Public Disclosure Copy The World Bank Implementation Status & Results Report Serbia - Public Sector Rightsizing and Restructuring (P158875) Serbia - Public Sector Rightsizing and Restructuring (P158875) EUROPE AND CENTRAL ASIA | Serbia | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 1 | ARCHIVED on 22-Jun-2017 | ISR28442 | Implementing Agencies: Ministry for Public Administration and Local Self-Government, Ministry of Finance Key Dates Key Project Dates Bank Approval Date:21-Apr-2016 Effectiveness Date:22-Sep-2016 Original Closing Date:30-Jun-2018 Revised Closing Date:30-Jun-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Trust Fund is to assist the Republic of Serbia in improving the organizational and functional structures of its public administration system in accordance with the Strategy for Public Administration Reform. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Moderately Satisfactory Overall Implementation Progress (IP)  --  Moderately Satisfactory Implementation Status and Key Decisions Following the formation of new government after elections in 2016 the Grant Agreement for the project was signed in September 2016. The Change Management Support Team (CMST) was fully staffed by November 2016 and the work plan has been approved by the MPALSG and the World Bank. After the slow start in implementation of activities, the CMST has made moderate progress since its inception. The CMST is providing valuable support to the MPALSG in the implementation of the PAR Strategy and together with a line ministers works on operationalization of recommendations coming from functional reviews done by the Bank. 6/22/2017 Page 1 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Serbia - Public Sector Rightsizing and Restructuring (P158875) The CMST and MPALSG should invest additional efforts to boost implementation in order to complete all activities envisaged by the project by June 2018. The Bank team and MPALSG will closely monitor project implementation and provide support where needed. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  --  Moderate Comments The team monitors the risks using the table below. RISK IMPACT & MITIGATION MEASURE PROBABILITY Limited implementation capacity Medium impact Boost capacity to operationalize recommendations from functional reviews within the within CMST, MPALSG and line CMST and MPALSG by recruiting part time procurement specialist who will help with ministries slows progress of Low likelihood procurement plan. Parallel to this ensure knowledge transfer by pairing CMST activitiesLimited implementation consultants with civil servants from the MPALSG. Continue working with the senior capacity within agencies slows management in line ministries to ensure appropriateness of proposed reform activities. progress of activities. Government’s commitment to Medium impact The CMST will propose reform options as well as change management strategies to implementing the reforms facilitate their implementation. These strategies will consider the interests and views Medium from key stakeholders. However, reputational risks for the WB may arise if the likelihood recommendations include reforms with high political costs. Lack of capacity in line ministries to Medium impact The CMST will engage with senior and middle management in line ministries to tailor actively engage and co-create appropriate mechanisms for implementation of reform recommendations and to secure solutions Medium ownership. Where needed the CMST will suggest recruitment of additional short term likelihood expertise in areas where line ministries lack capacities to implement reforms. Coordination between public High impact The CMST, together with the Bank team, will advise MPALSG and line ministries on how administration reforms and public to ensure that reform recommendations are appropriately reflected in the state budget. finance reforms Medium Likelihood Results Project Development Objective Indicators PHINDPDOTBL Change Management Support team established at the MPALSG (Yes/No, Custom) 6/22/2017 Page 2 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Serbia - Public Sector Rightsizing and Restructuring (P158875) Baseline Actual (Previous) Actual (Current) End Target Value N -- Y Y Date 15-May-2016 -- 14-Jun-2017 02-May-2018 Comments GA signed on September 20, Change Management Support Team in MPALSG in November 2016. PHINDPDOTBL Change Management and Communication Strategy developed and implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 01-Jun-2016 -- 14-Jun-2017 02-May-2018 Comments The CMST is finalizing Change Management Strategy and Communication Strategy based on the comments from MPALSG. PHINDPDOTBL Develop Roadmaps for implementation of recommendations form functional reviews (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 4.00 Date 01-Jun-2016 -- 14-Jun-2017 02-May-2018 Comments The CMST is finalizing a roadmap for implementation of recommendations from Horizontal Functional Review and Vertical Functional Review of the Ministry of Finance. The remaining vertical functional reviews (Ministry of Agriculture and service delivery) will be delivered by June 30, 2017. Overall Comments 6/22/2017 Page 3 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Serbia - Public Sector Rightsizing and Restructuring (P158875) Intermediate Results Indicators PHINDIRITBL Number of training for participation in functional reviews (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 9.00 Date 03-May-2016 -- 14-Jun-2017 02-May-2018 Comments No progress at this stage. The CMST is preparing a training plan which will be presented to the MPALSG and WB. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P158875 TF-A2475 Effective USD 0.58 0.58 0.00 0.08 0.50 14% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P158875 TF-A2475 Effective 20-Sep-2016 22-Sep-2016 22-Sep-2016 30-Jun-2018 30-Jun-2018 Cumulative Disbursements 6/22/2017 Page 4 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Serbia - Public Sector Rightsizing and Restructuring (P158875) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/22/2017 Page 5 of 5 Public Disclosure Copy