The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Capacity Building in Public Financial Management 2 (P155148) EUROPE AND CENTRAL ASIA | Kyrgyz Republic | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 3 | ARCHIVED on 18-Apr-2019 | ISR36012 | Implementing Agencies: Ministry of Finance, Project Implementation Unit, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 14-Dec-2017 Effectiveness Date: 11-Jul-2018 Planned Mid Term Review Date: 29-Nov-2019 Actual Mid-Term Review Date: -- Original Closing Date: 31-Aug-2020 Revised Closing Date: 31-Aug-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve budget predictability, control and transparency in the Kyrgyz Republic. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening budget planning and execution:(Cost $0.82 M) Building capacity of the Ministry of Finance in the public finance management:(Cost $1.07 M) Intergovernmental Fiscal Relations and Sub-National PFM:(Cost $0.63 M) Project Management:(Cost $0.39 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating High High Implementation Status and Key Decisions After project implementation picked up in October-November 2018, implementation delays reappeared in December 2018 and persist to-date. The Ministry of Finance new management team suggested significant changes in the project implementation plan and composition of activities. These changes were discussed at the Project Steering Committee Meeting on March 11, 2019. The World Bank project team works together with donors and the PIST to determine way forward. This work will be supported by a World Bank capacity assessment mission that will visit Ministry of Finance starting April 22, 2019. The World Bank has also encouraged the Ministry to expedite implementation of the two major project activities: PEFA assessment and procurement of a program budgeting capacity building consultancy package. 4/18/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) The above-mentioned delays and uncertainty about the Ministry's position re: project design and future activities resulted in further downgrading of main project ratings. Ratings proposed in the this ISR may be reassessed if any significant implementation progress is achieved till June 30, 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial High High Fiduciary High High High Environment and Social Moderate Low Low Stakeholders Substantial Substantial Substantial Other -- Low Low Overall Substantial High High Results PDO Indicators by Objectives / Outcomes to improve budget predictability, control and transparency in the Kyrgyz Republic IN00669507 ►Decreased variance in functional composition of expenditure out-turn (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This is an annually- measured indicator. Its baseline value was established by utilizing the budget data for Reduction by at least 7 2017. (seven) percentage Value 13.10 -- An updated annual points compared to value will be calculated baseline by October 1, 2019 using the latest budget data available at that time. Date 28-Sep-2018 28-Sep-2018 04-Mar-2019 31-Aug-2020 IN00669508 4/18/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) ►Diminished stock of expenditure payment arrears as a share of central budget expenditures (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This is an annual indicator. An updated value will be calculated Value 4.50 -- by October 1, 2019 Not more than 3% using most recent budget data available at that time. Date 31-Dec-2017 28-Sep-2018 28-Sep-2018 31-Aug-2020 IN00669509 ►Improved budget transparency Open Budget Index value (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvement over 2019/2020 index 55 out of 100 (OBI Value 54 out of 100 (2015) -- value, if updated value 2017) (for 2020/2021) is available Date 31-Dec-2015 28-Sep-2018 04-Mar-2019 31-Aug-2020 Intermediate Results Indicators by Components Strengthening budget planning and execution IN00669646 ►Improved revenue forecasting (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A ToR to hire a local The forecasting is done consultant on revenue based on revenue forecasting was Updated methodology forecasting methodology Value -- developed. The is used to forecast adopted in 2015. There consultant has to focus revenues is no information system on improvement of the on revenue forecasting methodology. Date 01-Jun-2016 03-Sep-2018 04-Mar-2019 31-Aug-2020 IN00669650 ►Increased public participation in budget process, an OBI participation score (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 57 out of 100 31 out of 100 (2017). (2019/2020). Questions used in 2017 assessment The questions used to have changed, Value 52 out of 100 (2015) -- compute this score therefore a direct have changed, comparison of 2015 therefore, the end-of- and 2017 scores may project value may be misleading. need to be revisited. Date 31-Dec-2015 28-Sep-2018 04-Mar-2019 31-Aug-2020 IN00669653 4/18/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) ►Training in PFM area in support of PFM Strategy delivered (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MoF Training center is MoF Training center is actively involved into actively involved into Training of at least 800 Value -- training of relevant training of relevant PFM staff officials in PFM area officials in PFM area Date 01-Jul-2015 03-Sep-2018 04-Mar-2019 31-Aug-2020 Building capacity of the Ministry of Finance in the public finance management IN00669647 ►Enhanced e-GP coverage (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A firm, which will assist MoF in developing e- e-GP only covers goods e-GP also covers Value -- GP on consultancy and works procurement consultancy selection selection, is being recruited Date 30-Nov-2017 03-Sep-2018 04-Mar-2019 31-Aug-2020 IN00669651 ►Increased capacity in internal audit,€€ number of certified auditors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The project assisted MoF in providing handouts and coffee- break to internal auditors, who participated in training for certification program. Value 0.00 -- 70.00 According to the MoF, out of 96 people participated in the training, 56 passed certification tests and became certified auditors. Date 30-Nov-2017 03-Sep-2018 04-Mar-2019 31-Aug-2020 Intergovernmental Fiscal Relations and Sub-National PFM IN00669648 ►System of intergovernmental fiscal relations improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The system of The RFP for the intergovernmental No vision to improve PEFAs were sent out. fiscal relations Value intergovernmental -- Deadline for proposal improved based on the transfer system. submission is May 13, project 2019.was announced. recommendations is fully operational 4/18/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Date 30-Nov-2017 28-Sep-2018 04-Mar-2019 31-Aug-2020 IN00669652 ►Equalization power of the intergovernmental fiscal transfers formula improved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The baseline was Reduced by 15% calculated, based on Value 1653,7 for 2017 -- compred tot he the budget data for baseline value 2017 provided by MoF Date 31-Dec-2017 28-Sep-2018 04-Mar-2019 31-Aug-2020 Project Management IN00692219 ►The PIST is fully staffed and preforms its duties timely and with adequate quality (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The PIST is fully The PIST is fully staffed and preforms staffed and preforms Value PIST does not exist -- its duties timely and its duties timely and with good quality with adequate quality Date 01-Jun-2018 -- 01-Apr-2019 31-Aug-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P155148 TF-A3998 Effective USD 3.01 3.01 0.00 0.31 2.71 10% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P155148 TF-A3998 Effective 15-Dec-2017 24-Jan-2018 11-Jul-2018 31-Aug-2020 31-Aug-2020 Cumulative Disbursements 4/18/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Capacity Building in Public Financial Management 2 (P155148) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/18/2019 Page 6 of 6