appropriate and effective are the accountability and monitoring/evaluation processes? • Has the DEVSTAT project given value for money? • Can you give some anecdotal evidence, personal reflections on the results of the DEVSTAT project, which, in your opinion, changed your way of thinking or performing at work? • How would you rate the project in terms of its efficacy, efficiency, and relevance to the country needs? 55 Persons met during the World Bank mission to Kiev, Ukraine, June 24-30, 2011 State Statistical Committee of Ukraine (SSCU) Mr. Osaulenko, Olexander Chairman Mr. Pischeiko, Vadim First Deputy Chairman Mrs. Shyshkina, K. Project Coordinator Mrs. Kuzmina, Iryna Project Implementation Unit (PIU) Head Mr. Chaban, N. PIU Consultant Mrs. Nikitina, Iryna Director of the Department of Macroeconomic Statistics Mr. Prokopenko, Oleg Director of the Department of Agricultural Statistics Mrs. Pugachova, Marina Director of the Research Institute of the SSCU Mrs. Kruglyak, Valentina Deputy Director of the Department of Trade Statistics Mrs. Kalachova, Irina Director of Statistics of Services Department Mrs. Ovdenko, Lyudmila Director of the Department of Industrial Production Statistics Mr. Fryzorenko, Anatoliy Director, Department of Trade Statistics Mrs. Timoshenko, Galina Director, Department of Population Statistics Mrs. Zhuk, Irina Director, Department of Statistics of Entrepreneurship Ms. Ostapchuk, Olga Director, Department of Planning and Organization of Statistical Observations Mrs. Shkurskaya, Irina Deputy Director, Department of Price Statistics Mrs. Kalabukha, Olga Deputy Director, Department of Price Statistics Mrs. Osipova, Inna Director, Household Surveys Department Ministry of Economy of Ukraine Mrs. Kryuchkova, I. Deputy Minister of Economy of Ukraine Mrs. Gorshkova, Natalia Director; Macroeconomics Department of the MOE Mrs. Gerasimovich, Viktoria Deputy Director of the Department of Informatization Duda M. Deputy Director, Macroeconomic Department National Bank of Ukraine (NBU) Mr. Golovko, V. Head, Department of Accounting and Reporting Andreichuk V. Deputy Director, Department for Statistics and Reporting Galchinska, N. Head, Department of BoP Chepurnova, N. Deputy Head, Department of BoP Ministry of Finance of Ukraine Ms. Litkovska V. Deputy Director; Department for IFO Co-operation, Head of Unit for WB Projects Financing Ms. Kalinichenko L. Head of Unit for Economic Statistics, Macroeconomic Forecasting Department Makatsaria Ms. Kolosova, V. Pratsiuk M. Lead Economist 56 Annex 6. Stakeholder Workshop Report and Results N/A 57 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR I. Evaluation of the final result, in accordance with the agreed objectives of the project, Development of the State Statistics System for Monitoring the Social and Economic Transformation, including the Additional financing of the project (hereinafter, the Project). Rating: good (one of the main reasons for the delay in implementation of the Project was long-time ratification of the Loan Agreement № 4729 - UA 15 July 2004 by the Parliament of Ukraine) The objective of the Project is the development of the sustainable state statistical system that ensures effective and timely provision of accurate data for policy evaluation and decision making – in general achieved, as evidenced by the work that has been performed under the Project. As a result of the Project, the target value indicators for monitoring the Project implementation are achieved, and relevant information is provided in the Appendix. Comprehensive performance indicator of statistical capacity of the state statistics bodies of Ukraine corresponds to the specified target value and has been increased from 2.9 points to 3.5 points during the implementation of the Project. The execution of the Project, including actions of the Additional financing, has assured substantial positive changes in the development of the sustainable state statistical system of Ukraine due to the strengthening of statistical infrastructure; testing and introduction of the new methods, that meet up-to-date international statistical standards, into national practice; upgrading of professional skills of the state statistical bodies staff related to the introduction of new methodology and use of new software products. Moreover, due to the Project, the software and technical infrastructure at all levels has been fundamentally improved that allowed to increase the work productivity and effectiveness, and enabled further introduction of the Integrated statistical data processing system (ISDPS). Project implementation was carried out by separate components of the Project in accordance with the set goals and objectives. The key results of the project are the following. Under the implementation of the Component A (Organisational Development and Management), in 2009, the modern press-center equipped with video conference facilities was created. The mentioned enabled new organization of the current work of the state statistics bodies, information dissemination, training of experts at all levels. The availability of the press-center contributed to considerable reduction in the number of business trips and the related costs. To fulfill the objective on staff development, a number of English language courses for the staff from the headquarters of the State Statistics Service of Ukraine (SSSU) were conducted. It enhanced the capacity of the employees to work with the methodological documents of the leading international statistical agencies. Besides, with regard to the harmonization of national statistics with the European standards, more than 40 legal acts, classifications and methodological documents as well as manuals of UNECE, Eurostat, 58 OECD and national statistical institutes of the EU member states on various areas of statistics were translated to be employed in everyday work. Components B (Statistical Infrastructure) and C (Data Development) were implemented by the State Statistics Service of Ukraine under the single contract, which covers 16 areas of statistics, and which performance enabled the SSSU staff (at the central and regional levels) to get acquainted with the up-to-date European practice in various areas of statistics, develop new and update the existing techniques, test new surveys and technologies for data collection. Execution of the measures under the Project contributed to the realization of objectives, set by the Strategy of the State Statistics Development for the Period till 2012, and harmonization of the national statistics with the European statistical standards. Recommendations given by the European experts are used to further improve the system of state statistics in Ukraine. Activities aimed at improving the government finance statistics were accomplished by the Ministry of Finance of Ukraine. The National Bank conducted activities focused on the improvement of the methodology for the monetary and banking statistics, balance of payments, external debt and international investment position statistics. Experts from the Ministry of Finance of Ukraine and the National Bank completed training to develop skills in the relevant subject-matter area and English language. In the framework of the Project, the Ministry of Finance of Ukraine and the National Bank procured the equipment required to enhance their capacity to produce relevant statistics. The Ministry of Economic Development and Trade under Component D of the Project (Strengthening of Information Basis for Decision Making and Forecasting in the Ministry of Economy and the European Integration) implemented measures aimed at applying new short- and medium-term forecasting models and modernization of data presentation methods, and data processing system used for analytical purposes. In particular, the following items were developed: • applied software, Integrated system of macroeconomic forecasting models, that allows to compile short and medium term forecasting of main macroeconomic indicators quickly and comprehensively, monitor the balance ratio between the main economy sectors, edit the existing econometric model equations based on changes in the economic structure and new development conditions; • software, Information-analytical system for decision-making and forecasting, for automated data collection, accumulation, processing, storage and use of reliable economic information. The relevant training of the Ministry staff was conducted to ensure the operation with the developed systems. The key component of the Project was Component E (Introduction of Modern Information and Communication Technology), activities under which were intended to improve the processes of statistical data collection and processing. According to the Project objectives, a series of activities on Integrated Statistical Data Processing System development was fulfilled. In particular: • fulfilled testing of the approaches on two-level statistical data processing system introduction(2006); 59 • ISPSD design taking into account the latest achievements of the Statistical Services of other countries was developed (2008); • In order to manage the Sybase databases, the standard software by which the ISPSD was developed as well as the software providing the analysis and processing of the SPSS statistical information were purchased; • During May 2010 - December 2013 the direct development, limited migration and ISPSD testing were fulfilled. Limited testing of the System was carried out on the basis of the two state statistical observations conducted in two regional offices and four district statistical divisions to ensure its operational acceptance. As a result of the works a new system was developed based on metadata. This system is supposed to provide data processing operation debugging for all statistical observations without the development of specific software for data processing. The developed system was deployed at the regional level to ensure the necessary training of personnel working with ISPSD and building the base for further implementation of ISPSD throughout the country. In the frameworks of strengthening of the technical infrastructure of the state statistical bodies of all levels, the office, printing, computer and server equipments were purchased. Taking into account the actual lack of computer equipment at the district level and to create basic working conditions for territorial authorities, the first procurement of computer and server equipment was made in 2007. In addition, the local computer network of the state statistical bodies was upgraded and expanded and centralized IT infrastructure was created. It made possible to increase the level of computer equipment, in particular at local and regional levels, as well as provide a basis for further ISPSD development. With the aim of creating the necessary technical conditions for development, testing and further implementation of ISPSD, the SSSU purchased: additional software for Sybase databases management at the central and regional levels to create the test environment for ISPSD; additional hardware that meets the requirements of the installation of ISPSD and server equipment both for initial testing purposes of ISPSD and tasks of its further implementation. As a result, 100% equipment level of the regional statistical bodies with computers was provided. It allows carrying out further activities on implementation of ISPSD. Within the framework of the additional financing of the Project, the air conditioning in ISPSD datacenters’ server premises at the central and regional levels was upgraded to create favorable technical conditions for further ISPSD functioning (54 units of equipment were purchased and installed). With the aim of creating collective networking resources for printing the source documents from the ISPSD users’ automated workplaces, the technical environment of the ISPSD functioning was upgraded by retrofitting the complex of technical means at the central and regional levels with 120 laser printers. To support the functioning of the system of processing and displaying the streaming media (PDSM) and to ensure the learning process for the ISPSD users, more servers of the system (PDSM) were purchased. 60 To ensure the further use and work with the software products that have been purchased and developed within the framework of the Project, the training for the state statistics bodies’ staff was conducted to learn: SPSS software for processing and analyzing statistical information (210 persons), Sybase software for database management (82 persons) and specialized training of the SSSU staff at central and regional level, that is to be involved in the implementation and use of the ISPSD, ISPSD functioning (600 persons). To provide further support to the ISPSD users during its operation, the customer support was established. II. Evaluation of the Borrower work (responsible executive of the Project State Statistics Service of Ukraine) at the project preparation and implementation stages and the acquired experience that can be useful in future Rating: good. The implementation of the Project was carried out by State Statistics Service of Ukraine (before 2012, the State Statistics Committee of Ukraine, the responsible executive of the Project) in collaboration with three other beneficiaries - Ministry of Finance of Ukraine, that is also the Borrower on the side of the Government of Ukraine, and the National Bank of Ukraine, that are also the developers of the sectoral statistics, and the Ministry of Economic Development and Trade, that is the key user of statistical information. At the stage of the Project preparation, a group of consultants on the project preparation was involved, that, together with the World Bank and all the beneficiaries of the Project, have designed the set of the project documentation: Description of the Project Strategy "Development of the State Statistics System for Monitoring the Social and Economic Transformations Project", feasibility study, procurement plan, implementation plan, Guidance on the rules and procedures of the Project management. To ensure coordination of the Project works, the interagency working group for coordination and monitoring of the projects has been created and maintained (Cabinet of Ministers of Ukraine of 11 February 2004 № 75 -p with changes and amendments). For the purpose of the Project management in the SSSU, the Project Implementation Group was established, which provided the implementation of all Project activities, including financial management, procurement, organization, preparation of reports, project assessment and monitoring. The management of the Project Responsible Executive has made every effort to ensure the timely and effective implementation of the Project activities by monitoring the implementation of the planned activities, coordination and solving the project technical and managerial issues with the World Bank, coordination of the works under the World Bank project and other international cooperation projects in the area of statistics. If at the beginning of the project implementation due to the lack of sufficient experience and knowledge of the World Bank rules and procedures and the rotation in the management of the project beneficiary ministries, some delays in the implementation of the Project activities or with payments posting were observed, then further realization was done timely or without significant procedure problems. The Ministry of Finance of Ukraine that is a Lendee on the side of Ukraine’s government provided the needed 61 consultative support to an Executive in charge in implementation of the practical tasks connected with the financial part of the Project management. The experience obtained by the Executive in charge and other beneficiaries of the Project in the part of the preparation and realization of the Project is very useful since it allowed to receive the needed skills which have been used during implementing the procedure of Additional financing of the Project and could be used in the future to prepare and implement the projects financed by IFO. III. Assessment of the World Bank work at the stage of the Project preparation and implementation including the effectiveness of their interrelations and the experience obtained. Assessment: good During the whole period of the Project preparation and implementation, the close cooperation between the World Bank and the Lendee (the Ministry of Finance), the Executive in charge (the SSSU) and other Project beneficiaries was established. Under the support and during consultations with the World Bank experts, the development of all initial Project documents was made. To prepare the Project Development of the State Statistics System for Monitoring the Social and Economic Transformation, the Japan government grant was received with the assistance of the World Bank. During the Project implementation, the Project management from the part of the World Bank, the Bank experts in purchasing, IT matters, financial management provided the needed consultations on different issues that have had the executives in charge. In order to assess the state of play of the Project implementation, twice a year the World Bank launched the assessment missions which assessed the current status of the project, coordinated actions for more effective Project implementation and defined the steps to achieve the Project objectives. Based on the results of its missions, the World Bank prepared and forwarded the Memos to the Lendee to be taken into account in further work. The Project manager on the part of the World Bank made a constant monitoring over the Project implementation through the constant feedback with the Project Executive in charge. If at the initial stage of the Project implementation the consideration of the selected documents connected with the purchasing was rather long, later on the documents and all requests from the Lendee were considered by the Bank in a timely manner. The Project management on the part of the World Bank always tried to suggest the approaches for more effective and efficient implementation of some or other Project actions under the framework of the rules and procedures of the World Bank. Also, the World Bank supported the Lendee's request to provide Additional financing for the Project and ensured a significant support during the procedure for preparing and coordinating the documents for the Additional financing of the project in 2012. The constructive dialogue and openness during the cooperation helped create the team spirit and confidence between the World Bank and the Lendee. All comments, consultations and recommendations on the part of the World Bank experts on different matters concerning the Project implementation, especially on issues regarding information technologies, the Project financial and administrative management helped 62 implement the Project actions and achieve the targeted objectives as well as improve the knowledge and skills of the Lendee staff involved into the Project implementation. IV. Plan for further development and support to the results achieved during the Project implementation Proceeding from the results achieved during the Project implementation and taking into account the further tasks faced by the state statistics bodies, the SSSU prepared the draft Action Plan aimed at further development and support to the results achieved during the Project implementation. The ISDPS implementation into industrial practice requires the transition of the rest of statistical surveys into the integrated system and this is a long and labor consuming process since it requires the development of metadata for each survey, migration of data from the existing complexes of electronic processing into the new integrated system, approbation, etc. The ISDPS implementation and functioning needs the realization of a complex of activities in different statistical directions including information and communication technologies and statistical infrastructure. I. Further development of Information and Communication Technologies • The implementation of the Integrated Statistical Data Processing System (ISDPS) in the regional statistics offices. • Modernization of the system for collecting the state statistical reporting in electronic format and its integration with the ISDPS. • Development of the corporate network of the state statistics bodies regarding involvement of district level into the ISDPS work. • Confidentiality and security of data through creation of the comprehensive system for protection of information, corporate information and telecommunication system of the state statistics bodies. • Expansion of uses of specially-tailored software IBM SPSS Statistics in statistical activity. • Training of the IT experts and statisticians who work with the updated technical and software means. II. Further development of Statistical infrastructure • Modernization of the register of statistical units. • Automation of the processes to update data from the Statistical register of enterprises (SRE) based on the results of the state statistical observations and administrative sources in order to launch observation over the demography of enterprises and prepare data according to annex 9 of Order 295/2008 of the European Parliament and EU Council of Ministers, upgrade the quality of the register and ensure relevant status of statistical units list for short-term surveys (monthly, quarterly). • Improvement of the tools to design samples and its integration with the register of statistical units. • Development of the statistical metadata system: 63 o Establishment of the unified systemized catalogue for statistical indicators which would be used at all stages of statistical production: starting with the definition of the needs of users and up to dissemination of statistical information as well as filling-up the metadata base of the Integrated Statistical Information System. o Creation of the standard template for meta description for statistical observation harmonized with the European standards. III. Organizational development and management • Modernization of the system to train and re-train the staff. • Improvement of the relations with respondents and suppliers of data. 64 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders N/A 65 Annex 9. List of Supporting Documents 66 1