The World Bank Report No: ISR14926 Implementation Status & Results Armenia Public Sector Modernization Project II (P117384) Public Disclosure Copy Operation Name: Public Sector Modernization Project II (P117384) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 28-Jun-2014 Country: Armenia Approval FY: 2010 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): FFPMC Key Dates Board Approval Date 16-Mar-2010 Original Closing Date 31-Jul-2015 Planned Mid Term Review Date 30-Jun-2013 Last Archived ISR Date 27-Nov-2013 Effectiveness Date 26-Jul-2010 Revised Closing Date 31-Jul-2015 Actual Mid Term Review Date 30-May-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to enhance performance of public sector management for better service delivery by: (i) strengthening institutional capacity in policy formulation; (ii) maximizing the efficiency of human resources; and (iii) developing information systems for internal work flow and external communication. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Institutional Capacity in Policy Making and Service Delivery 2.31 Maximizing the Efficiency of Human Resources in the Public Sector 0.83 Development of Information Systems for Managing Internal Workflow and External Communication 4.61 Just-in-Time Technical Assistance 0.35 Project Management and Implementation 0.88 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Project progress in all areas except Civil Service reforms remains satisfactory and the combined disbursement and commitments remain over 75% of the total credit amount. Cancellation of periodic mandatory attestation in civil service had been delayed. However, an agreement was reached during the April 2014 mission with the Chief of Staff and the Page 1 of 9 The World Bank Report No: ISR14926 Civil Service Council (CSC) that attestation would be canceled and that CSC would instead rely on the existing performance appraisal system in place of attestation. The project has finalized functional analyses and business process reengineering (BPR) to additional ministries and government entities. E-government solutions supported under the project for declaration of income and assets have progressed well. The Ethics Commission is in the process of developing a verification methodology and has already developed Public Disclosure Copy some risk assessment criteria. The e-health project has already started pilot testing. Eventually the Ministry of Health expects to develop several applications which will include: (i) a unified medical card system; (ii) tele-medicine to remotely monitor and examine patients; and (iii) a corporate network for primary healthcare. The e-police system has facilitated the establishment of a one-stop shop for vehicle registration, issuance of driver’s licenses, and processing of fines for traffic rules violations and thereby significantly improving the service delivery by decreasing the registration time of vehicles from 2 days to 30 minutes. Locations Country First Administrative Division Location Planned Actual Armenia Vayots' Dzori Marz Vayots' Dzori Marz ✔ ✔ Armenia Yerevan Yerevan ✔ ✔ Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 9 The World Bank Report No: ISR14926 Indicator Name Core Unit of Measure Baseline Current End Target Number of pilot ministries adopting policy Text Value Decision making is generally Improved planning and New internal directives and formulation guidelines and procedures not transparent, and public performance monitoring and regulations for policy Public Disclosure Copy dissemination of government evaluation. formulation and monitoring policies and outcomes is a developed in four pilot low priority. ministries and implemented bythe Government. Mechanisms for policy coordination generally function effectively. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Finalized functional analysis and business process reengineering (BPR) to additional ministries and government agencies. The main improvement in policy formulation can be attributed to the rollout of formal work planning and policy formulation process which enables policy implementation in line with national strategies. According to Global Competitiveness Indicators (GCI), transparency of government policymaking has improved (5.0). Favoritism in decisions of government Text Value 2.9 3.1 At least 10% increase policymaking, 1-7 (best) Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Conflict of interest in public During restructuring, it was sector limits the efficiency of decided to use Global government decision-making. Competitiveness Indicators Public Disclosure Copy (GCI). Deploying the civil servant performance Text Value No robust performance The performance appraisal is HRM decisions on training appraisal system to improve human resource appraisal system is in place automated and connected to and career planning are management and staff motivation work planning based on the results of performance appraisals Date 16-Mar-2010 28-Apr-2014 31-Jul-2015 Comments Performance appraisal system did not undergo any Page 3 of 9 The World Bank Report No: ISR14926 major changes as yet and hence the text is the same as it was in May 2013. Increase in electronic communication with Text Value 20 37.5 At least 15% increase. Public Disclosure Copy citizens (%) Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Improvement since May 2013. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target New internal directives and regulations for Text Value Government lacks formats This process is now complete High level Policy and policy formulation and monitoring developed and processes for policy with the establishment of the Performance unit is and applied by the Government. formulation and instruments National Centre for Legislative established and operational. for compliance. Regulation PIU in the Prime The regulations outlining new Minister’s office. policy formulation requirements are - implemented. Date 31-Dec-2009 05-Jun-2014 31-Jul-2015 Comments PAD baseline is restored (this However, there are still PAD target is restored. is not a revised indicator). discussions on how to maintain the staff once the donor funding will come to an end. Currently the Austrian Government is financing the staff salary and hence there is a risk that the above- mentioned center and its key functions will notlikely to continue in the absence of a strategy in place to retain its core staff. Improved practice for delivery of selected pilot Text Value No clear requirements are Introduction of several Clear requirements for services demonstrates that: (i) clear publicly accessible. government to citizens (G2C) receiving the service are Public Disclosure Copy requirements for receiving the service (traffic services such as e-Policy and publicly accessible. police, passports, e-health, etc.) are publicly e-Health. accessible; and Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Baseline is set (this is not a e-Policy pilot was completed PAD target is restored. revised indicator). and a nation wide roll out is expected under the new project (PSMP 3). On e- Health a pilot testing has been already started. Page 4 of 9 The World Bank Report No: ISR14926 Improved practice for delivery of selected pilot Text Value Over 24 hours The registration time of At least 50% reduction in time services demonstrates that: (ii) average time vehicles is decreased to 30 required to register a vehicle. required to register a vehicle is reduced minutes including the provision of obtaining number Public Disclosure Copy plates and physical ID of the vehice. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments e-Policy will include other additional services such as traffic fine collections, etc. Improved planning and performance monitoring Text Value No systems in place to A system to monitor and Capacity building and evaluation processes in pilot ministries. monitor and evaluate evaluate performance is still interventions on application of performance, except for the not in place even though new mechanisms and tools EDMS system to check formal work planning and on planning, M&E in pilot individual performance. policy formulation process ministries completed. Ministries / agencies produce (through functional analysis Annual government activity annual budgets but more for and BPR) have been plan is developed in budget line item planning. completed in a large number transparent manner and the Weak connections between of ministries and government planned output/outcomes are budgets and planning of entities which establishesthe aligned with the budget. M&E outputs/outcome. link between the workplans, systemshave been tested and organizational deliverables applied. and M&E indicators. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Functional rules established for benefit transfer Text Value The benefits are not No change from the previous Harmonized public service between public service positions. transferred between in May 2013 enabling staff mobility without segments of public service losing the benefits. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Baseline is set (this is not a Target is set. new or revised indicator, but it was missing from PAD Public Disclosure Copy Arrangements for results monitoring). Consistent use of work plans and performance Text Value Acceptable approaches and Work plans and performance appraisals in the public service. Information systems exist but they are not appraisals are used in pilot from performance appraisal is used for used government wide. institutions in terms of civil performance planning. servants annual performance planning. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Page 5 of 9 The World Bank Report No: ISR14926 Comments PAD baseline is restored (this Further efforts aim at PAD target is restored is not a revised indicator). improving the robustness of evaluations and linking with training plans. Mission Public Disclosure Copy agreed to support the improvement of performance appraisal system and use it instead of the mandatory attestation. Capacity of ethics commission staff to provide Text Value There were attempts to Ethics Commission of High All civil servants have access advice and training to public servants and establish ethics commissions Level Officials was to manuals or educational enforcing ethics rules at the level of ministries, but established (in January 2012) materials. All mid-level and the commissions lack senior managers trained. credibility. A centralizedcommission has not been established. Date 31-Dec-2009 28-Apr-2014 31-Dec-2015 Comments PAD baseline is restored Ethic Commission is currently The target is modified. (this is not a revised developing better asset indicator). verification mechanisms. A new policy adopted for Civil Service training Text Value The CS training is Delay in the preparation of Capacity for CS training is allowing the pilot of on-line modules disconnected from actual training modules, and e- improved through improved needs and does not testing. planning and pilot online contribute to improved modules (if endorsed by the performance. Law) Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments The IT platform (software) for on-line training is available from JRP2. Require a Training Needs Assessment (TNA) which will be support by the project. Public Disclosure Copy Enhanced functionality and interoperability of Text Value EDMS is running in ten EDMS archives is introduced. EDMS is operational in all the electronic document management system. government bodies. government bodies and demonstrate interoperability of the electronic document management system including the archiving of e- documents, enhanced performance appraisal system, as well as project management tools. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Page 6 of 9 The World Bank Report No: ISR14926 Comments PAD baseline is restored PAD target is restored. (this is not a revised indicator). Public Disclosure Copy An effective system is established for income, Text Value The system does not exist. Electronic asset declaration Train the ethics body to use assets and conflict of interest disclosure by system has been the launched system. high level public officials implenmented and in functioning well. Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Share of required declarations (i) collected Percentage Value 0.00 98.00 50.00 electronically (%) Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments In year 2013 more than 98% of the total submissions were electronic. Share of required declarations (ii) published Percentage Value 0.00 99.00 100.00 online (%) Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments All declarations are published on line and are available in the Commission's website The civil servants and IT staff are trained to Text Value Separate systems in 80% of civil servants in use the developed systems. operation, such as EDMS, government agencies covered HRMIS, MGIS and other by the developed program, systems. trained to use the upgraded systems. 100% of IT staff trained to maintain the upgraded systems. 100% of IT staff trained to maintain the upgraded systems. Date 28-Feb-2011 28-Apr-2014 31-Jul-2015 Comments PAD baseline is restored (this No data is available as of last PAD target is restored. is not a revised indicator). supervision mission in April Public Disclosure Copy 2014. Public access to services available through Text Value Some e-kiosks exist, All servcies are currently Harmonization of existing ICT internet introduced under the JRP2, accessible via cell phones/ systems offering electronic which also give access to the internet services through e-Gov EDMS. website. Preliminary work is done to start use of government web portals. Page 7 of 9 The World Bank Report No: ISR14926 Date 31-Dec-2009 28-Apr-2014 31-Jul-2015 Comments Public Disclosure Copy Data on Financial Performance (as of 05-Mar-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P117384 IBRD-78540 Effective 16-Mar-2010 30-Mar-2010 26-Jul-2010 31-Jul-2015 31-Jul-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P117384 IBRD-78540 Effective USD 9.00 9.00 0.00 5.66 3.34 63.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The CSC noted that the remaining project duration would not be sufficient to complete the project objectives given the delays in several areas which include the development of training modules, e-testing for recruitment, and training needs assessment (TNA). As such it was proposed to extend the project closing date in order to complete the final project needs. The mission team agreed to discuss this issue with the management once the bank will receive a formal request with clear justification from the client. Restructuring History Level two Approved on 11-Aug-2012, Level 2 CD Decision on 23-Sep-2013 Page 8 of 9 The World Bank Report No: ISR14926 Related Projects There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 9 of 9