Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Public Sector Modernization Project (P101614) EUROPE AND CENTRAL ASIA | Kosovo | Governance Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 10 | ARCHIVED on 15-Jan-2016 | ISR22139 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:04-Feb-2010 Effectiveness Date:17-Jun-2011 Planned Mid Term Review Date:30-Jun-2013 Actual Mid-Term Review Date:30-Oct-2013 Original Closing Date:30-Jun-2013 Revised Closing Date:30-Jun-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) (a) To strengthen the performance of key budget organizations in budget formulation, budget execution, and public procurement; (b) To establish the foundations for fiscally sustainable payroll management and effective human resource management in the core civil service; and (c) To create conditions for further automation of government work processes and for development of e-government applications. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Improving public financial management performance in selected budget organizations:(Cost $3.00 M) Component 2 - Improving payroll administration and laying the foundations for a professional civil service:(Cost $2.05 M) Component 3 - Increasing the security and efficiency of government information systems:(Cost $2.30 M) Component 4 - Project management, including project audit and evaluation:(Cost $0.40 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 1/15/2016 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Implementation Status and Key Decisions IMPLEMENTATION STATUS OVEVIEW Progress toward achievement of the PDO remains Moderately Satisfactory. Overall Implementation Progress remains Moderately Satisfactory. While substantial advances were made earlier in implementation of the new Job Catalogue in all central government agencies and municipalities along with introduction of the Human Resource Management Information Systems (HRMIS) and its performance appraisal module, the expected government decision completing transfer to the new system in 2016 has not been issued. Introduction of the e-procurement system is also behind the schedule, although an announcement of its piloting was made on January 5, 2016 by the Prime Minister Isa Mustafa. These delays prevent the team to increase either progress toward achievement of the Project Development Objective or Overall Implementation Progress ratings and therefore, they remain at "MS". Disbursement is at 84% of the total project funds (97% of the Grant and 73% of the Credit). Majority of project savings have been contracted to supplement funding for existing activities and to new activities. 1/15/2016 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  High Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  High Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Improved quality of budget formulation and execution in the budget organizations that would participate in the proposed project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PEFA assessment 2009 indicators: # PI-1: score: C (actual PEFA PI-1 expenditure deviated from PEFA 2013 PEFA 2013 score B; budget by more than 15% PEFA PI-12 in one of the last three PI-01 = B PI-01 = B (iii), (iv) score years); PI-12 = C+ PI-12 = C+ B; # PI-12 (iii, iv): Multi-year PI-12(iii) = C PI-12(iii) = C At least 4/5 perspective in fiscal Value PI-12 (iv) = D PI-12 (iv) = D beneficiary planning, expenditure Disaggregated data Disaggregated data organizations policy & budgeting # score: provided separately provided separately meet at least C PI-12 (iii) score: C; PI-12 Quality indicators Quality indicators 5/7 (iv) score: D; partially met partially met intermediate # Only 3/7 quality outcome indicators of budget indicators submissions met by all 5 beneficiary BOs; no BO meets 3 quality indicators 1/15/2016 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) for budget execution Date 30-Jun-2009 30-Sep-2014 30-Sep-2014 30-Jun-2016 PHINDPDOTBL  Increased bidder participation in public procurement tenders and cost savings achieved through Quick Gains actions and e- procurement modules (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met, mostly due to recent successes in the Centralized 8,270 bidders participated Procurement. in procurement tenders in 2008 (1.7 bidders per The e-procurement contract); contract implementation No electronic procurement is under implementation. transactions; Currently the PPRC and QG study reports the vendor are working significant price disparities on testing of system within procurement modules and preparing categories in the same for final testing and year (2008): piloting of the system in # Civil works/ roads: up to six selected contracting 90%; Bidder authorities (Ministry Of # Maintenance: 39% participation Infrastructure, Ministry of # Security: 41%; increases by Local Government # Buildings rental 64%; 15%. Administration, Ministry # Food 95%; of Public Administration, # Medicines 17-70%; Price disparities Ministry of Finance, # Office supplies 26%; in QG Recently signed e- Ministry of Environment # Fuel 9.3% in a year/ up procurement procurement contract and Spatial Planning, Value to 31% in a month categories do will capture respective and Kosovo Energy not exceed indicators Coorporation). The 10% in the contract completion date No electronic procurement same year. is December 15, 2015 transactions and therefore, Cost savings of implementation is QG study reports at least 5% for significantly behind significant price disparities each category project schedule. The within procurement achieved. PPRC and vendor have categories in the same requested non-cost year (2008): extension of the e- # Civil works/ roads: up to procurement contract 90%; until April 30, 2016. The # Maintenance: 39% Bank granted an # Security: 41%; extension conditional of # Buildings rental 64%; progress with # Food 95%; implementation. # Medicines 17-70%; # Office supplies 26%; # Fuel 9.3% in a year/ up The Central to 31% in a month Procurement Agency (CPA) through centralized procurement 1/15/2016 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) procedures conducted procurement in 11 categories. The contracts for Supply of Wood and Coal (for heating) are signed and under implementation; The contracts for Supply with Fuel, Heating oil, Air Tickets, Wooden Pellet and Office Stationery are waiting for the Minister’s signature; The contracts for Supply of Tires, Sanitary/hygienic products, Cleaning services and Food articles are under procurement procedures. According to the information provided by the CPA for two centralized procurement contracts that are under implementation (Supply of Wood and Coal), contract prices or unit prices are about 15-25% lower comparing to market prices or previous contracts. Date 30-Sep-2009 30-Nov-2014 15-Dec-2015 30-Jun-2016 PHINDPDOTBL  Transparent and coherent pay and grading structure introduced in the core civil service supported by improved ICT systems that enable effective fiscal and management controls in payroll administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met. 100% of The Methodology (Job permanent civil Catalogue) for Job No grading system in the servants Classification and new civil service; graded; Grading System are Wide pay variations among Equal bases developed and adopted civil service bodies; pay for posts of by the government. Value PEFA indicator PI-18 -- equal grade Based on this (effectiveness of payroll and salary step methodology ~90% of controls) score: D+; across civil government institutions No link between HRMIS, service bodies; have completed job payroll, and Treasury Improved PEFA classification and PI-18 score (C+ grading of their civil or above) servants and sent their proposal for review to 1/15/2016 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) the Joint MPA-MoF Commission. Review and approval of proposals from the Joint Commission are the last steps before the new Job Classification and grading system shall be adopted by the Government decision. Link between HRMIS, Payroll and Treasury are still not operational. Although the link between HRMIS and Payroll was established in test environment - technically (because it was a part of the PSMP- subcomponent 2B), the link was not functional and HRMIS and Payroll system were not interoperated due to lack of new Job Classification and grading structure at the time of testing. Recently, after completion of ~90% of Job Classification and grading structure and due to preparations for system wide implementation of the new Job Classification and grading structure, the MPA decided to test/pilot within the MPA the link between HRMIS and Payroll in December 2015. Therefore, some updates expected at the time of the next supervision. Date 30-Sep-2009 01-Nov-2013 15-Dec-2015 30-Jun-2016 PHINDPDOTBL  Enhanced security and interoperability of government information systems (through centralized data storage and systems maintenance,and interoperability framework) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No adequate, secure data The National Data Fully met. Data center is Value storage and backup facility Center was operational; for major ICT systems; inaugurated in The National Data Reduced risk of 1/15/2016 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) No interoperability February 2014 and is Center was inaugurated data loss; between major ICT fully operational. in February 2014 and is Improved systems fully operational. access to data control and In addition, the ICT physical Security Management security; Framework for Kosovo New systems Government ICT developed Systems is developed according to and adopted by the the MPA. interoperability framework. Date 30-Sep-2009 01-Nov-2013 31-Mar-2014 31-Dec-2014 Overall Comments Intermediate Results Indicators PHINDIRITBL  Improved quality of budget and MTEF submissions of beneficiary budget organizations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Beneficiary BOs comply with 3 out 7 budget Partially met- Partially met- All 5 beneficiary Value submission quality criteria performance differs performance differs BOs meet the 7 (see comment for across beneficiaries. across beneficiaries. quality criteria explanation) Date 30-Sep-2009 30-Sep-2014 30-Sep-2014 30-Jun-2016 PHINDIRITBL  Improved budget execution rates by beneficiary budget organizations (BOs) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (a) Deviation from original approved budget expenditure by beneficiary a. Partially met. Health a. Partially met. Health BOs does not exceed 10 met, Education and met, Education and percent (in aggregate and Agriculture did not. Agriculture did not. by BO) for the year. All beneficiary (3/5=NO) BOs meet the b. Partially met. b. Partially met. interim Agriculture and Health Agriculture and Health Value (b) Variance in expenditure outcome met. Education did not. met. Education did not. composition exceeds indicators for overall deviation in primary budget c. Partially met. c. Partially met. expenditure by no more execution Education met, others Education met, others than 5 percentage points did not. did not. for the year. (5=NO) (c) Targets (expenditure and milestones) for at least 1/15/2016 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) 70 percent of projects in approved budgets are achieved. (5= NO) Date 30-Sep-2009 30-Sep-2014 30-Sep-2014 30-Jun-2016 PHINDIRITBL  Status of public procurement activities is regularly monitored through contract management information system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Not yet achieved. PPA and PPRC use electronic Contract Management system to Information System is regularly No central capacity exists part or one of the E- monitor public Value to monitor procurement -- procurement system procurement cycle modules. Successful activities by all completion of the e- contracting procurement contract authorities in will ensure updates Kosovo before the end of PSMP. Date 30-Sep-2009 01-Nov-2013 15-Dec-2015 30-Jun-2016 PHINDIRITBL  HRMIS functions as a civil service registry and online data links between HRMIS-payroll-Treasury systems enable effective fiscal and management controls in payroll administration (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met. Partially met - HR MIS pilot was completed in HRMIS is rolled out in all the MPA and initiated government institutions, in five more public but use of the system is institutions: in five more with limited government functionalities/modules. HRMIS does not include institutions: Ministry of Business processes HRMIS rolled grade or salary step data; Education, Ministry of related with recruitment out in all civil Value includes only personnel Local Government in Civil Service, requests service data for 3 civil service Administration, and for approval of new job organizations organizations Agency for Data positions and Protection, Agency for recruitment processes Administration of are going only through Sequestrated or HRMIS. Leave Confiscated Assets management also done and in one municipality. through the HRMIS. Date 30-Sep-2009 01-Nov-2013 15-Dec-2015 30-Jun-2016 1/15/2016 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) PHINDIRITBL  Performance appraisal system is introduced and used as a basis for progression along salary steps (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met. The new guideline for implementation of the new performance appraisal system is developed and adopted by the Minister of MPA. The HR managers are Managers trained for trained (no.); No regular performance implementation of the Performance appraisal system or Value not yet achieved. new performance appraisal mechanism for salary appraisal system. launched in progression pilot From January 2015 all organizations civil service organizations have started implementation of the new performance appraisal system, BUT without using it for salary increases for the years 2015 and 2016. Date 30-Sep-2009 01-Nov-2013 15-Dec-2015 30-Jun-2016 PHINDIRITBL  Ministry responsible for public administration has necessary capacity to exercise key human resource management functions for the core civil service (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Partially met. The Department for Civil Service Administration (DCSA) within MPA increased its capacities through trainings. The Department DCSA regularly is responsible for training personnel civil service MPA Department of Civil officers from all management Value Service Administration has partially met. government institutions has staff 25 staff (14 in payroll unit) to exercise some of key trained in all human resource core HR management functions functions for the civil service, e.g., usage of the new Job Catalogue, Performance appraisal, HR planning, etc. 1/15/2016 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Date 30-Sep-2009 30-Nov-2014 15-Dec-2015 30-Jun-2016 PHINDIRITBL  Centralized data management and systems maintenance leads to efficiency gains (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Fully met. The Data Center (DC) is fully operational and provides higher than expected savings. From the time that DC became operational in February 2014, most of government institutions have started to use DC infrastructure for their IT systems (Software applications) that they previously hosted outside, including maintenance services. Approx. EUR 0.15 million Cost savings annual spending on The largest savings to- from ICT partially met. Data duplicated maintenance, date are coming from systems center is operationa, Value plus some EUR 0.4 million the hardware, because maintenance of but cost savings have in duplicated equipment now some of institutions 30% (compared not been estimated yet. and development of stand- do not spending to stand-alone alone systems anymore on core systems) hardware. for example, the Ministry of Health (MoH) is introducing the Health Information System (HIS) and have agreed with MPA to host HIS using DC infrastructure, servers, storage, core networking equipment, maintenance services, etc. Therefore, the MoH avoided investments in centralized equipment and infrastructure (new server room, core networking, storage, etc.) for HIS. 1/15/2016 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Date 30-Sep-2009 30-Nov-2014 15-Dec-2015 30-Jun-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P101614 IDA-46920 Effective XDR 2.90 2.90 0.00 2.13 0.77 73% P101614 IDA-H5450 Effective XDR 2.30 2.30 0.00 2.23 0.07 97% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P101614 IDA-46920 Effective 04-Feb-2010 10-Mar-2010 17-Jun-2011 30-Jun-2013 30-Jun-2016 P101614 IDA-H5450 Effective 04-Feb-2010 10-Mar-2010 17-Jun-2011 30-Jun-2013 30-Jun-2016 Cumulative Disbursements 1/15/2016 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Public Sector Modernization Project (P101614) Restructuring History Level Approved on 23-Jul-2012 ,Level 2 Approved on 03-Sep-2014 ,Level 2 Approved on 02-Dec-2014 Related Project(s) There are no related projects. 1/15/2016 Page 12 of 12 Public Disclosure Copy